Document:

Document

Exhibit 10.1

CVS HEALTH CORPORATION
PERFORMANCE STOCK UNIT AGREEMENT– ANNUAL GRANT 
GRANT DATE:  xx/xx/xxxx

1.Pursuant and subject to the provisions of the 2017 Incentive Compensation Plan (the “Plan”),  of CVS Health Corporation (the “Company”), on the date set forth above (the “Grant Date”), the Company has awarded and hereby evidences the Performance Stock Unit (“PSU”) Award to the person named below (the “Participant”), subject to the terms and conditions set forth and incorporated in this Performance Stock Unit agreement (this “Agreement”).  The Plan is hereby made a part hereof, and the Participant agrees to be bound by all the provisions of the Plan.  Capitalized terms not otherwise defined herein shall have the meaning assigned to such term(s) in the Plan.  On the Grant Date specified above, the fair value, as determined utilizing the methodology approved by the Management Planning and Development Committee of the Board of Directors (the “Committee”) or its delegate, of each PSU equals $xx.xx.

						
	Participant:	Name
	Employee ID:	#####
	Target Number of PSUs (#):	#####

2.Each PSU represents a right to a future payment of one share (“Share”) of Common Stock ($0.01 par value) of the Company, subject to required tax withholding.  The actual number of Shares (if any) that the Participant receives shall be subject to the terms and conditions of the Plan and this Agreement, including, without limitation, the Company’s achievement of the performance goals set forth in Appendix A and Section 10 of this Agreement.

3.(a)    Subject to the terms and conditions of the Plan and this Agreement and subject to the Participant’s continued employment, the PSUs shall vest and become non-forfeitable on April 1, 2023 or such other date as may be provided in Section 6 (the “Vesting Date”), based on the level of achievement of the performance goals set forth in Appendix A (and as determined  by reference to Appendices B and C), and shall be determined by multiplying the number of PSUs that are subject to this Agreement by the applicable performance adjustment shown in Appendix A for the attained level of the performance goals.  The “Performance Period” shall be the three-year period commencing on January 1, 2020 and ending on December 31, 2022.    

(b)    The Participant shall be entitled to receive (and the Company shall deliver to the Participant) the Shares, subject to any applicable withholdings, as soon as administratively practicable following the Vesting Date, unless delivery of the Shares has been deferred in accordance with Section 4 below (the date of such delivery of the Shares being hereafter referred to as the “Settlement Date”).  

(c)    Notwithstanding anything herein to the contrary, if the Participant is subject to the reporting requirements under Section 16 of the Securities Exchange Act of 1934, as amended, or becomes subject to such reporting obligations at any time during the Performance Period, the Participant agrees and covenants that as a condition to the receipt of the award of PSUs and the payment of the PSUs hereunder, the Participant shall not sell or otherwise transfer any Shares issued and transferred to the Participant pursuant to this Agreement (including with respect to any Shares that are deferred under Section 4(a)) until the second anniversary   of 
PSU Award Agreement_2020

the Settlement Date (such period hereinafter referred to as the “Holding Period”), except that the Participant shall be permitted, prior to the end of the Holding Period, (a) to sell or transfer shares to pay applicable tax and social security withholdings, if any, with respect to such settlement (or, alternatively, if the Company withholds such Shares pursuant to Section 5 of this Agreement, the requirements in this Section 3(c) not to sell or otherwise transfer any Shares shall only apply to the number of such Shares delivered to the Participant (i.e., after such withholding of Shares)), (b) to sell or transfer shares upon a Change in Control, or (c) to transfer Shares to the Participant’s personal brokerage account.  The Participant’s attempt to assign   or transfer Shares subject to this Agreement, either voluntarily or involuntarily, contrary to the provisions hereof, shall be null and void and without effect.  The Company may, in its sole discretion, impose restrictions on the assignment or transfer of Shares consistent with the provisions hereof, including, without limitation, by or through the transfer agent for such Shares or by means of legending stock certificates or otherwise. 

4.(a)    In accordance with rules promulgated by the Committee, the Participant, to the  extent eligible under the CVS Health Deferred Stock Compensation Plan, may elect to defer delivery of Shares in settlement of PSUs covered by this Agreement.  Any such deferred delivery date elected by the Participant shall become the Settlement Date for purposes of this Agreement.

(b)    To the extent dividends are paid on such deferred Shares following the Vesting Date and prior to the Settlement Date, the Participant shall be entitled to receive a number of additional deferred Shares equal to:  (x) the amount of dividend per Share as declared by the Company’s Board of Directors on the Company’s common stock multiplied by (y) the number of deferred Shares held by the Participant on the record date of such dividend, divided by (z) the Fair Market Value of a Share on such dividend payment date.  

5.On the Settlement Date, the number of Shares to be delivered by the Company to the Participant shall be reduced by the smallest number of Shares having a Fair Market Value at least equal to the dollar amount of federal, state and local tax withholding required to be withheld by the Company with respect to such PSUs on such date.  

6.(a)     Except as provided in Sections 6(b)–(e) below, if, for any reason, the Participant’s employment with the Company and any subsidiary of the Company terminates, all PSUs not then vested in accordance with Section 3 above shall be immediately forfeited.

(b)In the event the Participant’s employment with the Company and any subsidiary of the Company terminates by reason of death, PSUs not then vested in accordance with Section 3 shall become immediately vested based upon target performance as of the  date of the Participant’s death, and shall become settled upon thirty (30) days of the Participant’s death.

(c)In the event the Participant’s employment  with the Company and any subsidiary of the Company terminates by reason of a deemed “Qualified Retirement” or involuntary termination of employment and the Participant is entitled to severance, PSUs  shall vest on a pro-rata basis as of the Participant’s termination of employment date, which is the last day that the Participant is employed by the Company and any subsidiary of the Company, as follows:  the total number of PSUs that the Participant shall be entitled to shall be equal to the number of PSUs based upon actual performance as of the end of the Performance Period multiplied by the following fraction:  (A) the numerator shall be the number of months elapsed as of the termination of employment date since the beginning of the Performance Period and (B) the denominator shall be the total number of months in the Performance Period.  For purposes of this calculation, the number of months in the numerator in sub-section (A) above shall include any partial month in which the Participant has worked (for example, if the time elapsed between the beginning of the Performance Period and the retirement date is eight (8)   months  and  five  (5)  days,  the  numerator  in  sub-section  (A)  above  shall  be  nine (9)).
PSU Award Agreement_2020

“Qualified Retirement” shall mean termination of employment on or after attainment of age fifty-five (55) with at least ten (10) years of continuous service, or attainment of age sixty (60) with at least five (5) years of continuous service or such other terms as may be determined by the Company and set forth in the applicable award agreement; provided that:  if the Participant elects to terminate his or her employment voluntarily, the Participant has provided the Company with at least twelve (12) months advance notice, in accordance with the provisions of Section 9 below, of his or her retirement date or such other term of advance notice as is determined by the Chief Human Resources Officer of the Company.  Any Shares represented by the pro-rated PSUs that vest under this section shall settle on the Settlement Date that would have applied under the original schedule set forth in Section 3 of this Agreement. 

(d)        In the event the Participant’s employment  with the Company  and any subsidiary of the Company terminates by reason of total and permanent disability (as defined in the Company’s Long-Term Disability Plan, or, if  not defined in such Plan, as defined by the Social Security Administration), the PSUs shall vest as of the employment termination date on a pro- rata basis as follows:  the number of PSUs based upon actual performance as of the end of  the Performance Period multiplied by the following fraction:  (A) the numerator shall be the number of months elapsed as of the Participant’s termination date since the beginning of the Performance Period and (B) the denominator shall be the total number of months in the Performance Period.  For purposes of this calculation, the number of months in the numerator in sub-section (A) above shall include any partial month in which the Participant has     worked.  For example, if the time elapsed between the beginning of the Performance Period and the termination date is eight (8) months and five (5) days, the numerator in sub-section  (A) above shall be nine (9).   Any Shares represented by PSUs that vest under this section shall settle on the Settlement Date that would have applied under the original schedule set forth in Section 3 of this Agreement.

(e)    Notwithstanding the above, if the Participant experiences a Termination Without  Cause or a Constructive Termination Without Cause within two (2) years following a Change   in the provisions of the Plan with respect to Change in Control shall apply, and the Participant’s PSUs shall become fully vested with the performance goals and other conditions with respect to the PSUs being deemed to be met at target performance.

(f)    For purposes of this Section 6, transfer of the Participant’s employment from the Company to a subsidiary of the Company, transfer among or between subsidiaries of the Company, or transfer from a subsidiary of the Company to the Company shall not be treated as a termination of employment.
(g)    The Participant shall be responsible for any applicable withholding or other taxes that may become due as a result of PSUs that vest as of the Participant’s termination of employment date or thereafter.

7.A PSU does not represent an equity interest in the Company and carries no voting rights.  The Participant shall have no rights of a shareholder with respect to the PSUs prior to the Vesting Date.

8.Neither the execution and delivery hereof nor the granting of the Award evidenced hereby shall constitute or be evidence of any agreement or understanding, express or implied, on the part of the Company or its subsidiaries to employ the Participant for any specific period.

9.Any notice required to be given hereunder to the Company shall be in writing.  If by regular mail, any required notice shall be addressed to: CVS Health Corporation, Attention: Senior Director, Executive Compensation, One CVS Drive, Woonsocket, RI 02895.  If by electronic  mail, any notice required shall be sent to: equityadministration@cvshealth.com.   

PSU Award Agreement_2020

Any notice required to be given hereunder to the Participant shall be addressed to such Participant at the address shown on the records of the Company, subject to the right of either party hereafter to designate, in writing, to the other, some other address.

10.All decisions and interpretations made by the Board of Directors or the Committee with regard to any question arising hereunder or under the Plan shall be binding and conclusive on all persons.  In the event of any inconsistency between the terms hereof and the provisions of the Plan, the Plan shall govern.  Furthermore, the determination of the achievement of any performance goals under this Agreement, and the amounts used in making such determination, shall be in the Board of Directors’ or the Committee’s sole discretion and such determination shall be final, binding and conclusive for all purposes and upon all parties.  The Committee (or, if applicable, the Chief Executive Officer of the Company) may, in its discretion, reduce or increase the amount of a settlement otherwise to be made in connection with the PSUs to the extent permissible under the Plan.

11.The award of PSUs pursuant to this Agreement is expressly subject to and contingent upon the requirement that the Participant shall have fully executed and delivered to the Company the Restrictive Covenant Agreement that may be required and provided by the Company. The applicable agreement containing the restrictive covenants that the Company may require in connection with this award is hereafter referred to as the “Restrictive Covenant Agreement”.  

If the Company intends to require the Participant to execute and deliver a new Restrictive Covenant Agreement in connection with the grant hereunder, the Company shall provide such new Restrictive Covenant Agreement to the Participant and the Participant agrees to execute and deliver such new Restrictive Covenant Agreement by the deadline set forth by the Company.  If the Participant is currently subject to a Restrictive Covenant Agreement and the Company does not require the Participant to execute and deliver a new Restrictive Covenant Agreement, then by accepting the award of PSUs, pursuant to this Agreement, the Participant affirms his or her Restrictive Covenant Agreement and intent to be bound by the restrictions in the Restrictive Covenant Agreement and to comply with all of its provisions.  

The Participant agrees that failure to execute and return the new Restrictive Covenant Agreement, if required, by the deadline set forth by the Company shall result in the immediate and irrevocable forfeiture of the PSU Award hereunder and any right to receive dividend equivalents or Shares with respect thereto.  Further, if the Participant violates any provision of the applicable Restrictive Covenant Agreement, any unvested PSUs will be immediately and irrevocably forfeited, and no payment of any kind, including Dividend Equivalents or Shares, shall be payable with respect thereto.  This Section shall not constitute the Company’s exclusive remedy for the Participant’s violation of the Restrictive Covenant Agreement. The Company reserves all rights to seek all available legal or equitable remedies in the event of  the Participant’s violation or threatened violation of the Restrictive Covenant Agreement, including injunctive relief. 

12.By accepting this Award, the Participant acknowledges that a copy of the Plan has been made available by the Company for the Participant’s reference and agrees to be bound by the terms and conditions set forth in this Agreement and the Plan as in effect from time to time.

13.By accepting this Award, the Participant further acknowledges that the Federal securities laws and/or the Company’s policies regarding trading in its securities may limit or restrict the Participant’s right to trade Shares, including, without limitation, sales of Shares acquired in connection with PSUs.  The Participant agrees to comply with such Federal securities law requirements and the Company’s policies, as such laws and policies may be amended from time to time.

PSU Award Agreement_2020

14.The Company intends that this Agreement not violate any applicable provision of, or result in any additional tax or penalty under, Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and that to the extent any provisions of this Agreement do not comply with Code Section 409A the Company shall make such changes in order to comply with Code Section 409A to the extent it considers reasonable.  In all events, the provisions of the Company’s 409A Universal Definitions Document are hereby incorporated by reference and to the extent required to avoid a violation of the applicable rules under Section 409A by reason of Section 409A(a)(2)(B)(i) of the Code, payment of any amounts subject to Section 409A of the Code shall be delayed until the first business day of the seventh month immediately following the employment termination date.  For purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment, references to the “termination of employment” (and corollary terms) shall be construed to refer to “separation from service” (within the meaning of Treas. Reg. Section 1.409A-1(h)). Notwithstanding the foregoing, the Company makes no representations as to the tax treatment or consequences of any payment made hereunder, and the Participant, by accepting this Award, acknowledges that the Participant shall be solely responsible for same.

15.The Award subject to this PSU Agreement under the Plan shall be subject to the terms of the Company’s Recoupment Policy as it exists from time to time, which may require the Participant to immediately repay to the Company the value of any pre-tax economic benefit that he or she may derive from the Award. By accepting this Award, the Participant acknowledges that the Company’s Recoupment Policy has been made available for the Participant’s reference.

16.(a)     The Participant agrees that the Award covered by this Agreement is subject to the Company’s  Recoupment  Policy and the other terms and conditions set forth in this Agreement. In addition to and without limiting the other terms and conditions of this Agreement, if prior to final settlement and release from the Holding Period the Committee determines that the Participant has engaged in Detrimental Conduct (as defined below), the Committee, in its sole discretion, will be entitled to recover from the Participant some or all of the Shares (and any related dividends or dividend equivalents) paid to the Participant pursuant to this Agreement.  All such determinations by the Committee will be final and binding.

(b)Detrimental Conduct.  The Participant agrees that during any period in which PSUs (and any related dividend equivalents) remain outstanding and payable pursuant to this Agreement, including the Holding Period, the Participant shall not engage in Detrimental Conduct.  For purposes of this Agreement, “Detrimental Conduct” means any one of the following: (i) any conduct that would constitute Cause; (ii) the commission of a criminal act by the Participant, whether or not performed in the workplace, that subjects, or if generally known, would subject the Company or its subsidiaries to public ridicule or embarrassment; (iii) intentional misconduct or conduct not taken in good faith and causing significant  reputational harm to the Company or its subsidiaries; (iv) intentional violation, or negligent disregard, of the Company’s or its subsidiaries’ policies, rules and procedures, specifically including, but not limited to any of the Participant’s obligations under the Company’s Code   of Conduct and workplace policies; or (v) any violation of the Participant’s Restrictive Covenant Agreement.  

(c)Remedies. Payment of PSUs (and any related dividends or dividend equivalents) on the Settlement Date is specifically conditioned on the requirement that at all times prior to such Settlement Date, the Participant does not engage in Detrimental Conduct.  In addition, releasing Shares delivered after the Holding Period is also specifically conditioned on the requirement that at all times prior to such release, the Participant does not engage in Detrimental Conduct.  If the Committee determines in its reasonable business judgment that the  Participant  has  failed  to  satisfy  such  requirements, then all or a portion of the PSUs (and
PSU Award Agreement_2020

any related dividends or dividend equivalents), or all or a portion of any Shares delivered in settlement thereof that are subject to the Holding Period, as of the date of such determination, shall be canceled and forfeited as of such date of determination.  All such determinations by the Committee will be final and binding.

17.This Agreement shall be governed by the laws of Delaware, without giving effect to its choice of law provisions.

18.This Agreement shall be fully effective only upon the Participant’s formal acceptance of the terms and conditions set forth above as required by the Company.   

															
		By:			
				Name	
				Title	
				CVS Health Corporation	

																					
		Accepted by:			
						Name	
						Title	
						CVS Health Corporation	
							
							
						Date	

PSU Award Agreement_2020ex103knl20200930

                                                                  Exhibit 10.3                                                                   EXECUTION VERSION       SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT          THIS  SECOND  AMENDMENT  TO  THIRD  AMENDED  AND  RESTATED  CREDIT  AGREEMENT  (this  “Amendment”),  dated  as  of  August  21,  2020  (the “Second  Amendment  Effective  Date”), is among Knoll, Inc., a Delaware corporation (the “Parent Borrower”), the Foreign Borrowers party  hereto, the Guarantors party hereto, the Lenders party hereto and Bank of America, N.A., as Administrative  Agent, Swing Line Lender and L/C Issuer.                                         RECITALS          WHEREAS, pursuant to the terms of that certain Third Amended and Restated Credit Agreement,  dated as of January 23, 2018 (as amended, restated, amended and restated, extended, increased, supplemented  or otherwise modified from time to time prior to the Second Amendment Effective Date, the “Existing Credit  Agreement”), among the Parent Borrower, the Foreign Borrowers party thereto, the Guarantors party thereto,  the Lenders from time to time party thereto and Bank of America, N.A., as Administrative Agent, Swing Line  Lender and L/C Issuer, the Lenders and the L/C Issuers provide credit facilities to the Borrower;          WHEREAS,  the  Loan  Parties  have  requested  that  the  Lenders  amend  the  Existing  Credit  Agreement as set forth below;         WHEREAS, the Lenders agree to provide such requested amendments subject to the terms and  conditions herein;          NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein,  and  for  other  good  and  valuable  consideration,  the  receipt  and sufficiency  of  which  are  hereby  acknowledged, the parties hereto agree as follows:          1.    Introductory Paragraph and Recitals.  The above introductory paragraph and recitals of this Amendment are incorporated herein by reference as if fully set forth in the body of this Amendment.          2.    Definitions.   Capitalized  terms  used  herein  (including  in  the  recitals  hereof)  and not otherwise  defined  herein  shall  have  the  meanings  provided  in  the  Existing  Credit  Agreement  or  the  Amended Credit Agreement (as defined below), as applicable.          3.    Amendments to Existing Credit Agreement.  The Existing Credit Agreement is amended and restated in its entirety to read in the form attached hereto as Annex A (the credit agreement attached  hereto as Annex A being referred to herein as the “Amended Credit Agreement”).         4.     Conditions  Precedent.   This  Amendment  shall  be  effective  upon  satisfaction  of  the following conditions precedent:                (a)    Receipt  by  the  Administrative  Agent  of  counterparts  of  this  Amendment  duly        executed by the Loan Parties, the Required Lenders, and the Administrative Agent.                (b)    Receipt by the Administrative Agent, for the account of each Lender consenting to        and  approving  this  Amendment,  of  an  amendment  fee,  in  an  amount  equal  to  0.05%  of  the         Revolving Commitment and the outstanding principal amount of the Term Loans (other than the         Term Loans Principle Prepayment Amount) of such Lender, in each case, as of the date hereof         immediately after giving effect to this Amendment, which amendment fee shall be for such Lender         consenting to and approving this Amendment, shall be fully earned when paid and shall be non-        refundable for any reason whatsoever. 

 

                (c)    Receipt by the Administrative Agent of all other fees and expenses owing to the        Administrative Agent (including all reasonable fees, expenses and disbursements of any law firm        or other counsel of the Administrative Agent), the Lenders and the Arrangers required to be paid        on or before the Second Amendment Effective Date.         5.     Post-Closing Covenant.  Within ten (10) days of the Second Amendment Effective Date,  the Administrative Agent shall have received (i) a partial prepayment of the Term Loans in a principal  amount equal to $50,000,000 (the “Term Loans Principle Prepayment Amount”) (which prepayment (A)  shall be applied on a ratable basis to the Term Loans (to the remaining principal amortization payments  thereof on a pro rata basis) and (B) with respect to the ratable portion of such prepayment applied to the  Multicurrency Term Loan, shall be made in Euro), and (ii) a prepayment of interest accrued through the  date of such prepayment on the Term Loans Principle Prepayment Amount (together with the Term Loans  Principle Prepayment Amount, collectively, the “Term Loans Prepayment Amount”), in each case, which  may be funded with proceeds from a Borrowing of Revolving Loans.  Notwithstanding anything in the  Loan Documents to the contrary, if the Administrative Agent does not receive payment of the Term Loans  Prepayment  Amount  in  accordance  with  this  Section  5,  an  Event  of  Default  shall  be  deemed  to  have  occurred and be continuing.          6.    Miscellaneous.                 (a)    This Amendment shall be deemed to be, and is, a Loan Document.                (b)    Except as expressly modified and amended in this Amendment, all of the terms,        provisions and conditions of the Loan Documents shall remain unchanged and in full force and        effect.                  (c)    Each Loan Party (i) agrees to all of the terms and conditions of this Amendment,        (ii) agrees that this Amendment and all documents executed in connection herewith do not operate to        reduce or discharge its obligations under the Amended Credit Agreement or the other Loan Documents         or any certificates, documents, agreements and instruments executed in connection therewith, (iii)         affirms  all  of  its  obligations  under  the  Loan  Documents,  (iv)  agrees  and  acknowledges  that  the         Amended Credit Agreement is not a novation of the Existing Credit Agreement, (v) agrees that this         Amendment shall in no manner impair or otherwise adversely affect any of the Liens granted in or         pursuant to the Loan Documents, (vi) affirms that each of the Liens granted in or pursuant to the         Loan Documents are valid and subsisting and (vii) confirms that each security right created under         each  Collateral  Document  was,  when  it  was  entered  into,  intended  to  extend,  and  shall  in  fact         extend, to all obligations under all Loan Documents as amended under this Amendment.                (d)    Effective as of the Second Amendment Effective Date, all references to the Credit         Agreement in each of the Loan Documents shall mean the Amended Credit Agreement.                (e)    Each  of  the  Loan  Parties  hereby  represents  and  warrants  to  the Administrative         Agent as follows:                       (i)    such Loan Party has taken all necessary action to authorize the execution,               delivery and performance of this Amendment;                       (ii)   this Amendment has been duly executed and delivered by such Loan Party               and  constitutes  such  Loan  Party’s  legal,  valid  and  binding  obligations,  enforceable  in               accordance with its terms, except as such enforceability may be subject to (A) bankruptcy,               insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws                                              2  CHAR1\1732711v5 

 

                affecting  creditors’  rights  generally  and  (B)  general  principles  of  equity  (regardless  of               whether such enforceability is considered in a proceeding at law or in equity);                       (iii)  no consent, approval, authorization or order of, or filing, registration or               qualification  with,  any  court  or  governmental  authority  or  third  party  is  required  in               connection  with  the  execution,  delivery  or  performance  by  such Loan  Party  of  this               Amendment;                       (iv)  before and after giving effect to this Amendment, the representations and               warranties  of  the  Borrowers  and  each  other  Loan  Party  contained  in  Article  VI  of  the               Amended Credit Agreement or any other Loan Document, or which are contained in any               document furnished at any time under or in connection therewith, are true and correct in               all material respects on and as of the Second Amendment Effective Date, except to the               extent that such representations and warranties specifically refer to an earlier date, in which               case they were true and correct in all material respects as of such earlier date (provided,               that, any representation and warranty that is qualified by materiality, a Material Adverse               Effect or similar language is true and correct in all respects), and except that for purposes               of this Amendment, the representations and warranties contained in Sections 6.05(a) and               6.05(b) of the Amended Credit Agreement are deemed to refer to the most recent statements               furnished  pursuant  to  Sections  7.04(a)  and  7.04(b)  of  the  Amended  Credit  Agreement,               respectively; and                       (v)   before and after giving effect to this Amendment, no Default or Event of               Default exists, or will result from the transactions contemplated hereby.                (f)    This Amendment may be in the form of an Electronic Record and may be executed        using Electronic Signatures (including facsimile and .pdf) and shall be considered an original, and        shall have the same legal effect, validity and enforceability as a paper record.  This Amendment        may be executed in as many counterparts as necessary or convenient, including both paper and        electronic  counterparts,  but  all  such  counterparts  are  one  and the same Amendment.   For the        avoidance of doubt, the authorization under this paragraph may include, without limitation, use or        acceptance  by  the  Administrative  Agent  and  the  Lenders  of  a  manually  signed  paper        Communication which has been converted into electronic form (such as scanned into PDF format),        or  an  electronically  signed  Communication  converted  into  another  format,  for  transmission,        delivery and/or retention.                (g)    THIS  AMENDMENT  SHALL  BE  GOVERNED  BY,  AND  CONSTRUED  IN        ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.                    [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]                                                 3  CHAR1\1732711v5 

 

        The parties hereto have caused counterparts of this Amendment to be duly executed and delivered  as of the date first written above.    PARENT BORROWER:           KNOLL, INC.,                             a Delaware corporation                                                          By:    /s/ Charles W. Rayfield                              Name:  Charles W. Rayfield                            Title:    Senior Vice President & Chief Financial Officer    FOREIGN BORROWERS:        KNOLL DENMARK APS,                            a private limited company incorporated in Denmark                                                        By:    /s/ Charles W. Rayfield                              Name:  Charles W. Rayfield                            Title:  Director                                                        KNOLL EUROPE B.V.,                            a Dutch company with limited liability, with corporate seat in                            Amsterdam, the Netherlands                                                        By:    /s/ Charles W. Rayfield                              Name:  Charles W. Rayfield                            Title:  Director                                                        MUUTO A/S,                            a public limited company incorporated in Denmark                                                        By:    /s/ Charles W. Rayfield                              Name:  Charles W. Rayfield                            Title:  Director    GUARANTORS:                SPINNEYBECK ENTERPRISES, INC.,                            a New York corporation                                                         By:    /s/ Charles W. Rayfield                              Name:  Charles W. Rayfield                            Title:  Vice President, Treasurer and Assistant Secretary                                                        EDELMAN LEATHER, LLC,                            a Delaware limited liability company                                                        By:    /s/ Charles W. Rayfield                              Name:  Charles W. Rayfield                            Title:  Vice President                                                                                       KNOLL, INC.                               SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT   

 

                HOLLY HUNT ENTERPRISES, INC.,   an Illinois corporation                      By:    /s/ Charles W. Rayfield    Name:  Charles W. Rayfield  Title:  Treasurer                  HHM2, LLC,   a Delaware limited liability company    By:    /s/ Charles W. Rayfield    Name:  Charles W. Rayfield  Title:  Vice President                  KNOLL OVERSEAS, INC.,  a Delaware corporation    By:    /s/ Charles W. Rayfield    Name:  Charles W. Rayfield  Title:    President, Treasurer and Assistant Secretary                                                                                           KNOLL, INC.     SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT                 

 

  ADMINISTRATIVE  AGENT:                     BANK OF AMERICA, N.A.,                             as Administrative Agent                               By:    /s/ Ronaldo Naval                             Name:  Ronaldo Naval                            Title:    Vice President                                                                                         KNOLL, INC.                               SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT   

 

  LENDERS:                   BANK OF AMERICA, N.A.,                             as a Lender, the Swing Line Lender and a L/C Issuer                                By:    /s/ Kevin Dobosz                             Name:  Kevin Dobosz                            Title:    Senior Vice President                                                                                                                   KNOLL, INC.                               SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT   

 

                TRUIST BANK (formerly known as Branch Banking and Trust Company  and as successor by merger to SunTrust Bank),  as a Lender    By:    /s/ Matthew J. Davis   Name:  Matthew J. Davis  Title:  Senior Vice President                                                                                                         KNOLL, INC.     SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT                 

 

                CITIZENS  BANK,  N.A.  (as  successor  by  merger  to  Citizens  Bank  of  Pennsylvania),  as a Lender    By:    /s/ Pamela Hansen   Name:  Pamela Hansen  Title:  Senior Vice President                                                                                                         KNOLL, INC.     SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT                 

 

                TD BANK, N.A.,  as a Lender    By:    /s/ Des Brennan    Name:  Des Brennan  Title:  Senior Vice President                                                                                                         KNOLL, INC.     SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT                 

 

                THE BANK OF NOVA SCOTIA,  as a Lender    By:    /s/ Catherine Jones   Name:  Catherine Jones  Title:  Managing Director                                                                                                         KNOLL, INC.     SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT                 

 

                THE HUNTINGTON NATIONAL BANK,  as a Lender    By:    /s/ Marcel Fournier   Name:  Marcel Fournier  Title:  Vice President                                                                                                         KNOLL, INC.     SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT                 

 

                THE NORTHERN TRUST COMPANY,  as a Lender    By:    /s/ Andrew D. Holtz   Name:  Andrew D. Holtz  Title:  Senior Vice President                                                                                                         KNOLL, INC.     SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT                 

 

                U.S. BANK NATIONAL ASSOCIATION,  as a Lender    By:    /s/ Patrick H McGraw    Name:  Patrick H McGraw  Title:  Senior Vice President                                                                                                         KNOLL, INC.     SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT                 

 

                       Annex A   Amended Credit Agreement         [see attached]                                                                           

 

                                                          Published Deal CUSIP: 49916MAJ0                                                     Published Revolver CUSIP: 49916MAK7                                      Published Multicurrency Term Loan CUSIP: 49916MAL5                                              Published U.S. Term Loan CUSIP: 49916MAM3                                                                                                            THIRD AMENDED AND RESTATED CREDIT AGREEMENT                                                                              Dated as of January 23, 2018                                                                                       among                                                                                    KNOLL, INC.,                                    as the Parent Borrower,                                                            CERTAIN FOREIGN SUBSIDIARIES OF THE PARENT BORROWER,                                    as Foreign Borrowers,                                                                CERTAIN SUBSIDIARIES OF THE PARENT BORROWER,                                      as the Guarantors,                                                                              BANK OF AMERICA, N.A.,                    as Administrative Agent, Swing Line Lender and L/C Issuer,                                                                                CITIZENS BANK, N.A.,                    TRUIST BANK (as successor by merger to SunTrust Bank),                                            and                                      TD BANK, N.A.,                                  as Co-Syndication Agents,                                                           TRUIST BANK (formerly known as Branch Banking and Trust Company),                        HSBC BANK USA, NATIONAL ASSOCIATION,                                            and                           U.S. BANK NATIONAL ASSOCIATION,                                 as Co-Documentation Agents                                                                                         and                                                                        THE OTHER LENDERS PARTY HERETO                                                                               BOFA SECURITIES, INC.,                          as a Joint Lead Arranger and Sole Bookrunner,                                            and                                   CITIZENS BANK, N.A.,            TRUIST SECURITIES (formerly known as SunTrust Robison Humphrey, Inc.),                                            and                                TD SECURITIES (USA) LLC,                                   as Joint Lead Arrangers          CHAR1\1732710v2 

 

                                     TABLE OF CONTENTS   ARTICLE I  DEFINITIONS AND ACCOUNTING TERMS ..................................................................... 1        1.01   Defined Terms. ................................................................................................................... 1        1.02   Other Interpretive Provisions. ........................................................................................... 39        1.03   Accounting Terms. ............................................................................................................ 40        1.04   Rounding. .......................................................................................................................... 41        1.05   Exchange Rates; Currency Equivalents. ........................................................................... 41        1.06   Times of Day. ................................................................................................................... 41        1.07   Letter of Credit Amounts. ................................................................................................. 42        1.08   Additional Alternative Currencies. ................................................................................... 42        1.09   Rates. ................................................................................................................................ 43  ARTICLE II  THE COMMITMENTS AND CREDIT EXTENSIONS ..................................................... 43         2.01  Loans. ................................................................................................................................ 43        2.02   Borrowings, Conversions and Continuations of Loans. ................................................... 48        2.03   Letters of Credit. ............................................................................................................... 50        2.04   Swing Line Loans. ............................................................................................................ 59        2.05   Prepayments. ..................................................................................................................... 62        2.06   Termination or Reduction of Aggregate Revolving Commitments. ................................. 64        2.07   Repayment of Loans. ........................................................................................................ 65        2.08   Interest. ............................................................................................................................. 66        2.09   Fees. .................................................................................................................................. 66        2.10   Computation of Interest and Fees; Retroactive Adjustments of Applicable Rate............. 67        2.11   Evidence of Debt. ............................................................................................................. 67        2.12   Payments Generally; Administrative Agent’s Clawback. ................................................. 68        2.13   Sharing of Payments by Lenders. ..................................................................................... 69        2.14   Cash Collateral. ................................................................................................................. 70        2.15   Defaulting Lenders. .......................................................................................................... 71        2.16   Foreign Borrowers. ........................................................................................................... 73        2.17   Designated Lenders. .......................................................................................................... 74        2.18   Nature of Obligations. ....................................................................................................... 75  ARTICLE III  TAXES, YIELD PROTECTION AND ILLEGALITY ...................................................... 75         3.01  Taxes. ................................................................................................................................ 75        3.02   Illegality. ........................................................................................................................... 79        3.03   Inability to Determine Rates. ............................................................................................ 80        3.04   Increased Costs. ................................................................................................................ 82        3.05   Compensation for Losses. ................................................................................................. 84        3.06   Mitigation Obligations; Replacement of Lenders. ............................................................ 84        3.07   Survival. ............................................................................................................................ 85  ARTICLE IV  GUARANTY ...................................................................................................................... 85        4.01   The Guaranty. ................................................................................................................... 85        4.02   Obligations Unconditional. ............................................................................................... 86        4.03   Reinstatement. ................................................................................................................... 87        4.04   Certain Additional Waivers. ............................................................................................. 88        4.05   Remedies. .......................................................................................................................... 88        4.06   Rights of Contribution. ..................................................................................................... 88        4.07   Guarantee of Payment; Continuing Guarantee. ................................................................ 88        4.08   Keepwell. .......................................................................................................................... 88        4.09   Appointment of Parent Borrower. ..................................................................................... 89  ARTICLE V  CONDITIONS PRECEDENT TO CREDIT EXTENSIONS .............................................. 89         5.01  Conditions of Initial Credit Extension. ............................................................................. 89                                             i  CHAR1\1732710v2 

 

          5.02   Conditions to all Credit Extensions. ................................................................................. 92        ARTICLE VI  REPRESENTATIONS AND WARRANTIES ...................................................... 93        6.01   Organization; Power. ........................................................................................................ 93        6.02   Authorization. ................................................................................................................... 93        6.03   Enforceability. ................................................................................................................... 93        6.04   Governmental Approvals. ................................................................................................. 93        6.05   Financial Statements. ........................................................................................................ 94        6.06   No Material Adverse Change............................................................................................ 94        6.07   Title to Properties; Possession Under Leases. .................................................................. 94        6.08   Subsidiaries. ...................................................................................................................... 96        6.09   Litigation; Compliance with Laws. ................................................................................... 96        6.10   Agreements. ...................................................................................................................... 96        6.11   Federal Reserve Regulations. ............................................................................................ 96        6.12   Investment Company Act. ................................................................................................ 97        6.13   Use of Proceeds. ............................................................................................................... 97        6.14   Tax Returns. ...................................................................................................................... 97        6.15   No Material Misstatements. .............................................................................................. 97        6.16   Employee Benefit Plans. ................................................................................................... 97        6.17   Environmental Matters. .................................................................................................... 98        6.18   Insurance. .......................................................................................................................... 98        6.19   Collateral Documents. ...................................................................................................... 98        6.20   Beneficial Ownership. ...................................................................................................... 99        6.21   Labor Matters. ................................................................................................................... 99        6.22   Solvency............................................................................................................................ 99        6.23   Government Sanctions. ................................................................................................... 100        6.24   Anti-Corruption Laws. .................................................................................................... 100        6.25   No EEA Financial Institution. ......................................................................................... 100        6.26   Additional ERISA Representations. ............................................................................... 100        6.27   Representations as to Foreign Obligors. ......................................................................... 100        6.28   Status as Senior Indebtedness. ........................................................................................ 101        6.29   Dutch Works Council. .................................................................................................... 101  ARTICLE VII  AFFIRMATIVE COVENANTS ..................................................................................... 101        7.01   Existence; Business and Properties; Compliance with Laws. ......................................... 101        7.02   Insurance. ........................................................................................................................ 102        7.03   Taxes. .............................................................................................................................. 103        7.04   Financial Statements, Reports, Etc. ................................................................................ 103        7.05   Litigation and Other Notices. .......................................................................................... 105        7.06   [Reserved]. ...................................................................................................................... 105        7.07   Maintaining Records; Access to Property and Inspections. ............................................ 105        7.08   Use of Proceeds. ............................................................................................................. 106        7.09   Further Assurances. ........................................................................................................ 106        7.10   Environmental Laws. ...................................................................................................... 107        7.11   Anti-Corruption Laws. .................................................................................................... 108        7.12   Approvals and Authorizations. ....................................................................................... 108        7.13   Post-Closing Obligations. ............................................................................................... 108  ARTICLE VIII  NEGATIVE COVENANTS .......................................................................................... 109         8.01  Indebtedness. ................................................................................................................... 109        8.02   Liens. .............................................................................................................................. 112        8.03   Sale and Lease-Back Transactions. ................................................................................. 114        8.04   Investments, Loans and Advances. ................................................................................. 114        8.05   Mergers, Consolidations and Sales of Assets. ................................................................ 115                                             ii  CHAR1\1732710v2 

 

          8.06   Restricted Payments; Restrictive Agreements. ............................................................... 116        8.07   Transactions with Affiliates. ........................................................................................... 118        8.08   Business of Parent Borrower and Subsidiaries. .............................................................. 118        8.09   Amendments of Subordinated Indebtedness. .................................................................. 118        8.10   Financial Covenants. ....................................................................................................... 119        8.11   Fiscal Year, Etc. .............................................................................................................. 120        8.12   Sanctions. ........................................................................................................................ 120        8.13   Anti-Corruption Laws. .................................................................................................... 120  ARTICLE IX  EVENTS OF DEFAULT AND REMEDIES ................................................................... 120         9.01  Events of Default. ........................................................................................................... 120        9.02   Application of Funds. ..................................................................................................... 123        9.03   Collection Allocation Mechanism. ................................................................................. 124  ARTICLE X  ADMINISTRATIVE AGENT ........................................................................................... 126         10.01  Appointment and Authority. ........................................................................................... 126        10.02  Rights as a Lender. .......................................................................................................... 126        10.03  Exculpatory Provisions. .................................................................................................. 126        10.04  Reliance by Administrative Agent. ................................................................................. 127        10.05  Delegation of Duties. ...................................................................................................... 127        10.06  Resignation of Administrative Agent. ............................................................................ 128        10.07  Non-Reliance on Administrative Agent and Other Lenders. .......................................... 129        10.08  No Other Duties; Etc. ...................................................................................................... 130        10.09  Administrative Agent May File Proofs of Claim. ........................................................... 130        10.10  Collateral and Guaranty Matters. .................................................................................... 131        10.11  Secured Treasury Management Agreements and Swap Contracts. ................................ 131  ARTICLE XI  MISCELLANEOUS ......................................................................................................... 132         11.01  Amendments, Etc. ........................................................................................................... 132        11.02  Notices and Other Communications; Facsimile Copies. ................................................ 134        11.03  No Waiver; Cumulative Remedies. ................................................................................ 136        11.04  Expenses; Indemnity; and Damage Waiver. ................................................................... 137        11.05  Payments Set Aside. ....................................................................................................... 139        11.06  Successors and Assigns. ................................................................................................. 139        11.07  Treatment of Certain Information; Confidentiality. ........................................................ 144        11.08  Set-off. ............................................................................................................................ 145        11.09  Interest Rate Limitation. ................................................................................................. 145        11.10  Counterparts; Integration; Effectiveness. ........................................................................ 145        11.11  Survival of Representations and Warranties. .................................................................. 146        11.12  Severability. .................................................................................................................... 146        11.13  Replacement of Lenders. ................................................................................................ 146        11.14  Governing Law; Jurisdiction; Etc. .................................................................................. 147        11.15  Waiver of Right to Trial by Jury. .................................................................................... 148        11.16  Electronic Execution of Assignments and Certain Other Documents. ........................... 148        11.17  USA PATRIOT Act Notice. ........................................................................................... 149        11.19  Parallel Debt. .................................................................................................................. 149        11.20  Judgment Currency. ........................................................................................................ 150        11.21  Amendment and Restatement. ........................................................................................ 151        11.22  Acknowledgement and Consent to Bail-In of EEA Financial Institutions. .................... 151        11.23  Lender ERISA Representations. ..................................................................................... 152        11.24  Waiver of Breakage Costs. ............................................................................................. 153        11.25  Reallocation. ................................................................................................................... 153        11.26  Subordination. ................................................................................................................. 153        11.27  ENTIRE AGREEMENT. ................................................................................................ 153                                            iii  CHAR1\1732710v2 

 

          11.28  Acknowledgement Regarding Any Supported QFCs. .................................................... 154                                                       iv  CHAR1\1732710v2 

 

    SCHEDULES                  1.01(b)      Existing Letters of Credit         2.01         Commitments and Applicable Percentages         6.07         Intellectual Property Rights         6.08         Subsidiaries         6.18         Insurance         7.13         Post-Closing Obligations         8.01         Existing Indebtedness         8.02         Existing Liens         8.04         Existing Investments         11.02        Certain Addresses for Notices           EXHIBITS                  2.02         Form of Loan Notice         2.03(m)      Form of Letter of Credit Report         2.03(n)      Form of Notice of Additional L/C Issuer         2.04         Form of Swing Line Loan Notice         2.05         Form of Notice of Loan Prepayment         2.11(a)(i)   Form of Revolving Note         2.11(a)(ii)   Form of Swing Line Note         2.11(a)(iii)  Form of U.S. Term Note         2.11(a)(iv)  Form of Multicurrency Term Note         2.11(a)(v)   Form of Incremental Term Note         2.16-1       Form of Foreign Borrower Request and Assumption Agreement         2.16-2       Form of Foreign Borrower Notice         3.01(e)      Forms of U.S. Tax Compliance Certificate (Forms 1 through 4)         7.04         Form of Compliance Certificate         7.09         Form of Guarantor Joinder Agreement         9.02         Form of Secured Party Designation Notice         11.06        Form of Assignment and Assumption                                                        v  CHAR1\1732710v2 

 

                   THIRD AMENDED AND RESTATED CREDIT AGREEMENT          This THIRD AMENDED AND RESTATED CREDIT AGREEMENT is entered into as of January  23, 2018 among KNOLL, INC., a Delaware corporation (the “Parent Borrower”), Knoll Denmark ApS, a  private  limited  company  incorporated  in  Denmark  (“Knoll  Denmark”),  Knoll  Europe  B.V.,  a  Dutch  company with limited liability, with corporate seat in Amsterdam, the Netherlands (“Knoll Europe”) and  certain other Foreign Subsidiaries of the Parent Borrower party hereto pursuant to Section 2.16 (each a  “Foreign Borrower” and, together with the Parent Borrower, the “Borrowers” and, each a “Borrower”), the  Guarantors  (defined  herein),  the  Lenders  (defined  herein)  and  BANK  OF  AMERICA,  N.A.,  as  Administrative Agent, Swing Line Lender and L/C Issuer.          WHEREAS, the Parent Borrower, certain domestic subsidiaries, as guarantors, certain lenders and  Bank of America, as administrative agent, swing line lender and letter of credit issuer, have entered into  that certain Second Amended and Restated Credit Agreement dated as of May 20, 2014 (as  amended or  modified from time to time prior to the date hereof, the “Existing Credit Agreement”); and         WHEREAS, the parties to the Existing Credit Agreement wish to amend and restate the Existing  Credit Agreement to make certain amendments and modifications, all as more fully set forth herein;         NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained,  the parties hereto covenant and agree as follows:                                         ARTICLE I                                                                       DEFINITIONS AND ACCOUNTING TERMS    1.01  Defined Terms.           As used in this Agreement, the following terms shall have the meanings set forth below:           “Acquisition”, by any Person, means the acquisition by such Person, in a single transaction or in a  series of related transactions, of all or any substantial portion of the property of another Person or at least a  majority of the Voting Stock of another Person, in each case whether or not involving a merger or consolidation  with such other Person and whether for cash, property, services, assumption of Indebtedness, securities or  otherwise.                  “Acquisition Agreement” has the meaning specified in Section 2.01(d)(iii).                 “Additional Lender” has the meaning specified in Section 2.01(d).                “Administrative  Agent”  means  Bank  of  America  (or  any  of  its  designated  branch  offices  or  affiliates)  in  its  capacity  as  administrative  agent  under  any  of  the  Loan  Documents,  or  any  successor  administrative agent.                   “Administrative Agent’s Office” means, with respect to any currency, the Administrative Agent’s  address and, as appropriate, account as set forth on Schedule 11.02 with respect to such currency or such  other address or account with respect to such currency as the Administrative Agent may from time to time  notify to the Parent Borrower and the Lenders.                   “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the  Administrative Agent.    CHAR1\1732710v2 

 

                 “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.                    “Aggregate Revolving Commitments” has the meaning specified in Section 2.01(a).                “Agreement” means this Credit Agreement.         “Alternative Currency” means Euro, Sterling and each other currency (other than Dollars) that is  approved in accordance with Section 1.08.                “Alternative Currency Equivalent” means, at any time, with respect to any amount denominated in  Dollars,  the  equivalent  amount  thereof  in  the  applicable  Alternative  Currency  as  determined  by  the  Administrative Agent or the L/C Issuer, as the case may be, at such time on the basis of the Spot Rate  (determined in respect of the most recent Revaluation Date) for the purchase of such Alternative Currency  with Dollars.                  “Alternative  Currency  Sublimit”  means  an  amount  equal  to  the  lesser  of  (a)  the  Aggregate  Revolving Commitments and (b) $300,000,000.  The Alternative Currency Sublimit is part of, and not in  addition to, the Aggregate Revolving Commitments.           “Applicable Percentage” means with respect to any Lender at any time, (a) with respect to such  Lender’s Revolving Commitment at any time, the percentage (carried out to the ninth decimal place) of the  Aggregate Revolving Commitments represented by such Lender’s Revolving Commitment at such time,  (b) with respect to such Lender’s portion of the outstanding U.S. Term Loan at any time, the percentage  (carried out to the ninth decimal place) of the outstanding principal amount of the U.S. Term Loan held by  such Lender at such time, (c) with respect to such Lender’s portion of the outstanding Multicurrency Term  Loan at any time, the percentage (carried out to the ninth decimal place) of the outstanding principal amount  of the Multicurrency Term Loan held by such Lender at such time, and (d) with respect to such Lender’s  portion of any Incremental Term Loan at any time, the percentage (carried out to the ninth decimal place)  of any given Incremental Term Loan represented by such Lender’s Incremental Term Loan Commitment  (or, after the funding thereof, the percentage (carried out to the ninth decimal place) of the outstanding  principal amount of such Incremental Term Loan held by such Lender); provided, that, if the commitment  of each Lender to make Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have  been terminated pursuant to Section 9.01 or if the Aggregate Revolving Commitments or Incremental Term  Loan Commitments, as applicable, have expired, then the Applicable Percentage of each Lender shall be  determined based on the Applicable Percentage of such Lender most recently in effect, giving effect to any  subsequent assignments.  The initial Applicable Percentage of each Lender is set forth opposite the name  of such Lender on Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender  becomes a party hereto, as applicable.                  “Applicable Rate” means with respect to Revolving Loans, the U.S. Term Loan, the Multicurrency  Term Loan, Swing Line Loans, Letters of Credit and the Commitment Fee, the following percentages per  annum,  based  upon the  Consolidated Total  Leverage  Ratio  as  set forth  in  the  most  recent  Compliance  Certificate received by the Administrative Agent pursuant to Section 7.04(c):                                                2  CHAR1\1732710v2 

 

                   Consolidated                                   Commitment    Letter of Credit Eurocurrency Base Rate    Pricing Tier Total Leverage                                       Fee           Fee         Rate Loans      Loans                     Ratio        1         < 1.00 to 1.0      0.175%         1.00%         1.00%          0.00%                  > 1.00 to 1.0        2                            0.200%         1.25%         1.25%          0.25%                 but < 1.75 to 1.0                  > 1.75 to 1.0        3                            0.225%         1.50%         1.50%          0.50%                 but < 2.75 to 1.0                  > 2.75 to 1.0        4                            0.250%         1.75%         1.75%          0.75%                 but < 3.50 to 1.0        5         > 3.50 to 1.0      0.300%         2.00%         2.00%          1.00%    Any increase or decrease in the Applicable Rate resulting from a change in the Consolidated Total Leverage  Ratio shall become effective as of the first (1st) Business Day immediately following the date a Compliance  Certificate is required to be delivered pursuant to Section 7.04(c); provided, however, that, if a Compliance  Certificate is not delivered when due in accordance with Section 7.04(c), then Pricing Tier 5 shall apply as  of the first (1st) Business Day after the date on which such Compliance Certificate was required to have  been delivered and shall continue to apply until the first (1st) Business Day immediately following the date  a Compliance Certificate is delivered in accordance with Section 7.04(c), whereupon the Applicable Rate  shall be adjusted based upon the calculation of the Consolidated Total Leverage Ratio contained in such  Compliance Certificate.  The Applicable Rate in effect from the First Amendment Effective Date through  the  first  (1st)  Business  Day  immediately  following  the  date  a  Compliance  Certificate  is  required  to  be  delivered pursuant to Section 7.04(c) for the fiscal quarter ending September 30, 2019 shall be determined  based  upon  Pricing  Tier  3.   Notwithstanding  anything  to  the  contrary  contained  in  this  definition,  the  determination of the Applicable Rate for any period shall be subject to the provisions of Section 2.10(b).   The “Applicable Rate” with respect to any Incremental Term Loan shall be as set forth in the definitive  documentation therefor (subject to the requirements of Section 2.01(d)(ii)).           “Applicable  Time”  means,  with  respect  to  any  borrowings  and  payments  in  any  Alternative  Currency, the local time in the place of settlement for such Alternative Currency as may be determined by  the Administrative Agent or the L/C Issuer, as the case may be, to be necessary for timely settlement on the  relevant date in accordance with normal banking procedures in the place of payment.                “Applicant Borrower” has the meaning specified in Section 2.16.                “Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate  of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.                  “Arrangers” means BofA Securities, Citizens Bank, N.A., SunTrust Robinson Humphrey, Inc. and  TD Securities (USA) LLC, together with their respective successors and assigns, in their capacities as joint  lead arrangers with respect to this Agreement.                  “Asset  Sale”  means  the  sale,  transfer  or  other  disposition  (by way  of  merger,  casualty,  condemnation or otherwise but excluding Investments permitted by Section 8.04) by the Parent Borrower  or any of the Subsidiaries to any Person other than the Parent Borrower or any Guarantor of (a) any Equity  Interests of any of the Subsidiaries (other than directors’ qualifying shares and other de minimis ownership  interests required to be owned under applicable foreign Law by local residents, or the sale by any person of  Equity Interests of such person) or (b) any other assets of the Parent Borrower or any of the Subsidiaries  (other than (i) inventory, damaged, obsolete or worn out assets, scrap and Permitted Investments, in each                                              3  CHAR1\1732710v2 

 

   case disposed of in the ordinary course of business (including allowing any registrations or any applications  for registration of any immaterial Intellectual Property to lapse or go abandoned in the ordinary course of  business); (ii) to the extent constituting an “Asset Sale”, Liens permitted under Sections 8.02, transactions  permitted under Section 8.03 or transactions permitted under Section 8.06; (iii) dispositions of property that  is  exchanged  for  credit  against  the  purchase  price  of  similar  replacement  property  that  is  promptly  purchased,  or  the  proceeds  of  such  disposition  are  promptly  applied,  to  the  purchase  price  of  such  replacement property (provided, that, (x) to the extent the property being transferred constitutes Collateral  such  replacement  property  shall  constitute  Collateral  and  (y)  any  cash  or  cash  equivalents  received  in  connection with such exchange (net of all costs and expenses incurred in connection with such transaction)  shall be deemed to be Net Cash Proceeds subject to Section 2.05); (iv) dispositions of cash and Permitted  Investments at fair market value (as reasonably determined by the Parent Borrower) in the ordinary course  of business; (v) Involuntary Dispositions; provided that the Net Cash Proceeds thereof shall be applied in  accordance  with  the  requirements  of  Section  2.05(b)(ii);   (vi) leases  and  subleases  (and  licenses  and  sublicenses) of real or personal property and any license, sublicense or other grant of rights in or to any  Intellectual Property, in each case to third parties in the ordinary course of business and which do not  interfere, in any material respect, with the operations of the Parent Borrower and its Subsidiaries in the  ordinary course of business; (vii) dispositions of assets between or among Domestic Loan Parties; (viii)  dispositions of assets between or among Subsidiaries that are not Loan Parties; (ix) dispositions of assets  between or among Foreign Obligors; (x) dispositions of assets from any Loan Party to any Subsidiary that  is not a Loan Party if such disposition is treated as an Investment in such Subsidiary and such Investment  is  permitted  by  Section  8.04);  (xi)  the  unwinding  of  any  Swap  Contract;  and  (xii)  the  sale  or  other  disposition  by  Parent  Borrower  or  a  Subsidiary  of  shares  of  Equity  Interests  of  any  of  its  Foreign  Subsidiaries in order to qualify members of the governing body of such Foreign Subsidiary if and to the  extent required by applicable Law.                  “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 11.06(b)), and  accepted  by  the  Administrative  Agent,  in  substantially  the  form  of  Exhibit  11.06  or  any  other  form  (including electronic documentation generated by MarkitClear or other electronic platform) approved by  the Administrative Agent.                  “Audited  Financial  Statements”  means  the  audited  consolidated  balance  sheet  of  the  Parent  Borrower and its Subsidiaries for the fiscal year ended December 31, 2016, and the related consolidated  statements of income or operations, shareholders’ equity and cash flows for such fiscal year of the Parent  Borrower and its Subsidiaries, including the notes thereto, audited by independent public accountants of  recognized national standing and prepared in conformity with GAAP.                “Auto-Extension Letter of Credit” has the meaning specified in Section 2.03(b)(iii).                “Availability Period” means the period from and including the Effective Date to the earliest of (a)  the Maturity Date, (b) the date of termination of the Aggregate Revolving Commitments pursuant to Section  2.06, and (c) the date of termination of the commitment of each Lender to make Loans and the obligation  of the L/C Issuer to make L/C Credit Extensions pursuant to Section 9.01.                “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                                              4  CHAR1\1732710v2 

 

   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. and its successors.                “Base Rate” means for any day a fluctuating rate per annum equal to the highest of (a) the Federal  Funds Rate plus one-half of one percent (0.50%), (b) the rate of interest in effect for such day as publicly  announced from time to time by Bank of America as its “prime rate” and (c) the Eurocurrency Rate plus  one percent (1.0%); provided, that, if the Base Rate shall be less than zero, such rate shall be deemed to be  zero for purposes of this Agreement.  The “prime rate” is a rate set by Bank of America based upon various  factors  including  Bank  of  America’s  costs  and  desired  return,  general  economic  conditions  and  other  factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below  such announced rate.  Any change in the “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 3.03, then the Base Rate shall be the greater  of clauses (a) and (b) of this definition and shall be determined  without reference to clause (c) of this  definition.                  “Base Rate Loan” means a Loan that bears interest based on the Base Rate.  All Base Rate Loans  are only available to the Parent Borrower and Loans denominated in Dollars.                  “Beneficial Ownership Certification” means a certification regarding beneficial ownership required  by the Beneficial Ownership Regulation.                   “Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.                 “Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject  to Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Internal Revenue 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 Internal Revenue Code) the assets of any such “employee benefit plan” or “plan”.                  “BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted  in accordance with, 12 U.S.C. 1841(k)) of such party.                   “BofA Securities” means BofA Securities, Inc.                 “Borrower” has the meaning specified in the introductory paragraph hereto.                “Borrower Materials” has the meaning specified in Section 7.04.                “Borrowing” means a borrowing consisting of simultaneous Loans of the same Type and, in the  case of Eurocurrency Rate Loans, having the same Interest Period made by each of the Lenders pursuant to  Section 2.01.                “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 with respect to Obligations denominated in Dollars is located and:                                                       5  CHAR1\1732710v2 

 

                (a)    if such day relates to any interest rate settings as to a Eurocurrency Rate Loan        denominated  in  Dollars,  any  fundings,  disbursements,  settlements  and  payments  in  Dollars  in        respect of any such Eurocurrency Rate Loan, or any other dealings in Dollars to be carried out        pursuant to this Agreement in respect of any such Eurocurrency Rate Loan, means any such day on        which dealings in deposits in Dollars are conducted by and between banks in the London interbank        eurodollar market; and                       (b)    if such day relates to any interest rate settings as to a Eurocurrency Rate Loan        denominated in Euro, any fundings, disbursements, settlements and payments in Euro in respect of        any such Eurocurrency Rate Loan, or any other dealings in Euro to be carried out pursuant to this        Agreement in respect of any such Eurocurrency Rate Loan, means a TARGET Day;                              (c)    if such day relates to any interest rate settings as to a Eurocurrency Rate Loan        denominated in a currency other than Dollars or Euro, means any such day on which dealings in        deposits  in  the  relevant  currency  are  conducted  by  and  between banks  in  the  London  or  other        applicable offshore interbank market for such currency; and                              (d)  if  such  day  relates  to  any  fundings,  disbursements,  settlements  and  payments  in  a        currency other  than  Dollars  or Euro  in  respect  of  a  Eurocurrency  Rate  Loan denominated  in  a        currency other than Dollars or Euro, or any other dealings in any currency other than Dollars or        Euro to be carried out pursuant to this Agreement in respect of any such Eurocurrency Rate Loan        (other than any interest rate settings), means any such day on which banks are open for foreign        exchange business in the principal financial center of the country of such currency.                “Capital Lease Obligations” of any Person means the obligations of such Person to pay rent or other  amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or  a combination thereof, which obligations are required to be classified and accounted for as capital leases  on a balance sheet of such person under GAAP, and the amount of such obligations shall be the capitalized  amount thereof determined in accordance with GAAP.                  “Cash Collateralize” means to pledge and deposit with or deliver to the Administrative Agent, for  the  benefit  of  one  or  more  of  the  L/C  Issuer  and/or  the  Lenders,  as  collateral  for  L/C  Obligations  or  obligations of the Lenders to fund participations in respect of L/C Obligations, cash or deposit account  balances or, if the Administrative Agent and the L/C Issuer shall agree in their sole discretion, other credit  support, in each case pursuant to documentation in form and substance satisfactory to the Administrative  Agent and the L/C Issuer.  “Cash Collateral” shall have a meaning correlative to the foregoing and shall  include the proceeds of such cash collateral and other credit support.          “Cash Management Obligations” means obligations owed by any Borrower or any of its Subsidiaries  to any Lender or any Affiliate of a Lender in respect of any Treasury Management Agreement.                  “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 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                                              6  CHAR1\1732710v2 

 

   authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”,  regardless of the date enacted, adopted or issued.                “Change of Control” means the occurrence of any of the following events:                                                     (a)    any “person” or “group” (within the meaning of the Securities Exchange Act of 1934 and  the rules of the SEC thereunder as in effect on the date hereof) becomes, directly or indirectly, the beneficial  owner of Equity Interests in the Parent Borrower representing more than forty percent (40%) or more of  the  Equity  Interests  of  the  Parent  Borrower  entitled  to  vote  for  members  of  the  board  of  directors  or  equivalent governing body of the Parent Borrower on a fully-diluted basis (and taking into account all such  securities that such person or group has the right to acquire pursuant to any option right);                (b)    at any time, occupation of a majority of the seats (other than vacant seats) on the board of  directors of the Parent Borrower by persons who were neither nominated by the board of directors of the  Parent Borrower nor appointed by directors so nominated; or                (c)    the  occurrence  of  any  change  in  control  or  similar  event (however  denominated)  with  respect to the Parent Borrower under and as defined in any indenture or agreement in respect of Material  Indebtedness to which the Parent Borrower or a Subsidiary is a party.                “Collateral” means a collective reference to all personal property with respect to which Liens in  favor of the Administrative Agent, for the benefit of the Lenders, are purported to be granted pursuant to  and in accordance with the terms of the Collateral Documents, and shall in any event exclude all Excluded  Property.           “Collateral Documents” means a collective reference to the Security Agreement, the Dutch Share  Pledge  Agreement,  the  Danish  Share  Pledge  Agreement  (Knoll  Denmark  Equity  Interests),  the  Danish  Share Pledge Agreement (Muuto A/S Equity Interests), and other security documents as may be executed  and delivered by the Loan Parties pursuant to the terms of Section 7.09, in each case as amended, modified  or reaffirmed from time to time, including pursuant to any reaffirmation agreement.           “Commitment”  means,  as  to  each  Lender,  any  Revolving  Commitment,  any  Term  Loan  Commitment and/or any Incremental Term Loan Commitment of such Lender.                  “Commitment Fee” has the meaning specified in Section 2.09(a).                “Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.).           “Communication” has the meaning specified in Section 11.16.                “Compliance Certificate” has the meaning specified in Section 7.04(c) and shall be substantially in  the form of Exhibit 7.04.                “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 EBITDA” means, for any period, Consolidated Net Income for such period plus (a)  without duplication and to the extent deducted in determining such Consolidated Net Income, the sum of  (i) Consolidated Interest Expense for such period, (ii) all amounts for taxes based on income, profits or  capital and commercial activity payments to taxing authorities (or in each case similar taxes or payments),  including income tax expense of consolidated Foreign Subsidiaries and foreign withholding tax expense                                              7  CHAR1\1732710v2 

