UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
_________________
Date of Report (Date of earliest event reported):
June 19, 2014
EMPIRE RESOURCES, INC.
(Exact name of registrant as specified in
its charter)
Delaware |
|
011-12127 |
|
22-3136782 |
(State or other
jurisdiction of
incorporation) |
|
(Commission File Number) |
|
(IRS Employer
Identification No.) |
One Parker Plaza
Fort Lee, New Jersey |
|
07024 |
(Address of principal executive offices) |
|
(Zip Code) |
Registrant’s telephone number, including
area code: (201) 944-2200
(Former name or former address, if changed since last report) |
Check the appropriate box below if the Form
8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 1.01. Entry into a Material Definitive Agreement.
Amended and Restated Credit Agreement
On
June 19, 2014, Empire Resources, Inc. (the “Company”) entered into the Amended and Restated Credit Agreement
(the “A&R Credit Agreement”) by and among the Company, Coöperatieve Centrale Raiffeisen-Boerenleenbank
B.A., “Rabobank Nederland”, New York Branch (“Rabobank”), as agent for the Committed Banks
(as defined below), and each of the lenders that is a signatory thereto (including Rabobank) (collectively, the “Committed
Banks”), and BNP Paribas, as syndication agent, to amend and restate the Credit
Agreement by and among the Company, certain of the Committed Banks and Rabobank, as agent, dated as of April 28, 2011.
The A&R Credit
Agreement provides for a $150 million maximum principal amount (with a swing line loan sublimit of $10 million and letter of credit
sublimit of $75 million) secured, asset-based revolving credit facility (the “Committed Facility”), which
matures on June 19, 2017. The A&R Credit Agreement allows additional increases in the line of credit of up to $75 million,
subject to certain restrictions. Amounts borrowed under the A&R Credit Agreement bear interest, at the Company’s option,
at Base Rate (as defined in the A&R Credit Agreement) plus 0.85% on Base Rate loans, or Eurodollar Rate (as defined in the
A&R Credit Agreement ) plus 2.35% on Eurodollar loans.
The obligations of
the Company under the A&R Credit Agreement are secured on a first-priority, perfected basis by substantially all of the assets
of the Company and certain of its domestic subsidiaries (the “Guarantors”).
The A&R Credit
Agreement contains financial and other affirmative and negative covenants including, but not limited to, covenants requiring maintenance
of minimum tangible net working capital of $35 million plus an aggregate amount equal to 25% of the positive consolidated net income
of the Company for the fiscal year most recently ended and compliance with a leverage ratio of not more than 6.00 to 1, as well
as an ownership minimum and restrictions on the ability of the Company to incur indebtedness, create or incur liens, make distributions
or dividends, make investments, and enter into merger agreements or agreements for disposition of assets. The A&R Credit Agreement
also contains customary representations, warranties and defaults for a facility of this nature.
Uncommitted Credit Agreement
On
June 19, 2014, the Company entered into the Uncommitted Credit Agreement (the “Uncommitted Credit Agreement”)
by and among the Company, Rabobank, as agent for the Uncommitted Banks (as defined below), and each of the lenders that is a signatory
thereto (collectively, the “Uncommitted Banks”), and BNP Paribas,
as syndication agent.
The Uncommitted Credit
Agreement provides that the Uncommitted Banks will consider requests to make loans and letters of credit, on an uncommitted and
absolutely discretionary basis, in an aggregate amount at any one time outstanding not to exceed $75 million (with letter of credit
sublimit of $35 million). Amounts borrowed under the Uncommitted Credit Agreement bear interest, at the Company’s option,
at the Base Rate (as defined in the Uncommitted Credit Agreement) plus 0.35% on Base Rate loans, or Eurodollar Rate (as defined
in the Uncommitted Credit Agreement) plus 1.85% on Eurodollar loans.
The obligations of
the Company under the Uncommitted Credit Agreement are secured on a first-priority, perfected basis by substantially all of the
assets of the Company and Guarantors (subject to certain permitted liens and subject to the Intercreditor Agreement (as defined
below)).
The Uncommitted Credit
Agreement contains financial and other affirmative and negative covenants including, but not limited to, covenants requiring maintenance
of minimum tangible net working capital of $35 million plus an aggregate amount equal to 25% of the positive consolidated net income
of the Company for the fiscal year most recently ended and compliance with a leverage ratio of not more than 6.00 to 1, as well
as an ownership minimum and restrictions on the ability of the Company to incur indebtedness, create or incur liens, make distributions
or dividends, make investments, and enter into merger agreements or agreements for disposition of assets. The Uncommitted Credit
Agreement also contains customary representations, warranties and defaults for a facility of this nature.
Any Uncommitted Bank
at any time may demand repayment of the entire outstanding principal amount of such Uncommitted Bank’s loans and cash collateralization
of the letters of credit, in which case the Company may require such Uncommitted Bank to assign its loans to another lender, if
such a lender can be found by the Company prior to the close of business on the tenth business day following the date of such demand;
provided, however, notwithstanding the foregoing, if such demand is made by Uncommitted Banks having 51% of the aggregate amount
of the loans made under the Uncommitted Credit Agreement, then the Company shall immediately pay the entire outstanding principal
amount of all loans and cash collateralization of all letters of credit. In any event, unless otherwise agreed to, all amounts
under the Uncommitted Credit Agreement must be repaid by the Company on or before June 19, 2015.
In connection with
the A&R Credit Agreement, the Company and the Guarantors entered into the Amended and Restated Security Agreement (the “A&R
Security Agreement”), dated as of June 19, 2014, pursuant to which the Company and the Guarantors granted a security
interest in substantially all of their assets to secure the obligations of the Company for borrowed money under the A&R Credit
Agreement. In connection with the Uncommitted Credit Agreement, the Company and the Guarantors entered into the Security Agreement
(the “Uncommitted Security Agreement”), dated as of June 19, 2014, pursuant to which the Company and
the Guarantors granted a security interest in substantially all of their assets to secure the obligations of the Company for borrowed
money under the Uncommitted Credit Agreement.
Rabobank,
in its capacity as collateral agent for the Committed Banks, and Rabobank, in its capacity
as collateral agent for the Uncommitted Banks, entered into the Intercreditor Agreement, dated as of June 19, 2014 (the “Intercreditor
Agreement”), pursuant to which the parties to such agreement agreed that (i) the liens granted to Rabobank, in
its capacity as collateral agent for the Uncommitted Banks, to secure the obligations of the Company
under the Uncommitted Credit Agreement were junior and subordinate to the liens granted to Rabobank, in its
capacity as collateral agent for the Committed Banks, over assets included in the Borrowing Base for the Committed Credit Agreement
and certain other assets and accounts provided as collateral, and (ii) the liens granted to Rabobank, in its
capacity as collateral agent for the Committed Banks, to secure the obligations of the Company under the Committed Credit Agreement
were junior and subordinate to the liens granted to Rabobank, in its capacity as collateral
agent for the Uncommitted Banks, over assets included in the Borrowing Base for the Uncommitted Credit Agreement and certain other
assets and accounts provided as collateral.
Copies of the A&R
Credit Agreement, the Uncommitted Credit Agreement, the A&R Security Agreement, the Uncommitted Security Agreement and the
Intercreditor Agreement are filed as Exhibits 10.1, 10.2, 10.3, 10.4 and 10.5 hereto, respectively, and incorporated herein by
reference. The foregoing descriptions of the A&R Credit Agreement, the Uncommitted Credit Agreement, the A&R Security Agreement,
the Uncommitted Security Agreement and the Intercreditor Agreement do not purport to be complete and are qualified in their entirety
by reference to the A&R Credit Agreement, the Uncommitted Credit Agreement, the A&R Security Agreement, the Uncommitted
Security Agreement and the Intercreditor Agreement, respectively.
Item 2.03. Creation of a Direct Financial Obligation
or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information from Item 1.01 above is
incorporated by reference into this Item 2.03.
Item 8.01. Other Events
On June 23, 2014, the
Company issued a press release announcing that the Company had entered into the A&R Credit Agreement and the Uncommitted Credit
Agreement, along with the material terms of these agreements. A copy of the Company’s press release is filed as Exhibit 99.1
to this Current Report on Form 8-K.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit
Number |
|
Description |
|
|
|
10.1 |
|
Amended and Restated Credit Agreement dated as of June 19, 2014, by and among Empire Resources, Inc., Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, as agent for the Banks, each of the Banks, and BNP Paribas, as syndication agent. |
|
|
|
10.2 |
|
Uncommitted Credit Agreement dated as of June 19, 2014, by and among Empire Resources, Inc., Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, as agent for the Banks, each of the Banks, and BNP Paribas, as syndication agent. |
|
|
|
10.3 |
|
Amended and Restated Security Agreement dated as of June 19, 2014, by and among Empire Resources, Inc., and each Guarantor, in favor of Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, as agent for each of the Secured Parties. |
|
|
|
10.4 |
|
Security Agreement dated as of June 19, 2014, by and among Empire Resources, Inc., and each Guarantor, in favor of Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, as agent for each of the Secured Parties. |
|
|
|
10.5 |
|
Intercreditor Agreement dated as of June 19, 2014, by and between Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, in its capacity as collateral agent for the Committed Lenders, and Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, in its capacity as collateral agent for the Uncommitted Lenders. |
|
|
|
99.1 |
|
Press release dated June 23, 2014. |
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
EMPIRE RESOURCE, INC. |
|
|
|
Dated: June 25, 2014 |
By: |
/s/ Sandra Kahn |
|
|
Name: Sandra Kahn |
|
|
Title: Chief Financial Officer |
AMENDED AND RESTATED
CREDIT AGREEMENT
by and among
EMPIRE RESOURCES, INC.
as Borrower,
COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK
B.A., “RABOBANK
NEDERLAND”, NEW YORK BRANCH,
as Lead Arranger, Agent,
Swing Line Bank and an Issuing Bank
and
BNP PARIBAS, as Syndication Agent
and
the banks party hereto
June 19, 2014
Table of Contents
|
|
Page |
|
|
|
Section 1. Definitions and Accounting Matters |
1 |
|
|
|
1.01 |
Certain Defined Terms |
1 |
1.02 |
Accounting Terms and Determinations |
24 |
(a) |
GAAP Consistently Applied |
24 |
(b) |
No Change to Fiscal Year |
24 |
(c) |
Financial Covenants Determined on a Consolidated Basis |
25 |
(d) |
Terms Generally |
25 |
1.03 |
Types of Loans |
25 |
|
|
|
Section 2. Commitments, Loans, Notes and Prepayments |
25 |
|
|
|
2.01 |
Loans |
25 |
(a) |
Revolving Loans |
25 |
(b) |
Intentionally omitted |
25 |
(c) |
Swing Line Commitment; Banks’ Participation |
26 |
(d) |
Repayment of Swing Line Loans; Funding of Participations |
26 |
2.02 |
Borrowings |
27 |
2.03 |
Letters of Credit |
27 |
(a) |
Letter of Credit Request Procedure |
27 |
(b) |
Bank Participation in Letters of Credit |
28 |
(c) |
Drawings on Letters of Credit; Reimbursement |
28 |
(d) |
Borrowing to Fund Reimbursement |
28 |
(e) |
Funding of Bank Participation in Letters of Credit |
28 |
(f) |
Payments Received by the Issuing Banks |
28 |
(g) |
(i) Letter of Credit Fees |
29 |
(h) |
Letter of Credit Liability Accounting |
29 |
(i) |
Conditions to Issuance |
29 |
(j) |
Default Interest |
30 |
(k) |
Modifications to Letters of Credit |
30 |
(l) |
Company Indemnification |
30 |
(m) |
Obligations Absolute |
31 |
(n) |
Exculpation |
31 |
(o) |
Auto-Renewal Letters of Credit |
32 |
(p) |
Issuance Caps |
32 |
(q) |
Agent Consent |
32 |
(r) |
Successor Issuing Banks |
33 |
(s) |
UCP; ISP |
33 |
2.04 |
Intentionally Omitted |
33 |
2.05 |
Changes of the Commitment |
33 |
(a) |
Revolving Credit Commitment Termination Date |
33 |
(b) |
Optional Termination |
34 |
(c) |
No Reinstatement |
34 |
(d) |
Increases in Revolving Loan Commitments |
34 |
2.06 |
Commitment Fee |
35 |
2.07 |
Lending Offices |
35 |
2.08 |
Several Obligations; Remedies Independent |
35 |
Table of Contents
(continued)
|
|
Page |
|
|
|
2.09 |
Evidence of Indebtedness |
35 |
(a) |
Maintenance of Loan Accounts by Banks |
35 |
(b) |
Maintenance of Loan Accounts by the Agent |
36 |
(c) |
Effect of Entries |
36 |
(d) |
Promissory Notes |
36 |
2.10 |
Optional Prepayments and Conversions or Continuations of Loans |
36 |
2.11 |
Mandatory Prepayments |
36 |
(a) |
Borrowing Base |
36 |
(b) |
Cover for Letter of Credit Liabilities |
37 |
|
|
|
Section 3. Payments of Principal and Interest |
37 |
|
|
|
3.01 |
Repayment of Loans |
37 |
3.02 |
Interest |
37 |
(a) |
Revolving Loans |
37 |
(b) |
Swing Line Loans |
37 |
(c) |
Post Default Interest |
38 |
(d) |
Payment of Interest |
38 |
|
|
|
Section 4. Payments; Computations; Etc |
38 |
|
|
|
4.01 |
Payments |
38 |
(a) |
Payments Generally |
38 |
(b) |
Payments to the Banks |
38 |
(c) |
Payments on a Non-Business Day |
38 |
4.02 |
Computations |
38 |
4.03 |
Pro Rata Treatment |
39 |
4.04 |
Minimum Amounts |
39 |
4.05 |
Certain Notices |
39 |
4.06 |
Non-Receipt of Funds by the Agent |
40 |
4.07 |
Sharing of Payments, etc |
41 |
(a) |
Set off |
41 |
(b) |
Sharing of Payments on Loan Obligations |
41 |
(c) |
Sharing of Benefits of Secured Claim |
41 |
4.08 |
Application of Proceeds of Collateral and Subsidiary Guarantee |
41 |
4.09 |
Noncash Proceeds |
42 |
4.10 |
Return of Proceeds |
42 |
4.11 |
Notice of Amount of Obligations |
42 |
4.12 |
Defaulting Banks |
43 |
|
|
|
Section 5. Yield Protection, Etc |
46 |
|
|
|
5.01 |
Additional Costs |
46 |
5.02 |
Inability to Determine Interest Rate |
48 |
5.03 |
Illegality |
48 |
5.04 |
Break Funding Compensation |
49 |
5.05 |
Intentionally omitted |
49 |
5.06 |
Taxes |
49 |
Table of Contents
(continued)
|
|
Page |
|
|
|
(a) |
Payments Free of Taxes |
49 |
(b) |
Payment of Other Taxes by the Company |
49 |
(c) |
Indemnification by the Company |
49 |
(d) |
Indemnification by the Banks |
50 |
(e) |
Evidence of Payments |
50 |
(f) |
Status of Banks |
50 |
|
|
|
Section 6. Conditions Precedent |
52 |
|
|
|
6.01 |
Obligations to Extend Credit |
52 |
(a) |
Executed Counterparts |
52 |
(b) |
Existing Credit Agreement |
52 |
(c) |
Intercreditor Agreement |
52 |
(d) |
Governing Documents |
53 |
(e) |
Good Standing |
53 |
(f) |
Officer’s Certificate |
53 |
(g) |
Borrowing Base Certificate |
53 |
(h) |
Opinion of Counsel to the Company |
53 |
(i) |
Security Documents |
53 |
(j) |
Insurance |
54 |
(k) |
No Material Adverse Effect |
54 |
(l) |
Fees and Expenses |
54 |
(m) |
Subordination Agreement |
54 |
(n) |
Request to Honor Oral and Electronic Instructions |
54 |
(o) |
Other Documents |
54 |
6.02 |
Initial and Subsequent Extensions of Credit |
54 |
|
|
|
Section 7. Representations and Warranties |
55 |
|
|
|
7.01 |
Corporate Existence |
55 |
7.02 |
Financial Condition |
55 |
7.03 |
Litigation |
55 |
7.04 |
No Breach |
55 |
7.05 |
Action |
55 |
7.06 |
Approvals |
56 |
7.07 |
Use of Credit |
56 |
7.08 |
ERISA |
56 |
7.09 |
Taxes |
56 |
7.10 |
Indebtedness and Investments |
56 |
(a) |
Indebtedness |
56 |
(b) |
Investments |
56 |
7.11 |
True and Complete Disclosure |
56 |
7.12 |
Subsidiaries |
57 |
7.13 |
Property |
57 |
7.14 |
Compliance with Laws and Agreements |
57 |
7.15 |
Investment Company Status |
57 |
7.16 |
OFAC Money Laundering Representations |
57 |
Table of Contents
(continued)
|
|
Page |
|
|
|
7.17 |
Insurance |
58 |
7.18 |
Solvency |
58 |
7.19 |
Intentionally omitted |
59 |
7.20 |
Security Documents |
59 |
7.21 |
Environmental Matters |
59 |
|
|
|
Section 8. Covenants of the Company |
60 |
|
|
|
8.01 |
Financial Statements, Etc |
60 |
(a) |
Quarterly Financial Statements |
60 |
(b) |
Annual Financial Statements |
60 |
(c) |
ERISA |
60 |
(d) |
Borrowing Base Certificate |
60 |
(e) |
Collateral Audit |
61 |
(f) |
Shareholder Material |
62 |
(g) |
Notice of Default |
62 |
(h) |
Uncommitted Credit Agreement Documents |
62 |
(i) |
Other Information |
62 |
8.02 |
Litigation |
62 |
8.03 |
Existence, Etc |
62 |
(a) |
Existence |
62 |
(b) |
Compliance with Laws |
63 |
(c) |
Payment of Obligations |
63 |
(d) |
Maintain Property |
63 |
(e) |
Books and Records |
63 |
(f) |
Inspection |
63 |
8.04 |
Insurance |
63 |
8.05 |
Prohibition of Fundamental Changes |
63 |
8.06 |
Limitation on Liens |
64 |
8.07 |
Indebtedness |
65 |
8.08 |
Investments |
66 |
8.09 |
Leverage Ratio |
67 |
8.10 |
Net Working Capital |
67 |
8.11 |
No Net Loss |
67 |
8.12 |
Lines of Business |
67 |
8.13 |
Dividend Payments |
67 |
8.14 |
Use of Proceeds |
67 |
8.15 |
Subordinated Debt |
67 |
8.16 |
Intentionally omitted |
68 |
8.17 |
Additional Guarantors; Pledge of Additional Subsidiaries |
68 |
(a) |
Subsidiary Guarantee |
68 |
(b) |
Secured Documents |
68 |
(c) |
Corporate Authorization |
68 |
8.18 |
Intentionally omitted |
68 |
8.19 |
Amendment to Organizational Documents |
69 |
8.20 |
Capital Expenditures |
69 |
Table of Contents
(continued)
|
|
Page |
|
|
|
8.21 |
Transactions with Affiliates |
69 |
8.22 |
Environmental Laws |
69 |
8.23 |
Take or Pay Contracts |
69 |
8.24 |
Limitation on Dividend Clause and Negative Pledge Clauses |
69 |
8.25 |
Limitation on Sales and Leasebacks |
70 |
8.26 |
Accounting Changes |
70 |
8.27 |
Borrowing Base |
70 |
8.28 |
Deposit Accounts |
70 |
8.29 |
Storage Facilities |
70 |
8.30 |
Sanctions |
70 |
|
|
|
Section 9. Events of Default |
71 |
|
|
|
9.01 |
Events of Default |
71 |
(a) |
Payment Default |
71 |
(b) |
Cross Default |
71 |
(c) |
Representations and Warranties |
71 |
(d) |
Covenant Defaults |
71 |
(e) |
Failure to Pay Debts |
71 |
(f) |
Voluntary Insolvency Proceedings |
72 |
(g) |
Involuntary Insolvency Proceedings |
72 |
(h) |
Judgment Default |
72 |
(i) |
ERISA Events |
72 |
(j) |
Change of Control |
72 |
(k) |
Security Documents; Basic Documents |
73 |
(l) |
Subordination Provisions |
73 |
(m) |
Quad Avenue Loan Agreement |
73 |
(n) |
Uncommitted Credit Agreement Disclosure |
73 |
9.02 |
Cover for Contingent Obligations |
73 |
|
|
|
Section 10. The Agent |
74 |
|
|
|
10.01 |
Appointment, Powers and Immunities |
74 |
10.02 |
Reliance by Agent |
74 |
10.03 |
Defaults |
74 |
10.04 |
Rights as a Bank |
75 |
10.05 |
Indemnification |
75 |
10.06 |
Non-Reliance on Agent and Other Banks |
75 |
10.07 |
Failure to Act |
76 |
10.08 |
Resignation or Removal of Agent |
76 |
10.09 |
Agency Fee |
76 |
10.10 |
Consents under Other Basic Documents |
76 |
10.11 |
Pendency of Insolvency |
76 |
(a) |
Filing Claims |
77 |
(b) |
Collection of Funds |
77 |
10.12 |
Permitted Release of Collateral |
77 |
(a) |
Automatic Release |
77 |
Table of Contents
(continued)
|
|
Page |
|
|
|
(b) |
Written Release |
77 |
(c) |
Other Authorized Release and Subordination |
77 |
10.13 |
Powers and Immunities of Fronting Banks |
78 |
10.14 |
Perfection by Possession and Control; Deposit Accounts |
78 |
10.15 |
Bank Affiliates Rights |
79 |
10.16 |
Other Agents |
79 |
10.17 |
Intercreditor Agreement |
79 |
|
|
|
Section 11. Miscellaneous |
79 |
|
|
|
11.01 |
Waiver |
79 |
11.02 |
Notices |
79 |
(a) |
General Address for Notices |
79 |
(b) |
Electronic Communications |
80 |
(c) |
Electronic Transmission System |
80 |
(d) |
Communications Through the Platform |
80 |
11.03 |
Expenses, etc |
80 |
11.04 |
Amendments, Etc |
81 |
11.05 |
Successors and Assigns |
81 |
11.06 |
Assignments and Participations |
83 |
(a) |
Assignments by Banks |
83 |
(b) |
Maintenance of Register by the Agent |
84 |
(c) |
Effectiveness of Assignments |
84 |
(d) |
Participations |
84 |
(e) |
Limitations on Rights of Participants |
84 |
(f) |
Certain Pledges |
84 |
(g) |
No Assignments to the Company or Affiliates |
85 |
11.07 |
Survival |
85 |
11.08 |
Captions |
85 |
11.09 |
Counterparts |
85 |
11.10 |
Governing Law; Submission to Jurisdiction |
85 |
11.11 |
Waiver of Jury Trial |
86 |
11.12 |
Severability |
86 |
11.13 |
Independence of Covenants |
86 |
11.14 |
PATRIOT ACT PROVISION |
86 |
11.15 |
No Fiduciary Relationship |
86 |
11.16 |
Construction |
86 |
11.17 |
Interest Rate Limitation |
86 |
(a) |
Limitation to Maximum Rate; Recapture |
86 |
(b) |
Cure Provisions |
87 |
11.18 |
Waiver of Consequential Damages, etc |
87 |
11.19 |
Existing Obligations |
87 |
11.20 |
Acknowledgement of Security Interest and Basic Documents; Reaffirmation of Account Control Agreements |
87 |
11.21 |
Basic Documents |
88 |
11.22 |
Acknowledgments, Amendment and Restatement |
88 |
Table of Contents
(continued)
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Page |
|
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|
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EXHIBIT A |
– |
Form of Note |
|
EXHIBIT B |
– |
Form of Borrowing Base Certificate |
|
EXHIBIT C |
– |
Form of Security Agreement |
|
EXHIBIT D |
– |
Form of Subsidiary Guarantee |
|
EXHIBIT E |
– |
Form of Assignment and Assumption |
|
EXHIBIT F |
– |
Form of Increase and New Bank Agreement |
|
EXHIBIT G |
– |
Form of Compliance Certificate |
|
EXHIBIT H |
– |
Intentionally omitted |
|
EXHIBIT I |
– |
Form of Borrowing Request |
|
EXHIBIT J |
– |
Form of Notice of Prepayment, Conversion and Continuation |
|
EXHIBIT K |
– |
Subordination Terms |
|
EXHIBIT L |
– |
Intentionally omitted |
|
EXHIBIT M |
— |
Form of Intercreditor Agreement |
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SCHEDULE A |
– |
Commitments |
|
SCHEDULE I |
– |
Indebtedness |
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SCHEDULE II |
– |
Investments |
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SCHEDULE III |
– |
Subsidiaries |
|
SCHEDULE IV |
— |
Limitations on Dividend Clause and Negative Pledge Clauses |
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SCHEDULE V |
- |
Credit Insurance |
|
AMENDED AND RESTATED
CREDIT AGREEMENT
THIS AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”)
is dated as of June 19, 2014, by and among EMPIRE RESOURCES, INC., a corporation duly organized and validly existing under the
laws of the State of Delaware (the “Company”), COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK
NEDERLAND”, NEW YORK BRANCH (“Rabobank”), as agent for the Secured Parties defined below (in such capacity,
together with its successors in such capacity, the “Agent”), BNP Paribas, as syndication agent (in such capacity,
together with its successors in such capacity, the “Syndication Agent”) and each of the lenders that is a signatory
hereto identified under the caption “Banks” on the signature pages hereto (including Rabobank) or that, pursuant to
Section 2.05(d) or 11.06(b) hereof shall become a “Bank” hereunder (individually, a “Bank”,
and collectively, the “Banks”).