 

   for such period, (iii) all amounts attributable to depreciation and amortization for such period, (iv) any non- recurring fees, cash charges and other cash expenses made or incurred in connection with the Transactions  that are paid or otherwise accounted for within two hundred seventy (270) days of the consummation of the  Transactions, (v) any extraordinary losses, (vi) (A) facilities relocation or closing costs, (B) non-recurring  restructuring  costs  and  (C) integration  costs  and  fees,  including  cash  severance  costs,  in  each  case  in  connection with any Permitted Acquisition, Investment, Asset Sale, recapitalization or refinancing and in  each  case  incurred  during  such  period  and  payable  in  cash,  (vii)  in  connection  with  any  Permitted  Acquisition,  Investment,  Asset  Sale,  recapitalization  or  refinancing,  (A)  the  amount  of  “run-rate”  cost  savings,  operating  expense  reductions  and  product  cost  (including  sourcing),  and  other  operating  improvements  and  cost  savings  synergies  (but  not  net  revenue  synergies)  reasonably  identifiable  and  factually supportable relating to, and projected by the Parent Borrower or any of its Subsidiaries in good  faith to result from, actions taken or with respect to which substantial steps have been taken or are expected  to be taken by Parent Borrower or any of its Subsidiaries within twelve (12) months after (I) in the case of  the Transactions, the Effective Date, and (II) in the case of any other Permitted Acquisition, Investment,  Asset Sale, recapitalization or refinancing, the date it is consummated and (B) pro forma adjustments arising  out  of  events  which  are  directly  attributable  to  such  Permitted  Acquisition,  Investment,  Asset  Sale,  recapitalization or refinancing that are factually supportable and are expected to have a continuing impact,  in each case as determined on a basis consistent with Article 11 of Regulation S-X of the Securities Act of  1933,  as  amended,  as  interpreted by  the  staff  of  the  Securities  and  Exchange  Commission,  (viii)  non- recurring restructuring, integration, severance and/or relocation costs reasonably identifiable and factually  supportable, (ix) any non-cash compensation charges and deferred compensation charges, including arising  from stock options, taken during such period, (x) any other non-cash charges (other than the write-down of  current assets), impairments and expenses for such period (including amortization of loan acquisition costs  and unrealized gains and losses on Swap Contracts and gains and losses on foreign exchange (including in  respect  of  intercompany  notes)),  (xi)  fees,  cash  charges  and  other  cash  expenses  made  or  incurred  in  connection with equity or debt financings and amendments and waivers thereto and (xii) reasonable out-of- pocket fees and expenses incurred in connection with the dividends and distributions required under Part I  of Schedule 7.13 (but not, for purpose of clarity, any fees or expenses incurred in connection with dividends  and distributions not required under Part I of Schedule 7.13), minus (b) without duplication (i) all cash  payments made during such period on account of non-cash charges added to Consolidated Net Income  pursuant to clauses (a)(ix) or (x) above in such period or in a previous period and (ii) to the extent included  in determining such Consolidated Net Income, any extraordinary gains and all non-cash items of income  (other  than  normal  accruals  in  the  ordinary  course  of  business)  for  such  period,  all  determined  on  a  consolidated basis in accordance with GAAP; provided, however, notwithstanding anything to the contrary  in the foregoing, for purposes of calculating Consolidated EBITDA for all purposes under this Agreement  and the other Loan Documents, the aggregate contribution to Consolidated EBITDA by Subsidiaries that  are  not  Loan  Parties  shall  be  limited  to  an  amount  not  in  excess  of  twenty-five  percent  (25%)  of  the  Consolidated EBITDA of the Parent Borrower and its Subsidiaries determined on a consolidated basis  (except to the extent of dividends and distributions made in cash to the Parent Borrower or any Loan Party  by any such non-Loan Party Subsidiary) (except that, for so long as Knoll Denmark is a Loan Party and the  Muuto Entities (or their successor by merger) are owned by Knoll Denmark, then the total contribution to  Consolidated  EBITDA  by  the  Muuto  Entities  (or  their  successor  by  merger)  shall  be  included  in  the  Consolidated EBITDA of the Parent Borrower notwithstanding the limitations of this proviso); provided,  further, that, (A) notwithstanding anything to the contrary in the foregoing, for purposes of calculating  Consolidated EBITDA for all purposes under this Agreement and the other Loan Documents during the  fiscal years of the Parent Borrower ending December 31, 2020 and December 31, 2021, the aggregate  contribution to Consolidated EBITDA from clauses (a)(vi), (vii) and (viii) of this definition shall be limited  to an amount not in excess of the greater of (I) fifteen percent (15%) of the Consolidated EBITDA of the  Parent Borrower and its Subsidiaries determined on a consolidated basis for any period of four (4) fiscal  quarters during such fiscal years (determined prior to giving effect to such add-backs), and (II) (x) with  respect to the aggregate contribution to Consolidated EBITDA from clauses (a)(vi) and (viii) during any                                              8  CHAR1\1732710v2 

 

   such period of four (4) fiscal quarters during the fiscal year of the Parent Borrower ending December 31,  2020, $30,000,000, (y) with respect to the aggregate contribution to Consolidated EBITDA from clauses  (a)(vi) and (viii) during any such period of four (4) fiscal quarters during the fiscal year of the Parent  Borrower ending December 31, 2021, $25,000,000, and (z) with respect to the aggregate contribution to  Consolidated EBITDA from clause (a)(vii) during any such period of four (4) fiscal quarters, $10,000,000,  and (B) notwithstanding anything to the contrary in the foregoing, for purposes of calculating Consolidated  EBITDA for all purposes under this Agreement and the other Loan Documents at any time other than as  set forth in clause (A) of this proviso, the aggregate contribution to Consolidated EBITDA from clauses  (a)(vi), (vii) and (viii) of this definition shall be limited to an amount not in excess of fifteen percent (15%)  of the Consolidated EBITDA of the Parent Borrower and its Subsidiaries determined on a consolidated  basis for any period of four (4) fiscal quarters (determined prior to giving effect to such add-backs).                    “Consolidated Interest Coverage Ratio” means, as of any date of determination, the ratio of (a)  Consolidated EBITDA for the period of the four (4) fiscal quarters most recently ended to (b) Consolidated  Interest Expense for the period of the four (4) fiscal quarters most recently ended.                   “Consolidated  Interest  Expense”  means,  for  any  period,  the  sum of  (a)  the  interest  expense  (including  imputed  interest  expense  in  respect  of  Capital  Lease  Obligations  and  Synthetic  Lease  Obligations),  net  of  cash  interest  income  of  the  Parent  Borrower  and  its  Subsidiaries  for  such  period,  determined on a consolidated basis in accordance with GAAP, plus (b) any interest accrued during such  period in respect of Indebtedness of the Parent Borrower or any Subsidiary that is required to be capitalized  rather  than  included  in  consolidated  interest  expense  for  such period  in  accordance  with  GAAP.  For  purposes of the foregoing, interest expense shall be determined (a) by excluding non-cash interest expense  and amortization of deferred financing costs and original issue discount and (b) after giving effect to any  net payments made or received by the Parent Borrower or any Subsidiary with respect to interest rate Swap  Contracts.                   “Consolidated Net Income” means, for any period, the net income or loss of the Parent Borrower  and its Subsidiaries (excluding extraordinary gains and losses) for such period determined on a consolidated  basis in accordance with GAAP; provided, that, there shall be excluded (a) the income of any Subsidiary  to the extent that the declaration or payment of dividends or similar distributions by the Subsidiary of that  income is not at the time permitted by operation of the terms of its charter or any agreement, instrument,  judgment, decree, statute, rule or governmental regulation applicable to such Subsidiary, (b) the income or  loss of any person accrued prior to the date it becomes a Subsidiary or is merged into or consolidated with  the Parent Borrower or any Subsidiary or the date that such person’s assets are acquired by the Parent  Borrower or any Subsidiary, (c) the income of any person in which any other person (other than the Parent  Borrower or a wholly-owned Subsidiary or any De Minimis Holder) has a joint interest, except to the extent  of the amount of dividends or other distributions actually paid to the Parent Borrower or a wholly-owned  Subsidiary by such person during such period, (d) any gains or losses attributable to sales of assets out of  the ordinary course of business in excess of $2,500,000 and (e) gains and losses, realized or unrealized,  relating to fluctuations in currency values.  Notwithstanding anything set forth in clause (a) above to the  contrary, a Foreign Subsidiary may agree to restrict its ability to declare dividends or similar distributions  without excluding the net income of such Foreign Subsidiary from Consolidated Net Income so long as (a)  the  agreement  that  restricts  such  ability  relates  to  Indebtedness  of  such  Foreign  Subsidiary  permitted  hereunder, (b) the proceeds thereof are used, directly or indirectly through intercompany transfers, to prepay  the Loans and (c) the net income of such Foreign Subsidiary for the applicable period, together with the net  income of each other Foreign Subsidiary subject to a similar restriction, does not exceed ten percent (10%)  of Consolidated Net Income for such period.                  “Consolidated Secured Net Leverage Ratio” means, as of any date of determination, the ratio of (a)  the secured Indebtedness (net of unrestricted cash of the Parent Borrower and its Subsidiaries of up to                                              9  CHAR1\1732710v2 

 

   $30,000,000) on a consolidated basis as of such date to (b) Consolidated EBITDA for the period of the four  (4) fiscal quarters most recently ended.                “Consolidated Total Leverage Ratio” means, as of any date of determination, the ratio of (a) the  total Indebtedness on a consolidated basis as of such date to (b) Consolidated EBITDA for the period of the  four (4) fiscal quarters most recently ended.                  “Consolidated Total Net Leverage Ratio” means, as of any date of determination, the ratio of (a)  the total Indebtedness (net of unrestricted cash of the Parent Borrower and its Subsidiaries in an aggregate  amount of up to $30,000,000) on a consolidated basis as of such date to (b) Consolidated EBITDA for the  period of the four (4) fiscal quarters most recently ended.                “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 meanings correlative thereto.                  “Copyrights” has the meaning assigned to such term in the Security Agreement.                “Covenant Trigger Event” means both (a) a Permitted Acquisition with total consideration in an  aggregate amount of at least $200,000,000 and (b) the issuance by the Parent Borrower of senior unsecured  Indebtedness in an aggregate principal amount of at least $100,000,000.                  “Covenant Trigger Period” means, after delivery of written notice from the Parent Borrower to the  Administrative Agent following the occurrence of a Covenant Trigger Event that the Parent Borrower elects  to implement such period, the period from and including the date of delivery of such notice (which shall be  provided by the Parent Borrower no later than the last day of the fiscal quarter in which such Covenant  Trigger Event occurs) through and including the Maturity Date.                  “Covered Entity” means any of the following: (a) a “covered entity” as that term is defined in, and  interpreted in accordance with, 12 C.F.R. § 252.82(b); (b) a “covered bank” as that term is defined in, and  interpreted in accordance with, 12 C.F.R. § 47.3(b); or (c) a “covered FSI” as that term is defined in, and  interpreted in accordance with, 12 C.F.R. § 382.2(b).                   “Covered Party” has the meaning specified in Section 11.28.                 “Credit Extension” means each of the following: (a) a Borrowing and (b) an L/C Credit Extension.                “Danish  Companies  Act  (2015)”  has  the  meaning  assigned  to  such term  in  the  definition  of  “Subsidiary.”                  “Danish Loan Party” has the meaning specified in Section 4.01.                “Danish  Share  Pledge  Agreement  (Knoll  Denmark  Equity  Interests)”  means  that  certain  Share  Pledge  Agreement  dated  June  21,  2018  between  Knoll  Europe,  as  pledgor,  the  Secured  Parties  (as  represented by the Administrative Agent), as pledgees, and the Administrative Agent, as the security agent,  as may be amended, supplemented, modified, restated or replaced.                    “Danish Share Pledge Agreement (Muuto A/S Equity Interests)” means that certain Share Pledge  Agreement dated June 21, 2018 between Knoll Denmark, as pledgor, the Secured Parties (as represented  by the Administrative Agent), as pledgees, and the Administrative Agent, as the security agent, as may be  amended, supplemented, modified, restated or replaced.                                              10  CHAR1\1732710v2 

 

                 “De Minimis Holders” means, with respect to any wholly-owned Subsidiary, holders of directors’  qualifying shares and other de minimis ownership interests required to be owned under foreign Law by  local residents.                  “Debt Issuance” means the issuance by any Loan Party or any Subsidiary of any Indebtedness other  than Indebtedness permitted under Section 8.01.                 “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 and affecting the rights of creditors generally.                “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 (as provided in Section 9.01), would be an Event of Default.                “Default Rate” means (a) when used with respect to Obligations other than Letter of Credit Fees,  an interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate, if any, applicable to Base Rate Loans  plus (iii) two percent (2%) per annum; provided, however, that, with respect to a Eurocurrency Rate Loan,  the Default Rate shall be an interest rate equal to the interest rate (including any Applicable Rate) otherwise  applicable to such Loan plus two percent (2%) per annum, in each case to the fullest extent permitted by  applicable Laws and (b) when used with respect to Letter of Credit Fees, a rate equal to the Applicable Rate  plus two percent (2%) per annum.                “Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance  with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.                   “Defaulting Lender” means, subject to Section 2.15(b), any Lender that (a) has failed to (i) fund all  or any portion of its Loans within two (2) Business Days of the date such Loans were required to be funded  hereunder unless such Lender notifies the Administrative Agent and the Parent 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, the L/C Issuer, the Swing  Line Lender or any other Lender any other amount required to be paid by it hereunder (including in respect  of its participation in Letters of Credit or Swing Line Loans) within two (2) Business Days of the date when  due, (b) has notified the Parent Borrower, the Administrative Agent, the L/C Issuer or the Swing Line  Lender 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 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 Parent Borrower, to confirm in  writing to the Administrative Agent and the Parent 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 Parent 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 Equity                                             11  CHAR1\1732710v2 

 

   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 Parent Borrower, the L/C Issuer, the Swing Line Lender and each other Lender  promptly following such determination.                  “Designated Borrower Requirements” has the meaning specified in Section 2.16(b).                 “Designated Jurisdiction” means any country or territory that is the subject of Sanctions.                “Designated Lender” has the meaning specified in Section 2.17.                “Disqualified  Preferred  Stock”  has  the  meaning  assigned  to  such  term  in  the  definition  of  “Indebtedness.”                  “Dollar” and “$” mean lawful money of the United States.                “Dollar Equivalent” means, at any time, (a) with respect to any amount denominated in Dollars,  such amount, and (b) with respect to any amount denominated in any Alternative Currency, the equivalent  amount thereof in Dollars as determined by the Administrative Agent or the L/C Issuer, as the case may be,  at such time on the basis of the Spot Rate (determined in respect of the most recent Revaluation Date) for  the purchase of Dollars with such Alternative Currency.                  “Domestic Loan Parties” means, collectively, the Parent Borrower and each Guarantor that is a  Domestic Subsidiary.                  “Domestic Subsidiary” means any Subsidiary that is organized under the Laws of any state of the  United States or the District of Columbia.  If a Foreign Subsidiary becomes a Guarantor and complies with  the provisions of Section 7.09 as to collateral that are applicable to Domestic Subsidiaries that are not  Immaterial Domestic Subsidiaries, the Parent Borrower may elect by written notice to the Administrative  Agent to treat such Subsidiary as a Domestic Subsidiary for purposes of the Loan Documents; provided,  that,  the  Administrative  Agent  concludes,  in  its  reasonable  discretion,  that  the  Lenders  would  have  substantially the same rights against such Subsidiary pursuant to the Collateral Documents under the Law  of the relevant foreign jurisdiction as the Lenders would have if such Subsidiary were organized in the  United States of America.                  “Dutch Loan Party” means any Loan Party incorporated in the Netherlands.                “Dutch Share Pledge Agreement” means that certain notarial deed of pledge dated June 26, 2018  between Knoll Overseas, Inc., a Delaware corporation, as pledgor, the Administrative Agent, as pledgee,  and Knoll Europe, as the company, as may be amended, supplemented, modified, restated or replaced.                  “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                                             12  CHAR1\1732710v2 

 

   definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of  an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with  its parent.                  “EEA  Member  Country”  means  any  of  the  member  states  of  the  European  Union,  Iceland,  Liechtenstein, and Norway.                  “EEA Resolution Authority” means any public administrative authority or any person entrusted  with  public  administrative  authority  of  any  EEA  Member  Country (including  any  delegee)  having  responsibility for the resolution of any EEA Financial Institution.                  “Effective Date” means the date hereof.                 “Effective  Date  Acquisition”  means  the  Acquisition  by  the  Parent  Borrower  of  all  the  Equity  Interests of MIE4 Holding 5 ApS and Muuto Holding ApS pursuant to the Effective Date Acquisition  Documents.                  “Effective Date Acquisition Agreement” means that certain Share Purchase Agreement, dated as  of December 10, 2017, among the Parent Borrower, Knoll Denmark, Maj Invest Equity 4 K/S, B Holding  2005  ApS,  KB  ApS,  Unos  ApS  and  AK  Cleemann  Holding  ApS,  including  all  schedules  and  exhibits  thereto.                 “Effective Date Acquisition Documents” means the Effective Date Acquisition Agreement and all  other  documents,  agreements  and instruments  relating  to  the  Effective  Date  Acquisition,  including  all  schedules and exhibits thereto.                  “Electronic Copy” has the meaning specified in Section 11.16.                “Electronic Record” has the meaning specified in Section 11.16.                “Electronic Signature” has the meaning specified in Section 11.16.                “Eligible Assignee” means any Person that meets the requirements to be an assignee under Section  11.06(b)(ii) and (iv) (subject to such consents, if any, as may be required under Section 11.06(b)(ii)).                “Eligible Currency” has the meaning specified in Section 1.08(a).                “EMU Legislation” means the legislative measures of the European Council for the introduction  of, changeover to or operation of a single or unified European currency.                  “Environmental  Laws”  means  all  applicable  federal,  state,  provincial,  local  and  foreign  Laws  (including  common  Law),  treaties,  regulations,  rules,  ordinances,  codes,  decrees,  judgments,  directives  having the force of law and orders (including consent orders), in each case, relating to protection of the  environment or natural resources.                  “Environmental Liability” means all liabilities, obligations, damages, losses, claims, actions, suits,  judgments,  orders,  fines,  penalties,  fees,  expenses  and  costs  (including  administrative  oversight  costs,  natural  resource  damages  and  remediation  costs),  arising  out  of  or  relating  to  (a)  compliance  or  non- compliance  with  any  Environmental  Law,  (b)  the  generation,  use,  handling,  transportation,  storage,  treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the Release  of any Hazardous Materials or (e) any contract, agreement or other consensual arrangement pursuant to                                             13  CHAR1\1732710v2 

 

   which liability is assumed or imposed, or for which an indemnity is granted by the Parent Borrower or any  Subsidiary, with respect to any of the foregoing.                “Environmental  Permits”  means  any  and  all  permits,  licenses,  approvals,  registrations,  notifications, exemptions and any other authorization pursuant to any Environmental Law.                  “Equity Interests”  means, with respect to any Person, all of the shares of capital stock of (or other  ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or  acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such  Person,  all  of  the  securities  convertible  into  or  exchangeable for  shares  of  capital  stock  of  (or  other  ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition  from such Person of such shares (or such other interests), and all of the other ownership or profit interests  in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and  whether  or  not  such  shares,  warrants,  options,  rights  or  other interests  are  outstanding  on  any  date  of  determination.                “ERISA”  means  the  Employee  Retirement  Income  Security  Act  of  1974,  as  the  same  may  be  amended from time to time.                  “ERISA Affiliate” means any trade or business (whether or not incorporated) that, together with  the Parent Borrower or any Subsidiary, is treated as a single employer under Section 414(b) or (c) of the  Internal Revenue Code, or solely for purposes of Section 302 of ERISA and Section 412 of the Internal  Revenue Code, is treated as a single employer under Section 414 of the Internal Revenue Code.                  “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or the  regulations issued thereunder, with respect to a Plan (other than an event for which the 30-day notice period  is waived); (b) the determination that a Plan is in “at risk status” as defined in Section 430 of the Internal  Revenue Code (c) the filing pursuant to Section 412(d) of the Internal Revenue Code or Section 303(d) of  ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (d) the  incurrence by any Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with  respect to the termination of any Plan or the withdrawal or partial withdrawal of any Borrower or any of its  ERISA Affiliates from any Plan or Multiemployer Plan; (e) the receipt by any Borrower or any of its ERISA  Affiliates from the PBGC or a plan administrator of any notice relating to the intention to terminate any  Plan or Plans or to appoint a trustee to administer any Plan; (f) the adoption of any amendment to a Plan  that would require the provision of security pursuant to Section 401(a)(29) of the Internal Revenue Code  or Section 307 of ERISA; (g) the receipt by any Borrower or any of its ERISA Affiliates of any notice, or  the receipt by any Multiemployer Plan from any Borrower or any of its ERISA Affiliates of any notice,  concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is  expected to be, insolvent, within the meaning of Title IV of ERISA; (h) the occurrence of a “prohibited  transaction” with respect to which any Borrower, any of the Subsidiaries of such Borrower or any ERISA  Affiliate is a “disqualified person” (within the meaning of Section 4975 of the Internal Revenue Code) or  with respect to which such Borrower or any such Subsidiary or ERISA Affiliate could otherwise be liable;  or (i) any other event or condition with respect to a Plan or Multiemployer Plan that could result in liability  of any Borrower or any ERISA Affiliate.                  “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.                  “EURIBOR” has the meaning specified in the definition of Eurocurrency Rate.                                                     14  CHAR1\1732710v2 

 

         “Euro” and “EUR” mean the lawful currency of the Participating Member States introduced in  accordance with the EMU Legislation.                  “Eurocurrency Rate” means:                  (a)    for any Interest Period with respect to a Eurocurrency Rate Loan:                        (i)    in the case of a Eurocurrency Rate Loan denominated in a LIBOR Quoted               Currency (other than Euro), 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 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) (in such case, the “LIBOR Rate”) at or about               11:00  a.m.,  London  time,  two  (2)  Business  Days  prior  to  the  commencement  of  such               Interest Period, for deposits in the relevant currency (for delivery on the first day of such               Interest Period) with a term equivalent to such Interest Period;                        (ii)   in the case of a Eurocurrency Rate Loan denominated in Euro, the rate per               annum  equal  to  the  Euro  Interbank Offered  Rate  (“EURIBOR”),  or a  comparable  or               successor rate, which rate is approved by the Administrative Agent in consultation with the               applicable Borrower, 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) (in such case, the “EURIBOR Rate”) at or about               11:00 a.m., Brussels, Belgium time, two (2) Business Days prior to the commencement of               such Interest Period, for deposits in Euro (for delivery on the first day of such Interest               Period) with a term equivalent to such Interest Period;                       (iii)   in the case of any other Eurocurrency Rate Loan denominated in a Non-              LIBOR  Quoted  Currency  (other  than  those  specified  above),  the  rate  designated  with               respect to such Alternative Currency at the time such Alternative Currency is approved by               the Administrative Agent and the Lenders pursuant to Section 1.08; and                (b)    for any interest calculation with respect to a Base Rate Loan on any date, the rate         per annum equal to the LIBOR Rate, at about 11:00 a.m., London time determined two (2) Business         Days prior to such date for Dollar deposits being delivered in the London interbank market for         deposits in Dollars for a term of one (1) month commencing that day;           provided that (i) to the extent a comparable or successor rate is approved by the Administrative        Agent in consultation with the applicable Borrower in connection herewith, the approved rate shall        be applied in a manner consistent with market practice; and (ii) to the extent such market practice        is not administratively feasible for the Administrative Agent, such approved rate shall be applied        as otherwise reasonably determined by the Administrative Agent; provided, further, that, if the        Eurocurrency Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this        Agreement.         “Eurocurrency Rate Loan” means a Loan that bears interest at a rate based on clause (a) of the  definition of “Eurocurrency Rate.”  Eurocurrency Rate Loans may be denominated in Dollars or in an  Alternative Currency.  All Loans denominated in an Alternative Currency or made to a Foreign Borrower  must be Eurocurrency Rate Loans.                                                      15  CHAR1\1732710v2 

 

         “Events of Default” has the meaning specified in Section 9.01.           “Excluded Domestic Subsidiary” means a Domestic Subsidiary with no material assets other than  the Equity Interests of one or more Foreign Subsidiaries.                  “Excluded Property” with respect to any Loan Party, including any Person that becomes a Loan  Party after the Effective Date as contemplated by Section 7.09, (a) any owned real or personal property  which is located outside of the United States, (b) all real property, (c) any personal property (including  motor  vehicles)  in  respect  of  which  perfection  of  a  Lien  is  not either (i) governed by the Uniform  Commercial Code or (ii) effected by appropriate evidence of the Lien being filed in either the United States  Copyright Office or the United States Patent and Trademark Office, (d) the Equity Interests of any Excluded  Domestic Subsidiary or First Tier Foreign Subsidiary of a Loan Party to the extent not required to be pledged  to secure the Obligations pursuant to Section 7.09, (e) any property which, subject to the terms of Section  7.09(b), is subject to a Lien of the type described in Section 8.02(a), Section 8.02(c) or 8.02(r) (but only to  the extent and for so long as the grant of a security interest in such property would violate the documentation  governing such Lien), (f) all Equity Interests in Spinneybeck Limited, an Irish corporation, (g) assets sold  to a Person that is not a Loan Party to the extent such sale is permitted hereunder, (h) licenses, contracts  and agreements which contain a valid and enforceable prohibition on the creation of a security interest  therein so long as such prohibition remains in effect and is valid notwithstanding anti-assignment override  provisions of the Uniform Commercial Code, (i) any United States “intent-to-use” trademark application  unless and until acceptable evidence of use of the trademark has been filed with and accepted by the United  States Patent and Trademark Office, and only to the extent that, and solely during the period in which, the  grant  of  a  security  interest  therein  would  impair  the  validity or  enforceability  of  such  “intent-to-use”  trademark application any Equity Interests in any Subsidiary which is not wholly-owned by the Parent  Borrower or any Subsidiary if the Organization Documents of such non-wholly-owned Subsidiary restricts  the  granting  of  Liens  on  any  of  its  Equity  Interests,  (j)  any  asset  of  any  Guarantor  that  is  a  Foreign  Subsidiary, and (k) any other asset, if any, as to which the Administrative Agent has determined in its  reasonable discretion that the cost of obtaining a security interest in such asset (including mortgage, stamp,  intangibles or other tax) are excessive in relation to the benefit of the Lenders of the security afforded  thereby.                  “Excluded Swap Obligation” means, with respect to any Guarantor, any Swap Obligation if, and to  the extent that, all or a portion of the Guaranty of such Guarantor of, or the grant under a Loan Document  by such Guarantor of a security interest to secure, such Swap Obligation (or any Guarantee thereof) is or  becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity  Futures  Trading  Commission  (or  the  application  or  official  interpretation  thereof)  by  virtue  of  such  Guarantor’s  failure  for  any  reason  to  constitute  an  “eligible  contract  participant”  as  defined  in  the  Commodity Exchange Act (determined after giving effect to Section 4.08 and any other “keepwell”, support  or other agreement for the benefit of such Guarantor and any and all guarantees of such Guarantor’s Swap  Obligations by other Loan Parties) at the time the Guaranty of such Guarantor, or grant by such Guarantor  of a security interest, becomes effective with respect to such Swap Obligation.  If a Swap Obligation arises  under a Master Agreement governing more than one Swap Contract, such exclusion shall apply to only the  portion of such Swap Obligation that is attributable to Swap Contracts for which such Guaranty or security  interest is or becomes excluded in accordance with the first sentence of this definition.                   “Excluded Taxes” means any of the following Taxes imposed on or with respect to any Recipient  or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured  by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed  as a result of such Recipient being organized under the Laws of, or having its principal office or, in the case  of any Lender, its 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                                             16  CHAR1\1732710v2 

 

   imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in  a Loan or Commitment pursuant to a Law in effect on the date on which (i) such Lender acquires such  interest in the Loan or Commitment (other than pursuant to an assignment request by the Parent Borrower  under Section 11.13) or (ii) such Lender changes its Lending Office, except in each case to the extent that,  pursuant to Section 3.01(a)(ii) or Section 3.01(c), amounts with respect to such Taxes were payable either  to  such  Lender’s  assignor  immediately  before  such  Lender  became  a  party  hereto  or  to  such  Lender  immediately  before  it  changed  its  Lending  Office,  (c)  Taxes  attributable  to  such  Recipient’s  failure  to  comply with Section 3.01(e) and (d) any U.S. federal withholding Taxes imposed pursuant to FATCA.                “Existing Credit Agreement” has the meaning assigned to such term in the recitals to this Agreement.                “Existing Letters of Credit” means the letters of credit described by date of issuance, letter of credit  number, undrawn amount, name of beneficiary and date of expiry on Schedule 1.01(b).                “FATCA” means Sections 1471 through 1474 of the Internal Revenue Code, as of the date of this  Agreement (or any amended or successor version that is substantively comparable and not materially more  onerous to comply with) and any current or future regulations or official interpretations thereof and any  agreements entered into pursuant to Section 1471(b)(1) of the Internal Revenue 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 the purposes of this Agreement.                “Fee  Letter”  means  that  certain  letter  agreement,  dated  December  27,  2017, among  the  Parent  Borrower, BofA Securities (as successor in interest to Merrill Lynch, Pierce, Fenner & Smith Incorporated)  and Bank of America.                 “Fees” means the Commitment Fees, the Letter of Credit Fees and any other fees payable by a Loan  Party pursuant to a fee agreement entered into with the Administrative Agent, any Arranger or any Lender.           “First Amendment Effective Date” means August 26, 2019.                 “First  Tier  Excluded  Domestic  Subsidiary”  means  each  Excluded  Domestic  Subsidiary  that  is  owned directly by any Domestic Loan Party.                  “First  Tier  Foreign  Subsidiary”  means  each  Foreign  Subsidiary  that  is  owned  directly  by  any  Domestic Loan Party.                  “Foreign  Borrower”  has  the  meaning  assigned  to  such  term  in  the  introductory  paragraph  to  this  Agreement.                  “Foreign Borrower Notice” means the notice substantially in the form of Exhibit 2.16-2 attached  hereto.                  “Foreign Borrower Request and Assumption Agreement” means the notice substantially in the form  of Exhibit 2.16-1 attached hereto.                                               17  CHAR1\1732710v2 

 

         “Foreign Borrower Sublimit” means an amount equal to the lesser of the Aggregate Revolving  Commitments and $300,000,000.  The Foreign Borrower Sublimit is part of, and not in addition to, the  Aggregate Revolving Commitments.           “Foreign Lender” means (a) if the applicable Borrower is a U.S. Person, a Lender that is not a U.S.  Person, and (b) if the applicable Borrower is not a U.S. Person, a Lender that is resident or organized under  the Laws of a jurisdiction other than that in which the applicable Borrower is resident for tax purposes.  For  purposes  of  this  definition,  the  United States,  each  State  thereof  and  the  District  of  Columbia  shall  be  deemed to constitute a single jurisdiction.                  “Foreign  Obligor”  means  each  Foreign  Borrower  and  each  other  Loan  Party  that  is  a  Foreign  Subsidiary.                  “Foreign Pension Plan” means any plan, fund (including, without limitation, any superannuation  fund) or other similar program established or maintained outside the United States by the Parent Borrower  or any one or more of its Subsidiaries primarily for the benefit of employees of the Parent Borrower or such  Subsidiaries residing outside the United States, which plan, fund or other similar program provides, or  results in, retirement income, a deferral of income in contemplation of retirement or payments to be made  upon termination of employment, and which plan is not subject to ERISA.                  “Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.                “FRB” means the Board of Governors of the Federal Reserve System of the United States.                “Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect to the L/C  Issuer, such Defaulting Lender’s Applicable Percentage of the outstanding L/C Obligations other than L/C  Obligations as to which such Defaulting Lender’s participation obligation has been reallocated to other  Lenders or Cash Collateralized in accordance with the terms hereof, and (b) with respect to the Swing Line  Lender, such Defaulting Lender’s Applicable Percentage of Swing Line Loans other than Swing Line Loans  as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders in  accordance with the terms hereof.                  “Fund” means any Person (other than a natural person) that is (or will be) engaged in making,  purchasing, holding  or  otherwise  investing  in  commercial  loans and  similar  extensions  of  credit  in  the  ordinary course of its activities.                  “GAAP” means generally accepted accounting principles in the United States set forth from time  to time 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  agencies  with  similar  functions  of  comparable  stature  and  authority  within  the  accounting  profession) including, without limitation, the FASB Accounting Standards Codification, that are applicable  to the circumstances as of the date of determination, consistently applied and subject to Section 1.03.                “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).                  “GSA Transaction” means any transaction entered into in the ordinary course of business of the  Parent Borrower or any of its Subsidiaries, pursuant to which the Parent Borrower or such Subsidiary sells,                                             18  CHAR1\1732710v2 

 

   transfers or otherwise disposes of, in favor of a third party, one or more contracts entered into in the ordinary  course of business of the Parent Borrower or such Subsidiary with the United States government, or any  state  or  local  government,  for  the  lease  of,  or  deferred  payment  for,  the  Parent  Borrower’s  or  such  Subsidiary’s inventory; provided, however, that, (a) any such transaction which, when aggregated with all  GSA Transactions consummated during the same fiscal year, involves a sale price or similar consideration  in  excess  of  $5,000,000  shall  require  the  Administrative  Agent’s  approval   (such  approval  not  to  be  unreasonably withheld) in order to constitute a “GSA Transaction” under this Agreement, and (b) if the  Parent Borrower or any of its Subsidiaries exceed the threshold described in the preceding clause (a) in any  fiscal year, then any modification to any such transaction during such fiscal year that (i) changes the nature  or character of such transaction or (ii) contains any material increase in the burden of the Parent Borrower  or its Subsidiaries under such transaction shall require the Administrative Agent’s approval (such approval  not to be unreasonably withheld) in order for such modified transaction to continue to constitute a “GSA  Transaction” under this Agreement.                  “Guarantee” means, as to any Person, (a) any obligation, contingent or otherwise, of such Person  guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation payable  or performable by another Person (the “primary obligor”) in any manner, whether directly or indirectly, and  including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply  funds  for  the  purchase  or  payment  of)  such  Indebtedness  or  other  obligation,  (ii)  to  purchase  or  lease  property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or  other obligation of the payment or performance of such Indebtedness or other obligation, (iii) to maintain  working capital, equity capital or any other financial statement condition or liquidity or level of income or  cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other  obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of  such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee  against loss in respect thereof (in whole or in part), or (b) any Lien on any assets of such Person securing  any  Indebtedness  or  other  obligation  of  any  other  Person,  whether  or  not  such  Indebtedness  or  other  obligation  is  assumed  by  such  Person  (or  any  right,  contingent or  otherwise,  of  any  holder  of  such  Indebtedness to obtain any such Lien).  The amount of any Guarantee shall be deemed to be an amount  equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect  of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated  liability in respect thereof as determined by the guaranteeing Person in good faith.  The term “Guarantee”  as a verb has a corresponding meaning.                  “Guarantor Joinder Agreement” means a joinder agreement substantially in the form of Exhibit 7.09  executed and delivered by a Domestic Subsidiary in accordance with the provisions of Section 7.09.                “Guarantors” means (a) each Subsidiary of the Parent Borrower identified as a “Guarantor” on the  signature pages hereto and each other Person that joins as a Guarantor pursuant to Section 7.09, together with  their successors and permitted assigns, (b) with respect to obligations under any Swap Contract or Treasury  Management Agreement between any Qualifying Counterparty and any Loan Party or any Subsidiary, the  Parent Borrower, (c) with respect to any Swap Obligation of a Specified Loan Party (determined before  giving effect to Sections 4.01 and 4.08) under the Guaranty, the Parent Borrower, (d) with respect to the  Obligations of all other Loan Parties, the Parent Borrower (e) with respect to the Obligations of any Foreign  Obligor, each other Foreign Obligor, (f) with respect to obligations under any Swap Contract or Treasury  Management Agreement between any Qualifying Counterparty and any Foreign Obligor or any Foreign  Subsidiary, each Foreign Obligor and (g) the successors and permitted assigns of the foregoing.                  “Guaranty” means the Guaranty made by the Guarantors in favor of the Administrative Agent, the  Lenders, the L/C Issuer and any Qualifying Counterparties pursuant to Article IV.                                                     19  CHAR1\1732710v2 

 

         “Hazardous Materials” means (a) any petroleum products or byproducts and all other hydrocarbons,  coal  ash,  radon  gas,  asbestos,  urea  formaldehyde  foam  insulation,  polychlorinated  biphenyls,  mold,  radioactive materials, chlorofluorocarbons and all other ozone-depleting substances and (b) any chemical,  material, substance or waste of any kind that is prohibited or regulated as hazardous by or pursuant to, or  that could give rise to liability under, any Environmental Law.                  “Honor Date” has the meaning set forth in Section 2.03(c)(i).           “Immaterial Domestic Subsidiary” means any Domestic Subsidiary of the Parent Borrower that (a)  for the period of four (4) consecutive fiscal quarters  most recently ended contributed less than (i) five  percent (5.0%) of Consolidated EBITDA individually or (ii) ten percent (10.0%) of Consolidated EBITDA  in the aggregate when taken together with all other wholly-owned Domestic Subsidiaries of the Parent  Borrower that are not Guarantors hereunder, and (b) individually holds tangible assets with an aggregate  fair market value of less than (i) five percent (5.0%) of the aggregate fair market value of the total tangible  assets of the Parent Borrower and its Subsidiaries on a consolidated basis or (ii) ten percent (10.0%) of the  aggregate fair market value of the total tangible assets of the Parent Borrower and its Subsidiaries on a  consolidated basis when taken together with all other wholly-owned Domestic Subsidiaries of the Parent  Borrower that are not Guarantors hereunder.                  “Immaterial Foreign Subsidiary” means any Foreign Subsidiary of the Parent Borrower that, when  taken together with all other Foreign Subsidiaries of the Parent Borrower that are not Guarantors hereunder,  (a) for the period of four (4) consecutive fiscal quarters most recently ended contributed less than ten percent  (10.0%) of Consolidated EBITDA and (b) holds tangible assets with an aggregate fair market value of less  than  ten  percent  (10.0%)  of  the  aggregate  fair  market  value  of the  total  tangible  assets  of  the  Parent  Borrower and its Subsidiaries on a consolidated basis.                  “Incremental Funds Certain Provision” has the meaning specified in Section 2.01(d).                 “Incremental Term Loan” has the meaning specified in Section 2.01(d).                “Incremental Term Loan Commitment” means, as to each Lender, its obligation to make a portion  of any given Incremental Term Loan to the Borrowers pursuant to Section 2.01(d).                “Incremental Term Note” has the meaning specified in Section 2.11(a)(v).           “Indebtedness” of any person means, without duplication, (a) all obligations of such person for  borrowed  money,  (b)  all  obligations  of  such  person  evidenced  by  bonds,  debentures,  notes  or  similar  instruments, (c) all obligations of such person under conditional sale or other title retention agreements  relating to property or assets purchased by such person, (d) all obligations of such person issued or assumed  as  the  deferred  purchase  price  of  property  or  services  (excluding  trade  accounts  payable  and  accrued  obligations incurred in the ordinary course of business), (e) all Indebtedness of others secured by (or for  which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any  Lien on property owned or acquired by such person, whether or not the obligations secured thereby have  been assumed (it being understood that, unless such person shall have assumed such obligations, the amount  of  such  Indebtedness  shall  be  the  lesser  of  (x)  the  fair  market  value  of  the  property  securing  such  Indebtedness and (y) the stated principal amount of such Indebtedness), (f) all Guarantees by such person  of Indebtedness of others, (g) all Capital Lease Obligations and Synthetic Lease Obligations of such person,  (h) all outstanding reimbursement obligations of such person as an account party in respect of letters of  credit, (i) all obligations of such person in respect of bankers’ acceptances, (j) all obligations of such person  under or in respect of Swap Contracts and (k) the liquidation value of all redeemable preferred Equity  Interests of such person, to the extent mandatorily redeemable in cash (other than as a result of a change of                                             20  CHAR1\1732710v2 

 

   control if the documentation regarding such preferred Equity Interests provides for no payment unless, prior  to any such payment, all Loans and other Obligations under this Agreement and the other Loan Documents  are  paid  in  full  in  cash  or  the  Lenders  consent  to  such  payment)  on  or  prior  to  the  Maturity  Date  (“Disqualified Preferred Stock”). For purposes of determining the amount of Indebtedness of any person  under clause (j) of the preceding sentence, the amount of the obligations of such person in respect of any  Swap Contract at any time shall be zero prior to the time any counterparty to such Swap Contract shall be  entitled to terminate such Swap Contract and, thereafter, shall be the maximum aggregate amount (giving  effect to any netting agreements) that such person would be required to pay if such Swap Contract were  terminated at such time.  The Indebtedness of any person shall include the Indebtedness of any partnership  in which such person is a general partner only to the extent such person is liable therefor by contract, as a  matter of Law or otherwise, and shall not include any Indebtedness of such partnership that is expressly  non-recourse to such person.  For clarification purposes, the liability of any Borrower or any Guarantor to  make  any  periodic  payments  to  licensors  in  consideration  for  the  license  of  Patents  and  technical  information under license agreements and any amount payable in respect of a settlement of disputes with  respect  to  such  payments  thereunder,  shall  not  constitute  Indebtedness.   Notwithstanding  any  other  provision of this Agreement to the contrary, (i) the term “Indebtedness” shall not be deemed to include (a)  any earn-out obligation until such obligation has been earned and is due, (b) any deferred compensation  arrangements,  (c) any  non  compete  or  consulting obligations  incurred  in  connection  with  Permitted  Acquisitions, (d) “teaming agreements” pursuant to which the Parent Borrower or any Subsidiary agrees  with another supplier of services to provide services (including the sale of inventory) to a third person and  pursuant to such agreement shall be responsible to the third person for the performance of the obligations  of  such  other  supplier,  (e)  warranty  claims,  (f)  product  guarantees,  guarantees  (including  performance  guarantees or bonds) by a person of obligations not constituting Indebtedness of the Parent Borrower or  any Subsidiary, (g) obligations under joint development agreements pursuant to which the Parent Borrower  or any Subsidiary agrees to develop a product, and (h) obligations under any GSA Transaction, and (ii) the  amount of Indebtedness for which recourse is limited either to a specified amount or to an identified asset  of such person shall be deemed to be equal to such specified amount or the fair  market value of such  identified asset, as the case may be.                    “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 the foregoing clause (a), Other Taxes.         “Indemnitees” has the meaning specified in Section 11.04(b).                “Information” has the meaning specified in Section 11.07.           “Intellectual Property” has the meaning assigned to such term in Section 6.07(d).                “Interest Payment Date” means (a) as to any Eurocurrency Rate Loan, the last day of each Interest  Period applicable to such Loan and the Maturity Date; provided, however, that, if any Interest Period for a  Eurocurrency Rate Loan exceeds three (3) months, the respective dates that fall every three (3) months after  the beginning of such Interest Period shall also be Interest Payment Dates; and (b) as to any Base Rate Loan  (including a Swing Line Loan), the last Business Day of each March, June, September and December and  the Maturity Date.                “Interest Period” means, as to each Eurocurrency Rate Loan, the period commencing on the date  such Eurocurrency Rate Loan is disbursed or converted to or continued as a Eurocurrency Rate Loan and  ending on the date one (1), two (2), three (3), six (6) or twelve (12) months thereafter (in each case, subject  to  availability  for  the  interest  rate  applicable  to  the  relevant  currency),  as  selected  by  the  applicable                                             21  CHAR1\1732710v2 

 

   Borrower  in  its  Loan  Notice,  or  such  other  period  that  is  twelve  (12)  months  or  less  requested  by  the  applicable Borrower and consented to by all of the affected Lenders; 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 Eurocurrency Rate        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 Eurocurrency Rate 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;                               (iii)  no Interest Period with respect to any Revolving Loan shall extend beyond the         Maturity Date;                              (iv)   no Interest Period with respect to any Term Loan shall extend beyond the Maturity         Date;                               (v)    no Interest Period with respect to any Incremental Term Loan shall extend beyond         the maturity date of such Incremental Term Loan as set forth in the joinder document(s) and/or         commitment  agreement(s)  executed  by  the  applicable  Borrower  and  the  applicable  Lenders  in         connection therewith; and                              (vi)   with respect to Alternative Currencies for which the Eurocurrency Rate is not an         option, the Borrowers may select published Interest Periods customarily used by the Administrative         Agent for such Alternative Currency.                  “Internal Revenue Code” means the Internal Revenue Code of 1986.                “Investment” means, as to any Person, any direct or indirect acquisition or investment by such Person,  whether by means of (a) the purchase or other acquisition of Equity Interests of another Person, (b) a loan,  advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition of any  other debt or interest in, another Person (including any partnership or joint venture interest in such other Person  and any arrangement pursuant to which the investor guaranties Indebtedness of such other Person), or (c) the  purchase or other acquisition (in one transaction or a series of transactions) of assets of another Person which  constitute all or substantially all of the assets of such Person or of a division, line of business or other business  unit of such Person. For purposes of covenant compliance, the amount of any Investment shall be the amount  actually invested, without adjustment for subsequent increases or decreases in the value of such Investment.                   “Involuntary Disposition” means any loss of, damage to or destruction of, or any condemnation or  other taking for public use of, any property of any Loan Party or any of its Subsidiaries.                  “IRS” means the United States Internal Revenue Service.                “ISP”  means,  with  respect  to  any  Letter  of  Credit,  the  “International  Standby  Practices  1998”  published by the Institute of International Banking Law & Practice, Inc. (or such later version thereof as  may be in effect at the time of issuance).                                                22  CHAR1\1732710v2 

 

         “Issuer Documents” means with respect to any Letter of Credit, the Letter of Credit Application,  and any other document, agreement and instrument entered into by the L/C Issuer and the Parent Borrower  (or any Subsidiary) or in favor of the L/C Issuer and relating to any such Letter of Credit.                  “Knoll Denmark” has the meaning specified in the introductory paragraph hereto.                “Knoll Europe” has the meaning specified in the introductory paragraph hereto.                 “Knoll Overseas” means Knoll Overseas, Inc., a Delaware corporation.                “Laws”  means,  collectively,  all  international,  foreign,  federal,  state  and  local  statutes,  treaties,  rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities,  including the interpretation or administration thereof by any Governmental Authority charged with the  enforcement,  interpretation  or  administration  thereof,  and  all applicable  administrative  orders,  directed  duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority,  in each case whether or not having the force of law.                “L/C Advance” means, with respect to each Revolving Lender, such Revolving Lender’s funding  of its participation in any L/C Borrowing in accordance with its Applicable Percentage.                    “L/C Borrowing” means an extension of credit resulting from a drawing under any Letter of Credit  which has not been reimbursed on the date when made or refinanced as a Borrowing of Revolving Loans.                  “L/C  Credit  Extension”  means,  with  respect  to  any  Letter  of  Credit,  the  issuance  thereof  or  extension of the expiry date thereof, or the increase of the amount thereof.                  “L/C Issuer” means, as to Letters of Credit issued hereunder (including Existing Letters of Credit),  (a) Bank of America, through itself or through one of its designated Affiliates or branch offices, in its  capacity as issuer of Letters of Credit hereunder, together with its successors in such capacity or (b) any  other Revolving Lender (other than a Defaulting Lender) selected by the Parent Borrower (with the prior  written consent of the Administrative Agent, not to be unreasonably withheld) pursuant to Section 2.03(n)  from time to time to issue such Letter of Credit (provided, that, no Revolving Lender shall be required to  become an L/C Issuer pursuant to this clause (b) or continue to act as an L/C Issuer without such Revolving  Lender’s consent; provided, that, if an L/C Issuer other than Bank of America resigns or assigns its rights  under this Agreement, it shall retain all the rights, powers, privileges and duties of an L/C Issuer hereunder  with respect to all of its Letters of Credit outstanding as of the effective date of its resignation as L/C Issuer  and all L/C Obligations with respect thereto until a substitute for such Letters of Credit has been issued or  such other arrangements have been made for a successor L/C Issuer to effectively assume the obligations  of such L/C Issuer with respect to such Letters of Credit), or any successor issuer thereof.  In the event there  is more than one L/C Issuer at any time, references herein and in the other Loan Documents to the “L/C  Issuer” shall be deemed to refer to the L/C Issuer in respect of the applicable Letter of Credit, or to all L/C  Issuers, as the context may require.          “L/C Obligations” means, as at any date of determination, the aggregate amount available to be  drawn under all outstanding Letters of Credit plus the aggregate of all Unreimbursed Amounts, including  all L/C Borrowings.  For purposes of computing the amount available to be drawn under any Letter of  Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.07.  For all  purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but  any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter  of Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn.                                                       23  CHAR1\1732710v2 

 

         “Lenders” means (a) each of the Persons identified as a “Lender” on the signature pages hereto and  each other Person party hereto as a “Lender” holding a Commitment pursuant to a lender joinder agreement,  commitment agreement or other agreement executed by the Parent Borrower, (b) each Additional Lender  and (c) their successors and assigns and, as the context requires, includes the Swing Line Lender.  The term  “Lender” shall include any Designated Lender.                “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 Parent 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.                  “Letter of Credit” means any standby letter of credit issued hereunder by the L/C Issuer and shall  include the Existing Letters of Credit.  Letters of Credit may be issued in Dollars or in an Alternative  Currency.                “Letter of Credit Application” means an application and agreement for the issuance, extension or  amendment of a Letter of Credit in the form from time to time in use by the L/C Issuer.                  “Letter of Credit Expiration Date” means the date which is thirty (30) days prior to the Maturity  Date (or, if such date is not a Business Day, the next preceding Business Day) unless prior to such time the  Borrowers provided Cash Collateral to the Administrative Agent in an amount equal to one hundred five  percent (105%) of the face amount of all Letters of Credit expiring after the thirtieth (30th) day prior to the  Maturity  Date,  in  which  case  the  expiry  date  of  such  Letters  of  Credit  shall  be  no  later  than  the  first  anniversary of the Maturity Date.                  “Letter of Credit Fee” has the meaning specified in Section 2.03(i).                “Letter of Credit Report” means a certificate substantially in the form of Exhibit 2.03(m) or any  other form approved by the Administrative Agent.                  “Letter of Credit Sublimit” means an amount equal to the lesser of (a) the Aggregate Revolving  Commitments and (b) $50,000,000.  The Letter of Credit Sublimit is part of, and not in addition to, the  Aggregate Revolving Commitments.                  “LIBOR” has the meaning specified in the definition of Eurocurrency Rate.                “LIBOR Quoted Currency” means Dollars, Euro and Sterling, in each case as long as there is a  published LIBOR rate with respect thereto.                  “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  Conforming  Changes”  means,  with  respect  to  any  proposed  LIBOR  Successor  Rate,  any  conforming  changes  to  the  definition  of  Base  Rate,  Interest  Period,  timing  and  frequency  of  determining  rates  and  making  payments  of  interest and  other  technical,  administrative  or  operational matters 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                                             24  CHAR1\1732710v2 

 

   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).           “Lien”  means  any  mortgage,  pledge,  hypothecation,  assignment,  deposit  arrangement,  encumbrance,  lien  (statutory  or other),  charge,  or  preference, priority  or  other  security  interest  or  preferential arrangement in the nature of a security interest of any kind or nature whatsoever (including any  conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title  to  real  property,  and  any  financing  lease  having  substantially the  same  economic  effect  as  any  of  the  foregoing).                “Limited Condition Transaction” has the meaning specified in Section 2.01(d).                “Loan” means an extension of credit by a Lender to a Borrower under Article II in the form of a  Revolving Loan, a Swing Line Loan, the U.S. Term Loan, the Multicurrency Term Loan or an Incremental  Term Loan, if any.                  “Loan  Documents”  means  this  Agreement,  each  Note,  each  Issuer  Document,  each  Guarantor  Joinder  Agreement,  each  Foreign Borrower  Request  and  Assumption  Agreement,  any  subordination  agreement or other agreement relating to subordinated Indebtedness permitted hereunder executed by the  Administrative  Agent,  any  agreement  creating  or  perfecting  rights  in  Cash  Collateral  pursuant  to  the  provisions of Section 2.14 of this Agreement, the Collateral Documents and the Fee Letter.           “Loan Notice” means a notice of (a) a Borrowing of Revolving Loans, the U.S. Term Loan, the  Multicurrency Term Loan or any Incremental Term Loan, (b) a conversion of Loans from one Type to the  other, or (c) a continuation of Eurocurrency Rate Loans, in each case pursuant to Section 2.02(b), which  shall  be  substantially  in  the  form  of  Exhibit 2.02  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 applicable Borrower.           “Loan  Parties”  means,  collectively,  the  Parent  Borrower,  each  Foreign  Borrower  and  each  Guarantor.                  “Margin Stock” has the meaning assigned to such term in Regulation U.                “Master Agreement” has the meaning specified in the definition of “Swap Contract.”                 “Material Adverse Effect” means (a) a material adverse change in, or a material adverse effect on,  the business, operations, assets, financial condition or results of operations of the Parent Borrower and the  Subsidiaries, taken as a whole or (b) a material adverse effect upon the legality, validity, binding effect or  enforceability against any Borrower or any other Loan Party under any Loan Document to which it is or  will be a party.                  “Material Indebtedness” means Indebtedness (other than the Loans and Letters of Credit) of any  one  or  more  of  the  Parent  Borrower  and  the  Subsidiaries  in  an  aggregate  principal  amount  exceeding  $25,000,000.                  “Material Subsidiary” means, at any time, any Subsidiary which at such time shall be a “significant  subsidiary” of the Parent Borrower within the meaning of Regulation S-X of the SEC as in effect on the  date  hereof;  provided,  that,  the  Parent  Borrower  agrees  that  the  Parent  Borrower  and  its  Material                                             25  CHAR1\1732710v2 

 

   Subsidiaries shall at all times have assets during the term of this Agreement constituting at least ninety  percent (90%) of the Parent Borrower’s consolidated total assets; provided, further, that, each Subsidiary  which owns any Intellectual Property (other than Intellectual Property with an aggregate fair market value  of less than $5,000,000) shall be deemed to be a Material Subsidiary hereunder.                  “Maturity Date” means August 26, 2024; provided, however, that, in each case, if such date is not  a Business Day, the Maturity Date shall be the next preceding Business Day.                  “Maximum Rate” has the meaning specified in Section 11.09.                “Minimum Collateral Amount” means, at any time, (a) with respect to Cash Collateral consisting  of cash or deposit account balances provided to reduce or eliminate Fronting Exposure during the existence  of a Defaulting Lender, an amount equal to one hundred two percent (102%) of the Fronting Exposure of  the L/C Issuer with respect to Letters of Credit issued and outstanding at such time, (b) with respect to Cash  Collateral consisting of cash or deposit account balances provided in accordance with the provisions of  Section 2.14(a)(i), (a)(ii) or (a)(iii), an amount equal to one hundred two percent (102%) of the Outstanding  Amount of all L/C Obligations, and (c) otherwise, an amount determined by the Administrative Agent and  the L/C Issuer in their sole discretion.                  “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.                “Multicurrency Term Loan” has the meaning specified in Section 2.01(c).                “Multicurrency Term Loan Assumption Agreement” means that certain Foreign Borrower Request  and Assumption Agreement dated as of August 28, 2018 by the Parent Borrower, Knoll Denmark and  Muuto A/S.                   “Multicurrency  Term  Loan  Commitment”  means,  as  to  each  Lender, its  obligation  to  make  its  portion of the Multicurrency Term Loan to Knoll Denmark pursuant to Section 2.01(c), in the principal  amount set forth opposite such Lender’s name on Schedule 2.01. The aggregate principal amount of the  Multicurrency Term Loan Commitments of all of the Lenders as in effect on the Effective Date is EIGHTY- ONE MILLION SEVEN HUNDRED THIRTY-TWO THOUSAND FOUR HUNDRED EIGHT EURO  (EUR 81,732,408).  As of the First Amendment Effective Date, the aggregate outstanding principal amount  of the Multicurrency Term Loan is EUR 76,624,132.50.                  “Multicurrency Term Note” has the meaning specified in Section 2.11(a)(iv).                “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.                “Muuto A/S” means Muuto A/S, a Danish public limited company.                “Muuto Entities” means MIE4 Holding 5 ApS, Muuto Holding ApS and any of their respective  Subsidiaries.                  “Muuto Merger” means the merger of the Muuto Entities into Muuto A/S.                “Net  Cash  Proceeds”  means  the  aggregate  cash  proceeds  received by  any  Loan  Party  or  any  Domestic Subsidiary in respect of any Asset Sale, Involuntary Disposition or Debt Issuance (including any  cash received in respect of any non-cash proceeds, but only as and when received), net of (a) direct costs  incurred in connection therewith (including legal, accounting, consulting and investment banking fees, and  sales commissions, placement fees and net of underwriting discounts), (b) taxes paid or payable as a result                                             26  CHAR1\1732710v2 

 

   thereof, (c) in the case of any Asset Sale or Involuntary Disposition, the amount necessary to retire any  Indebtedness secured by a Permitted Lien on the related property, (d) in the case of any Asset Sale, any  payments to be made by any Loan Party or any Domestic Subsidiary as agreed between such Person and  the  purchaser  of  any  assets  subject  to  such  Asset  Sale,  and  (e)  the  amount  of  any  reasonable  reserves  established by the Parent Borrower and its Subsidiaries in accordance with GAAP (x) associated with the  assets that are the subject of such event and (y) retained by the Parent Borrower or any Subsidiary to fund  contingent liabilities that are directly attributable to such event and that are reasonably estimated to be  payable by the Parent Borrower or any Subsidiary within eighteen (18) months following the date that such  event  occurred;   provided  that any  amount  by  which  such  reserves  are  reduced  for  reasons  other  than  payment of any such contingent liabilities shall be considered “Net Cash Proceeds” on the date of such  reduction.                  “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 11.01 and (b) has been approved by the Required Lenders.                “Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at such  time.                  “Non-Extension Notice Date” has the meaning specified in Section 2.03(b)(iii).                “Non-LIBOR Quoted Currency” means any currency other than a LIBOR Quoted Currency.                “Note” or “Notes” means the Revolving Notes, the Term Notes, the Swing Line Note and/or the  Incremental Term Notes (if any), individually or collectively, as appropriate.                  “Notice of Additional L/C Issuer” means a certificate substantially the form of Exhibit 2.03(n) or  any other form approved by the Administrative Agent.                  “Notice of Loan Prepayment” means a notice of prepayment with respect to a Loan, which shall be  substantially in the form of Exhibit 2.05 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 Loan or Letter of Credit,  whether  direct  or  indirect  (including  those  acquired  by  assumption),  absolute  or  contingent,  due  or  to  become  due,  now  existing  or  hereafter  arising  and  including  interest  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. The foregoing shall also include, unless the parties thereto agree  otherwise, (a) all obligations under any Swap Contract between any Loan Party or any Subsidiary and any  Qualifying Counterparty that is permitted to be incurred pursuant to Section 8.01(d) and (b) all obligations  under any Treasury Management Agreement between any Loan Party or any Subsidiary and any Qualifying  Counterparty; provided, however, that, the “Obligations” of a Loan Party shall exclude (x) any Excluded  Swap Obligations with respect to such Loan Party and (y) Swap Contracts with respect to the securities of  the Parent Borrower or any Subsidiary.                  “OFAC” means the United States Department of Treasury’s Office of Foreign Assets Control.                                                     27  CHAR1\1732710v2 

 

         “QFC”  has  the  meaning  assigned  to  the  term  “qualified  financial  contract”  in,  and  shall  be  interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).                   “QFC Credit Support” has the meaning specified in Section 11.28.                 “Organization Documents” means, (a) with respect to any corporation, the certificate or articles of  incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non- U.S. jurisdiction); (b) with respect to any limited liability company, the certificate or articles of formation  or organization and operating 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.                  “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 Loan  or Loan Document).                  “Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing  or  similar  Taxes  that  arise  from  any  payment  made  under,  from  the  execution,  delivery,  performance,  enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with  respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with  respect to an assignment (other than an assignment made pursuant to Section 3.06).                “Outstanding Amount” means (i) with respect to any Loans on any date, the aggregate outstanding  principal amount thereof after giving effect to any borrowings and prepayments or repayments of any Loans  occurring on such date; and (ii) with respect to any L/C Obligations on any date, the amount of such L/C  Obligations on such date after giving effect to any L/C Credit Extension occurring on such date and any  other changes in the aggregate amount of the L/C Obligations as of such date, including as a result of any  reimbursements by any Borrower of Unreimbursed Amounts.           “Overnight Rate” means, for any day, (a) with respect to any amount denominated in Dollars, the  greater of (i) the Federal Funds Rate and (ii) an overnight rate determined by the Administrative Agent, the  L/C Issuer, or the Swing Line Lender, as the case may be, in accordance with banking industry rules on  interbank compensation, and (b) with respect to any amount denominated in an Alternative Currency, the  rate  of  interest  per  annum  at  which  overnight  deposits  in  such Alternative  Currency,  in  an  amount  approximately equal to the amount with respect to which such rate is being determined, would be offered  for such day by a branch or Affiliate of Bank of America in the applicable offshore interbank market for  such currency to major banks in such interbank market.                  “Parent Borrower” has the meaning specified in the introductory paragraph hereto.                 “Participant” has the meaning specified in Section 11.06(d).                “Participant Register” has the meaning specified in Section 11.06(d).                “Participating Member State” means each state so described in any EMU Legislation.                                                     28  CHAR1\1732710v2 

 

         “Patents” has the meaning assigned to such term in Security Agreement.                 “Patriot Act” has the meaning specified in Section 11.17.                “PBGC” means the Pension Benefit Guaranty Corporation referred to an defined in ERISA or any  successor thereto.                  “Permitted Acquisition” means the Effective Date Acquisition and any other Acquisition that either  has  been  approved  in  writing  by  the  Required  Lenders  or  with  respect  to  which  all  of  the  following  conditions shall have been satisfied:                        (a)    the board of directors (or other comparable governing body) of the Person whose         assets or line of business or Equity Interests are the subject of such Acquisition shall have duly         approved such Acquisition;                        (b)    the property acquired in such Acquisition is used or useful in the same or a related         line of business as the Parent Borrower and its Subsidiaries were engaged in as of the Effective         Date (or any reasonable extensions or expansions thereof);                              (c)    no Default or Event of Default shall have occurred and be continuing or would         result from such Acquisition (except, in the case of an Acquisition subject to the Incremental Funds         Certain Provision, in which case there is no Default or Event of Default immediately before or         immediately  after  giving  effect  to  the  execution  and  delivery  of  the  applicable  Acquisition         Agreement and there is no Specified Event of Default on the date the applicable Acquisition is         consummated); and                              (d)    after giving effect to such Acquisition on a Pro Forma Basis,                                      (i)    at all times prior to the Covenant Trigger Period, the Parent Borrower is               in Pro Forma Compliance with the covenants set forth in Section 8.10; and                                            (ii)   at all times during the Covenant Trigger Period, the Parent Borrower is in               Pro Forma Compliance with the covenants set forth in Section 8.10, and the Consolidated               Total Net Leverage Ratio shall not exceed (A) with respect to any Acquisition during the               period from the Effective Date through and including the date that is one (1) year after the               Effective Date, 5.25 to 1.0, and (B) with respect to any Acquisition thereafter, 5.00 to 1.0;                                     in  each  case,  in  the  case  of  an  Acquisition  subject  to  the  Incremental  Funds  Certain               Provision, the date of determination of compliance with the covenants set forth in Section               8.10  on  a  Pro  Forma  Basis  shall,  at  the  option  of  the  Parent  Borrower,  be  the  date  of               execution  of  such  Acquisition  Agreement,  and  such  determination  shall  be  made  after               giving effect to such Acquisition (and the other transactions to be entered into in connection               therewith (including any incurrence of Indebtedness and the use of proceeds thereof)) on a               Pro Forma Basis.                “Permitted Investments” means:                       (a)    direct  obligations  of,  or  obligations  the  principal  of  and  interest  on  which  are        unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent        such obligations are backed by the full faith and credit of the United States of America) or, in the        case of a Foreign Subsidiary, marketable direct obligations issued by or unconditionally guaranteed                                             29  CHAR1\1732710v2 

 

         by the government of the country of such Foreign Subsidiary or backed by the full faith and credit        of the government of the country of such Foreign Subsidiary, in each case maturing within one (1)        year from the date of acquisition thereof;                              (b)    Investments in commercial paper maturing within one (1) year from the date of        acquisition thereof and having, at such date of acquisition, one of the two highest credit ratings        obtainable from S&P or from Moody’s or carrying an equivalent rating by a nationally recognized        rating agency, if both of the two named rating agencies cease publishing ratings of Investments;                              (c)    Investments  in  certificates  of  deposit,  Eurocurrency  deposits,  overnight  bank         deposits or banker’s acceptances, demand deposits and time deposits maturing within one (1) year         from the date of acquisition thereof issued or guaranteed by or placed with, and money market         deposit accounts issued or offered by, the Administrative Agent or any domestic office of any         Lender or any other commercial bank organized under the Laws of the United States of America         or any State thereof that has a combined capital and surplus and undivided profits of not less than         $500,000,000 or issued by or offered by a bank organized under the Laws of any foreign country         recognized by the United States the long-term debt of which is rated at least “A” or the equivalent         by S&P or “A” or the equivalent thereof by Moody’s having at the date of acquisition thereof         combined capital and surplus of not less than $500,000,000 or the foreign currency equivalent         thereof;                              (d)    fully collateralized repurchase agreements with a term of not more than thirty (30)        days  for  securities  described  in  clause  (a)  above  and  entered  into  with  a  financial  institution        satisfying the criteria of clause (c) above;                              (e)    Investments  in  marketable  direct  obligations  issued  by  any  state  of  the  United        States of America or any political subdivision of any such state or any public instrumentality thereof        maturing  within  one  (1)  year  from  the  date  of  acquisition  thereof  and  having,  at  such  date  of        acquisition, one of the two highest credit ratings obtainable from S&P or from Moody’s;                              (f)    Investments  in  “money  market  funds”  within  the  meaning  of Rule  2a-7  of  the        Investment Company Act of 1940, as amended, substantially all of whose assets are invested in        Investments of the type described in clauses (a) through (e) above;                              (g)    other short-term Investments utilized by Foreign Subsidiaries in accordance with        normal  investment  practices  for  cash  management  in  Investments of  a  type  analogous  to  the        foregoing; and                              (h)    solely  with  respect  to  any  Foreign  Subsidiary,  non-Dollar denominated        (i) certificates of deposit of, bankers acceptances of, or time deposits with, any commercial bank        which is organized and existing under the Laws of the country in which such Foreign Subsidiary        maintains  its  chief  executive  office  and  principal  place  of  business  provided  such  country  is  a        member of the Organization for Economic Cooperation and Development, and whose short-term        commercial paper rating from S&P is at least A-1 or the equivalent thereof or from Moody’s is at        least  P-1  or  the  equivalent  thereof  (any  such  bank  being  an  “Approved  Foreign  Bank”)  and        maturing  within  twelve  (12)  months  of  the  date  of  acquisition  and  (ii)  equivalents  of  demand        deposit accounts which are maintained with an Approved Foreign Bank.                        “Permitted Liens” means, at any time, Liens in respect of property of any Loan Party or any of its  Subsidiaries permitted to exist at such time pursuant to the terms of Section 8.02.                                               30  CHAR1\1732710v2 

 

         “Person”  means any natural person, corporation, limited liability company, trust, joint venture,  association, company, partnership, Governmental Authority or other entity.                  “Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the  provisions of Title IV of ERISA or Section 412 of the Internal Revenue Code or Section 302 of ERISA,  and in respect of which any Borrower or any ERISA Affiliate is (or, if such plan were terminated, would  under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.                  “Platform” has the meaning specified in Section 7.04.                “Pro Forma Basis” means, for purposes of calculating the financial covenants set forth in Section  8.10  (including  for  purposes  of  determining  the  Applicable  Rate),  that  any  Asset  Sale,  Involuntary  Disposition,  Acquisition,  Restricted  Payment,  increase  in  the  Aggregate  Revolving  Commitments  or  incurrence of an Incremental Term Loan pursuant to Section 2.01(d) or incurrence of Indebtedness, or any  other transaction subject to calculation on a “Pro Forma Basis” as indicated herein, shall be deemed to have  occurred as  of the first day of the most recent four (4) fiscal  quarter  period  preceding the date of such  transaction for which the Parent Borrower was required to deliver financial statements pursuant to Section  7.04(a)  or  (b).   In  connection  with  the  foregoing,  (a)  with  respect  to  any  Asset  Sale  or  Involuntary  Disposition, income statement and cash flow statement items (whether positive or negative) attributable to  the property disposed of shall be excluded to the extent relating to any period occurring prior to the date of  such transaction, (b) with respect to any Acquisition, income statement items attributable to the Person or  property acquired shall be included to the extent relating to any period applicable in such calculations to  the extent (i) such items are not otherwise included in such income statement items for the Parent Borrower  and its Subsidiaries in accordance with GAAP or in accordance with any defined terms set forth in Section  1.01 and (ii) such items are supported by financial statements or other information reasonably satisfactory  to  the  Administrative  Agent,  and  (c)  any  Indebtedness  incurred,  assumed  or  discharged  by  the  Parent  Borrower or any Subsidiary (including the Person or property acquired) in connection with such transaction  (i) shall be deemed to have been assumed, incurred or discharged as of the first day of the applicable period  and (ii) if such Indebtedness has a floating or formula rate, shall have an implied rate of interest for the  applicable period for purposes of this definition determined by utilizing the rate which is or would be in  effect  with  respect  to  such  Indebtedness  as  at  the  relevant  date  of  determination.   For  purposes  of  determining  compliance  with  the  covenants  set  forth  in  Section 8.10  (and  the  computations  made  for  purposes of determining the Applicable Rate), all calculations shall be made on a Pro Forma Basis after  giving effect to the Transactions, (subject, in the case of the Transactions, to the limitations contained in  clause (a)(iv) of the definition of Consolidated EBITDA).                “Pro Forma Compliance” means, at any date of determination, that the Parent Borrower shall be in  pro forma compliance with the covenants set forth in Section 8.10 as of the date of such determination or  the last day of the most recent fiscal quarter-end, as the case may be (computed on the basis of (a) balance  sheet amounts as of such date and (b) income statement amounts for the most recently completed period of  four  (4)  consecutive  fiscal  quarters  for  which  financial  statements  shall  have  been  delivered  to  the  Administrative  Agent  and  calculated  on  a  Pro  Forma  Basis  in  respect  of  the  event  giving  rise  to  such  determination).                  “Pro Forma Compliance Certificate” means a certificate of a Responsible Officer of the Parent  Borrower containing reasonably detailed calculations of the financial covenants set forth in Section 8.10 as  of  the  most  recent  fiscal  quarter  end  for  which  the  Parent  Borrower  was  required  to  deliver  financial  statements pursuant to Section 7.04(a) or (b) after giving effect to the applicable transaction on a Pro Forma  Basis.                                                      31  CHAR1\1732710v2 

 

         “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 7.04.                “Qualified  ECP  Guarantor”  means,  at  any  time,  each  Loan  Party  with  total  assets  exceeding  $10,000,000  or  that  qualifies  at  such  time  as  an  “eligible  contract  participant”  under  the  Commodity  Exchange Act and can cause another Person to qualify as an “eligible contract participant” at such time  under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.                  “Qualifying Counterparty” means (a) any Person that was a Lender or an Affiliate of a Lender at  the time the applicable Swap Contract or Treasury Management Agreement was entered into with any Loan  Party or any Subsidiary and (b) any Lender on the Effective Date or Affiliate of such Lender that is party  to a Swap Contract or Treasury Management Agreement with any Loan Party or any Subsidiary in existence  on the Effective Date.                  “Rate Determination Date” means, with respect to any Interest Period, two (2) Business Days prior  to the commencement of such Interest Period (or such other day as is generally treated as the rate fixing  day by market practice in such interbank market, as determined by the Administrative Agent; provided,  that, to the extent such market practice is not administratively feasible for the Administrative Agent, such  other day as otherwise reasonably determined by the Administrative Agent).                   “Recipient” means the Administrative Agent, any Lender, the L/C Issuer or any other recipient of  any payment to be made by or on account of any obligation of any Loan Party hereunder.                “Refinancing Indebtedness” has the meaning specified in Section 8.01(n).                “Register” has the meaning specified in Section 11.06(c).                “Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners,  directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of  such Person and of such Person’s Affiliates.                  “Release”  means  any  release,  spill,  emission,  leaking,  dumping,  injection,  pouring,  deposit,  disposal, discharge, dispersal, leaching or migration into or through the environment or within, under, from  or upon any building, structure, facility or fixture.                  “Release of Collateral Event” means any time that (a) no Default or Event of Default has occurred  and is continuing and (b) the Parent Borrower simultaneously maintains the Requisite Ratings.                  “Released Guarantors” means each of Knoll Overseas and Knoll Middle East, LLC, a Delaware  limited liability company.                  “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.                  “Removal Effective Date” means as provided in Section 10.06(b).                                                     32  CHAR1\1732710v2 

 

         “Request for Credit Extension” means (a) with respect to a Borrowing, conversion or continuation  of Loans, a Loan Notice, (b) with respect to an L/C Credit Extension, a Letter of Credit Application and (c)  with respect to a Swing Line Loan, a Swing Line Loan Notice.                  “Required Lenders” means, at any time, Lenders holding in the aggregate more than fifty percent  (50%) of (a) the unfunded Commitments and the outstanding Loans, L/C Obligations and participations  therein  or  (b) if  the  Commitments  have  been  terminated,  the  outstanding  Loans,  L/C  Obligations  and  participations therein.  The unfunded Commitments of, and the outstanding Loans held or deemed held by,  any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders.                “Required Revolving Lenders” means, at any time, Revolving Lenders holding in the aggregate  more than fifty percent (50%) of (a) the unfunded Aggregate Revolving Commitments, the outstanding  Revolving  Loans  and  participations  in  L/C  Obligations  and  Swing  Line  Loans  or  (b) if  the  Aggregate  Revolving Commitments have been terminated, the outstanding Revolving Loans and participations in L/C  Obligations  and  Swing  Line  Loans.   The  unfunded  Revolving  Commitments  of,  and  the  outstanding  Revolving Loans held or deemed held by, any Defaulting Lender shall be excluded for purposes of making  a determination of Required Revolving Lenders; provided, that, the amount of any participation in any  Swing Line Loan and Unreimbursed Amounts that such Defaulting Lender has failed to fund that have not  been reallocated to and funded by another Lender shall be deemed to be held by the Lender that is the Swing  Line Lender or the L/C Issuer, as the case may be, in making such determination.                  “Requisite Ratings” means (a) a corporate rating on the Parent Borrower’s senior unsecured (non- credit enhanced) debt of at least BBB- from S&P or an equivalent rating from S&P in the event S&P  changes its rating system and (b) a corporate family rating on the Parent Borrower’s senior unsecured (non- credit enhanced) debt of at least Baa3 from Moody’s or an equivalent rating from Moody’s in the event  Moody’s changes its rating system, in each case with a stable or better outlook (or the equivalent thereof).                  “Resignation Effective Date” means as provided in Section 10.06(a).                “Resolution Authority” means an EEA Resolution Authority or, with respect to any UK Financial  Institution, a UK Resolution Authority.                  “Responsible Officer” means (a) for purposes of any Compliance Certificate, the chief financial  officer or treasurer of the Parent Borrower, (b) for all other purposes hereunder, the chief executive officer,  president, chief financial officer, treasurer, any vice president or secretary of a Loan Party or the Director  of Banking and Credit of the Parent Borrower and (c) solely for purposes of notices given pursuant to  Article II, any other officer or employee of the applicable Loan Party so designated by any of the foregoing  officers in a notice to the Administrative Agent or any other officer or employee of the applicable Loan  Party designated in or pursuant to an agreement between the applicable Loan Party and the Administrative  Agent.  Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be  conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action  on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted  on behalf of such Loan Party.  To the extent requested by the Administrative Agent, each Responsible  Officer will provide an incumbency certificate and to the extent requested by the Administrative Agent,  appropriate authorization documentation, in form and substance satisfactory to the Administrative Agent.                  “Restricted  Indebtedness”  means  Indebtedness  of  the  Parent  Borrower  or  any  Subsidiary,  the  payment, prepayment, repurchase or defeasance of which is restricted under Section 8.06.                “Restricted Payment” means any dividend or other distribution (whether in cash, securities or other  property, but excluding any payment in Equity Interests (other than Disqualified Preferred Stock) in the                                             33  CHAR1\1732710v2 

 

   Parent Borrower) with respect to any Equity Interests in the Parent Borrower or any Subsidiary, or any  payment (whether in cash, securities or other property, other than a payment in Equity Interests (other than  Disqualified Preferred Stock) in the Parent Borrower), including any sinking fund or similar deposit, on  account  of  the  purchase,  redemption,  retirement,  acquisition,  cancellation  or  termination  of  any  Equity  Interests in the Parent Borrower or any Subsidiary or any option, warrant or other right to acquire any such  Equity Interests in the Parent Borrower or any Subsidiary.                  “Revaluation Date” means (a) with respect to any Loan, each of the following:  (i) each date of a  Borrowing  of  a  Eurocurrency  Rate  Loan  denominated  in  an  Alternative  Currency,  (ii) each  date  of  a  continuation  of  a  Eurocurrency Rate  Loan  denominated  in  an  Alternative  Currency  pursuant  to  Section 2.02, and (iii) such additional dates as the Administrative Agent shall determine or the Required  Revolving Lenders shall require; and (b) with respect to any Letter of Credit, each of the following:  (i) each  date  of  issuance  of  a  Letter  of  Credit  denominated  in  an  Alternative  Currency,  (ii) each  date  of  an  amendment of any such Letter of Credit having the effect of increasing the amount thereof (solely with  respect to the increased amount), (iii) each date of any payment by the L/C Issuer under any Letter of Credit  denominated in an Alternative Currency, and (iv) such additional dates as the Administrative Agent or the  L/C Issuer shall determine.                  “Revolving  Commitment”  means,  as  to  each  Revolving  Lender,  its obligation  to  (a)  make  Revolving Loans to a Borrower pursuant to Section 2.01, (b) purchase participations in L/C Obligations  and (c) purchase participations in Swing Line Loans, in an aggregate principal amount at any one time  outstanding not to exceed the amount set forth opposite such Revolving Lender’s name on Schedule 2.01  or in the Assignment and Assumption pursuant to which such Revolving Lender becomes a party hereto,  as applicable, as such amount may be adjusted from time to time in accordance with this Agreement.  The  aggregate amount of the Revolving Commitments in effect on the Effective Date is FOUR HUNDRED  MILLION DOLLARS ($400,000,000).                  “Revolving  Lenders”  means  those  Lenders  with  Revolving  Commitments,  together  with  their  successors and permitted assigns.  The initial Revolving Lenders are identified on the signature pages hereto  and are set out in Schedule 2.01.                “Revolving Loan” has the meaning specified in Section 2.01(a).                “Revolving Note” has the meaning specified in Section 2.11(a)(i).                “S&P” means Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc., and  any successor thereto.           “Same Day Funds” means (a) with respect to disbursements and payments in Dollars, immediately  available funds, and (b) with respect to disbursements and payments in an Alternative Currency, same day  or other funds as may be determined by the Administrative Agent or the L/C Issuer, as the case may be, to  be  customary  in  the  place  of  disbursement  or  payment  for  the  settlement  of  international  banking  transactions in such Alternative Currency.           “Sanction(s)”  means  any  sanctions  administered  or  enforced  by  the  government  of  the  United  States,  including  OFAC,  the  United  Nations  Security  Council,  the  European  Union,  Her  Majesty’s  Treasury, the Canadian Government or other relevant sanctions authority.           “SEC”  means  the  Securities  and  Exchange  Commission,  or  any  Governmental  Authority  succeeding to any of its principal functions.                                               34  CHAR1\1732710v2 

 

         “Secured Party Designation Notice” means a notice substantially in the form of Exhibit 9.02 executed  and delivered by a Qualifying Counterparty.                  “Security Agreement” means the amended and restated pledge and security agreement dated as of  the Effective Date executed in favor of the Administrative Agent, for the benefit of the holders of the  Obligations, by each of the Loan Parties, as amended, modified or reaffirmed from time to time, including  pursuant to any reaffirmation agreement.                  “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.                “Special Notice Currency” means at any time an Alternative Currency, other than the currency of  a country that is a member of the Organization for Economic Cooperation and Development at such time  located in North America or Europe.                  “Specified Event of Default” means an Event of Default arising under Section 9.01(b), (c), (g) or  (h).                “Specified Loan Party” has the meaning specified in Section 4.08.                “Specified Representations” means the representations of the Loan Parties contained in Section 6.01,  6.02(a), 6.02(b)(i), 6.03, 6.04, 6.09(a) (insofar as it relates to the execution, delivery and performance of  the Loan Documents), 6.11, 6.12, 6.13, 6.19, 6.22, 6.23, 6.24 and 6.28.                “Spot Rate” for a currency means the rate determined by the Administrative Agent or the L/C  Issuer, as applicable, to be the rate quoted by the Person acting in such capacity as the spot rate for the  purchase by such Person of such currency with another currency through its principal foreign exchange  trading office at approximately 11:00 a.m. on the date two (2) Business Days prior to the date as of which  the foreign exchange computation is made; provided, that, the Administrative Agent or the L/C Issuer may  obtain such spot rate from another financial institution designated by the Administrative Agent or the L/C  Issuer if the Person acting in such capacity does not have as of the date of determination a spot buying rate  for any such currency; and provided further that the L/C Issuer may use such spot rate quoted on the date  as of which the foreign exchange computation is made in the case of any Letter of Credit denominated in  an Alternative Currency.                  “Sterling” and “£” mean the lawful currency of the United Kingdom.                “Subordinating Loan Party” has the meaning specified in Section 11.26.                “Subsidiary”  of  a  Person  means  (a)  a  corporation,  partnership, joint  venture,  limited  liability  company or other business entity of which a majority of the shares of Voting Stock is at the time beneficially  owned, or the management of which is otherwise controlled, directly, or indirectly through one or more  intermediaries,  or  both,  by  such  Person  or  (b)  in  respect  of  a Borrower  or  Guarantor  incorporated  in  Denmark, a subsidiary (in Danish: dattervirksomhed) within the meaning of section 5(3) of Consolidated  Act No. 1089 of 14 September 2015 on public and private limited liability companies as amended and  supplemented from time to time (the “Danish Companies Act (2015)”).  Unless otherwise specified, all                                             35  CHAR1\1732710v2 

 

   references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the  Parent Borrower.                “Supported QFC” has the meaning specified in Section 11.28.                 “Swap  Contract”  means  (a)  any  and  all  rate  swap  transactions,  basis  swaps,  credit  derivative  transactions,  forward  rate  transactions,  commodity  swaps,  commodity  options,  forward  commodity  contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or  forward  bond  or  forward  bond price  or  forward  bond  index  transactions,  interest  rate  options,  forward  foreign  exchange  transactions,  cap  transactions,  floor  transactions,  collar  transactions,  currency  swap  transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar  transactions or any combination of any of the foregoing (including any options to enter into any of the  foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b)  any and all transactions of any kind, and the related confirmations, which are subject to the terms and  conditions of, or governed by, any form of master agreement published by the International Swaps and  Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master  agreement  (any  such  master  agreement,  together  with  any  related  schedules,  a  “Master  Agreement”),  including any such obligations or liabilities under any Master Agreement.                  “Swap Obligation” means with respect to any Guarantor any obligation to pay or perform under  any agreement, contract or transaction that constitutes a “swap” within the meaning of Section 1a(47) of  the Commodity Exchange Act.                   “SWIFT” means as provided in Section 2.03(f).           “Swing  Line  Lender”  means  Bank  of  America,  through  itself  or  through  one  of  its  designated  Affiliates or branch offices, in its capacity as provider of Swing Line Loans, or any successor swing line  lender hereunder.                  “Swing Line Loan” has the meaning specified in Section 2.04(a).                “Swing Line Loan Notice” means a notice of a Borrowing of Swing Line Loans pursuant to Section  2.04(b), which shall be substantially in the form of Exhibit 2.04 or such other form as 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 Parent Borrower.                  “Swing Line Note” has the meaning specified in Section 2.11(a)(iii).                “Swing  Line  Sublimit”  means  an  amount  equal  to  the  lesser  of  (a)  $25,000,000 and  (b)  the  Aggregate  Revolving  Commitments.   The  Swing  Line  Sublimit  is  part  of,  and  not  in  addition  to,  the  Aggregate Revolving Commitments.                  “Synthetic Lease” means, as to any Person, any lease (including leases that may be terminated by  the lessee at any time) of any property (whether real, personal or mixed) (a) that is accounted for as an  operating lease under GAAP and (b) in respect of which the lessee retains or obtains ownership of the  property so leased for U.S. federal income tax purposes, other than any such lease under which such person  is the lessor.                  “Synthetic Lease Obligations” means, as to any Person, an amount equal to the sum of (a) the  obligations of such Person to pay rent or other amounts under any Synthetic Lease which are attributable                                             36  CHAR1\1732710v2 

 

   to principal and, without duplication, (b) the amount of any purchase price payment under any Synthetic  Lease assuming the lessee exercises the option to purchase the leased property at the end of the lease term.                “Synthetic Purchase Agreement” means any swap, derivative or other agreement or combination  of agreements pursuant to which the Parent Borrower or any Subsidiary is or may become obligated to  make (a) any payment in connection with a purchase by any third party from a person other than the Parent  Borrower or any Subsidiary of any Equity Interest or Restricted Indebtedness of the Parent Borrower or a  Subsidiary or (b) any payment (other than on account of a permitted purchase by it of any Equity Interest  or Restricted Indebtedness) the amount of which is determined by reference to the price or value at any  time of any Equity Interest or Restricted Indebtedness of the Parent Borrower or a Subsidiary; provided,  that, no phantom stock or similar plan providing for payments only to current or former directors, officers  or employees of the Parent Borrower or the Subsidiaries (or to their heirs or estates) shall be deemed to be  a Synthetic Purchase Agreement.                  “TARGET  Day”  means  any  day  on  which  the  Trans-European  Automated  Real-time  Gross  Settlement  Express  Transfer  (TARGET)  payment  system  (or,  if  such  payment  system  ceases  to  be  operative, such other payment system (if any) determined by the Administrative Agent to be a suitable  replacement) is open for the settlement of payments in Euro.                “Taxes”  means  all  present  or  future  taxes,  levies,  imposts,  duties,  deductions,  withholdings  (including  backup  withholding),  assessments,  fees  or  other  charges  imposed  by  any  Governmental  Authority, including any interest, additions to tax or penalties applicable thereto.                  “Term Loan Commitment” means, as to each Lender, any U.S. Term Loan Commitment and/or  Multicurrency Term Loan Commitment of such Lender.                  “Term Loans” means, collectively, the U.S. Term Loan and the Multicurrency Term Loan.                “Term Notes” means the U.S. Term Notes and/or the Multicurrency Term Notes, individually or  collectively, as appropriate                  “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.                “Total Revolving Outstandings” means the aggregate Outstanding Amount of all Revolving Loans,  all Swing Line Loans and all L/C Obligations.                  “Trademarks” has the meaning assigned to such term in the Security Agreement.                “Transactions” means, collectively, (a) the execution, delivery and performance by the Loan Parties  of the Loan Documents to which they are a party and, in the case of the applicable Borrowers, the making  of the initial Borrowings hereunder, (b) the repayment of all amounts then due and owing under the Existing  Credit Agreement, (c) the Effective Date Acquisition and the subsequent merger of the Muuto Entities and  (d) the payment of related fees and expenses.                  “Treasury Management Agreement” means any agreement governing the provision of treasury or  cash management services, including deposit accounts, overnight draft, credit or debit card, funds transfer,  automated clearinghouse, zero balance accounts, returned check concentration, controlled disbursement,                                             37  CHAR1\1732710v2 

 

   lockbox,  account  reconciliation  and  reporting  and  trade  finance  services  and  other  cash  management  services.                 “Type” means, with respect to any Loan, its character as a Base Rate Loan or a Eurocurrency Rate  Loan.                  “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 subject to IFPRU 11.6 of the FCA Handbook (as amended from time to time)  promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions  and investment firms, and certain affiliates of such credit institutions or investment firms.                  “UK Resolution Authority” means the Bank of England or any other public administrative authority  having responsibility for the resolution of any UK Financial Institution.                  “United States” and “U.S.” mean the United States of America.                “Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i).                “U.S. Person” means any Person that is a “United States Person” as defined in Section 7701(a)(30)  of the Internal Revenue Code.                  “U.S. Special Resolution Regimes” has the meaning specified in Section 11.28.          “U.S. Tax Compliance Certificate” has the meaning specified in Section 3.01(e)(ii)(B)(III).         “U.S. Term Loan” has the meaning specified in Section 2.01(b).                “U.S. Term Loan Commitment” means, as to each Lender, its obligation to make its portion of the  U.S.  Term  Loan  to  the  Parent  Borrower  pursuant  to  Section  2.01(b),  in  the  principal  amount  set  forth  opposite such Lender’s name on Schedule 2.01. The aggregate principal amount of the U.S. Term Loan  Commitments of all of the Lenders as in effect on the Effective Date is TWO HUNDRED FIFTY MILLION  DOLLARS ($250,000,000).  As of the First Amendment Effective Date, the aggregate outstanding principal  amount of the U.S. Term Loan is $234,375,000.          “U.S. Term Note” has the meaning specified in Section 2.11(a)(iii).                “Voting Stock” means, with respect to any Person, Equity Interests issued by such Person the holders  of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons  performing similar functions) of such Person, even though the right so to vote has been suspended by the  happening of such a contingency.           “wholly owned Subsidiary” of any person means a subsidiary of such person of which securities  (except for directors’ qualifying shares and other de minimis ownership interests required to be owned under  foreign Law by local residents) or other ownership interests representing one hundred percent (100%) of  the Equity Interests are, at the time any determination is being made, owned, controlled or held by such  person or one or more wholly owned Subsidiaries of such person or by such person and one or more wholly  owned Subsidiaries of such person.                                                38  CHAR1\1732710v2 

 

         “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete or partial  withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of  ERISA.                  “Write-Down and Conversion Powers” means, (a) with respect to any EEA Resolution Authority,  the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail- In Legislation for the applicable EEA Member Country, which write-down and conversion powers are  described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers  of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change  the form of a liability of any UK Financial Institution or any contract or instrument under which that liability  arises, to convert all or part of that liability into shares, securities or obligations of that person or any other  person, to provide that any such contract or instrument is to have effect as if a right had been exercised  under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In  Legislation that are related to or ancillary to any of those powers.           1.02  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,” “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, Exhibits and Schedules shall be construed to         refer to Articles and Sections of, and 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 or         regulation shall, unless otherwise specified, refer to such Law 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 real and personal property and 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)    In respect of a Dutch Loan Party, a reference in this Agreement to:                                     (i)    the “suspension of payments” or a “moratorium” includes surséance van               betaling and emergency regulations (noodregeling);                                                                   39  CHAR1\1732710v2 

 

                       (ii)   an “conservator” includes a bewindvoerder;                                            (iii)  a “receiver” or “trustee” includes a curator; and                                            (iv)  “a winding up”, “administration”, “liquidation” or “dissolution” includes               failliet verklaard  and ontbonden.                              (d)    In this Agreement, where it relates to a Borrower or a Guarantor incorporated in        Denmark, a reference to (i) a “winding-up”, “liquidation” or “dissolution” includes konkurs and        rekonstruktion,  (ii)  a  “receiver”,  “administrator”,  “trustee”,  “custodian”,  “sequestrator”  and        “conservator”  includes  a kurator  and  a rekonstruktør,  (iii)  “gross negligence”  means  grov         uagtsomhed, (iv) “wilful misconduct” means forsæt and (v) “merger” includes fusion.                              (e)    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.                              (f)    Any  reference  herein  to  a  merger,  transfer,  consolidation, amalgamation,        assignment, sale, disposition or transfer, or similar term, shall be deemed to apply to a division of        or by a limited liability company, or an allocation of assets to a series of a limited liability company        (or the unwinding of such a division or allocation), as if it were a merger, transfer, consolidation,        amalgamation, assignment, sale, disposition or transfer, or similar term, as applicable, to, of or with        a separate Person. Any division of a limited liability company shall constitute a separate Person        hereunder (and each division of any limited liability company that is a Subsidiary, joint venture or        any other like term shall also constitute such a Person or entity).    1.03   Accounting Terms.           (a)   Generally.  Except as otherwise specifically prescribed herein, 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;  provided, however, that, calculations of Synthetic Lease Obligations shall be made by the Parent Borrower  in  accordance  with  accepted  financial  practice  and  consistent  with  the  terms  of  such  Synthetic  Lease  Obligations and in the event any accounting term is not defined by GAAP, it shall have the definition  mutually  agreed  upon  by  the  Parent  Borrower  and  the  Administrative  Agent.   Notwithstanding  the  foregoing, for purposes of determining compliance with any covenant (including the computation of any  financial covenant) or other calculation contained herein, Indebtedness (including without limitation the  principal amount of any bonds, notes, loan agreements or convertible or hybrid equity issuances) of the  Parent 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 Parent Borrower or the  Required Lenders shall so request, the Administrative Agent, the Lenders and the Parent 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,  (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change  therein and (ii) the Parent Borrower shall provide to the Administrative Agent and the Lenders financial                                             40  CHAR1\1732710v2 

 

   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 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)    Calculations.  Notwithstanding the above, the parties hereto acknowledge and agree that  all calculations of the financial covenants set forth in Section 8.10 and the Consolidated Total Leverage  Ratio (for purposes of determining the Applicable Rate) shall be made on a Pro Forma Basis.           1.04   Rounding.           Any financial ratios required to be maintained by the Parent 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).          1.05  Exchange Rates; Currency Equivalents.                  (a)    The Administrative Agent or the L/C Issuer, as applicable, shall determine the Spot Rates  as of each Revaluation Date to be used for calculating Dollar Equivalent amounts of Credit Extensions and  Outstanding Amounts denominated an Alternative Currency.  Such Spot Rates shall become effective as of  such  Revaluation  Date  and  shall  be  the  Spot  Rates  employed  in  converting  any  amounts  between  the  applicable currencies until the next Revaluation Date to occur.  Except for purposes of financial statements  delivered by Loan Parties hereunder or calculating financial covenants hereunder or except as otherwise  provided  herein,  the  applicable  amount  of  any  currency  (other  than  Dollars)  for  purposes  of  the  Loan  Documents shall be such Dollar Equivalent amount as so determined by the Administrative Agent or the  L/C Issuer, as applicable.  The maximum amount of Indebtedness, Investments and other threshold amounts  that the Parent Borrower and the Subsidiaries  may incur under Article VIII  shall not be deemed to be  exceeded, with respect to any outstanding Indebtedness, Investments and other threshold amounts solely as  a result of fluctuations in the exchange rate of currencies.  When calculating capacity for the incurrence of  additional  Indebtedness,  Investments  and  other  threshold  amounts  by  the  Parent  Borrower  and  any  Subsidiary, the exchange rate of currencies shall be measured as of the date of such calculation.                  (b)   Wherever in this Agreement in connection with a Borrowing, conversion, continuation or  prepayment of a Eurocurrency Rate Loan or the issuance, amendment or extension of a Letter of Credit, an  amount, such as a required minimum or multiple amount, is expressed in Dollars, but such Borrowing,  Eurocurrency Rate Loan or Letter of Credit is denominated in an Alternative Currency, such amount shall  be  the  Alternative  Currency  Equivalent  of  such  Dollar  amount  (rounded  to  the  nearest  unit  of  such  Alternative Currency, with 0.5 of a unit being rounded upward), as determined by the Administrative Agent  or the L/C Issuer, as the case may be.           1.06  Times of Day.           Unless otherwise specified, all references herein to times of day shall be references to Eastern time  (daylight or standard, as applicable).                                                41  CHAR1\1732710v2 

 

   1.07  Letter of Credit Amounts.           Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to  be the stated amount of such Letter of Credit in effect at such time; provided, however, that, with respect  to any Letter of Credit that, by its terms or the terms of any Issuer Document related thereto, provides for  one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be  deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases,  whether or not such maximum stated amount is in effect at such time.            1.08  Additional Alternative Currencies.                (a)    The Parent Borrower may from time to time request that Eurocurrency Rate Loans be made  and/or Letters of Credit be issued in a currency other than those specifically listed in the definition of  “Alternative Currency”; provided, that, (i) such requested currency is a lawful currency (other than Dollars)  that is readily available and freely transferable and convertible into Dollars and (ii) such requested currency  shall only be a LIBOR Quoted Currency to the extent that there is published LIBOR rate for such currency  (each such currency, an “Eligible Currency”).  In the case of any such request with respect to the making  of Eurocurrency Rate Loans, such request shall be subject to the approval of the Administrative Agent and  the Revolving Lenders; and in the case of any such request with respect to the issuance of Letters of Credit,  such request shall be subject to the approval of the Administrative Agent and the L/C Issuer.  If, after the  designation by the Lenders of any currency as an Alternative Currency, any change in currency controls or  exchange  regulations  or  any  change  in  the  national  or  international  financial,  political  or  economic  conditions are imposed in the country in which such currency is issued, result in, in the reasonable opinion  of the Administrative Agent and the Required Lenders (in the case of any Loans to be denominated in an  Alternative  Currency)  or  the  L/C  Issuer  (in  the  case  of  any  Letter  of  Credit  to  be  denominated  in  an  Alternative  Currency),  (A)  such  currency  no  longer  being  readily  available,  freely  transferable  and  convertible  into  Dollars,  (B)  a Dollar  Equivalent  is  no  longer readily  calculable  with  respect  to  such  currency, (C) providing such currency is impracticable for the Lenders or (D) no longer a currency in which  the  Required  Lenders  are  willing  to  make  such  Credit  Extensions  (each  of  (A),  (B),  (C),  and  (D)  a  “Disqualifying Event”), then the Administrative Agent shall promptly notify the Lenders and the Parent  Borrower, and such country’s currency shall no longer be an Alternative Currency until such time as the  Disqualifying Event(s) no longer exist. Within ten (10) Business Days after receipt of such notice from the  Administrative Agent, the Borrowers shall repay all Loans in such currency to which the Disqualifying  Event applies or convert such Loans into the Dollar Equivalent of Loans in Dollars, subject to the other  terms contained herein.                  (b)   Any such request shall be made to the Administrative Agent not later than 11:00 a.m.,  twenty (20) Business Days (or such shorter notice period as the Administrative Agent may agree in its sole  discretion) prior to the date of the desired Credit Extension (or such other time or date as may be agreed by  the Administrative Agent and, in the case of any such request pertaining to Letters of Credit, the L/C Issuer,  in its or their sole discretion).  In the case of any such request pertaining to Eurocurrency Rate Loans, the  Administrative Agent shall promptly notify each Revolving Lender thereof; and in the case of any such  request  pertaining  to  Letters  of  Credit,  the  Administrative  Agent  shall  promptly  notify  the  L/C  Issuer  thereof.  Each Revolving Lender (in the case of any such request pertaining to Eurocurrency Rate Loans)  or the L/C Issuer (in the case of a request pertaining to Letters of Credit) shall notify the Administrative  Agent, not later than 11:00 a.m., ten (10) Business Days after receipt of such request whether it consents,  in its sole discretion, to the making of Eurocurrency Rate Loans or the issuance of Letters of Credit, as the  case may be, in such requested currency.          (c)    Any failure by a Revolving Lender or the L/C Issuer, as the case may be, to respond to  such request within the time period specified in the preceding sentence shall be deemed to be a refusal by                                             42  CHAR1\1732710v2 

 

   such Revolving Lender or the L/C Issuer, as the case may be, to permit Eurocurrency Rate Loans to be  made or Letters of Credit to be issued in such requested currency.  If the Administrative Agent and all the  Revolving  Lenders  consent  to  making  Eurocurrency  Rate  Loans  in such  requested  currency,  the  Administrative  Agent  shall  so  notify  the  Parent  Borrower  and  (i)  the  Administrative  Agent  and  such  Lenders may amend the definition of Eurocurrency Rate for any Non-LIBOR Quoted Currency to the extent  necessary to add the applicable Eurocurrency Rate for such currency and (ii) to the extent the definition of  Eurocurrency Rate reflects the appropriate interest rate for such currency or has been amended to reflect  the appropriate rate for such currency, such currency shall thereupon be deemed for all purposes to be a  LIBOR Quoted Currency or a Non-LIBOR Quoted Currency, as applicable, for purposes of any Borrowings  of Eurocurrency Rate Loans.  If the Administrative Agent and the L/C Issuer consent to the issuance of  Letters of Credit in such requested currency, the Administrative Agent shall so notify the Parent Borrower  and (A) the Administrative Agent and the L/C Issuer may amend the definition of Eurocurrency Rate for  any Non-LIBOR Quoted Currency to the extent necessary to add the applicable Eurocurrency Rate for such  currency and (B) to the extent the definition of Eurocurrency Rate reflects the appropriate interest rate for  such currency or has been amended to reflect the appropriate rate for such currency, such currency shall  thereupon be deemed for all purposes to be a LIBOR Quoted Currency or a Non-LIBOR Quoted Currency,  as applicable, for purposes of any Letter of Credit issuances.  If the Administrative Agent shall fail to obtain  consent to any request for an additional currency under this Section 1.08, the Administrative Agent shall  promptly so notify the Parent Borrower.           1.09  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 “Eurocurrency Rate” or with respect to any rate that is an alternative or replacement  for or successor to any of such rate (including any LIBOR Successor Rate) or the effect of any of the  foregoing, or of any LIBOR Successor Rate Conforming Changes.                                          ARTICLE II                                                                   THE COMMITMENTS AND CREDIT EXTENSIONS    2.01  Loans.           (a)   Revolving Loans. Subject to the terms and conditions set forth herein, each Revolving  Lender severally agrees to make loans (each such loan, a “Revolving Loan”) to the Parent Borrower or a  Foreign Borrower in Dollars or in one or more Alternative Currencies from time to time on any Business  Day during the Availability Period in an aggregate amount not to exceed at any time outstanding the amount  of such Revolving Lender’s Revolving Commitment; provided, however, that, after giving effect to any  Borrowing  of  Revolving  Loans,  (i)  the  Total  Revolving  Outstandings  shall  not  exceed  the  aggregate  Revolving Commitments (such aggregate amount, as it may be increased or decreased as provided herein,  the “Aggregate Revolving Commitments”), (ii) the Dollar Equivalent of Total Revolving Outstandings  denominated  in  Alternative  Currencies  shall  not  exceed  the  Alternative  Currency  Sublimit,  (iii)  the  aggregate Outstanding Amount of the Revolving Loans of any Revolving Lender, plus such Revolving  Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations plus such Revolving  Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed such  Revolving Lender’s Revolving Commitment and (iv) the aggregate Outstanding Amount of all Revolving  Loans made to the Foreign Borrowers shall not exceed the Foreign Borrower Sublimit.  Within the limits  of each Revolving Lender’s Revolving Commitment, and subject to the other terms and conditions hereof,  each Borrower may borrow under this Section 2.01(a), prepay under Section 2.05, and reborrow under this                                             43  CHAR1\1732710v2 

 

   Section 2.01(a).  Revolving Loans may be Base Rate Loans or Eurocurrency Rate Loans, or a combination  thereof, as further provided herein.                  (b)   U.S. Term Loan.  Subject to the terms and conditions set forth herein, each Lender severally  agrees to make its portion of a term loan (the “U.S. Term Loan”) to the Parent Borrower in Dollars on the  Effective Date in an amount not to exceed such Lender’s U.S. Term Loan Commitment.  Amounts repaid  on the U.S. Term Loan may not be reborrowed.  The U.S. Term Loan may consist of Base Rate Loans or  Eurocurrency Rate Loans, or a combination thereof, as further provided herein.                  (c)   Multicurrency  Term  Loan.   Subject  to  the  terms  and  conditions  set  forth  herein,  each  Lender  severally  agrees  to  make  its  portion  of  a  term  loan  (the  “Multicurrency  Term  Loan”)  to  Knoll  Denmark in Euro on the Effective Date in an amount not to exceed such Lender’s Multicurrency Term Loan  Commitment.   Amounts  repaid  on  the  Multicurrency  Term  Loan  may not  be  reborrowed.   The  Multicurrency Term Loan shall consist of Eurocurrency Rate Loans, as further provided herein.  As of the  First Amendment Effective, each of Knoll Denmark and Muuto A/S is a Borrower under, and holds a  portion of, the Multicurrency Term Loan (with Muuto A/S having assumed a portion, and having agreed to  assume additional portions in the future, of the Multicurrency Term Loan held by Knoll Denmark pursuant  to the Multicurrency Term Loan Assumption Agreement).                  (d)   Increase in Aggregate Revolving Commitments; Institution of Incremental Term Loans.   The Parent Borrower may, at any time and from time to time, upon not less than ten (10) Business Days’  prior written notice by the Parent Borrower to the Administrative Agent (or such shorter period as may be  agreed by the Administrative Agent in its sole discretion), increase the Aggregate Revolving Commitments  (but not the Letter of Credit Sublimit, the Swing Line Sublimit, the Alternative Currency Sublimit or the  Foreign Borrower Sublimit) or incur one or more term loans (each an “Incremental Term Loan”) with (i)  additional Revolving Commitments from any existing Revolving Lender with a Revolving Commitment or  new  Revolving  Commitments  from  any  other  Person  selected  by  the  Parent  Borrower  and  reasonably  acceptable to the Administrative Agent, the L/C Issuer and the Swing Line Lender or (ii) one or more  Incremental  Term  Loans  from  any existing  Lender  or  from  any  other  Person  selected  by  the  Parent  Borrower and reasonably acceptable to the Administrative Agent by a maximum aggregate amount of up  to (x) the greater of (I) $250,000,000 and (II) ninety percent (90%) of Consolidated EBITDA for the most  recently completed period of four (4) fiscal quarters for which financial statements are available prior to  the requested increase in the Aggregate Revolving Commitments or incurrence of the Incremental Term  Loans (or, in the event such Incremental Term Loan is incurred in connection with a Limited Condition  Transaction,  the  date  of  the  signing  of  the  Acquisition  Agreement  with  respect  thereto)  plus  (y)  the  aggregate amount of (I) all voluntary prepayments of Loans made pursuant to Section 2.05(a) (other than  prepayments  made  with  the  proceeds  of  revolving  Indebtedness)  and  (II)  permanent  reductions  of  the  Aggregate Revolving Commitments made pursuant to Section 2.06(a) as follows:                       (i)    Increase in Aggregate Revolving Commitments.  The Parent Borrower may, upon        written notice to the Administrative Agent as provided above, increase the Aggregate Revolving        Commitments; provided, that:                        (A)    any such increase shall be in a minimum principal amount of $10,000,000               and in integral multiples of $1,000,000 in excess thereof;                                            (B)    no Default or Event of Default shall exist and be continuing at the time of               any such increase;                                                                    44  CHAR1\1732710v2 

 

                       (C)    no existing Lender shall be under any obligation to increase its Revolving               Commitment and any such decision whether to increase its Revolving Commitment shall               be in such Lender’s sole and absolute discretion;                                             (D)    (1)  any  new  Lender  (each,  an  “Additional  Lender”)  shall  join  this               Agreement by executing such joinder documents required by the Administrative Agent               and/or (2) any existing Lender electing to increase its Revolving Commitment shall have               executed a commitment agreement satisfactory to the Administrative Agent; and                                            (E)   as a condition precedent to such increase, the Parent Borrower shall deliver               to the Administrative Agent a certificate of each Loan Party dated as of the date of such               increase (in sufficient copies for each Lender) signed by a Responsible Officer of such               Loan  Party  (1)  certifying  and  attaching  the  resolutions  adopted  by  such  Loan  Party               approving or consenting to such increase, and (2) in the case of each Borrower, certifying               that, before and after giving effect to such increase, (x) the representations and warranties               contained in Article VI and the other Loan Documents are true and correct in all material               respects on and as of the date of such increase, except to the extent that such representations               and warranties specifically refer to an earlier date, in which case they are true and correct               in  all  material  respects  as  of  such  earlier  date  (provided,  that,  any  representation  and               warranty that is qualified by materiality, a Material Adverse Effect or similar language               shall  be  true  and  correct  in  all  respects),  and  except  that  for  purposes  of  this  Section               2.01(d)(i), the representations and warranties contained in Section 6.05(a) and (b) shall be               deemed to refer to the most recent statements furnished pursuant to Sections 7.04(a) and               (b), respectively, and (y) no Default or Event of Default exists.                                              (F)    Schedule  2.01  shall  be  deemed  revised  to  reflect  the  Applicable               Percentages  of  the  Lenders  participating  in  such  increase  as  set  forth  in  the  joinder               document and/or commitment agreement therefor.                       (ii)   Institution of Incremental Term Loan.  The Parent Borrower may, at any time,        upon written notice to the Administrative Agent as provided above, institute an Incremental Term         Loan in Dollars or in one or more Alternative Currencies; provided, that:                        (A)    any  such  institution  of  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;                                            (B)    subject  to  the  Incremental  Funds  Certain  Provision,  if  applicable,  no               Default or Event of Default shall exist and be continuing at the time of any such institution               of such Incremental Term Loan;                                            (C)    no Lender shall be under any obligation to provide a commitment under               such  Incremental  Term  Loan  and  any  such  decision whether  to  provide  a  commitment               under the Incremental Term Loan shall be in such Lender’s sole and absolute discretion;                                             (D)    (1) any Additional Lender shall join this Agreement by executing such               joinder documents required by the Administrative Agent and/or (2) any existing Lender               electing to provide an Incremental Term Loan Commitment shall have executed a joinder               document and/or commitment agreement satisfactory to the Administrative Agent;                                                                    45  CHAR1\1732710v2 

 

                       (E)    as  a  condition  precedent  to  such  Incremental  Term  Loan,  the  Parent               Borrower shall deliver to the Administrative Agent a certificate of each Loan Party dated               as of the date of such Incremental Term Loan (in sufficient copies for each Lender) signed               by a Responsible Officer of such Loan Party (1) certifying and attaching the resolutions               adopted by such Loan Party approving or consenting to such Incremental Term Loan, and               (2) subject to the Incremental Funds Certain Provision below, in the case of each Borrower,               certifying that, before and after giving effect to such Incremental Term Loan, (x) subject               to  the  Incremental  Funds  Certain  Provision,  if  applicable,  the representations  and               warranties contained in Article VI and the other Loan Documents are true and correct in               all material respects on and as of the date of such Incremental Term Loan, except to the               extent that such representations and warranties specifically refer to an earlier date, in which               case they are true and correct in all material respects as of such earlier date (provided, that,               any representation and warranty that is qualified by materiality, a Material Adverse Effect               or similar language shall be true and correct in all respects), and except that for purposes               of this Section 2.01(d)(ii), the representations and warranties contained in Section 6.05(a)               and  (b)  shall  be  deemed  to  refer  to  the  most  recent  statements furnished  pursuant  to               Sections 7.04(a) and (b), respectively, and (y) no Default or Event of Default exists;                                             (F)   The Applicable Rate and maturity date of, and the principal amortization               payments under, such Incremental Term Loan shall be as set forth in the joinder document               and/or  commitment  agreement  therefor;  provided,  that,  (i)  the  maturity  date  for  such               Incremental Term Loan shall be no sooner than the Maturity Date or the maturity date for               any  other  then  outstanding  Incremental  Term  Loan,  (ii)  the  weighted  average  life  to               maturity of such Incremental Term Loan shall not be less than the weighted average life to               maturity of any Term Loan or any other then outstanding Incremental Term Loan and (iii)               in the event that the Applicable Rate for such Incremental Term Loan is more than fifty               basis points (0.50%) greater than the Applicable Rate for the Revolving Loans, the Term               Loans  or  any  then  outstanding  Incremental  Term  Loan,  the  Applicable  Rate  for  the               Revolving Loans, the Term Loans and/or such outstanding Incremental Term Loan shall               be increased such that the Applicable Rate for the Revolving Loans, the Term Loans and/or               such outstanding Incremental Term Loan is not more than fifty basis points (0.50%) less               than the Applicable Rate for such Incremental Term Loan.  For purposes of determining               the Applicable Rate for any Incremental Term Loan in order to determine whether the               Applicable  Rate  of  the  Incremental  Term  Loan  exceeds  the  Applicable  Rate  of  the               Revolving Loans, the Term Loans or any then outstanding Incremental Term Loan by more               than fifty basis points (0.50%), (i) original issue discount and upfront fees (which shall be               deemed to constitute like amounts of original issue discount), if any, payable by a Borrower               to any Lender providing all or any portion of such Incremental Term Loan (including in               connection with the initial primary syndication thereof), shall be included (it being agreed               that  original  issue  discount,  if any,  shall  be  equated  to  such interest  rates  based  on  an               assumed four (4) year life-to-maturity of such Incremental Term Loan) and (ii) customary               arrangement fees paid to any arranger in connection with such Incremental Term Loan               shall be excluded.                                            (G)    Schedule 2.01 shall be deemed revised to reflect the Incremental Term               Loan  Commitments  and/or  Applicable  Percentages  of  the  Lender  providing  such               Incremental Term Loan as set forth in the joinder document and/or commitment agreement               therefor.                                            (H)    Upon  the  execution  and  delivery  of  all  documentation  required  by  this               Section 2.01(d) to be delivered in connection with any such Incremental Term Loan, the                                             46  CHAR1\1732710v2 

 

                Administrative Agent, each Borrower and the new or existing Lenders who are making               such Incremental Term Loan may enter into an amendment hereof (which shall be binding               on  all  parties  hereto  and  the  Additional  Lenders)  for  the  purpose  of  reflecting  any               Additional Lenders, their Incremental Term Loan Commitments and/or Incremental Term               Loans, and any amendment to the terms of this Agreement necessary to incorporate the               terms of such Incremental Term Loan as contemplated by this Section 2.01(d).                Each Borrower shall prepay any Loans owing by it and outstanding on the date of any such increase        in the Aggregate Revolving Commitments or any such institution of any Incremental Term Loan        (and pay any additional amounts required pursuant to Section 3.05) to the extent necessary to keep        the outstanding Loans ratable with any revised Commitments arising from any nonratable increase        in the Commitments under this Section 2.01(d).                       (iii)  Incremental Funds Certain Provision.                Notwithstanding anything to the contrary in this Section 2.01(d) or in Section 5.02, if the        proceeds of any Incremental Term Loan are being used to finance a Permitted Acquisition made        pursuant to an acquisition agreement (an “Acquisition Agreement”) binding on a Loan Party or its        Subsidiary,  entered  into  in  advance  of  the  consummation  thereof  (a  “Limited  Condition        Transaction”), and the applicable Borrower has obtained on or prior to the closing thereof binding        commitments of Lenders and/or Additional Lenders to fund such Incremental Term Loan, then the        conditions to the funding and incurrence of any such Incremental Term Loan shall be limited as        follows:  (A) the condition set forth in Section 2.01(d)(ii)(E)(2)(x) and the condition precedent to        Credit Extensions in Section 5.02(a) shall apply only with respect to Specified Representations, (B)        the representations and warranties in the Acquisition Agreement made by or with respect to the        Person or assets subject to such Acquisition that are material to the interests of the Lenders shall be        true and correct in all material respects, but only to the extent that the applicable Loan Party or        Subsidiary  has  the  right  to  terminate  its  obligations  under  the  Acquisition  Agreement  or  not        consummate such Permitted Acquisition as a result of a breach of such representations in such        Acquisition Agreement, and (C) the references in Sections 2.01(d)(ii)(B), 2.01(d)(ii)(E)(2)(y) and        5.02(b) to no Default or Event of Default shall be deemed to mean (1) the absence of a Default or        Event of Default at the date the applicable Acquisition Agreement is executed and delivered and        (2) the absence of a Specified Event of Default at the date the applicable Permitted Acquisition is         consummated.  For purposes of clarity, increases in the Aggregate Revolving Commitments shall         not be subject at any time to the Incremental Funds Certain Provisions.  Nothing in the foregoing         constitutes a waiver of any Default or Event of Default under this Agreement or of any rights or         remedies of Lenders and the Administrative Agent under any provision of the Loan Documents.          The provisions of this paragraph are collectively referred to in this Agreement as the “Incremental        Funds Certain Provision”.         For purposes of determining compliance on a Pro Forma Basis with the financial covenants in        Section 8.10 or other ratio requirement under this Agreement, or whether a Default or Event of        Default has occurred and is continuing, in each case in connection with the consummation of an        Acquisition  using  proceeds  from  an  Incremental  Term  Loan  subject  to  the  Incremental  Funds        Certain Provision, the date of determination shall, at the option of the Parent Borrower, be the date        of execution of such Acquisition Agreement, and such determination shall be made after giving        effect to such Acquisition (and the other transactions to be entered into in connection therewith        (including any incurrence of Indebtedness and the use of proceeds thereof)) on a Pro Forma Basis,        and,  for  the  avoidance  of  doubt, if  any  such  financial  covenant  or  other  ratio  requirement  is        subsequently breached as a result of fluctuations in the ratio that is subject of any such financial        covenant or other ratio requirement (including due to fluctuations in Consolidated EBITDA of the                                             47  CHAR1\1732710v2 

 

         Parent Borrower and its Subsidiaries or the EBITDA of the Person (or attributable to the assets)        subject to such Acquisition), at or prior to the consummation of such Acquisition (and the other        transactions  to  be  entered  into  in  connection  therewith),  such financial  covenant  or  other  ratio        requirement will not be deemed to have been breached as a result of such fluctuations solely for        the purpose of determining whether such Acquisition (and the other transactions to be entered into        in  connection  therewith)  constitutes  a  Permitted  Acquisition; provided, that,  (x)  if  the  Parent        Borrower  elects  to  have  such  determination  occur  at  the  time  of  entry  into  the  applicable        Acquisition Agreement (and not at the time of consummation of the Acquisition), the Incremental         Term  Loan  to  be  incurred  shall  be  deemed  incurred  at  the  time  of  such  election  (unless  the         applicable  Acquisition  Agreement is  terminated  without  actually  consummating  the  applicable         Permitted Acquisition (in which case such Acquisition and related Incremental Term Loan will not         be treated as having occurred)) and outstanding thereafter for purposes of calculating compliance,         on a Pro Forma Basis, with any applicable financial covenant or other ratio requirement in this         Agreement (even if unrelated to determining whether such Acquisition is a Permitted Acquisition)         and (y) EBITDA of the Person (or attributable to the assets) subject to such Acquisition shall be         disregarded for all purposes under this Agreement other than determining whether such Acquisition         is a Permitted Acquisition until the consummation of such Permitted Acquisition.           2.02  Borrowings, Conversions and Continuations of Loans.           (a)   Loans.  Each Borrowing, each conversion of Loans from one Type to the other, and each  continuation of Eurocurrency Rate Loans shall be made upon the applicable Borrower’s irrevocable notice  to the Administrative Agent, which may be given by (i) telephone or (ii) a Loan Notice.  Each such 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  Eurocurrency  Rate  Loans  denominated in Dollars or of any conversion of Eurocurrency Rate Loans denominated in Dollars to Base  Rate Loans, (ii) four (4) Business Days (or five (5) Business Days in the case of a Special Notice Currency)  prior to the requested date of any Borrowing or continuation of Eurocurrency Rate Loans denominated in  Alternative Currencies, and (iii) on the requested date of any Borrowing of Base Rate Loans; provided,  however, that, if the applicable Borrower wishes to request Eurocurrency Rate Loans having an Interest  Period other than one (1), two (2), three (3), six (6) or (12) 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.  (x)  four  (4)  Business  Days  prior  to  the  requested  date  of such  Borrowing  of,  conversion  to  or  continuation of Eurocurrency Rate Loans denominated in Dollars, or (y) five (5) Business Days (or six (6)  Business Days in the case of a Special Notice Currency) prior to the requested date of such Borrowing of,  conversion  to  or  continuation  of  Eurocurrency  Rate  Loans  denominated  in  Alternative  Currencies,  whereupon the Administrative Agent shall give prompt notice to the Lenders of such request and determine  whether the requested Interest Period is acceptable to each Lender. Not later than 11:00 a.m., (1) three (3)  Business  Days  before  the  requested  date  of  such  Borrowing  of,  conversion  to  or  continuation  of  Eurocurrency Rate Loans denominated in Dollars, or (2) four (4) Business Days (or five (5) Business Days  in the case of a Special Notice Currency) prior to the requested date of such Borrowing of, conversion to  or continuation of Eurocurrency Rate Loans denominated in Alternative Currencies, the Administrative  Agent shall notify the applicable Borrower (which notice may be by telephone) whether or not the requested  Interest Period has been consented to by all Lenders.                  (b)   Each telephonic notice by the applicable Borrower pursuant to this Section 2.02 must be  confirmed  promptly  by  delivery  to  the  Administrative  Agent  of  a  Loan  Notice.   Each  Borrowing  of,  conversion to or continuation of Eurocurrency Rate Loans shall be in a principal amount of $2,000,000 or  a whole multiple of $1,000,000 in excess thereof.  Except as provided in Sections 2.03(c) and 2.04(c), each  Borrowing of or conversion to Base Rate Loans shall be in a principal amount of $1,000,000 or a whole  multiple  of  $500,000  in  excess  thereof.   Each  Loan  Notice  and  each  telephonic  notice  shall  specify                                             48  CHAR1\1732710v2 

 

   (i) whether the applicable Borrower’s request is with respect to Revolving Loans, the U.S. Term Loan, the  Multicurrency  Term  Loan  or  Incremental  Term  Loans,  (ii)  whether  such  Borrower  is  requesting  a  Borrowing, a conversion of Loans from one Type to the other, or a continuation of Eurocurrency Rate  Loans, (iii) the requested date of the Borrowing, conversion or continuation, as the case may be (which  shall be a Business Day), (iv) the principal amount of Loans to be borrowed, converted or continued, (v) the  Type of Loans to be borrowed or to which existing Loans are to be converted, (vi) if applicable, the duration  of  the  Interest  Period  with  respect  thereto,  (vii) the currency of  the  Loans  to be  borrowed and  (viii)  if  applicable, the applicable Foreign Borrower.  If the applicable Borrower fails to specify a currency in a  Loan Notice requesting a Borrowing, then the Loans so requested shall be made in Dollars.  If the applicable  Borrower fails to specify a Type of Loan in a Loan Notice or if such Borrower fails to give a timely notice  requesting a conversion or continuation, then the applicable Loans shall be made as, or converted to, upon  the  expiration  of  the  Interest  Period  therefor,  a  Eurocurrency Rate Loan in the same currency with an  Interest Period of one (1) month.  If the applicable Borrower requests a Borrowing of, conversion to, or  continuation of Eurocurrency Rate Loans in any such Loan Notice, but fails to specify an Interest Period,  it will be deemed to have specified an Interest Period of one (1) month.  No Loan may be converted into or  continued  as  a  Loan  denominated  in  a  different  currency,  but  instead  must  be  prepaid  in  the  original  currency of such Loan and reborrowed in the other currency.                  (c)   Following receipt of a Loan Notice, the Administrative Agent shall promptly notify each  Lender of the amount (and currency) of its Applicable Percentage of the applicable Loans, and if no timely  notice of a conversion or continuation is provided by the applicable Borrower, the Administrative Agent  shall notify each Lender of the details of any automatic conversion to Base Rate Loans or a continuation of  Loans denominated in an Alternative Currency, in each case, as described in Section 2.02(b).  In the case  of a Borrowing, each Lender shall make the amount of its Loan available to the Administrative Agent in  Same Day Funds at the Administrative Agent’s Office for the applicable currency not later than 1:00 p.m.,  in the case of any Loan denominated in Dollars, and not later than the Applicable Time specified by the  Administrative Agent in the case of any Loan in an Alternative Currency, in each case on the Business Day  specified in the applicable Loan Notice.  Upon satisfaction of the applicable conditions set forth in Section  5.02 (and, if such Borrowing is the initial Credit Extension, Section 5.01), the Administrative Agent shall  make  all  funds  so  received  available  to  the  applicable  Borrower  in  like  funds  as  received  by  the  Administrative Agent either by (i) crediting the account of such Borrower on the books of Bank of America  with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with instructions  provided to (and reasonably acceptable to) the Administrative Agent by such Borrower; provided, however,  that, if, on the date of a Borrowing of Revolving Loans, there are L/C Borrowings outstanding, then the  proceeds of such Borrowing, first, shall be applied to the payment in full of any such L/C Borrowings and  second, shall be made available to such Borrower as provided above.           (d)   Except as otherwise provided herein, (i) a Eurocurrency Rate Loan may be continued or  converted only on the last day of the Interest Period for such Eurocurrency Rate Loan and (ii) without the  consent of all affected Lenders, no Loan may be requested as, converted to or continued as a Eurocurrency  Rate Loan with an Interest Period greater than six (6) months.  During the existence of a Default, no Loans  denominated in Dollars may be requested as, converted to or continued as Eurocurrency Rate Loans without  the consent of the Required Lenders and any Loans denominated in any Alternative Currency may continue  to be borrowed at the Eurocurrency Rate with an Interest Period not greater than one (1) month until such  time as the Required Lenders rescind such ability in a written notice delivered to the Parent Borrower.                (e)    The Administrative Agent shall promptly notify the applicable Borrower and the Lenders  of the interest rate applicable to any Interest Period for Eurocurrency Rate Loans upon determination of  such interest rate.  At any time that Base Rate Loans are outstanding, the Administrative Agent shall notify  the applicable Borrower and the Lenders of any change in Bank of America’s prime rate used in determining  the Base Rate promptly following the public announcement of such change.                                             49  CHAR1\1732710v2 

 

           (f)    After giving effect to all Borrowings, all conversions of Loans from one Type to the other,  and all continuations of Loans as the same Type, there shall not be more than 10 Interest Periods in effect  with respect to all Loans.     2.03  Letters of Credit.           (a)   The Letter of Credit Commitment.                       (i)    Subject to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in        reliance upon the agreements of the Revolving Lenders set forth in this Section 2.03, (1) from time        to time on any Business Day during the period from the Effective Date until the Letter of Credit        Expiration Date, to issue Letters of Credit in Dollars or in any Alternative Currency for the account        of  the  Parent  Borrower  or  any  of  its  Subsidiaries,  and  to  amend  or  extend  Letters  of  Credit        previously issued by it, in accordance with Section 2.03(b), and (2) to honor drawings under the        Letters of Credit; and (B) the Revolving Lenders severally agree to participate in Letters of Credit        issued for the account of the Parent Borrower or its Subsidiaries and any drawings thereunder;        provided, that, after giving effect to any L/C Credit Extension with respect to any Letter of Credit,        (w) the Dollar Equivalent of Total Revolving Outstandings denominated in Alternative Currencies        shall be exceed the Alternative Currency Sublimit, (x) the Total Revolving Outstandings shall not        exceed  the  Aggregate  Revolving  Commitments,  (y)  the  aggregate  Outstanding  Amount  of  the        Revolving Loans of any Revolving Lender, plus such Revolving Lender’s Applicable Percentage        of  the  Outstanding  Amount  of  all  L/C  Obligations  plus  such  Revolving  Lender’s  Applicable        Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed such Revolving        Lender’s Revolving Commitment and (z) the Outstanding Amount of the L/C Obligations shall not         exceed the Letter of Credit Sublimit.  Each request by the Parent Borrower for the issuance or         amendment of a Letter of Credit shall be deemed to be a representation by the Parent Borrower that         the L/C Credit Extension so requested complies with the conditions set forth in the proviso to the         preceding sentence.  Within the foregoing limits, and subject to the terms and conditions hereof,         the Parent Borrower’s ability to obtain Letters of Credit shall be fully revolving, and accordingly         the Parent Borrower may, during the foregoing period, obtain Letters of Credit to replace Letters         of  Credit  that  have  expired  or  that  have  been  drawn  upon  and  reimbursed.  Furthermore,  each         Revolving Lender acknowledges and confirms that it has a participation interest in the liability of         the  L/C  Issuer  under  the  Existing  Letters  of  Credit  in  a  percentage  equal  to  its  Applicable         Percentage of the Revolving Loans.  The Parent Borrower’s reimbursement obligations in respect        of the Existing Letters of Credit, and each Revolving Lender’s obligations in connection therewith,        shall be governed by the terms of this Agreement.                       (ii)   The L/C Issuer shall not issue any Letter of Credit if:                              (A)    subject to Section 2.03(b)(iii), the expiry date of such requested Letter of               Credit  would  occur  more  than  twelve  (12)  months  after  the  date of  issuance  or  last               extension; or                                     (B)    the expiry date of such requested Letter of Credit would occur after the               Letter of Credit Expiration Date, unless the L/C Issuer shall have approved such expiry                                              50  CHAR1\1732710v2 