RECITALS:
The Company, certain of the Banks party hereto and the Agent
are parties to the Credit Agreement dated as of April 28, 2011 (as amended, supplemented or otherwise modified from time to time,
the “Existing Credit Agreement”);
The Company has requested, and the Banks party hereto have agreed,
to amend and restate the Existing Credit Agreement on, and subject to, the terms and conditions set forth herein.
Therefore, for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree that the Existing Credit Agreement is amended and restated
in its entirety as set forth above and as follows:
Section
1.
Definitions and Accounting Matters.
1.01 Certain
Defined Terms. As used herein, the following terms have the following meanings (all terms defined in this Section 1.01
or in other provisions of this Agreement in the singular to have the same meanings when used in the plural and vice versa):
“6900 Quad Avenue,
LLC” means 6900 Quad Avenue, LLC, a Delaware limited liability company.
“Account Control
Agreement” means each agreement entered into among the Agent, the Company and a securities intermediary, commodity intermediary
or bank, under which the Agent has been granted “control” over a securities, commodities or deposit account, as applicable,
and the right to issue a notice of exclusive control upon the occurrence and during the continuance of an Event of Default, in
form and substance reasonably acceptable to the Agent. For the avoidance of doubt, the agreement set forth in Section 10.14 in
respect of Obligor Accounts shall be an Account Control Agreement.
“Act”
has the meaning assigned to such term in Section 11.14 hereof.
“Administrative
Questionnaire” means an Administrative Questionnaire in a form supplied by the Agent which will be prepared by the applicable
Bank and delivered to the Agent.
“Advance Date”
has the meaning assigned to such term in Section 4.06 hereof.
“Affiliate”
means as to any Person, any other Person that directly or indirectly controls, or is under common control with, or is controlled
by, such Person and, if such Person is an individual, any member of the immediate family (including parents, spouse, children and
siblings) of such individual and any trust whose principal beneficiary is such individual or one or more members of such immediate
family and any Person who is controlled by any such member or trust. As used in this definition, “control” (including,
with its correlative meanings, “controlled by” and “under common control with”) means possession,
directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities
or partnership or other ownership interests, by contract or otherwise), provided that, in any event, any Person that owns
directly or indirectly securities having 5% or more of the voting power for the election of directors or other governing body of
a corporation or 5% or more of the partnership or other ownership interests of any other Person (other than as a limited partner
of such other Person) will be deemed to control such corporation or other Person. Notwithstanding the foregoing, no individual
shall be an Affiliate solely by reason of his or her being a director, officer or employee of the Company.
“Agent Parties”
has the meaning assigned to such term in Section 11.02(c) hereof.
“Agreement”
has the meaning assigned to such term in the Preamble hereto.
“Anti-Terrorism
Laws” has the meaning assigned to such term in Section 7.16 hereof.
“Applicable
Lending Office” means, for each Bank and for each Type of Loan, the “Lending Office” of such Bank (or of
an affiliate of such Bank) designated from time to time by such Bank for such Type of Loan as the office by which its Loans of
such Type are to be made and maintained.
“Applicable
Margin” means (i) eighty-five hundredths of one percent (0.85%) as it relates to the Base Rate, (ii) two and
thirty-five hundredths of one percent (2.35%) as it relates to the Eurodollar Rate and (iii) with respect to Swing Line Loans,
two and thirty-five hundredths of one percent (2.35%) or such other percentage agreed to by the Company and the Swing Line Bank
from time to time.
“Approved Fund”
means (a) a CLO (as defined below) and (b) with respect to any Bank that is a fund which invests in whole or in material part in
commercial bank loans and similar extensions of credit and is administered or managed by the same investment adviser as such Bank
or by an Affiliate of such investment adviser. As used herein, the term “CLO” means any entity (whether a corporation,
partnership, or trust), other than an entity owned and operated for the primary benefit of a natural person or relative(s) thereof,
that is engaged in making, purchasing, holding or otherwise investing in whole or in material part in commercial bank loans and
similar extensions of credit in the ordinary course of its business and is administered or managed by a Bank or an Affiliate of
a Bank.
“Assignment
and Assumption” means an Assignment and Assumption entered into by a Bank and an assignee (with the consent of any party
whose consent is required by Section 11.05) and accepted by the Agent, substantially in the form of Exhibit E or any other form
approved by the Agent and the Company.
“Assignment
of Claims Act” means the Federal Assignment of Claims Act of 1940, as amended from time to time (31 U.S.C. §3723
et seq.), and any similar state or local laws, as the same now exist or may from time to time hereafter be amended, modified, recodified
or supplemented, together with all rules, regulations or interpretations related thereto.
“Australia”
means the Commonwealth of Australia.
“Australian
Receivables” means, as at any date, the aggregate amount of all Receivables at such date payable to the Company that
would constitute Tier I Eligible Receivables but for the fact that the principal place of business of the relevant account
debtor is in Australia and/or such Receivables are payable in lawful money of Australia, provided that in no event shall the aggregate
amount of the Australian Receivables included in the Borrowing Base (after giving effect to the applicable advance rate) at any
time exceed an amount equal to 10% of the Borrowing Base.
“Auto-Renewal
Letter of Credit” has the meaning assigned to such term in Section 2.03(o) hereof.
“Bank”
has the meaning set forth in the introductory paragraph to this Agreement. Unless the context otherwise requires, the term “Bank”
includes each Fronting Bank.
“Bankruptcy
Code” means the Federal Bankruptcy Code of 1978, as amended from time to time.
“Base Rate”
means for any day, a rate per annum equal to the greatest of (a) the rate of interest published in The Wall Street Journal
as the “prime rate” for such day and if The Wall Street Journal does not publish such rate on such day then
such rate as most recently published prior to such day, (b) the Federal Funds Rate in effect on such day plus 1/2 of 1% and
(c) the Eurodollar Rate that would be applicable in respect of a proposed Eurodollar Loan made two days after such date with
an Interest Period of one month, plus 1.00%. Each change in any interest rate provided for herein based upon the Base Rate resulting
from a change in the Base Rate shall take effect at the time of such change in the Base Rate.
“Base Rate Loans”
means Loans that bear interest at rates based upon the Base Rate.
“Basel III”
means all regulations, 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 any United States or foreign regulatory authorities,
in each case pursuant to “Basel III”, as amended from time to time.
“Basic Documents”
means, collectively, this Agreement, the Notes, the Letter of Credit Documents, the Security Documents and all other documentation
now or hereafter executed and/or delivered pursuant to the express terms of any of the foregoing.
“Borrowing Base”
means, as at any date, the sum of (a) minus (b) minus (c) calculated without duplication as of such date where:
(a) equals
the sum of:
(i) if
and to the extent requested by the Company, 85% of Eligible Net Liquidating Value of Brokerage Accounts; plus
(ii) 90%
of the aggregate amount of Tier I Eligible Receivable; plus
(iii) 80%
of the aggregate amount of Tier II Eligible Receivables; plus
(iv) 70%
of the aggregate amount of Australian Receivables; plus
(v) 80%
of the aggregate amount of Eligible Inventory Ordered Under L/C; plus
(vi) 80%
of the aggregate amount of Eligible Inventory; plus
(vii) 65%
of the aggregate amount of Eligible Unsold Inventory; plus
(viii) 100%
of the aggregate amount of Pledged Cash, and
(b) equals
100% of the aggregate amount of reserves established at any time and from time to time on or after the Closing Date by the Required
Banks, which reserves are determined by the Required Banks to be necessary to protect the Banks’ interests, such determination
to be made in the Required Banks’ judgment, in good faith and based on information which, in its judgment, supports such
determination. Reserves established under this clause (b) may include, without limitation, reserves for: (i) past due rent
at any location leased or owned by the Company at which Inventory is located unless a landlord and/or mortgagee lien waiver or
subordination has been obtained, (ii) shipping costs with respect to any Inventory held by a third party shipping company
and (iii) past due warehouse and other storage charges with respect to any Inventory held at third party warehouses. Any establishment,
reduction or elimination of reserves under this clause (b) shall be effective on the date the Company receives Agent’s
written notice of the amount thereof, provided that the Agent shall deliver notice to the Company of any such establishment, reduction
or elimination of reserves under this clause (b) promptly after the Required Banks make a determination in writing (which shall
have been delivered to the Agent) thereof, and
(c) 100%
of the amount of Indebtedness secured by Permitted Borrowing Base Liens, which is past due (after giving effect to any grace period)
and owing.
The Borrowing Base shall be determined
at any time based on the Borrowing Base Certificate or Interim Borrowing Base Certificate, as applicable, then most recently delivered
or, if acceptable to the Agent, as otherwise certified by the Company to the Agent and the Banks, as reduced or increased after
giving effect to any reallocation pursuant to Section 2.3 of the Intercreditor Agreement. Receivables denominated in a currency
other than Dollars shall be reported in the Borrowing Base based on the U.S. Dollar Equivalent thereof determined as of the date
of the Borrowing Base calculation.
“Borrowing Base
Certificate” means a certificate of the chief financial officer or other authorized officer with responsibility for financial
matters of the Company, substantially in the form of Exhibit B hereto and appropriately completed.
“Borrowing Request”
has the meaning assigned to such term in Section 2.02 hereof.
“Business Day”
means (a) any day on which commercial banks are not authorized or required to close in New York City and (b) if such day relates
to a borrowing of a payment or prepayment of principal of or interest on a Conversion of or into, or an Interest Period for, a
Eurodollar Loan or a notice by the Company with respect to any such borrowing, payment, prepayment, Conversion or Interest Period,
or the determination of the Eurodollar Rate, any day on which dealings in Dollar deposits are carried out in the London interbank
market.
“Capital Expenditures”
means, for any period with respect to any Person, all expenditures made by such Person during such period that, in accordance with
GAAP, should be classified as a capital expenditure including, without limitation, the aggregate amount of Capital Lease Obligations
incurred during such period, provided that Capital Expenditures shall not include any amount of insurance proceeds that such Person
reinvests in the business of such Person, including investments in replacement assets.
“Capital Lease
Obligations” means, for any Person, all obligations of such Person to pay rent or other amounts under a lease of (or
other agreement conveying the right to use) Property to the extent such obligations are required to be classified and accounted
for as a capital lease on a balance sheet of such Person under GAAP, and, for purposes of this Agreement, the amount of such obligations
shall be the capitalized amount thereof, determined in accordance with GAAP.
“Capital Securities”
means any and all shares, interests, participations or other equivalents (however designated) of capital stock of a corporation,
all membership interests in a limited liability company, all partnership interests in a limited partnership, or any and all similar
ownership interests in a Person (other than a corporation, limited liability company or limited partnership) and any and all warrants,
rights or options to purchase any of the foregoing.
“Cash Collateral”
means cash in Dollars that has been transferred to the Collateral Account to secure repayment of the Obligations.
“Cash Collateralize”
means to pledge and deposit with or deliver to the Agent, for the benefit of the Agent and the Banks, Cash Collateral pursuant
to documentation in form and substance reasonably satisfactory to the Agent.
“Closing Date”
means the date on which this Agreement becomes effective pursuant to satisfaction or waiver (pursuant to Section 11.04 hereof)
of the conditions precedent set forth in Section 6.01.
“Code”
means the Internal Revenue Code of 1986, as amended from time to time.
“Collateral”
means the property over which a Lien has been granted to the Agent pursuant to the Security Documents.
“Collateral
Account” means a segregated collateral account or accounts maintained by the Agent on behalf of the Secured Parties,
which shall be under the sole dominion and control of, and a first priority perfected lien of (subject to the terms of the Intercreditor
Agreement), the Agent.
“Commitment”
means, as the context may require, the Revolving Loan Commitment or the Swing Line Commitment.
“Commitment
Period” means the period from the Closing Date to but not including the Revolving Credit Commitment Termination Date,
or such earlier date on which the Commitments shall terminate as provided herein.
“Commodity Exchange
Act” means the Commodity Exchange Act (7.U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.
“Communications”
has the meaning assigned to such term in Section 11.02(a) hereof.
“Company”
has the meaning assigned to such term in the preamble hereof.
“Compliance
Certificate” has the meaning assigned to such term in the last sentence of Section 8.01 hereof.
“Consolidated
Current Assets” means, at any time with respect to any Person, all assets of such Person and its Subsidiaries that, in
accordance with GAAP, could be classified as current assets on a consolidated balance sheet of such Person and its Subsidiaries
(other than investments in and receivables and other obligations from Subsidiaries, other Affiliates, officers, employees or directors
of such Person).
“Consolidated
Current Liabilities” means, at any time with respect to any Person, all liabilities of such Person and its Subsidiaries
that, in accordance with GAAP, could be classified as current liabilities on a consolidated balance sheet of such Person and its
Subsidiaries.
“Consolidated
Net Income” means, for any period, the net earnings (or loss) after taxes of the Company and its Subsidiaries on a consolidated
basis for such period taken as a single accounting period determined in conformity with GAAP.
“Continue”,
“Continuation” and “Continued” shall refer to the continuation pursuant to Section 2.10
hereof of a Eurodollar Loan from one Interest Period to the next Interest Period.
“Contract Rate”
has the meaning assigned to such term in Section 11.17(a) hereof.
“Convert”,
“Conversion” and “Converted” shall refer to a conversion pursuant to Section 2.10 hereof
of one Type of Loans into another Type of Loans, which may be accompanied by the transfer by a Bank (at its sole discretion) of
a Loan from one Applicable Lending Office to another.
“Convey”
means to convey, sell, lease, assign, transfer or otherwise dispose of Property. The terms “Conveyance” and “Conveyed”
shall have a correlative meaning.
“Credit Exposure”
means, at any time, the aggregate principal amount of all Loans and Letter of Credit Liabilities outstanding at such time. The
Credit Exposure of any Bank at any time shall be the sum of such Bank’s Revolving Loans and its Fronting Exposure at such
time.
“Credit Insured
Receivable” means the portion of any Receivable which is insured under a credit insurance policy (a) set forth on Schedule
V hereto, including any extensions or renewals thereof, or (b) that is reasonably acceptable to the Required Banks (under which
(in the case of clauses (a) and (b)) in the event of non-payment by the applicable account debtor, the credit insurer would be
obligated to pay the unpaid Receivable up to the limits set forth in such policy subject only to deductibles, co-insurance and
the applicable waiting periods under such policy and no other defenses, set-offs or deductions) issued by a credit insurer that
is reasonably acceptable to the Required Banks, and as to which the Agent is named as loss payee.