 

                date and the requested Letter of Credit is fully Cash Collateralized in an amount equal to               one hundred five percent (105%) of the face amount thereof on the date of issuance.                        (iii)  The L/C Issuer shall not be under any obligation to issue any Letter of Credit if:                                     (A)    any order, judgment or decree of any Governmental Authority or arbitrator               shall by its terms purport to enjoin or restrain the L/C Issuer from issuing such Letter of               Credit, or any Law applicable to the L/C Issuer or any request or directive (whether or not               having the force of law) from any Governmental Authority with jurisdiction over the L/C               Issuer shall prohibit, or request that the L/C Issuer refrain from, the issuance of letters of               credit generally or such Letter of Credit in particular or shall impose upon the L/C Issuer               with respect to such Letter of Credit any restriction, reserve or capital requirement (for               which the L/C Issuer is not otherwise compensated hereunder) not in effect on the Effective               Date, or shall impose upon the L/C Issuer any unreimbursed loss, cost or expense which               was not applicable on the Effective Date and which the L/C Issuer in good faith deems               material to it;                                     (B)    the issuance of such Letter of Credit would violate one or more policies of               the L/C Issuer applicable to letters of credit generally;                                     (C)    except  as  otherwise  agreed  by  the  Administrative  Agent  and the  L/C               Issuer, such Letter of Credit is in an initial stated amount less than $100,000;                                             (D)    such Letter of Credit is to be denominated in a currency other than Dollars               or an Alternative Currency;                                             (E)   any Lender is at that time a Defaulting Lender, unless the L/C Issuer has               entered into arrangements, including the delivery of Cash Collateral, satisfactory to the L/C               Issuer (in its sole discretion) with the Parent Borrower or such Lender to eliminate the L/C               Issuer’s actual or potential Fronting Exposure (after giving effect to Section 2.15(a)(iv))               with respect to the Defaulting Lender arising from either the Letter of Credit then proposed               to be issued or that Letter of Credit and all other L/C Obligations as to which the L/C Issuer               has actual or potential Fronting Exposure, as it may elect in its sole discretion; or                                            (F)    the Letter of Credit contains any provisions for automatic reinstatement of               the stated amount after any drawing thereunder.                              (iv)   The L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would not be        permitted at such time to issue the Letter of Credit in its amended form under the terms hereof.                (v)    The L/C Issuer shall not be under any obligation to amend any Letter of Credit if        (A) the  L/C  Issuer  would  have  no  obligation  at  such  time  to  issue  such  Letter  of  Credit  in  its        amended form under the terms hereof, or (B) the beneficiary of such Letter of Credit does not        accept the proposed amendment to such Letter of Credit.                              (vi)   The L/C Issuer shall act on behalf of the Revolving Lenders with respect to any        Letters of Credit issued by it and the documents associated therewith, and the L/C Issuer shall have        all  of  the  benefits  and  immunities  (A) provided  to  the  Administrative  Agent  in  Article  X  with        respect to any acts taken or omissions suffered by the L/C Issuer in connection with Letters of        Credit issued by it or proposed to be issued by it and Issuer Documents pertaining to such Letters        of Credit as fully as if the term “Administrative Agent” as used in Article X included the L/C Issuer                                             51  CHAR1\1732710v2 

 

         with respect to such acts or omissions, and (B) as additionally provided herein with respect to the        L/C Issuer.          (b)    Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of               Credit.                       (i)    Each Letter of Credit shall be issued or amended, as the case may be, upon the        request of the Parent Borrower delivered to the L/C Issuer (with a copy to the Administrative Agent)        in the form of a Letter of Credit Application, appropriately completed and signed by a Responsible        Officer of the Parent Borrower.  Such Letter of Credit Application may be sent by facsimile, by        United States mail, by overnight courier, by electronic transmission using the system provided by        the L/C Issuer, by personal delivery or by any other means acceptable to the L/C Issuer.  Such        Letter of Credit Application must be received by the L/C Issuer and the Administrative Agent not        later  than  11:00  a.m.  at  least  five  (5)  Business  Days  (or  such later  date  and  time  as  the        Administrative Agent and the L/C Issuer may agree in a particular instance in their sole discretion)        prior to the proposed issuance date or date of amendment, as the case may be.  In the case of a        request for an initial issuance of a Letter of Credit, such Letter of Credit Application shall specify        in form and detail satisfactory to the L/C Issuer: (A) the proposed issuance date of the requested        Letter of Credit (which shall be a Business Day); (B) the amount and currency thereof; (C) the        expiry date thereof; (D) the name and address of the beneficiary thereof; (E) the documents to be        presented by such beneficiary in case of any drawing thereunder; (F) the full text of any certificate        to be presented by such beneficiary in case of any drawing thereunder; (G) the purpose and nature        of the requested Letter of Credit; and (H) such other matters as the L/C Issuer may require.  In the        case  of  a  request  for  an  amendment  of  any  outstanding  Letter  of  Credit,  such  Letter  of  Credit        Application shall specify in form and detail satisfactory to the L/C Issuer (A) the Letter of Credit        to be amended; (B) the proposed date of amendment thereof (which shall be a Business Day); (C)        the nature of the proposed amendment; and (D) such other matters as the L/C Issuer may require.         Additionally, the Parent Borrower shall furnish to the L/C Issuer and the Administrative Agent such        other  documents  and  information pertaining  to  such  requested  Letter  of  Credit  issuance  or        amendment, including any Issuer Documents, as the L/C Issuer or the Administrative Agent may        require.                       (ii)   Promptly  after  receipt  of  any  Letter  of  Credit  Application, the L/C Issuer will        confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent        has received a copy of such Letter of Credit Application from the Parent Borrower and, if not, the        L/C Issuer will provide the Administrative Agent with a copy thereof.  Unless the L/C Issuer has        received written notice from any Revolving Lender, the Administrative Agent or any Loan Party,        at least one (1) Business Day prior to the requested date of issuance or amendment of the applicable        Letter of Credit, that one or more applicable conditions contained in Article V shall not be satisfied,        then, subject to the terms and conditions hereof, the L/C Issuer shall, on the requested date, issue a         Letter of Credit for the account of the Parent Borrower or the applicable Subsidiary or enter into         the applicable amendment, as the case may be, in each case in accordance with the L/C Issuer’s         usual and customary business practices.  Immediately upon the issuance of each Letter of Credit,         each Revolving Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to,         purchase from the L/C Issuer a risk participation in such Letter of Credit in an amount equal to the         product of such Revolving Lender’s Applicable Percentage times the amount of such Letter of        Credit.                       (iii)  If the Parent Borrower so requests in any applicable Letter of Credit Application,        the L/C Issuer may, in its sole and absolute discretion, agree to issue a Letter of Credit that has        automatic extension provisions (each, an “Auto-Extension Letter of Credit”); provided, that, any                                             52  CHAR1\1732710v2 

 

         such Auto-Extension Letter of Credit must permit the L/C Issuer to prevent any such extension at        least once in each twelve-month period (commencing with the date of issuance of such Letter of        Credit) by giving prior notice to the beneficiary thereof not later than a day (the “Non-Extension        Notice Date”) in each such twelve-month period to be agreed upon at the time such Letter of Credit        is issued.  Unless otherwise directed by the L/C Issuer, the Parent Borrower shall not be required        to make a specific request to the L/C Issuer for any such extension.  Once an Auto-Extension Letter        of Credit has been issued, the Revolving Lenders shall be deemed to have authorized (but may not        require) the L/C Issuer to permit the extension of such Letter of Credit at any time to an expiry date        not later than the Letter of Credit Expiration Date; provided, however, that, the L/C Issuer shall not        permit any such extension if (A) the L/C Issuer has determined that it would not be permitted, or        would  have  no  obligation,  at  such  time  to  issue  such  Letter  of Credit  in  its  revised  form  (as        extended) under the terms hereof (by reason of the provisions of clause (ii) or (iii) of Section 2.03(a)        or otherwise), or (B) it has received notice (which may be by telephone or in writing) on or before        the  day  that  is  seven  (7)  Business  Days  before  the  Non-Extension  Notice  Date  (1)  from  the        Administrative  Agent  that  the  Required  Revolving  Lenders  have  elected  not  to  permit  such        extension or (2) from the Administrative Agent, any Revolving Lender or the Parent Borrower that        one or more of the applicable conditions specified in Section 5.02 is not then satisfied, and in each        case directing the L/C Issuer not to permit such extension.                       (iv)   Promptly after its delivery of any Letter of Credit or any amendment to a Letter of        Credit to an advising bank with respect thereto or to the beneficiary thereof, the L/C Issuer will        also deliver to the Parent Borrower and the Administrative Agent a true and complete copy of such        Letter of Credit or amendment.          (c)    Drawings and Reimbursements; Funding of Participations.                              (i)    Upon receipt from the beneficiary of any Letter of Credit of any notice of        drawing  under  such  Letter  of  Credit,  the  L/C  Issuer  shall  notify  the  Parent  Borrower  and  the        Administrative Agent thereof.  In the case of a Letter of Credit denominated in an Alternative        Currency, the Parent Borrower shall reimburse the L/C Issuer in such Alternative Currency, unless        (A) the  L/C  Issuer  (at  its  option)  shall  have  specified  in  such  notice  that  it  will  require        reimbursement in Dollars, or (B) in the absence of any such requirement for reimbursement in        Dollars, the Parent Borrower shall have notified the L/C Issuer promptly following receipt of the        notice of drawing that the Parent Borrower will reimburse the L/C Issuer in Dollars.  In the case of        any  such  reimbursement  in  Dollars  of  a  drawing  under  a  Letter  of  Credit  denominated  in  an        Alternative Currency, the L/C Issuer shall notify the Parent Borrower of the Dollar Equivalent of        the amount of the drawing promptly following the determination thereof.  Not later than 11:00 a.m.        on the date of any payment by the L/C Issuer under a Letter of Credit to be reimbursed in Dollars,        or the Applicable Time on the date of any payment by the L/C Issuer under a Letter of Credit to be        reimbursed in an Alternative Currency (each such date, an “Honor Date”), the Parent Borrower        shall reimburse the L/C Issuer through the Administrative Agent in an amount equal to the amount        of such drawing and in the applicable currency.  In the event that (A) a drawing denominated in an        Alternative Currency is to be reimbursed in Dollars pursuant to the second sentence in this Section        2.03(c)(i) and (B) the Dollar amount paid by the Parent Borrower, whether on or after the Honor        Date, shall not be adequate on the date of that payment to purchase in accordance with normal        banking procedures a sum denominated in the Alternative Currency equal to the drawing, the Parent        Borrower agrees, as a separate and independent obligation, to indemnify the L/C Issuer for the loss        resulting from its inability on that date to purchase the Alternative Currency in the full amount of        the  drawing.   If  the  Parent  Borrower  fails  to  so  reimburse  the L/C  Issuer  by  such  time,  the        Administrative Agent shall promptly notify each Revolving Lender of the Honor Date, the amount        of the unreimbursed drawing (expressed in Dollars or in the amount of the Dollar Equivalent thereof                                             53  CHAR1\1732710v2 

 

         in  the  case  of  a  Letter  of  Credit denominated  in  an  Alternative  Currency)  (the  “Unreimbursed        Amount”), and the amount of such Revolving Lender’s Applicable Percentage thereof.  In such        event, the Parent Borrower shall be deemed to have requested a Borrowing of Base Rate Loans to         be disbursed on the Honor Date in an amount equal to the Unreimbursed Amount, without regard         to the minimum  and  multiples specified in Section 2.02 for the principal amount of Base Rate        Loans,  but  subject  to  the  amount  of  the  unutilized  portion  of  the  Aggregate  Revolving        Commitments  and  the  conditions  set  forth  in  Section 5.02  (other  than  the  delivery  of  a  Loan        Notice).   Any  notice  given  by  the  L/C  Issuer  or  the  Administrative  Agent  pursuant  to  this        Section 2.03(c)(i) may be given by telephone if immediately confirmed in writing; provided, that,        the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of        such notice.                       (ii)   Each Revolving Lender shall upon any notice pursuant to Section 2.03(c)(i) make        funds available to the Administrative Agent for the account of the L/C Issuer, in Dollars, at the        Administrative  Agent’s  Office  for Dollar-denominated  payments  in  an  amount  equal  to  its        Applicable Percentage of the Unreimbursed Amount not later than 1:00 p.m. on the Business Day        specified  in  such  notice  by  the  Administrative  Agent,  whereupon,  subject  to  the  provisions  of        Section 2.03(c)(iii), each Revolving Lender that so makes funds available shall be deemed to have        made a Base Rate Loan to the Parent Borrower in such amount.  The Administrative Agent shall        remit the funds so received to the L/C Issuer in Dollars.                       (iii)  With  respect  to  any  Unreimbursed  Amount  that  is  not  fully  refinanced  by  a        Borrowing of Base Rate Loans because the conditions set forth in Section 5.02 cannot be satisfied        or for any other reason, the Parent Borrower shall be deemed to have incurred from the L/C Issuer        an L/C Borrowing in the amount of the Unreimbursed Amount that is not so refinanced, which L/C        Borrowing shall be due and payable on demand (together with interest) and shall bear interest at        the Default Rate.  In such event, each Revolving Lender’s payment to the Administrative Agent for        the account of the L/C Issuer pursuant to Section 2.03(c)(ii) shall be deemed payment in respect of        its participation in such L/C Borrowing and shall constitute an L/C Advance from such Revolving        Lender in satisfaction of its participation obligation under this Section 2.03.                       (iv)   Until each Revolving Lender funds its Revolving Loan or L/C Advance pursuant        to this Section 2.03(c) to reimburse the L/C Issuer for any amount drawn under any Letter of Credit,        interest in respect of such Revolving Lender’s Applicable Percentage of such amount shall be solely        for the account of the L/C Issuer.                       (v)    Each Revolving Lender’s obligation to make Revolving Loans or L/C Advances        to reimburse the L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this        Section 2.03(c), shall be absolute and unconditional and shall not be affected by any circumstance,        including (A) any setoff, counterclaim, recoupment, defense or other right which such Revolving        Lender may have against the L/C Issuer, the Parent Borrower or any other Person for any reason        whatsoever; (B) the occurrence or continuance of a Default, or (C) any other occurrence, event or         condition, whether or not similar to any of the foregoing; provided, however, that, each Revolving        Lender’s obligation to make Revolving Loans pursuant to this Section 2.03(c) is subject to the        conditions set forth in Section 5.02 (other than delivery by the Parent Borrower of a Loan Notice).         No such making of an L/C Advance shall relieve or otherwise impair the obligation of the Parent        Borrower to reimburse the L/C Issuer for the amount of any payment made by the L/C Issuer under        any Letter of Credit, together with interest as provided herein.                              (vi)   If any Revolving Lender fails to make available to the Administrative Agent for         the account of the L/C Issuer any amount required to be paid by such Revolving Lender pursuant                                             54  CHAR1\1732710v2 

 

         to the foregoing provisions of this Section 2.03(c) by the time specified in Section 2.03(c)(ii), then,        without limiting the other provisions of this Agreement, the L/C Issuer shall be entitled to recover        from such Revolving Lender (acting through the Administrative Agent), on demand, such amount        with interest thereon for the period from the date such payment is required to the date on which        such payment is immediately available to the L/C Issuer at rate equal to the applicable Overnight        Rate  from  time  to  time  in  effect.   If  such  Lender  pays  such  amount  (with  interest  and  fees  as        aforesaid),  the  amount  so  paid  shall  constitute  such  Lender’s  Loan  included  in  the  relevant        Borrowing  or  L/C  Advance  in  respect  of  the  relevant  L/C  Borrowing,  as  the  case  may  be.   A        certificate of the L/C Issuer submitted to any Revolving Lender (through the Administrative Agent)        with respect to any amounts owing under this clause (vi) shall be conclusive absent manifest error.         (d)    Repayment of Participations.                         (i)    At any time after the L/C Issuer has made a payment under any Letter of Credit        and has received from any Revolving Lender such Revolving Lender’s L/C Advance in respect of        such payment in accordance with Section 2.03(c), if the Administrative Agent receives for the        account of the L/C Issuer any payment in respect of the related Unreimbursed Amount or interest        thereon  (whether  directly  from  the  Parent  Borrower  or  otherwise,  including  proceeds  of  Cash        Collateral applied thereto by the Administrative Agent), the Administrative Agent will distribute        to such Revolving Lender its Applicable Percentage thereof (appropriately adjusted, in the case of        interest payments, to reflect the period of time during which such Revolving Lender’s L/C Advance        was outstanding) in Dollars and in the same funds as those received by the Administrative Agent.                       (ii)   If any payment received by the Administrative Agent for the account of the L/C        Issuer  pursuant  to  Section  2.03(c)(i)  is  required  to  be  returned  under  any  of  the  circumstances        described in Section 11.05 (including pursuant to any settlement entered into by the L/C Issuer in        its discretion), each Revolving Lender shall pay to the Administrative Agent for the account of the        L/C Issuer its Applicable Percentage thereof on demand of the Administrative Agent, plus interest        thereon  from  the  date  of  such  demand  to  the  date  such  amount  is  returned  by  such  Revolving        Lender, at a rate per annum equal to the Overnight Rate from time to time in effect.  The obligations        of the Revolving Lenders under this clause (ii) shall survive the payment in full of the Obligations        and the termination of this Agreement.          (e)    Obligations Absolute.  The obligation of the Parent Borrower to reimburse the L/C Issuer  for  each  drawing  under  each  Letter  of  Credit  and  to  repay  each L/C  Borrowing  shall  be  absolute,  unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement  under all circumstances, including the following:                        (i)    any lack of validity or enforceability of such Letter of Credit, this Agreement or         any other Loan Document;                        (ii)   the existence of any claim, counterclaim, setoff, defense or other right that the        Parent Borrower or any Subsidiary may have at any time against any beneficiary or any transferee        of such Letter of Credit (or any Person for whom any such beneficiary or any such transferee may        be acting), the L/C Issuer or any other Person, whether in connection with this Agreement, the        transactions  contemplated  hereby  or  by  such  Letter  of  Credit  or  any  agreement  or  instrument        relating thereto, or any unrelated transaction;                       (iii)  any draft, demand, certificate or other document presented under such Letter of        Credit  proving  to  be  forged,  fraudulent,  invalid  or  insufficient  in  any  respect  or  any  statement                                             55  CHAR1\1732710v2 

 

         therein  being  untrue  or  inaccurate  in  any  respect;  or  any  loss or  delay  in  the  transmission  or        otherwise of any document required in order to make a drawing under such Letter of Credit;                 (iv)   waiver  by  the  L/C  Issuer  of  any  requirement  that  exists  for  the  L/C  Issuer’s        protection and not the protection of the Parent Borrower or any waiver by the L/C Issuer which        does not in fact materially prejudice the Parent Borrower;                (v)    honor of a demand for payment presented electronically even if such Letter of        Credit requires that demand be in the form of a draft;                (vi)   any payment made by the L/C Issuer in respect of an otherwise complying item        presented after the date specified as the expiration date of, or the date by which documents must be        received under such Letter of Credit if presentation after such date is authorized by the UCC or the        ISP.                (vii)  any payment by the L/C Issuer under such Letter of Credit against presentation of        a draft or certificate that does not strictly comply with the terms of such Letter of Credit; or any        payment made by the L/C Issuer under such Letter of Credit to any Person purporting to be a trustee        in bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver or         other representative of or successor to any beneficiary or any transferee of such Letter of Credit,         including any arising in connection with any proceeding under any Debtor Relief Law;                  (viii)  any adverse change in the relevant exchange rates  or in the availability of any         Alternative Currency to the Parent Borrower or any Subsidiary or in the relevant currency markets         generally; or                              (ix)   any other circumstance or happening whatsoever, whether or not similar to any of         the foregoing, including any other circumstance that might otherwise constitute a defense available         to, or a discharge of, the Parent Borrower or any Subsidiary.    provided, that the foregoing shall not be construed to excuse the L/C Issuer from liability to the Parent  Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of  which are hereby waived by the Parent Borrower to the extent permitted by applicable Law) suffered by  the Parent Borrower that are caused by such LC Issuer’s failure to exercise care when determining whether  drafts and other documents presented under a Letter of Credit comply with the terms thereof.                  The Parent Borrower shall promptly examine a copy of each Letter of Credit and each amendment  thereto that is delivered to it and, in the event of any claim of noncompliance with the Parent Borrower’s  instructions or other irregularity, the Parent Borrower will immediately notify the L/C Issuer.  The Parent  Borrower  shall  be  conclusively  deemed  to  have  waived  any  such  claim  against  the  L/C  Issuer  and  its  correspondents unless such notice is given as aforesaid.           (f)   Role of L/C Issuer.  Each Revolving Lender and the Parent Borrower agree that, in paying  any  drawing  under  a  Letter  of  Credit,  the  L/C  Issuer  shall  not have  any  responsibility  to  obtain  any  document  (other  than  any  sight  draft,  certificates  and  documents  expressly  required  by  such  Letter  of  Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the authority of the  Person executing or delivering any such document.  None of the L/C Issuer, the Administrative Agent, any  of their respective Related Parties nor any correspondent, participant or assignee of the L/C Issuer shall be  liable to any Revolving Lender for (i) any action taken or omitted in connection herewith at the request or  with the approval of the Revolving Lenders or the Required Lenders, as applicable; (ii) any action taken or  omitted in the absence of gross negligence or willful misconduct; or (iii) the due execution, effectiveness,                                             56  CHAR1\1732710v2 

 

   validity or enforceability of any document or instrument related to any Letter of Credit or Issuer Document.   The Parent Borrower hereby assumes all risks of the acts or omissions of any beneficiary or transferee with  respect to its use of any Letter of Credit; provided, however, that, this assumption is not intended to, and  shall  not,  preclude  the  Parent  Borrower  pursuing  such  rights  and  remedies  as  it  may  have  against  the  beneficiary or transferee at Law or under any other agreement.  None of the L/C Issuer, the Administrative  Agent, any of their respective Related Parties nor any correspondent, participant or assignee of the L/C  Issuer shall be liable or responsible for any of the matters described in clauses (i) through (ix) of Section  2.03(e);  provided,  however,  that,  anything  in  such  clauses  to  the  contrary  notwithstanding,  the  Parent  Borrower may have a claim against the L/C Issuer, and the L/C Issuer may be liable to the Parent Borrower,  to the extent, but only to the extent, of any direct, as opposed to consequential or exemplary, damages  suffered by the Parent Borrower which the Parent Borrower proves were caused by the L/C Issuer’s willful  misconduct or gross negligence or the L/C Issuer’s willful failure to pay under any Letter of Credit after  the presentation to it by the beneficiary of a sight draft and certificate(s) strictly complying with the terms  and conditions of a Letter of Credit unless the L/C Issuer is prevented or prohibited from so paying as a  result of any order or directive of any court or other Governmental Authority.  In furtherance and not in  limitation of the foregoing, the L/C Issuer may accept documents that appear on their face to be in order,  without responsibility for further investigation, regardless of any notice or information to the contrary, and  the L/C Issuer shall not be responsible for the validity or sufficiency of any instrument transferring or  assigning or purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or proceeds  thereof, in whole or in part, which may prove to be invalid or ineffective for any reason.  The L/C Issuer  may send Letters of Credit or conduct any communication to or from the beneficiary via the Society for  Worldwide Interbank Financial Telecommunication (“SWIFT”) message or overnight courier, or any other  commercially reasonable means of communicating with a beneficiary.           (g)   Cash Collateral.  (i) Upon the request of the Administrative Agent, (i) if the L/C Issuer has  honored any full or partial drawing request under any Letter of Credit and such drawing has resulted in an  L/C Borrowing, or (ii) if, as of the Letter of Credit Expiration Date, any L/C Obligation for any reason  remains  outstanding,  the  Parent  Borrower  shall,  in  each  case,  immediately  Cash  Collateralize  the  then  Outstanding Amount of all L/C Obligations.  In addition, if the Administrative Agent notifies the Parent  Borrower at any time that the Outstanding Amount of all L/C Obligations at such time exceeds one hundred  five percent (105%) of the Letter of Credit Sublimit then in effect, then, within two (2) Business Days after  receipt of such notice, the Parent Borrower shall Cash Collateralize the L/C Obligations in an amount equal  to  the  amount  by  which  the  Outstanding  Amount  of  all  L/C  Obligations  exceeds  the  Letter  of  Credit  Sublimit.           (h)   Applicability of ISP; Limitation of Liability.  Unless otherwise expressly agreed by the  L/C  Issuer  and  the  Parent  Borrower  when  a  Letter  of  Credit  is  issued  (including  any  such  agreement  applicable to an Existing Letter of Credit), the rules of the ISP shall apply to each standby Letter of Credit.   Notwithstanding the foregoing, the L/C Issuer shall not be responsible to the Parent Borrower for, and the  L/C Issuer’s rights and remedies against the Parent Borrower shall not be impaired by, any action or inaction  of the L/C Issuer required or permitted under any Law, order, or practice that is required or permitted to be  applied to any Letter of Credit or this Agreement, including the Law or any order of a jurisdiction where  the L/C Issuer or the beneficiary is located, the practice stated in the ISP, or in the decisions, opinions,  practice statements, or official commentary of the ICC Banking Commission, the Bankers Association for  Finance  and  Trade  -  International  Financial  Services  Association  (BAFT-IFSA),  or  the  Institute  of  International Banking Law & Practice, whether or not any Letter of Credit chooses such Law or practice.           (i)   Letter of Credit Fees.  The Parent Borrower shall pay to the Administrative Agent, for the  account of each Revolving Lender in accordance, subject to Section 2.15, with its Applicable Percentage,  a Letter of Credit fee (the “Letter of Credit Fee”) in Dollars for the account of each Revolving Lender in  accordance with its Applicable Percentage for each Letter of Credit equal to the Applicable Rate times the                                             57  CHAR1\1732710v2 

 

   daily maximum amount available to be drawn under such Letter of Credit.  For purposes of computing the  daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be  determined in accordance with Section 1.07.  Letter of Credit Fees shall be (i) computed on a quarterly  basis in arrears and (ii) due and payable on the first (1st) Business Day after the end of each March, June,  September and December, commencing with the first such date to occur after the issuance of such Letter  of Credit, on the Letter of Credit Expiration Date and thereafter on demand.  If there is any change in the  Applicable Rate during any quarter, the daily amount available to be drawn under each Letter of Credit  shall be computed and multiplied by the Applicable Rate separately for each period during such quarter that  such Applicable Rate was in effect.  Notwithstanding anything to the contrary contained herein, while any  Event of Default exists, all Letter of Credit Fees shall accrue at the Default Rate.          (j)    Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer. The Parent  Borrower shall pay a fronting fee directly to the L/C Issuer for its own account with respect to each Letter  of Credit, at the rate per annum specified in the Fee Letter or other arrangement mutually acceptable to the  Parent Borrower and the L/C Issuer, and, computed on the actual daily maximum amount available to be  drawn under such Letter of Credit (whether or not such maximum amount is then in effect under such Letter  of Credit) and on a quarterly basis in arrears.  Such fronting fee shall be due and payable on the tenth (10th)  Business Day after the end of each March, June, September and December in respect of the most recently- ended quarterly period (or portion thereof, in the case of the first payment), commencing with the first such  date  to  occur  after  the  issuance  of  such  Letter  of  Credit,  on  the  Letter  of  Credit  Expiration  Date  and  thereafter on demand.  For purposes of computing the daily amount available to be drawn under any Letter  of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.07.  In  addition,  the  Parent  Borrower  shall  pay  directly  to  the  L/C  Issuer  for  its  own  account  the  customary  issuance, presentation, amendment and other processing fees, and other standard costs and charges, of the  L/C Issuer relating to letters of credit as from time to time in effect.  Such customary fees and standard  costs and charges are due and payable on demand and are nonrefundable.           (k)   Conflict with Issuer Documents.  In the event of any conflict between the terms hereof and  the terms of any Issuer Document, the terms hereof shall control.                  (l)   Letters of Credit Issued for Subsidiaries.  Notwithstanding that a Letter of Credit issued or  outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary, the Parent  Borrower shall be obligated to reimburse the L/C Issuer hereunder for any and all drawings under such  Letter of Credit.  The Parent Borrower hereby acknowledges that the issuance of Letters of Credit for the  account of Subsidiaries inures to the benefit of the Parent Borrower, and that the Parent Borrower’s business  derives substantial benefits from the businesses of such Subsidiaries.                   (m)   L/C  Issuer  Reports  to  the  Administrative  Agent.   Unless  otherwise  agreed  by  the  Administrative Agent, the L/C Issuer shall, in addition to its notification obligations set forth elsewhere in  this Section 2.03, provide the Administrative Agent a Letter of Credit Report, as set forth below:                       (i)    reasonably prior to the time that the L/C Issuer issues, amends, renews, increases        or extends a Letter of Credit, the date of such issuance, amendment, renewal, increase or extension        and  the  stated  amount  of  the  applicable  Letters  of  Credit  after  giving  effect  to  such  issuance,        amendment, renewal or extension (and whether the amounts thereof shall have changed);                       (ii)   on each Business Day on which the L/C Issuer makes a payment pursuant to a         Letter of Credit, the date and amount of such payment;                                                       58  CHAR1\1732710v2 

 

                (iii)  on any Business Day on which any Borrower fails to reimburse a payment made        pursuant to a Letter of Credit required to be reimbursed to the L/C Issuer on such day, the date of        such failure and the amount of such payment;                       (iv)   on any other Business Day, such other information as the Administrative Agent        shall reasonably request as to the Letters of Credit issued by the L/C Issuer; and                       (v)    for so long as any Letter of Credit issued by the L/C Issuer is outstanding, the L/C        Issuer shall deliver to the Administrative Agent (A) on the last Business Day of each calendar        month, (B) at all other times a Letter of Credit Report is required to be delivered pursuant to this        Agreement,  and  (C)  on  each  date  that  (1)  an  L/C  Credit  Extension  occurs  or  (2)  there  is  any        expiration, cancellation and/or disbursement, in each case, with respect to any such Letter of Credit,        a Letter of Credit Report appropriately completed with the information for every outstanding Letter        of Credit issued by such L/C Issuer.                (n)    Additional L/C Issuers.  Any Lender hereunder may become an L/C Issuer upon receipt by  the Administrative Agent of a fully executed Notice of Additional L/C Issuer which shall be signed by the  Parent Borrower, the Administrative Agent and each L/C Issuer.    2.04  Swing Line Loans.           (a)   Swing Line Facility.  Subject to the terms and conditions set forth herein, the Swing Line  Lender, in reliance upon the agreements of the other Revolving Lenders set forth in this Section 2.04, shall  make loans (each such loan, a “Swing Line Loan”) to the Parent Borrower in Dollars from time to time on  any  Business  Day  during  the  Availability  Period  in  an  aggregate  amount  not  to  exceed  at  any  time  outstanding the amount of the Swing Line Sublimit, notwithstanding the fact that such Swing Line Loans,  when aggregated with the Applicable Percentage of the Outstanding Amount of Revolving Loans and L/C  Obligations  of  the  Revolving  Lender  acting  as  Swing  Line  Lender,  may  exceed  the  amount  of  such  Revolving Lender’s Revolving Commitment; provided, however, that, (w) after giving effect to any Swing  Line Loan, (i) the Total Revolving Outstandings shall not exceed the Aggregate Revolving Commitments,  and (ii) the aggregate Outstanding Amount of the Revolving Loans of any Revolving Lender, plus such  Revolving Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus such  Revolving Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans shall not  exceed  such  Revolving  Lender’s  Revolving  Commitment,  (x)  the  Parent  Borrower  shall  not  use  the  proceeds of any Swing Line Loan to refinance any outstanding Swing Line Loan and (y) the Swing Line  Lender  shall  not  be  under  any  obligation  to  make  any  Swing  Line  Loan  if  it  shall  determine  (which  determination shall be conclusive and binding absent manifest error) that it has, or by such Credit Extension  may have, Fronting Exposure.  Within the foregoing limits, and subject to the other terms and conditions  hereof, the Parent Borrower may borrow under this Section 2.04, prepay under Section 2.05, and reborrow  under this Section 2.04.  Each Swing Line Loan shall be a Base Rate Loan.  Immediately upon the making  of  a  Swing  Line  Loan,  each  Revolving  Lender  shall  be  deemed  to,  and  hereby  irrevocably  and  unconditionally agrees to, purchase from the Swing Line Lender a risk participation in such Swing Line  Loan in an amount equal to the product of such Revolving Lender’s Applicable Percentage times the amount  of such Swing Line Loan.           (b)   Borrowing Procedures.  Each Borrowing of Swing Line Loans shall be made upon the  Parent Borrower’s irrevocable notice to the Swing Line Lender and the Administrative Agent, which may  be given by (i) telephone or (ii) a Swing Line Loan Notice.  Each such notice must be received by the Swing  Line Lender and the Administrative Agent not later than 3:00 p.m. on the requested borrowing date, and  shall specify (i) the amount to be borrowed, which shall be a minimum principal amount of $500,000 and  integral multiples of $100,000 in excess thereof, and (ii) the requested borrowing date, which shall be a                                             59  CHAR1\1732710v2 

 

   Business Day.  Each such telephonic notice must be confirmed promptly by delivery to the Swing Line  Lender and the Administrative Agent of a Swing Line Loan Notice.  Promptly after receipt by the Swing  Line Lender of any Swing Line Loan Notice, the Swing Line Lender will confirm with the Administrative  Agent (by telephone or in writing) that the Administrative Agent has also received such Swing Line Loan  Notice and, if not, the Swing Line Lender will notify the Administrative Agent (by telephone or in writing)  of the contents thereof.  Unless the Swing Line Lender has received notice (by telephone or in writing) from  the Administrative Agent (including at the request of any Revolving Lender) prior to 3:30 p.m. on the date  of the proposed Borrowing of Swing Line Loans (A) directing the Swing Line Lender not to make such  Swing Line Loan as a result of the limitations set forth in the first proviso to the first sentence of Section  2.04(a), or (B) that one or more of the applicable conditions specified in Article V is not then satisfied, then,  subject to the terms and conditions hereof, the Swing Line Lender will, not later than 4:00 p.m. on the  borrowing  date  specified  in  such  Swing  Line  Loan  Notice,  make  the  amount  of  its  Swing  Line  Loan  available to the Parent Borrower.           (c)   Refinancing of Swing Line Loans.                       (i)    The Swing Line Lender at any time in its sole and absolute discretion may request,        on behalf of the Parent Borrower (which hereby irrevocably requests and authorizes the Swing Line        Lender to so request on its behalf), that each Revolving Lender make a Base Rate Loan in an        amount equal to such Revolving Lender’s Applicable Percentage of the amount of Swing Line        Loans then outstanding.  Such request shall be made in writing (which written request shall be        deemed  to  be  a  Loan  Notice  for  purposes  hereof)  and  in  accordance  with  the  requirements  of        Section  2.02,  without  regard  to  the  minimum  and  multiples  specified therein for the principal        amount of Base Rate Loans, but subject to the conditions set forth in Section 5.02 (other than the        delivery of  a  Loan  Notice)  and  provided  that,  after  giving  effect  to  such  Borrowing,  the Total        Revolving Outstandings shall not exceed the Aggregate Revolving Commitments.  The Swing Line        Lender shall furnish the Parent Borrower with a copy of the applicable Loan Notice promptly after        delivering such notice to the Administrative Agent.  Each Revolving Lender shall make an amount        equal to its Applicable Percentage of the amount specified in such Loan Notice available to the        Administrative Agent in immediately available funds (and the Administrative Agent may apply        Cash Collateral available with respect to the applicable Swing Line Loan) for the account of the        Swing  Line  Lender  at  the  Administrative  Agent’s  Office  not  later  than  1:00  p.m.  on  the  day        specified in such Loan Notice, whereupon, subject to Section 2.04(c)(ii), each Revolving Lender        that  so  makes  funds  available  shall  be  deemed  to  have  made  a  Base  Rate  Loan  to  the  Parent        Borrower in such amount.  The Administrative Agent shall remit the funds so received to the Swing        Line Lender.                       (ii)   If for any reason any Swing Line Loan cannot be refinanced by such a Borrowing        of  Revolving  Loans  in  accordance  with  Section  2.04(c)(i),  the  request  for  Base  Rate  Loans        submitted by the Swing Line Lender as set forth herein shall be deemed to be a request by the        Swing Line Lender that each of the Revolving Lenders fund its risk participation in the relevant        Swing  Line  Loan  and  each  Revolving  Lender’s  payment  to  the  Administrative  Agent  for  the        account of the Swing Line Lender pursuant to Section 2.04(c)(i) shall be deemed payment in respect        of such participation.                       (iii)  If any Revolving Lender fails to make available to the Administrative Agent for        the account of the Swing Line Lender any amount required to be paid by such Revolving Lender        pursuant  to  the  foregoing  provisions  of  this  Section  2.04(c)  by  the  time  specified  in  Section        2.04(c)(i), the Swing Line Lender shall be entitled to recover from such Revolving Lender (acting        through the Administrative Agent), on demand, such amount with interest thereon for the period        from the date such payment is required to the date on which such payment is immediately available                                             60  CHAR1\1732710v2 

 

         to the Swing Line Lender at a rate per annum equal to the greater of the Federal Funds Rate and a        rate determined by the Swing Line Lender in accordance with banking industry rules on interbank        compensation,  plus  any  administrative,  processing  or  similar  fees  customarily  charged  by  the        Swing Line Lender in connection with the foregoing.  If such Lender pays such amount (with        interest and fees as aforesaid), the amount so paid shall constitute such Lender’s Loan included in        the relevant Borrowing or funded participation in the relevant Swing Line Loan, as the case may        be.   A  certificate  of  the  Swing  Line  Lender  submitted  to  any  Revolving  Lender  (through  the        Administrative Agent) with respect to any amounts owing under this clause (iii) shall be conclusive        absent manifest error.                       (iv)   Each Revolving Lender’s obligation to make Revolving Loans or to purchase and        fund risk participations in Swing Line Loans pursuant to this Section 2.04(c) shall be absolute and        unconditional  and  shall  not  be  affected  by  any  circumstance,  including  (A)  any  setoff,        counterclaim, recoupment, defense or other right that such Revolving Lender may have against the        Swing Line Lender, the Parent Borrower or any other Person for any reason whatsoever, (B) the        occurrence or continuance of a Default, or (C) any other occurrence, event or condition, whether        or not similar to any of the foregoing; provided, however, that, each Revolving Lender’s obligation        to make Revolving Loans pursuant to this Section 2.04(c) is subject to the conditions set forth in        Section 5.02.  No such purchase or funding of risk participations shall relieve or otherwise impair        the obligation of the Parent Borrower to repay Swing Line Loans, together with interest as provided        herein.          (d)    Repayment of Participations.                         (i)    At  any  time  after  any  Revolving  Lender  has  purchased  and  funded  a  risk        participation in a Swing Line Loan, if the Swing Line Lender receives any payment on account of        such  Swing  Line  Loan,  the  Swing  Line  Lender  will  distribute  to such  Revolving  Lender  its        Applicable Percentage of such payment (appropriately adjusted, in the case of interest payments,         to reflect the period of time during which such Revolving Lender’s risk participation was funded)         in the same funds as those received by the Swing Line Lender.                        (ii)   If  any  payment  received  by  the  Swing  Line  Lender  in  respect  of  principal  or         interest on any Swing Line Loan is required to be returned by the Swing Line Lender under any of         the circumstances described in Section 11.05 (including pursuant to any settlement entered into by        the Swing Line Lender in its discretion), each Revolving Lender shall pay to the Swing Line Lender        its Applicable Percentage thereof on demand of the Administrative Agent, plus interest thereon        from the date of such demand to the date such amount is returned, at a rate per annum equal to the        Federal Funds Rate.  The Administrative Agent will make such demand upon the request of the        Swing Line Lender.  The obligations of the Revolving Lenders under this clause (ii) shall survive        the payment in full of the Obligations and the termination of this Agreement.          (e)    Interest for Account of Swing Line Lender.  The Swing Line Lender shall be responsible  for invoicing the Parent Borrower for interest on the Swing Line Loans.  Until each Revolving Lender funds  its Revolving Loans that are Base Rate Loans or risk participation pursuant to this Section 2.04 to refinance  such  Revolving  Lender’s  Applicable  Percentage  of  any  Swing  Line  Loan,  interest  in  respect  of  such  Applicable Percentage shall be solely for the account of the Swing Line Lender.           (f)   Payments Directly to Swing Line Lender.  The Parent Borrower shall make all payments  of principal and interest in respect of the Swing Line Loans directly to the Swing Line Lender.                                               61  CHAR1\1732710v2 

 

   2.05  Prepayments.           (a)   Voluntary Prepayments.                       (i)    Revolving Loans, Term Loans and Incremental Term Loans.  Each Borrower may,        upon notice from such Borrower to the Administrative Agent pursuant to delivery of a Notice of        Loan Prepayment, at any time or from time to time voluntarily prepay Revolving Loans, Term        Loans and/or Incremental Term Loans, if any, 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  Eurocurrency  Rate  Loans        denominated in Dollars, (2) four (4) Business Days (or five (5), in the case of prepayment of Loans        denominated in Special Notice Currencies) prior to any date of prepayment of Eurocurrency Rate        Loans denominated in an Alternative Currency and (3) on the date of prepayment of Base Rate        Loans; (B) any such prepayment of Eurocurrency Rate Loans shall be in a principal amount of        $1,000,000 or a whole multiple of $1,000,000 in excess thereof (or, if less, the entire principal         amount thereof then outstanding); (C) any prepayment of Base Rate Loans shall be in a principal         amount of $1,000,000 or a whole multiple of $500,000 in excess thereof (or, if less, the entire         principal amount thereof then outstanding), (D) any prepayment of any Term Loan shall be applied         ratably to the remaining principal amortization payments thereof and (E) each prepayment of any         Term Loan or any Incremental Term Loan shall be applied to the Term Loans and the Incremental         Term  Loans  on  a  pro  rata  basis.   Each  such  notice  shall  specify  the  date  and  amount  of  such         prepayment and the Type(s) of Loans to be prepaid and whether the Loans to be prepaid are the         Revolving Loans, Term Loans or Incremental Term Loans, if any.  The Administrative Agent will         promptly notify each Lender of its receipt of each such notice, and of the amount of such Lender’s         Applicable Percentage of such prepayment.  If such notice is given by a Borrower, such Borrower         shall make such prepayment and the payment amount specified in such notice shall be due and         payable on the date specified therein (provided, that, any such Notice of Loan Prepayment in full        of the Loans may be conditioned on the closing of other credit facilities or any other Indebtedness,        sale  or  other  material  transaction).   Any  prepayment  of  a  Eurocurrency  Rate  Loan  shall  be        accompanied by all accrued interest on the amount prepaid, together with any additional amounts        required pursuant to Section 3.05.  Each such prepayment shall be applied to the Loans of the        Lenders  in  accordance  with  their  respective  Applicable  Percentages;  provided,  that,  any        prepayment with respect to any Incremental Term Loan shall be applied as agreed to by the Parent        Borrower and the applicable Lenders holding such Incremental Term Loans.                 (ii)   Swing Line Loans.  The Parent Borrower  may, upon notice to the Swing Line        Lender  (with  a  copy  to  the  Administrative  Agent)  pursuant  to  delivery  of  a  Notice  of  Loan        Prepayment, at any time or from time to time, voluntarily prepay Swing Line Loans in whole or in        part without premium or penalty; provided, that, (i) such notice must be received by the Swing Line        Lender and the Administrative Agent not later than 1:00 p.m. on the date of the prepayment, and        (ii) any such prepayment shall be in a minimum principal amount of $500,000 or a whole multiple        of $100,000 in excess thereof (or, if less, the entire principal thereof then outstanding).  Each such        notice shall specify the date and amount of such prepayment.  If such notice is given by the Parent        Borrower, the Parent Borrower shall make such prepayment and the payment amount specified in        such notice shall be due and payable on the date specified therein.          (b)    Mandatory Prepayments of Loans.                         (i)    Revolving Commitments.                                                                   62  CHAR1\1732710v2 

 

                       (A)    If for any reason the Total Revolving Outstandings at any time exceed the               Aggregate Revolving Commitments then in effect, the Borrowers shall immediately prepay               the  Revolving  Loans  and/or  the  Swing  Line  Loans  and/or  Cash  Collateralize  the  L/C               Obligations  in  an  aggregate  amount  equal  to  such  excess;  provided,  however,  that,  the               Borrowers shall not be required to Cash Collateralize the L/C Obligations pursuant to this               Section 2.05(b) unless after the prepayment in full of the Revolving Loans and the Swing               Line  Loans,  the  Total  Revolving Outstandings  exceed  the  Aggregate  Revolving               Commitments.                                              (B)    If the Administrative Agent notifies the Parent Borrower at any time that               the  Outstanding  Amount  of  all  Revolving  Loans  and  Letters  of  Credit  denominated  in               Alternative Currencies at such time exceeds an amount equal to one hundred five percent               (105%) of the Alternative Currency Sublimit then in effect, then, within two (2) Business               Days  after  receipt  of  such  notice,  the  Borrowers  shall  prepay  Loans  and/or  Cash               Collateralize  Letters  of  Credit  in  an  aggregate  amount  sufficient  to  reduce  such               Outstanding Amount as of such date of payment to an amount not to exceed one hundred               percent (100%) of the Alternative Currency Sublimit then in effect.                 (ii)   Asset Sales and Involuntary Dispositions.  The Borrowers shall prepay the Loans        and/or Cash Collateralize the L/C Obligations as hereafter provided in an aggregate amount equal        to  one  hundred  percent  (100%)  of  the  Net  Cash  Proceeds  received  by  any  Loan  Party  or  any        Domestic Subsidiary from all Asset Sales (other than Asset Sales for which the fair market value        of all assets sold, transferred, leased or disposed of does not exceed, with respect to any fiscal year,        seven and one-half percent (7.5%) of the total book value of the assets of the Parent Borrower and        its Subsidiaries on a consolidated basis, determined as of the date of the most recent internally        available balance sheet) and Involuntary Dispositions, in each case, to the extent such Net Cash         Proceeds are not either (x) reinvested in assets (excluding current assets as classified by GAAP)         that are useful in the business of the Parent Borrower and its Subsidiaries within three hundred         sixty (360) days of the date of such Asset Sale or Involuntary Disposition or (y) deposited in a         collateral account with the Administrative Agent, for use in connection with binding contracts for         reinvestment that have been entered into within three hundred sixty (360) days of the date of such         Asset Sale or Involuntary Disposition that are to be consummated within four hundred fifty (450)         days of the date of such Asset Sale or Involuntary Disposition.                              (iii)  Debt Issuances.  Immediately upon receipt by any Loan Party or any Subsidiary of        the Net Cash Proceeds of any Debt Issuance, the Borrowers shall prepay the Loans and/or Cash        Collateralize  the  L/C  Obligations  as  hereafter  provided  in  an  aggregate  amount  equal  to  one        hundred percent (100%) of such Net Cash Proceeds.                              (iv)   Effective Date Acquisition.  If the Effective Date Acquisition is not consummated        by  February  15,  2018,  the  Borrowers  shall  immediately  prepay  the  U.S.  Term  Loan  and  the        Multicurrency Term Loan in full.                              (v)    Application of Mandatory Prepayments.  All amounts required to be paid pursuant        to this Section 2.05(b) shall be applied as follows:                                     (A)    with respect to all amounts prepaid pursuant to Section 2.05(b)(i), first, to               Revolving Loans and Swing Line Loans and second, to Cash Collateralize the remaining               L/C Obligations; and                                                                   63  CHAR1\1732710v2 

 

                       (B)    with respect to all amounts prepaid pursuant to Sections 2.05(b)(ii), (iii)               and (iv) first on a ratable basis to the Term Loans and the outstanding Incremental Term               Loans (and to the remaining principal amortization payments on a pro rata basis), second,               ratably  to  the  L/C  Borrowings  and  the  Swing  Line  Loans,  third, to  the  outstanding               Revolving Loans, and, fourth, to Cash Collateralize the remaining L/C Obligations (with a               corresponding reduction in the Aggregate Revolving Commitments in the cases of clauses               second through fourth).                Within the parameters of the applications set forth above, prepayments shall be applied first to Base        Rate Loans and then to Eurocurrency Rate Loans in direct order of Interest Period maturities.  All        prepayments under this Section 2.05(b) shall be subject to Section 3.05, but otherwise without        premium or penalty, and shall be accompanied by interest on the principal amount prepaid through        the date of prepayment.                Notwithstanding any other provision of this Section 2.05(b), with respect to any amount of Net        Cash Proceeds subject to Section 2.05(b)(ii) or 2.05(b)(iii) attributable to a Foreign Subsidiary, in        the event the Borrowers determine in good faith in consultation with the Administrative Agent that        the upstreaming of cash equal to such amount by such Foreign Subsidiary (i) would violate any        local Laws (e.g., financial assistance, thin capitalization, corporate benefit, or the fiduciary and        statutory  duties  of  the  directors  of  such  Foreign  Subsidiary)  or  any  term  of  any  Organization        Document applicable to such Foreign Subsidiary required by Laws, or (ii) would cause any material        adverse  tax  consequence  to  the  Borrowers  and  their  Subsidiaries,  then  such  amount  shall  be        excluded from such Net Cash Proceeds; provided, that, for one (1) year from the date on which the        obligation to make the applicable prepayment arose, the Borrowers and such Foreign Subsidiary         shall use all commercially reasonable efforts to overcome or eliminate any such restrictions or         minimize  any  such  costs  of  prepayment  and,  if  successful,  shall  promptly  make  the  applicable         prepayment, unless the Borrowers shall have determined in good faith in consultation with the         Administrative  Agent  that  such  actions  would  require  the  expenditure  of  a  material  amount  of         funds.           2.06  Termination or Reduction of Aggregate Revolving Commitments.           (a)   Optional Reductions.  The Parent Borrower may, upon notice to the Administrative Agent,  terminate the Aggregate Revolving Commitments, or from time to time permanently reduce the Aggregate  Revolving Commitments to an amount not less than the Outstanding Amount of Revolving Loans, Swing  Line Loans and L/C Obligations; provided, that, (i) any such notice shall be received by the Administrative  Agent not later than 12:00 noon three (3) Business Days prior to the date of termination or reduction, (ii) any  such partial reduction shall be in an aggregate amount of $2,000,000 or any whole multiple of $1,000,000  in  excess  thereof,  (iii) the  Parent  Borrower  shall  not  terminate  or  reduce  (A)  the  Aggregate  Revolving  Commitments if, after giving effect thereto and any concurrent prepayments hereunder, the Total Revolving  Outstandings would exceed the Aggregate Revolving Commitments, (B) the Letter of Credit Sublimit if,  after  giving  effect  thereto,  the  Outstanding  Amount  of  L/C  Obligations  not  fully  Cash  Collateralized  hereunder would exceed the Letter of Credit Sublimit, (C) the Swing Line Sublimit if, after giving effect  thereto and to any concurrent prepayments hereunder the Outstanding Amount of Swing Line Loans would  exceed the Swing Line Sublimit, (D) the Alternative Currency Sublimit if, after giving effect thereto and to  any  concurrent  prepayments  hereunder  the  Outstanding  Amount  of Loans  and  L/C  Obligations  denominated in Alternative Currencies would exceed the Alternative Currency Sublimit or (E) the Foreign  Borrower  Sublimit  if,  after  giving  effect  thereto  and  to  any  concurrent  prepayments  hereunder  the  Outstanding Amount of Loans and L/C Obligations in favor of the Foreign Borrowers would exceed the  Foreign  Borrower  Sublimit,  (iv)  if,  after  giving  effect  to  any reduction  of  the  Aggregate  Revolving  Commitments,  the  Alternative  Currency  Sublimit,  the  Foreign  Borrower  Sublimit,  the  Letter  of  Credit                                             64  CHAR1\1732710v2 

 

   Sublimit or the Swing Line Sublimit exceeds the amount of the Aggregate Revolving Commitments, such  sublimit shall be automatically reduced by the amount of such excess and (v) any such notice of termination  may be conditioned on the closing of other credit facilities or any other Indebtedness, sale or other material  transaction.  The Administrative Agent will promptly notify the Revolving Lenders of any such notice of  termination or reduction of the Aggregate Revolving Commitments.  The amount of any such Aggregate  Revolving Commitment reduction shall not be applied to the Alternative Currency Sublimit, the Foreign  Borrower Sublimit or the Letter of Credit Sublimit unless otherwise specified by the Parent Borrower.  Any  reduction of the Aggregate Revolving Commitments shall be applied to the Revolving Commitment of each  Lender according to its Applicable Percentage.  All fees accrued until the effective date of any termination  of the Aggregate Revolving Commitments shall be paid on the effective date of such termination.                (b)    Notice.  The Administrative Agent will promptly notify the Lenders of any termination or  reduction of the Letter of Credit Sublimit, Swing Line Sublimit, the Foreign Borrower Sublimit or the  Aggregate  Revolving  Commitments  under  this  Section  2.06.   Upon any  reduction  of  the  Aggregate  Revolving Commitments, the Revolving Commitment of each Revolving Lender shall be reduced by such  Revolving Lender’s Applicable Percentage of such reduction amount.  All fees in respect of the Aggregate  Revolving Commitments accrued until the effective date of any termination of the Aggregate Revolving  Commitments shall be paid on the effective date of such termination.    2.07  Repayment of Loans.           (a)   Revolving Loans.  Each Borrower shall repay to the Revolving Lenders on the Maturity  Date the aggregate principal amount of all Revolving Loans owing to the Revolving Lenders outstanding  on such date.           (b)   Swing Line Loans.  The Parent Borrower shall repay each Swing Line Loan on the earlier  to occur of (i) the date within one (1) Business Day of demand therefor by the Swing Line Lender and (ii)  the Maturity Date.                  (c)   U.S. Term Loan.  The Parent Borrower shall repay the outstanding principal amount of the  U.S. Term Loan in Dollars in equal quarterly installments of $3,125,000 on the last Business Day of each  March, June, September and December, commencing on June 29, 2018, with the remaining outstanding  principal amount and any accrued and unpaid interest due and payable in full on the Maturity Date (as such  installments may hereafter be adjusted as a result of prepayments made pursuant to Section 2.05), unless  accelerated sooner pursuant to Section 9.01.                (d)    Multicurrency Term Loan.  Each applicable Borrower shall repay the outstanding principal  amount of the Multicurrency Term Loan in Euro in equal quarterly installments of EUR 1,021,655.10 on  the last Business Day of each March, June, September and December, commencing on June 29, 2018, with  the remaining outstanding principal amount and any accrued and unpaid interest due and payable in full on  the Maturity Date (as such installments may hereafter be adjusted as a result of prepayments made pursuant  to Section 2.05), unless accelerated sooner pursuant to Section 9.01.                (e)    Incremental Term Loans.  Each Borrower shall repay the outstanding principal amount of  any Incremental Term Loan in the installments on the dates and in the amounts set forth in the joinder  document(s) and/or commitment agreement(s) executed by the Borrowers and the applicable Lenders in  connection  therewith  (as  such  installments  may  hereafter  be  adjusted  as  a  result  of  prepayments  made  pursuant to Section 2.05), unless accelerated sooner pursuant to Section 9.01.                                                      65  CHAR1\1732710v2 

 

   2.08  Interest.           (a) Subject to the provisions of Section 2.08(b), (i) each Eurocurrency Rate Loan shall bear interest  on  the  outstanding  principal  amount  thereof  for  each  Interest  Period  at  a  rate  per  annum  equal  to  the  Eurocurrency Rate for such Interest Period plus the Applicable Rate; (ii) each Base Rate Loan 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; and (iii) each Swing Line Loan 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.           (b)   (i)    If any amount payable by a 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 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)   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 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  in  accordance  with  the  terms  hereof  before  and  after  judgment,  and  before  and  after  the  commencement of any proceeding under any Debtor Relief Law.           2.09  Fees.           In addition to certain fees described in Sections 2.03(i) and (j):                 (a)    Commitment Fee.  The Parent Borrower shall pay to the Administrative Agent, a        commitment fee (the “Commitment Fee”) in Dollars for the account of each Revolving Lender in        accordance with its Applicable Percentage, at a rate per annum equal to the product of (A) the        Applicable  Rate  times  (B)  the  actual  daily  amount  by  which  the Aggregate  Revolving        Commitments exceed the  sum of (1) the Outstanding Amount of Revolving Loans and (2) the         Outstanding Amount of L/C Obligations, subject to adjustment as provided in Section 2.15. The        Commitment Fee shall accrue at all times during the Availability Period, including at any time        during which one or more of the conditions in Article V is not met, and shall be due and payable        quarterly  in  arrears  on  the  last  Business  Day  of  each  March,  June,  September  and  December,        commencing with the first such date to occur after the Effective Date, and on the Maturity Date.        The Commitment Fee shall be calculated quarterly in arrears, and if there is any change in the        Applicable Rate during any quarter, the actual daily amount shall be computed and multiplied by        the Applicable Rate separately for each period during such quarter that such Applicable Rate was        in effect.  For purposes of clarification, Swing Line Loans shall not be considered outstanding for        purposes of determining the unused portion of the Aggregate Revolving Commitments.                       (b)    Fee Letter.  The Parent Borrower shall pay to Bank of America (in its capacity as        the L/C Issuer) and the Administrative Agent for their own respective accounts fees in the amounts                                              66  CHAR1\1732710v2 

 

         and at the times specified in the Fee Letter.  Such fees shall be fully earned when paid and shall be         non-refundable for any reason whatsoever.                 2.10  Computation of Interest and Fees; Retroactive Adjustments of Applicable Rate.           (a)   All  computations  of  interest  for  Base  Rate  Loans  (including  the  Base  Rate  Loans  determined by reference to the Eurocurrency Rate) shall be made on the basis of a year of three hundred  sixty five (365) or three hundred sixty six (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) or, in the case of interest in respect of Loans denominated in Alternative Currencies as to which  market practice differs from the foregoing, in accordance with such market practice.  Interest shall accrue  on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof,  for the day on which the Loan or such portion is paid; provided, that, any Loan that is repaid on the same  day on which it is made shall, subject to Section 2.12(a), bear interest for one (1) day.  Each determination  by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all  purposes, absent manifest error.           (b)   If, as a result of any restatement of or other adjustment to the financial statements of the  Parent  Borrower  or  for  any  other  reason,  the  Parent  Borrower  or  the  Lenders  determine  that  (i)  the  Consolidated Total Leverage Ratio as calculated by the Parent Borrower as of any applicable date was  inaccurate and (ii) a proper calculation of the Consolidated Total Leverage Ratio would have resulted in  higher pricing for such period, the Parent Borrower shall immediately and retroactively be obligated to pay  to the Administrative Agent for the account of the applicable Lenders or the L/C Issuer, as the case may be,  promptly on demand by the Administrative Agent (or, after the occurrence of an actual or deemed entry of  an  order  for  relief  with  respect  to  any  Borrower  under  the  Bankruptcy  Code  of  the  United  States,  automatically and without further action by the Administrative Agent, any Lender or the L/C Issuer), an  amount equal to the excess of the amount of interest and fees that should have been paid for such period  over the amount of interest and fees actually paid for such period.  This paragraph shall not limit the rights  of the Administrative Agent, any Lender or the L/C Issuer, as the case may be, under Section 2.03(c)(iii),  2.03(i) or 2.08(b) or under Article IX.  The Parent Borrower’s obligations under this paragraph shall survive  the  termination  of  the  Commitments  of  all  of  the  Lenders  and  the  repayment  of  all  other  Obligations  hereunder.    2.11  Evidence of Debt.           (a)   The Credit Extensions made by each Lender shall be evidenced by one or more accounts  or records maintained by such Lender and by the Administrative Agent in the ordinary course of business.   The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent  manifest error of the amount of the Credit Extensions made by the Lenders to each 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 each 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 accounts and records of the Administrative Agent in respect of such matters, the accounts and records  of the Administrative Agent shall control in the absence of manifest error.  Upon the request of any Lender  made through the Administrative Agent, each Borrower shall execute and deliver to such Lender (through  the Administrative Agent) a promissory note, which shall evidence such Lender’s Loans in addition to such  accounts or records.  Each such promissory note shall (i) in the case of Revolving Loans, be in the form of  Exhibit 2.11(a)(i) (a “Revolving Note”), (ii) in the case of Swing Line Loans, be in the form of Exhibit  2.11(a)(ii)  (a  “Swing  Line  Note”),  (iii)  in  the  case  of  the  U.S.  Term  Loan,  be  in  the  form  of  Exhibit  2.11(a)(iii) (a “U.S. Term Note”), (iv) in the case of the Multicurrency Term Loan, be in the form of Exhibit                                             67  CHAR1\1732710v2 

 

   2.11(a)(iv) (a “Multicurrency Term Note”) and (v) in the case of an Incremental Term Loan, if any, be in  the form of Exhibit 2.11(a)(v) (an “Incremental Term Note”).  Each Lender may attach schedules to its  Note and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and payments  with respect thereto.           (b)   In  addition  to  the  accounts  and  records  referred  to  in  Section  2.11(a),  each  Revolving  Lender  and  the  Administrative  Agent  shall  maintain  in  accordance  with  its  usual  practice  accounts  or  records evidencing the purchases and sales by such Revolving Lender of participations in Letters of Credit  and Swing Line Loans.  In the event of any conflict between the accounts and records maintained by the  Administrative Agent and the accounts and records of any Lender in respect of such matters, the accounts  and records of the Administrative Agent shall control in the absence of manifest error.     2.12  Payments Generally; Administrative Agent’s Clawback.           (a)   General.  All payments to be made by each 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 and except with respect to principal of and interest on Loans denominated in an  Alternative Currency, all payments by each Borrower hereunder shall be made to the Administrative Agent,  for the account of the respective Lenders to which such payment is owed, at the applicable Administrative  Agent’s Office in Same Day Funds not later than 2:00 p.m. on the date specified herein.  Except as otherwise  expressly provided herein, all payments by each Borrower hereunder with respect to principal and interest  on  Loans  denominated  in  an  Alternative  Currency  shall  be  made  to  the  Administrative  Agent,  for  the  account of the respective Lenders to which such payment is owed, at the applicable Administrative Agent’s  Office in such Alternative Currency and in Same Day Funds not later than the Applicable Time specified  by the Administrative Agent on the dates specified herein.  Without limiting the generality of the foregoing,  the Administrative Agent may require that any payments due under this Agreement be made in the United  States.  If, for any reason, any Borrower is prohibited by any Law from making any required payment  hereunder in the applicable Alternative Currency, such Borrower shall make such payment in Dollars in the  Dollar Equivalent of such Alternative Currency payment amount.  The Administrative Agent will promptly  distribute to each Lender its Applicable Percentage (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  (i) after  2:00 p.m.,  in  the  case  of  payments  in  Dollars,  or  (ii) after  the  Applicable Time specified by the Administrative Agent in the case of payments in an Alternative Currency,  shall in each case be deemed received on the next succeeding Business Day and any applicable interest or  fee shall continue to accrue.  If any payment to be made by any 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 in computing interest or fees, as the case may be.                   (b)  (i)  Funding by Lenders; Presumption by Administrative Agent.  Unless the Administrative  Agent  shall  have  received  notice  from  a  Lender  prior  to  the  proposed  date  of  any  Borrowing  of  Eurocurrency Rate Loans (or, in the case of any Borrowing of Base Rate Loans, prior to 12:00 noon on the  date  of  such  Borrowing)  that  such  Lender  will  not  make  available  to  the  Administrative  Agent  such  Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made such  share available on such date in accordance with Section 2.02 (or, in the case of any Borrowing of Base Rate  Loans, that such Lender has made such share available in accordance with and at the time required by  Section 2.02) and may, in reliance upon such assumption, make available to the applicable 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 applicable Borrower severally  agree to pay to the Administrative Agent forthwith on demand such corresponding amount in immediately  available  funds  with  interest  thereon,  for  each  day  from  and  including  the  date  such  amount  is  made  available to such Borrower to but excluding the date of payment to the Administrative Agent, at (A) in the                                             68  CHAR1\1732710v2 

 

   case of a payment to be made by such Lender, the Overnight Rate and (B) in the case of a payment to be  made by such Borrower, the interest rate applicable to Base Rate Loans.  If the applicable 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 such Borrower the amount of such interest paid by such  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 Loan included in such Borrowing.  Any  payment by such Borrower shall be without prejudice to any claim such Borrower may have against a  Lender that shall have failed to make such payment to the Administrative Agent.                       (ii)   Payments  by  Borrowers;  Presumptions  by  Administrative  Agent.   Unless  the        Administrative Agent shall have received notice from a Borrower prior to the date on which any        payment  is  due  to  the  Administrative  Agent  for  the  account  of  the  Lenders  or  the  L/C  Issuer        hereunder that such Borrower will not make such payment, the Administrative Agent may assume         that  such  Borrower  has  made  such  payment  on  such  date  in  accordance  herewith  and  may,  in         reliance upon such assumption, distribute to the Lenders or the L/C Issuer, as the case may be, the         amount due.  In such event, if a Borrower has not in fact made such payment, then each of the         Lenders or the L/C Issuer, as the case may be, severally agrees to repay to the Administrative Agent         forthwith on demand the amount so distributed to such Lender or the L/C Issuer, 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 Overnight         Rate.                        A notice of the Administrative Agent to any Lender or the applicable Borrower with respect         to any amount owing under this Section 2.12(b) shall be conclusive, absent manifest error.           (c)   Failure  to  Satisfy  Conditions  Precedent.   If  any  Lender  makes  available  to  the  Administrative Agent funds for any 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 a Borrower by the Administrative Agent because  the  conditions  to  the  applicable  Credit  Extension  set  forth  in Article  V  are  not  satisfied  or  waived  in  accordance  with  the  terms  hereof,  the  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 Loans,  to fund participations in Letters of Credit and Swing Line Loans and to make payments pursuant to Section  11.04(c)  are  several  and  not  joint.   The  failure  of  any  Lender to  make  any  Loan,  to  fund  any  such  participation or to make any payment under Section 11.04(c) on any date required hereunder shall not  relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be  responsible for the failure of any other Lender to so make its Loan, to purchase its participation or to make  its payment under Section 11.04(c).           (e)   Funding Source.  Nothing herein shall be deemed to obligate any Lender to obtain the funds  for any 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 Loan in any particular place or manner.    2.13  Sharing of Payments by Lenders.           If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment  in  respect  of  any  principal  of  or  interest  on  any  of  the  Loans made  by  it,  or  the  participations  in  L/C  Obligations or in Swing Line Loans held by it resulting in such Lender’s receiving payment of a proportion  of the aggregate amount of such Loans or participations and accrued interest thereon greater than its pro  rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the                                             69  CHAR1\1732710v2 

 

   Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and  subparticipations  in  L/C  Obligations  and  Swing  Line  Loans  of  the  other  Lenders,  if  such  Lender  is  a  Revolving  Lender,  or  make  such  other  adjustments  among  the  group  of  Revolving  Lenders,  Lenders  providing either of the Term Loans or Lenders providing Incremental Term Loans, as applicable, or as shall  be equitable, so that the benefit of all such payments shall be shared by the Revolving Lenders, Lenders  providing either of the Term Loans or Lenders providing Incremental Term Loans, as applicable, ratably in  accordance with the aggregate amount of principal of and accrued interest on their respective Loans and  other amounts owing them; provided, that:                       (i)    if any such participations or subparticipations are purchased and all or any portion        of the payment giving rise thereto is recovered, such participations or subparticipations shall be        rescinded and the purchase price restored to the extent of such recovery, without interest; and                       (ii)   the  provisions  of  this  Section  2.13  shall  not  be  construed  to  apply  to  (x)  any        payment made by or on behalf of a Borrower pursuant to and in accordance with the express terms        of this Agreement (including the application of funds arising from the existence of a Defaulting        Lender),  (y)  the  application  of  Cash  Collateral  provided  in  Section  2.14,  or  (z)  any  payment        obtained by a Lender as consideration for the assignment of or sale of a participation in any of its        Loans or subparticipations in L/C Obligations or Swing Line Loans to any assignee or participant,        other  than  an  assignment  to  the  Parent  Borrower  or  any  Subsidiary thereof (as to which the        provisions of this Section 2.13 shall apply).                Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do so under  applicable  Law,  that  any Lender  acquiring  a  participation pursuant  to  the  foregoing  arrangements  may  exercise against such Loan Party rights of setoff and counterclaim with respect to such participation as fully  as if such Lender were a direct creditor of such Loan Party in the amount of such participation.    2.14  Cash Collateral.           (a)   Certain Credit Support Events.  If (i) the L/C Issuer has honored any full or partial drawing  request under any Letter of Credit and such drawing has resulted in an L/C Borrowing, (ii) as of the Letter  of Credit Expiration Date, any L/C Obligation for any reason remains outstanding, (iii) any Borrower shall  be required to provide Cash Collateral pursuant to Section 9.01, or (iv) there shall exist a Defaulting Lender,  the Parent Borrower shall immediately (in the case of clause (iii) above) or within one (1) Business Day (in  all  other  cases)  following  any  request  by  the  Administrative  Agent  or  the  L/C  Issuer,  provide  Cash  Collateral in an amount not less than the applicable Minimum Collateral Amount (determined in the case  of Cash Collateral provided pursuant to clause (iv) above, after giving effect to Section 2.15(a)(iv) and any  Cash Collateral provided by the Defaulting Lender).            (b)   Grant of Security Interest.  Each Borrower, and to the extent provided by any Defaulting  Lender, such Defaulting Lender, hereby grants to (and subjects to the control of) the Administrative Agent,  for the benefit of the Administrative Agent, the L/C Issuer and the Lenders, and agrees to maintain, a first  priority security interest in all such cash, deposit accounts and all balances therein, and all other property  so  provided  as  collateral  pursuant  hereto,  and  in  all  proceeds of  the  foregoing,  all  as  security  for  the  obligations to which such Cash Collateral may be applied pursuant to Section 2.14(c).  If at any time the  Administrative Agent determines that Cash Collateral is subject to any right or claim of any Person other  than the Administrative Agent or the L/C Issuer as herein provided, other than Permitted Liens, or that the  total amount of such Cash Collateral is less than the Minimum Collateral Amount, each Borrower will,  promptly upon demand by the Administrative Agent, pay or provide to the Administrative Agent additional  Cash Collateral in an amount sufficient to eliminate such deficiency.  All Cash Collateral (other than credit  support  not  constituting  funds  subject  to  deposit)  shall  be  maintained  in  blocked,  non-interest  bearing                                             70  CHAR1\1732710v2 

 

   deposit accounts at Bank of America.  Each Borrower shall pay on demand therefor from time to time all  customary  account  opening,  activity  and  other  administrative  fees  and  charges  in  connection  with  the  maintenance and disbursement of Cash Collateral.         (c)    Application.  Notwithstanding anything to the contrary contained in this Agreement, Cash  Collateral provided under any of this Section 2.14 or Sections 2.03, 2.04, 2.05, 2.15, 9.01 or 9.02 in respect  of Letters of Credit shall be held and applied to the satisfaction of the specific L/C Obligations, obligations  to fund participations therein (including, as to Cash Collateral provided by a Defaulting Lender, any interest  accrued on such obligation) and other obligations for which the Cash Collateral was so provided, prior to  any other application of such property as may otherwise be provided for herein.           (d)   Release.  Cash Collateral (or the appropriate portion thereof) provided to reduce Fronting  Exposure or to secure other obligations shall be released promptly following (i) the elimination of the  applicable  Fronting  Exposure  or  other  obligations  giving  rise  thereto  (including  by  the  termination  of  Defaulting Lender status of the applicable Lender (or, as appropriate, its assignee following compliance  with Section 11.06(b)(v))) or (ii) the determination by the Administrative Agent and the L/C Issuer that  there exists excess Cash Collateral; provided, however, that, the Person providing Cash Collateral and the  L/C Issuer may agree that Cash Collateral shall not be released but instead held to support future anticipated  Fronting Exposure or other obligations.   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 the definition of “Required Lenders” and Section 11.01.                (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  IX  or otherwise)  or  received  by  the        Administrative Agent from a Defaulting Lender pursuant to Section 11.08 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,        to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to the L/C        Issuer or the Swing Line Lender hereunder; third, to Cash Collateralize the L/C Issuer’s Fronting        Exposure with respect to such Defaulting Lender in accordance with Section 2.14; fourth, as the        Parent Borrower may request (so long as no Default or Event of Default exists), to the funding of        any  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; fifth, if so determined by        the Administrative Agent and the Parent Borrower, to be held in a deposit account and released pro        rata in  order  to  (x)  satisfy  such  Defaulting  Lender’s  potential  future  funding  obligations  with         respect to Loans under this Agreement and (y) Cash Collateralize the L/C Issuer’s future Fronting         Exposure with respect to such Defaulting Lender with respect to future Letters of Credit issued         under this Agreement, in accordance with Section 2.14; sixth, to the payment of any amounts owing        to the Lenders, the L/C Issuer or Swing Line Lender as a result of any judgment of a court of        competent jurisdiction obtained by any Lender, the L/C Issuer or the Swing Line Lender against        such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this        Agreement; seventh,  so  long  as  no  Default  or  Event  of  Default  exists,  to  the  payment  of  any                                             71  CHAR1\1732710v2 

 

         amounts owing to any Borrower as a result of any judgment of a court of competent jurisdiction        obtained by any Borrower against such Defaulting Lender as a result of such Defaulting Lender’s        breach  of  its  obligations  under  this  Agreement;  and eighth,  to  such  Defaulting  Lender  or  as        otherwise directed by a court of competent jurisdiction; provided, that, if (x) such payment is a        payment  of  the  principal  amount  of  any  Loans  or  L/C  Borrowings in  respect  of  which  such        Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made or the        related Letters of Credit were issued at a time when the conditions set forth in Section 5.02 were        satisfied or waived, such payment shall be applied solely to pay the Loans of, and L/C Obligations        owed to, all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of        any Loans of, or L/C Obligations owed to, such Defaulting Lender until such time as all Loans and        funded  and  unfunded  participations  in  L/C  Obligations  and  Swing  Line  Loans  are  held  by  the        Lenders pro rata in accordance with the Commitments hereunder without giving effect to Section        2.15(a)(iv). Any payments, prepayments or other amounts paid or payable to a Defaulting Lender        that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral        pursuant  to  this  Section  2.15(a)(ii)  shall  be  deemed  paid  to  and  redirected  by  such  Defaulting        Lender, and each Lender irrevocably consents hereto.                  (iii)  Certain Fees.                       (A)   No Defaulting Lender shall be entitled to receive any fee payable under               Section 2.09(a) for any period during which that Lender is a Defaulting Lender (and no               Borrower shall be required to pay any such fee that otherwise would have been required to               have been paid to that Defaulting Lender).                       (B)    Each Defaulting Lender shall be entitled to receive Letter of Credit Fees               for any period during which that Lender is a Defaulting Lender only to the extent allocable               to  its  Applicable  Percentage  of the  stated  amount  of  Letters  of  Credit  for  which  it has               provided Cash Collateral pursuant to Section 2.14.                         (C)    With respect to any fee payable under Section 2.09(a) or any Letter of               Credit Fee not required to be paid to any Defaulting Lender pursuant to clause (A) or (B)               above, the Parent Borrower shall (x) pay to each Non-Defaulting Lender that portion of               any such fee otherwise payable to such Defaulting Lender with respect to such Defaulting               Lender’s participation in L/C Obligations or Swing Line Loans that has been reallocated               to such Non-Defaulting Lender pursuant to Section 2.15(a)(iv), (y) pay to the L/C Issuer               and the Swing Line Lender, as applicable, the amount of any such fee otherwise payable               to  such  Defaulting  Lender  to  the  extent  allocable  to  the  L/C  Issuer’s  or  Swing  Line               Lender’s Fronting Exposure to such Defaulting Lender, and (z) not be required to pay the               remaining amount of any such fee.                (iv)   Reallocation of Applicable Percentages to Reduce Fronting Exposure.  All or any        part of such Defaulting Lender’s participation in L/C Obligations and Swing Line Loans shall be        reallocated  among  the  Non-Defaulting  Lenders  in  accordance  with  their  respective  Applicable        Percentages (calculated without regard to such Defaulting Lender’s Revolving Commitment) but        only to the extent that (x) the conditions set forth in Section 5.02 are satisfied at the time of such        reallocation  (and,  unless  the  Parent  Borrower  shall  have  otherwise  notified  the  Administrative        Agent at such time, the Borrowers shall be deemed to have represented and warranted that such        conditions are satisfied at such time), and (y) such reallocation does not cause, with respect to any        Non-Defaulting  Lender  that  is  a Revolving  Lender,  the  aggregate  Outstanding  Amount  of  the        Revolving Loans of such non-Defaulting Lender, plus such Non-Defaulting Lender’s Applicable        Percentage of the Outstanding Amount of all L/C Obligations, plus such Non-Defaulting Lender’s                                             72  CHAR1\1732710v2 

 

         Applicable Percentage of the Outstanding Amount of all Swing Line Loans to exceed such Non-       Defaulting Lender’s Revolving Commitment.  Subject to Section 11.22, no reallocation hereunder        shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender        arising  from  that  Lender  having  become  a  Defaulting  Lender,  including  any  claim  of  a  Non-       Defaulting Lender as a result of such Non-Defaulting Lender’s increased exposure following such        reallocation.                (v)    Cash Collateral, Repayment of Swing Line Loans.  If the reallocation described in        Section 2.15(a)(iv) cannot, or can only partially, be effected, the Parent Borrower shall, without        prejudice to any right or remedy available to it hereunder or under applicable Law, (x) first, prepay        Swing  Line  Loans  in  an  amount  equal  to  the  Swing  Line  Lenders’ Fronting  Exposure  and  (y)        second, Cash Collateralize the L/C Issuer’s Fronting Exposure in accordance with the procedures        set forth in Section 2.14.          (b)    Defaulting Lender Cure.  If the Parent Borrower, the Administrative Agent, the Swing Line  Lender and the L/C Issuer agree in writing that a Revolving Lender is no longer a Defaulting Lender, the  Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such  notice and subject to any conditions set forth therein (which may include arrangements with respect to any  Cash  Collateral),  that  Revolving  Lender  will,  to  the  extent  applicable,  purchase  at  par  that  portion  of  outstanding  Loans  of  the  other  Lenders  or  take  such  other  actions  as  the  Administrative  Agent  may  determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit  and Swing Line Loans to be held on a pro rata basis by the Revolving Lenders in accordance with their  Applicable Percentages (without giving effect to Section 2.15(a)(iv)), whereupon such Revolving Lender  will cease to be a Defaulting Lender; provided, that, no adjustments will be made retroactively with respect  to fees accrued or payments made by or on behalf of the Parent Borrower while that Revolving Lender was  a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the  affected parties, no change hereunder from Defaulting Lender to Revolving Lender will constitute a waiver  or  release  of  any  claim  of  any  party  hereunder  arising  from  that  Revolving  Lender’s  having  been  a  Defaulting Lender.   2.16  Foreign Borrowers.         (a)    Effective as of the First Amendment Effective Date, Knoll Denmark, Knoll Europe and  Muuto A/S shall each be a “Foreign Borrower” hereunder and may receive Loans for its account on the  terms and conditions set forth in this Agreement.                (b)    The Parent Borrower may at any time, upon not less than fifteen (15) Business Days’ notice  from the Parent Borrower to the Administrative Agent (or such shorter period as may be agreed by the  Administrative Agent in its sole discretion), designate any wholly-owned (directly or indirectly) Foreign  Subsidiary of the Parent Borrower (an “Applicant Borrower”) as a Foreign Borrower to receive Loans  hereunder by delivering to the Administrative Agent (which shall promptly deliver counterparts thereof to  each Lender) a duly executed notice and agreement in substantially the form of Exhibit 2.16-1 (a “Foreign  Borrower Request and Assumption Agreement”).  The parties hereto acknowledge and agree that prior to  any  Applicant  Borrower  becoming  entitled  to  utilize  the  credit facilities  provided  for  herein  (i)  the  Administrative  Agent  and  the  Lenders  that  are  to  provide  Commitments  and/or  Loans  in  favor  of  an  Applicant Borrower must each agree to such Applicant Borrower becoming a Foreign Borrower and (ii)  the Administrative Agent and such Lenders shall have received such supporting resolutions, incumbency  certificates, opinions of counsel, “know your customer” information and other documents or information,  in form, content and scope reasonably satisfactory to the Administrative Agent, as may be required by the  Administrative Agent in its reasonable discretion, and Notes signed by such new Borrowers to the extent  any  Lenders  so  require  (the  requirements  in  clauses  (i)  and  (ii)  hereof,  the  “Designated  Borrower                                             73  CHAR1\1732710v2 

 

   Requirements”).  If the Designated Borrower Requirements are met, then promptly following receipt of all  such  requested  resolutions,  incumbency  certificates,  opinions  of  counsel,  “know  your  customer”  information  and  other  documents  or  information,  the  Administrative  Agent  shall  send  a  notice  in  substantially the form of Exhibit 2.16-2 (a “Foreign Borrower Notice”) to the Parent Borrower and the  Lenders specifying the effective date (which shall be the date set forth by the Parent Borrower in the Foreign  Borrower Request and Assumption Agreement (provided, that, such date shall not precede the date on  which the Designated Borrower Requirements were met or otherwise be retroactive) or such later date as  the Parent Borrower agrees) upon which the Applicant Borrower shall constitute a Foreign Borrower for  purposes hereof, whereupon each of the Lenders agrees to permit such Foreign Borrower to receive Loans  hereunder, on the terms and conditions set forth herein, and each of the parties agrees that such Foreign  Borrower otherwise shall be a Borrower for all purposes of this Agreement; provided, that, no Loan Notice  or Letter of Credit Application may be submitted by or on behalf of such Foreign Borrower until the date  five (5) Business Days after such effective date.                  (c)   Each Subsidiary of the Parent Borrower that is or becomes a “Foreign Borrower” pursuant  to this Section 2.16 hereby irrevocably appoints the Parent Borrower as its agent for all purposes relevant  to this Agreement and each of the other Loan Documents, including (i) the giving and receipt of notices,  (ii) the execution and delivery of all documents, instruments and certificates contemplated herein and all  modifications hereto, and (iii) the receipt of the proceeds of any Loans made by the Lenders to any such  Foreign Borrower hereunder.  Any acknowledgment, consent, direction, certification or other action which  might otherwise be valid or effective only if given or taken by all Borrowers, or by each Borrower acting  singly, shall be valid and effective if given or taken only by the Parent Borrower, whether or not any such  other Borrower joins therein.  Any notice, demand, consent, acknowledgement, direction, certification or  other communication delivered to the Parent Borrower in accordance with the terms of this Agreement shall  be deemed to have been delivered to each Foreign Borrower.                  (d)   The Parent Borrower may from time to time, upon not less than fifteen (15) Business Days’  notice from the Parent Borrower to the Administrative Agent (or such shorter period as may be agreed by  the Administrative Agent in its sole discretion), terminate a Foreign Borrower’s status as such; provided,  that, there are no outstanding Loans payable by such Foreign Borrower, or other amounts payable by such  Foreign Borrower on account of any Loans made to it, as of the effective date of such termination. The  Administrative Agent will promptly notify the Lenders of any such termination of a Foreign Borrower’s  status.    2.17  Designated Lenders.           Each of the Administrative Agent, the L/C Issuer, the Swing Line Lender and each Lender at its  option may make any Credit Extension or otherwise perform its obligations hereunder through any Lending  Office  (each,  a  “Designated  Lender”);  provided,  that,  any  exercise  of  such  option  shall  not  affect  the  obligation of such Borrower to repay any Credit Extension in accordance with the terms of this Agreement.   Any Designated Lender shall be considered a Lender; provided, that, in the case of an Affiliate or branch  of a Lender, such provisions that would be applicable with respect to Credit Extensions actually provided  by such Affiliate or branch of such Lender shall apply to such Affiliate or branch of such Lender to the  same extent as such Lender; provided, that, for the purposes only of voting in connection with any Loan  Document,  any  participation  by  any  Designated  Lender  in  any  outstanding  Credit  Extension  shall  be  deemed a participation of such Lender.  Notwithstanding the designation by any of the Administrative  Agent, the L/C Issuer, the Swing Line Lender or Lender of a Designated Lender, the Loan Parties and the  Administrative Agent shall be permitted to deal solely and directly with the Administrative Agent, the L/C  Issuer, the Swing Line Lender or such Lender in connection with such its rights and obligations under this  Agreement.                                                      74  CHAR1\1732710v2 

 

   2.18  Nature of Obligations.           Except as specifically provided herein, the Obligations of the Parent Borrower, Knoll Overseas and  each of the Foreign Borrowers shall be joint and several in nature (unless such joint and several liability (i)  shall result in adverse tax consequences to Knoll Overseas, any such Foreign Borrower or any other Loan  Party or (ii) is not permitted by any Law applicable to such Foreign Borrower, in which either such case,  the liability of such Foreign Borrower shall be several in nature) regardless of which such Person actually  receives Credit Extensions hereunder or the amount of such Credit Extensions received or the manner in  which the Administrative Agent, the L/C Issuer or any Lender accounts for such Credit Extensions on its  books and records.  Notwithstanding anything contained to the contrary herein or in any Loan Document  (including  any  Foreign  Borrower  Request  and  Assumption  Agreement),  (A)  no  Foreign  Subsidiary,  Excluded  Domestic  Subsidiary  (including,  for  the  avoidance  of  doubt,  Knoll  Overseas),  or  Domestic  Subsidiary of a Foreign Subsidiary shall be obligated with respect to any Obligations of the Parent Borrower  or of any Domestic Subsidiary, (B) the Obligations owed by a Foreign Borrower that is a Foreign Subsidiary  shall be several and not joint with the Obligations of the Parent Borrower or of any Domestic Subsidiary  and (C) no Foreign Subsidiary, Excluded Domestic Subsidiary (including, for the avoidance of doubt, Knoll  Overseas), or Domestic Subsidiary of a Foreign Subsidiary shall be obligated as a Guarantor under Article  IV with respect to the Obligations of the Parent Borrower or any Domestic Subsidiary.                                          ARTICLE III                                                                    TAXES, YIELD PROTECTION AND ILLEGALITY    3.01  Taxes.             (a)   Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes.                  (i)    Any and all payments by or on account of any obligation of any Loan Party under        any Loan Document shall be made without deduction or withholding for any Taxes, except as        required by applicable Laws.  If any applicable Laws (as determined in the good faith discretion of        the Administrative Agent) require the deduction or withholding of any Tax from any such payment        by the Administrative Agent or a Loan Party, then the Administrative Agent or such Loan Party        shall be entitled to make such deduction or withholding, upon the basis of the information and        documentation to be delivered pursuant to Section 3.01(e).                (ii)   If any Loan Party or the Administrative Agent shall be required by the Internal        Revenue  Code  to  withhold  or deduct  any  Taxes,  including  both  United  States  federal  backup        withholding and withholding taxes, from any payment, then (A) the Administrative Agent or such        Loan Party shall withhold or make such deductions as are determined by the Administrative Agent        or such Loan Party, as applicable, to be required based upon the information and documentation it        has received pursuant to Section 3.01(e); provided, that, any Loan Party making such withholding        or  deduction  provides  prompt  written  notice  thereof  to  the  Administrative  Agent,  (B)  the        Administrative Agent or such Loan Party, as applicable, shall timely pay the full amount withheld        or deducted to the relevant Governmental Authority in accordance with the Internal Revenue Code,        and (C) to the extent that the withholding or deduction is made on account of Indemnified Taxes,        the sum payable by the applicable Loan Party shall be increased as necessary so that after any        required withholding or the making of all required deductions (including deductions applicable to        additional sums payable under this Section 3.01) the applicable Recipient receives an amount equal        to the sum it would have received had no such withholding or deduction been made.                                              75  CHAR1\1732710v2 

 

                (iii)  If any Loan Party or the Administrative Agent shall be required by any applicable        Laws other than the Internal Revenue Code to withhold or deduct any Taxes from any payment,        then (A) such Loan Party or the Administrative Agent, as required by such Laws, shall withhold or        make  such  deductions  as  are  determined  by  it  to  be  required  based  upon  the  information  and        documentation  it  has  received  pursuant  to  Section  3.01(e),  (B) such  Loan  Party  or  the        Administrative  Agent,  to  the  extent  required  by  such  Laws,  shall  timely  pay  the  full  amount        withheld or deducted to the relevant Governmental Authority in accordance with such Laws, and        (C) to the extent that the withholding or deduction is made on account of Indemnified Taxes, the        sum payable by the applicable Loan Party shall be increased as necessary so that after any required        withholding or the making of all required deductions (including deductions applicable to additional        sums payable under this Section 3.01) the applicable Recipient receives an amount equal to the sum        it would have received had no such withholding or deduction been made.          (b)   Payment of Other Taxes by the Borrowers.  Without limiting the provisions of Section  3.01(a),  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.          (c)   Tax Indemnifications.  (i) Each of the Loan Parties shall, and does hereby, jointly and  severally indemnify each Recipient, and shall make payment in respect thereof 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 3.01) 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, whether or not such Indemnified Taxes were correctly or legally  imposed  or  asserted  by  the  relevant  Governmental  Authority.   A certificate  as  to  the  amount  of  such  payment or liability delivered to the Parent Borrower by a Lender or the L/C Issuer (with a copy to the  Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender or the  L/C Issuer, shall be conclusive absent manifest error.  Each of the Loan Parties shall, and does hereby,  jointly and severally indemnify the Administrative Agent, and shall make payment in respect thereof within  ten (10) days after demand therefor, for any amount which a Lender or the L/C Issuer for any reason fails  to pay indefeasibly to the Administrative Agent as required pursuant to Section 3.01(c)(ii) below.                (ii)   Each of the Lenders and the L/C Issuer shall, and does hereby, severally indemnify,        and  shall  make  payment  in  respect  thereof  within  ten  (10)  days after  demand  therefor,  (x)  the        Administrative Agent against any Indemnified Taxes attributable to such Lender or the L/C Issuer        (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), (y)        the Administrative Agent and the Loan Parties, as applicable, against any Taxes attributable to such        Lender’s failure to comply with the provisions of Section 11.06(d) relating to the maintenance of a        Participant Register and (z) the Administrative Agent and the Loan Parties, as applicable, against        any Excluded Taxes attributable to such Lender or the L/C Issuer, in each case, that are payable or         paid by the Administrative Agent or a Loan Party 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 of the Lenders and the L/C Issuer hereby authorizes         the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender         or the L/C Issuer, as the case may be, under this Agreement or any other Loan Document against         any amount due to the Administrative Agent under this clause (ii).                                                76  CHAR1\1732710v2 

 

         (d)    Evidence of Payments.  As soon as practicable after any payment of Taxes by any Borrower  or by the Administrative Agent to a Governmental Authority as provided in this Section 3.01, the Parent  Borrower shall deliver to the Administrative Agent or the Administrative Agent shall deliver to the Parent  Borrower, as the case may be, 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 Parent Borrower or the Administrative Agent, as  the case may be.          (e)   Status of Lenders; Tax Documentation.                 (i)    Any Lender that is entitled to an exemption from or reduction of withholding Tax        with respect to payments made under any Loan Document shall deliver to the Borrowers and the        Administrative  Agent,  at  the  time  or  times  reasonably  requested  by  the  Borrowers  or  the        Administrative Agent, such properly completed and executed documentation reasonably requested        by a 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 a Borrower or the Administrative Agent, shall deliver such other documentation prescribed by        applicable Law or reasonably requested by a Borrower or the Administrative Agent as will enable        the Borrowers 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 3.01(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 a Borrower is a        U.S. Person,                       (A)    any Lender that is a U.S. Person shall deliver to such 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  such               Borrower or the Administrative Agent), executed originals 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  such  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  such  Borrower  or  the  Administrative  Agent),  whichever  of  the  following  is               applicable:                             (I)    in the case of a Foreign Lender claiming the benefits of an income               tax treaty to which the United States is a party (x) with respect to payments of interest               under  any  Loan  Document,  executed  originals  of  IRS  Form  W-8BEN or  W-8BEN-E               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 or W-8BEN-E 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;                                              77  CHAR1\1732710v2 

 

                             (II)   executed originals of IRS Form W-8ECI;                             (III)  in  the  case  of  a  Foreign  Lender  claiming  the  benefits  of  the               exemption for portfolio interest under Section 881(c) of the Internal Revenue Code, (x) a               certificate substantially in the form of Exhibit 3.01(e)-1 to the effect that such Foreign               Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Internal Revenue               Code,  a  “10  percent  shareholder”  of  such  Borrower  within  the  meaning  of  Section               881(c)(3)(B) of the Internal Revenue Code, or a “controlled foreign corporation” described               in  Section  881(c)(3)(C)  of  the  Internal  Revenue  Code  (a  “U.S.  Tax  Compliance               Certificate”) and (y) executed originals of IRS Form W-8BEN or W-8BEN-E; or                             (IV)   to  the  extent  a  Foreign  Lender  is  not  the  beneficial  owner,               executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form               W-8BEN or W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of               Exhibit 3.01(e)-2 or Exhibit 3.01(e)-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 3.01(e)-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  such  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 such Borrower or the Administrative Agent), executed originals of any other               form prescribed by applicable Law as a basis for claiming exemption from or a reduction               in  U.S.  federal  withholding  Tax,  duly  completed,  together  with such  supplementary               documentation as may be prescribed by applicable Law to permit such 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 Internal Revenue Code, as applicable), such Lender shall               deliver to such Borrower and the Administrative Agent at the time or times prescribed by               Law  and  at  such  time  or  times  reasonably  requested  by  such  Borrower  or  the               Administrative  Agent  such  documentation  prescribed  by  applicable  Law  (including  as               prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional               documentation reasonably requested by such Borrower or the Administrative Agent as may               be  necessary  for  such  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 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 3.01 expires or becomes obsolete or inaccurate in any respect, it shall        update such form or certification or promptly notify the Parent Borrower and the Administrative        Agent in writing of its legal inability to do so.                                              78  CHAR1\1732710v2 

 

         (f)    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 the L/C  Issuer, or have any obligation to pay to any Lender or the L/C Issuer, any refund of Taxes withheld or  deducted from funds paid for the account of such Lender or the L/C Issuer, as the case may be.  If any  Recipient determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes  as to which it has been indemnified by any Loan Party or with respect to which any Loan Party has paid  additional amounts pursuant to this Section 3.01, it shall pay to the 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  3.01  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, the 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 Section 3.01(f), in no event will the applicable Recipient be required to pay any amount  to the Loan Party pursuant to this Section 3.01(f) 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 indemnification payments  or additional amounts giving rise to such refund had never been paid.  This Section 3.01(f) shall not be  construed to require any Recipient to make available its tax returns (or any other information relating to its  taxes that it deems confidential) to any Loan Party or any other Person.         (g)    Survival.  Each party’s obligations under this Section 3.01 shall survive the resignation or  replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender or  the L/C Issuer, the termination of the Commitments and the repayment, satisfaction or discharge of all other  Obligations.          (h)   Definitions.  For purposes of this Section 3.01, the term “Lender” includes the L/C Issuer  and the term “applicable Laws” includes FATCA.                  (i)   Withholding  Taxes.   For  purposes  of  determining  withholding  Taxes  imposed  under  FATCA, from and after the Effective Date, the Parent Borrower and the Administrative Agent shall treat  (and the Lenders hereby authorize the Administrative Agent to treat) the Loans under this Agreement as  not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471- 2(b)(2)(i).   3.02  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  Loans whose interest is determined by reference to the Eurocurrency Rate (whether denominated in Dollars  or an Alternative Currency), or to determine or charge interest rates based upon the Eurocurrency Rate, or  any Governmental Authority has imposed material restrictions on the authority of such Lender to purchase  or sell, or to take deposits of, Dollars or any Alternative Currency in the applicable interbank market, then,  in the London interbank market, then, on notice thereof by such Lender to the Parent Borrower through the  Administrative Agent, (i) any obligation of such Lender to make or continue Eurocurrency Rate Loans or  to convert Base Rate Loans to Eurocurrency Rate Loans in the affected currency or currencies or, in the  case of Eurocurrency Rate Loans in Dollars, shall be suspended, and (ii) if such notice asserts the illegality  of such Lender making or maintaining Base Rate Loans the interest rate on which is determined by reference  to the Eurocurrency Rate component of the Base Rate, the interest rate on which Base Rate Loans of such  Lender shall, if necessary to avoid such illegality, be determined by the Administrative Agent without                                             79  CHAR1\1732710v2 

 

   reference to the Eurocurrency Rate component of the Base Rate, in each case until such Lender notifies the  Administrative Agent and the Parent Borrower that the circumstances giving rise to such determination no  longer exist.  Upon receipt of such notice, (x) the Borrowers shall, upon demand from such Lender (with a  copy to the Administrative Agent), prepay or, if applicable and such Loans are denominated in Dollars,  convert all such Eurocurrency Rate Loans of such Lender to Base Rate Loans (the interest rate on which  Base  Rate  Loans  of  such  Lender shall,  if  necessary  to  avoid  such  illegality,  be  determined  by  the  Administrative Agent without reference to the Eurocurrency 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  Eurocurrency Rate Loans to such day, or immediately, if such Lender may not lawfully continue to maintain  such Eurocurrency Rate Loans and (y) if such notice asserts the illegality of such Lender determining or  charging interest rates based upon the Eurocurrency Rate, the Administrative Agent shall during the period  of such suspension compute the Base Rate applicable to such Lender without reference to the Eurocurrency  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 Eurocurrency Rate.  Upon  any such prepayment or conversion, the Borrowers shall also pay accrued interest on the amount so prepaid  or converted.                  If, in any applicable jurisdiction, the Administrative Agent, the L/C Issuer or any Lender or any  Designated Lender determines that any Law has made it unlawful, or that any Governmental Authority has  asserted that it is unlawful, for the Administrative Agent, the L/C Issuer or any Lender or its applicable  Designated Lender to (i) perform any of its obligations hereunder or under any other Loan Document, (ii)  to fund or maintain its participation in any Loan or Letter of Credit or (iii) issue, make, maintain, fund or  charge  interest  or  fees  with  respect  to  any  Credit  Extension,  such  Person  shall  promptly  notify  the  Administrative Agent, then, upon the Administrative Agent notifying the Parent Borrower, and until such  notice by such Person is revoked, any obligation of such Person to issue, make, maintain, fund or charge  interest or fees with respect to any such Credit Extension shall be suspended, and to the extent required by  applicable Law, cancelled.  Upon receipt of such notice, the Loan Parties shall, (A) repay that Person’s  participation in the Loans or other applicable Obligations on the last day of the Interest Period for each  Loan or other Obligation occurring after the Administrative Agent has notified the Parent Borrower or, if  earlier, the date specified by such Person in the notice delivered to the Administrative Agent (being no  earlier than the last day of any applicable grace period permitted by applicable Law), (B) to the extent  applicable to the L/C Issuer, Cash Collateralize that portion of applicable L/C Obligations comprised of the  aggregate undrawn amount of Letters of Credit to the extent not otherwise Cash Collateralized and (C) take  all reasonable actions requested by such Person to mitigate or avoid such illegality.          3.03  Inability to Determine Rates.           (a)   If  in  connection  with  any  request  for  a  Eurocurrency  Rate Loan  or  a  conversion  to  or  continuation thereof, (i) the Administrative Agent determines that (A) deposits (whether in Dollars or an  Alternative Currency) are not being offered to banks in the applicable offshore interbank market for such  currency for the applicable amount and Interest Period of such Eurocurrency Rate Loan, or (B) (1) adequate  and reasonable means do not exist for determining the Eurocurrency Rate for any requested Interest Period  with respect to a proposed Eurocurrency Rate Loan (whether denominated in Dollars or an Alternative  Currency)  or  in  connection  with  an  existing  or  proposed  Base  Rate  Loan  and  (2)  the  circumstances  described in Section 3.03(c)(i) do not apply (in each case with respect to clause (i), “Impacted Loans”), or  (ii) the Administrative Agent or the Required Lenders determine that for any reason the Eurocurrency Rate  for any requested Interest Period with respect to a proposed Eurocurrency Rate Loan does not adequately  and fairly reflect the cost to such Lenders of funding such Loan, the Administrative Agent will promptly so  notify the Parent Borrower and each Lender.  Thereafter, (x) the obligation of the Lenders to make or  maintain Eurocurrency Rate Loans in the affected currency or currencies shall be suspended (to the extent  of  the  affected  Eurocurrency  Rate  Loans  or  Interest  Periods)  and  (y)  in  the  event  of  a  determination                                             80  CHAR1\1732710v2 

 

   described in the preceding sentence with respect to the Eurocurrency Rate component of the Base Rate, the  utilization of the Eurocurrency Rate component in determining the Base Rate shall be suspended, in each  case until the Administrative Agent (upon the instruction of the Required Lenders) revokes such notice.   Upon receipt of such notice, the Borrowers may revoke any pending request for a Borrowing of, conversion  to or continuation of Eurocurrency Rate Loans in the affected currency or currencies or, failing that, will  be deemed to have converted such request into a request for a Borrowing of Base Rate Loans in the amount  specified therein.         (b)    Notwithstanding the foregoing, if the Administrative Agent has made the determination  described in Section 3.03(a)(i), the Administrative Agent in consultation with the Parent Borrower and the  Required Lenders, may establish an alternative interest rate for the Impacted Loans, in which case, such  alternative rate of interest shall apply with respect to the Impacted Loans until (1) the Administrative Agent  revokes  the  notice  delivered  with  respect  to  the  Impacted  Loans  under  Section  3.03(a)(i),  (2)  the  Administrative Agent or the Required Lenders notify the Parent Borrower that such alternative interest rate  does not adequately and fairly reflect the cost to the Lenders of funding the Impacted Loans, or (3) 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 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 Parent Borrower  written notice thereof.          (c)   Notwithstanding anything to the contrary in this Agreement or any other Loan Documents,  but without limiting Sections 3.03(a) and (b), if the Administrative Agent determines (which determination  shall be conclusive and binding upon all parties hereto absent manifest error), or the Parent Borrower or  Required Lenders notify the Administrative Agent (with, in the case of the Required Lenders, a copy to the  Parent Borrower) that the Parent Borrower or Required Lenders (as applicable) have determined (which  determination likewise shall be conclusive and binding upon all parties hereto absent manifest error), that:                (i)    adequate  and  reasonable  means  do  not  exist  for  ascertaining LIBOR for any         requested Interest Period, including because the LIBOR Screen Rate is not available or published         on a current basis and such circumstances are unlikely to be temporary,                (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 3.03, are being executed or amended (as applicable) to incorporate or        adopt a new benchmark interest rate to replace LIBOR,    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 Parent Borrower may  amend this Agreement to replace LIBOR 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                                             81  CHAR1\1732710v2 

 

   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 (5th) Business Day after the Administrative  Agent shall have posted such proposed amendment to all Lenders and the Parent 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  Parent  Borrower  and  each  Lender.  Thereafter,  (x) the  obligation  of  the  Lenders  to  make  or  maintain Eurocurrency Rate Loans shall be suspended, (to the extent of the affected Eurocurrency Rate  Loans  or  Interest  Periods),  and  (y) the  Eurocurrency  Rate  component  shall  no  longer  be  utilized  in  determining the Base Rate.  Upon receipt of such notice, the Parent Borrower may revoke any pending  request for a Borrowing of, conversion to or continuation of Eurocurrency Rate Loans (to the extent of the  affected Eurocurrency Rate Loans or Interest Periods) or, failing that, will be deemed to have converted  such request into a request for a Borrowing of Base Rate 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 zero 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 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.   3.04  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 reflected in the         Eurocurrency Rate) or the L/C Issuer;                  (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,  letters  of  credit,  commitments,  or  other  obligations,  or  its        deposits, reserves, other liabilities or capital attributable thereto; or                                                82  CHAR1\1732710v2 

 

                (iii)  impose on any Lender or the L/C Issuer or the London interbank market any other        condition, cost or expense affecting this Agreement or Eurocurrency Rate Loans made by such        Lender or any Letter of Credit or participation therein;          and  the  result  of  any  of  the  foregoing  shall  be  to  increase  the  cost  to  such  Lender  of  making,        converting to, continuing or maintaining any Loan the interest on which is determined by reference        to the Eurocurrency Rate (or of maintaining its obligation to make any such Loan), or to increase        the cost to such Lender or the L/C Issuer of participating in, issuing or maintaining any Letter of        Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce        the amount of any sum received or receivable by such Lender or the L/C Issuer hereunder (whether        of principal, interest or any other amount) then, upon request of such Lender or the L/C Issuer, the        Parent Borrower will pay (or cause the applicable Foreign Borrower to pay) to such Lender or the        L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender        or the L/C Issuer, as the case may be, for such additional costs incurred or reduction suffered.          (b)    Capital Requirements.  If any Lender or the L/C Issuer determines that any Change in Law  affecting such Lender or the L/C Issuer or any Lending Office of such Lender or such Lender’s or the L/C  Issuer’s holding company, if any, regarding capital or liquidity requirements has or would have the effect  of reducing the rate of return on such Lender’s or the L/C Issuer’s capital or on the capital of such Lender’s  or the L/C Issuer’s holding company, if any, as a consequence of this Agreement, the Commitments of such  Lender or the Loans made by, or participations in Letters of Credit or Swing Line Loans held by, such  Lender, or the Letters of Credit issued by the L/C Issuer, to a level below that which such Lender or the  L/C Issuer or such Lender’s or the L/C Issuer’s holding company could have achieved but for such Change  in  Law  (taking  into  consideration such  Lender’s  or  the  L/C  Issuer’s  policies  and  the  policies  of  such  Lender’s or the L/C Issuer’s holding company with respect to capital adequacy and liquidity), then from  time to time the Parent Borrower will pay (or cause the applicable Foreign Borrower to pay) to such Lender  or the L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender  or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company for any such reduction suffered.           (c)   Certificates for Reimbursement.  A certificate of a Lender or the L/C Issuer setting forth  the amount or amounts necessary to compensate such Lender or the L/C Issuer or its holding company, as  the case may be, as specified in Sections 3.04(a) and (b) and delivered to the Parent Borrower shall be  conclusive absent manifest error.  The Parent Borrower shall pay (or cause the applicable Foreign Borrower  to pay) such Lender or the L/C Issuer, as the case may be, the amount shown as due on any such certificate  within ten (10) days after receipt thereof.           (d)   Additional Reserve Requirements.  The Parent Borrower shall pay (or cause the applicable  Foreign Borrower to pay) to each Lender, (i) as long as such Lender shall be required to maintain reserves  with respect to liabilities or assets consisting of or including Eurocurrency funds or deposits (currently  known  as  “Eurocurrency  liabilities”),  additional  interest  on  the  unpaid  principal  amount  of  each  Eurocurrency Rate Loan equal to the actual costs of such reserves allocated to such Loan by such Lender  (as determined by such Lender in good faith, which determination shall be conclusive absent manifest  error), and (ii) as long as such Lender shall be required to comply with any reserve ratio requirement or  analogous requirement of any central banking or financial regulatory authority imposed in respect of the  maintenance of the Commitments or the funding of the Eurocurrency Rate Loans, such additional costs  (expressed as a percentage per annum and rounded upwards, if necessary, to the nearest five decimal places)  equal to the actual costs allocated to such Commitment or 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 Loan; provided, that, the Parent Borrower  shall have received at least ten (10) days’ prior notice (with a copy to the Administrative Agent) of such                                             83  CHAR1\1732710v2 

 

   additional costs from such Lender.  If a Lender fails to give notice ten (10) days prior to the relevant Interest  Payment Date, such additional costs shall be due and payable ten (10) days from receipt of such notice.                (e)    Delay in Requests.  Failure or delay on the part of any Lender or the L/C Issuer to demand  compensation pursuant to the foregoing provisions of this Section 3.04 shall not constitute a waiver of such  Lender’s or the L/C Issuer’s right to demand such compensation; provided, that, the Borrowers shall not be  required to compensate a Lender or the L/C Issuer pursuant to the foregoing provisions of this Section 3.04  for any increased costs incurred or reductions suffered more than nine (9) months prior to the date that such  Lender or the L/C Issuer, as the case may be, notifies the Parent Borrower of the Change in Law giving rise  to  such  increased  costs  or  reductions  and  of  such  Lender’s  or  the  L/C  Issuer’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).    3.05  Compensation for Losses.           Upon demand of any Lender (with a copy to the Administrative Agent) from time to time, the  Parent Borrower shall promptly compensate (or cause the applicable Foreign Borrower to 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 Loan other than a         Base Rate Loan on a day other than the last day of the Interest Period for such Loan (whether         voluntary, mandatory, automatic, by reason of acceleration, or otherwise);                        (b)    any failure by any Borrower (for a reason other than the failure of such Lender to         make a Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate Loan on the         date or in the amount notified by the Parent Borrower or applicable Foreign Borrower;                        (c)    any failure by any Borrower to make payment of any Loan or drawing under any         Letter of Credit (or interest due thereon) denominated in an Alternative Currency on its scheduled         due date or any payment thereof in a different currency; or                              (d)    any assignment of a Eurocurrency Rate Loan on a day other than the last day of         the Interest Period therefor as a result of a request by the Parent Borrower pursuant to Section        11.13;    excluding any loss of anticipated profits and including any loss or expense arising from the liquidation or  reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the deposits  from which such funds were obtained.  The Parent Borrower shall also pay (or cause the applicable Foreign  Borrower to pay) any customary administrative fees charged by such Lender in connection with the foregoing.           For purposes of calculating amounts payable by the Parent Borrower (or the applicable Foreign  Borrower)  to  the  Lenders  under  this  Section  3.05,  each  Lender  shall  be  deemed  to  have  funded  each  Eurocurrency Rate Loan made by it at the Eurocurrency Rate for such Loan by a matching deposit or other  borrowing in the London interbank eurocurrency market for a comparable amount and for a comparable  period, whether or not such Eurocurrency Rate Loan was in fact so funded.    3.06  Mitigation Obligations; Replacement of Lenders.             (a)   Designation of a Different Lending Office.  If any Lender requests compensation under  Section 3.04, or requires any Borrower to pay any Indemnified Taxes or additional amounts to any Lender,                                             84  CHAR1\1732710v2 

 

   the L/C Issuer, or any Governmental Authority for the account of any Lender or the L/C Issuer pursuant to  Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, then at the request of the Parent  Borrower, such Lender or the L/C Issuer shall, as applicable, use reasonable efforts to designate a different  Lending Office for funding or booking its 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 or the L/C Issuer, such  designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.01 or 3.04,  as the case may be, in the future, or eliminate the need for the notice pursuant to Section 3.02, as applicable,  and  (ii)  in  each  case,  would  not  subject  such  Lender  or  the  L/C  Issuer,  as  the  case  may  be,  to  any  unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender or the L/C Issuer,  as the case may be.  The Parent Borrower hereby agrees to pay (or cause the applicable Foreign Borrower  to pay) all reasonable costs and expenses incurred by any Lender or the L/C Issuer in connection with any  such designation or assignment.                  (b)   Replacement of Lenders.  If any Lender requests compensation under Section 3.04, or if  any  Borrower  is  required  to  pay  any  Indemnified  Taxes  or  additional  amounts  to  any  Lender  or  any  Governmental Authority for the account of any Lender pursuant to Section 3.01 and, in each case, such  Lender has declined or is unable to designate a different lending office in accordance with Section 3.06(a),  the Parent Borrower may replace such Lender in accordance with Section 11.13.    3.07  Survival.           All of the Borrowers’ obligations under this Article III shall survive termination of the Aggregate  Revolving  Commitments  and  repayment  of  all  other  Obligations  hereunder,  and  resignation  of  the  Administrative Agent.                                          ARTICLE IV                                                                                    GUARANTY    4.01  The Guaranty.           Subject  to  the  limitations  of  Section  2.18,  each  of  the  Guarantors  hereby  jointly  and  severally  guarantees to each Lender, the L/C Issuer, each Qualifying Counterparty of any Swap Contract or any Treasury  Management Agreement with any Loan Party or any Subsidiary, and the Administrative Agent as hereinafter  provided, as primary obligor and not as surety, the prompt payment of the Obligations in full when due (whether  at  stated  maturity,  as  a  mandatory  prepayment,  by  acceleration,  as  a  mandatory  cash  collateralization  or  otherwise) strictly in accordance with the terms thereof.  The Guarantors hereby further agree that if any of the  Obligations  are  not  paid  in  full  when  due  (whether  at  stated  maturity,  as  a  mandatory  prepayment,  by  acceleration, as a mandatory cash collateralization or otherwise), the Guarantors will, jointly and severally,  promptly pay the same, without any demand or notice whatsoever, and that in the case of any extension of time  of payment or renewal of any of the Obligations, the same will be promptly paid in full when due (whether at  extended  maturity,  as  a  mandatory  prepayment,  by  acceleration, as  a  mandatory  cash  collateralization  or  otherwise) in accordance with the terms of such extension or renewal.           Notwithstanding any provision to the contrary contained herein or in any other of the Loan Documents,  Swap  Contracts  or  Treasury  Management  Agreements,  the  obligations  of  each  Guarantor under  this  Agreement and the other Loan Documents shall  be  limited  to  an  aggregate  amount  equal  to  the  largest  amount that would not render such obligations subject to avoidance under the Debtor Relief Laws or any  comparable provisions of any applicable state Law.                  With respect to Danish Loan Parties,                                             85  CHAR1\1732710v2 

 

                 (a)    Notwithstanding any provision of any of the Loan Documents and in particular this Section  4.01, the obligations of any Guarantor incorporated in Denmark (each a “Danish Loan Party”) expressed to  be assumed in any of the Loan Documents and in particular this Section 4.01:                       (i)    shall be deemed not to be assumed if and to the extent required to comply with        Danish statutory provisions on unlawful financial assistance including without limitation Sections        206 through 212 of the Danish Companies Act (2015) as amended and supplemented from time to        time; and                              (ii)   shall, in relation to obligations not incurred as a result of the sum of (a) Borrowings        under this Agreement by any Danish Loan Party or by a direct or indirect Subsidiary of such Danish        Loan Party and (b) interest and other costs and fees under this Agreement which are to be borne by        such Danish Loan Party or by a direct or indirect Subsidiary of such Danish Loan Party, further be        limited to an amount equal to the greater of:                                     (A)   the equity of such Danish Loan Party at the date of such Danish Loan               Party’s accession to this Agreement; and                                     (B)    the  equity  at  the  date  when  a  claim  for  payment  is  made  against  such               Danish Loan Party under any of the Loan Documents and in particular this Section 4.01;                              in each case calculated in accordance with such Danish Loan Party’s generally accepted accounting        principles at the relevant time (including, if applied by such Danish Loan Party, IFRS), however,        adjusted  in  the  case  of  clause  (ii)  above  only,  by  adding  back obligations  (in  the  amounts        outstanding at the time when a claim for payment is made) of such Danish Loan Party in respect of        any intercompany loan owing by such Danish Loan Party to a Borrower and originally borrowed        by such Borrower under this Agreement and on-lent by such Borrower to such Danish Loan Party;        provided, that, any payment made by such Danish Loan Party under this Section 4.01 in respect of        such obligations of such Danish Loan Party shall reduce pro tanto the outstanding amount of the        intercompany loan owing by such Danish Loan Party; and                (b)    The above limitations shall apply to any security by way of guarantee, indemnity, collateral  or otherwise and to subordination of rights and claims, subordination or turnover of rights of recourse,  application of proceeds and any other means of direct and indirect financial assistance.                With respect to Dutch Loan Parties, notwithstanding any provision of any of the Loan Documents  and in particular this Section 4.01, no Dutch Loan Party shall be liable under this guaranty to the extent  that, if it were so liable, its entry into this guaranty would violate section 2:98c of the Dutch Civil Code.           4.02  Obligations Unconditional.           Subject to the limitations of Section 2.18, the obligations of the Guarantors under Section 4.01 are joint  and  several,  absolute  and  unconditional,  irrespective  of  the  value,  genuineness,  validity,  regularity  or  enforceability of any of the Loan Documents, Swap Contracts or Treasury Management Agreements, or any  other agreement or instrument referred to therein, or any substitution, release, impairment or exchange of any  other guarantee of or security for any of the Obligations, and, to the fullest extent permitted by applicable Law,  irrespective  of  any  other  circumstance  whatsoever  which  might  otherwise constitute a legal or equitable  discharge or defense of a surety or guarantor, it being the intent of this Section 4.02 that the obligations of the  Guarantors hereunder shall be absolute and unconditional under any and all circumstances.  Each Guarantor  agrees that such Guarantor shall have no right of subrogation, indemnity, reimbursement or contribution against                                             86  CHAR1\1732710v2 

 

   any Borrower or any other Guarantor for amounts paid under this Article IV until such time as the Obligations  have been paid in full and the Commitments have expired or terminated.  Without limiting the generality of the  foregoing, it is agreed that, to the fullest extent permitted by Law, the occurrence of any one or more of the  following shall not alter or impair the liability of any Guarantor hereunder, which shall remain absolute and  unconditional as described above:                 (a)    at any time or from time to time, without notice to any Guarantor, the time for any         performance of or compliance with any of the Obligations shall be extended, or such performance or         compliance shall be waived;                 (b)    any of the acts mentioned in any of the provisions of any of the Loan Documents, any         Swap Contract or Treasury Management Agreement between any Loan Party or any Subsidiary and         any Qualifying Counterparty, or any other agreement or instrument referred to in the Loan Documents,         such Swap Contracts or such Treasury Management Agreements shall be done or omitted;                        (c)    the maturity of any of the Obligations shall be accelerated, or any of the Obligations         shall  be  modified,  supplemented  or  amended  in  any  respect,  or  any right under any of the Loan        Documents, any Swap Contract or Treasury Management Agreement between any Loan Party or any        Subsidiary and any Qualifying Counterparty, or any other agreement or instrument referred to in the        Loan Documents, such Swap Contracts or such Treasury Management Agreements shall be waived or        any other guarantee of any of the Obligations or any security therefor shall be released, impaired or        exchanged in whole or in part or otherwise dealt with;                 (d)    any Lien granted to, or in favor of, the Administrative Agent or any Lender or Lenders        as security for any of the Obligations shall fail to attach or be perfected; or                 (e)    any of the Obligations shall be determined to be void or voidable (including for the        benefit of any creditor of any Guarantor) or shall be subordinated to the claims of any Person (including        any creditor of any Guarantor).          With  respect  to  its  obligations  hereunder,  each  Guarantor  hereby  expressly  waives  diligence,  presentment,  demand  of  payment,  protest  and  all  notices  whatsoever,  and  any  requirement  that  the  Administrative Agent or any Lender exhaust any right, power or remedy or proceed against any Person under  any of the Loan Documents, any Swap Contract or any Treasury Management Agreement between any Loan  Party or any Subsidiary and any Qualifying Counterparty, or any other agreement or instrument referred to in  the Loan Documents, such Swap Contracts or such Treasury Management Agreements, or against any other  Person under any other guarantee of, or security for, any of the Obligations.    4.03  Reinstatement.           The obligations of the Guarantors under this Article IV shall be automatically reinstated if and to the  extent that for any reason any payment by or on behalf of any Person in respect of the Obligations is rescinded  or must be otherwise restored by any holder of any of the Obligations, whether as a result of any proceedings  in  bankruptcy  or  reorganization  or  otherwise,  and  each  Guarantor  agrees  that  it  will  indemnify  the  Administrative Agent and each Lender on demand for all reasonable costs and expenses (including the fees,  charges and disbursements of counsel) incurred by the Administrative Agent or such Lender in connection  with such rescission or restoration, including any such costs and expenses incurred in defending against any  claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under any  bankruptcy, insolvency or similar Law.                                               87  CHAR1\1732710v2 

 

   4.04  Certain Additional Waivers.           Each  Guarantor  agrees  that  such  Guarantor  shall  have  no  right  of  recourse  to  security  for  the  Obligations, except through the exercise of rights of subrogation pursuant to Section 4.02 and through the  exercise of rights of contribution pursuant to Section 4.06.      4.05  Remedies.           The Guarantors agree that, to the fullest extent permitted by Law, as between the Guarantors, on the  one hand, and the Administrative Agent and the Lenders, on the other hand, the Obligations may be declared  to be forthwith due and payable as provided in Section 9.01 (and shall be deemed to have become automatically  due  and  payable  in  the  circumstances  provided  in  said  Section 9.01)  for  purposes  of  Section 4.01  notwithstanding  any  stay,  injunction  or  other  prohibition  preventing  such  declaration  (or  preventing  the  Obligations from becoming automatically due and payable) as against any other Person and that, in the event  of such declaration (or the Obligations being deemed to have become automatically due and payable), the  Obligations (whether or not due and payable by any other Person) shall forthwith become due and payable by  the Guarantors for purposes of Section 4.01.  The Guarantors acknowledge and agree that their obligations  hereunder are secured in accordance with the terms of the Collateral Documents and that the Lenders may  exercise their remedies thereunder in accordance with the terms thereof.    4.06  Rights of Contribution.           The Guarantors agree among themselves that, in connection with payments made hereunder, each  Guarantor shall have contribution rights against the other Guarantors as permitted under applicable Law.  Such  contribution rights shall be subordinate and subject in right of payment to the obligations of such Guarantors  under the Loan Documents and no Guarantor shall exercise such rights of contribution until all Obligations  have been paid in full and the Commitments have terminated.    4.07  Guarantee of Payment; Continuing Guarantee.           The  guarantee  in  this  Article IV  is  a  guaranty  of  payment  and  not  of  collection,  is  a  continuing  guarantee, and shall apply to all Obligations whenever arising.           4.08  Keepwell.           Each Loan Party that is a Qualified ECP Guarantor at the time the Guaranty in this Article IV by  any Loan Party that is not then an “eligible contract participant” under the Commodity Exchange Act (a  “Specified Loan Party”) or the grant of a security interest under the Loan Documents by any such Specified  Loan  Party,  in  either  case,  becomes  effective  with  respect  to  any  Swap  Obligation,  hereby  jointly  and  severally, absolutely, unconditionally and irrevocably undertakes to provide such funds or other support to  each Specified Loan Party with respect to such Swap Obligation as may be needed by such Specified Loan  Party from time to time to honor all of its obligations under the Loan Documents in respect of such Swap  Obligation (but, in each case, only up to the maximum amount of such liability that can be hereby incurred  without  rendering  such  Qualified  ECP  Guarantor’s  obligations  and  undertakings  under  this  Article  IV  voidable  under  applicable  Debtor  Relief  Laws,  and  not  for  any  greater  amount).   The  obligations  and  undertakings of each Qualified ECP Guarantor under this Section 4.08 shall remain in full force and effect  until the Obligations have been indefeasibly paid and performed in full.  Each Loan Party intends this  Section 4.08 to constitute, and this Section 4.08 shall be deemed to constitute, a “keepwell, support, or other  agreement” for the benefit of each Specified Loan Party for all purposes of the Commodity Exchange Act.                                                      88  CHAR1\1732710v2 

 

   4.09   Appointment of Parent Borrower.                  Each of the Loan Parties hereby appoints the Parent Borrower to act as its agent for all purposes of  this Agreement, the other Loan Documents and all other documents and electronic platforms entered into  in connection herewith and agrees that (a) the Parent Borrower may execute such documents and provide  such authorizations on behalf of such Loan Parties as the Parent Borrower deems appropriate in its sole  discretion  and  each  Loan  Party  shall  be  obligated  by  all  of  the  terms  of  any  such  document  and/or  authorization  executed  on  its  behalf,  (b) any  notice  or  communication  delivered  by  the  Administrative  Agent, L/C Issuer or a Lender to the Parent Borrower shall be deemed delivered to each Loan Party and  (c) the  Administrative  Agent,  L/C  Issuer  or  the  Lenders  may  accept,  and  be  permitted  to  rely  on,  any  document, authorization, instrument or agreement executed by the Parent Borrower on behalf of each of  the Loan Parties.                                          ARTICLE V                                                                  CONDITIONS PRECEDENT TO CREDIT EXTENSIONS     5.01  Conditions of Initial Credit Extension.           The obligation of the L/C Issuer and each Lender to make its initial Credit Extension hereunder is  subject to satisfaction of the following conditions precedent:                 (a)    Loan Documents.  Receipt by the Administrative Agent of executed counterparts        of this Agreement and the other Loan Documents, each properly executed by a Responsible Officer        of the signing Loan Party and, in the case of this Agreement, by each Lender.                              (b)    Opinions of Counsel. Receipt by the Administrative Agent of customary opinions        of legal counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, dated        as of the Effective Date, and in form and substance satisfactory to the Administrative Agent.                                     (c)    No Material Adverse Change.  There shall not have occurred since December 31,        2016, a material adverse change in, or a material adverse effect on, the operations, business, assets,        financial condition or results of operations of the Parent Borrower and its Subsidiaries, taken as a        whole.                              (d)    Litigation.   There  shall  not  exist  any  action,  suit,  investigation  or  proceeding        pending or, to the knowledge of the Parent Borrower, threatened in any court or before an arbitrator        or Governmental Authority that could reasonably be expected to have a Material Adverse Effect.                              (e)    Organization Documents, Resolutions, Etc.  Receipt by the Administrative Agent        of the following, each of which shall be originals or facsimiles (followed promptly by originals),        in form and substance satisfactory to the Administrative Agent and its legal counsel:                                     (i)    copies of the Organization Documents of each Loan Party certified to be               true and complete as of a recent date by the appropriate Governmental Authority of the state               or other jurisdiction of its incorporation or organization, where applicable, including in respect               of a Dutch Loan Party an up-to-date extract from the Dutch trade register (handelsregister)               relating to it, and certified by a secretary or assistant secretary of such Loan Party to be true               and correct as of the Effective Date;                                                            89  CHAR1\1732710v2 