“Default”
means an Event of Default or any event or circumstance that solely with the giving of notice or lapse of time or both would become
an Event of Default.
“Defaulting
Bank” means: (a) a Bank that has defaulted on its obligation to fund Loans hereunder or make any other payment required
hereby for two (2) or more Business Days unless such Bank notifies the Agent and the Company in writing that such failure is the
result of such Bank’s determination that one or more conditions precedent to funding (each of which conditions precedent,
together with any applicable Default or Event of Default, shall be specifically identified in such writing) has not been satisfied;
(b) a Bank that has had an involuntary proceeding commenced or an involuntary petition filed seeking (i) liquidation, reorganization
or other relief in respect of such Bank or its parent or its or its parent’s debts, or of a substantial part of its or its
parent’s assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar Law now or hereafter
in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for such Bank
or its parent or for a substantial part of its or its parent’s assets; (c) a Bank that shall have or whose parent shall have
(i) voluntarily commenced any proceeding or filed any petition seeking liquidation, reorganization or other relief under any Federal,
state or foreign bankruptcy, insolvency, receivership or similar Law now or hereafter in effect, (ii) consented to the institution
of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (b) of this definition,
(iii) applied for or consented to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official
for it or a substantial part of its assets, (iv) filed an answer admitting the material allegations of a petition filed against
it in any such proceeding, (v) made a general assignment for the benefit of creditors or (vi) taken any action for the purpose
of effecting any of the foregoing; (d) a Bank that has, for two (2) or more Business Days, failed to confirm in writing to the
Agent, in response to a written request of the Agent or the Company, that it will comply with its funding obligations under this
Agreement unless such Bank notifies the Agent and the Company in writing that such failure is the result of such Bank’s determination
that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable Default or Event
of Default, shall be specifically identified in such writing) has not been satisfied; or (e) has notified the Agent or the Company,
or has made a public statement to the effect, that it does not intend to comply with its funding obligations under this Agreement,
or has defaulted on its obligation to fund generally under any other loan agreement, credit agreement or other financing agreement
in which it commits to extend credit (unless such writing or public statement relates to such Bank’s obligation to fund a
Loan hereunder and states that such position is based on such Bank’s determination that a condition precedent to funding
(which condition precedent, together with any applicable Default or Event of Default, shall be specifically identified in such
writing or public statement) cannot be satisfied); provided that a Bank shall not be a Defaulting Bank solely by virtue
of the ownership or acquisition of any equity interest in such Bank 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 Bank 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 Bank (or such
Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Bank.
“Defaulting
Bank Period” means any period during which a Bank shall be a Defaulting Bank.
“Deposit Obligations”
means all obligations, indebtedness, and liabilities of the Company or any Subsidiary, or any one of them, to any Bank or any Affiliate
of any Bank arising pursuant to any deposit, lock box, automated clearing house or cash management arrangements entered into by
any Bank or any Affiliate of any Bank with the Company or any Subsidiary, whether now existing or hereafter arising, whether direct,
indirect, related, unrelated, fixed, contingent, liquidated, unliquidated, joint, several, or joint and several, including the
obligation, indebtedness, and liabilities of the Company or any Subsidiary, or any one of them, to repay any credit extended in
connection with such arrangements, interest thereon, and all reasonable fees, costs, and expenses (including reasonable attorneys’
fees and expenses) provided for in the documentation executed in connection therewith. The term “Deposit Obligations”
includes any and all post-petition interest and expenses (including attorneys’ fees) whether or not allowed under any bankruptcy,
insolvency, or other similar Law.
“Dividend Payment”
means dividends (in cash, Property or obligations) on, or other payments or distributions on account of, or the setting apart of
money for a sinking or other analogous fund for, or the purchase, redemption, retirement or other acquisition of, any Capital Securities
of the Company or any of its Subsidiaries, but excluding dividends payable solely in shares of common stock of the Company.
“Dodd-Frank
Act” means the Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203, as amended from time to
time, and all rules, regulations, requests, guidelines or directives in connection therewith).
“Dollars”
and “$” means lawful money of the United States of America.
“Domestic Subsidiary”
has the meaning assigned to such term in Section 8.17.
“Eligible Inventory”
means, as at any date, the aggregate value of all Inventory (valued at the lower of cost (as determined using the specific identification
method) or market value in accordance with GAAP) which satisfies each of the following requirements:
(a) such
Inventory is owned by the Company as at such date, free and clear of all Liens, except for Permitted Borrowing Base Liens and Liens
permitted under Section 8.06(j) hereof,
(b) such
Inventory (i) in storage in the United States on the property of the Borrower, (ii) on an ocean-going vessel bound for the
United States of America, Canada, Latin America or other jurisdiction acceptable to the Agent, evidenced by either (x) non-negotiable
bills of lading the stated consignee of which is the Company or the Agent or (y) 3/3 on board negotiable bills of lading that have
been issued and duly negotiated to the Agent, or to order and blank endorsed and in the possession of the Agent, (iii) held
at a third party warehouse located in the United States (reasonably acceptable to the Agent, and is evidenced by documents of title,
whether negotiable or non-negotiable, and any such negotiable document of title shall have been issued and duly negotiated to the
Company or the Agent or to order, blank endorsed, and in the possession of the Company or the Agent, and any such non-negotiable
document of title shall have been issued in the name of and delivered to the Company or the Agent, (iv) held at a location
in the United States that is controlled by a third party (reasonably acceptable to the Agent) engaged in the business of storing
goods of others for hire (of the same type as Inventory) that does not issue either negotiable or non-negotiable documents of title
as long as the goods stored by such third party on behalf of the Company are readily identifiable to the Company in a manner reasonably
acceptable to the Agent; or (v) in transit in the United States (under the control of the Company) to or from a warehouse
or other storage facility controlled by the Company or of the type described in clause (iii) or (iv) of this clause (b),
(c) such
Inventory is subject to a perfected first priority Lien in favor of the Agent, subject to no other Liens other than (x) Permitted
Borrowing Base Liens and (y) the existence of Liens (subordinate to the Agent’s Liens) permitted under Section 8.06(j) hereof,
(d) such
Inventory meets all standards imposed by any Governmental Authority or agency, department or division thereof having regulatory
authority over such Inventory, its use or sale,
(e) in
respect of such Inventory either (i) (A) one or more customers of the Company has contracted to purchase such Inventory at a predetermined
fixed price under sales contracts entered into by the Company in the ordinary course of business and (B) upon such delivery an
Eligible Receivable will arise or (ii) such Inventory is hedged by futures contracts (in a manner acceptable to the Required Banks)
in a futures account maintained with a broker acceptable to the Agent, which is subject to the Agent’s first priority perfected
Lien (subject only to customary setoff rights of the applicable broker) and an Account Control Agreement,
(f)
such Inventory is insured as to casualty loss by an insurance company acceptable to the
Required Banks pursuant to an insurance policy acceptable to the Required Banks on which the Agent has been named additional
insured and loss payee,
(g) such
Inventory is not damaged, obsolete, slow moving or not currently saleable in the normal course of the Company’s operations,
(h) such
Inventory is not Inventory that the Company or the Company’s customer has returned, has attempted to return, is in the process
of returning or intends to return,
(i) such
Inventory has not been shipped or delivered to a customer on consignment, a sale or return basis, or on the basis of any similar
understanding,
(j) such
Inventory was acquired by the Company in the ordinary course of business from a non-Affiliate;
(k) such
Inventory has not given rise to an Eligible Receivable; and
(l) such
Inventory is not Inventory the Agent has otherwise deemed ineligible at any time and from time to time, such determination to be
made in the Agent’s judgment, in good faith and based on information which, in its judgment, supports such determination;
provided that (i) in no event shall the aggregate amount of
the Eligible Inventory included in the Borrowing Base at any time exceed an amount equal to 65% of the Borrowing Base and (ii)
if at any time and from time to time the Agent shall determine a warehouse or storage location unacceptable (in its reasonable
discretion) and the Agent shall deliver notice thereof to the Company, (x) any Inventory located at such facility on (or received
by such facility within 14 days after) the date of delivery by the Agent of such notice shall be included as Eligible Inventory
(to the extent such Inventory otherwise qualifies as Eligible Inventory) for not more than 120 days after the date of delivery
of such notice and (y) no Inventory initially received at such facility after the date which is 14 days after the date of delivery
by the Agent of such notice shall be Eligible Inventory until located at a storage facility reasonably acceptable to the Agent.
“Eligible Inventory
Ordered Under L/C” means, as at any date, the aggregate purchase price payable for Inventory (not otherwise included
in the Borrowing Base): (a) that the Company has contracted to purchase pursuant to a purchase contract in which the Agent
has a first priority perfected Lien (subject to the terms of the Intercreditor Agreement); (b) the purchase price of which
is supported by a commercial Letter of Credit issued by the applicable Issuing Bank; (c) that is to be delivered to the Company
prior to the Revolving Credit Commitment Termination Date; and (d) that, upon receipt by the Company and payment under the
Letter of Credit, will constitute Eligible Inventory.
“Eligible Net
Liquidating Value in Brokerage Accounts” means, as of any date of determination, the aggregate amount of the “net
liquidating value” or “net equity” (however designated) or amount that would be available for withdrawal upon
closing such accounts and liquidation of all open positions at current market values as reported in the most recent account statements
for the relevant account in all commodities accounts of the Company held with commodity intermediaries acceptable to the Agent
in which the Agent has been granted a perfected Lien and which is subject to the execution and delivery of one or more Account
Control Agreements among the Agent, the Company and the applicable commodity intermediaries and that is free and clear of any other
Liens other than customary Liens in favor of the applicable commodity intermediary securing obligations arising in connection with
the operation of such commodity account in the ordinary course.
“Eligible Receivables”
means, as at any date, the aggregate amount of all Receivables at such date payable to the Company, other than the following (determined
without duplication):
(a) any
Receivable payable in a currency other than a Permitted Currency;
(b) any
Receivable due from an account debtor whose principal place of business is (i) located in Australia or (ii) otherwise not located
in the United States of America, Canada or Latin America and with respect to this clause (ii) only, which are not: (A) backed
by a bank letter of credit naming the Agent as beneficiary or assigned to the Agent, in the Agent’s possession and acceptable
to the Agent in all respects, such determination to be made in the Agent’s judgment and in good faith or (B) covered by a
foreign receivables insurance policy acceptable to the Agent (on which the Agent shall have been named loss-payee), such determination
to be made in the Agent’s judgment and in good faith,
(c) any
Receivable owing from an Affiliate of the Company,
(d) any
Receivable owing from an account debtor that the Required Banks (through the Agent) have notified the Company does not have a satisfactory
credit standing (as determined by the Required Banks, such determination to be made in each of their respective judgments, in good
faith and based on information which, in their respective judgments, supports such determination),
(e) any
Receivable that remains unpaid for more than 60 days after the original due date thereof,
(f)
all Receivables of any account debtor if more than 50% of the aggregate amount of the Receivables
owing to the Company from such account debtor shall at the time have remained unpaid and outstanding for more than 60 days
after the original due date thereof,
(g) any
Receivable as to which there is any unresolved dispute with the respective account debtor or which is subject to any offset, counterclaim,
reduction or other claim or defense on the part of the account debtor or to any claim on the part of the account debtor denying
payment liability under such Receivable (including, without limitation, the amount of all liabilities and obligations of the Company
to the account debtor and mark-to-market losses on forward, derivative or other contracts with such account debtor) (but only to
the extent of the amount thereof in dispute or the amount subject to offset, counterclaim, reduction or other claim or defense),
(h) any
Receivable evidenced by an Instrument or Chattel Paper (as such terms are defined in the UCC) not in the possession of the Agent,
(i)
any Receivable representing an obligation for goods sold on consignment, approval or a sale-or-return basis
or subject to any other repurchase or return arrangement,
(j)
any Receivable that is payable more than 120 days after the date of the original invoice therefor,
provided that Receivables owing from account debtors organized or located in Brazil which are payable up to 180 days after
the date of the original invoice therefor shall not be excluded from Eligible Receivables under this clause (j) so long as
such Receivables are Credit Insured Receivables, provided, further, that additional Receivables that have a due
date of greater than 120 days after the date of the original invoice therefor in an aggregate amount not to exceed $6,500,000
at any time shall not be excluded from Eligible Receivables under this clause (j) so long as such Receivables are Credit
Insured Receivables,
(k) any
Receivable owed by any Governmental Authority, whether foreign or domestic (provided, however, that there shall be included in
Eligible Receivables that portion of Receivable owed by such Governmental Authority for which the Company has provided evidence
satisfactory to the Agent (including, without limitation, that all necessary actions have been taken under any applicable Assignment
of Claims Act) that (i) the Agent has a security interest in such Receivable and (ii) such Receivable may be enforced by the Agent
against such Governmental Authority),
(l)
any Receivable that has arisen in a transaction in which the Customer’s obligations have been subcontracted
to a third party or is assured by a performance, completion or other bond,
(m) any
Receivable with respect to which the Agent does not have a first priority, perfected Lien on behalf of the Banks (subject only
to Permitted Borrowing Base Liens) or which is subject to any other Lien (other than Permitted Borrowing Base Liens and Liens (subordinate
to the Agent’s Liens) permitted under Section 8.06(j) hereof),
(n) any
Receivable which shall not be the valid, legally enforceable and binding obligation of the applicable account debtor,
(o) any
Receivable not evidenced by an invoice which shall have been issued to the applicable account debtor,
(p) any
Receivable which does not comply in all material respects with all applicable Laws to which such Receivable and the Company are
subject,
(q) any
Receivable, the account debtor of which is insolvent or a debtor under chapter 11 of the United States Bankruptcy Code (a “Chapter
11 Debtor”) or any other proceeding, whether voluntary or involuntary, under any bankruptcy, reorganization, arrangement,
insolvency, adjustment of debt, dissolution, liquidation or similar law of any jurisdiction, and
(r)
any Receivable not arising from the purchase of Inventory in an arm’s length bona
fide transaction conducted in the ordinary course of business in compliance with all applicable Laws.
“Eligible Unsold
Inventory” means Inventory which is not Eligible Inventory that, but for the failure to satisfy clause (e) of the definition
of “Eligible Inventory”, would qualify as Eligible Inventory, valued at the lower of cost (as determined using the
specific identification method) or market in accordance with GAAP; provided that in no event shall the aggregate amount of such
Eligible Unsold Inventory (including, without limitation, stainless steel) included in the Borrowing Base at any time exceed $6,500,000
(after giving effect to the applicable advance rate) and in no event shall the aggregate amount of Eligible Unsold Inventory included
in the Borrowing Base at any time which is stainless steel exceed $5,000,000 (after giving effect to the applicable advance rate),
plus
“Environmental
Laws” means any and all legally binding Laws concerning the environment or the protection of health and safety with respect
to exposure to contamination or pollution in the environment which are in existence now or in the future and are binding at any
time on the Company or any of its Subsidiaries in the relevant jurisdiction in which the Company or any Subsidiary has been or
is operating (including by the export of its products or its waste to that jurisdiction).
“Environmental
Permits” means any permit, license, consent, approval, registration and other authorization required under any Environmental
Law for the operation of the business of the Company or any of its Subsidiaries conducted on or from the properties owned or operated
by the Company or such Subsidiary.
“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time to time.
“ERISA Affiliate”
means any trade or business that is a member of any group of organizations (i) described in Section 414(b) or (c) of the Code
of which the Company is a member and (ii) solely for purposes of potential liability under Section 302 of ERISA and Section 412(c)
of the Code and the lien created under Section 303(k) of ERISA and Section 430(k) of the Code, described in Section 414(m)
or (o) of the Code of which the Company is a member.
“Eurodollar
Base Rate” means, with respect to any Eurodollar Loan for any Interest Period therefor, the rate of interest per annum
equal to the London interbank offered rate as administered by the ICE Benchmark Administration (or any other Person that takes
over the administration of such rate) for deposits in Dollars with a term equivalent to such Interest Period as displayed on the
Reuters screen page that displays such rate (currently page LIBOR01) (or, in the event such rate does not appear on a Reuters page
or screen, on the appropriate page of such other information service that publishes such rate as shall be selected by the Agent
from time to time in its reasonable discretion) as of 11:00 a.m., London time, two (2) Business Days prior to the commencement
of such Interest Period (but in respect of the Eurodollar Rate as that term is used in the definition of the term “Base Rate”,
as of 11:00 a.m., London time, on the day of determination thereof or if such day is not a Business Day on the immediately preceding
Business Day (the rate determined pursuant to this sentence, herein the “Page Rate”); provided that in the event that
the Page Rate is not available at such time for any reason, the “Eurodollar Base Rate” for the purposes of this definition
shall instead be the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) offered to Rabobank or one of its
Affiliates at approximately 11:00 a.m. London time (or as soon thereafter as practicable) two Business Days prior to the first
day of such Interest Period (but in respect of the Eurodollar Rate as that term is used in the definition of the term “Base
Rate”, as of 11:00 a.m., London time, on the day of determination thereof) or if such day is not a Business Day on the immediately
preceding Business Day by leading banks in the London interbank market of Dollar deposits in immediately available funds having
a term comparable to such Interest Period.
“Eurodollar
Loans” means Loans that bear interest at rates based on rates referred to in the definition of “Eurodollar Base
Rate” in this Section 1.01.
“Eurodollar
Rate” means, for any Eurodollar Loan for any Interest Period therefor, a rate per annum (rounded upwards, if necessary,
to the nearest 1/100 of 1%) determined by the Agent to be equal to the Eurodollar Base Rate for such Loan for such Interest Period
divided by 1 minus the Reserve Requirement (if any) for such Loan for such Interest Period.
“Event of Default”
has the meaning assigned to such term in Section 9 hereof.
“Excluded Swap
Obligations” means, with respect to any Obligor, any Swap Obligation if, and to the extent that, all or a portion of
the guarantee of such Obligor of, or the grant by such Obligor 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 of any thereof) by virtue of such Obligor’s failure for any reason
to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder
at the time the guarantee of such Obligor or the grant of such security interest becomes effective with respect to such Swap Obligation.
If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion
of such Swap Obligation that is attributable to swaps for which such guarantee or security interest is or becomes illegal under
the Commodity Exchange Act or any rule, regulation or order of the U.S. Commodity Futures Trading Commission or the application
or official interpretation thereof.
“Excluded Taxes”
means, with respect to the Agent, any Bank or any other recipient of any payment to be made by or on account of any obligation
of any Obligor hereunder: (a) taxes imposed on or measured by its overall net income (however denominated) by the jurisdiction
(or any political subdivision thereof) under the Laws of which such recipient is organized or in which its principal office is
located or, in the case of any Bank, in which its Applicable Lending Office is located; (b) any branch profits taxes imposed by
the United States of America or any similar tax imposed by any other jurisdiction in which the applicable Obligor is located, (c)
in the case of a Foreign Bank any withholding tax that is imposed on amounts payable to such Foreign Bank at the time such Foreign
Bank becomes a party to this Agreement (or designates a new lending office) or is attributable to such Foreign Bank’s failure
(or inability) to comply with Section 5.06(e), except to the extent that such Foreign Bank’s assignor (if any) was entitled,
at the time of assignment, to receive additional amounts from the Company with respect to such withholding tax pursuant to Section
5.06, (d) any backup withholding Tax that is required by the Code to be withheld from amounts payable to a Bank because of its
failure to comply with Section 5.06 hereof, and (e) any Taxes imposed on any “withholdable payment” as a result
of the failure of a recipient to satisfy the applicable requirements as set forth in FATCA after December 31, 2012.
“Executive Order”
has the meaning assigned to such term in Section 7.16 hereof.
“Existing Credit
Agreement” has the meaning assigned to such term in the first Recital to this Agreement.
“Existing Loan
Documents” has the meaning assigned to such term in Section 11.22 hereof.