 

                       (ii)   such  certificates  of  resolutions  or  other  action,  incumbency  certificates               and/or other certificates of Responsible Officers of each Loan Party as the Administrative               Agent  may require evidencing the identity, authority and capacity of each Responsible               Officer  thereof  authorized  to  act  as  a  Responsible  Officer  in  connection  with  this               Agreement and the other Loan Documents to which such Loan Party is a party, including               in respect of a Dutch Loan Party:                                                        (A)    a copy of a resolution of its management board:                                                               (I)    approving  the  execution  of,  and  the  terms  of,  and  the                            transactions contemplated by, the Loan Documents; and                                                                      (II)   if applicable, appointing one or more authorised persons                            to represent the relevant Dutch Loan Party in the event of a conflict of                            interest or confirming that no such person has been appointed;                                                        (B)    a copy of a resolution of its general meeting of shareholders:                                                                      (I)    approving  the  execution  of,  and  the  terms  of,  and  the                            transactions contemplated by, the Loan Documents; and                                                                      (II)   if applicable, appointing one or more authorised persons                            to represent the relevant Dutch Loan Party in the event of a conflict of                            interest or confirming that no such person has been appointed;                                                        (C)    a copy of a resolution of its board of supervisory directors (if any):                                   (I)    approving  the  execution  of,  and  the  terms  of,  and  the                            transactions contemplated by, the Loan Documents; and                                                                      (II)   if applicable, appointing one or more authorised persons                            to represent the relevant Dutch Loan Party in the event of a conflict of                            interest or confirming that no such person has been appointed; and                                     (iii)  such  documents  and  certifications  as  the  Administrative  Agent  may               reasonably require to evidence that each Loan Party is duly organized or formed, and is               validly  existing,  in  good  standing  and  qualified  to  engage  in  business  in  its  state  of               organization  or  formation,  including  in  respect  of  a  Dutch  Loan  Party,  evidence  of               unconditional positive advice of any works council which has advisory rights in respect of               the entry into and performance of the transactions contemplated in the Loan Documents.                              (f)    Perfection  and  Priority  of  Liens.   Receipt  by  the  Administrative  Agent  of  the        following:                                       (i)   searches  of  Uniform  Commercial  Code  filings  in  the  jurisdiction  of               formation of each Domestic Loan Party or where a filing would need to be made in order               to  perfect  the  Administrative  Agent’s  security  interest  in  the Collateral,  copies  of  the               financing statements on file in such jurisdictions and evidence that no Liens exist other               than Permitted Liens;                                                                    90  CHAR1\1732710v2 

 

                       (ii)   UCC  financing  statements  for  each  appropriate  jurisdiction as is               necessary,  in  the  Administrative  Agent’s  sole  discretion,  to  perfect  the  Administrative               Agent’s security interest in the Collateral;                              (iii)  all certificates evidencing any certificated Equity Interests pledged to the               Administrative Agent pursuant to the Security Agreement, together with duly executed in               blank and undated stock powers attached thereto;                                            (iv)  searches  of  ownership  of,  and  Liens  on,  Intellectual  Property  of  each               Domestic Loan Party in the appropriate governmental offices; and                                            (v)   duly executed notices of grant of security interest in the form required by               the Security Agreement as are necessary, in the Administrative Agent’s sole discretion, to               perfect  the  Administrative  Agent’s  security  interest  in  the  Intellectual  Property  of  the               Domestic Loan Parties.                 (g)    Evidence of Insurance.  Receipt by the Administrative Agent of copies of insurance        policies or certificates of insurance of the Domestic Loan Parties evidencing liability and casualty        insurance meeting the requirements set forth in the Loan Documents, including, but not limited to,        naming the Administrative Agent as additional insured (in the case of liability insurance) or lenders        loss payee (in the case of hazard insurance) on behalf of the Lenders.                 (h)    Closing Certificate.  Receipt by the Administrative Agent of a certificate signed        by  a  Responsible  Officer  of  the  Parent  Borrower  certifying  that  (i)  the  conditions  specified  in        Sections  5.01(c)  and  (d)  and  Sections  5.02(a)  and  (b)  have  been  satisfied  and  (ii)  the  Parent        Borrower and its Subsidiaries (after giving effect to the Transactions) are solvent on a consolidated        basis as provided in Section 6.22.                              (i)    Effective Date Acquisition.  Receipt by the Administrative Agent of fully executed        copies of all of the Effective Date Acquisition Documents, certified as true and correct by the Parent        Borrower.                              (j)    Fees.  Receipt by the Administrative Agent, the Arranger and the Lenders of any        Fees required to be paid on or before the Effective Date.                       (k)    Attorney Costs.  Unless waived by the Administrative Agent, the Borrowers shall        have paid all fees, charges and disbursements of counsel to the Administrative Agent to the extent        invoiced at least two (2) Business Days prior to or on the Effective Date, plus such additional        amounts of such fees, charges and disbursements as shall constitute its reasonable estimate of such        fees, charges and disbursements incurred or to be incurred by it through the closing proceedings        (provided, that, such estimate shall not thereafter preclude a final settling of accounts between the        Borrowers and the Administrative Agent).                              (l)    Repayment of Certain Amounts Under Existing Credit Agreement.  Receipt by the        Administrative Agent of evidence that (i) all obligations owed to lenders under the Existing Credit        Agreement  who  are  not  Lenders  hereunder,  if  any,  shall  have  been  paid  in  full  and  (ii)  the        obligations owed to lenders under the Existing Credit Agreement who are Lenders hereunder shall        be  paid  to  the  extent  necessary  so  that the  Obligations  of  such  Lenders  to  do not  exceed  their        Commitments hereunder.                                                            91  CHAR1\1732710v2 

 

         Without limiting the generality of the provisions of the last paragraph of Section 10.03, for purposes  of determining compliance with the conditions specified in this Section 5.01, each Lender that has signed  this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each  document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory  to  a  Lender  unless  the  Administrative  Agent  shall  have  received  notice  from  such  Lender  prior  to  the  proposed Effective Date specifying its objection thereto.          5.02  Conditions to all Credit Extensions.           Subject to the Incremental Funds Certain Provision in connection with an Incremental Term Loan  (if applicable), the obligation of the L/C Issuer and each Lender to honor any Request for Credit Extension  (other than a Loan Notice requesting only a conversion of Loans to the other Type, or a continuation of  Eurocurrency Rate Loans) is subject to the following conditions precedent:                 (a)    The representations and warranties of the Borrowers and each other Loan Party         contained in Article VI or any other Loan Document, or which are contained in any document        furnished at any time under or in connection herewith or therewith, shall be true and correct in all        material respects on and as of the date of such Credit Extension, except to the extent that such        representations and warranties specifically refer to an earlier date, in which case they shall be true        and correct in all material respects as of such earlier date (provided, that, any representation and        warranty that is qualified by materiality, a Material Adverse Effect or similar language shall be true        and correct in all respects), and except that for purposes of this Section 5.02, the representations        and warranties contained in Sections 6.05(a) and (b) shall be deemed to refer to the most recent        statements furnished pursuant to Sections 7.04(a) and (b), respectively.                       (b)    No Default or Event of Default shall exist, or would result from such proposed        Credit Extension or from the application of the proceeds thereof.                              (c)    The Administrative Agent and, if applicable, the L/C Issuer and/or the Swing Line        Lender shall have received a Request for Credit Extension in accordance with the requirements        hereof.                              (d)    In the case of a Credit Extension to be denominated in an Alternative Currency,        such currency remains an Eligible Currency.                              (e)    There  shall  be  no  prohibition  or  material  impediment,  restriction  or  limitation        imposed under Law or by any Governmental Authority, as to the proposed financing under this        Agreement or the repayment thereof or as to rights created under any Loan Document or as to        application of the proceeds of the realization of any such rights.                              (f)    If  the  applicable  Borrower  is  a  Foreign  Borrower,  then  the conditions  of         Section 2.16 to the designation of such Borrower as a Foreign Borrower shall have been met to the        satisfaction of the Administrative Agent.                 Each Request for Credit Extension submitted by a Borrower shall be deemed to be a representation  and warranty that the conditions specified in Sections 5.02(a) and (b) have been satisfied on and as of the  date of the applicable Credit Extension.                                                92  CHAR1\1732710v2 

 

                                         ARTICLE VI                                                                       REPRESENTATIONS AND WARRANTIES          The Loan Parties represent and warrant to the Administrative Agent, the L/C Issuer and each of the  Lenders that:    6.01  Organization; Power.           The Parent Borrower and each of the Subsidiaries (a) is duly organized and validly existing under  the Laws of the jurisdiction of its organization, (b) has all requisite power and authority to own its property  and assets and to carry on its business as now conducted and as proposed to be conducted, except where  the failure to do so could not reasonably be expected to result in a Material Adverse Effect (c) is qualified  to do business in, and is in good standing (to the extent that such concept exists in such jurisdiction) in,  every jurisdiction where such qualification is required, except where the failure so to qualify could not  reasonably  be  expected  to  result  in  a  Material  Adverse  Effect, and  (d) has  the  power  and  authority  to  execute, deliver and perform its obligations under each of the Loan Documents and each other agreement  or  instrument  contemplated  hereby  or  thereby  to  which  it  is  or will  be  a  party  and,  in  the  case  of  the  Borrowers, to borrow hereunder.    6.02  Authorization.           The  Transactions  (a) have  been duly  authorized  by  all  requisite  corporate  and,  if  required,  stockholder action and (b) will not (i) violate in any material respect (A) any provision of Law, statute, rule  or regulation, or of the certificate or articles of incorporation or other constitutive documents or by-laws of  the Parent Borrower or any Subsidiary, (B) any order of any Governmental Authority or (C) any provision  of any material indenture, material agreement or other material instrument to which the Parent Borrower or  any Subsidiary is a party or by which any of them or any of their property is or may be bound, (ii) in conflict  with, result in a breach of or constitute (alone or with notice or lapse of time or both) a default under, or  give rise to any right to accelerate or to require the prepayment, repurchase or redemption of any obligation  under any such indenture, material agreement or other material instrument or (iii) result in the creation or  imposition of any Lien upon or with respect to any property or assets now owned or hereafter acquired by  the  Parent  Borrower  or  any  Subsidiary  (other  than  any  Lien  created  hereunder  or  under  the  Collateral  Documents).    6.03  Enforceability.           This Agreement has been duly executed and delivered by the Loan Parties and constitutes, and each  other Loan Document when executed and delivered by each Loan Party party thereto will constitute, a legal,  valid and binding obligation of such Loan Party enforceable against such Loan Party in accordance with its  terms,  except  to  the  extent  that  the  enforceability  thereof  may  be  limited  by  applicable  bankruptcy,  insolvency, reorganization, moratorium or similar laws generally affecting creditors’ rights and by equitable  principles (regardless of whether enforcement is sought in equity or at Law).    6.04  Governmental Approvals.           No  action,  consent  or  approval  of,  registration  or  filing  with or any other action by any  Governmental Authority is or will be required in connection with the Transactions, except for (a) the filing  of Uniform Commercial Code financing statements and filings with the United States Patent and Trademark  Office and the United States Copyright Office, (b) such as have been made or obtained and are in full force  and effect or which are not material to the consummation of the Transactions and (c) those approvals,                                             93  CHAR1\1732710v2 

 

   consents, exemptions, authorizations or other actions, notices or filings, the failure of which to obtain or  make could not reasonably be expected to have a Material Adverse Effect.    6.05  Financial Statements.           (a)   The Parent Borrower has heretofore furnished to the Lenders (i) the consolidated balance  sheet and related statements of operations, stockholders’ equity and cash flows of the Parent Borrower and  its  consolidated  Subsidiaries  as  of  and  for  the  fiscal  year  ended December 31, 2016, audited by and  accompanied by the unqualified opinion of Ernst & Young LLP, independent public accountants and (ii) the  unaudited consolidated balance sheets and related statements of operations, stockholders’ equity and cash  flows of the Parent Borrower and its consolidated Subsidiaries as of the fiscal quarter ending September  30, 2017.  Such financial statements present fairly, in all material respects, the financial condition and  results of operations and cash flows of the Parent Borrower and its consolidated Subsidiaries as of such  dates and for such periods.  To the extent required by GAAP, such balance sheets and the notes thereto  disclose all material liabilities, direct or contingent, of the Parent Borrower and its consolidated Subsidiaries  as of the dates thereof.  Such financial statements were prepared in accordance with GAAP applied on a  consistent basis, except that the unaudited financial statements are subject to normal year-end adjustments  and do not contain notes thereto.             (b)   The  Parent  Borrower  has  heretofore  delivered  to  the  Lenders  the  unaudited  pro  forma  consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows of the  Parent Borrower and its consolidated Subsidiaries, as well as pro forma levels of Consolidated EBITDA,  for the Parent Borrower’s fiscal year ended December 31, 2016, prepared giving effect to the Transactions  as if they had occurred on such date.  Such pro forma financial statements have been prepared in good faith  by the Parent Borrower, based on the information available to the Parent Borrower as of the date of delivery  thereof, accurately reflect, in all material respects, all adjustments required to be made to give effect to the  Transactions and present fairly, in all material respects, on a pro forma basis the estimated consolidated  financial position of the Parent Borrower and its consolidated Subsidiaries as of such date and for such  periods, assuming that the Transactions had actually occurred at such date or at the beginning of such  period,  as  the  case  may  be.   The  forecasts  of  financial  performance  of  the  Parent  Borrower  and  its  Subsidiaries heretofore furnished to the Lenders have been prepared in good faith by the Parent Borrower  and based on assumptions believed by the Parent Borrower to be reasonable at the time (it being understood  that such forecasts as to future events are not to be reviewed as facts and that actual results may differ  materially from such forecasts).    6.06  No Material Adverse Change.           No event, change or condition has occurred that has had, or could reasonably be expected to have,  a material adverse effect on the business, operations, assets, liabilities, financial condition or results of  operations of the Parent Borrower and the Subsidiaries, taken as a whole, since December 31, 2016.    6.07  Title to Properties; Possession Under Leases.           (a)   The Parent Borrower and each of the Subsidiaries has good and marketable title to, or valid  leasehold interests in, all its material properties and material assets, except for minor defects in title that do  not materially interfere with its ability to conduct its business or to utilize such assets for their intended  purposes and Liens permitted by Section 8.02 and except where the failure to have such title could not  reasonably be expected to have, individually or in the aggregate, a Material  Adverse Effect.  All such  material properties and assets are free and clear of Liens, other than Liens expressly permitted by Section  8.02.                                             94  CHAR1\1732710v2 

 

           (b)    The use by the Parent Borrower and each of the Subsidiaries of such Collateral and all such  rights with respect to the foregoing do not infringe on the rights of any Person other than such infringement  which could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse  Effect.  No claim has been made and remains outstanding that the Parent Borrower’s or any Subsidiaries’  use of any Collateral does or may violate the rights of any third party that could, individually or in the  aggregate, reasonably be expected to result in a Material Adverse Effect.                (c)    The  Parent  Borrower  and  each  of  the  Subsidiaries  has  complied  with  all  material  obligations due and payable or required to be performed under all material leases to which it is a party and  all such material leases are in full force and effect.  The Parent Borrower and each of the Subsidiaries enjoys  peaceful and undisturbed possession under all such leases, except where the failure to so enjoy could not  reasonably be expected to have a Material Adverse Effect.         (d)    The Parent Borrower and each of the Subsidiaries owns, or is licensed to use, all Patents,  patent  applications,  Trademarks,  trade  names,  servicemarks,  Copyrights,  technology,  trade  secrets,  proprietary information, domain names, know-how and processes necessary for the conduct of its business  as currently conducted (the “Intellectual Property”), except for those the failure to own or license which,  individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.   No claim has been asserted in writing and is pending by any person challenging or questioning the use of  any such Intellectual Property or the validity or effectiveness of any such Intellectual Property, nor does  the  Parent  Borrower  or  any  Subsidiary  know  of  any  valid  basis  for any such claim, which claim is  reasonably likely to have a Material Adverse Effect.  The use of such Intellectual Property by the Parent  Borrower  and  each  Subsidiary  does not  infringe  the  rights  of  any  person,  except  for  such  claims  and  infringements that, individually or in the aggregate, could not reasonably be expected to result in a Material  Adverse Effect.          (e)   Except pursuant to licenses and other user agreements entered into by the Parent Borrower  or any Subsidiary in the ordinary course of business, on and as of the date hereof (i) the Parent Borrower  and each Subsidiary owns and possesses the right to use, and has done nothing to authorize or enable any  other  person  to  use,  any  of  its  Copyrights,  Patents  or  Trademarks  and  (ii) all  Trademarks,  Copyrights,  Patents, service marks, trade names, patent rights, franchises, licenses and other intellectual property rights  either registered or pending registration with the United States Copyright Office or the United States Patent  and Trademark Office and owned by each Loan Party as of the Effective Date are set forth on Schedule  6.07 hereto and are valid and in full force and effect, in each case, except for any failure which could not,  individually or in the aggregate, be reasonably likely to result in a Material Adverse Effect.          (f)   To the Parent Borrower’s and each Subsidiary’s knowledge, on and as of the date hereof,  (i) there is no violation by others of any right of the Parent Borrower or such Subsidiary with respect to any  of its Copyrights, Patents or Trademarks, respectively, pledged by it under the name of the Parent Borrower  or such Subsidiary, as the case may be, (ii) the Parent Borrower or such Subsidiary is not infringing upon  any Copyright, Patent or Trademark of any other person other than, in the case of clauses (i) and (ii), such  violation or infringement that, individually or in the aggregate, could not reasonably be expected to have a  Material Adverse Effect, and (iii) no proceedings have been instituted or are pending against the Parent  Borrower  or  such  Subsidiary  or  threatened,  and  no  claim  against  such  the  Parent  Borrower  or  such  Subsidiary has been received by the Parent Borrower or such Subsidiary, as the case may be, alleging any  such violation, except any violations which could not, individually or in the aggregate, be reasonably likely  to result in a Material Adverse Effect.                                              95  CHAR1\1732710v2 

 

   6.08  Subsidiaries.           Schedule 6.08 sets forth as of the Effective Date a list of (a) all Subsidiaries and the percentage  ownership  interest  of  the  Parent  Borrower  and  any  Subsidiary  therein,  (b)  the  exact  legal  name  and  jurisdiction of organization or formation, as applicable, of each Loan Party, (c) each other name each Loan  Party has had in the past five (5) years, together with the date of the relevant change, (d) any merger,  consolidation or other change in structure  of  any  Loan  Party  within the past five (5) years, (e) the chief  executive office of each Loan Party and (f) the federal taxpayer identification number and organizational  identification number of each Loan Party.  The shares of Equity Interests so indicated on Schedule 6.08 are  owned by the Parent Borrower, directly or indirectly, free and clear of all Liens (other than Liens created  under the Collateral Documents).     6.09  Litigation; Compliance with Laws.           (a)   There are not any actions, suits or proceedings at Law or in equity or by or before any  Governmental Authority now pending or, to the knowledge of the Parent Borrower, threatened against or  affecting the Parent Borrower, any Subsidiary or any business, property or rights of any such person (i) that  involve any Loan Document or the Transactions or (ii) that could reasonably be expected, individually or  in the aggregate, to result in a Material Adverse Effect.           (b)   None of the Parent Borrower or any of the Subsidiaries or any of their respective material  properties or material assets is in violation of, nor will the continued operation of their material properties  and  material  assets  as  currently  conducted  violate,  any  Law,  rule  or  regulation  (including  any  zoning,  building, Environmental Law, ordinance, code or approval or any building permits), or is in default with  respect  to  any judgment,  writ,  injunction,  decree  or  order  of  any  Governmental  Authority,  where  such  violation or default could reasonably be expected to result in a Material Adverse Effect.    6.10  Agreements.           (a)   None of the Parent Borrower or any of the Subsidiaries is a party to any agreement or  instrument or subject to any corporate restriction that has resulted or could reasonably be expected to result  in a Material Adverse Effect.           (b)   None of the Parent Borrower or any of the Subsidiaries is in default in any manner under  any provision of any indenture or other agreement or instrument evidencing Indebtedness, or any other  agreement or instrument to which it is a party or by which it or any of its properties or assets are or may be  bound, where such default could reasonably be expected to result in a Material Adverse Effect.    6.11  Federal Reserve Regulations.           (a)   None of the Parent Borrower or any of the Subsidiaries is engaged principally, or as one of  its important activities, in the business of extending credit for the purpose of buying or carrying Margin  Stock.           (b)   No part of the proceeds of any Loan or any Letter of Credit will be used, whether directly  or indirectly, and whether immediately, incidentally or ultimately, for any purpose that entails a violation  of, or that is inconsistent with, the provisions of the Regulations of the FRB, including Regulation T, U or  X.                                               96  CHAR1\1732710v2 

 

   6.12  Investment Company Act.           None of the Parent Borrower or any Subsidiary is an “investment company” as defined in, or subject  to regulation under, the Investment Company Act of 1940.    6.13  Use of Proceeds.           The Borrowers will use the proceeds of the Loans and will request the issuance of Letters of Credit  only for the purposes specified in Section 7.08.      6.14  Tax Returns.             Each of the Parent Borrower and each of the Subsidiaries has filed or caused to be filed all federal  and all material state, local and foreign tax returns or materials required to have been filed by it and has  paid or caused to be paid all material taxes due and payable by it and all assessments received by it, except  taxes that are being contested in good faith by appropriate proceedings and for which the Parent Borrower  or such Subsidiary, as applicable, shall have set aside on its books adequate reserves and except for taxes  the nonpayment of which could not reasonably be expected to have a Material Adverse Effect.    6.15  No Material Misstatements.           No written information, report, financial statement, exhibit or schedule furnished by or on behalf  of the Borrowers to the Administrative Agent or any Lender in connection with the negotiation of any Loan  Document or included therein or delivered pursuant thereto contained, which when taken as a whole and  together  with  the  representations  and  warranties  contained  in  this  Agreement,  contains  any  material  misstatement of fact or omitted or omits to state any material fact necessary to make the statements therein,  in the light of the circumstances under which they were or are made, not misleading in any material respect;  provided, that, to the extent any such information, report, financial statement, exhibit or schedule was based  upon or constitutes a forecast or projection, each Borrower represents only that it acted in good faith and  utilized  reasonable  assumptions  and  due  care  in  the  preparation  of  such  information,  report,  financial  statement, exhibit or schedule and it is understood that actual results may materially differ from forecasts  and projections.    6.16  Employee Benefit Plans.           (a)   With respect to any Plan, each of the Borrowers and each of its ERISA Affiliates is in  compliance in all material respects with the applicable provisions of ERISA and the Internal Revenue Code  and  the  regulations  and  published  interpretations  thereunder.  No  ERISA  Event  has  occurred  or  is  reasonably expected to occur that, when taken together with all other such ERISA Events, could reasonably  be expected to result in a Material Adverse Effect.  Neither the Parent Borrower nor any Subsidiary has (a)  failed to comply with any requirement of applicable Law relating to any employee pension benefit plan  primarily for the benefit of employees of the Parent Borrower or any Subsidiary residing outside the United  States that is not subject to ERISA or the Internal Revenue Code or (b) incurred any other liability with  respect to such plan (other than liabilities incurred in the ordinary course of business), except for any such  noncompliance or incurrence which could not reasonably be expected to result in a Material Adverse Effect.                  (b)    With respect to any Foreign Pension Plan, each of the Parent Borrower and each of the  Subsidiaries is in compliance in all material respects with the applicable provisions of the applicable Law  governing such Foreign Pension Plan and the regulations and published interpretations thereunder.  No  Foreign Pension Plan has failed to comply with, or be funded in accordance with, or is reasonably expected                                             97  CHAR1\1732710v2 

 

   to fail to company with, or be funded in accordance with, applicable Law that, when taken together with all  other such instances, could reasonably be expected to result in a Material Adverse Effect.    6.17  Environmental Matters.           Except with respect to any other matters that, individually or in the aggregate, could not reasonably  be expected to result in a Material Adverse Effect, none of the Parent Borrower or any of the Subsidiaries  (i) has  failed  to  comply  with  any  Environmental  Law  or  to  obtain,  maintain  or  comply  with  any  Environmental Permit, (ii) has become subject to any pending or to the knowledge of the Parent Borrower,  threatened,  Environmental  Liability,  (iii) has  received  notice of any claim with respect to any  Environmental Liability or (iv) knows of any basis for any Environmental Liability.      6.18  Insurance.           Schedule 6.18  sets  forth  a  true,  complete  and  correct  description,  including  the  carriers,  policy  numbers,  expiration  dates,  types,  amounts  and  deductibles,  of  all  insurance  maintained  by  the  Parent  Borrower or by the Parent Borrower for its Subsidiaries as of the Effective Date and such insurance is in  full force and effect and all premiums have been duly paid if due.  The Parent Borrower and its Subsidiaries  have  insurance  in  such  amounts  and  covering  such  risks  and  liabilities  as  are,  when  considered  in  its  entirety, in the good faith judgment of the Parent Borrower prudent in the ordinary course of business of  the Parent Borrower and its Subsidiaries.    6.19  Collateral Documents.           (a)   The Security Agreement, upon execution and delivery thereof by the parties thereto, will  create in favor of the Administrative Agent, for the ratable benefit of the holders of the Obligations, a legal,  valid and enforceable security interest in the Collateral (as defined in the Security Agreement) and (i) when  each  Certificated  Security  (as  defined  in  the  Security  Agreement)  evidencing  any  Pledged  Equity  (as  defined in the Security Agreement) is delivered to the Administrative Agent, the Security Agreement shall  constitute a fully perfected first priority Lien under federal or  state Laws of the United States on, and  security interest in, all right, title and interest of the Loan Parties party to the Security Agreement in such  Certificated Security (as defined in the Security Agreement)y o, in each case prior and superior in right to  any other person, and (ii) when Uniform Commercial Code financing statements in appropriate form are  filed in the offices as required by the Uniform Commercial Code, the Lien created under the Collateral  Documents will constitute a fully perfected Lien under federal or state Laws of the United States on, and  security interest in, all right, title and interest of the Loan Parties in all such Collateral as to which a security  interest  may  be  perfected  by  such  a  filing  (other  than  Intellectual  Property,  as  defined  in  the  Security  Agreement), in each case prior and superior in right to any other person, other than with respect to Liens  expressly permitted by Section 8.02.           (b)   Upon the recordation of the notices of grant of security interest in the form required by the  Security Agreement with the United States Patent and Trademark Office and the United States Copyright  Office  and  Uniform  Commercial  Code  financing  statements  in  appropriate  form  filed  in  the  offices  as  required by the Uniform Commercial Code, the Security Agreement shall constitute a fully perfected Lien  under federal or state Laws of the United States on, and security interest in, all right, title and interest of the  Loan Parties in the Intellectual Property (as defined in the Security Agreement) in which a security interest  may be perfected by filing in the United States and its territories and possessions, in each case prior and  superior in right to any other person (it being understood that subsequent recordings in the United States  Patent and Trademark Office and the United States Copyright Office may be necessary to perfect a Lien on                                              98  CHAR1\1732710v2 

 

   registered Trademarks, trademark applications, Patents, patent applications and Copyrights acquired by the  Loan Parties after the date hereof).           (c)    The Dutch Share Pledge Agreement and each other Collateral Document, upon execution  and delivery thereof by the parties thereto, will create in favor of the Administrative Agent, for the ratable  benefit of the holders of the Obligations, a legal, valid and enforceable security interest in the Collateral  purported to be covered thereby, and such Collateral Document shall constitute a valid security interest and  Lien under applicable Law on, and security interest in, all right, title and interest of the Loan Parties party  to such Collateral), in each case to the extent and in the manner required under the applicable Collateral  Document and prior and superior in right to any other person, other than with respect to Liens expressly  permitted by Section 8.02.                  6.20  Beneficial Ownership.           As of the First Amendment Effective Date, the information included in any Beneficial Ownership  Certification delivered to the Administrative Agent or any Lender, if applicable, is true and correct in all  respects.      6.21  Labor Matters.           As of the Effective Date, there are no strikes, lockouts or slowdowns against the Parent Borrower  or any Subsidiary pending or, to the knowledge of the Parent Borrower, threatened.  The consummation of  the Transactions will not give rise to any right of termination or right of renegotiation on the part of any  union under any collective bargaining agreement to which the Parent Borrower or any Subsidiary is bound.   Except to the extent any of the following, individually or in the aggregate, could not reasonably be expected  to have a Material Adverse Effect, (a) the hours worked by and payments made to employees of the Parent  Borrower and the Subsidiaries have not been in violation in any material respect of the Fair Labor Standards  Act  or  any  other  applicable  federal,  state,  local  or  foreign  Law  dealing  with  such  matters  and  (b)  all  payments due from the Parent Borrower or any Subsidiary, or for which any claim may be made against  the Parent Borrower or any Subsidiary, on account of wages and employee health and welfare insurance  and other benefits, have been paid or accrued as a liability on the books of the Parent Borrower or such  Subsidiary.      6.22  Solvency.           Immediately  after  the  consummation  of  the  Transactions  to  occur  on  the  Effective  Date  and  immediately following the making of each Loan and after giving effect to the application of the proceeds  of each Loan, and before and after giving effect to the consummation of the Effective Date Acquisition on  a Pro Forma Basis, (a) the fair value of the assets of the Loan Parties taken as a whole, at a fair valuation,  will exceed their debts and liabilities, subordinated, contingent or otherwise; (b) the present fair saleable  value of the property of the Loan Parties taken as a whole will be greater than the amount that will be  required  to  pay  the  probable  liability  of  their  debts  and  other  liabilities,  subordinated,  contingent  or  otherwise, as such debts and other liabilities become absolute and matured; (c) the Loan Parties taken as a  whole will be able to pay their debts and liabilities, subordinated, contingent or otherwise, as such debts  and  liabilities  become  absolute  and  matured;  and  (d)  the  Loan  Parties  taken  as  a  whole  will  not  have  unreasonably small capital with which to conduct the business in which they are engaged as such business  is now conducted and is proposed to be conducted following the Effective Date.                                              99  CHAR1\1732710v2 

 

     6.23  Government Sanctions.    No  Loan  Party,  nor  any  of  their  Subsidiaries,  nor,  to  the  knowledge  of  the  Loan  Parties  and  their  Subsidiaries, any director, officer, employee, agent, affiliate or representative thereof, is an individual or  entity that is, or is owned or controlled by any individual or entity that is (i) currently the subject or target  of any Sanctions, (ii) included on OFAC’s List of Specially Designated Nationals, Her Majesty’s Treasury’s  Consolidated List of Financial Sanctions Targets and the Investment Ban List, or any similar list enforced  by any other relevant sanctions authority applicable to the Loan Parties or any of their Subsidiaries or (iii)  located, organized or resident in a Designated Jurisdiction    6.24   Anti-Corruption Laws.             The  Loan  Parties  and  their  Subsidiaries  have  conducted  their  business  in  compliance  with  the  United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, the Patriot Act and other  similar anti-corruption legislation in other jurisdictions, and have instituted and maintained policies and  procedures designed to promote and achieve compliance with such Laws.           6.25  No Affected Financial Institution or Covered Entity.             Neither the Parent Borrower nor any Subsidiary is an Affected Financial Institution or a  Covered Entity.           6.26  Additional ERISA Representations.             No Borrower is or will be using “plan assets” (within the meaning of Section 3(42) of ERISA or  otherwise) of one or more Benefit Plans with respect to such Borrower’s entrance into, participation in,  administration of and performance of the Loans, the Letters of Credit, the Commitments or this Agreement.    6.27  Representations as to Foreign Obligors.            (a)   Such  Foreign  Obligor  is  subject  to  civil  and  commercial  Laws  with  respect  to  its  obligations under this Agreement and the other Loan Documents to which it is a party (collectively as to  such  Foreign  Obligor,  the  “Applicable  Foreign  Obligor  Documents”),  and  the  execution,  delivery  and  performance by such Foreign Obligor of the Applicable Foreign Obligor Documents constitute and will  constitute private and commercial acts and not public or governmental acts.  Neither such Foreign Obligor  nor any of its property has any immunity from jurisdiction of any court or from any legal process (whether  through  service  or  notice,  attachment  prior  to  judgment,  attachment  in  aid  of  execution,  execution  or  otherwise) under the Laws of the jurisdiction in which such Foreign Obligor is organized and existing in  respect of its obligations under the Applicable Foreign Obligor Documents.                  (b)   The Applicable Foreign Obligor Documents are in proper legal form under the Laws of the  jurisdiction in which such Foreign Obligor is organized and existing for the enforcement thereof against  such Foreign Obligor under the Laws of such jurisdiction, and to ensure the legality, validity, enforceability,  priority or admissibility in evidence of the Applicable Foreign Obligor Documents.  It is not necessary to  ensure the legality, validity, enforceability, priority or admissibility in evidence of the Applicable Foreign  Obligor Documents that the Applicable Foreign Obligor Documents be filed, registered or recorded with,  or  executed  or  notarized before,  any  court  or  other  authority  in the  jurisdiction  in  which such  Foreign  Obligor is organized and existing or that any registration charge or stamp or similar tax be paid on or in  respect of the Applicable Foreign Obligor Documents or any other document, except for (i) any such filing,                                             100  CHAR1\1732710v2 

 

   registration, recording, execution or notarization as has been made or is not required to be made until the  Applicable Foreign Obligor Document or any other document is sought to be enforced and (ii) any charge  or tax as has been timely paid.                (c)    There is no tax, levy, impost, duty, fee, assessment or other governmental charge, or any  deduction or withholding, imposed by any Governmental Authority in or of the jurisdiction in which such  Foreign Obligor is organized and existing either (i) on or by virtue of the execution or delivery of the  Applicable  Foreign  Obligor  Documents  or  (ii) on  any  payment  to be  made  by  such  Foreign  Obligor  pursuant to the Applicable Foreign Obligor Documents, except as has been disclosed to the Administrative  Agent.                  (d)   The execution, delivery and performance of the Applicable Foreign Obligor Documents  executed  by  such  Foreign  Obligor  are,  under  applicable  foreign exchange  control  regulations  of  the  jurisdiction in which such Foreign Obligor is organized and existing, not subject to any notification or  authorization except (i) such as have been made or obtained or (ii) such as cannot be made or obtained until  a  later  date  (provided,  that,  any  notification  or  authorization  described  in  clause  (ii) shall  be  made  or  obtained as soon as is reasonably practicable).           6.28  Status as Senior Indebtedness.             The  Obligations  constitute  “Designated  Senior  Indebtedness”  or any  similar  designation  (with  respect to Indebtedness having the maximum rights as “senior debt”) under and as defined in any agreement  governing any subordinated Indebtedness and the subordination provisions set forth in each such agreement  are legally valid and enforceable against the parties thereto.            6.29  Dutch Works Council.             No works council (ondernemingsraad) has been established which has the right to advise in relation  to  the  entry  into  and  performance  of  this  Agreement  and  no  Dutch  Loan  Party  is  in  the  process  of  establishing a works council.                                                                                    ARTICLE VII                                                                             AFFIRMATIVE COVENANTS           The Loan Parties covenant and agree with each Lender that so long as this Agreement shall remain  in effect and until the Commitments have been terminated and the principal of and interest on each Loan,  all Fees and all other expenses or amounts payable under any Loan Document shall have been paid in full  and all Letters of Credit have been canceled or have expired and all amounts drawn thereunder have been  reimbursed in full, unless the Required Lenders shall otherwise consent in writing, the Loan Parties will,  and will cause each of the Subsidiaries to:           7.01  Existence; Business and Properties; Compliance with Laws.           (a)   Do or cause to be done all things necessary to preserve, renew and keep in full force and  effect its legal existence, except as otherwise expressly permitted under Section 8.05.                (b)    Do or cause to be done all things necessary to obtain, preserve, renew, extend and keep in  full force and effect all rights, licenses, permits, franchises, authorizations, Patents, Copyrights, Trademarks  and trade names used in or relating to the conduct of its business, except where the failure to do so could  not  reasonably  be  expected  to  have  a  Material  Adverse  Effect;  maintain  and  operate  such  business  in                                             101  CHAR1\1732710v2 

 

   substantially  the  manner  in  which  it  is  presently  conducted  and  operated,  including  any  reasonable  extension, development or expansion thereof; and at all times maintain and preserve all property material  to the conduct of such business and keep such property in good repair, working order and condition and  from  time  to  time  make,  or  cause  to  be  made,  all  needful  and  proper  repairs,  renewals,  additions,  improvements  and  replacements  thereto  necessary  in  order  that  the  business  carried  on  in  connection  therewith may be properly conducted at all times, except where the failure to do so could not reasonably be  expected to have a Material Adverse Effect.          (c)    Comply  with  all  applicable  Laws,  rules,  regulations  and  decrees  and  orders  of  any  Governmental Authority, whether now in effect or hereafter enacted, except where the failure to do so could  not reasonably be expected to have a Material Adverse Effect.   7.02  Insurance.           (a)   Keep  its  insurable  properties  adequately  insured  at  all  times  by  financially  sound  and  reputable insurers; maintain such other insurance, to such extent and against such risks, including fire and  other risks insured against by extended coverage, as is customary with companies in the same or similar  businesses operating in the same or similar locations, including public liability insurance against claims for  personal injury or death or property damage occurring upon, in, about or in connection with the use of any  properties owned, occupied or controlled by it; and maintain such other insurance as may be required by  Law.          (b)   Cause the Administrative Agent and its successors and assigns to be named as lender’s loss  payee, as its interest may appear, and/or additional insured with respect to any such insurance providing  liability coverage or coverage in respect of any Collateral, and cause each provider of any such insurance  to  agree,  by  endorsement  upon  the  policy  or  policies  issued  by it  or  by  other  instruments  reasonably  acceptable the Administrative Agent, that it will give the Administrative Agent thirty (30) days’ (or in the  case of nonpayment of premium, ten (10) days’) prior written notice before any such policy or policies shall  be altered or canceled (or such lesser number of days’ notice as the Administrative Agent may agree); and  cause all such policies to provide that neither the Parent Borrower, the Administrative Agent nor any other  party  shall  be  a  coinsurer  thereunder  and  to  contain  a  “Replacement  Cost  Endorsement”,  without  any  deduction for depreciation, and such other provisions as the Administrative Agent may reasonably require  from time to time to protect its interests; deliver insurance certificates evidencing all such policies to the  Administrative Agent; upon the occurrence of an Event of Default, deliver original or certified copies of all  such policies to the Administrative Agent upon its request.          (c)   Notify the Administrative Agent immediately whenever any separate insurance concurrent  in form or contributing in the event of loss with that required to be maintained under this Section 7.02 is  taken out by the Parent Borrower; and promptly deliver to the Administrative Agent a duplicate original  copy of such policy or policies.          (d)   Authorize the Administrative Agent, as the attorney-in-fact of each of the Domestic Loan  Parties and for the benefit of the Lenders, upon the occurrence and during the continuance of an Event of  Default, without the consent of the applicable Domestic Loan Party, (i) to adjust and compromise proceeds  payable under such insurance policies, (ii) to collect, receive and give receipts for such insurance proceeds  in the name of such Domestic Loan Party, the Administrative Agent and the Lenders and (iii) to endorse  such Domestic Loan Party’s name upon any instrument in payment thereof.                                                102  CHAR1\1732710v2 

 

   7.03  Taxes.           Pay all taxes, assessments and governmental charges or levies imposed upon it or upon its income  or profits or in respect of its property, before the same shall become delinquent or in default; provided,  however, that, such payment and discharge shall not be required with respect to any such tax, assessment,  charge or levy so long as (a) the validity or amount thereof shall be contested in good faith by appropriate  proceedings and each Borrower shall have set aside on its books adequate reserves with respect thereto in  accordance with GAAP and such contest operates to suspend collection of the contested obligation, tax,  assessment or charge and enforcement of a Lien or (b) the nonpayment thereof could not reasonably be  expected to result in a Material Adverse Effect.    7.04  Financial Statements, Reports, Etc.           In the case of the Parent Borrower, furnish to the Administrative Agent (either physically or through  electronic delivery reasonably acceptable to the Administrative Agent), which shall furnish to each Lender:         (a)     within ninety (90) days after the end of each fiscal year, its consolidated balance sheet and  related statements of income, stockholders’ equity and cash flows showing the financial condition of the  Parent Borrower and its consolidated Subsidiaries as of the close of such fiscal year and the results of its  operations and the operations of such Subsidiaries during such year, together with comparative figures for  the immediately preceding fiscal year, all audited by Ernst & Young LLP or other independent public  accountants of recognized national standing and accompanied by an opinion of such accountants (which  shall not be qualified in any material respect, other than a “going concern” qualification solely with respect  to, or as a result of, an upcoming maturity date of any Indebtedness created hereunder and under the other  Loan Documents occurring within one year from the time such opinion is delivered) to the effect that such  consolidated financial statements fairly present, in all material respects, the financial condition and results  of operations of the Parent Borrower and its consolidated Subsidiaries on a consolidated basis in accordance  with GAAP consistently applied;         (b)     within forty five (45) days after the end of each of the first three (3) fiscal quarters of each  fiscal year, its consolidated balance sheet and related statements of income, stockholders’ equity and cash  flows showing the financial condition of the Parent Borrower and its consolidated Subsidiaries as of the  close of such fiscal quarter and the results of its operations and the operations of such Subsidiaries during  such fiscal quarter and the then elapsed portion of the fiscal year, and comparative figures for the same  periods in the immediately preceding fiscal year, all certified by one of its Responsible Officers as fairly  presenting, in all material respects, the financial condition and results of operations of the Parent Borrower  and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied,  subject to normal year-end audit adjustments;         (c)     concurrently with any delivery of financial statements under Sections 7.04(a) and (b), a  certificate of the accounting firm (in the case of Section 7.04(a)) or Responsible Officer (in the case of  Section  7.04(b))  opining  on  or  certifying  such  statements  (which  certificate,  when  furnished  by  an  accounting firm, may be limited to accounting matters and disclaim responsibility for legal interpretations  and which may be provided by a Responsible Officer if accounting firms generally are not providing such  certificates) (a “Compliance Certificate”) (i) certifying that no Event of Default or Default has occurred or,  if  such  an  Event  of  Default  or  Default  has  occurred,  specifying  the  nature  and  extent  thereof  and  any  corrective action taken or proposed to be taken with respect thereto and (ii) setting forth computations in  reasonable detail satisfactory to the Administrative Agent showing the Consolidated Total Leverage Ratio  and demonstrating compliance with the covenants contained in Section 8.10 and, in the case of a certificate  delivered with the financial statements required by Sections 7.04(a), certifying that there has been no change                                             103  CHAR1\1732710v2 

 

   in the business activities, assets or liabilities of the Loan Parties, or if there has been any such change,  describing such change in reasonable detail and certifying that the Loan Parties are in compliance with  Section 8.08;         (d)     within  forty  five  (45)  days  after  the  commencement  of  each fiscal  year  of  the  Parent  Borrower, a detailed consolidated budget for such fiscal year (including a projected consolidated balance  sheet and related statements of projected operations and cash flows as of the end of and for such fiscal  year);         (e)     promptly after the same become publicly available, copies of all periodic and other reports,  proxy statements and other materials filed by the Parent Borrower or any Subsidiary with the SEC, or any  Governmental Authority succeeding to any or all of the functions of the SEC, or with any national securities  exchange, or distributed to its shareholders, as the case may be;         (f)     promptly after the receipt thereof by the Parent Borrower or any Subsidiary, a copy of any  “management  letter”  received  by  any  such  person  from  its  certified  public  accountants  and  the  management’s response thereto; and              (g)     promptly, from time to time, such other information regarding the operations, business  affairs and financial condition of the Parent Borrower or any Subsidiary, or compliance with the terms of  any Loan Document, as the Administrative Agent or any Lender may reasonably request.                  Documents required to be delivered pursuant to Section 7.04 (to the extent any such documents are  included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered,  shall be deemed to have been delivered on the date (i) on which the Parent Borrower posts such documents,  or provides a link thereto on the Parent Borrower’s website on the Internet at the website address listed on  Schedule 11.02; or (ii) on which such documents are posted on the Parent Borrower’s behalf on an Internet  or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a  commercial, third-party website or whether sponsored by the Administrative Agent); provided, that: (i) the  Parent Borrower shall deliver paper copies of such documents to the Administrative Agent or any Lender  that requests the Parent Borrower to deliver such paper copies until a written request to cease delivering  paper copies is given by the Administrative Agent or such Lender and (ii) the Parent Borrower shall notify  the  Administrative  Agent  (by  telecopier  or  electronic  mail)  of the  posting  of  any  such  documents  and  provide  to  the  Administrative  Agent  by  electronic  mail  electronic  versions  (i.e.,  soft  copies)  of  such  documents.  Notwithstanding anything contained herein, in every instance the Parent Borrower shall be  required  to  provide  paper  copies  of  the  Compliance  Certificates  required  by  Section  7.04(c)  to  the  Administrative Agent.  Except for such Compliance Certificates, the Administrative Agent shall have no  obligation to request the delivery or to maintain copies of the documents referred to above, and in any event  shall  have  no  responsibility  to  monitor  compliance  by  the  Parent  Borrower  with  any  such  request  for  delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies  of such documents.                  Each Borrower hereby acknowledges that (a) the Administrative Agent and/or the Arrangers will  make available to the Lenders and the L/C Issuer materials and/or information provided by or on behalf of  such Borrower hereunder (collectively, the “Borrower Materials”) by posting the Borrower Materials on  Debt Domain, IntraLinks, Syndtrak or another similar electronic system (the “Platform”) and (b) certain of  the Lenders (each, a  “Public Lender”) may have personnel who do not wish to receive material non-public  information  with  respect  to  such  Borrower  or  its  Affiliates,  or  the  respective  securities  of  any  of  the  foregoing, and who may be engaged in investment and other market-related activities with respect to such  Person’s securities.  Each Borrower hereby agrees that (w) all Borrower Materials that are to be made  available to Public Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum,                                             104  CHAR1\1732710v2 

 

   shall mean that the word “PUBLIC” shall appear prominently on the first page thereof; (x) by marking  Borrower Materials  “PUBLIC,” such Borrower shall be deemed to have authorized the Administrative  Agent, the Arrangers, the L/C Issuer and the Lenders to treat such Borrower Materials as not containing  any material non-public information with respect to such Borrower or its securities for purposes of United  States federal and state securities Laws (provided, however, that, to the extent such Borrower Materials  constitute Information, they shall be treated as set forth in Section 11.07); (y) all Borrower Materials marked  “PUBLIC” are permitted to be made available through a portion of the Platform designated as “Public Side  Information;” and (z) the Administrative Agent and the Arrangers shall be entitled to treat any Borrower  Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not  designated as “Public Side Information.”      7.05  Litigation and Other Notices.           Furnish to the Administrative Agent, the L/C Issuer and each Lender prompt (and, in any event,  within five (5) Business Days, except with resection to Section 7.05(a), which shall be within three (3)  Business Days) written notice of the following:           (a)   any Event of Default or Default, specifying the nature and extent thereof and the corrective  action (if any) taken or proposed to be taken with respect thereto;           (b)   the filing or commencement of, or any written threat or written notice of intention of any  person to file or commence, any action, suit or proceeding, whether at Law or in equity or by or before any  Governmental Authority, against any Borrower or any Subsidiary thereof that could reasonably be expected  to result in a Material Adverse Effect;           (c)   the occurrence of any ERISA Event that, alone or together with any other ERISA Events  that have occurred, could reasonably be expected to result in a Material Adverse Effect; and           (d)   any  development  that  has  resulted  in,  or  could  reasonably  be  expected  to  result  in,  a  Material Adverse Effect.    7.06  [Reserved].    7.07  Maintaining Records; Access to Property and Inspections.           Keep proper books of record and account in which full, true and correct entries in conformity with  GAAP and all requirements of Law are made of all dealings and transactions in relation to its business and  activities.  Each Loan Party will, and will cause each of its Subsidiaries to, permit any representatives  designated by the Administrative Agent (which may include representatives of one or more Lenders) to  visit  and  inspect  the  financial  records  and  the  properties  of  the  Parent  Borrower  or  any  Subsidiary  at  reasonable  times  and  as  often  as  reasonably  requested  and  to  make  extracts  from  and  copies  of  such  financial records, and permit any representatives designated by the Administrative Agent to discuss the  affairs,  finances  and  condition  of  the  Parent  Borrower  or  any  Subsidiary  with  the  officers  thereof  and  independent accountants therefor; provided, that, (x) any representatives designated by the Administrative  Agent (which may include representatives of one or more Lenders) shall not exercise such rights more often  than one time during any calendar year absent the existence of an Event of Default that is continuing and  (y) only one such visit and inspection during any calendar year shall be at the Borrowers’ expense, except  during the existence of an Event of Default (in which case all such visits and inspections shall be at the  Borrowers’ expense).  Except following the occurrence and during the continuance of any Event of Default,  the Borrowers shall be entitled to have a representative present at all such discussions and to obtain a copy  of all written requests for information relating to any Loan Party made by the Administrative Agent or any                                             105  CHAR1\1732710v2 

 

   Lender to any third party.  Within one hundred twenty (120) days after the close of each fiscal year of the  Parent Borrower, at the request of the Administrative Agent or the Required Lenders, the Parent Borrower  will hold a meeting (at a mutually agreeable location and time or, at the option of the Parent Borrower, by  conference call) with all lenders who choose to attend such meeting at which meeting shall be reviewed the  financial  results  of  the  previous  fiscal  year  and  the  financial  condition  of  the  Parent  Borrower  and  its  Subsidiaries for the current fiscal year of the Parent Borrower.    7.08  Use of Proceeds.           Use the proceeds of the Credit Extensions (a) to refinance certain existing Indebtedness, (b) to  finance the Effective Date Acquisition, the subsequent merger of the Muuto Entities and costs and expenses  associated  therewith,  (c)  for  permitted  share  repurchases  and  Permitted  Acquisitions  (including  the  Effective Date Acquisition and the subsequent merger of the Muuto Entities) and (d) for working capital,  capital expenditures and other lawful corporate purposes; provided, that, in no event shall the proceeds of  the Credit Extensions or any Letter of Credit (x) be used in contravention of any Law or of any Loan  Document or (y) directly or indirectly, be used, or lent, contributed or otherwise made available for use to  any Person, to fund any activities of or business with any Person, or in any Designated Jurisdiction, that, at  the time of such funding, is the subject of Sanctions, or in any other manner that will result in a violation  by  any  Person  (including  any  Person  participating  in  the  transaction,  whether  as  Lender,  Arranger,  Administrative Agent, L/C Issuer, Swing Line Lender, or otherwise) of Sanctions.    7.09  Further Assurances.           (a)   Execute any and all further documents, financing statements, agreements and instruments,  and take all further action (including filing or recording, as applicable, Uniform Commercial Code and  other financing statements) that may be required under applicable Law, or that the Required Lenders or the  Administrative Agent may reasonably request, in order to effectuate the transactions contemplated by the  Loan Documents and in order to grant, preserve, protect and perfect the validity and first priority (subject  to Liens permitted under Section 8.02) of the security interests created or intended to be created by the  Collateral Documents.  The Parent Borrower will cause any subsequently acquired or organized wholly- owned Subsidiary (other than an Immaterial Domestic Subsidiary, an Excluded Domestic Subsidiary or an  Immaterial  Foreign  Subsidiary)  to  become  a  Guarantor  by  executing  a  Guarantor  Joinder  Agreement;  provided, that, (x) if personal property collateral has been released pursuant to Section 10.10, no personal  property of Guarantors that are Domestic Subsidiaries shall be required to be pledged and (y) Guarantors  that are Foreign Subsidiaries shall not be required to make any pledge of, or grant security interests in, any  of their assets.  Unless a Release of Collateral Event shall have occurred and be continuing, the Parent  Borrower will cause (x) the Equity Interests of any subsequently acquired or organized Domestic Subsidiary  (other than an Excluded Domestic Subsidiary) wholly-owned by any Loan Party, (y) subject to clause (C)  of the proviso immediately below, sixty five percent (65%) of the issued and outstanding Equity Interests  entitled to vote and one hundred percent (100%) of the issued and outstanding Equity Interests not entitled  to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) in each wholly-owned First Tier Foreign  Subsidiary and wholly-owned First Tier Excluded Domestic Subsidiary and (z) if the Equity Interests of  the Parent Borrower are held or acquired by any holding company whose sole or primary purpose is holding  such  Equity  Interests,  the  Equity  Interests  of  the  Parent  Borrower,  in  each  case,  to  be  pledged  to  the  Administrative Agent pursuant to the Security Agreement; provided, that, (A) (i) the certificated Equity  Interests of any First Tier Foreign Subsidiary that is not a Material Subsidiary or a Loan Party shall only be  pledged pursuant to the Security Agreement or other New York Law-governed security document (and not  a security document governed by the Law of the applicable foreign jurisdiction) and (ii) the Equity Interests  of any First Tier Foreign Subsidiary (that is certificated or uncertificated) that is a Material Subsidiary or  Loan Party shall be pledged pursuant to a security document governed by the Law of the jurisdiction of  such First Tier Foreign Subsidiary or Loan Party, (B) the uncertificated Equity Interests of any First Tier                                             106  CHAR1\1732710v2 

 

   Foreign Subsidiary that is not a Material Subsidiary or a Loan Party shall not be required to be pledged as  Collateral, (C) if pursuant to a change in applicable Law after December 31, 2017, the grant of a security  interest  of  a  greater  percentage  of  the  Equity  Interests  of  a  Foreign  Subsidiary  or  Excluded  Domestic  Subsidiary could not reasonably be expected to cause the undistributed earnings of such Subsidiary, as  determined  for  United  States  federal  income  tax  purposes,  to  be  treated  as  a  deemed  dividend  to  such  Subsidiary’s United States parent (a “Permissible Additional Grant”), such Permissible Additional Grant  shall  be  made;  provided,  however  that,  if  pursuant  to  a  further  change  in  applicable  Law  the  Parent  Borrower or any other Domestic Subsidiary would become liable for any additional United States federal  income taxes solely by reason of such Permissible Additional Grant, then, to the extent permitted by the  Laws  of  the  respective  foreign  jurisdiction,  such  Permissible  Additional  Grant  shall  be  immediately  released and (D) no Equity Interests of any First Tier Foreign Subsidiary shall be pledged if it is directly or  indirectly  the  subsidiary  of  an  Excluded  Domestic  Subsidiary  the  Equity  Interests  of  which  have  been  pledged.  In addition, subject to the last sentence of this Section 7.09(a), from time to time, the Parent  Borrower will, at its cost and expense, promptly secure the Obligations by pledging or creating, or causing  to be pledged or created, perfected security interests in the assets (other than Excluded Property) of the  Parent Borrower and its wholly-owned Domestic Subsidiaries (other than Excluded Domestic Subsidiaries  and Immaterial Domestic Subsidiaries) including personal property acquired subsequent to the Effective  Date  (but  excluding  Excluded  Property)).   Such  security  interests  and  Liens  will  be  created  under  the  Collateral Documents and other security agreements and other instruments and documents in form and  substance reasonably satisfactory to the Administrative Agent, and the Parent Borrower shall deliver or  cause to be delivered to the Lenders all such instruments and documents (including legal opinions, title  insurance  policies  and  lien  searches)  as  the  Administrative  Agent  shall  reasonably  request  to  evidence  compliance  with  this  Section 7.09.   The  Parent  Borrower  agrees to  provide  such  evidence  as  the  Administrative Agent shall reasonably request as to the perfection and priority status of each such security  interest and Lien.  Subject to Schedule 7.13, the actions required under this Section 7.09 shall be taken  within sixty (60) days (or such later time as may be acceptable to the Administrative Agent) after the event  giving rise to the requirement to take such action.  Notwithstanding the foregoing, (x) the Administrative  Agent  in  its  discretion  may  determine  not  to  take  a  security  interest  in  those  assets  as  to  which  the  Administrative Agent shall determine, in its reasonable discretion, that the cost of obtaining such Lien  (including any mortgage, stamp, intangibles or other tax) are excessive in relation to the benefit to the  Lenders of the security afforded thereby and (y) Liens required to be granted pursuant to this Section 7.09  shall be subject to exceptions and limitations consistent with those set forth in the Security Documents as  in effect on the Effective Date (to the extent appropriate in the applicable jurisdiction) and no action need  be taken to perfect any security interest in vehicles or any deposit account or securities account (each as  defined in the Uniform Commercial Code) other than the filing of a financing statement under the Uniform  Commercial Code; and           (b)   Should the Parent Borrower fail to maintain the Requisite Ratings, within thirty (30) days  of notice thereof from either the Required Lenders or the Administrative Agent, the Parent Borrower shall  cause the security interests in all personal property of the Domestic Loan Parties to be re-granted to secure  the Obligations in accordance with the requirements and conditions of Section 7.09(a) (it being understood  and agreed that such re-granted security interests will have a lien priority at least equal to the lien priority  existing as of the time of the Release of Collateral Event).    7.10  Environmental Laws.           Except, in each case, as would not, individually or in the aggregate, have a Material Adverse Effect:                  (a)    Comply with, and use reasonable efforts to ensure compliance by all contractors, tenants  and subtenants, if any, with, all applicable Environmental Laws, and obtain and comply with and maintain,  and use reasonable efforts to ensure that all contractors, tenants and subtenants obtain and comply with and                                             107  CHAR1\1732710v2 

 

   maintain, any and all Environmental Permits required of them by any applicable Environmental Laws.  For  purposes of this Section 7.10(a), noncompliance with the foregoing shall be deemed not to constitute a  breach  of  this  covenant;  provided,  that,  upon  learning  of  any  actual  or  suspected  noncompliance,  each  Borrower shall promptly undertake reasonable efforts to achieve compliance.                  (b)   Conduct and complete all investigations, studies, sampling and testing, and all remedial,  removal and other actions required to be undertaken by any Loan Party under Environmental Laws and  promptly  comply  with  all  orders  and  directives  applicable  to  any  Loan  Party  of  all  Governmental  Authorities regarding Environmental Laws; provided, however, that, this covenant shall be deemed not  violated if the relevant Loan Party promptly challenges in good faith any such order or directive in a manner  consistent  with  all  applicable  Environmental  Laws  and  other  requirements  of  Law  and  pursues  such  challenge or challenges diligently.           (c)   Generate, use, treat, store, release, dispose of, and otherwise manage Hazardous Materials  in a manner that would not reasonably be expected to result in an Environmental Liability to any Loan Party  or to affect any real property owned or leased by any of them; and take reasonable efforts to prevent any  other  person  from  generating,  using,  treating,  storing,  releasing,  disposing  of,  or  otherwise  managing  Hazardous Materials in a manner that could reasonably be expected to result in an Environmental Liability  to, or affect any real property owned or operated by, any Loan Party.  For purposes of this Section 7.10(c),  noncompliance with the foregoing shall be deemed not to constitute a breach of this covenant; provided,  that, upon learning of any actual or suspected noncompliance, each Borrower shall promptly undertake  reasonable efforts to remove such Hazardous Materials, if required by applicable Environmental Law, or  otherwise  remediate  them,  if  required  by  applicable  Environmental  Law,  in  a  manner  consistent  with  applicable Environmental Law.           (d)   If  required  by  applicable  Law,  promptly  take  all  commercially  reasonable  actions  necessary to address any Environmental Liability.           (e)   Deliver written notice to the Administrative Agent as soon as practicable following receipt  of all environmental audits, investigations, analyses and reports of any kind or character, and all written  communications, with respect to any Environmental Liability that, individually or in the aggregate, could  reasonably be expected to result in a Material Adverse Effect, and, upon the request of the Administrative  Agent, promptly deliver copies to the Administrative Agent of such environmental audits, investigations,  analyses, reports and written communications.    7.11   Anti-Corruption Laws.             Conduct its business in compliance with the United States Foreign Corrupt Practices Act of 1977,  the UK Bribery Act 2010 and other similar anti-corruption legislation in other jurisdictions and maintain  policies and procedures designed to promote and achieve compliance with such Laws.     7.12  Approvals and Authorizations.              Maintain all authorizations, consents, approvals and licenses from, exemptions of, and filings and  registrations  with,  each  Governmental  Authority  of  the  jurisdiction  in  which  each  Foreign  Obligor  is  organized and existing, and all approvals and consents of each other Person in such jurisdiction, in each  case that are required in connection with the Loan Documents.            7.13  Post-Closing Obligations.                                                 108  CHAR1\1732710v2 

 

         Within the time periods specified on Schedule 7.13, satisfy the requirements set forth on Schedule  7.13.                                         ARTICLE VIII                                                                               NEGATIVE COVENANTS          The Loan Parties covenant and agree with each Lender that, so long as this Agreement shall remain  in effect and until the Commitments have been terminated and the principal of and interest on each Loan,  all Fees and all other expenses or amounts payable under any Loan Document have been paid in full and  all Letters of Credit have been cancelled or have expired and all amounts drawn thereunder have been  reimbursed in full, unless the Required Lenders shall otherwise consent in writing, the Loan Parties will  not, nor will they cause or permit any of the Subsidiaries to:          8.01  Indebtedness.         Incur, create, assume or permit to exist any Indebtedness, except:           (a)   Indebtedness existing on the Effective Date and set forth in Schedule 8.01, including in the  case of lines of credit the maximum amount of Indebtedness permitted to be incurred thereunder;           (b)   Indebtedness created hereunder and under the other Loan Documents;           (c)   Indebtedness under completion guarantees, appeal bonds, performance or surety bonds or  with respect to workers’ compensation claims, in each case incurred in the ordinary course of business;           (d)   Indebtedness under or in respect of Swap Contracts that are not speculative in nature;           (e)   Indebtedness arising from the honoring by a bank or other financial institution of a check,  draft or similar instrument inadvertently drawn against insufficient funds in the ordinary course of business,  so long as such Indebtedness is extinguished within ten (10) Business Days of the incurrence thereof;                  (f)   Cash  Management  Obligations  and  other  Indebtedness  in  respect  of  netting  services,  overdraft protections and similar arrangements in each case in connection with deposit accounts;          (g)    Indebtedness  consisting  of  (i)  the  financing  of  insurance  premiums  or  (ii)  take-or-pay  obligations contained in supply arrangements, in each case, in the ordinary course of business;          (h)    pledges  or  deposits  in  the  ordinary  course  of  business  in  connection  with  workers’  compensation, unemployment insurance and other social security legislation, other than any Lien imposed  by ERISA;          (i)    with  respect  to  the  Parent  Borrower  or  any  Subsidiary,  purchase  money  Indebtedness  (including Capital Lease Obligations) and Synthetic Lease Obligations in an aggregate principal amount  not to exceed $100,000,000 at any time outstanding;          (j)    unsecured subordinated Indebtedness of any Loan Party (which may be guaranteed by any  Loan Party on a subordinated basis); provided, that:                                                             109  CHAR1\1732710v2 