“FATCA”
means Sections 1471 through 1474 of the Code, as in effect on the date hereof, including any amendments made thereto after the
date of this Agreement, and any current or future regulations or official interpretations thereof.
“Federal Funds
Rate” means, for any day, the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) equal to the
weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day, provided
that (a) if the day for which such rate is to be determined is not a Business Day, the Federal Funds Rate for such day shall
be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day and (b) if
such rate is not so published for any Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the
quotations for such day for such transactions received by Rabobank from three Federal funds brokers of recognized standing selected
by it.
“Foreign Bank”
means any Bank that is not a “United States person”, as defined under Section 7701(a)(30) of the Code.
“Fronting Banks”
means the Swing Line Bank and the Issuing Banks.
“Fronting Exposure”
means, at any time, the aggregate principal amount of all Swing Line Loans and Letter of Credit Liabilities outstanding at such
time. The Fronting Exposure of any Bank at any time shall be its Revolving Loan Commitment Percentage of the total Fronting Exposure
at such time.
“GAAP”
means generally accepted accounting principles in the United States of America.
“Governing Documents”
means, with respect to a: (a) corporation, its articles or certificate of incorporation and bylaws, (b) limited partnership, its
certificate of limited partnership and limited partnership agreement, (c) limited liability company, its certificate of formation
and limited liability company or operating agreement and (d) any other Person, the other organizational or governing documents
of such Person and, in each case, any other organizational or governing documents, as applicable.
“Governmental
Authority” means any nation or government, any state or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.
“Guarantee”
means a guarantee, an endorsement, a contingent agreement to purchase or to furnish funds for the payment or maintenance of, or
otherwise to be or become contingently liable under or with respect to, the Indebtedness, other obligations, net worth, working
capital or earnings of any Person, or a guarantee of the payment of dividends or other distributions upon the Capital Securities
of any Person, or an agreement to purchase, sell or lease (as lessee or lessor) Property, products, materials, supplies or services
primarily for the purpose of enabling a debtor to make payment of such debtor’s obligations or an agreement to assure a creditor
against loss, and including causing a bank or other financial institution to issue a letter of credit or other similar instrument
for the benefit of another Person, but excluding endorsements for collection or deposit in the ordinary course of business. The
terms “Guarantee” and “Guaranteed” used as a verb has a correlative meaning.
“Guarantors”
means each Subsidiary of the Company that executes and delivers a Subsidiary Guarantee.
“Hedging Agreement”
means any interest rate protection agreement, foreign currency exchange agreement, commodity price protection agreement or other
interest or currency exchange rate or commodity price hedging arrangement or any other similar transaction governed by an ISDA
Master Agreement.
“Hedging Obligations”
means all net obligations, indebtedness, and liabilities of the Company or any Subsidiary, or any one of them, to any Bank or an
Affiliate of a Bank (or any Person which was a Bank or an Affiliate of a Bank at the time such Person entered into the applicable
Hedging Agreement), arising pursuant to any Hedging Agreements entered into by such Bank, Affiliate or other Person (while such
other Person was a Bank or an Affiliate thereof) with the Company or any Subsidiary, or any one of them, whether now existing or
hereafter arising, whether direct, indirect, related, unrelated, fixed, contingent, liquidated, unliquidated, joint, several, or
joint and several, including all fees, costs, and expenses (including attorneys’ fees and expenses) provided for in such
Hedging Agreements. The term “Hedging Obligations” includes any and all post-petition interest and expenses (including
attorneys’ fees) whether or not allowed under any bankruptcy, insolvency, or other similar Law.
“Imbali Facility”
means Indebtedness of Imbali Metals Bvba consisting of a revolving working capital facility provided by ING Belgium S.A./N.V.,
in a principal amount not to exceed €10,000,000 at any one time outstanding, and any extensions, renewals, refinancing and
replacements of any such facility that do not increase the outstanding principal amount thereof or result in an earlier maturity
date thereof.
“Imbali Guarantee”
means a Guarantee by the Company of the Imbali Facility, which Guarantee shall be subordinated to the Obligations pursuant to the
Subordination Agreement.
“Increase Amount”
has the meaning assigned to such term in Section 2.05 hereof.
“Increase and
New Bank Agreement” means an Increase and New Bank Agreement substantially in the form of Exhibit F hereto.
“Indebtedness”
means, for any Person: (a) obligations created, issued or incurred by such Person for borrowed money (whether by loan, the issuance
and sale of debt securities or the sale of Property to another Person subject to an understanding or agreement, contingent or otherwise,
to repurchase such Property from such Person), and any other indebtedness of such Person which is evidenced by a note, bond, debenture
or similar instrument; (b) obligations of such Person to pay the deferred purchase or acquisition price of Property or services,
other than trade accounts payable (other than for borrowed money) arising, and accrued expenses incurred, in the ordinary course
of business so long as such trade accounts payable are payable within 90 days of the date the respective goods are delivered or
the respective services are rendered; (c) Indebtedness of others secured by a Lien on the Property of such Person, whether or not
the respective indebtedness so secured has been assumed by such Person; (d) obligations of such Person in respect of letters of
credit or similar instruments issued or accepted by banks and other financial institutions for account of such Person; (e) Capital
Lease Obligations of such Person; (f) Indebtedness of others Guaranteed by such Person; (g) obligations under Hedging Agreements;
and (h) obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of preferred Capital
Securities of such Person. The amount of any Indebtedness under clause (c) shall be equal to the lesser of (A) the stated amount
of the relevant obligations and (B) the fair market value of the property subject to the relevant Lien.
“Indemnified
Taxes” means Taxes other than Excluded Taxes.
“Interest Period”
means, with respect to any Eurodollar Loan, each period commencing on the date such Eurodollar Loan is made or Converted from a
Base Rate Loan or the last day of the next preceding Interest Period for such Loan and ending on the numerically corresponding
day in the first week or first, second or third calendar month thereafter, as the Company may select as provided in Section 4.05
hereof, except that (i) each Interest Period that commences on the last Business Day of a calendar month (or on any day for which
there is no numerically corresponding day in the appropriate subsequent calendar month) shall end on the last Business Day of the
appropriate subsequent calendar month and (ii) no Interest Period shall extend beyond the Revolving Credit Commitment Termination
Date.
Notwithstanding the foregoing, each
Interest Period that would otherwise end on a day that is not a Business Day shall end on the next succeeding Business Day (or,
in respect of an Interest Period other than one week, if such next succeeding Business Day falls in the next succeeding calendar
month, on the next preceding Business Day).
“Intercreditor
Agreement” means the Intercreditor Agreement dated as of the date hereof, substantially in the form of Exhibit M hereto,
between the Agent and the Uncommitted Facility Agent, as the same shall be amended, supplemented or otherwise modified from time
to time.
“Interim Borrowing
Base Certificate” means a report certified by the chief financial officer or other authorized officer of the Company,
substantially in the form of Exhibit B, with appropriate insertions and schedules, showing the Borrowing Base as of the
date set forth therein after giving effect to the credit extensions requested in relation to such Interim Borrowing Base Certificate.
“Inventory”
means the Company’s semi-finished aluminum and steel products and aluminum billets and other similar metals products approved
by the Required Banks.
“Investment”
means, for any Person: (a) the acquisition (whether for cash, Property, services or securities or otherwise) of capital stock,
bonds, notes, debentures, partnership or other ownership interests or other securities of any other Person or any agreement to
make any such acquisition (including any “short sale” or any sale of any securities at a time when such securities
are not owned by the Person entering into such sale); (b) the making of any deposit with, or advance, loan or other extension
of credit to, any other Person (including the purchase of Property from another Person subject to an understanding or agreement,
contingent or otherwise, to resell such Property to such Person), but excluding any such advance, loan or extension of credit having
a term not exceeding 90 days representing the purchase price of inventory or supplies sold by such Person in the ordinary course
of business; (c) the entering into of any Guarantee of, or other contingent obligation with respect to, Indebtedness or other
liability of any other Person and (without duplication) any amount committed to be advanced, loaned or extended to such Person;
or (d) the entering into of any Hedging Agreement.
“Investment
Grade” means, with respect to any Person as of any date of determination, the long term senior unsecured non-credit enhanced
credit rating of such Person is BBB- or higher by S&P or Baa3 or higher by Moody’s.
“Issuance Cap”
means, with respect to the obligation of an Issuing Bank to issue any Letter of Credit under this Agreement, the maximum permitted
aggregate outstanding amount of Letter of Credit Liabilities attributable to Letters of Credit issued by such Issuing Bank, as
shall be agreed upon by each Issuing Bank, the Company and the Agent in writing upon any new Issuing Bank becoming an Issuing Bank,
as such agreement may be amended, modified or supplemented from time to time by the parties thereto. As of the Closing Date, Rabobank
has an Issuance Cap in an amount equal to $75,000,000. The Issuance Cap for Rabobank shall be reduced, in its sole discretion,
by all or any part of the amount of the Issuance Cap of each new Issuing Bank, on the date such new Issuing Bank shall become an
Issuing Bank.
“Issuing Bank”
means Rabobank in its capacity as the issuer of Letters of Credit hereunder, and its successors in such capacity. The Company may,
in its discretion, arrange for one or more Letters of Credit to be issued by any other Bank, in which case the term Issuing Bank
shall include any such Bank with respect to Letters of Credit issued by such Bank. Each Issuing Bank may, in its discretion,
arrange for one or more Letters of Credit to be issued by Affiliates of the applicable Issuing Bank, in which case the term Issuing
Bank shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate, together with its
successors and assigns in such capacity.
“ISP”
means International Standby Practices ISP98, International Chamber of Commerce Publication No. 590, as from time to time amended,
modified and replaced.
“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, licenses, authorizations and permits of, and agreements with, any Governmental Authority.
“L/C Cap”
has the meaning assigned to such term in Section 2.03 hereof.
“Letter of Credit”
has the meaning assigned to such term in Section 2.03 hereof.
“Letter of Credit
Documents” means, with respect to any Letter of Credit, collectively, any application therefor and any other agreements,
instruments, guarantees or other documents (whether general in application or applicable only to such Letter of Credit) governing
or providing for (a) the rights and obligations of the parties concerned or at risk with respect to such Letter of Credit
or (b) any collateral security for any of such obligations, each as the same may be amended, supplemented or otherwise modified
and in effect from time to time.
“Letter of Credit
Interest” means for each Bank, such Bank’s participation interest (or, in the case of the applicable Issuing Bank,
such Issuing Bank’s retained interest) in the applicable Issuing Bank’s liability under Letters of Credit and such
Bank’s rights and interests in Reimbursement Obligations and fees, interest and other amounts payable in connection with
Letters of Credit and Reimbursement Obligations.
“Letter of Credit
Liability” means, without duplication, at any time and in respect of any Letter of Credit, the sum of (a) the undrawn
face amount of such Letter of Credit plus (b) the aggregate unpaid principal amount of all Reimbursement Obligations
of the Company at such time due and payable in respect of all drawings made under such Letter of Credit.
“Leverage Ratio”
means, at any time, the ratio of (a) Total Liabilities at such time minus the amount of Subordinated Debt at such time to
(b) Tangible Net Worth of the Company at such time.
“Lien”
means, with respect to any Property, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect
of such Property. For purposes of this Agreement and the other Basic Documents, a Person shall be deemed to own subject to a Lien
any Property that it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement,
capital lease or other title retention agreement (other than an operating lease) relating to such Property.
“Loan Obligations”
means all obligations, indebtedness, and liabilities of the Company or any Subsidiary, or any one of them, to the Agent and the
Banks arising pursuant to any of the Basic Documents, whether now existing or hereafter arising, whether direct, indirect, related,
unrelated, fixed, contingent, liquidated, unliquidated, joint, several, or joint and several, including the obligation of the Company
or any Subsidiary to repay the Loans, the Letter of Credit Liabilities, interest on the Loans and Letter of Credit Liabilities,
and all reasonable fees, costs, and expenses (including reasonable attorneys’ fees and expenses) provided for in the Basic
Documents. The term “Loan Obligations” includes any and all post-petition interest and expenses (including attorneys’
fees) whether or not allowed under any bankruptcy, insolvency, or other similar Law.
“Loans”
means, as the context may require, a Revolving Loan or a Swing Line Loan of any Type.
“Margin Stock”
means “margin stock” within the meaning of Regulation T or U.
“Material Adverse
Effect” means a material adverse effect on (a) the Property, business, operations, financial condition, prospects,
liabilities or capitalization of the Company and its Subsidiaries (on a consolidated basis), (b) the ability of the Company
or any of its Subsidiaries to perform its obligations under any of the Basic Documents to which it is a party, (c) the validity
or enforceability of any of the Basic Documents, (d) the rights and remedies of the Banks and the Agent under any of the Basic
Documents or (e) the timely payment of the principal of or interest on the Loans or the Reimbursement Obligations or other
amounts payable in connection therewith.
“Material Indebtedness”
has the meaning assigned to such term in Section 9.01(b) hereof.
“Materials of
Environmental Concern” means any gasoline or petroleum (including crude oil or any fraction thereof) or petroleum products
or any hazardous or toxic substances, materials or wastes, defined or regulated as such in or under, or which form the basis of
liability under, any Environmental Law, including, without limitation, asbestos, polychlorinated biphenyls and urea-formaldehyde
insulation, medical waste, radioactive materials and electromagnetic fields.
“Maximum Rate”
has the meaning assigned to such term in Section 11.17(a) hereof.
“Moody’s”
means Moody’s Investors Service, Inc., or any successor to its rating agency business.
“Multiemployer
Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which the Company or any
ERISA Affiliate makes or is obligated to make contributions.
“Net Working
Capital” means as of any date of determination with respect to any Person, an amount equal to the excess of (i) Consolidated
Current Assets of such Person and its Subsidiaries over (ii) Consolidated Current Liabilities of such Person and its Subsidiaries
as at such date.
“New Bank”
has the meaning assigned to such term in Section 2.05 hereof.
“New Closing
Banks” means the undersigned Banks which were not parties to the Existing Credit Agreement.
“Non-Renewal
Notice Date” has the meaning assigned to such term in Section 2.03(o) hereof.
“Notes”
means the promissory notes in substantially the form of Exhibit A hereto provided for by Section 2.09 hereof and all promissory
notes delivered in substitution or exchange therefor, in each case as the same shall be amended, supplemented or otherwise modified
and in effect from time to time.
“Obligations”
means all Loan Obligations, the Hedging Obligations and all Deposit Obligations.
“Obligor Accounts”
has the meaning assigned to such term in Section 10.14 hereof.
“Obligors”
means, collectively, the Company and the Guarantors.
“OFAC”
has the meaning assigned to such term in Section 7.16 hereof.
“Other Taxes”
means any and all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies
arising from any payment made hereunder or under any other Basic Document or from the execution, delivery or enforcement of, or
otherwise with respect to, this Agreement or any other Basic Document.
“Participant”
has the meaning assigned to such term in Section 11.06(d) hereof.
“Payor”
has the meaning assigned to such term in Section 4.06 hereof.
“PBGC”
means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its functions under ERISA.
“Permitted Borrowing
Base Liens” means Liens permitted under clauses (b) and (c) of Section 8.06 hereof.
“Permitted Currency”
means Dollars, Canadian dollars, Euros, Australian dollars and New Zealand dollars, provided, that for purposes of clause
(a) of the definition of “Eligible Receivables”, Permitted Currency shall not include Australian dollars.
“Permitted Investments”
means: (a) direct obligations of the United States of America, or of any agency thereof, or obligations guaranteed as to principal
and interest by the United States of America, or of any agency thereof, in either case maturing not more than 90 days from the
date of acquisition thereof; (b) certificates of deposit issued by any bank or trust company organized under the Laws of the
United States of America or any state thereof and having capital, surplus and undivided profits of at least $500,000,000, maturing
not more than 90 days from the date of acquisition thereof; (c) commercial paper rated A-1 or better or P-1 by S&P or
Moody’s, respectively, maturing not more than 90 days from the date of acquisition thereof; (d) municipal bonds with a credit
rating acceptable to the Required Banks; (e) loans or advances to employees made in the ordinary course of business in an aggregate
principal amount outstanding at any time not to exceed $100,000; (f) stock, obligations or securities received in settlement of
debts created in the ordinary course of business and owing to an Obligor or in satisfaction of judgments, including pursuant to
any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of any trade creditor or customer; (g) consideration
received in connection with any asset sale or other disposition permitted under this Agreement; (h) any acquisition of assets solely
in exchange for the issuance of Capital Securities of the Company; and (i) all cash held in deposit accounts subject to an Account
Control Agreement.
“Person”
means any individual, corporation, company, limited liability company, voluntary association, partnership, joint venture, trust,
unincorporated organization or government (or any agency, instrumentality or political subdivision thereof).
“Platform”
has the meaning assigned to such term in Section 11.02(a) hereof.
“Plan”
means an employee benefit or other plan established or maintained by the Company or any ERISA Affiliate and that is covered by
Section 412 of the Code or Title IV of ERISA, other than a Multiemployer Plan, or to which the Company or any ERISA Affiliate contributes
or has an obligation to contribute, or in the case of a multiple employer plan described in Section 4064(a) of ERISA, has made
contributions at any time during the preceding five plan years.
“Pledged Cash”
means deposit accounts maintained at any bank or trust company organized or licensed under the Laws of the United States of America
or any state thereof and having capital, surplus and undivided profits of at least $500,000,000 which are subject to Account Control
Agreements in favor of the Agent and are otherwise subject to a first priority, perfected security interest in favor of the Agent
and are free and clear of liens of third persons (other than customary netting and setoff rights, bankers’ liens and the
like in favor of such bank or trust company).
“Post-Default
Rate” means a rate per annum equal to 2% plus the Base Rate as in effect from time to time plus the Applicable
Margin for Base Rate Loans, provided that, if the amount with respect to which interest at the Post-Default Rate is payable
is principal of a Eurodollar Loan and the due date thereof is a day other than the last day of the Interest Period therefor, the
“Post-Default Rate” for such principal shall be, for the period from and including such due date to but excluding the
last day of such Interest Period, 2% plus the interest rate for such Loan as provided in Section 3.02(a)(ii) hereof
and, thereafter, the rate provided for above in this definition.
“Principal Shareholders”
means Nathan S. Kahn and Sandra R. Kahn.
“Property”
means any right or interest in or to property of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible.
“Quad Avenue
Loan Agreement” means the Loan Agreement dated as of December 27, 2004 between 6900 Quad Avenue, LLC and JPMorgan
Chase Bank, N.A., as the same shall be amended, supplemented or otherwise modified and in effect from time to time.
“Quad Avenue
Subsidiary” means 6900 Quad Avenue, LLC, unless such Person owns any property (real or otherwise) other than the approximately
122,000 square foot warehouse located at 6900 Quad Avenue, Baltimore, Maryland.
“Quarterly Dates”
means the last Business Day of each March, June, September and December, the first of which shall be the first such day after the
date of this Agreement.
“Rabobank”
has the meaning set forth in the introductory paragraph herein.
“Receivables”
means, as at any date, the unpaid portion of the obligation, as stated on the respective invoice, of a customer of the Company
in respect of Inventory sold and shipped to such customer, net of any credits, rebates or offsets owed to such customer and also
net of any commissions payable to third parties (and for purposes hereof, a credit or rebate paid by check or draft of the Company
shall be deemed to be outstanding until such check or draft has been debited to the account of the Company) and net of any applicable
taxes including, without limitation, sales, excise and similar taxes.
“Register”
has the meaning set forth in Section 11.06(b) hereof.
“Regulations
D, T, U and X” means, respectively, Regulations D, T, U and X of the Board of Governors of the Federal Reserve System
(or any successor), as the same may be modified and supplemented and in effect from time to time.
“Regulatory
Change” means, with respect to any Bank, any change after the date of this Agreement in Federal, state or foreign Law
or regulations (including Regulation D) or the adoption or making after such date of any interpretation, directive or request applying
to a class of banks including such Bank of or under any Federal, state or foreign Law or regulations (whether or not having the
force of Law and whether or not failure to comply therewith would be unlawful) by any court or governmental or monetary authority
charged with the interpretation or administration thereof. The Dodd-Frank Act, Basel III and all requests, rules, guidelines, and
directives promulgated under any of the foregoing shall be deemed to be a “Regulatory Change “, regardless of the date
enacted or adopted.
“Reimbursement
Obligations” means, at any time, the obligations of the Company then outstanding to reimburse amounts paid by the applicable
Issuing Bank in respect of any drawings under a Letter of Credit.
“Relevant Properties”
has the meaning assigned to such term in Section 7.12 hereof.
“Requested Increase
Effective Date” has the meaning assigned to such term in Section 2.05 hereof.
“Required Banks”
means Banks having 51% of the aggregate amount of the Revolving Loan Commitments or, if the Revolving Loan Commitments have terminated,
Banks holding at least 51% of the aggregate amount of the Credit Exposure. If at the time of the calculation of the Required Banks,
one or more Defaulting Banks exists, the Credit Exposure and unused Revolving Loan Commitments of each Defaulting Bank shall be
excluded from both the numerator and denominator of the calculation.
“Required Payment”
has the meaning assigned to such term in Section 4.06 hereof.
“Requirement
of Law” means, as to any Person, any Law, treaty, rule or regulation or determination of an arbitrator or a court or
other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person
or any of its property is subject.
“Reserve Requirement”
means the average maximum rate at which reserves (including any marginal, supplemental or emergency reserves) are required to be
maintained under Regulation D by member banks of the Federal Reserve System in New York City with deposits exceeding one billion
Dollars against “Eurocurrency liabilities” (as such term is used in Regulation D). Without limiting the effect of the
foregoing, the Reserve Requirement shall include any other reserves required to be maintained by such member banks by reason of
any Regulatory Change with respect to (i) any category of liabilities that includes deposits by reference to which the Eurodollar
Base Rate is to be determined as provided in the definition of “Eurodollar Base Rate” in this Section 1.01 or
(ii) any category of extensions of credit or other assets that includes Eurodollar Loans.
“Revolving Credit
Commitment Termination Date” means June 19, 2017.
“Revolving Loan
Commitment” means, as to each Bank, the obligation of such Bank to make Loans and to acquire a participation in Letters
of Credit in an aggregate principal or face amount at any one time outstanding up to but not exceeding the amount set opposite
such Bank’s name under the caption “Commitment” on Schedule A attached hereto and incorporated herein by reference
(as the same may be reduced or increased from time to time pursuant to Section 2.05 hereof). As of June 19, 2014, the aggregate
amount of the Revolving Loan Commitments is $150,000,000.
“Revolving Loan
Commitment Percentage” means, with respect to any Bank and except as set forth in clause (b) below:
(a) the
ratio of (i) the amount of the Revolving Loan Commitment of such Bank to (ii) the aggregate amount of the Revolving Loan
Commitments of all of the Banks; provided that if at the time of the calculation one or more Defaulting Banks exists, the Revolving
Loan Commitment Percentages are subject to reallocation as provided in Section 4.12, and
(b) with
respect to any Bank in respect of any indemnity claim under Section 10.05 arising out of an action or omission of the Agent under
this Agreement, the ratio of (i) the amount of the Revolving Loan Commitment of such Bank to (ii) the aggregate amount
of the Revolving Loan Commitments of all of the Banks.
If the Revolving Loan Commitments have
terminated or expired, the Revolving Loan Commitment Percentage shall be determined based upon the Revolving Loan Commitments most
recently in effect, giving effect to any assignments.
“Revolving Loans”
means the Loans provided for in Section 2.01 hereof, which may be Base Rate Loans and/or Eurodollar Loans.
“S&P”
means Standard and Poor’s Ratings Services, or any successor to its rating agency business.
“Sanctioned
Person” has the meaning assigned to such term in Section 7.16 hereof.
“Secured Parties”
means the Agent, the Banks and each Affiliate of a Bank who is owed any portion of the Obligations.
“Security Agreement”
means the Amended and Restated Security Agreement among the Company, the Guarantors and the Agent, substantially in the form of
Exhibit C hereto, as the same shall be amended, supplemented or otherwise modified and in effect from time to time.
“Security Documents”
means, collectively, the Security Agreement, the Subsidiary Guarantee, the Share Pledge Agreement, all Uniform Commercial Code
financing statements required by this Agreement and the Security Agreement to be filed with respect to the security interests in
personal Property and fixtures created pursuant to the Security Agreement, and each other security agreement or other document
executed and delivered pursuant to the Security Agreement and the Share Pledge Agreement to secure any of the Obligations.
“Share Pledge
Agreement” means that certain Share Pledge Agreement dated April 28, 2011 between the Company and Rabobank (in its capacities
as Agent and as Uncommitted Facility Agent) pursuant to which the Company pledges 65% of the Capital Securities issued by Imbali
Metals Bvba, as the same shall be amended, supplemented or otherwise modified and in effect from time to time.
“Spot Rate”
means, for any Permitted Currency, the exchange rate published by The Wall Street Journal for the purchase of such Permitted
Currency with Dollars on the date that the foreign exchange computation is made, provided that the Company may obtain such rate
from another agency designated by the Company (and reasonably acceptable to the Agent) if a foreign exchange rate for such Permitted
Currency is not available from The Wall Street Journal at the time of determination.
“Subordination
Agreement” means that certain Subordination Agreement among the Company, the Agent and the lenders under the Imbali Facility
(or an agent on their behalf) dated as of April 28, 2011, as the same shall be amended, supplemented or otherwise modified and
in effect from time to time.
“Subordinated
Debt” means unsecured Indebtedness of the Company that is: (a) provided to the Company substantially on the terms
set forth on Exhibit K hereto or on such other or different terms as shall be acceptable to the Required Banks in their sole discretion,
(b) subordinated to the Obligations on terms outlined on Exhibit K or on such other or different subordination terms, as shall
be acceptable to the Required Banks in their sole discretion and (c) not guaranteed by any Obligor unless such guarantee is
subordinated to obligations of such Obligor under the Basic Documents on terms similar to those outlined on Exhibit K or on such
other or different subordination terms, as shall be acceptable to the Required Banks in their sole discretion. For the avoidance
of doubt, the Indebtedness of the Company under the Imbali Guarantee shall not constitute Subordinated Debt.
“Subsidiary”
means, with respect to any Person, any corporation, partnership or other entity of which at least a majority of the securities
or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or
other persons performing similar functions of such corporation, partnership or other entity (irrespective of whether or not at
the time securities or other ownership interests of any other class or classes of such corporation, partnership or other entity
has or might have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned or controlled
by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person.
“Subsidiary
Guarantee” means the Amended and Restated Subsidiary Guarantee in favor of the Agent, substantially in the form of Exhibit
D hereto as the same may be amended or otherwise modified from time to time.
“Swap Obligations”
means, with respect to any Obligor, 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.
“Swing Line
Bank” means, subject to the terms of this Agreement, Rabobank.
“Swing Line
Commitment” has the meaning assigned to such term in Section 2.01(c) hereof.
“Swing Line
Loan” has the meaning assigned to such term in Section 2.01(c) hereof.
“Tangible Net
Worth” means, as at any date for any Person, the sum for such Person (determined without duplication in accordance with
GAAP), of the following:
(a) the
amount of common stock; plus
(b) the
amount of surplus and retained earnings (or, in the case of a surplus or retained earnings deficit, minus the amount of
such deficit); plus
(c) accumulated
other comprehensive income; plus
(d) the
amount of any Subordinated Debt; minus
(e) the
sum of the following: (i) the aggregate amount of Investments by such Person, other than (x) Investments permitted under Section
8.08(e) hereof and (y) Permitted Investments plus (ii) to the extent not deducted in the calculation of Tangible Net Worth
under clause (i) above, Investments in and receivables and other obligations from Subsidiaries, other Affiliates, officers, employees
or directors of such Person plus (iii) the cost of treasury shares and the book value of all assets that should be classified
as intangibles (without duplication of deductions in respect of items already deducted in arriving at surplus and retained earnings)
but in any event including goodwill, minority interests, research and development costs, trademarks, trade names, copyrights, patents
and franchises, unamortized debt discount and expense, all reserves and any write-up in the book value of assets resulting from
a revaluation thereof subsequent to December 31, 2013.
“Taxes”
means any and all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges
imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.
“Tier I Eligible
Receivables” means, on any date, all Eligible Receivables that are: (a) owed by account debtors which are Investment
Grade, (b) Credit Insured Receivables, (c) fully supported by a letter for credit issued by a financial institution which
is Investment Grade or any other financial institution acceptable to the Required Banks or (d) otherwise approved by the Required
Banks as “Tier I Eligible Receivables”.
“Tier II Eligible
Receivables” means, on any date, all Eligible Receivables that are not Tier I Eligible Receivables (including, without
limitation, any portion of Eligible Receivables which, but for such amount being in excess of the applicable credit insurance limits,
would be Tier I Eligible Receivables), provided, that the aggregate amount of Tier II Eligible Receivables that are not
Credit Insured Receivables, owing from any one account debtor (and its Affiliates) included in the Borrowing Base at any time shall
not exceed $1,500,000 (per account debtor (and its Affiliates)), unless otherwise approved by the Required Banks, provided,
further, that the aggregate amount of Tier II Eligible Receivables included in the Borrowing Base at any time shall not
exceed $6,500,000 (after giving effect to the applicable advance rate), unless otherwise approved by the Required Banks.
“Total Liabilities”
means, as at any date, the sum, for the Company (determined without duplication in accordance with GAAP), of the following: (a) all
Indebtedness (including obligations of the Company and its consolidated Subsidiaries in respect of letters of credit or similar
instruments (whether drawn or undrawn) issued or accepted for account of such Person) and (b) all other liabilities of the
Company and its consolidated Subsidiaries that should be classified as liabilities on a balance sheet, including all reserves (other
than general contingency reserves), but excluding all deferred taxes and other deferred items.
“Type”
has the meaning assigned to such term in Section 1.03 hereof.
“UCC”
means the Uniform Commercial Code as adopted in the State of New York.
“UCP”
means the Uniform Customs and Practice for Documentary Credits (2007 Revision), International Chamber of Commerce Publication No.
600, as the same may be amended from time to time.
“Uncommitted
Credit Agreement” means the Uncommitted Credit Agreement dated as of the date hereof among the Borrower, the lenders
party thereto and the Uncommitted Facility Agent, as the same may be amended, supplemented or otherwise modified and in effect
from time to time.
“Uncommitted
Facility Agent” means Rabobank in its capacity as “Agent” under and as defined in the Uncommitted Credit
Agreement.
“U.S. Dollar
Equivalent” means, at any time, (a) as to any amount denominated in Dollars, the amount thereof at such
time and (b) as to any amount denominated in any other Permitted Currency, the equivalent amount in Dollars as determined by the
Company at such time on the basis of the Spot Rate for the purchase of Dollars with such Permitted Currency on the most recent
date of computation thereof.
1.02 Accounting
Terms and Determinations.
(a) GAAP
Consistently Applied. All calculations made for the purposes of determining compliance with this Agreement shall (except as
otherwise expressly provided herein) be made by application of GAAP. Except as otherwise expressly provided herein, all terms of
an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if
the Company notifies the Agent that the Company requests an amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the operation of such provision, regardless of whether
any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted
on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall
have been withdrawn or such provision amended in accordance herewith.
(b) No
Change to Fiscal Year. To enable the ready and consistent determination of compliance with the covenants set forth in Section 8
hereof, the Company will not change the last day of its fiscal year from December 31 of each year, or the last days of the first
three fiscal quarters in each of its fiscal years from March 31, June 30 and September 30 of each year, respectively.
(c) Financial
Covenants Determined on a Consolidated Basis. Any and all financial information delivered pursuant to Section 8.01(a)
and (b) shall be prepared on a consolidated basis for the Company and its Subsidiaries except as otherwise specifically required
thereby. Any and all calculations made hereunder for purposes of determining compliance with the financial covenants set forth
in Sections 8.09 through 8.11 shall be on a consolidated basis for the Company and its consolidated Subsidiaries.
(d) Terms
Generally. 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 (a) any definition of or reference to any agreement, instrument or other
document herein 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 other modifications set forth therein or
herein); (b) any reference herein to any Person shall be construed to include such Person’s permitted successors and assigns;
(c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed
to refer to this Agreement in its entirety and not to any particular provision hereof; (d) all references herein to Sections, Exhibits
and Schedules shall be construed to refer to Sections of, and Exhibits and Schedules to, this Agreement; (e) reference herein to
any Law or regulation shall be construed to include any amendment, replacement or other modification thereto; and (f) terms
that are used herein, defined in the UCC and not otherwise defined herein shall have the meanings provided for in the UCC.
1.03 Types
of Loans. Loans hereunder are distinguished by “Type”. The “Type” of a Loan refers to whether such
Loan is a Base Rate Loan or a Eurodollar Loan, each of which constitutes a Type.
Section
2.
Commitments, Loans, Notes and Prepayments.
2.01 Loans.
(a) Revolving
Loans. Each Bank severally agrees, on the terms and conditions of this Agreement, to make loans to the Company in Dollars during
the Commitment Period in an aggregate principal amount at any one time outstanding up to but not exceeding the amount of such Bank’s
Revolving Loan Commitment as in effect from time to time; provided that the aggregate amount of all Credit Exposure at any
one time outstanding shall not exceed the lesser of (x) the aggregate Revolving Loan Commitments as in effect from time to time
and (y) the Borrowing Base. Subject to the terms and conditions of this Agreement, during the Commitment Period the Company may
borrow, repay and reborrow under the Revolving Loan Commitments by means of Base Rate Loans and Eurodollar Loans and may Convert
one Type of Loan into Loans of another Type (as provided in Section 2.10 hereof) or Continue Loans of one Type as Loans of
the same Type (as provided in Section 2.10 hereof), provided that no more than ten separate Interest Periods in respect of
Eurodollar Loans may be outstanding at any one time.
(b) Intentionally
omitted.
(c) Swing
Line Commitment; Banks’ Participation. Subject to the terms and conditions of this Agreement, the Revolving Loan Commitments
may be utilized, upon the request of the Company to the Swing Line Bank, in addition to the Revolving Loans provided for by clause
(a) hereof, to make swing line loans (the “Swing Line Loans”) to the Company in Dollars during the Commitment
Period in an aggregate principal amount at any one time outstanding up to but not exceeding $10,000,000 (the “Swing Line
Commitment”). Subject to the terms and conditions of this Agreement, during such period the Company may borrow, repay
and reborrow Swing Line Loans, provided that the Swing Line Bank shall not make a Swing Line Loan to refinance an outstanding Swing
Line Loan. The Swing Line Bank shall not be permitted or required to make Swing Line Loans if, after giving effect thereto,
(i) the aggregate outstanding principal amount of all Swing Line Loans would exceed the then existing Swing Line Commitment or
(ii) unless otherwise agreed to by the Swing Line Bank, in its sole discretion, the sum of all Revolving Loans made by the Swing
Line Bank plus the Swing Line Bank’s Revolving Loan Commitment Percentage of the aggregate amount of all Swing Line
Loans and Letter of Credit Liabilities would exceed the Swing Line Bank’s then existing Revolving Loan Commitment; provided
that the aggregate amount of all Credit Exposure at any one time outstanding shall not exceed the lesser of (x) the aggregate Revolving
Loan Commitments as in effect from time to time and (y) the Borrowing Base.
(d) Repayment
of Swing Line Loans; Funding of Participations. If (i) any Swing Line Loan shall be outstanding for more than five consecutive
Business Days, (ii) any Swing Line Loan is or will be outstanding on a date when the Company requests that a Revolving Loan be
made, or (iii) any Default shall occur and be continuing, then each Bank (other than the Swing Line Bank) irrevocably agrees that
it will, at the request of the Swing Line Bank in its sole and absolute discretion, make a Revolving Loan (which shall initially
be funded as a Base Rate Loan) in an amount equal to such Bank’s Revolving Loan Commitment Percentage of the aggregate principal
amount of all such Swing Line Loans then outstanding (such outstanding Swing Line Loans hereinafter referred to as the “Refunded
Swing Line Loans”). On or before 2:00 p.m. New York time on the first Business Day following receipt by each Bank (other
than the Swing Line Bank) of a request to make Revolving Loans as provided in the preceding sentence, each Bank (other than the
Swing Line Bank) shall deposit in an account specified by the Swing Line Bank the amount so requested in same day funds and such
funds shall be applied by the Swing Line Bank to repay the Refunded Swing Line Loans. In connection with the Refunded Swing Line
Loans, the Swing Line Bank shall be deemed to have made Revolving Loans in an amount equal to the Swing Line Bank’s Revolving
Loan Commitment Percentage of the aggregate principal amount of the Refunded Swing Line Loans. Upon the making (or deemed making,
in the case of the Swing Line Bank) of any Revolving Loans pursuant to this paragraph, the amount so funded shall become an outstanding
Revolving Loan and shall no longer be owed as a Swing Line Loan. All interest payable with respect to any Revolving Loans made
(or deemed made, in the case of the Swing Line Bank) pursuant to this paragraph shall be appropriately adjusted to reflect the
period of time during which the Swing Line Bank had outstanding Swing Line Loans in respect of which such Revolving Loans were
made. Each Bank’s (other than the Swing Line Bank’s) obligation to make the Revolving Loans referred to in this paragraph
shall be absolute and unconditional and shall not be affected by any circumstance, including (i) any set-off, counterclaim, recoupment,
defense or other right which such Bank may have against the Swing Line Bank, any Obligor or any Person for any reason whatsoever;
(ii) the occurrence or continuation of any Default; (iii) any adverse change in the condition (financial or otherwise) of any Obligor;
(iv) the acceleration or maturity of the Loans or the termination of any Commitment after the making of any Swing Line Loan; (v)
any breach of any Basic Document by any Person; or (vi) any other circumstance, happening or event whatsoever, whether or not similar
to any of the foregoing; provided, that if as a result of the occurrence of any Event of Default described in clauses (f)
or (g) of Section 9 with respect to the Company, any Bank shall be prohibited or stayed from making any such Revolving Loan referred
to in this paragraph, the Swing Line Bank shall be deemed to have sold and transferred to each other Bank and each such other Bank
shall be deemed to have irrevocably and unconditionally purchased and received from the Swing Line Bank, without recourse or warranty,
an undivided interest and participation, to the extent of such other Bank’s Revolving Loan Commitment Percentage of the Swing
Line Loan so made and each such Bank shall immediately pay to the Swing Line Bank an amount equal to each Revolving Loan otherwise
required to be made by it pursuant to this Section in payment for such participation in the related Swing Line Loan purchased by
such Bank pursuant to this clause (d).
2.02 Borrowings.
The Company shall give the Agent notice of each borrowing hereunder pursuant to a Borrowing Request substantially in the form of
Exhibit I hereto as provided in Section 4.05 hereof, provided, however, notwithstanding Section 11.02(b)
hereof, an authorized officer of the Company may deliver to the Agent an unsigned Borrowing Request by email to fm.am.SyndicatedLoans@rabobank.com
(or such other email as the Agent may direct in writing) so long as (i) it has been confirmed promptly by Sandra Kahn (or another
authorized officer) by phone and (ii) the Company delivers to the Agent a duly signed copy thereof within five (5) Business Days
of the date such email is delivered to the Agent, provided, that without limiting the Company’s obligations under clause
(ii) above, if the signed copy shall not be received, each of the Agent and the Banks shall be authorized to rely on the unsigned
request (with the same force and effect as a signed request). The Agent shall promptly notify the Banks of the receipt of each
Borrowing Request (including, without limitation, any unsigned request confirmed by phone) received hereunder on the date of its
effective receipt of the same (including, receipt by email and phone confirmed). On the date specified for each borrowing hereunder
of Revolving Loans, each Bank shall, subject to the terms and conditions of this Agreement, make available its Revolving Loan Commitment
Percentage of the amount of such borrowing to the Agent by depositing the same, in immediately available funds, at an account maintained
by the Agent not later than 2:00 p.m., New York time. The amount so received by the Agent shall, subject to the terms and conditions
of this Agreement, be made available to the Company, by depositing the same, in immediately available funds, in an account of the
Company designated by the Company.