 

                (i)    at all times prior to the Covenant Trigger Period, incurrence of unlimited unsecured        subordinated Indebtedness of any Loan Party shall be permitted so long as (A) as of the date of        such incurrence (or, in the case of a Limited Condition Transaction, the date of the signing of the        Acquisition  Agreement  with  respect  thereto),  after  giving  effect  to  the  incurrence  of  any  such        Indebtedness,  (1)  the  Parent  Borrower  is  in  Pro  Forma  Compliance  with  the  then  applicable        financial covenants set forth in Section 8.10 and (2) no Default or Event of Default shall have        occurred and be continuing or would result therefrom, (B) such Indebtedness matures at least six        (6) months after the Maturity Date, (C) no payments of principal of such Indebtedness may be made        until the earlier of (X) the six-month anniversary of the Maturity Date and (Y) the termination of        the Commitments and payment in full of all Obligations (other than (A) contingent indemnification        obligations and (B) Cash Management Obligations and obligations under or in respect of Swap        Contracts  (other  than  with  respect  to  amounts  currently  due  thereunder  for  which  the        Administrative Agent has received prior written notice)) and the expiration or termination of all        Letters of Credit, and (D) such Indebtedness is subordinated to the Obligations on such other terms        and conditions reasonably satisfactory to the Administrative Agent in form and substance; and                 (ii)   at all times during the Covenant Trigger Period, incurrence of unlimited unsecured         subordinated Indebtedness of any Loan Party shall be permitted so long as (A) as of the date of         such incurrence (or, in the case of a Limited Condition Transaction, the date of the signing of the         Acquisition  Agreement  with  respect  thereto),  after  giving  effect  to  the  incurrence  of  any  such         Indebtedness,  (1)  the  Parent  Borrower  is  in  Pro  Forma  Compliance  with  the  then  applicable         financial covenants set forth in Section 8.10, (2) no Default or Event of Default shall have occurred        and be continuing or would result therefrom and (3) on a Pro Forma Basis the Consolidated Total        Net Leverage Ratio shall not exceed (x) with respect to any incurrence during the period from the        Effective Date through and including the date that is one (1) year after the Effective Date, 5.25 to        1.0, and (y) with respect to any incurrence thereafter, 5.0 to 1.0, (B) such Indebtedness matures at         least six (6) months after the Maturity Date, (C) no payments of principal of such Indebtedness         may be made until the earlier of (X) the six-month anniversary of the Maturity Date and (Y) the         termination of the Commitments and payment in full of all Obligations (other than (A) contingent         indemnification obligations and (B) Cash Management Obligations and obligations under or in         respect of Swap Contracts (other than with respect to amounts currently due thereunder for which         the Administrative Agent has received prior written notice)) and the expiration or termination of         all Letters of Credit, and (D) such Indebtedness is subordinated to the Obligations on such other         terms and conditions reasonably satisfactory to the Administrative Agent in form and substance;                  (k)   other unsecured Indebtedness of any Loan Party not contemplated in the foregoing clauses  of this Section 8.01; provided, that:                       (i)    at all times prior to the Covenant Trigger Period, incurrence of unlimited unsecured         Indebtedness of any Loan Party under this Section 8.01(k) shall be permitted so long as (A) as of        the date of such incurrence (or, in the case of a Limited Condition Transaction, the date of the        signing of the Acquisition Agreement with respect thereto), after giving effect to the incurrence of        such Indebtedness, (1) the Parent Borrower is in Pro Forma Compliance with the then applicable        financial covenants set forth in Section 8.10 and (2) no Default or Event of Default shall have        occurred and be continuing or would result therefrom, and (B) such Indebtedness matures at least        six (6) months after the Maturity Date; and                 (ii)   at  all  times  during  the  Covenant  Trigger  Period,  incurrence  of  unsecured         Indebtedness of any Loan Party under this Section 8.01(k) in an aggregate principal amount not to        exceed $400,000,000 at any time outstanding shall be permitted so long as, (A) as of the date of        such incurrence (or, in the case of a Limited Condition Transaction, the date of the signing of the                                             110  CHAR1\1732710v2 

 

         Acquisition  Agreement  with  respect  thereto),  after  giving  effect  to  the  incurrence  of  such        Indebtedness,  (1)  the  Parent  Borrower  is  in  Pro  Forma  Compliance  with  the  then  applicable        financial covenants set forth in Section 8.10, (2) no Default or Event of Default shall have occurred        and be continuing or would result therefrom and (3) on a Pro Forma Basis the Consolidated Total        Net Leverage Ratio shall not exceed (x) with respect to any incurrence during the period from the        Effective Date through and including the date that is one (1) year after the Effective Date, 5.25 to        1.0, and (y) with respect to any incurrence thereafter, 5.0 to 1.0, and (B) such Indebtedness matures        at least six (6) months after the Maturity Date;           (l)   secured or unsecured Indebtedness assumed by the Parent Borrower or any Subsidiary in  connection with a Permitted Acquisition in an aggregate principal amount not to exceed $75,000,000 at any  time outstanding (of which up to $37,500,000 at any time outstanding may be secured); provided, that, (i)  such  Indebtedness  exists  at  the  time  of  such  Acquisition  and  is  not  created  in  contemplation  of  or  in  connection with such Acquisition, and (ii) no party is an obligor under such Indebtedness that was not an  obligor immediately prior to such Permitted Acquisition (other than any subsequently formed or acquired  Subsidiaries of any party that was the target of such Acquisition, to the extent required to become an obligor  with respect thereto under the applicable documents governing such Indebtedness);                  (m)   secured  or  unsecured  Indebtedness  of  Foreign  Subsidiaries  in  an  aggregate  principal  amount  not  to  exceed  $35,000,000  at  any  time  outstanding  (of  which  up  to  $25,000,000  at  any  time  outstanding may be secured); provided, that, any Foreign Subsidiary that is an obligor with respect to any  such Indebtedness (other than securitizations, purchase money Indebtedness or Indebtedness incurred solely  to finance the acquisition, construction or renovation of any real property or other asset of any Foreign  Subsidiary, in each case with respect to itself and no any other Person) in an aggregate principal amount  greater than or equal to $15,000,000 that is not already a Guarantor hereunder shall become a Guarantor  hereunder pursuant to Section 7.09;                (n)    Indebtedness incurred to extend, renew or refinance any Indebtedness described in Sections  8.01(a),  (i),  (j),  (k),  (l)  or  (m)  (“Refinancing  Indebtedness”);  provided,  that,  (i) such  Refinancing  Indebtedness is in an aggregate principal amount not greater than the aggregate principal amount of the  Indebtedness being extended, renewed or refinanced, plus the amount of any interest, premiums or penalties  required to be paid thereon plus fees and expenses associated therewith and by an amount equal to any  existing commitments unutilized thereunder, (ii) such Refinancing Indebtedness has the same or a later or  equal  final  maturity  and  the  same  or  a  longer  or  equal  weighted  average  life  to  maturity  than  the  Indebtedness being extended, renewed or refinanced, (iii) if the Indebtedness being extended, renewed or  refinanced  is  subordinated  to  the  Obligations,  the  Refinancing Indebtedness  is  subordinated  to  the  Obligations on terms no less favorable to the Lenders than the Indebtedness being extended, renewed or  refinanced, (iv) only the obligors in respect of the Indebtedness being extended, renewed or refinanced (and  any subsequently formed or acquired Subsidiaries of such obligor, to the extent required to become an  obligor with respect thereto under the applicable documents governing such Indebtedness) may become  obligated with respect to such Refinancing Indebtedness, (v) the security interest(s) granted in connection  with  such  Refinancing  Indebtedness,  if  any,  shall  not  cover  more  collateral  (other  than  subsequently  acquired assets of the applicable obligors of the same type as those assets expressly required to become  collateral for such obligations to the extent required under documents governing such Indebtedness and  which is not Collateral hereunder), in any material respect, than the security interest(s), if any, granted in  connection with the Indebtedness being refinanced and (vi) the non-economic covenants, events of default,  remedies and other provisions of the Refinancing Indebtedness, when taken as a whole, shall be materially  no  less  favorable  to  the  Lenders  than  those  contained  in  the  Indebtedness  being  extended,  renewed  or  refinanced;                                               111  CHAR1\1732710v2 

 

         (o)    Indebtedness of the Parent Borrower owing to any Subsidiary and of any Subsidiary owing  to the Parent Borrower or any other Subsidiary; provided, that, (i) any such Indebtedness that is owed by a  Subsidiary that is not a Loan Party must be an Investment (in the form of Indebtedness) under Section 8.04  and  (ii)  such  Indebtedness  must  be  subject  to  subordination  terms  reasonably  acceptable  to  the  Administrative Agent (provided, that, with respect to such Indebtedness existing on the Effective Date,  evidence of such subordination to be provided within the period set forth in Part II of Schedule 7.13);                (p)    Guarantees with respect to Indebtedness permitted under this Section 8.01 to the extent that  the primary obligation is permitted under this Section 8.01 and to the extent such Guarantees constitute  Investments permitted under Section 8.04;                (q)    Indebtedness constituting indemnification, deferred purchase price adjustments, earn outs  or other similar contingent payment obligations incurred in connection with any Acquisition, Investment  or Asset Sale not prohibited hereunder incurred in the ordinary course of business;                  (r)   Indebtedness  representing  deferred  compensation  to  directors,  officers,  employees,  members of management and consultants of Parent Borrower or any of its Subsidiaries incurred in the  ordinary course of business; and                   (s)   other secured or unsecured Indebtedness of the Parent Borrower or any Loan Party of a  type not already contemplated by the above provisions in this Section 8.01 in an aggregate principal amount  not to exceed $35,000,000 at any time outstanding (of which up to $25,000,000 at any time outstanding  may be secured).    Notwithstanding anything in this Agreement to the contrary, Indebtedness of the Muuto Entities (and  following the consummation of the Muuto Merger, Muuto A/S) (other than Indebtedness permitted under  Sections 8.01(b) and (o)) shall not exceed $5,000,000 in the aggregate at any time outstanding until such  time as all obligations under Part I of Schedule 7.13 have been satisfied or waived in accordance with the  terms of Section 11.01.    8.02  Liens.           Create,  incur,  assume  or  permit  to  exist  any  Lien  on  any  property  or  assets  (including  Equity  Interests or other securities of any person, including any Subsidiary) now owned or hereafter acquired by  it or on any income or revenues or rights in respect of any thereof, except:           (a)   Liens on property or assets of the Parent Borrower and its Subsidiaries existing on the  Effective Date and set forth in Schedule 8.02; provided, that, such Liens shall secure only those obligations  which they secure on the Effective Date and any extensions, renewals and replacements thereof permitted  hereunder;           (b)   any Lien created under the Loan Documents;                  (c)   any Lien existing on any property or asset prior to the acquisition thereof by the Parent  Borrower or any Subsidiary (including Liens securing Indebtedness to the extent permitted under Section  8.01(l)  and  any  Refinancing  Indebtedness  thereof);  provided,  that, (i)  such  Lien  is  not  created  in  contemplation of or in connection with such acquisition and (ii) such Lien does not apply to any other  property or assets of the Parent Borrower or any Subsidiary;                  (d)   Liens for taxes not yet due or which are being contested in compliance with Section 7.03;                                               112  CHAR1\1732710v2 

 

         (e)    carriers’,  landlords’,  warehousemen’s,  mechanics’,  materialmen’s,  repairmen’s  or  other  like Liens arising in the ordinary course of business and securing obligations that are not due and payable  or which are being contested in compliance with Section 7.03 or for which appropriate reserves have been  established;           (f)   pledges  and  deposits  made  in  the  ordinary  course  of  business  in  compliance  with  workmen’s compensation, unemployment insurance and other social security Laws or regulations;           (g)   deposits to secure the performance of bids, trade contracts (other than for Indebtedness),  leases (other than Capital Lease Obligations), statutory obligations, surety and appeal bonds, performance  bonds and other obligations of a like nature incurred in the ordinary course of business;           (h)   zoning restrictions, easements, rights-of-way, restrictions on use of real property and other  similar encumbrances incurred in the ordinary course of business which, in the aggregate, do not materially  detract from the value of the property subject thereto or interfere with the ordinary conduct of the business  of the Parent Borrower or any of its Subsidiaries as currently operated;           (i)   Liens arising out of judgments or awards in respect of which the Parent Borrower or any  of the Subsidiaries shall in good faith be prosecuting an appeal or proceedings for review in respect of  which there shall be secured a subsisting stay of execution pending such appeal or proceedings; provided,  that, the aggregate amount of all such judgments or awards (and any cash and the fair market value of any  property subject to such Liens) does not exceed $25,000,000 at any time outstanding;           (j)   licenses, leases or subleases granted by the Parent Borrower or any Subsidiary to third  persons in the ordinary course of business not interfering in any material respect with the business of the  Parent Borrower or any Subsidiary;           (k)   Liens  in  favor  of  customs  or  revenue  authorities  arising  as  a  matter  of  Law  to  secure  payment of customs duties in connection with the importation of goods;            (l)   any interest of a lessor under Liens arising from precautionary UCC financing statement  filings regarding operating leases entered into by the Parent Borrower or any of its Subsidiaries in the  ordinary course of business;           (m)   Liens arising out of conditional sale, title retention, consignment or similar arrangements  for the sale of goods entered into by the Parent Borrower or any of its Subsidiaries in the ordinary course  of business;           (n)   Liens that are contractual or statutory setoff rights arising in the ordinary course of business  with financial institutions, relating to pooled deposit accounts or sweep accounts of the Parent Borrower  and its Subsidiaries to permit satisfaction of overdraft or similar obligations incurred in the ordinary course  of business, including created pursuant to the general conditions of a bank operating in the Netherlands  based  on  the  general  conditions  drawn  up  by  the  Netherlands  Bankers’  Association  (Nederlandse  Vereniging van Banken) and the Consumers Union (Consumentenbond) or relating to purchase orders or  other  agreements  entered  into  with  customers  of  the  Parent  Borrower  or  any  of  its  Subsidiaries  in  the  ordinary course of business;           (o)   Liens  (i)  on  any  cash  earnest  money  deposits  by  the  Parent Borrower  or  any  of  its  Subsidiaries in connection with any letter of intent or purchase agreement permitted under this Agreement,  (ii) pursuant to one or more escrow arrangements or other funding arrangements pursuant to which funds                                             113  CHAR1\1732710v2 

 

   will be segregated to pay all or any portion of the purchase price of any Acquisition permitted hereunder,  on such escrow arrangements and other funding arrangements;           (p)    any interest or title of a licensor, lessor or sublessor under any license or lease agreement  pursuant to which rights are granted to the Parent Borrower or any Subsidiary;          (q)    Liens deemed to exist in connection with Investments in repurchase agreements permitted  under this Agreement;           (r)    Liens securing Indebtedness permitted to be incurred pursuant to Section 8.01(i) and any  Refinancing  Indebtedness  thereof;  provided,  that, such  Liens  encumber  only  the  property  acquired  or  financed in connection with such Indebtedness and the products and proceeds thereof;                   (s)   Liens on assets of Foreign Subsidiaries securing Indebtedness of Foreign Subsidiaries to  the extent permitted to be incurred under Section 8.01(m);            (t)   Liens on any assets which are the subject of any GSA Transaction; and           (u)   Liens on assets of the Parent Borrower and its Subsidiaries securing Indebtedness permitted  to be incurred under Section 8.01(s).                 8.03  Sale and Lease-Back Transactions.           Enter into any arrangement, directly or indirectly, with any person whereby it shall sell or transfer  any property, real or personal, used or useful in its business, whether now owned or hereafter acquired, and  thereafter rent or lease such property or other property which it intends to use for substantially the same  purpose or purposes as the property being sold or transferred unless (a) the sale of such property is permitted  by Section 8.05 and (b) any Capital Lease Obligations, Synthetic Lease Obligations or Liens arising in  connection therewith are permitted by Sections 8.01 and 8.02, as applicable.    8.04  Investments, Loans and Advances.           Make or hold any Investments, except:           (a)   Permitted Investments;           (b)   Investments received in connection with the bankruptcy or reorganization of, or settlement  of delinquent accounts and disputes with, customers and suppliers, in each case in the ordinary course of  business;           (c)   the Parent Borrower and the Subsidiaries may make loans and advances in the ordinary  course of business to their respective employees so long as the aggregate principal amount thereof at any  time outstanding (determined without regard to any write-downs or write-offs of such loans and advances)  shall not exceed $3,000,000 at any time and advances in the ordinary course of business of payroll payments  to employees and for entertainment and travel expenses of employees;           (d)   any Borrower may enter into Swap Contracts in the ordinary course of business that are  not speculative in nature;           (e)   the Parent Borrower and its Subsidiaries may (i) acquire and hold receivables owing to it,  if created or acquired in the ordinary course of business and payable or dischargeable in accordance with                                             114  CHAR1\1732710v2 

 

   customary trade terms (including the dating of receivables) of the Parent Borrower or such Subsidiary and  (ii) make loans to customers, dealers and suppliers in the ordinary course of business and consistent with  past practices;          (f)    the Parent Borrower may acquire and hold obligations of one or more officers or other  employees  of  the  Parent  Borrower  or  its  Subsidiaries  in  connection  with  such  officers’  or  employees’  acquisition of Equity Interests of the Parent Borrower;          (g)    purchases of inventory, raw materials and related assets in the ordinary course of business;           (h)    Permitted Acquisitions;          (i)    Investments made by the Parent Borrower in or to any Subsidiary and by any Subsidiary  in  or  to  the  Parent  Borrower  or  in  or  to  another  Subsidiary;  provided,  that,  the  aggregate  amount  of  Investments by Loan Parties in or to, and Guarantees by Loan Parties of Indebtedness of any Subsidiary  that is not a Guarantor, shall not exceed $100,000,000 at any time outstanding; provided, further, however,  that, the foregoing limitation shall not apply to any Investments made pursuant to this Section 8.04(i) the  proceeds of which are used substantially concurrently to finance any Acquisition that constitutes (or will  constitute upon its consummation) a Permitted Acquisition;           (j)   Investments (including Investments by the Parent Borrower and the Subsidiaries in the  Equity Interests of the Subsidiaries) existing as of the Effective Date and set forth in Schedule 8.04;                (k)    Investments received in connection with an Asset Sale permitted hereunder; and                (l)    Investments of a type not already contemplated by the above provisions in this Section 8.04  by the Parent Borrower and the Subsidiaries shall be permitted on an unlimited basis so long as (i) after  giving effect to any such Investment, the Parent Borrower is in Pro Forma Compliance with the covenants  set forth in Section 8.10, and (ii) no Default or Event of Default shall have occurred and be continuing or  would result therefrom.           8.05  Mergers, Consolidations and Sales of Assets.           (a)   Merge into or consolidate with any other Person, or permit any other Person to merge into  or consolidate with it, or sell, transfer, lease or otherwise dispose of (in one transaction or in a series of  transactions)  all  or  substantially  all  of  the  assets  (whether  now  owned  or  hereafter  acquired)  of  any  Borrower or less than all the Equity Interests of any Subsidiary of such Borrower, or purchase, lease or  otherwise acquire (in one transaction or a series of transactions) all or any substantial part of the assets of  any other person, except that (i) the Parent Borrower and any Subsidiary may purchase and sell inventory,  materials,  equipment  or  Permitted  Investments  in  the  ordinary  course  of  business  and  may  license  intellectual property in the ordinary course of business, (ii) the Parent Borrower and any Subsidiary may  sell obsolete, damaged or worn-out assets in the ordinary course of business, (iii) any Borrower (other than  Parent Borrower) may merge or consolidate with or into any other Borrower or the Parent Borrower, so  long as, in the case of a merger or consolidation with  the Parent Borrower, the Parent Borrower is the  surviving entity, (iv) the Parent Borrower, Knoll Denmark and the Muuto Entities may consummate the  Effective Date Acquisition and the subsequent merger of the Muuto Entities, (v) if at the time thereof and  immediately after giving effect thereto no Event of Default or Default shall have occurred and be continuing  (t) any Subsidiary may change its form of organization in compliance with Section 8.11, if applicable, (u)  the Parent Borrower and any Subsidiary may make Investments and advances permitted under Section 8.04,  (v) any wholly owned Subsidiary of a Borrower may merge into such Borrower in a transaction in which  such  Borrower  is  the  surviving  corporation;  provided,  that,  if the Parent Borrower is a party to such                                             115  CHAR1\1732710v2 

 

   transaction, it must be the surviving Person, (w) any wholly owned Subsidiary (or Immaterial Domestic  Subsidiary) may merge into or consolidate with any other wholly owned Subsidiary or the Parent Borrower  in a transaction in which the surviving entity is a wholly owned Subsidiary and no person other than the  Parent  Borrower,  a  wholly  owned  Subsidiary  or  the  De  Minimis  Holders  receives  any  consideration  (provided, that, if any party to any such transaction is a Domestic Loan Party, the surviving entity of such  transaction shall be a Domestic Loan Party and if the Parent Borrower is a party to such transaction, the  Parent Borrower shall be  the surviving entity), (x) the Parent Borrower and any Subsidiary may make  Permitted Acquisitions, (y) any Subsidiary may merge with another person in a transaction constituting an  Asset Sale permitted hereunder, and (z) any Subsidiary may dissolve, liquidate or wind up its affairs at any  time provided that (1) such dissolution, liquidation or winding up, as applicable, could not reasonably be  expected  to  have  a  Material  Adverse  Effect  and  (2)  prior  to  or in  connection  with  such  dissolution,  liquidation or winding-up, as applicable, the assets of such entity shall have been transferred to a Domestic  Loan Party.                  (b)   Engage  in  any  Asset  Sale  not  otherwise  permitted  under  Section  8.05(a)  above  unless  (i) such Asset Sale is for consideration at least seventy five percent (75%) of which is cash or Permitted  Investments (other than in the case of a like-kind exchange or trade-in of one asset for another asset used  or useful in the business of the Parent Borrower and its Subsidiaries) or assumption of Indebtedness, (ii)  such  consideration  is  at  least  equal  to  the  fair  market  value  (as  reasonably  determined  by  the  Parent  Borrower) of the assets being sold, transferred, leased or disposed of and (iii) the fair market value of all  assets sold, transferred, leased or disposed of pursuant to this Section 8.05(b) shall not exceed (A) with  respect to any fiscal year of the Parent Borrower, seven and one-half percent (7.5%) of the total book value  of the assets of the Parent Borrower and its Subsidiaries on a consolidated basis, determined as of the date  of the most recent internally available balance sheet or (B) twenty five (25%) of the total book value of the  assets of the Parent Borrower and its Subsidiaries on a consolidated basis (which shall include the total  book value of assets acquired after the Effective Date with Equity Interests) in the period from the Effective  Date through the Maturity Date.  Upon a sale of assets or the sale of Equity Interests of a Subsidiary of a  Domestic Loan Party permitted by this Section 8.05, the Administrative Agent shall deliver to the Parent  Borrower, upon the Parent Borrower’s request and at the Parent Borrower’s expense, such documentation  as is reasonably necessary to evidence the release of the Administrative Agent’s security interest in such  assets or Equity Interests, including amendments or terminations of UCC financing statements, the return  of stock certificates and the release of a Guarantor (as applicable) from its obligations under the Loan  Documents.    8.06  Restricted Payments; Restrictive Agreements.            (a)   Declare or make, or agree to declare or make, directly or indirectly, any Restricted Payment  (including pursuant to any Synthetic Purchase Agreement), or incur any obligation (contingent (unless the  contingency is the repayment of the Obligations or receipt of consent from the requisite lenders under this  Agreement) or otherwise) to do so; provided, however, that:                 (i)    any  direct  or  indirect  Subsidiary  of  the  Parent  Borrower  may  declare  and  pay         dividends or make other distributions ratably to its equity holders;                 (ii)   so long as no Event of Default or Default shall have occurred and be continuing or         would result therefrom, (A) the Parent Borrower may repurchase Equity Interests of the Parent         Borrower owned by past or present officers, directors or employees of the Parent Borrower or the         Subsidiaries  or  make  payments  to  employees  of  the  Parent  Borrower  or  the  Subsidiaries  upon         termination of employment of such employees (including as a result of retirement or severance) in        connection with the exercise of stock options, stock appreciation rights or similar equity incentives        or equity based incentives pursuant to management incentive plans or in connection with the death                                             116  CHAR1\1732710v2 

 

         or  disability  of  such  employees  and  (B)  the  Parent  Borrower  or any  Subsidiary  may  make        repurchases of Equity Interests by the Parent Borrower deemed to occur upon the withholding of a        portion of the Equity Interests granted or awarded to a current or former director, officer, employee,        manager  or  director  of  such  Person,  or  consultant  or  advisor  or  any  spouses,  former  spouses,        successors, executors, administrators, heirs, legatees or distributees of any of the foregoing) to pay        for the Taxes payable by such Person upon such grant or award (or upon the vesting or settlement        thereof);  provided,  that,  such  Restricted  Payments  under  this  clause  (ii)  shall  not  exceed        $15,000,000 in any fiscal year (it being agreed that any amount not utilized in any fiscal year may        be carried forward and utilized in the immediately following fiscal year and that any amount spent        in any fiscal year shall be deemed to utilize any such carried forward amount first);                   (iii)  the Parent Borrower may make Restricted Payments to fund amounts payable to        any participant in any Plan of the Parent Borrower or the Subsidiaries upon the termination of the        employment of such participant in an amount not to exceed $5,000,000 in any fiscal year of the        Parent Borrower; and                              (iv)   in addition to the Restricted Payments in clauses (i) through (iii) above, the Parent        Borrower  and  its  Subsidiaries  may  make  additional  Restricted  Payments  (including  Restricted        Payments similar or dissimilar to those in clauses (i) through (iii) above); provided, that:                                     (A)    at all times prior to the Covenant Trigger Period, (1) Restricted Payments               in  an  aggregate  amount  not  to  exceed  $100,000,000  in  any  fiscal  year  of  the  Parent               Borrower shall be permitted so long as, as of the date of such Restricted Payment, (x) no               Default  or  Event  of  Default  shall  have  occurred  and  be  continuing  or  would  result               therefrom and (y) after giving effect to any such Restricted Payment on a Pro Forma Basis,               the Parent Borrower is in Pro Forma Compliance with the covenants set forth in Section               8.10, and (2) unlimited Restricted Payments shall be permitted so long as (x) no Default or               Event of Default shall have occurred and be continuing as of the date of such Restricted               Payment or would result therefrom and (y) after giving effect to such Restricted Payment               on a Pro Forma Basis, the Parent Borrower is in Pro Forma Compliance with the covenants               set forth in Section 8.10, and the Consolidated Total Net Leverage Ratio is 0.50  (a “half-              turn”) less than the ratio required to be in Pro Forma Compliance with the Consolidated               Total Net Leverage Ratio; and                                            (B)    at all times during the Covenant Trigger Period, (1) Restricted Payments               in an aggregate amount not to exceed $100,000,000 in any fiscal year shall be permitted so               long as, as of the date of such Restricted Payment, (x) no Default or Event of Default shall               have occurred and be continuing or would result therefrom and (y) after giving effect to               any such Restricted Payment on a Pro Forma Basis, the Parent Borrower is in Pro Forma               Compliance  with  the  covenants  set  forth  in  Section  8.10,  and  (2)  unlimited  Restricted               Payments  shall  be  permitted  so  long  as  (x)  no  Default  or  Event of  Default  shall  have               occurred  and  be  continuing  as  of  the  date  of  such  Restricted  Payment  or  would  result               therefrom and (y) after giving effect to such Restricted Payment on a Pro Forma Basis, the               Parent Borrower is in Pro Forma Compliance with the covenants set forth in Section 8.10,               and the Consolidated Secured Net Leverage Ratio does not exceed 3.0 to 1.0.                              (b)    Enter  into,  incur  or  permit  to  exist  any  agreement  or  other  arrangement  that  prohibits,  restricts or imposes any condition upon (i) the ability of the Parent Borrower or any Subsidiary to create,  incur or permit to exist any Lien upon any of its property or assets to secure the Obligations or (ii) the  ability of any Subsidiary to pay dividends or other distributions with respect to any of its Equity Interests  or to make or repay loans or advances to the Parent Borrower or any other Subsidiary or to Guarantee                                             117  CHAR1\1732710v2 

 

   Indebtedness of the Parent Borrower or any other Subsidiary; provided, that, the foregoing shall not apply  to restrictions or conditions (A) imposed by Law or by any Loan Document, (B) contained in agreements  relating to the sale of stock or assets of a Subsidiary pending such sale; provided, that, such restrictions and  conditions apply only to the property interest, rights, assets or such Subsidiary that is to be sold and such  sale is permitted hereunder, (C) imposed by any agreement relating to secured Indebtedness permitted by  this  Agreement  if  such  restrictions  or  conditions  apply  only  to  the  property  or  asset  securing  such  Indebtedness, (D) imposed under contracts with customers entered into the ordinary course of business that  contain restrictions on cash or other deposits or net worth, (E) that are binding on any Subsidiary or asset  at the time such Subsidiary or asset is acquired by the Parent Borrower or any Subsidiary, so long as such  obligation was not entered into in contemplation of such Person or asset becoming a Subsidiary of Parent  Borrower or an asset of Parent Borrower or any Subsidiary and does not extend to the Parent Borrower, any  other  Subsidiary  or  any  other asset  thereof,  as  applicable,  (F)  customary  restrictions  on  subletting,  transferring, or assigning any lease governing a leasehold interest, (G) customary provisions in joint venture  agreements and other similar agreements applicable to joint ventures and applicable to such joint venture  and its Equity Interests, (H) restrictions regarding licensing and sublicensing of intellectual property in the  ordinary course of business, (I) restrictions on cash earnest money deposits in favor of sellers in connection  with Permitted Acquisitions and (J) customary provisions in contracts entered into in the ordinary course  of business restricting the assignment thereof; provided, that, no such restrictions shall limit any of the  conditions described in clause (ii) of this Section 8.06(b).                 8.07  Transactions with Affiliates.           Except for transactions by or among Domestic Loan Parties, by or among Foreign Obligors or by  or  among  Foreign  Subsidiaries  that  are  not  Loan  Parties,  sell  or  transfer  any  property  or  assets  to,  or  purchase or acquire any property or assets from, or otherwise engage in any other transactions with, any of  its Affiliates, except that (a) the Parent Borrower or any Subsidiary may engage in any of the foregoing  transactions  at  prices  and  on  terms  and  conditions  not  less  favorable  to  the  Parent  Borrower  or  such  Subsidiary  than  could be  obtained  on an  arm’s-length  basis  from  unrelated  third  parties, (b) Restricted  Payments may be effected to the extent provided in Section 8.06, (c) reasonable fees and compensation  may be paid to, and indemnities may be provided on behalf of, officers, directors and employees of, and  consultants  to,  the  Parent  Borrower  and  the  Subsidiaries,  as  determined  by  the  board  of  directors  or  equivalent governing body or appropriate officers of the Parent Borrower in good faith, (d) securities may  be  issued  and  other  payments,  awards  or  grants  (in  cash,  equity securities  or  otherwise)  may  be  made  pursuant to, or with respect to the funding of, employment arrangements, stock options and stock ownership  plans approved by the board of directors or equivalent governing body of the Parent Borrower in good faith,  (e) the Loan Parties may perform their respective obligations under the terms of any registration rights  agreement, (f) Investments may be made to the extent permitted by Sections 8.01 and 8.04, and (g) transfers  of  property  or  assets  from  Loan  Parties  to  Foreign  Subsidiaries  in  the  ordinary  course  of  business  not  otherwise prohibited under this Agreement.    8.08  Business of Parent Borrower and Subsidiaries.           Engage at any time in any business or business activity other than the business currently conducted  by them and business activities that constitute a reasonable extension, development or expansion thereof  reasonably incidental thereto.    8.09  Amendments of Subordinated Indebtedness.           (a)   Permit any supplement, modification or amendment of any subordinated Indebtedness of  the Parent Borrower or any Subsidiary that would cause such Indebtedness to not be in compliance with                                             118  CHAR1\1732710v2 

 

   the subordination provisions of Section 8.01(j) or that is reasonably likely to adversely affect the ability of  the Borrowers to repay the Obligations when due without the prior written consent of the Administrative  Agent.           (b)   Except as permitted under Section 8.01(n), make (or give any notice with respect thereto)  any voluntary or optional payment or prepayment or redemption or acquisition for value of (including by  way of depositing money or securities with the trustee with respect thereto before due for the purpose of  paying when due), refund, refinance or exchange of any subordinated Indebtedness of the Parent Borrower  or any of its Subsidiaries.                  (c)   Make any payment of principal or interest on any subordinated Indebtedness of the Parent  Borrower  or  any  of  its  Subsidiaries  in  violation  of  the  subordination  provisions  of  such  subordinated  Indebtedness.   8.10  Financial Covenants.           (a)   Permit the Consolidated Interest Coverage Ratio as of the end of any fiscal quarter of the  Parent Borrower to be less than 3.0 to 1.0.                        (b)   Subject to the last proviso of this Section 8.10, at all times prior to the Covenant Trigger  Period, permit the Consolidated Total Net Leverage Ratio as of the end of any fiscal quarter of the Parent  Borrower to be greater than (i) for each fiscal quarter ending after the Effective Date through and including  the fiscal quarter ending on or about June 30, 2019, 4.25 to 1.0, and (ii) for each fiscal quarter ending  thereafter, 4.0 to 1.0; provided, that, after the Consolidated Total Net Leverage Ratio has stepped down to  4.0 to 1.0, the Consolidated Total Net Leverage Ratio may be increased, at the written election of the Parent  Borrower delivered to the Administrative Agent, by 0.25 to 1.0 (a “quarter-turn”) in connection with any  Acquisition (A) for which total consideration is in excess of $150,000,000, (B) for which seventy five  percent (75%) of the total consideration is cash consideration, and such cash portion of total consideration  is  funded  with  proceeds  of  Loans  or  other  Indebtedness  permitted  hereunder  and  (C)  which  otherwise  constitutes a Permitted Acquisition, with a 0.25 to 1.0 (a “quarter turn”) step-down at the first period of  four (4) fiscal quarters ending after the date that is twelve (12) months after the date of such Acquisition  (returning the required Consolidated Total Net Leverage Ratio to 4.0 to 1.0); provided, further, that, (1) in  any event, the maximum Consolidated Total Net Leverage Ratio for any period of four (4) fiscal quarters  shall not be increased to be greater than 4.25 to 1.0, (2) the maximum Consolidated Total Net Leverage  Ratio shall not be increased pursuant to the foregoing proviso on more than two (2) occasions during the  term of this Agreement and (3) following any instance of increasing the Consolidated Total Net Leverage  Ratio in accordance with this proviso, there must be a period of a least one (1) full fiscal quarter in which  the required Consolidated Total Net Leverage Ratio is 4.0 to 1.0 before the Parent Borrower may again  elect to increase the Consolidated Total Net Leverage Ratio in accordance with this proviso.                        (c)   Subject to the last proviso of this Section 8.10, at all times during the Covenant Trigger  Period, permit the Consolidated Secured Net Leverage Ratio as of the end of any fiscal quarter of the Parent  Borrower to be greater than the required ratio opposite the applicable fiscal quarter ending set forth below:                             Fiscal Quarters Ending            Required Consolidated Secured Net Leverage                                                                 Ratio     Fiscal quarters ending June 30, 2018, September           4.25 to 1.0   30, 2018, December 31, 2018 and March 31, 2019                                              119  CHAR1\1732710v2 

 

     Fiscal quarters ending June 30, 2019, September            4.0 to 1.0   30, 2019, December 31, 2019 and March 31, 2020     Fiscal quarters ending June 30, 2020, September           3.75 to 1.0   30, 2020, December 31, 2020 and March 31, 2021      Fiscal quarter ending June 30, 2021 and each              3.5 to 1.0              fiscal quarter thereafter     provided,  however,  notwithstanding  anything  to  the  contrary  in this  Agreement,  in  the  event  that  the  Obligations are no longer secured by Collateral (as a result of the release of Collateral pursuant to Section  10.10(d) and/or Section 8(h)(i) of the Security Agreement or otherwise), the Loan Parties shall be required  to comply with the requirements of Section 8.10(b), regardless of whether or not a Covenant Trigger Period  exists.    8.11  Fiscal Year, Etc.           (a)   Change its fiscal year-end to a date other than December 31.                  (b)   With respect to any Loan Party, without providing ten (10) days prior written notice to the  Administrative Agent (or such lesser period as the Administrative Agent may agree), change its name or its  state of formation or form of organization.          (c)   Amend any of its Organization Documents in a manner that is materially adverse to the  Lenders.   8.12  Sanctions.           Directly or indirectly, use the proceeds of any Credit Extension, or lend, contribute or otherwise  make available such proceeds to any Subsidiary, joint venture partner or other Person, to fund any activities  of or business with any Person, or in any Designated Jurisdiction, that, at the time of such funding, is the  subject of Sanctions, or in any other manner that will result in a violation by any Person (including any  Person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions.   8.13   Anti-Corruption Laws.             Directly or indirectly, use any Credit Extension or the proceeds of any Credit Extension for any  purpose which would breach the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act  2010 and other similar anti-corruption legislation in other jurisdictions.                                         ARTICLE IX                                                                        EVENTS OF DEFAULT AND REMEDIES    9.01  Events of Default.           In case of the happening of any of the following events (“Events of Default”):           (a)   any representation or warranty made or deemed made in or in connection with any Loan  Document or the borrowings or issuances of Letters of Credit hereunder, or any representation, warranty,                                             120  CHAR1\1732710v2 

 

   statement or information contained in any written report, certificate, financial statement or other written  instrument furnished in connection with or pursuant to any Loan Document, shall prove to have been false  or misleading in any material respect when so made, deemed made or furnished;          (b)    default shall be made in the payment in the required currency of any principal of any Loan  or the reimbursement with respect to any L/C Disbursement when and as the same shall become due and  payable, whether at the due date thereof or at a date fixed for prepayment thereof or by acceleration thereof  or otherwise;           (c)    default shall be made in the payment in the required currency of any interest on any Loan  or L/C Disbursement or of any Fee or any other amount (other than an amount referred to in (b) above) due  under any Loan Document, when and as the same shall become due and payable, and such default shall  continue unremedied for a period of three (3) Business Days;          (d)    default shall be made in the due observance or performance by the Parent Borrower or any  Subsidiary of any covenant, condition or agreement contained in Section 7.01(a), 7.05(a), 7.08 or in Article  VIII;            (e)   default shall be made in the due observance or performance by the Parent Borrower or any  Subsidiary of any covenant, condition or agreement contained in any Loan Document (other than those  specified in clauses (b), (c) or (d) above) and such default shall continue unremedied for a period of thirty  (30) days after notice thereof from the Administrative Agent or any Lender to the Parent Borrower;           (f)   (i) any Loan Party or any Material Subsidiary shall fail to pay any principal or interest due  in respect of any Material Indebtedness, when and as the same shall become due and payable, or (ii) any  other event or condition occurs that results in any Material Indebtedness becoming due prior to its scheduled  maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder  or holders of any Material Indebtedness or any trustee or agent on its or their behalf to cause any Material  Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof,  prior to its scheduled maturity or prior to its scheduled date of payment, as applicable; provided, that, this  clause (ii) shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or  transfer or Involuntary Disposition of the property or assets securing such Indebtedness;           (g)   an involuntary proceeding shall be commenced or an involuntary petition shall be filed in  a court of competent jurisdiction seeking (i) relief in respect of any Loan Party or any Material Subsidiary,  or of a substantial part of the property or assets of any Loan Party or a Material Subsidiary, under Title 11  of the United States Bankruptcy Code, as now constituted or hereafter amended, or any other Debtor Relief  Law, (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for  any Loan Party or any Material Subsidiary or for a substantial part of the property or assets of any Loan  Party or a Material Subsidiary or (iii) the winding-up or liquidation of any Loan Party or any Material  Subsidiary; and such proceeding or petition shall continue undismissed for sixty (60) days or an order or  decree approving or ordering any of the foregoing shall be entered;           (h)   any Loan Party or any Material Subsidiary shall (i) voluntarily commence any proceeding  or file any petition seeking relief under Title 11 of the United States Bankruptcy Code, as now constituted  or hereafter amended, or any other Debtor Relief Law, (ii) consent to the institution of, or fail to contest in  a timely and appropriate manner, any proceeding or the filing of any petition described in (g) above, (iii)  apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar  official for any Loan Party or any Material Subsidiary or for a substantial part of the property or assets of  any Loan Party or any Material Subsidiary, (iv) file an answer admitting the material allegations of a petition  filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors (including                                             121  CHAR1\1732710v2 

 

   by way of executory attachment (executorial beslag) or interlocutory attachment (conservatoir beslag);  provided, that, an interlocutory attachment will only constitute an Event of Default if it has not been lifted  within 20 Business Days from the moment the relevant Loan Party has become aware thereof), (vi) become  unable, admit in writing its inability or fail generally to pay its debts as they become due or (vii) take any  action for the purpose of effecting any of the foregoing or (viii) a Dutch Loan Party gives notice to the  Dutch tax authorities under section 36(2) of the Dutch 1990 Tax Collection Act (Invorderingswet 1990);           (i)   one or more judgments for the payment of money in an aggregate amount in excess of  $25,000,000 (net of amounts covered by independent third party insurance as to which the insurer has been  notified of such judgment or order and does not deny coverage and of amounts covered by an indemnity  from a person that, in the reasonable judgment of the Administrative Agent, is creditworthy) from a party  shall be rendered against any Loan Party, any Material Subsidiary or any combination thereof and the same  shall  remain  unsatisfied  and  undischarged  for  a  period  of  thirty  (30)  consecutive  days  during  which  execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to levy  upon assets or properties of any Loan Party or any Material Subsidiary to enforce any such judgment;           (j)   an ERISA Event shall have occurred or a Foreign Pension Plan shall have failed to comply  with, or be funded in accordance with, applicable Law that, when taken together with all other ERISA  Events that have occurred and Foreign Pension Plans that have failed to comply with, or be funded in  accordance with, applicable Law, could reasonably be expected to result in liability of the Parent Borrower  and its ERISA Affiliates in an aggregate amount exceeding $25,000,000;           (k)   any Loan Document (other than those which are ministerial in nature), 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 (other than contingent Obligations for which no claim has been  made),  ceases  to  be  in  full  force  and  effect;  or  any  Loan  Party  contests  in  any  manner  the  validity  or  enforceability  of  any  Loan  Document;  or  any  Loan  Party  denies  that  it  has  any  or  further  liability  or  obligation under any provision of any Loan Document, or purports to revoke, terminate or rescind any Loan  Document, other than as a result of the discharge of any Guarantor in accordance with the terms of the Loan  Documents;           (l)   any security interest in any material portion of Collateral purported to be created by any  Collateral Document shall cease to be, or shall be asserted by the Parent Borrower or any other Loan Party  not to be, a valid, perfected, first priority (except as otherwise expressly provided in this Agreement or such  Collateral Document) security interest in the securities, assets or properties covered thereby, except to the  extent that any such loss of perfection or priority results from the failure of the Administrative Agent to  maintain possession of certificates representing securities pledged under the Security Agreement and except  to the extent that such loss is covered by a lender’s title insurance policy and the related insurer shall not  have denied or disclaimed in writing that such loss is covered by such title insurance policy;           (m)   there shall have occurred a Change of Control; or           (n)   the subordination provisions of the documents evidencing or governing any subordinated  Indebtedness of the Parent Borrower or any of its Subsidiaries 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;    then, and in every such event (other than an event with respect to any Loan Party described in Sections  9.01(g) or (h)(i)-(v)), and at any time thereafter during the continuance of such event, the Administrative  Agent may, and at the request of the Required Lenders shall, by written notice to the Parent Borrower, take  any or all of the following actions, at the same or different times:  (i) terminate forthwith the Commitments                                             122  CHAR1\1732710v2 

 

   of  each  Lender  to  make  Loans  and  the  L/C  Issuer  to  make  L/C  Credit  Extensions,  whereupon  such  Commitments  shall  immediately  terminate,  (ii)  require  that  the Borrowers  Cash  Collateralize  the  L/C  Obligation (in an amount equal to the Minimum Collateral Amount with respect thereto whereupon such  Cash Collateral shall be immediately due and payable) and (iii) declare the Loans then outstanding to be  forthwith due and payable in whole or in part, whereupon the principal of the Loans so declared to be due  and payable, together with accrued interest thereon and any unpaid accrued Fees and all other liabilities of  the Borrowers accrued hereunder and under any other Loan Document, shall become forthwith due and  payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby  expressly waived by the Parent Borrower, anything contained herein or in any other Loan Document to the  contrary notwithstanding; and in any event with respect to any Loan Party described in Sections 9.01(g) or  (h)(i)-(v)), the Commitments of each Lender to make Loans and any obligation of the L/C Issuer to make  L/C  Credit  Extensions  shall  automatically  terminate  and  the  principal  of  the  Loans  then  outstanding,  together with accrued interest thereon and any unpaid accrued Fees and all other liabilities of the Loan  Parties  accrued  hereunder  and  under  any  other  Loan  Document,  shall  automatically  become  due  and  payable, and the obligation of the Parent Borrower to Cash Collateralize the L/C Obligations as aforesaid  shall automatically become effective, without presentment, demand, protest or any other notice of any kind,  all of which are hereby expressly waived by the Loan Parties, anything contained herein or in any other  Loan Document to the contrary notwithstanding.    9.02  Application of Funds.           After the exercise of remedies provided for in Section 9.01 (or after the Loans have automatically  become immediately due and payable and the L/C Obligations have automatically been required to be Cash  Collateralized as set forth in the last paragraph of Section 9.01), any amounts received on account of the  Obligations shall, subject to Sections 2.14 and 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, interest and Letter of Credit Fees) payable to the Lenders and        the L/C Issuer (including fees, charges and disbursements of counsel to the respective Lenders and        the L/C Issuer 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 Letter        of Credit Fees and interest on the Loans and L/C Borrowings and fees, premiums and scheduled        periodic payments, and any interest accrued thereon, due under any Swap Contract between any        Loan Party or any Subsidiary and any Qualifying Counterparty, to the extent such Swap Contract        is  permitted  by  Section  8.04(d),  ratably  among  the  Lenders  (and,  in  the  case  of  such  Swap        Contracts,  Affiliates  of  Lenders)  and  the  L/C  Issuer  in  proportion  to  the  respective  amounts        described in this clause Third held by them;                 Fourth, to (a) payment of that portion of the Obligations constituting unpaid principal of        the Loans and L/C Borrowings, (b) payment of breakage, termination or other payments, and any        interest accrued thereon, due under any Swap Contract between any Loan Party or any Subsidiary        and any Qualifying Counterparty, to the extent such Swap Contract is permitted by Section 8.03(d),        (c) payments of amounts due under any Treasury Management Agreement between any Loan Party                                             123  CHAR1\1732710v2 

 

         or any Subsidiary and any Qualifying Counterparty and (d) Cash Collateralize that portion of L/C        Obligations comprised of the aggregate undrawn amount of Letters of Credit (to the extent not        otherwise Cash Collateralized by the Borrowers pursuant to Section 2.03 and 2.14), ratably among        the Lenders (and, in the case of such Swap Contracts and Treasury Management Agreements, other        Qualifying Counterparties) and the L/C Issuer 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 Borrowers or as otherwise required by Law.           Subject to Section 2.03(c), amounts used to Cash Collateralize the aggregate undrawn amount of  Letters of Credit pursuant to clause Fourth above shall be applied to satisfy drawings under such Letters of  Credit as they occur.  If any amount remains on deposit as Cash Collateral after all Letters of Credit have  either been fully drawn or expired, such remaining amount shall be applied to the other Obligations, if any,  in the order set forth above.  Excluded Swap Obligations with respect to any Guarantor shall not be paid  with amounts received from such Guarantor or such Guarantor’s assets, but appropriate adjustments shall  be  made  with  respect  to  payments  from  other  Loan  Parties  to  preserve  the  allocation  to  Obligations  otherwise set forth above in this Section 9.02.           Notwithstanding the foregoing, Obligations arising under Treasury Management Agreements and  Swap Contracts with Qualifying Counterparties shall be excluded from the application described above if  the  Administrative  Agent  has  not  received  a  Secured  Party  Designation  Notice,  together  with  such  supporting  documentation  as  the  Administrative  Agent  may  request,  from  the  applicable  Qualifying  Counterparty (other than the Administrative Agent or an Affiliate of the Administrative Agent).  Each  Qualifying  Counterparty  not  a  party  to  this  Agreement  that  has given  the  notice  contemplated  by  the  preceding sentence shall, by such notice, be deemed to have acknowledged and accepted the appointment  of the Administrative Agent pursuant to the terms of Article X for itself and its Affiliates as if a “Lender”  party hereto.    9.03  Collection Allocation Mechanism.           (a)   On the CAM Exchange Date, the Lenders shall automatically and without further action  be  deemed  to  have  exchanged  interests  in  the  Specified  Obligations  under  each  of  the  Classes  (and  participation interests in Letters of Credit) such that, in lieu of the interest of each Lender in the Specified  Obligations  under  each  Class  in  which  it  shall  participate  as  of  such  date  (including  the  principal,  reimbursement, interest and fee obligations of each Loan Party in respect of each such Classes) and, if such  Lender holds a Revolving Commitment as of such date, such Lender’s participation interests in Letters of  Credit,  such  Lender  shall  own  an  interest  equal  to  such  Lender’s  CAM  Percentage  in  the  Specified  Obligations under each of the Classes (including the principal, reimbursement, interest and fee obligations  of each Loan Party in respect of each such Classes) and hold a participation interest in each Letter of Credit  equal to its CAM Percentage thereof.  Each Lender, each Participant and the Administrative Agent hereby  consents and agrees to the CAM Exchange.  Each Lender hereby agrees from time to time to execute and  deliver to the Administrative Agent all such promissory notes and other instruments and documents as the  Administrative  Agent  shall  reasonably  request  to  evidence  and  confirm  the  respective  interests  and  obligations of the Lenders after giving effect to the CAM Exchange, and each Lender agrees to surrender  any promissory notes originally received by such Lender to the Administrative Agent against delivery of  any promissory notes so executed and delivered; provided, however, that, the failure of any Lender to accept  any such promissory note, instrument or document shall not affect the validity or effectiveness of the CAM  Exchange.  On the CAM Exchange Date, each Lender whose funded Exposures after giving effect to the  CAM  Exchange  shall  exceed  its  funded  Exposures  before  giving  effect  thereto  shall  pay  to  the  Administrative Agent the amount of such excess in the applicable currency or currencies (or, if requested                                             124  CHAR1\1732710v2 

 

   by the Administrative Agent, in Dollars), and the Administrative Agent shall pay to each of the Lenders,  out of the amount so received by it, the amount by which such Lender’s funded Exposures before giving  effect to the CAM Exchange exceeds such funded Exposures after giving effect to the CAM Exchange.          (b)    Each Lender’s obligation to exchange its interests pursuant to the CAM Exchange shall be  absolute  and  unconditional  and  shall  not  be  affected  by  any  circumstance  including  (i)  any  setoff,  counterclaim, recoupment, defense or other right which such Lender may have against any other Lender,  any Loan Party or any other Person for any reason whatsoever, (ii) the occurrence or continuance of a  Default, (iii) any adverse change in the condition (financial or otherwise) of the Parent Borrower or any of  its Subsidiaries or any other Person, (iv) any breach of this Agreement by any Loan Party, any Lender or  any other Person, or (v) any other circumstance, happening or event whatsoever, whether or not similar to  any of the foregoing.          (c)    For purposes of this Section 9.03:                 (i)    “CAM Exchange” means the exchange of the Lenders’ interests provided in this        Section 9.03.                              (ii)   “CAM  Exchange  Date”  means  the  date  on  which  an  Event  of  Default  under        Sections 9.01(g) or (h) with respect to any Loan Party or any Material Subsidiary shall occur.                              (iii)  “CAM Percentage” means, as to each Lender, a fraction, expressed as decimal, of        which (A) the numerator shall be the aggregate Dollar Equivalent of the sum of (I) the Specified        Obligations owed to such Lender and (II) such Lender’s participations in undrawn amounts of        Letters  of  Credit,  in  each  case  immediately  prior  to  the  CAM  Exchange  Date  and  (B)  the        denominator shall be the aggregate Dollar Equivalent of the sum of (I) the Specified Obligations        owed to all the Lenders and (II) the aggregate undrawn amount of all outstanding Letters of Credit,        in each case immediately prior to the CAM Exchange Date.                              (iv)   “Class” when used in reference to any Loan, Borrowing, Lender or Commitment,        (A) refers to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans,        the U.S. Term Loan, the Multicurrency Term Loan or an Incremental Term Loan, (B) refers to        whether  such  Commitment  is  a  Revolving  Commitment,  U.S.  Term  Loan  Commitment,        Multicurrency Term Loan Commitment or Incremental Term Loan Commitment, and (C) refers to         whether such Lender is a Lender of Revolving Loans, a Lender of a portion of the U.S. Term Loan,         a Lender of a portion of the Multicurrency Term Loan or a Lender of a portion of an Incremental         Term Loan, as applicable.                              (v)    “Exposure”  means,  with  respect  to  any  Lender,  the  sum  at  such  time,  without        duplication, of such Lender’s (A) Applicable Percentage of the Total Revolving Outstandings plus        (B) Applicable Percentage of the Outstanding Amount of U.S. Term Loan plus (C) Applicable        Percentage  of  the  Outstanding  Amount  of  the  Multicurrency  Term Loan  plus  (D)  Applicable        Percentage  of  the  Outstanding  Amount  of  any  Incremental  Term  Loan.   For  purposes  hereof,        Exposure shall be expressed in Dollars.                              (vi)   “Specified Obligations” means Obligations consisting of principal of and interest        on the Loans, reimbursement obligations in respect of Letters of Credit and fees.                                                125  CHAR1\1732710v2 

 

                                         ARTICLE X                                                                              ADMINISTRATIVE AGENT    10.01  Appointment and Authority.             Each of the Lenders and the L/C Issuer 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 X  are  solely  for  the  benefit  of  the  Administrative Agent, the Lenders and the L/C Issuer, and neither any 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.    10.02  Rights as a Lender.           The Person serving as the Administrative Agent hereunder shall have the same rights and powers  in  its  capacity  as  a  Lender  as  any  other  Lender  and  may  exercise  the  same  as  though  it  were  not  the  Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or  unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in  its  individual  capacity.   Such  Person  and  its  Affiliates  may  accept  deposits  from,  lend  money  to,  own  securities of, act as the financial advisor or in any other advisory capacity for and generally engage in any  kind of business with any Loan Party 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.    10.03  Exculpatory Provisions.           The Administrative Agent shall not have any duties or obligations except those expressly set forth  herein and in the other Loan Documents, and its duties hereunder shall be administrative in nature.  Without  limiting the generality of the foregoing, the Administrative Agent:                        (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; and                                              126  CHAR1\1732710v2 

 

                (c)    shall not, except as expressly set forth herein and in the other Loan Documents,        have any duty to disclose, and shall not be liable for the failure to disclose, any information relating        to any Loan Party or any of its Affiliates that is communicated to or obtained by the Person serving        as the Administrative Agent or any of its Affiliates in any capacity.                The Administrative Agent shall not be liable for any action taken or not taken by it (i) with the  consent or at the request of the 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 11.01 and 9.01) or (ii) in the absence of its own gross negligence or  willful misconduct as determined by a court of competent jurisdiction by final and nonappealable judgment.   The Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice  describing such Default is given in writing to the Administrative Agent by the Parent Borrower, a Lender  or the L/C Issuer.                  The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into  (i) any statement, warranty or representation made in or in connection with this Agreement or any other  Loan  Document,  (ii)  the  contents  of  any  certificate,  report  or other  document  delivered  hereunder  or  thereunder  or  in  connection  herewith  or  therewith,  (iii) the  performance  or  observance  of  any  of  the  covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any  Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan  Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth  in Article V or elsewhere herein, other than to confirm receipt of items expressly required to be delivered  to the Administrative Agent.    10.04  Reliance by Administrative Agent.             The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying  upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including  any  electronic  message,  Internet  or  intranet  website  posting  or  other  distribution)  believed  by  it  to  be  genuine and to have been signed, sent or otherwise authenticated by the proper Person.  The Administrative  Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been  made by the proper Person, and shall not incur any liability for relying thereon.  In determining compliance  with any condition hereunder to the making of a Loan, or the issuance of a Letter of Credit, that by its terms  must be fulfilled to the satisfaction of a Lender or the L/C Issuer, the Administrative Agent may presume  that such condition is satisfactory to such Lender or the L/C Issuer unless the Administrative Agent shall  have received notice to the contrary from such Lender or the L/C Issuer prior to the making of such Loan  or the issuance of such Letter of Credit.  The Administrative Agent may consult with legal counsel (who  may be counsel for the Loan Parties), independent accountants and other experts selected by it, and shall  not be liable for any action taken or not taken by it in accordance with the advice of any such counsel,  accountants or experts.    10.05  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  X  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 Administrative Agent.   The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents                                             127  CHAR1\1732710v2 

 

   except to the extent that a court of competent jurisdiction determines in a final and non appealable judgment  that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such  sub-agents.    10.06  Resignation of Administrative Agent.           (a)   The Administrative Agent may at any time give notice of its resignation to the Lenders, the  L/C Issuer and the Parent Borrower.  Upon receipt of any such notice of resignation, the Required Lenders  shall  have  the  right,  in  consultation  with  the  Parent  Borrower,  and,  at  all  times  other  than  during  the  existence of an Event of Default, with the Parent Borrower’s consent (such consent not to be unreasonably  withheld), to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate  of any such bank with an office in the United States.  If no such successor shall have been so appointed by  the Required Lenders and shall have accepted such appointment within thirty (30) days after the retiring  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 and the L/C Issuer, appoint a successor Administrative Agent meeting  the qualifications set forth above.  Whether or not a successor has been appointed, such resignation shall  become effective in accordance with such notice on the Resignation Effective Date.          (b)   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 Parent Borrower and such Person remove such Person as Administrative Agent and, in  consultation with the Parent Borrower, and, at all times other than during the existence of an Event of  Default, with the Parent Borrower’s consent (such consent not to be unreasonably withheld), appoint a  successor.  If  no  such  successor  shall  have  been  so  appointed  by  the  Required  Lenders  and  shall  have  accepted such appointment within thirty (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  or  the  L/C  Issuer  under  any  of  the  Loan  Documents, the retiring or removed 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 and the L/C Issuer 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 3.01(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 10.06).  The fees payable by any Borrower to a successor  Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between  such 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 X and Section 11.04  shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub-agents and                                             128  CHAR1\1732710v2 

 

   their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while  the retiring or removed Administrative Agent was acting as Administrative Agent.          (d)    Any resignation by Bank of America as Administrative Agent pursuant to this Section  10.06 shall also constitute its resignation as the L/C Issuer and the Swing Line Lender.  If Bank of America  resigns  as  the  L/C  Issuer,  it  shall  retain  all  the  rights,  powers,  privileges  and  duties  of  the  L/C  Issuer  hereunder with respect to all Letters of Credit outstanding as of the effective date of its resignation as the  L/C Issuer and all L/C Obligations with respect thereto, including the right to require the Lenders to make  Base Rate Loans or fund risk participations in Unreimbursed Amounts pursuant to Section 2.03(c).  If Bank  of America resigns as the Swing Line Lender, it shall retain all the rights of the Swing Line Lender provided  for hereunder with respect to Swing Line Loans made by it and outstanding as of the effective date of such  resignation, including the right to require the Lenders to make Base Rate Loans or fund risk participations  in  outstanding  Swing  Line  Loans  pursuant  to  Section  2.04(c).   Upon  the  appointment  by  the  Parent  Borrower of a successor L/C Issuer or Swing Line Lender hereunder (which successor shall in all cases be  a Lender other than a Defaulting Lender), (a) such successor shall succeed to and become vested with all  of the rights, powers, privileges and duties of the retiring L/C Issuer or Swing Line Lender, as applicable,  (b) the retiring L/C Issuer and Swing Line Lender shall be discharged from all of their respective duties and  obligations hereunder or under the other Loan Documents, and (c) the successor L/C Issuer shall issue  letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession  or make other arrangements satisfactory to Bank of America to effectively assume the obligations of Bank  of America with respect to such Letters of Credit.           10.07  Non-Reliance on Administrative Agent, Arrangers and Other Lenders.           Each Lender and the L/C Issuer expressly acknowledges that neither the Administrative Agent nor  any Arranger has made any representation or warranty to it, and that no act by the Administrative Agent or  any Arranger hereafter taken, including any consent to, and acceptance of any assignment or review of the  affairs  of  any  Loan  Party  or  any  Affiliate  thereof,  shall  be  deemed  to  constitute  any  representation  or  warranty by the Administrative Agent or any Arranger to any Lender or the L/C Issuer as to any matter,  including whether the Administrative Agent or any Arranger have disclosed material information in their  (or their Related Parties’) possession.  Each Lender and the L/C Issuer represents to the Administrative  Agent and each Arranger that it has, independently and without reliance upon the Administrative Agent,  any  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  Parent  Borrower  and  its  Subsidiaries,  and  all  applicable  bank  or  other  regulatory  Laws  relating  to  the  transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend  credit  to  the  Borrowers  hereunder.  Each  Lender  and  the  L/C  Issuer  also  acknowledges  that  it  will,  independently and without reliance upon the Administrative Agent, any 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 and the L/C Issuer represents and warrants that (i) the Loan Documents set forth  the terms of a commercial lending facility and (ii) it is engaged in making, acquiring or holding commercial  loans in the ordinary course and is entering into this Agreement as a Lender or the L/C Issuer for the purpose  of making, acquiring or holding commercial loans and providing other facilities set forth herein as may be  applicable to such Lender or the L/C Issuer, and not for the purpose of purchasing, acquiring or holding  any other type of financial instrument, and each Lender and the L/C Issuer agrees not to assert a claim in  contravention  of  the  foregoing.   Each  Lender  and  the  L/C  Issuer  represents  and  warrants  that  it  is                                             129  CHAR1\1732710v2 