2.03 Letters
of Credit. Subject to the terms and conditions of this Agreement, the Revolving Loan Commitments may be utilized, upon the
request of the Company, in addition to the Revolving Loans and Swing Line Loans provided for by Section 2.01 hereof, by the
issuance by the Issuing Banks of letters of credit (collectively, “Letters of Credit”) for account of the Company,
provided that in no event shall: (i) the aggregate amount of all Credit Exposure exceed the lesser of (x) the Borrowing
Base plus, with respect to any commercial Letter of Credit to be issued to secure the purchase price of Inventory, 80% of the cost
of such Inventory that will be Eligible Inventory Ordered Under L/C once such Letter of Credit is issued, and (y) the aggregate
amount of the Revolving Loan Commitments as in effect from time to time, (ii) the outstanding aggregate amount of all Letter
of Credit Liabilities exceed $75,000,000 (the “L/C Cap”), (iii) the outstanding aggregate amount of all
Letter of Credit Liabilities arising out of standby Letters of Credit exceed $6,500,000, and (iv) the expiration date of any Letter
of Credit extend beyond the Revolving Credit Commitment Termination Date, provided, that Letters of Credit with respect
to which the Letter of Credit Liabilities in respect thereof are not in excess of $50,000,000 may be issued that expire after the
Revolving Credit Commitment Termination Date then in effect, but before the date that is ninety (90) days thereafter.
(a) Letter
of Credit Request Procedure. The Company shall give the Agent at least two Business Days’ irrevocable prior notice (effective
upon receipt) specifying the Business Day (which shall be no later than 30 days preceding the Revolving Credit Commitment Termination
Date) each Letter of Credit is to be issued, the name of the applicable Issuing Bank, and the account party or parties therefor
and describing in reasonable detail the proposed terms of such Letter of Credit (including the beneficiary thereof) and the nature
of the transactions or obligations proposed to be supported thereby (including whether such Letter of Credit is to be a commercial
Letter of Credit or a standby Letter of Credit). Upon receipt by the applicable Issuing Bank of confirmation from the Agent in
writing that the requested Letter of Credit is permitted in accordance with the terms hereof, such Issuing Bank
shall, on the requested date, issue a Letter Credit for the account of the Company in accordance with this Agreement.
(b) Bank
Participation in Letters of Credit. Upon the issuance of each Letter of Credit, the applicable Issuing Bank shall be deemed
to have sold and transferred to each other Bank and each such other Bank shall be deemed irrevocably and unconditionally to have
purchased and received from the applicable Issuing Bank, without recourse or warranty, an undivided interest and participation,
to the extent of such other Bank’s Revolving Loan Commitment Percentage of the Letter of Credit Liabilities with respect
to the Letter of Credit so issued.
(c) Drawings
on Letters of Credit; Reimbursement. Upon receipt from the beneficiary of any Letter of Credit of any demand for payment under
such Letter of Credit, the applicable Issuing Bank shall promptly notify the Company (through the Agent) of the amount to be paid
by such Issuing Bank as a result of such demand and the date on which payment is to be made by such Issuing Bank to such beneficiary
in respect of such demand. Notwithstanding the identity of the account party of any Letter of Credit, the Company hereby unconditionally
agrees to pay and reimburse (including, for the avoidance of doubt, with proceeds of a Loan as set forth in clause (d) below) the
Agent for the account of the applicable Issuing Bank for the amount of each demand for payment under such Letter of Credit made
in accordance with the terms thereof at or prior to the date on which payment is to be made by such Issuing Bank to the beneficiary
thereunder in accordance with the terms thereof, without presentment, demand, protest or other formalities of any kind.
(d) Borrowing
to Fund Reimbursement. Forthwith upon its receipt of a notice referred to in clause (c) of this Section 2.03,
the Company shall advise the Agent whether or not the Company intends to borrow hereunder to finance its obligation to reimburse
the applicable Issuing Bank for the amount of the related demand for payment and, if it does, submit a notice of such borrowing
as provided in Section 4.05 hereof. In the event that the Company fails to reimburse the applicable Issuing Bank for a payment
under a Letter of Credit by the date of such payment, the Agent shall give each Bank prompt notice of the amount of the demand
for payment, specifying such Bank’s Revolving Commitment Percentage of the amount of the related demand for payment.
(e) Funding
of Bank Participation in Letters of Credit. Each Bank (other than the applicable Issuing Bank) shall pay to the Agent for account
of the applicable Issuing Bank in Dollars and in immediately available funds, the amount of such Bank’s Revolving Commitment
Percentage of any payment under a Letter of Credit upon notice by such Issuing Bank (through the Agent) to such Bank requesting
such payment and specifying such amount. Each such Bank’s obligation to make such payment to the Agent for account of the
applicable Issuing Bank under this clause (e), and such Issuing Bank’s right to receive the same, shall be absolute
and unconditional and shall not be affected by any circumstance whatsoever, including the failure of any other Bank to make its
payment under this clause (e), the financial condition of the Company (or any other account party), the existence of any Default
or the termination of any Commitment. Each such payment to the applicable Issuing Bank shall be made without any offset, abatement,
withholding or reduction whatsoever.
(f)
Payments Received by the Issuing Banks. Upon receipt by the applicable Issuing Bank from
or for account of the Company of any payment in respect of any Reimbursement Obligation or any such interest or other amount
(including by way of setoff or application of proceeds of any collateral security) such Issuing Bank shall promptly pay to
the Agent for account of each Bank that has funded its participation in such Reimbursement Obligations, such Bank’s
Revolving Commitment Percentage of such payment, each such payment by such Issuing Bank to be made in the same money and
funds in which received by such Issuing Bank. In the event any payment received by the applicable Issuing Bank and so paid to
the Banks hereunder is rescinded or must otherwise be returned by such Issuing Bank, each Bank shall, upon the request of
such Issuing Bank (through the Agent), repay to such Issuing Bank (through the Agent) the amount of such payment paid to such
Bank, with interest at the rate specified in clause (j) of this Section 2.03.
(g) (i) Letter
of Credit Fees. The Company shall pay to the Agent for the pro rata account of the Banks (other than Defaulting Banks) in accordance
with their respective Revolving Loan Commitment Percentages), the following fees:
(A) Commercial
Letters of Credit. For each commercial Letter of Credit, a letter of credit fee in an amount equal to 0.125% flat for each
90 day period or part thereof between the date of issuance and the expiration date thereof, on the face amount of such Letter of
Credit, payable in arrears on each Quarterly Date;
(B) Standby
Letters of Credit. For each standby Letter of Credit, a letter of credit fee at a rate per annum equal to 2.35% on the average
daily undrawn amount of such standby Letter of Credit during the period from the date of issuance through and including the date
of drawing of the entire amount or expiration or termination thereof, payable in arrears on each Quarterly Date;
provided that
such letter of credit commissions with respect to each Letter of Credit set forth in clauses (A) and (B) above shall be non-refundable
and shall not be less than $500, and
(ii) Letter
of Credit Fronting Fees. The Company shall pay to each Issuing Bank a fronting fee with respect to each Letter of Credit issued
by such Issuing Bank, which shall accrue at the rate or rates per annum separately agreed upon between the Company and the applicable
Issuing Bank on the daily amount of the Letter of Credit Liabilities (excluding any portion thereof attributable to unreimbursed
Reimbursement Obligations) during the period from and including the Closing Date to but excluding the later of the date of termination
of the Revolving Loan Commitments and the date on which there ceases to be any Letter of Credit Liabilities with respect to such
Issuing Bank, such fronting fees accrued through and including each Quarterly Date to be due and payable on the tenth (10) Business
Day following such Quarterly Date, commencing on the first such date to occur after the Closing Date; provided that all such fees
shall be payable on the date on which the Revolving Loan Commitments terminate and any such fees accruing after the date on which
the Revolving Loan Commitments terminate shall be payable upon the expiration of the applicable Letter of Credit or, if earlier,
the date on which the Revolving Loan Commitments terminate.
In addition, the Company shall pay to the
Agent for account of the applicable Issuing Bank, such Issuing Bank’s standard fees with respect to the amendment or negotiation
of any Letter of Credit or processing of drawings thereunder. Any other fees payable to an Issuing Bank pursuant to this paragraph
shall be payable within 10 Business Days after demand.
(h) Letter
of Credit Liability Accounting. At the request of any Bank, the applicable Issuing Bank shall deliver (through the Agent) to
such Bank a notice describing the aggregate amount of all Letters of Credit outstanding at the end of any month. Upon the request
of any Bank from time to time, the applicable Issuing Bank shall deliver any other information reasonably requested by such Bank
with respect to each Letter of Credit then outstanding.
(i) Conditions
to Issuance. (i) The issuance by the Issuing Banks of each Letter of Credit shall, in addition to the conditions precedent
set forth in Section 6 hereof, be subject to the conditions precedent that: (A) such Letter of Credit shall be denominated
in Dollars, shall state a maximum liability thereunder and shall be in such form, contain such terms and support such transactions
as shall be satisfactory to the applicable Issuing Bank consistent with its then current practices and procedures with respect
to letters of credit of the same type, and (B) the Company has executed and delivered such applications, agreements and other
instruments relating to such Letter of Credit as the applicable Issuing Bank has reasonably requested consistent with its then
current practices and procedures with respect to letters of credit of the same type, provided that in the event of any conflict
between any such application, agreement or other instrument and the provisions of this Agreement or any Security Document, the
provisions of this Agreement and the Security Documents shall control.
(ii) Notwithstanding
anything herein to the contrary, no Issuing Bank is under any obligation to issue or provide any Letter of Credit (including any
renewal of an Auto-Renewal Letter of Credit) unless consented to by such Issuing Bank and the Agent and, in respect of clauses
(A) and (B)(x) below, no Letter of Credit shall be issued or renewed without the consent of all Banks, if (A) any order, judgment
or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain such Issuing Bank from issuing
or providing such Letter of Credit, or (B) any Requirement of Law applicable to such Issuing Bank or any request or directive (whether
or not having the force of Law) from any Governmental Authority with jurisdiction over such Issuing Bank shall (x) prohibit, or
request that such Issuing Bank refrain from, the issuance or provision of such type of Letter of Credit generally or such Letter
of Credit in particular, (y) impose upon such Issuing Bank with respect to such Letter of Credit any restriction, reserve or capital
requirement (in each case for which such Issuing Bank is not otherwise compensated hereunder) not in effect on the Closing Date
at a time when such Issuing Bank is not otherwise issuing letters of credit for the account of similarly situated customers without
additional compensation or (z) impose upon such Issuing Bank any unreimbursed loss, cost or expense (in each case for which such
Issuing Bank is not otherwise compensated hereunder) which was not applicable on the Closing Date and which such Issuing Bank in
good faith deems material to it.
(j) Default
Interest. To the extent that any Bank shall fail to pay any amount required to be paid pursuant to clause (e) or (f) of this
Section 2.03 on the due date therefor, such Bank shall pay interest to the applicable Issuing Bank (through the Agent) on such
amount from and including such due date to but excluding the date such payment is made at the Federal Funds Rate.
(k) Modifications
to Letters of Credit. The issuance by the Issuing Banks of any modification or supplement to any Letter of Credit that increases
the face amount thereof or extends the maturity date thereof shall be subject to the same conditions applicable under this Section
2.03 to the issuance of new Letters of Credit (including, without limitation, the confirmation by the Agent required under clause
(a) above), and no such modification or supplement shall be issued hereunder unless the respective Letter of Credit affected thereby
would have complied with such conditions had it originally been issued hereunder in such modified or supplemented form.
(l) Company
Indemnification. The Company hereby indemnifies and holds harmless each Bank and the Agent from and against any and all claims,
damages, losses, liabilities, costs or expenses that such Bank or the Agent may incur (or that may be claimed against such Bank
or the Agent by any Person whatsoever) by reason of or in connection with the execution and delivery or transfer of or payment
or refusal to pay by any Issuing Bank under any Letter of Credit; provided that the Company shall not be required to indemnify
any Issuing Bank or the Agent for any such claims, damages, losses, liabilities, costs or expenses to the extent, but only to the
extent, caused by (x) the willful misconduct or gross negligence of the applicable Issuing Bank in determining whether a request
presented under any Letter of Credit complied with the terms of such Letter of Credit or (y) the applicable Issuing Bank’s
failure to pay under any Letter of Credit after the presentation to it of a request strictly complying with the terms and conditions
of such Letter of Credit or (z) the requirement of any Bank to pay interest pursuant to Section 2.03(j) hereof. Nothing in this
Section 2.03 is intended to limit the other obligations of the Company, any Bank or the Agent under this Agreement.
(m) Obligations
Absolute. The Company’s Reimbursement Obligations shall be absolute, unconditional and irrevocable, and shall
be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective
of (i) any lack of validity or enforceability of any Letter of Credit, or any term or provision therein, (ii) any draft or other
document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein
being untrue or inaccurate in any respect, (iii) payment by the applicable Issuing Bank under a Letter of Credit against presentation
of a draft or other document that does not comply strictly with the terms of such Letter of Credit, (iv) the existence of any claim,
counterclaim, setoff, defense or other right that the Company may have at any time against any beneficiary or any transferee of
any Letter of Credit, the relevant Issuing Bank or any other Person, whether in connection with this Agreement, the transactions
contemplated hereby or by such Letter of Credit or any agreement or instrument relating thereto, or any unrelated transaction,
and (v) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions
of this Section, constitute a legal or equitable discharge of Company’s obligations hereunder. In addition to the forgoing,
the Company 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, that this assumption is not intended to, and shall not, preclude the Company’s pursuing such
rights and remedies as it may have against the beneficiary or transferee at law or under any other agreement.
(n) Exculpation.
Neither the Agent, the Banks nor the applicable Issuing Bank, nor any of their respective officers, directors, employees, attorneys
and agents shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter
of Credit by the applicable Issuing Bank or any payment or failure to make any payment thereunder (irrespective of any of the circumstances
referred to in the preceding clause (m)), or any error, omission, interruption, loss or delay in transmission or delivery of any
draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing
thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of the applicable
Issuing Bank; provided that the foregoing shall not be construed to excuse the applicable Issuing Bank from liability to the Company
to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the Company
to the extent permitted by applicable Law) suffered by the Company that are caused solely by the applicable Issuing Bank’s
gross negligence or willful misconduct when determining whether drafts and other documents presented under a Letter of Credit comply
with the terms thereof. The parties hereto expressly agree that:
(i) The
Issuing Banks may accept documents that appear on their face to be in substantial compliance with the terms of a Letter of Credit
without responsibility for further investigation, regardless of any notice or information to the contrary, and may make payment
upon presentation of documents that appear on their face to be in substantial compliance with the terms of such Letter of Credit;
(ii) The
Issuing Banks shall have the right, in their sole discretion, to decline to accept such documents and to make such payment if such
documents are not in strict compliance with the terms of such Letter of Credit; and
(iii) This
sentence shall establish the standard of care to be exercised by the Issuing Banks when determining whether drafts and other documents
presented under a Letter of Credit comply with the terms thereof (and the parties hereto hereby waive, to the extent permitted
by applicable Law, any standard of care inconsistent with the foregoing).
(o) Auto-Renewal
Letters of Credit. If the Company so requests in any applicable Letter of Credit request (in accordance with Section 2.03(a)
hereof), the applicable Issuing Bank may, in its sole and absolute discretion, agree to issue a Letter of Credit that has automatic
renewal provisions (each, an “Auto-Renewal Letter of Credit”), provided that any such Auto-Renewal Letter
of Credit must permit (i) the Company to prevent any such renewal by delivering written notice thereof to such Issuing Bank not
less than five (5) Business Days prior to the applicable Nonrenewal Notice Date (as defined below) and (ii) such Issuing Bank to
prevent any such renewal at least once during the then current term of such Letter of Credit by giving prior notice to the beneficiary
thereof not later than a specified date to be agreed upon at the time such Letter of Credit is issued, which shall occur prior
to the date that is thirty (30) days after the Revolving Credit Commitment Termination Date (the “Nonrenewal Notice Date”).
Unless otherwise directed in writing by the applicable Issuing Bank at least thirty (30) days prior to the Nonrenewal Notice Date,
the Company shall not be required to make a specific request to such Issuing Bank for any renewal of an Auto-Renewal Letter of
Credit, and such Issuing Bank shall not be required to provide prior notice to the Company, the Agent or any Bank of any pending
renewal of an Auto-Renewal Letter of Credit. Once an Auto-Renewal Letter of Credit has been issued, the Company and the Banks shall
be deemed to have authorized the applicable Issuing Bank to permit the renewal of such Letter of Credit at any time to a date not
later than ninety (90) days after the Revolving Credit Commitment Termination Date (subject to the provisions of Section 2.11(b)(ii)
hereof), provided, however, that such Issuing Bank shall have no obligation to permit any renewal of an Auto-Renewal Letter of
Credit if (A) such Issuing Bank has determined that it would have no obligation at such time to issue such Letter of Credit in
its renewed form under the terms hereof (by reason of the provisions of Section 2.03(i) or otherwise) or (B) after giving
effect to any such renewal, the expiration date of such Auto-Renewal Letter of Credit would occur more than ninety (90) days after
the Revolving Credit Commitment Termination Date or the next occurring Nonrenewal Notice Date of such Auto-Renewal Letter of Credit
would occur more than thirty (30) days after the Revolving Credit Commitment Termination Date; provided, further however,
that the Issuing Bank shall not permit any renewal of an Auto-Renewal Letter of Credit if it has received notice (in writing) on
or before the date that is three Business Days before the Nonrenewal Notice Date (1) from the Agent that the Required Banks have
elected not to permit such extension or (2) from the Agent, the Required Banks or the Company that one or more of the applicable
conditions specified in Sections 2.03(i) or Section 6.02 is not then satisfied or waived in accordance with Section
11.04. For the avoidance of doubt, in no event shall the issuance or renewal of one or more Auto-Renewal Letters of Credit
cause the cap in the second proviso to the first sentence of Section 2.03 to be exceeded.
(p) Issuance
Caps. Notwithstanding anything herein to the contrary, no Issuing Bank shall be obligated to issue any Letter of Credit if,
after giving effect to the issuance of such Letter of Credit, the aggregate outstanding Letter of Credit Liabilities attributed
to Letter of Credit issued by such Issuing Bank exceeds such Issuing Bank’s Issuance Cap, provided that subject to the terms
and conditions hereof, each Issuing Bank may issue Letters of Credit on a discretionary basis during such time as the aggregate
outstanding Letter of Credit Liabilities attributed to Letters of Credit issued by such Issuing Bank exceeds such Issuing Bank’s
Issuance Cap, but the applicable Issuing Bank shall have no obligation to do so.
(q) Agent
Consent. If any Issuing Bank shall issue, extend or amend any Letter of Credit without obtaining prior consent of the Agent
(as provided in clause (a) above), such Letter of Credit (A) shall for all purposes be deemed to have been issued by such
Issuing Bank solely for its own account and risk and (B) shall not be considered a Letter of Credit outstanding under this Agreement
(and therefore shall not be included when calculating the Credit Exposure), and no Bank shall be deemed to have any participation
therein, effective as of the date of such issuance, amendment or extension, as the case may be, unless the Required Banks expressly
consent thereto; provided, however, that to be considered a Letter of Credit outstanding under this Agreement, the consent of all
Banks shall be required if any such issuance, amendment or extension is not then permitted hereunder by reason of the provisions
of this Section 2.03, provided further that in the event that such a Letter of Credit shall be issued, it shall not result in a
violation of Section 8.07 hereof or an Event of Default solely as a result of such issuance.
(r) Successor
Issuing Banks. (i) Any Issuing Bank may resign as an Issuing Bank upon sixty (60) days prior written notice to the Agent, the
Banks and the Company, provided that (x) any such resignation shall be subject to the condition that the appointment of a successor
pursuant to this Section 2.03(r) shall have occurred and after giving effect thereto, the aggregate Issuance Caps shall not be
less than the L/C Cap and (y) any resignation by Rabobank shall only be permitted in connection with (A) Rabobank’s assignment
of all of its right, title and interest in all Loans, Letters of Credit and its other Loan Obligations to a Person that is not
an Affiliate of Rabobank, in accordance with Section 11.06 hereof and (B) its resignation as Agent. If any Issuing Bank shall provide
notice of its resignation, then the Company may appoint from among the Banks a successor issuer of Letters of Credit, whereupon,
if such Bank shall accept such appointment (in its sole discretion), such successor issuer shall succeed to the rights, powers
and duties of the resigning Issuing Bank under this Agreement and the other Basic Documents, and the term “Issuing Bank”
shall include such successor issuer of Letters of Credit effective upon such appointment. At the time such resignation shall become
effective, the Company shall pay to the resigning Issuing Bank all accrued and unpaid fees payable by it pursuant to Section 2.03(g).
The acceptance of any appointment as an Issuing Bank hereunder in accordance with this Agreement, shall be evidenced by an agreement
entered into by such successor issuer of Letters of Credit, in a form satisfactory to the Company and the Agent and, from and after
the effective date of such agreement, such successor issuer of Letters of Credit shall become an “Issuing Bank” hereunder.
After the resignation of any Issuing Bank hereunder, the resigning Issuing Bank shall remain a party hereto and shall continue
to have all the rights and obligations of an Issuing Bank under this Agreement and the other Basic Documents with respect to Letters
of Credit issued by it prior to such resignation, but shall not be required to issue additional Letters of Credit. In connection
with any resignation pursuant to this Section 2.03(r), the Company, the resigning Issuing Bank and the successor issuer of Letters
of Credit shall arrange to have any outstanding Letters of Credit issued or provided by the resigning Issuing Bank replaced with
Letters of Credit issued or provided by the successor issuer of Letters of Credit. After any resigning Issuing Bank’s resignation
as an Issuing Bank, the provisions of this Agreement relating to such Issuing Bank shall inure to its benefit as to any actions
taken or omitted to be taken by it (A) while it was an Issuing Bank under this Agreement or (B) at any time with respect to Letters
of Credit issued by it.
(ii) To
the extent that there are, at the time of any resignation as set forth in clause (i) above, any outstanding Letters of Credit,
nothing herein shall be deemed to impact or impair any rights and obligations of any of the parties hereto with respect to such
outstanding Letters of Credit (including, without limitation, any obligations related to the payment of fees or the reimbursement
or funding of amounts drawn), except that the Company, the resigning Issuing Bank and the successor issuer of Letters of Credit
shall have the additional obligations regarding outstanding Letters of Credit described in clause (i) above.
(s) UCP;
ISP. Each Letter of Credit (other than each standby Letter of Credit), except as otherwise herein or therein expressly stated,
is subject to the UCP and to the extent not inconsistent therewith, shall also be subject to the Uniform Commercial Code of the
State of New York, as in effect from time to time. Each standby Letter of Credit, except as otherwise herein or therein expressly
stated, is subject to ISP and to the extent not inconsistent therewith, shall also be subject to the Uniform Commercial Code of
the State of New York, as in effect from time to time.
2.04 Intentionally
Omitted.
2.05 Changes
of the Commitment.
(a) Revolving
Credit Commitment Termination Date. The Commitment shall be automatically reduced to zero on the Revolving Credit Commitment
Termination Date.
(b) Optional
Termination. The Company has the right at any time or from time to time (i) subject to the repayment in full of any Loans and
Reimbursement Obligations outstanding and so long as each issued Letter of Credit has expired, terminated or been fully Cash Collateralized
in the manner set forth in Section 2.11(b)(ii) hereof, to terminate the Revolving Loan Commitments and (ii) to reduce the unused
amount of the Revolving Loan Commitments (for which purpose use of the Commitments shall be deemed to include the aggregate amount
of Letter of Credit Liabilities and Swing Line Loans); provided that (w) the Company shall give notice of each such
termination or reduction as provided in Section 4.05 hereof, (x) each partial reduction shall be in an amount equal to
$10,000,000 (or an integral multiple of $10,000,000 in excess thereof), (y) each such partial reduction shall be applied pro rata
to reduce the Revolving Loan Commitment of each Bank and (z) if the Revolving Loan Commitment shall be reduced to an amount less
than either the Swing Line Commitment or the L/C Cap, the Swing Line Commitment and/or the L/C Cap, as applicable, shall be automatically
reduced to the amount of the reduced Revolving Loan Commitments.
(c) No
Reinstatement. The Revolving Loan Commitment once terminated or reduced may not be reinstated.
(d) Increases
in Revolving Loan Commitments. The Revolving Loan Commitments may be increased (so long as no Default shall have occurred and
be continuing), with the consent of the Agent, each Fronting Bank (such consent of each Fronting Bank to be required only in connection
with an increase that involves a New Bank), the Increasing Banks and the Company, at any time and from time to time, prior to the
Revolving Credit Commitment Termination Date in an aggregate principal amount (for all such increases) of up to $75,000,000 (the
“Maximum Aggregate Increase Amount”) as follows:
(i) The
Company may at any time make a written request for such increase to the Agent, who shall forward a copy of any such request to
each of the Banks. Each request by the Company pursuant to the immediately preceding sentence shall specify a proposed effective
date of such increase which shall not be less than 45 days after the date of such request (the “Requested Increase Effective
Date”), the aggregate amount of such requested increase in Revolving Loan Commitments, which shall be in an amount equal
to $20,000,000 or, if less, the unused portion of the Maximum Aggregate Increase Amount (or an incremental multiple of $5,000,000
in excess thereof) (the “Increase Amount”), and shall constitute an invitation to each Bank to increase its
Revolving Loan Commitment by a ratable portion of such Increase Amount.
(ii) Each
Bank, acting in its sole discretion and with no obligation to increase its Revolving Loan Commitment pursuant to this Section 2.05(d),
shall by written notice to the Company and the Agent advise the Company and the Agent whether or not such Bank agrees to all or
any portion of such increase in Revolving Loan Commitment within thirty (30) days (or such lesser number of days as agreed by the
Company and the Agent) after the Company’s request. Any such Bank may, in its sole discretion, accept all of such ratable
increase, a portion of such increase, or decline to accept any of such increase in Revolving Loan Commitment. If any Bank shall
not have responded affirmatively within such thirty (30)-day (or lesser, if applicable) period, such Bank shall be deemed to have
rejected the Company’s request for an increase in Revolving Loan Commitment in full. Promptly following the conclusion of
such thirty (30)-day (or lesser, if applicable) period, the Agent shall notify the Company of the results of such request to the
Banks to so increase the Revolving Loan Commitments by the Increase Amount.
(iii) If
the aggregate amount of the increases in Revolving Loan Commitment which the Banks have accepted in accordance with clause (ii)
of this Section 2.05(d) shall be less than the Increase Amount, the Company and the Agent may offer to such additional Persons
as may be agreed by the Company and the Agent (“New Banks”) the opportunity to make available such amount of
new Revolving Loan Commitments as may be required so that the aggregate increases in Revolving Loan Commitments by the existing
Banks and new Revolving Loan Commitments by the New Banks shall equal the Increase Amount. The effectiveness of all such increases
in Revolving Loan Commitments are subject to the satisfaction of the following conditions: (A) each Bank that so elects to increase
its Revolving Loan Commitments (each an “Increasing Bank”), each New Bank, the Agent, the Issuing Banks, the Swing
Line Bank and the Company shall have executed and delivered an agreement, substantially in the form of Exhibit F (an “Increase
and New Bank Agreement”) and such other documents reasonable required by the Agent; (B) any fees and other amounts (including,
without limitation, pursuant to Section 11.03) payable by the Company in connection with such increase shall have been paid; (C)
any other amounts then due hereunder shall have been paid; and (D) delivery to the Agent of a certificate of an authorized officer
of the Company as to the matters set forth in Sections 6.02.
(iv) Upon
the Requested Increase Effective Date, Schedule 1.0 of the Increase and New Bank Agreement, which shall reflect the Revolving Loan
Commitments and Revolving Loan Commitment Percentages of the Banks at such time, shall be deemed to supersede Schedule A hereto
without any further action or consent of any party, and each Bank that is not increasing its Revolving Loan Commitment under this
Section 2.05(d) hereby agrees to the reallocation of the Commitments and Revolving Loan Commitment Percentages as set forth in
the applicable Increase and New Bank Agreement (but, for the avoidance of doubt, not any change in such Bank’s Commitment).
The Agent shall cause a copy of such revised Schedule A to be available to the Issuing Banks and the Banks.
2.06 Commitment
Fee. The Company shall pay to the Agent for account of each Bank a commitment fee on the daily average unused portion of the
Revolving Loan Commitment of such Bank (for which purpose (a) the aggregate amount of any Letter of Credit Liabilities shall be
deemed to be a use of the Revolving Loan Commitment and (b) the aggregate amount of any Swing Line Loans then outstanding shall
not be deemed to be a use of the Revolving Loan Commitment), for the period from and including the date of this Agreement to but
not including the earlier of the date the Revolving Loan Commitment is terminated and the Revolving Credit Commitment Termination
Date, at a rate per annum equal to 0.50%. Accrued commitment fees shall be payable on each Quarterly Date and on the earlier of
the date the Revolving Loan Commitment is terminated and the Revolving Credit Commitment Termination Date. For purposes of this
paragraph, the Revolving Loan Commitment of a Defaulting Bank shall be deemed to be fully utilized for as long as such Bank is
a Defaulting Bank.
2.07 Lending
Offices. The Loans of each Type made by each Bank shall be made and maintained at such Bank’s Applicable Lending Office
for Loans of such Type.
2.08 Several
Obligations; Remedies Independent. The failure of any Bank to make any Loan or other extension of credit to be made by it on
the date specified therefor shall not relieve any other Bank of its obligation to make its Loan or other extension of credit on
such date and no Bank has any obligation to the Agent or any other Bank for the failure by any such other Bank to make any Loan
or other extension of credit required to be made by such other Bank. The amounts payable by the Company at any time hereunder and
under the Notes to each Bank shall be a separate and independent debt and each Bank shall be entitled to protect and enforce its
rights arising out of this Agreement and the Notes, and it shall not be necessary for any other Bank or the Agent to consent to,
or be joined as an additional party in, any proceedings for such purposes.
2.09 Evidence
of Indebtedness.
(a) Maintenance
of Loan Accounts by Banks. Each Bank shall maintain in accordance with its usual practice an account or accounts evidencing
the indebtedness of the Company to such Bank resulting from each Loan made by such Bank, including the amounts of principal and
interest payable and paid to such Bank from time to time hereunder.
(b) Maintenance
of Loan Accounts by the Agent. The Agent shall maintain accounts in which it shall record: (i) the amount of each Loan made
hereunder, the Type thereof and the Interest Period applicable thereto; (ii) the amount of any principal or interest due and payable
or to become due and payable from the Company to each Bank hereunder; and (iii) the amount of any sum received by the Agent hereunder
for the account of the Banks and each Bank’s share thereof.
(c) Effect
of Entries. The entries made in the accounts maintained pursuant to paragraph (a) or (b) of this Section shall be prima facie
evidence of the existence and amounts of the obligations recorded therein (absent manifest error); provided that the failure of
any Bank or the Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Company
to repay the Loans in accordance with the terms of this Agreement.
(d) Promissory
Notes. Any Bank may request that Loans made by it be evidenced by a promissory note substantially in the form of Exhibit A
hereto. In such event, the Company shall prepare, execute and deliver to such Bank a promissory note payable to the order of such
Bank (or, if requested by such Bank, to such Bank and its registered assigns) and in a form approved by the Agent. Thereafter,
the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section
11.05 be represented by one or more promissory notes in such form payable to the order of the payee named therein (or, if such
promissory note is a registered note, to such payee and its registered assigns).
2.10 Optional
Prepayments and Conversions or Continuations of Loans. Subject to Section 4.04 hereof, the Company has the right to prepay
Loans, or to Convert Loans of one Type into Loans of another Type or Continue Loans of one Type as Loans of the same Type, at any
time or from time to time, in whole or in part, without premium or penalty, except as may be required by Section 5 hereof, provided
that: (a) the Company shall give the Agent notice of each such prepayment, Conversion or Continuation pursuant to a Notice of Prepayment,
Conversion or Continuation substantially in the form of Exhibit J hereto and as provided in Section 4.05 hereof (and,
upon the date specified in any such notice of prepayment, the amount to be prepaid shall become due and payable hereunder); provided,
however, notwithstanding Section 11.02(b) hereof, an authorized officer of the Company may deliver to the Agent an
unsigned Notice of Prepayment, Conversion or Continuation by email to fm.am.SyndicatedLoans@rabobank.com (or such other
email as the Agent may direct in writing) so long as the Company delivers to the Agent a signed copy thereof relating to such notice
within five (5) Business Days of the date such email is delivered to the Agent, provided, that without limiting the Company’s
obligations above, if the signed copy shall not be received, each of the Agent and the Banks shall be authorized to rely on the
unsigned notice (with the same force and effect as a signed notice); and (b) a Eurodollar Loan may be prepaid or Converted
only on the last day of an Interest Period for such Loan. Notwithstanding the foregoing, and without limiting the rights and remedies
of the Banks under Section 9 hereof, in the event that any Event of Default exists, the Agent may (and at the request of the
Required Banks shall) suspend the right of the Company to Convert any Loan into a Eurodollar Loan, or to Continue any Loan as a
Eurodollar Loan, in which event all Eurodollar Loans shall be Converted (on the last day(s) of the respective Interest Periods
therefor) to Base Rate Loans.
2.11 Mandatory
Prepayments.
(a) Borrowing
Base. Until the Revolving Credit Commitment Termination Date, the Company shall from time to time prepay the Loans (and/or
provide cover for Letter of Credit Liabilities as specified in clause (b) below) in such amounts as shall be necessary so
that at all times the aggregate outstanding amount of the Credit Exposure shall not exceed the lesser of the Borrowing Base and
the aggregate amount of the Revolving Loan Commitments, such amount to be applied, first, to Swing Line Loans outstanding, second,
to Revolving Loans outstanding, subject to the terms of Section 2.3 of the Intercreditor Agreement, provided, that if after
giving effect to Section 2.3 of the Intercreditor Agreement, a deficiency shall continue to exist, an Event of Default under Section
9.01(a) hereof shall occur.
(b) Cover
for Letter of Credit Liabilities. (i) In the event that the Company shall be required pursuant to this Section 2.11 to
provide cover for Letter of Credit Liabilities, the Company shall effect the same by depositing Cash Collateral with the Agent
in an amount equal to the required cover amount, which funds shall be retained by the Agent in the Collateral Account (as collateral
security in the first instance for the Letter of Credit Liabilities) until such time as the relevant Letters of Credit have been
terminated and all of the Letter of Credit Liabilities in respect thereof paid in full or such time as such funds are no longer
required pursuant to Section 2.11(a) hereof; provided that no amounts so held shall be released if an Event of Default then exists.
(ii) The
Company shall provide cover for each Letter of Credit with an expiry date after the Revolving Credit Commitment Termination Date
by depositing Cash Collateral with the Agent on or prior to the date that is five (5) Business Days prior to the Revolving Credit
Commitment Termination Date in an amount equal to 103% of the face amount of each such Letter of Credit which funds shall be retained
by the Agent in the Collateral Account (as collateral security in the first instance for the Letter of Credit Liabilities) until
such time as the relevant Letters of Credit have been terminated and all of the Letter of Credit Liabilities in respect thereof
paid in full.
Section
3.
Payments of Principal and Interest.
3.01 Repayment
of Loans. The Company hereby promises to pay to the Agent for account of each Bank the entire outstanding principal amount
of the Loans, and each Loan shall mature and be due and payable, on the Revolving Credit Commitment Termination Date.
3.02 Interest.
(a) Revolving
Loans. The Company hereby promises to pay to the Agent for account of each Bank interest on the unpaid principal amount of
each Revolving Loan made by such Bank for the period from and including the date of such Revolving Loan to but excluding the date
such Revolving Loan shall be paid in full, at the following rates per annum:
(i) during
such periods as such Revolving Loan is a Base Rate Loan, the Base Rate (as in effect from time to time) plus the Applicable
Margin; and
(ii) during
such periods as such Revolving Loan is a Eurodollar Loan, for each Interest Period relating thereto, the Eurodollar Rate for such
Revolving Loan for such Interest Period plus the Applicable Margin.
(b) Swing
Line Loans. The Company hereby promises to pay to the Agent for account of the Swing Line Bank interest on the unpaid principal
amount of each Swing Line Loan made by the Swing Line Bank for the period from and including the date of such Swing Line Loan to
but excluding the date such Swing Line Loan shall be paid in full, at the Federal Funds Rate (as in effect from time to time) plus
the Applicable Margin.
(c) Post
Default Interest. Notwithstanding the foregoing, the Company hereby promises to pay to the Agent, at the election of the Required
Banks, for account of each Bank interest at the applicable Post-Default Rate on any principal of any Loan, on any Reimbursement
Obligation and on any other amount payable by the Company hereunder or under the Notes that shall not be paid in full when due
(whether at stated maturity, by acceleration, by mandatory prepayment or otherwise), for the period from and including the due
date thereof to but excluding the date the same is paid in full.
(d) Payment
of Interest. Accrued interest on each Loan shall be payable (i) in the case of a Base Rate Loan and Swing Line Loans, monthly
on the last Business Day of each month, (ii) in the case of a Eurodollar Loan, on the last day of each Interest Period therefor,
and (iii) in the case of any Loan, upon the payment or prepayment thereof or the Conversion of such Loan to a Loan of another Type
(but only on the principal amount so paid, prepaid or Converted), except that interest payable at the Post-Default Rate shall be
payable from time to time on demand. Promptly after the determination of any interest rate provided for herein or any change therein,
the Agent shall give notice thereof to the Banks to which such interest is payable and to the Company.
Section
4.
Payments; Computations; Etc.
4.01 Payments.
(a) Payments
Generally. Except to the extent otherwise provided herein, all payments of principal, interest, Reimbursement Obligations and
other amounts to be made by the Company under this Agreement and the other Basic Documents, and, except to the extent otherwise
provided therein, all payments to be made by the Obligors under any other Basic Document, shall be made in Dollars, in immediately
available funds, without deduction, set-off or counterclaim, to the Agent, not later than 1:00 p.m. New York time on the date
on which such payment shall become due (each such payment made after such time on such due date to be deemed to have been made
on the next succeeding Business Day). The Company shall, at the time of making each payment under this Agreement or any Note, for
account of any Bank specify to the Agent (which shall so notify the intended recipient(s) thereof) the Loans, Reimbursement Obligations
or other amounts payable by the Company hereunder to which such payment is to be applied (and in the event that the Company fails
to so specify, or if an Event of Default exists, the Agent may distribute such payment to the Banks for application in such manner
as it, subject to Section 4.03 hereof, may determine to be appropriate).
(b) Payments
to the Banks. Except as otherwise provided herein, each payment received by the Agent under this Agreement or any Note for
account of any Bank shall be paid by the Agent promptly to such Bank, in immediately available funds, for account of such Bank’s
Applicable Lending Office for the Loan or other obligation in respect of which such payment is made.
(c) Payments
on a Non-Business Day. If the due date of any payment under this Agreement or any Note would otherwise fall on a day that is
not a Business Day, such date shall be extended to the next succeeding Business Day, and interest shall be payable for any principal
so extended for the period of such extension.
4.02 Computations.
Interest on Loans, Reimbursement Obligations and all fees shall be computed on the basis of a year of 360 days and actual days
elapsed (including the first day but excluding the last day) occurring in the period for which payable.