 

   sophisticated with respect to decisions to make, acquire and/or hold commercial loans and to provide other  facilities set forth herein, as may be applicable to such Lender or the L/C Issuer, 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.    10.08  No Other Duties; Etc.           Anything herein to the contrary notwithstanding, none of the bookrunners, arrangers, syndication  agents,  documentation  agents  or  co-agents  shall  have  any  powers,  duties  or  responsibilities  under  this  Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative  Agent, a Lender or the L/C Issuer hereunder.    10.09  Administrative Agent May File Proofs of Claim.           In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization,  arrangement,  adjustment,  composition  or  other  judicial  proceeding  relative  to  any  Loan  Party,  the  Administrative Agent (irrespective of whether the principal of any Loan or L/C Obligation 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 any 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  Loans,  L/C  Obligations  and  all  other  Obligations  (other  than         obligations  under  Swap  Contracts  or  Treasury  Management  Agreements  to  which  the         Administrative Agent is not a party) that are owing and unpaid and to file such other documents as         may be necessary or advisable in order to have the claims of the Lenders, the L/C Issuer and the         Administrative  Agent  (including  any  claim  for  the  reasonable  compensation,  expenses,         disbursements and advances of the Lenders, the L/C Issuer and the Administrative Agent and their         respective  agents  and  counsel  and  all  other  amounts  due  the  Lenders,  the  L/C  Issuer  and  the         Administrative  Agent  under  Sections  2.03(i)  and  (j),  2.09  and  11.04)  allowed  in  such  judicial        proceeding; and                       (b)    to collect and receive any monies or other property payable or deliverable on any        such claims and to distribute the same;    and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such  judicial proceeding is hereby authorized by each of the Lenders and the L/C Issuer to make such payments  to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of  such payments directly to the Lenders and the L/C Issuer, to pay to the 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 2.09 and  11.04.           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  or  the  L/C  Issuer  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 in any such proceeding.                                                130  CHAR1\1732710v2 

 

   10.10  Collateral and Guaranty Matters.           The Lenders and the L/C Issuer irrevocably authorize the Administrative Agent, at its option and  in its discretion,                         (a)    to  release  any  Lien  on  any  Collateral  granted  to  or  held  by  the  Administrative         Agent under any Loan Document (i) upon termination of the Aggregate Revolving Commitments         and payment in full of all Obligations (other than (A) contingent indemnification obligations and         (B) Cash Management Obligations and obligations under or in respect of Swap Contracts (other         than with respect to amounts currently due thereunder for which the Administrative Agent has         received prior written notice)) and the expiration or termination of all Letters of Credit, (ii) that is         transferred or to be transferred as part of or in connection with any Asset Sale permitted hereunder         or  under  any  other  Loan  Document  or  any  Involuntary  Disposition,  or  (iii) as  approved  in         accordance with Section 11.01;                              (b)    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        Section 8.02(c);                               (c)    to release any Guarantor from its obligations under the Guaranty if such Person        ceases to be a Subsidiary as a result of a transaction permitted hereunder; and                              (d)    upon the occurrence of a Release of Collateral Event and a written request by the        Parent  Borrower  therefor,  to  release  all  Collateral;  provided, however,  that,  if  such  Release  of        Collateral Event ceases to be continuing and in effect at any time, the Required Lenders or the        Administrative  Agent  may  require  first  priority  security  interests  on  the  same  categories  of        Collateral that was previously released, such security interests to be created and perfected within        thirty (30) days of notice from the Required Lenders or the Administrative Agent to the Parent        Borrower.                       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 the Guaranty, pursuant to this Section  10.10.                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.    10.11  Secured Treasury Management Agreements and Swap Contracts.           No Qualifying Counterparty that obtains the benefit of Section 9.02, the Guaranty or any Collateral  by virtue of the provisions hereof or any Collateral Document shall have any right to notice of any action  or to consent to, direct or object to any action hereunder or under any other Loan Document or otherwise  in respect of the Collateral (including the release or impairment of any Collateral) (or to notice of or to  consent to any amendment, waiver or  modification of the provisions hereof or of the Guaranty or any  Collateral Document) other than in its capacity as a Lender and, in such case, only to the extent expressly  provided in the Loan Documents.  Notwithstanding any other provision of this Article X to the contrary,  the  Administrative  Agent  shall  not  be  required  to  verify  the  payment  of,  or  that  other  satisfactory                                             131  CHAR1\1732710v2 

 

   arrangements have been made with respect to, Obligations arising under Cash Management Agreements  and Swap Contracts except to the extent expressly provided herein and unless the Administrative Agent has  received  a  Secured  Party  Designation  Notice  of  such  Obligations,  together  with  such  supporting  documentation as the Administrative Agent may request, from the applicable Qualifying Counterparty.  The  Administrative Agent shall not be required to verify the payment of, or that other satisfactory arrangements  have been made with respect to, Obligations arising under Treasury Management Agreements or Swap  Contracts in the case of the termination of all Commitments and payment in full of all Obligations arising  under the Loan Documents (other than contingent indemnification obligations).           The Administrative Agent will not be deemed to have notice of any amounts being due and owing  under any Cash Management Agreements or Swap Contracts unless and to the extent the Administrative  Agent has received written notice thereof.                                          ARTICLE XI                                                                                  MISCELLANEOUS    11.01  Amendments, Etc.           No amendment or waiver of any provision of this Agreement or any other Loan Document, and no  consent to any departure by any Borrower or any other Loan Party therefrom, shall be effective unless in  writing signed by the Required Lenders and the applicable Borrower or the applicable Loan Party, as the  case may be, and acknowledged by the Administrative Agent, and each such waiver or consent shall be  effective only in the specific instance and for the specific purpose for which given; provided, further, that:                        (a)    no such amendment, waiver or consent shall:                              (i)   extend  or  increase  the  Commitment  of  a  Lender  (or  reinstate any               Commitment  terminated  pursuant  to  Section  9.01)  without  the  written  consent  of  such               Lender whose Commitment is being extended or increased (it being understood and agreed               that a waiver of any condition precedent set forth in Section 5.02 or of any Default or a               mandatory  reduction  in  Commitments  is  not  considered  an  extension  or  increase  in               Commitments of any Lender);                              (ii)   postpone any date fixed by this Agreement or any other Loan Document               for any payment of principal (excluding mandatory prepayments), interest, fees or other               amounts due to the Lenders (or any of them) or any scheduled or mandatory reduction of               the  Commitments  hereunder  or  under  any  other  Loan  Document  without  the  written               consent of each Lender entitled to receive such payment or whose Commitments are to be               reduced;                              (iii)  reduce the principal of, or the rate of interest specified herein on, any Loan               or L/C Borrowing, or (subject to clause (i) of the final proviso to this Section 11.01) any               fees or other amounts payable hereunder or under any other Loan Document without the               written consent of each Lender entitled to receive such payment of principal, interest, fees               or other amounts; provided, however, that, only the consent of the Required Lenders shall               be necessary to (i) amend the definition of “Default Rate” or to waive any obligation of               any Borrower to pay interest or Letter of Credit Fees at the Default Rate or (ii) amend any               financial  covenant  set  forth  in  Section  8.10  or  the  definition of  Consolidated  Total               Leverage Ratio (or, in each case, any defined term used therein or in connection therewith)                                             132  CHAR1\1732710v2 

 

                even if the effect of such amendment would be to reduce the rate of interest on any Loan               or L/C Borrowing or to reduce any fee payable hereunder;                              (iv)   change Section 2.13 or Section 9.02 in a manner that would alter the pro               rata  sharing  of  payments  required  thereby  without  the  written  consent  of  each  Lender               directly affected thereby;                              (v)    amend  Section 1.05,  Section  1.08(a)  or  the  definition  of  “Alternative               Currency”, “LIBOR Quoted Currency” or “Non-LIBOR Quoted Currency” without the               written consent of each Lender directly affected thereby;                              (vi)   change any provision of this Section 11.01(a), the definitions of “Required               Lenders” or “Required Revolving Lenders” or any other provision of any Loan Document               specifying the number or percentage of Lenders required to amend, waive or otherwise               modify any rights or obligations under any Loan Document or make any determination or               grant any consent under any Loan Document, in each case, without the written consent of               each Lender directly affected thereby;                                (vii)  except in connection with an Asset Sale permitted under Section 8.05, release               all or substantially all of the Collateral without the written consent of each Lender or as               provided in Section 10.10; or                                     (viii)  release  the  Parent  Borrower  or,  except  in  connection  with  a  merger  or               consolidation permitted under Section 8.05 or an Asset Sale permitted under Section 8.05, all               or substantially all of the Guarantors without the written consent of each Lender, except to               the extent the release of any Guarantor is permitted pursuant to Section 10.10 (in which               case such release may be made by the Administrative Agent acting alone).                 (b)    unless also signed by the L/C Issuer, no amendment, waiver or consent shall affect         the rights or duties of the L/C Issuer under this Agreement or any Issuer Document relating to any         Letter of Credit issued or to be issued by it;                         (c)    unless also signed by the Swing Line Lender, no amendment, waiver or consent         shall affect the rights or duties of the Swing Line Lender under this Agreement;                         (d)    unless also signed by the Administrative Agent, no amendment, waiver or consent         shall affect the rights or duties of the Administrative Agent under this Agreement or any other Loan         Document;                               (e)    unless also signed by the Required Revolving Lenders, no amendment, waiver or         consent shall (i) amend or waive any mandatory prepayment on Revolving Loans under Section        2.05(b)(i) or the manner of application thereof to the Revolving Loans or (ii) amend or change (A)        the definition of “Required Revolving Lenders” or (B) any provision of this Section 11.01(e); and                              (f)    unless  also  signed  by  Lenders  (other  than  Defaulting  Lenders)  holding  in  the        aggregate at least a majority of the Outstanding Amount of the Term Loans and Incremental Term        Loans,  collectively,  no  such  amendment,  waiver  or  consent  shall  (i)  amend,  change,  waive,        discharge or terminate Section 2.05(b)(v) so as to alter the manner of application of proceeds of        any mandatory prepayment required by Section 2.05(b)(ii) or (iii) hereof (other than to allow the        proceeds of such mandatory prepayments to be applied ratably with other term loans under this                                             133  CHAR1\1732710v2 

 

         Agreement) or (ii) amend, change, waive, discharge or terminate this Section 11.01(f) (other than        to provide other Lenders holding Term Loans with proportional rights under this Section 11.01(f));                 provided, however, that notwithstanding anything to the contrary herein, (i) the Fee Letter may be amended,  or rights or privileges thereunder waived, in a writing executed only by the parties thereto, (ii) 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), (x) the  Commitment  of  any  Defaulting  Lender  may  not be  increased  or  extended  without  the  consent  of  such  Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected  Lender  that  by  its  terms  affects  any  Defaulting  Lender  disproportionately  adversely  relative  to  other  affected Lenders shall require the consent of such Defaulting Lender, (iii) each Lender is entitled to vote as  such  Lender  sees  fit  on  any  bankruptcy  reorganization  plan  that  affects  the  Loans,  and  each  Lender  acknowledges that the provisions of Section 1126(c) of the Bankruptcy Code of the United States supersedes  the unanimous consent provisions set forth herein and (iv) the Required Lenders shall determine whether or  not to allow a Loan Party to use cash collateral in the context of a bankruptcy or insolvency proceeding and  such determination shall be binding on all of the Lenders.    Notwithstanding any provision herein to the contrary, this Agreement may be amended with the written  consent of the Administrative Agent, the L/C Issuer, the Borrowers and the Lenders obligated to make  Credit Extensions in Alternative Currencies to amend the definition of “Alternative Currency”, “LIBOR  Quoted  Currency”,  “Non-LIBOR  Quoted  Currency”  or  “Eurocurrency Rate”  solely  to  add  additional  currency  options  and  the applicable  interest  rate  with  respect thereto,  in  each  case  solely  to  the  extent  permitted pursuant to Section 1.08.    Notwithstanding any provision herein to the contrary the Administrative Agent and the Parent Borrower  may  amend,  modify  or  supplement  this  Agreement  or  any  other  Loan  Document  to  cure  or  correct  administrative  errors  or  omissions,  any  ambiguity,  omission,  defect  or  inconsistency  or  to  effect  administrative changes, and such amendment shall become effective without any further consent of any  other party to such Loan Document so long as (i) such amendment, modification or supplement does not  adversely affect the rights of any Lender or other holder of Obligations in any material respect and (ii) the  Lenders  shall  have  received  at  least  five  (5)  Business  Days’  prior  written  notice  thereof  and  the  Administrative Agent shall not have received, within five (5) Business Days of the date of such notice to  the Lenders, a written notice from the Required Lenders stating that the Required Lenders object to such  amendment.    Notwithstanding any provision herein to the contrary, upon the execution and delivery of all documentation  required  to  be  delivered  pursuant  to  Section  2.01(d)  in  connection  with  an  increase  in  the  Aggregate  Revolving Commitments or the institution of an Incremental Term Loan,  each of the parties hereto hereby  agrees that, on the date of such increase in the Aggregate Revolving Commitments or the institution of such  Incremental Term Loan, this Agreement shall be amended to the extent (but only to the extent) necessary  to  reflect  the  existence  and  terms  of  such  increase  in  the  Aggregate  Revolving  Commitments  or  such  Incremental Term Loan evidenced thereby. Any such deemed amendment may be effected by the written  consent (not to be unreasonably withheld) of the Administrative Agent and the Parent Borrower, and then  furnished to the other parties hereto.    11.02  Notices and Other Communications; Facsimile Copies.           (a)   Notices  Generally.   Except  in  the  case  of  notices  and  other  communications  expressly  permitted to be given by telephone (and except as provided in Section 11.02(b)), all notices and other  communications provided for herein shall be in writing and shall be delivered by hand or overnight courier                                             134  CHAR1\1732710v2 

 

   service, mailed by certified or registered mail or sent by telecopier 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 Parent Borrower or any other Loan Party, the Administrative Agent, the        L/C Issuer or the Swing Line Lender, to the address, telecopier number, electronic mail address or        telephone number specified for such Person on Schedule 11.02; and                        (ii)   if to any other Lender, to the address, telecopier number, electronic mail address        or telephone number specified in its Administrative Questionnaire.                Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall  be deemed to have been given when received; notices sent by telecopier shall be deemed to have been given  when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have  been given at the opening of business on the next business day for the recipient).  Notices delivered through  electronic communications to the extent provided in Section 11.02(b), shall be effective as provided Section  11.02(b).                (b)    Electronic Communications.  Notices and other communications to the Lenders and the  L/C Issuer hereunder may be delivered or furnished by electronic communication (including e-mail, FPML  messaging and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent;  provided, that, the foregoing shall not apply to notices to any Lender or the L/C Issuer pursuant to Article  II if such Lender or the L/C Issuer, as applicable, has notified the Administrative Agent that it is incapable  of receiving notices under Article II by electronic communication.  The Administrative Agent or the Parent  Borrower  may,  in  its  discretion,  agree  to  accept  notices  and  other  communications  to  it  hereunder  by  electronic  communications  pursuant  to  procedures  approved  by  it;  provided,  that,  approval  of  such  procedures may be limited to particular notices or communications.                  Unless the 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); provided, that, if such notice or other communication is not sent during the  normal business hours of the recipient, such notice or communication shall be deemed to have been sent at  the opening of business on the next business day for the recipient, and (ii) notices or communications posted  to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient  at  its  e-mail  address  as  described  in  the  foregoing  clause (i) of  notification  that  such  notice  or  communication is available and identifying the website address therefor.                  (c)   The Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.”   THE  AGENT  PARTIES  (AS  DEFINED  BELOW)  DO  NOT  WARRANT  THE  ACCURACY  OR  COMPLETENESS OF THE BORROWER 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 “Agent Parties”) have any liability to  any Borrower, any Lender, the L/C Issuer or any other Person for losses, claims, damages, liabilities or  expenses  of  any  kind  (whether  in  tort,  contract  or  otherwise)  arising  out  of  such  Borrower’s  or  the  Administrative  Agent’s  transmission  of  Borrower  Materials  or  notices  through  the  Platform,  any  other                                             135  CHAR1\1732710v2 

 

   electronic platform or electronic messaging service through the Internet, except to the extent that such  losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a  final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such  Agent Party; provided, however, that, in no event shall any Agent Party have any liability to any Borrower,  any Lender, the L/C Issuer or any other Person for indirect, special, incidental, consequential or punitive  damages (as opposed to direct or actual damages).                  (d)   Change of Address, Etc.  Each of the Parent Borrower, the Administrative Agent, the L/C  Issuer and the Swing Line Lender may change its address, telecopier or telephone number for notices and  other communications hereunder by notice to the other parties hereto.  Each other Lender may change its  address, telecopier or telephone number for notices and other communications hereunder by notice to the  Parent Borrower, the Administrative Agent, the L/C Issuer and the Swing Line Lender.  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, telecopier number and electronic  mail address to which notices and other communications may be sent and (ii) accurate wire instructions for  such Lender.  Furthermore, each Public Lender agrees to cause at least one individual at or on behalf of  such Public Lender to at all times have selected the “Private Side Information” or similar designation on  the content declaration screen of the Platform in order to enable such Public Lender or its delegate, in  accordance with such Public Lender’s compliance procedures and applicable Law, including United States  federal and state securities Laws, to make reference to Borrower Materials that are not made available  through the “Public Side Information” portion of the Platform and that may contain material non-public  information with respect to any Borrower or its securities for purposes of United States federal or state  securities Laws.                   (e)   Reliance by Administrative Agent, L/C Issuer and Lenders.  The Administrative Agent, the  L/C  Issuer  and  the  Lenders  shall  be  entitled  to  rely  and  act  upon  any  notices  (including  telephonic  or  electronic notices, Loan Notices, Letter of Credit Applications, Notices of Loan Prepayment and Swing  Line Loan Notices) purportedly given by or on behalf of any Loan Party 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, the L/C Issuer, each  Lender and the Related Parties of each of them from all losses, costs, expenses and liabilities resulting from  the reliance by such Person on each notice purportedly given by or on behalf of a Loan Party.  All telephonic  notices to and other telephonic communications with the Administrative Agent may be recorded by the  Administrative Agent, and each of the parties hereto hereby consents to such recording.    11.03  No Waiver; Cumulative Remedies.           No failure by any Lender, the L/C Issuer or the Administrative Agent to exercise, and no delay by  any such Person in exercising, any right, remedy, power or privilege hereunder or 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  9.01  and  Section  9.02  for  the  benefit  of  all  the  Lenders  and  the  L/C  Issuer;                                             136  CHAR1\1732710v2 

 

   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) the L/C Issuer or the Swing Line Lender from  exercising the rights and remedies that inure to its benefit (solely in its capacity as the L/C Issuer or Swing  Line Lender, as the case may be) hereunder and under the other Loan Documents, (c) any Lender from  exercising setoff rights in accordance with Section 11.08 (subject to the terms of Section 2.13), or (d) any  Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the pendency  of a proceeding relative to any 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 9.01 and Section 9.02 and (ii) in addition to the matters set forth in clauses (b), (c) and (d) of the  preceding proviso and subject to Section 2.13, 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.   11.04  Expenses; Indemnity; and Damage Waiver.           (a)   Costs and Expenses.  The Loan Parties shall pay (i) all reasonable out-of-pocket expenses  incurred by the Administrative Agent and its Affiliates (which, in the case of counsel, shall be limited to  the reasonable fees, charges and disbursements of one primary counsel for the Administrative Agent and  its Affiliates, taken as a whole, and of one special and local counsel to the Administrative Agent and its  Affiliates,  taken  as  a  whole,  in  each  applicable  jurisdiction  retained  by  the  Administrative  Agent),  in  connection with the syndication of the credit facilities provided for herein, the preparation, negotiation,  execution,  delivery  and  administration  of  this  Agreement  and  the  other  Loan  Documents  or  any  amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions  contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses incurred  by the L/C Issuer in connection with the issuance, amendment, renewal or extension of any Letter of Credit  or  any  demand  for  payment  thereunder  and  (iii) all  reasonable  out-of-pocket  expenses  incurred  by  the  Administrative Agent, any Lender or the L/C Issuer (which, in the case of counsel, shall be limited to the  reasonable  fees,  charges  and  disbursements  of  one  primary  counsel  for  the  Administrative  Agent,  the  Lenders or the L/C Issuer, taken as a whole, and of one special and local counsel to the Administrative  Agent,  any  Lender  or  the L/C  Issuer,  taken  as  a  whole,  in  each applicable  jurisdiction  retained  by  the  Administrative Agent and, in the event of any actual or potential conflict of interest, one additional counsel  for each party subject to a conflict) (A) in connection with this Agreement and the other Loan Documents,  including its rights under this Section 11.04, or (B) in connection with the Loans made or Letters of Credit  issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or  negotiations in respect of such Loans or Letters of Credit.                  (b)   Indemnification by the Loan Parties.  The Loan Parties shall indemnify the Administrative  Agent (and any sub-agent thereof), each Lender and the L/C Issuer, 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 (which, in the case of  counsel, shall be limited to the reasonable out-of-pocket fees, charges and disbursements of one primary  counsel for the Indemnitees, taken as a whole, and of one special and local counsel to the Indemnitees,  taken as a whole, in each applicable jurisdiction retained by the Indemnitees and, in the event of any actual  or potential conflict of interest, one additional counsel for each party subject to a conflict), as a result of  (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument  contemplated  hereby  or  thereby,  the  performance  by  the  parties hereto  of  their  respective  obligations  hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, or, in the  case of the 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  3.01), (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any                                             137  CHAR1\1732710v2 

 

   refusal  by  the  L/C  Issuer  to  honor  a  demand  for  payment  under  a  Letter  of  Credit  issued  by  it  if  the  documents presented in connection with such demand do not strictly comply with the terms of such Letter  of Credit), (iii) any actual or alleged presence or Release of Hazardous Materials on or from any property  owned or operated by a Loan Party or any of its Subsidiaries, or any Environmental Liability related in any  way  to  a  Loan  Party  or  any  of  its  Subsidiaries,  or  (iv) any  actual  or  prospective  claim,  litigation,  investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other  theory, whether brought by a third party or by the Parent Borrower or any other Loan Party, and regardless  of whether any Indemnitee is a party thereto, 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 or willful misconduct of such Indemnitee or any of its Related Parties  or  from  the  material  breach  by  such  Indemnitee  or  any  of  its  Related  Parties  of  any  Loan  Document,  (y) result from a claim brought by the Parent Borrower or any other Loan Party against an Indemnitee for  breach in bad faith of such Indemnitee’s obligations hereunder or under any other Loan Document, if the  Parent 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)  arises  solely  out  of  a  dispute  among  Indemnitees and/or their Related Parties (and not involving the Administrative Agent) and not resulting  from an act or omission by the Parent Borrower or any of its Affiliates.  Without limiting the provisions of  Section  3.01(c),  this  Section  11.04(b)  shall  not  apply  with  respect  to  Taxes  other  than  any  Taxes  that  represent losses, claims, damages, etc. arising from any non-Tax claim.                (c)    Reimbursement by Lenders.  To the extent that the Loan Parties for any reason fail to  indefeasibly pay any amount required under Sections 11.04(a) or (b) to be paid by it to the Administrative  Agent (or any sub-agent thereof), the L/C Issuer, the Swing Line Lender or any Related Party of any of the  foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), the  L/C Issuer, the Swing Line Lender or such Related Party, as the case may be, such Lender’s pro rata share  (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought based  on each Lender’s share of the unfunded Commitments and the aggregate Outstanding Amount of all Loans  and L/C Obligations 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) of such unpaid amount; provided, further, that, the unreimbursed expense or indemnified  loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the  Administrative Agent (or any such sub-agent), the L/C Issuer or the Swing Line Lender 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), the L/C Issuer or the Swing Line Lender in connection with such capacity.  The obligations of  the Lenders under this Section 11.04(c) are subject to the provisions of Section 2.12(d).         (d)    Waiver of Consequential Damages, Etc.  To the fullest extent permitted by applicable Law,  none of the Administrative Agent, L/C Issuer, any Lender and any Loan Party (or any of their Related  Parties) shall assert, and each of the Administrative Agent, L/C Issuer, Lenders and Loan Parties hereby  waives, any claim against any other such party, 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 Loan or Letter of Credit or the use of the proceeds  thereof, in each case other than any claim for such damages incurred or paid by the Administrative Agent,  any Lender or the L/C Issuer to any third party or any Loan Party.  No Indemnitee referred to in Section  11.04(b) shall be liable for any damages arising from the use by unintended recipients of any information  or  other  materials  distributed  by  it  through  telecommunications,  electronic  or  other  information                                             138  CHAR1\1732710v2 

 

   transmission systems in connection with this Agreement or the other Loan Documents or the transactions  contemplated hereby or thereby, except to the extent that damages are determined by a court of competent  jurisdiction by a final and nonappealable judgment to have resulted from the gross negligence or willful  misconduct of such Indemnitee or its Related Party.                (e)    Payments.  All amounts due under this Section 11.04 shall be payable not later than ten  (10) Business Days after demand therefor.                  (f)   Survival.  The agreements in this Section 11.04(b) and the indemnity provisions of Section  11.02(e) shall survive the resignation of the Administrative Agent, the Swing Line Lender and the L/C  Issuer, the replacement of any Lender, the termination of the Commitments and the repayment, satisfaction  or discharge of all the other Obligations.    11.05  Payments Set Aside.           To the extent that any payment by or on behalf of any Loan Party is made to the Administrative  Agent, the L/C Issuer or any Lender, or the Administrative Agent, the L/C Issuer 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, the L/C Issuer 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 of the Lenders and the L/C Issuer 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 and the L/C Issuer under clause (b) of the preceding sentence shall  survive the payment in full of the Obligations and the termination of this Agreement.    11.06  Successors and Assigns.           (a)   Successors and Assigns Generally.  The provisions of this Agreement and the other Loan  Documents  shall  be  binding  upon  and  inure  to  the  benefit  of  the  parties  hereto  and  thereto  and  their  respective successors and assigns permitted hereby, except that neither any Borrower nor any Guarantor  may assign or otherwise transfer any of its rights or obligations hereunder or thereunder 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 11.06(b), (ii) by way of participation in accordance with the provisions of Section 11.06(d) or  (iii) by way of pledge or assignment of a security interest subject to the restrictions of Section 11.06(f) (and  any other attempted assignment or transfer by any party hereto shall be null and void).  Nothing in this  Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties  hereto,  their  respective  successors  and  assigns  permitted  hereby,  Participants  to  the  extent  provided  in  Section  11.06(d)  and,  to  the  extent  expressly  contemplated  hereby,  the  Related  Parties  of  each  of  the  Administrative Agent, the L/C Issuer and the Lenders) any legal or equitable right, remedy or claim under  or by reason of this Agreement.  The Administrative Agent and the relevant transferring Lender should seek  confirmation from Dutch counsel that the transfer will not contravene Section 3:5 of the Dutch Financial  Supervision Act (Wet op het financieel toezicht) if the value of the rights acquired by the new Lender is less  than €100,000 or, if the competent authority has published its interpretation of the term ‘public’ as referred  to in article 4.1.(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26  June 2013 on prudential requirements for credit institutions and investment firms, such other minimum                                             139  CHAR1\1732710v2 

 

   amount  as  may  be  required  for  the  new  Lender  not  to  be  considered part of the public under such  interpretation.          (b)    Assignments by Lenders.  Any Lender may at any time assign to one or more assignees all  or a portion of its rights and obligations under this Agreement and the other Loan Documents (including all  or  a  portion  of  its  Commitment  and  the  Loans  (including  for  purposes  of  this  Section  11.06(b),  participations in L/C Obligations and Swing Line Loans) at the time owing to it); provided, that, any such  assignment shall be subject to the following conditions:                 (i)    Minimum Amounts; Proportionate Amounts.                              (A)    in  the  case  of  an  assignment  of  the  entire  remaining  amount of the               assigning Lender’s Commitment and the Loans at the time owing to it or contemporaneous               assignments to related Approved Funds that equal at least the amount specified in Section               11.06(b)(i)(B) 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 Section 11.06(b)(i)(A), the aggregate amount               of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if               the Commitment is not then in effect, the principal outstanding balance of the 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 “Trade Date” is specified in the Assignment and Assumption,               as of the Trade Date, shall not be less than $5,000,000 unless each of the Administrative               Agent  and,  so  long  as  no  Event  of  Default  has  occurred  and  is  continuing,  the  Parent               Borrower  otherwise  consents  (each  such  consent  not  to  be  unreasonably  withheld  or               delayed);                        (C)    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 Loans or the Commitment assigned, except that this clause (ii) shall not (A) apply to               the Swing Line Lender’s rights and obligations in respect of Swing Line Loans or (B)               prohibit any Lender from assigning all or a portion of its rights and obligations among the               revolving credit facility provided hereunder and any separate revolving credit or term loan               facilities provided pursuant to the last paragraph of Section 11.01 on a non-pro rata basis;                 (ii)   Required Consents.  No consent shall be required for any assignment except to the               extent required by Section 11.06(b)(i)(B) and, in addition:                                     (A)   the consent of the Parent Borrower (such consent not to be unreasonably               withheld,  conditioned  or  delayed)  shall  be  required  unless  (1) an  Event  of  Default  has               occurred and is continuing at the time of such assignment or (2) such assignment is to a               Lender, an Affiliate of a Lender or an Approved Fund; provided, that, the Parent Borrower               shall be deemed to have consented to any such assignment unless it shall object thereto by               written notice to the Administrative Agent within seven (7) Business Days after having               received notice thereof;                       (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 Incremental Term Loan Commitment or Revolving Commitment if               such assignment is to a Person that is not a Lender with a Commitment in respect of the                                             140  CHAR1\1732710v2 

 

                applicable facility, an Affiliate of such Lender or an Approved Fund with respect to such               Lender or (ii) any Term Loan or any Incremental  Term Loan to a Person that is not a               Lender, an Affiliate of a Lender or an Approved Fund;                         (C)    the  consent  of  the  L/C  Issuer  (such  consent  not  to  be  unreasonably               withheld, conditioned or delayed) shall be required for any assignment that increases the               obligation of the assignee to participate in exposure under one or more Letters of Credit               (whether or not then outstanding); and                                     (D)    the consent of the Swing Line Lender (such consent not to unreasonably               withheld, conditioned or delayed) shall be required for any assignment in respect of the               Revolving Commitment if such assignment is to a Person that is not a Lender, an Affiliate               of such Lender or an Approved Fund with respect to such Lender.                   (iii)   Assignment and Assumption.  The parties to each assignment shall execute and        deliver to the Administrative Agent an Assignment and Assumption, together with a processing        and recordation fee in the amount of $3,500 (which shall be paid by a person other than the Parent        Borrower or any of its Subsidiaries); provided, however, that, the Administrative Agent may, in its        sole discretion, elect to wave 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.                         (iv)   No Assignment to Certain Persons.  No such assignment shall be made (A) to the        Parent Borrower or any of the Parent Borrower’s Affiliates or Subsidiaries, (B) to any Defaulting        Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would        constitute any of the foregoing Persons described in this clause (B), or (C) to a natural Person.                         (v)    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 subparticipations, or other compensating actions, including funding, with the        consent of the Parent Borrower and the Administrative Agent, the applicable pro rata share of 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, the L/C Issuer or any        Lender hereunder (and interest accrued thereon) and (y) acquire (and fund as appropriate) its full        pro  rata  share  of  all  Loans  and participations  in  Letters  of  Credit  and  Swing  Line  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 paragraph, then the assignee        of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until        such compliance occurs.    Subject to acceptance and recording thereof by the Administrative Agent pursuant to Section 11.06(c), 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                                             141  CHAR1\1732710v2 

 

   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 3.01, 3.04, 3.05 and 11.04 with respect  to facts and circumstances occurring prior to the effective date of such assignment; provided, that, except  to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will  constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a  Defaulting Lender.  Upon request, each Borrower (at its expense) shall execute and deliver a Note to the  assignee Lender.  Any assignment or transfer by a Lender of rights or obligations under this Agreement  that does not comply with this Section 11.06(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 Section 11.06(d).           (c)   Register.   The  Administrative  Agent,  acting  solely  for  this  purpose  as  an  agent  of  the  Borrowers (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 Loans and L/C Obligations owing to, each Lender  pursuant  to  the  terms  hereof  from  time  to  time  (the  “Register”).   The  entries  in  the  Register  shall  be  conclusive absent manifest error, and the Borrowers, 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 each 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, any  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 a natural  Person,  a  Defaulting  Lender  or  the  Parent  Borrower  or  any  of  the  Parent  Borrower’s  Affiliates  or  Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this  Agreement  (including  all  or  a  portion  of  its  Commitment  and/or the  Loans  (including  such  Lender’s  participations in L/C Obligations and/or Swing Line 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) each  Borrower,  the  Administrative Agent, the other Lenders and the L/C Issuer 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 11.04(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 11.01 that affects such Participant.   Each Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05  to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to Section  11.06(b) (it being understood that the documentation required under Section 3.01(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 Section 11.06(b); provided, that, such Participant (A) agrees to be subject to the  provisions of Sections 3.06 and 11.13 as if it were an assignee under Section 11.06(b) and (B) shall not be  entitled to receive any greater payment under Sections 3.01 or 3.04, 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 any  Borrower’s request and expense, to use reasonable efforts to cooperate with such Borrower to effectuate                                             142  CHAR1\1732710v2 

 

   the  provisions  of  Section  3.06  with  respect  to  any  Participant.   To  the  extent  permitted  by  Law,  each  Participant also shall be entitled to the benefits of Section 11.08 as though it were a Lender; provided, that,  such Participant agrees to be subject to Section 2.13 as though it were a Lender.  Each Lender that sells a  participation shall, acting solely for this purpose as an agent of the Borrowers, maintain a register on which  it enters the name and address of each Participant and the principal amounts (and stated interest) of each  Participant’s  interest  in  the  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, letters of credit or its other obligations under any Loan Document) to  any Person except to the extent that such disclosure is necessary to establish that such commitment, loan,  letter  of  credit  or  other  obligation  is  in  registered  form  under  Section  5f.103-1(c)  of  the  United  States  Treasury Regulations.  The entries in the 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)   Limitation on Participant Rights.  A Participant shall not be entitled to receive any greater  payment under Section 3.01 or 3.04 than the applicable Lender would have been entitled to receive with  respect to the participation sold to such Participant, unless the sale of the participation to such Participant  is made with the Parent Borrower’s prior written consent.  A Participant that would be a Foreign Lender if  it were a Lender shall not be entitled to the benefits of Section 3.01 unless the Parent Borrower is notified  of the participation sold to such Participant and such Participant agrees, for the benefit of each Borrower,  to comply with Section 3.01(e) as though it were a Lender.           (f)   Certain Pledges.  Any Lender may at any time pledge or assign a security interest in all or  any portion of its rights under this Agreement (including under its Note, if any) to secure obligations of  such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided,  that,  no  such  pledge  or  assignment  shall  release  such  Lender  from  any  of  its  obligations  hereunder  or  substitute any such pledgee or assignee for such Lender as a party hereto.           (g)   Resignation  as  L/C  Issuer  or  Swing  Line  Lender  after  Assignment.   Notwithstanding  anything to the contrary contained herein, if at any time Bank of America assigns all of its Commitment  and Loans pursuant to Section 11.06(b), Bank of America may, (i) upon thirty (30) days’ notice to the  Parent Borrower and the Lenders, resign as L/C Issuer and/or (ii) upon thirty (30) days’ notice to the Parent  Borrower, resign as Swing Line Lender.  In the event of any such resignation as L/C Issuer or Swing Line  Lender, the Parent Borrower shall be entitled to appoint from among the Lenders a successor L/C Issuer or  Swing Line Lender hereunder; provided, however, that, no failure by the Parent Borrower to appoint any  such successor shall affect the resignation of Bank of America as L/C Issuer or Swing Line Lender, as the  case may be.  If Bank of America resigns as the L/C Issuer, it shall retain all the rights, powers, privileges  and duties of the L/C Issuer hereunder with respect to all Letters of Credit outstanding as of the effective  date of its resignation the L/C Issuer and all L/C Obligations with respect thereto (including the right to  require the Lenders to make Base Rate Loans or fund risk participations in Unreimbursed Amounts pursuant  to Section 2.03(c)).  If Bank of America resigns as Swing Line Lender, it shall retain all the rights of the  Swing Line Lender provided for hereunder with respect to Swing Line Loans made by it and outstanding  as of the effective date of such resignation, including the right to require the Lenders to make Base Rate  Loans or fund risk participations in outstanding Swing Line Loans pursuant to Section 2.04(c).  Upon the  appointment of a successor L/C Issuer and/or Swing Line Lender, (1) such successor shall succeed to and  become vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer or Swing Line  Lender, as the case may be and (2) the successor L/C Issuer shall issue letters of credit in substitution for  the  Letters  of  Credit,  if  any,  outstanding  at  the  time  of  such succession  or  make  other  arrangements                                             143  CHAR1\1732710v2 

 

   satisfactory to Bank of America to effectively assume the obligations of Bank of America with respect to  such Letters of Credit.    11.07  Treatment of Certain Information; Confidentiality.           Each  of  the  Administrative  Agent,  the  Lenders  and  the  L/C  Issuer  agrees  to  maintain  the  confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its  Affiliates  and  to  its  and  its  Affiliates’  respective  partners, directors,  officers,  employees,  accountants,  attorneys, agents, advisors and representatives and to any direct or indirect contractual counterparty (or  such  contractual  counterparty’s  professional  advisor)  under  any  Swap  Contract  relating  to  Loans  outstanding under this Agreement (it being understood that the Persons to whom such disclosure is made  will be informed of the confidential nature of such Information and instructed to keep such Information  confidential), (b) to the extent requested by any regulatory authority purporting to have jurisdiction over it  (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 (in  which case the Administrative Agent, such Lender or the L/C Issuer, as applicable, shall promptly notify  you of such disclosure to the extent permitted by applicable Law or judicial order, other than in connection  with audits and reviews by regulatory and self-regulatory authorities), (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 11.07, to (i) any assignee of or Participant in, or any prospective assignee of or Participant  in, any of its rights or obligations under this Agreement or (ii) any actual or prospective party (or its Related  Parties) to any swap, derivative or other transaction under which payments are to be made by reference to  any Borrower and its obligations, this Agreement or payments hereunder, (g) on a confidential basis to (i)  any rating agency in connection with rating the Parent Borrower or its Subsidiaries or the credit facilities  provided hereunder or (ii) the CUSIP Service Bureau or any similar agency in connection with the issuance  and monitoring of CUSIP numbers or other market identifiers with respect to the credit facilities provided  hereunder, (h) with the consent of the Parent Borrower or (i) to the extent such Information (x) becomes  publicly available other than as a result of a breach of this Section 11.07 or (y) becomes available to the  Administrative Agent, any Lender, the L/C Issuer or any of their respective Affiliates on a nonconfidential  basis from a source other than the Parent Borrower or its Subsidiaries who did not acquire such Information  as a result of a breach of this Section 11.07.                For purposes of this Section 11.07, “Information” means all information received from or on behalf  of a Loan Party or any Subsidiary relating to the Loan Parties or any Subsidiary or any of their respective  businesses, other than any such information that is (x) available to the Administrative Agent, any Lender  or the L/C Issuer on a nonconfidential basis prior to disclosure by such Loan Party or any Subsidiary or (y)  is clearly marked as being public or nonconfidential.  Any Person required to maintain the confidentiality  of Information as provided in this Section 11.07 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, the Lenders and the L/C Issuer  acknowledges  that  (a)  the  Information may include material non-public information concerning the Parent 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.                  The  Administrative  Agent  and  the Lenders  may  disclose  the  existence  of  this  Agreement  and  information about this Agreement to market data collectors, similar service providers to the lending industry                                             144  CHAR1\1732710v2 

 

   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.    11.08  Set-off.           If an Event of Default shall have occurred and be continuing, each Lender, the L/C Issuer and each  of their respective Affiliates is hereby authorized at any time and from time to time to the fullest extent  permitted by applicable Law, to set off and apply any and all deposits (general or special, time or demand,  provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at  any time owing by such Lender, the L/C Issuer or any such Affiliate to or for the credit or the account of  the Parent Borrower or any other Loan Party against any and all of the obligations of the Parent Borrower  or such Loan Party now or hereafter existing under this Agreement or any other Loan Document to such  Lender or the L/C Issuer or their respective Affiliates, irrespective of whether or not such Lender, the L/C  Issuer or Affiliate shall have made any demand under this Agreement or any other Loan Document and  although such obligations of the Parent Borrower or such Loan Party may be contingent or unmatured or  are owed to a branch, office or Affiliate of such Lender or the L/C Issuer 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, the L/C Issuer 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, the L/C Issuer and their respective Affiliates under this Section 11.08  are in addition to other rights and remedies (including other rights of setoff) that such Lender, the L/C Issuer  or their respective Affiliates may have.  Each of the Lenders and the L/C Issuer agrees to notify the Parent  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.           11.09  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  Loans  or,  if  it  exceeds  such  unpaid  principal,  refunded  to  the  Parent  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) 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 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 5.01,  this Agreement shall become effective when it shall have been executed by the Administrative Agent and                                             145  CHAR1\1732710v2 

 

   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  fax  transmission  or  other  electronic  mail  transmission  (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 any Credit Extension, and  shall continue in full force and effect as long as any Loan or any other Obligation hereunder shall remain  unpaid or unsatisfied or any Letter of Credit shall remain outstanding.    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, the L/C Issuer or the Swing Line Lender, as applicable, then such provisions shall  be deemed to be in effect only to the extent not so limited.    11.13  Replacement of Lenders.                 If the Parent Borrower is entitled to replace a Lender pursuant to the provisions of Section 3.06, or  if any Lender is a Defaulting Lender or a Non-Consenting Lender, then the Parent Borrower may, at its sole  expense and effort, upon notice to such Lender and the 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 11.06), all of its interests, rights (other than its existing rights to payments pursuant to  Sections  3.01  and  3.04)  and  obligations  under  this  Agreement  and  the  related  Loan  Documents  to  an  Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender  accepts such assignment); provided, that:                 (a)    the  Administrative  Agent  shall  have  received  or  waived  the assignment  fee         specified in Section 11.06(b);                              (b)    such Lender shall have received payment of an amount equal to the outstanding        principal  of  its  Loans  and,  with  respect  to  Revolving  Lenders, L/C  Advances,  accrued  interest        thereon,  accrued  fees  and  all  other  amounts  payable  to  it  hereunder  and  under  the  other  Loan        Documents (including any amounts under Section 3.05) from the assignee (to the extent of such        outstanding  principal  and  accrued  interest  and  fees)  or  the  Borrowers  (in  the  case  of  all  other        amounts);                                                            146  CHAR1\1732710v2 

 

                (c)    in the case of any such assignment resulting from a claim for compensation under        Section 3.04 or payments required to be made pursuant to Section 3.01, such assignment will result        in a reduction in such compensation or payments thereafter;                  (d)    such assignment does not conflict with applicable Laws;                               (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; and                              (f)    the failure by such Non-Consenting Lender to execute and deliver an Assignment         and Assumption shall not impair the validity of the removal of such Non-Consenting Lender and         the mandatory assignment of such Non-Consenting Lender’s Commitments and outstanding Loans         and participations in L/C Obligations and Swing Line Loans pursuant to this Section 11.13 shall        nevertheless be effective without the execution by such Non-Consenting Lender of an Assignment        and Assumption.                       A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a  result of a waiver by such Lender or otherwise, the circumstances entitling the Parent Borrower to require  such assignment and delegation cease to apply.     11.14  Governing Law; Jurisdiction; Etc.             (a)   GOVERNING LAW.  THIS AGREEMENT AND ALL OTHER LOAN DOCUMENTS  (EXCEPT AS EXPRESSLY PROVIDED OTHERWISE THEREIN) SHALL BE GOVERNED BY, AND  CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.                  (b)   SUBMISSION TO JURISDICTION.  THE PARENT BORROWER AND EACH OTHER  LOAN  PARTY  IRREVOCABLY  AND  UNCONDITIONALLY  SUBMITS,  FOR  ITSELF         AND  ITS  PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF 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,  IN  ANY  ACTION  OR  PROCEEDING  ARISING  OUT  OF  OR  RELATING TO THIS  AGREEMENT  OR  ANY  OTHER  LOAN  DOCUMENT,  OR  FOR  RECOGNITION  OR  ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY  AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION  OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE 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  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, ANY LENDER OR THE L/C ISSUER MAY  OTHERWISE  HAVE  TO  BRING  ANY  ACTION  OR  PROCEEDING  RELATING  TO  THIS  AGREEMENT OR ANY  OTHER LOAN DOCUMENT AGAINST THE PARENT BORROWER OR  ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.                  (c)   WAIVER  OF  VENUE.   THE  PARENT  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                                             147  CHAR1\1732710v2 

 

   RELATING  TO  THIS  AGREEMENT  OR  ANY  OTHER  LOAN  DOCUMENT  IN  ANY  COURT  REFERRED  TO  IN  SECTION  11.14(b).   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.                  (d)   SERVICE OF PROCESS.  EACH PARTY HERETO IRREVOCABLY CONSENTS TO  SERVICE  OF  PROCESS  IN  THE  MANNER  PROVIDED  FOR  NOTICES  IN  SECTION 11.02.   NOTHING  IN  THIS  AGREEMENT  WILL  AFFECT  THE  RIGHT  OF  ANY  PARTY  HERETO  TO  SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.    11.15  Waiver of Right to Trial by Jury.             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  Electronic Execution.                  This Agreement and any document, amendment, approval, consent, information, notice, certificate,  request,  statement,  disclosure  or  authorization  related  to  this  Agreement  (each  a  “Communication”),  including Communications required to be in writing, may be in the form of an Electronic Record and may  be  executed  using  Electronic  Signatures.   Each  Loan  Party  agrees  that  any  Electronic  Signature  on  or  associated with any Communication shall be valid and binding on each Loan Party to the same extent as a  manual,  original  signature,  and  that  any  Communication  entered into  by  Electronic  Signature,  will  constitute the legal, valid and binding obligation of such Loan Party enforceable against such in accordance  with the terms thereof to the same extent as if a manually executed original signature was delivered.   Any  Communication may be executed in as many counterparts as necessary or convenient, including both paper  and  electronic  counterparts,  but  all  such  counterparts  are  one and  the  same  Communication.   For  the  avoidance  of  doubt,  the  authorization  under  this  Section  11.16 may  include  use  or  acceptance  by  the  Administrative Agent and each of the Lenders of a manually signed paper Communication which has been  converted  into  electronic  form  (such  as  scanned  into  PDF  format),  or  an  electronically  signed  Communication  converted  into  another  format,  for  transmission, delivery  and/or  retention.  The  Administrative  Agent  and  each  of  the  Lenders  may,  at  its  option,  create  one  or  more  copies  of  any  Communication in the form of an imaged Electronic Record (“Electronic Copy”), which shall be deemed  created in the ordinary course of the such Person’s business, and destroy the original paper document.  All  Communications in the form of an Electronic Record, including an Electronic Copy, shall be considered an  original for all purposes, and shall have the same legal effect, validity and enforceability as a paper record.   Notwithstanding anything contained herein to the contrary, the Administrative Agent is under no obligation  to  accept  an  Electronic  Signature  in  any  form  or  in  any  format unless  expressly  agreed  to  by  the  Administrative Agent pursuant to procedures approved by it; provided, that, without limiting the foregoing,  (a)  to  the  extent  the  Administrative  Agent  has  agreed  to  accept  such  Electronic  Signature,  the                                             148  CHAR1\1732710v2 

 

   Administrative Agent and each Lender shall be entitled to rely on any such Electronic Signature purportedly  given  by  or  on  behalf  of  any  Loan  Party  without  further  verification  and  (b)  upon  the  request  of  the  Administrative Agent or any Lender, any Electronic Signature shall be promptly followed by such manually  executed counterpart.  For purposes hereof, “Electronic Record” and “Electronic Signature” shall have the  meanings assigned to them, respectively, by 15 USC §7006, as it may be amended from time to time.    11.17  USA PATRIOT Act Notice.                  Each Lender that is subject to the Patriot Act (as hereinafter defined) and the Administrative Agent  (for itself and not on behalf of any Lender) hereby notifies each 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 “Patriot Act”),  it is required to obtain, verify and record information that identifies such Borrower, which information  includes the name and address of such Borrower and other information that will allow such Lender or the  Administrative Agent, as applicable, to identify such Borrower in accordance with the Act.  Each Borrower  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 Patriot Act and the Beneficial Ownership Regulation.           11.18  No Advisory or Fiduciary Relationship.           In connection with all aspects of each transaction contemplated hereby (including in connection  with any amendment, waiver or other modification hereof or of any other Loan Document), each Borrower  acknowledges and agrees, and acknowledges its Affiliates’ understanding, that: (a)(i) the arranging and  other  services  regarding  this  Agreement  provided  by  the  Administrative  Agent,  the  Arrangers  and  the  Lenders are arm’s-length commercial transactions between such Borrower and its Affiliates, on the one  hand, and the Administrative Agent, the Arrangers and the Lenders, on the other hand, (ii) such Borrower  has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate,  and  (iii)  such  Borrower  is  capable  of  evaluating,  and  understands  and  accepts,  the  terms,  risks  and  conditions of the transactions contemplated hereby and by the other Loan Documents; (b)(i) each of the  Administrative Agent, the Arrangers and the Lenders 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 such Borrower or any of Affiliates or any other Person and (ii) none of the  Administrative  Agent,  Arrangers  and  the  Lenders  has  any  obligation  to  such  Borrower  or  any  of  its  Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth  herein and in the other Loan Documents; and (c) the Administrative Agent, the Arrangers and the Lenders  and their respective Affiliates may be engaged in a broad range of transactions that involve interests that  differ from those of such Borrower and its Affiliates, and none of the Administrative Agent, the Arrangers  and the Lenders has any obligation to disclose any of such interests to the such or its Affiliates.  To the  fullest extent permitted by Law, each Borrower hereby waives and releases, any claims that it may have  against the Administrative Agent, either of the Arrangers and/or 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.    11.19  Parallel Debt.                  (a)    Each  Lender,  the  Administrative  Agent,  the  Swing  Line  Lender  and  the  L/C  Issuer  (collectively, for purposes of this Section 11.19 only, the “Finance Parties”) hereby agree that:                 (i)    the total amount due and payable as Parallel Debt (as created and defined in the         Dutch Share Pledge Agreement (as defined in Section 11.19(d) below)) under Clause 2 of the Dutch                                             149  CHAR1\1732710v2 

 

         Share Pledge Agreement (as defined in Section 11.19(d) below) shall be decreased to the extent        that any amount is irreversibly (onaantastbaar) paid to and received by the Finance Parties or any        of them to reduce the total amount due and payable in respect of the Principal Obligations (as this        term is defined in the Dutch Share Pledge Agreement (as defined in Section 11.19(d) below)), as if        such amount were received by the Administrative Agent in payment of the Parallel Debt (as created        and defined in the Dutch Share Pledge Agreement (as defined in Section 11.19(d) below)); and                       (ii)   the total amount due and payable in respect of the Principal Obligations (as this        term is defined in the Dutch Share Pledge Agreement (as defined in Section 11.19(d) below)) shall        be decreased to the extent that any amount is irreversibly (onaantastbaar) paid to and received by         the Administrative Agent in payment of the Parallel Debt (as created and defined in the Dutch         Share Pledge Agreement (as defined in Section 11.19(d) below)), as if such amount were received        by the Finance Parties or any of them in payment of the corresponding Principal Obligations (as        this term is defined in the Dutch Share Pledge Agreement (as defined in Section 11.19(d) below)).        The Administrative Agent undertakes to give effect to the preceding sentence by application of any        amount so received in payment of the Parallel Debt (as created and defined in the Dutch Share        Pledge  Agreement  (as  defined  in  Section  11.19(d)  below))  in  accordance  with  the  terms  and        conditions  of  the  Loan  Documents,  as  if  such  amount  were  received  in  payment  of  the        corresponding Principal Obligations (as this term is defined in the Dutch Share Pledge Agreement        (as defined in Section 11.19(d) below)).                       (b)    This Section 11.19 and any dispute, controversy, proceedings or claim of whatever nature  arising out of or in any way relating thereto shall be governed by and construed in accordance with the  Laws of the Netherlands.                      (c)   Each of the parties hereto irrevocably agrees that all disputes arising out of this Section  11.19 shall be submitted in first instance to the competent court at Amsterdam, the Netherlands. Nothing  in the preceding sentence shall limit the Administrative Agent’s right to bring proceedings against Knoll  Overseas, Inc. in any other court or competent jurisdiction.    11.20  Judgment Currency.           If,  for  the  purposes  of  obtaining  judgment  in  any  court,  it  is necessary  to  convert  a  sum  due  hereunder or any other Loan Document in one currency into another currency, the rate of exchange used  shall  be  that  at  which  in  accordance  with  normal  banking  procedures  the  Administrative  Agent  could  purchase the first currency with such other currency on the Business Day preceding that on which final  judgment is given.  The obligation of the applicable Loan Party in respect of any such sum due from it to  the  Administrative  Agent  or  any  Lender  hereunder  or  under  the  other  Loan  Documents  shall,  notwithstanding any judgment in a currency (the “Judgment Currency”) other than that in which such sum  is  denominated  in  accordance  with  the  applicable  provisions  of this  Agreement  (the  “Agreement  Currency”),  be  discharged  only  to  the  extent  that  on  the  Business  Day  following  receipt  by  the  Administrative Agent or such Lender, as the case may be, of any sum adjudged to be so due in the Judgment  Currency, the Administrative Agent or such Lender, as the case may be, may in accordance with normal  banking procedures purchase the Agreement Currency with the Judgment Currency.  If the amount of the  Agreement Currency so purchased is less than the sum originally due to the Administrative Agent or any  Lender from any Loan Party in the Agreement Currency, each Loan Party agrees, as a separate obligation  and notwithstanding any such judgment, to indemnify the Administrative Agent or such Lender, as the case  may be, against such loss.  If the amount of the Agreement Currency so purchased is greater than the sum  originally due to the Administrative Agent or any Lender in such currency, the Administrative Agent or  such Lender, as the case may be, agrees to return the amount of any excess to the applicable Loan Party (or  to any other Person who may be entitled thereto under applicable Law).                                             150  CHAR1\1732710v2 

 

     11.21  Amendment and Restatement.             The parties hereto agree that, on the Effective Date, the following transactions shall be deemed to  occur automatically, without further action by any party hereto: (a) the Existing Credit Agreement shall be  deemed to be amended and restated in its entirety pursuant to this Agreement; (b) all Obligations under the  Existing Credit Agreement outstanding on the Effective Date after giving effect to this Agreement shall in  all respects be continuing and shall be deemed to Obligations outstanding hereunder; (c) the Guaranties  made pursuant to the Existing Credit Agreement to the Lenders (including the Swing Line Lender), the L/C  Issuer,  each  Qualifying  Counterparty  to  a  Swap  Contract  (that  is  permitted  to  be  incurred  pursuant  to  Section  8.01(d))  with  any  Loan  Party  or  any  Subsidiary,  each  Qualifying  Counterparty  to  a  Treasury  Management Agreement with any Loan Party, any Subsidiary and/or the Administrative Agent shall remain  in  full  force  and  effect  with  respect  to  the  Obligations  and  are  hereby  reaffirmed;  (d)  the  Collateral  Documents, as amended on or after the Effective Date, and the Liens created thereunder in favor of Bank  of America, as administrative agent for the benefit of the holders of the Obligations (as defined in the  Existing Credit Agreement) shall remain in full force and effect with respect to the Obligations and are  hereby reaffirmed and in particular Knoll Europe and Knoll Overseas confirm that, with effect from (and  including) the Effective Date (subject in all cases to the proviso herein and Section 2.18), (i) the liabilities  and obligations arising under this Third Amended and Restated Credit Agreement and the Loan Documents  shall form part of (but do not limit) the “Secured Obligations” as defined in Dutch Share Pledge Agreement  to which they are a party; (ii) any security created under the Dutch Share Pledge Agreement extends to the  Obligations  of  the  Foreign  Obligors  under  the  Loan  Documents  (including  this  Third  Amended  and  Restated  Credit  Agreement);  and  (iii)  the  security  created  under  the  Dutch  Share  Pledge  Agreement  continues  in  full  force  and  effect  on  the  terms  of  the  Dutch  Share  Pledge  Agreement;  provided,  that,  notwithstanding  anything  to  the  contrary  herein  (including  this clause (d)), the Dutch Share Pledge  Agreement or any other Loan Document, in no event shall the (I) “Secured Obligations” (as defined in the  Dutch  Share  Pledge  Agreement)  include  any  Obligations  of  the  Parent  Borrower  or  any  Domestic  Subsidiary and (II) security created under the Dutch Share Pledge Agreement secure any Obligations of the  Parent  Borrower  or  any  Domestic  Subsidiary;  (e)  all  Existing  Letters  of  Credit  outstanding  under  the  Existing Credit Agreement on the Effective Date and set forth on Schedule 1.01(b) shall be deemed to be  Letters of Credit outstanding on the Effective Date under this Agreement; and (f) all references in the other  Loan Documents to the Existing Credit Agreement shall be deemed to refer without further amendment to  this Agreement.  Notwithstanding anything to the contrary herein, the Lenders, the L/C Issuer and the  Administrative Agent hereby release all any and all guarantees granted by any Released Guarantor under  the Existing Credit Agreement, release any and all Liens granted by any Released Guarantors and release  any Liens in any assets of the Parent Borrower or any of its subsidiaries that is not Collateral (including any  Liens on any real property), and shall take, at the expense of the Parent Borrower, any action reasonably  requested by the Parent Borrower in furtherance of the foregoing; provided, however, that, neither this  clause nor any other provision of any Loan Document shall operate to release Knoll Overseas from its  obligations  under  (x)  this  Agreement  and  the  other  Loan  Documents  as  a  Guarantor  with  respect  to  Obligations of the Foreign Obligors and Foreign Subsidiaries and (y) the Dutch Share Pledge Agreement  to the extent provided for in clause (e) of this Section 11.21.          11.22  Acknowledgement 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                                             151  CHAR1\1732710v2 

 

   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  the  applicable  Resolution Authority.    11.23  Lender ERISA Representations.           (a)   Each Lender (x) represents and warrants, as of the date such Person became a Lender party  hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such  Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, and not, for the  avoidance of doubt, to or for the benefit of the Parent Borrower or any other Loan Party, that at least one  of the following is and will be true:                        (i)    such Lender is not using “plan assets” (within the meaning of Section 3(42) of         ERISA or otherwise) of one or more Benefit Plans with respect to such Lender’s entrance into,         participation  in,  administration  of  and  performance  of  the  Loans, the Letters of Credit, the         Commitments, or this Agreement,                              (ii)   the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a         class exemption for certain transactions determined by independent qualified professional asset        managers), PTE 95-60 (a class exemption for certain transactions involving insurance company        general  accounts),  PTE  90-1  (a  class  exemption  for  certain  transactions  involving  insurance        company  pooled  separate  accounts),  PTE  91-38  (a  class  exemption  for  certain  transactions        involving  bank  collective  investment  funds)  or  PTE  96-23  (a  class  exemption  for  certain        transactions determined by in-house asset managers), is applicable with respect to such Lender’s        entrance  into,  participation  in,  administration  of  and  performance  of  the  Loans,  the  Letters  of        Credit, the Commitments and this Agreement,                              (iii)  (A) such Lender is an investment fund managed by a “Qualified Professional Asset        Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset        Manager  made  the  investment  decision  on  behalf  of  such  Lender  to  enter  into,  participate  in,        administer and perform the Loans, the Letters of Credit, the Commitments and this Agreement, (C)        the entrance into, participation in, administration of and performance of the Loans, the Letters of        Credit, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through        (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of        subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into,        participation  in,  administration  of  and  performance  of  the  Loans, the Letters of Credit, 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 Section 11.23(a)(i) is true with respect to a Lender or such Lender has  not  provided  another  representation,  warranty  and  covenant  as  provided  in  Section  11.23(a)(iv),  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                                             152  CHAR1\1732710v2 

 

   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 Parent 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 Loans, the Letters of Credit, 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).          11.24  Waiver of Breakage Costs.                  Inasmuch  as  revolving  and  term  loans  are  outstanding  under  the Existing  Credit  Agreement  immediately prior to the Effective Date, the Parent Borrower must make prepayments and adjustments on  such  loans  as  are  necessary  to  give  effect  to  the  Commitments  of  the  Lenders  hereunder.   The  Parent  Borrower, in consultation with the Administrative Agent, have endeavored to manage the allocation of  Commitments and the selection of Interest Periods with respect to outstanding Eurocurrency Rate Loans in  such a manner as to minimize break-funding costs.  Nonetheless, such prepayments of such loans under the  Existing Credit Agreement likely will cause breakage costs.  Notwithstanding the provisions of Section  3.05, each of the Lenders party hereto who were lenders under the Existing Credit Agreement hereby waives  its  right  to  receive  compensation  or  reimbursement  for  such  breakage  costs  (a)  in  connection  with  the  reallocation of commitment percentages on the Effective Date and (b) in connection with any resetting of  the Interest Period for Loans outstanding as of the Effective Date.           11.25  Reallocation.                  The Administrative Agent, the Parent Borrower and the Lenders hereby acknowledge and agree  that  the  Commitment  amount(s)  of  each  Lender  as  set  forth  on  Schedule  2.01  is/are  the  Commitment  amounts of such Lender as of the Effective Date, with the reallocation of Loans outstanding under the  Commitments of the Lenders as they existed immediately prior to the Effective Date having been made per  instructions from the Administrative Agent, and neither any Assignment and Assumption nor any other  action of any Person is required to give effect to such Commitments as set forth on Schedule 2.01.          11.26  Subordination.                  Each Loan Party (a “Subordinating Loan Party”) hereby subordinates the payment of all obligations  and Indebtedness of any other Loan Party owing to it, whether now existing or hereafter arising, including  but not limited to any obligation of any such other Loan Party to the Subordinating Loan Party as subrogee  of the holders of the Obligations or resulting from such Subordinating Loan Party’s performance under the  Guaranty, to the indefeasible payment in full in cash of all Obligations.  If the holders of the Obligations so  request, any such obligation or Indebtedness of any such other Loan Party to the Subordinating Loan Party  shall be enforced and performance received by the Subordinating Loan Party as trustee for the holders of  the Obligations and the proceeds thereof shall be paid over to the holders of the Obligations on account of  the Obligations, but without reducing or affecting in any manner the liability of the Subordinating Loan  Party under this Agreement.  Without limitation of the foregoing, so long as no Default has occurred and is  continuing, the Loan Parties may make and receive payments with respect to Indebtedness permitted to be  incurred pursuant to Section 8.01(o); provided, that, in the event that any Loan Party receives any payment  of any Indebtedness permitted to be incurred pursuant to Section 8.01(o) at a time when such  payment is  prohibited by this Section 11.26, such payment shall be held by such Loan Party, in trust for the benefit of,  and shall be paid forthwith over and delivered, upon written request, to the Administrative Agent.           11.27  ENTIRE AGREEMENT.                                                       153  CHAR1\1732710v2 

 

         THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL  AGREEMENT AMONG THE PARTIES HERETO AND MAY NOT BE CONTRADICTED                      BY  EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF  THE PARTIES HERETO.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE  PARTIES HERETO.          11.28  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):                  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 such 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 such 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.                               [SIGNATURE PAGES INTENTIONALLY OMITTED]                                                154  CHAR1\1732710v2

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