4.03 Pro
Rata Treatment. Except to the extent otherwise provided herein: (a) each borrowing of Loans from and participation interests
in Swing Line Loans and Letters of Credit purchased by the Banks shall be made from the Banks, each payment of commitment fee under
Section 2.06 hereof in respect of Revolving Loan Commitments shall be made for account of the Banks, each payment of Letter of
Credit fee under Section 2.03(g)(i) hereof, and each termination or reduction of the amount of the Revolving Loan Commitments under
Section 2.05 hereof shall be applied to the Revolving Loan Commitments of the Banks, pro rata according to the amounts of their
respective Revolving Loan Commitments; (b) each payment or prepayment of principal of Loans by the Company shall be made for account
of the Banks pro rata in accordance with the respective unpaid principal amounts of the Loans held by them; and (c) each payment
of interest on Loans by the Company shall be made for account of the Banks pro rata in accordance with the amounts of interest
on such Loans then due and payable to the Banks.
4.04 Minimum
Amounts. Except for mandatory prepayments made pursuant to Section 2.11 hereof:
(a) each
borrowing, Conversion and partial prepayment of principal of Revolving Loans shall be in an amount at least equal to the following:
(i) $1,000,000
or multiples of $250,000 in excess thereof in the case of Eurodollar Loans,
(ii) $250,000
or multiples of $50,000 in excess thereof in the case of Base Rate Loans; and
(b) each
borrowing and partial prepayment of principal of Swing Line Loans shall be in an amount at least equal to $500,000 or multiples
of $25,000 in excess thereof
(borrowings, Conversions or prepayments
of or into Loans of different Types or, in the case of Eurodollar Loans, having different Interest Periods at the same time hereunder
to be deemed separate borrowings, Conversions and prepayments for purposes of the foregoing, one for each Type or Interest Period).
4.05 Certain
Notices. Notices by the Company to the Agent of terminations or reductions of the Revolving Loan Commitments, of borrowings,
Conversions, Continuations and optional prepayments of Loans, of Types of Loans and of the duration of Interest Periods shall be
irrevocable. All such notices shall be received by the Agent not later than 10:00 a.m. New York time on the number of Business
Days prior to the date of the relevant termination, reduction, borrowing, Conversion, Continuation or prepayment or the first day
of such Interest Period specified below, provided that any notice received after the time set forth above on any Business Day or
on any date other than a Business Day shall be deemed received on the next succeeding Business Day:
Notice |
|
Number of Business Days Prior |
|
|
|
Termination or reduction of the Commitments |
|
Five |
|
|
|
Borrowing or prepayment of, or Conversions into, Base Rate Loans or borrowing or prepayment of Swing Line Loans |
|
Same day |
|
|
|
Borrowing or prepayment of, Conversions into, Continuations as, or duration of Interest Period for, Eurodollar Loans |
|
Three |
Each such notice of termination or reduction
shall specify the amount of the Revolving Loan Commitments to be terminated or reduced. Each such notice of borrowing, Conversion,
Continuation or optional prepayment shall specify the amount (subject to Section 4.04 hereof) and Type of each Loan to be
borrowed, Converted, Continued or prepaid and the date of borrowing, Conversion, Continuation or optional prepayment (which shall
be a Business Day). Each such notice of the duration of an Interest Period shall specify the Loans to which such Interest Period
is to relate. In the event that the Company fails to select the Type of Loan, or the duration of any Interest Period for any Eurodollar
Loan, within the time period and otherwise as provided in this Section 4.05, such Loan (if outstanding as a Eurodollar Loan)
will be automatically Converted into a Base Rate Loan on the last day of the then current Interest Period for such Loan or (if
outstanding as a Base Rate Loan) will remain as, or (if not then outstanding) will be made as, a Base Rate Loan.
4.06 Non-Receipt
of Funds by the Agent. Unless the Agent has been notified by a Bank or the Company (the “Payor”) prior to
the date on which the Payor is to make payment to the Agent of (in the case of a Bank) the proceeds of a Loan to be made by such
Bank hereunder or (in the case of the Company) a payment to the Agent for account of one or more of the Banks hereunder (such payment
being herein called the “Required Payment”), which notice shall be effective upon receipt, that the Payor does
not intend to make the Required Payment to the Agent, the Agent may assume that the Required Payment has been made and may, in
reliance upon such assumption (but shall not be required to), make the amount thereof available to the intended recipient(s) on
such date; and, if the Payor has not in fact made the Required Payment to the Agent, the recipient(s) of such payment shall, on
demand, repay to the Agent the amount so made available together with interest thereon in respect of each day during the period
commencing on the date (the “Advance Date”) such amount was so made available by the Agent until the date the
Agent recovers such amount at a rate per annum equal to the Federal Funds Rate for such day and, if such recipient(s) shall fail
promptly to make such payment, the Agent shall be entitled to recover such amount, on demand, from the Payor, together with interest
as aforesaid, provided that if neither the recipient(s) nor the Payor shall return the Required Payment to the Agent within
three Business Days of the Advance Date, then, retroactively to the Advance Date, the Payor and the recipient(s) shall each be
obligated to pay interest on the Required Payment as follows:
(i) if
the Required Payment shall represent a payment to be made by the Company to the Banks, (x) the Company shall be obligated retroactively
to the Advance Date to pay interest in respect of the Required Payment at the Post-Default Rate and (y) the recipient(s) shall
be obligated retroactively to the Advance Date to pay interest in respect of the Required Payment at the Federal Funds Rate (and,
in case the recipient(s) shall return the Required Payment to the Agent, without limiting the obligation of the Company under Section 3.02
hereof to pay interest to such recipient(s) at the Post-Default Rate in respect of the Required Payment); and
(ii) if
the Required Payment shall represent proceeds of a Loan to be made by the Banks to the Company, (x) the Payor shall be obligated
retroactively to the Advance Date to pay interest in respect of the Required Payment at the Federal Funds Rate and (y) if such
Payor’s Required Payment is not made available to the Agent by such Payor within five (5) Business Days of such Advance Date,
the Agent shall also be entitled to recover such amount for its own account with interest thereon at the rate per annum applicable
to Base Rate Loans, within five (5) Business Days of demand from the Company.
4.07 Sharing
of Payments, etc.
(a) Set
off. If an Event of Default exists, each Bank and each of their respective Affiliates are hereby authorized at any time and
from time to time, to the fullest extent permitted by Law and Section 10.14, to set off and apply any and all deposits (general
or special, time or demand, provisional or final) at any time held and other indebtedness or obligations at any time owing by such
Bank or any Affiliates to or for the credit or the account of any Obligor against any of and all the Obligations of any Obligor
now or hereafter existing under any Basic Document held by such Bank or Affiliate, irrespective of whether or not such Bank shall
have made any demand and although such Obligations may be unmatured. The rights of each Bank under this Section are in addition
to other rights and remedies (including other rights of setoff) which such Bank may have.
(b) Sharing
of Payments on Loan Obligations. If any Bank shall obtain from any Obligor payment of any Loan Obligation owing to it through
the exercise of any right of set-off, banker’s lien or counterclaim or similar right or otherwise (other than from the Agent
as provided herein but including as a result of the rights under Section 4.07(a)), and, as a result of such payment, such Bank
has received a greater percentage of the Loan Obligations due to such Bank than the percentage received by any other Bank, it shall
promptly purchase from such other Banks participations in (or, if and to the extent specified by such Bank, direct interests in)
the Loan Obligations owing to such other Banks in such amounts, and make such other adjustments from time to time as shall be equitable,
to the end that all the Banks shall share the benefit of such excess payment (net of any expenses that may be incurred by such
Bank in obtaining or preserving such excess payment) pro rata in accordance with the Loan Obligations owing to each of the Banks.
To such end all the Banks shall make appropriate adjustments among themselves (by the resale of participations sold or otherwise)
if such payment is rescinded or must otherwise be restored. The Company agrees that any Bank so purchasing such a participation
(or direct interest) may exercise all rights of set-off, banker’s lien, counterclaim or similar rights with respect to such
participation as fully as if such Bank were a direct holder of Loans or other amounts (as the case may be) owing to such Bank in
the amount of such participation.
(c) Sharing
of Benefits of Secured Claim. Nothing contained herein shall require any Bank to exercise any such right or shall affect the
right of any Bank to exercise, and retain the benefits of exercising, any such right with respect to any other indebtedness or
obligation of any Obligor. If, under any applicable bankruptcy, insolvency or other similar Law, any Bank receives a secured claim
in lieu of a set-off to which this Section 4.07 applies, such Bank shall, to the extent practicable, exercise its rights in
respect of such secured claim in a manner consistent with the rights of the Banks entitled under this Section 4.07 to share
in the benefits of any recovery on such secured claim..
4.08 Application
of Proceeds of Collateral and Subsidiary Guarantee. Subject to the terms of the Intercreditor Agreement, all amounts received
under the Subsidiary Guarantee and all proceeds received by the Agent from the sale or other liquidation of the Collateral when
an Event of Default exists and the Loan Obligations are unpaid, shall first be applied as payment of the accrued and unpaid fees
of the Agent hereunder and then to all other unpaid or unreimbursed Obligations (including reasonable attorneys’ fees and
expenses) owing to the Agent in its capacity as Agent only and then any remaining amount of such proceeds shall be distributed:
(a) first,
to the Secured Parties, pro rata in accordance with the respective unpaid amounts of Loan Obligations (including, without limitation,
Cash Collateralization of Letters of Credit), until all the Loan Obligations have been paid and satisfied in full and in respect
of outstanding Letters of Credit, fully Cash Collateralized in accordance with Section 9.02;
(b) second,
to the Secured Parties, pro rata in accordance with the respective unpaid amounts of Hedging Obligations (other than Excluded Swap
Obligations), until all the Hedging Obligations (other than Excluded Swap Obligations) have been paid and satisfied in full or
Cash Collateralized;
(c) third,
to the Secured Parties, pro rata in accordance with the respective unpaid amounts of the Deposit Obligations, until all Deposit
Obligations have been paid and satisfied in full or Cash Collateralized; and
(d) fourth,
to the Secured Parties, pro rata in accordance with the respective unpaid amounts of the remaining Obligations (other than Excluded
Swap Obligations).
After all the Obligations (other than Excluded
Swap Obligations) have been paid and satisfied in full, all Commitments have terminated and all Letters of Credit have expired,
terminated or been Cash Collateralized as set forth above, any proceeds of Collateral shall be delivered to the Person entitled
thereto as directed by the Company or as otherwise determined by applicable Law or applicable court order.
4.09 Noncash
Proceeds. Notwithstanding anything contained herein to the contrary, if the Agent shall ever acquire any Collateral through
foreclosure or by a conveyance in lieu of foreclosure or by retaining any of the Collateral in satisfaction of all or part of the
Obligations or if any proceeds of Collateral received by the Agent to be distributed and shared pursuant to this Section are in
a form other than immediately available funds, the Agent shall not be required to remit any share thereof under the terms hereof
and the Secured Parties shall only be entitled to their undivided interests in the Collateral or noncash proceeds as determined
by Section 4.08. The Secured Parties shall receive the applicable portions (in accordance with the foregoing Section 4.08) of any
immediately available funds consisting of proceeds from such Collateral or proceeds of such noncash proceeds so acquired only if
and when received by the Agent in connection with the subsequent disposition thereof. While any Collateral or other property to
be shared pursuant to Section 4.08 is held by the Agent pursuant to this Section 4.09, the Agent shall hold such Collateral or
other property for the benefit of the Secured Parties and all matters relating to the management, operation, further disposition
or any other aspect of such Collateral or other property shall be resolved by the agreement of the Required Banks.
4.10 Return
of Proceeds. If at any time payment, in whole or in part, of any amount distributed by the Agent hereunder is rescinded or
must otherwise be restored or returned by the Agent as a preference, fraudulent conveyance, or otherwise under any bankruptcy,
insolvency, or similar Law, then each Person receiving any portion of such amount agrees, upon demand, to return the portion of
such amount it has received to the Agent together with a pro rata portion of any interest paid by or other charges imposed on the
Agent in connection with such rescinded or restored payment.
4.11 Notice
of Amount of Obligations. Prior to making any distribution under Section 4.08, the Agent shall request each Bank to provide
the Agent with a statement of the amounts of Hedging Obligations and Deposit Obligations then owed to such Bank and its Affiliates.
A Bank may provide such information to the Agent at any time and the Agent may also request such information at any time. If a
Bank does not provide the Agent a statement of the amount of any such Obligations within three (3) Business Days of the date requested,
the Agent may make distributions under Section 4.08 thereafter and the amount of Hedging Obligations and Deposit Obligations then
owed to such Bank and its Affiliates shall conclusively be deemed to be zero for purposes of such distributions. Neither the Bank
nor any of its Affiliates shall have a right to share in such distributions with respect to any Hedging Obligations or Deposit
Obligations owed to it. If a Bank shall thereafter provide the Agent a statement of the amount of the Hedging Obligations and Deposit
Obligations then owed to such Bank and its Affiliates, any distribution under Section 4.08 made after the notice is received by
the Agent shall take into account the amount of the Hedging Obligations and/or Deposit Obligations then owed. Banks and their Affiliates
that shall not have provided the statement (required under this Section 4.11) of the amount of owing Hedging Obligations or Deposit
Obligations shall not be entitled to share retroactively in any distribution made prior to the date when such statement was provided.
In furtherance of the provisions of Section 10, the Agent shall in all cases be fully protected in making distributions hereunder
in accordance with the statements of the Hedging Obligations and Deposit Obligations received from the Banks under this Section 4.11
(or lack thereof).
4.12 Defaulting
Banks.
(a) Anything
contained herein to the contrary notwithstanding, in the event that any Bank becomes a Defaulting Bank, then the Swing Line Bank
may, in its sole discretion, require such Defaulting Bank to deposit Cash Collateral with the Agent in an aggregate amount equal
to such Defaulting Bank’s participations in any requested or outstanding Swing Line Loans, and each Defaulting Bank hereby
grants a first priority security interest in such Cash Collateral in favor of the Agent, for the sole benefit of the Swing Line
Bank. In the event that such Defaulting Bank fails to deposit Cash Collateral as required hereby, the Company may, at any time
thereafter, upon five (5) Business Days prior written notice to such Defaulting Bank, require that such Defaulting Bank terminate
its Revolving Loan Commitment and any obligations hereunder and under the other Basic Documents and transfer all of its Credit
Exposure in accordance with Section 11.06 (subject to the prior written consent of such assignees, the Agent, the Issuing
Banks and the Swing Line Bank) to one or more of the existing Banks or to one or more new Banks, if such assignee Banks can be
found by the Company.
(b) Anything
contained herein to the contrary notwithstanding, in the event that any Bank becomes a Defaulting Bank, then each Issuing Bank
may, in its sole discretion, require such Defaulting Bank to deposit Cash Collateral with the Agent in an aggregate amount equal
to such Defaulting Bank’s participations in any requested or outstanding Letters of Credit, and each Defaulting Bank hereby
grants a first priority security interest in such Cash Collateral in favor of the Agent, for the sole benefit of the applicable
Issuing Bank. In the event that such Defaulting Bank fails to deposit Cash Collateral as required hereby, the Company may, at any
time thereafter, upon five (5) Business Days prior written notice to such Defaulting Bank, require that such Defaulting Bank terminate
its Revolving Loan Commitment and any obligations hereunder and under the other Basic Documents and transfer all of its Credit
Exposure and participations therein in accordance with Section 11.06 (subject to the prior written consent of such Banks,
the Agent, the Issuing Banks and the Swing Line Bank) to one or more of the existing Banks or to one or more new Banks, if such
assignee Banks can be found by the Company.
(c) Notwithstanding
any other provision in this Agreement to the contrary, if at any time a Bank becomes a Defaulting Bank, the following provisions
shall apply so long as such Bank is a Defaulting Bank:
(i) Fees
pursuant to Section 2.06 shall cease to accrue on such Defaulting Bank’s unused Revolving Loan Commitment until such
time as such Bank is no longer a Defaulting Bank, at which time fees pursuant to Section 2.06 shall resume to accrue and
be payable in accordance with Section 2.06.
(ii) With
respect to any Fronting Exposure of the Defaulting Bank (including, without limitation, any that exists at the time a Bank becomes
a Defaulting Bank or thereafter) (the “Defaulting Bank’s Exposure”):
(A) such
Defaulting Bank’s Exposure shall automatically be reallocated (without further action of any party) among the non-Defaulting
Banks in accordance with their respective Revolving Loan Commitment Percentages (calculated without regard to any Defaulting Bank’s
Revolving Loan Commitments) to the extent of each non-Defaulting Bank’s unused Revolving Loan Commitment, provided,
that (x) the conditions set forth in Section 6.02 shall be satisfied at the time of such reallocation (and, unless the Company
shall have otherwise notified the Agent at such time, the Company shall be deemed to have represented and warranted that such conditions
are satisfied at such time) and (y) in no event shall any non-Defaulting Bank’s Credit Exposure following such reallocation
exceed such non-Defaulting Bank’s Revolving Loan Commitment;
(B) if
the reallocation described in paragraph (A) above cannot, or can only partially, be effected, then the Company shall within one
(1) Business Day following notice by the Agent, the applicable Issuing Bank or the Swing Line Bank (1) deliver to the Agent Cash
Collateral for such Defaulting Bank’s Revolving Loan Commitment Percentage of the Letter of Credit Liabilities (after giving
effect to any partial reallocation pursuant to paragraph (A) above) as otherwise provided in this Agreement for so long as such
Letter of Credit Liabilities are outstanding and (2) immediately repay each Swing Line Loan for so long as such Swing Line Loan
or any participation therein is outstanding;
(C) if
the Company shall deliver to the Agent Cash Collateral for any portion of such Defaulting Bank’s participations in Letter
of Credit Liabilities pursuant to Section 4.12(b) or Section 4.12(c)(ii)(B) then the Company shall not be required
to pay any fees for the benefit of such Defaulting Bank pursuant to Section 2.03(g) of this Agreement with respect to the
portion of such Defaulting Bank’s Revolving Loan Commitment Percentage of outstanding Letters of Credit equal to such Cash
Collateral during the period such Cash Collateral is held by the Agent;
(D) to
the extent the Defaulting Bank’s Exposure is reallocated to the non-Defaulting Banks pursuant to clause (A) above, the fees
payable to the Banks pursuant to Sections 2.03 and 2.06 shall be adjusted in accordance with such non-Defaulting Banks’ Revolving
Loan Commitment Percentages (disregarding the Revolving Loan Commitments of any Defaulting Bank);
(E) if
any Defaulting Bank’s Exposure is not Cash Collateralized, reallocated or prepaid pursuant to this Section 4.12, then, without
prejudice to any rights or remedies of the Issuing Banks, the Swing Line Bank or any Bank hereunder, all fees payable to the Banks
pursuant to Sections 2.03(g) and 2.06 with respect to such Defaulting Bank’s Exposure that is not Cash Collateralized, reallocated
or prepaid shall be payable to the Issuing Banks or the Swing Line Bank, as applicable, until such Defaulting Bank’s Exposure
is fully Cash Collateralized as set forth in this Section 4.12, reallocated and/or prepaid;
(F) (i)
no Issuing Banks shall be required to issue, provide, amend or increase any Letter of Credit, unless it is satisfied in its sole
discretion that the related exposure will be 100% covered by the Revolving Loan Commitments of the non-Defaulting Banks, and participating
interests in any such newly issued, provided or increased Letter of Credit shall be allocated among non-Defaulting Banks in a manner
consistent with Section 2.03(b) (and Defaulting Banks shall not participate therein) and (ii) the Swing Line Bank shall
not be required to advance any Swing Line Loan, unless it is satisfied that the related exposure will be 100% covered by the Revolving
Loan Commitments of the non-Defaulting Banks;
(G) any
amount payable to such Defaulting Bank hereunder (whether on account of principal, interest, fees or otherwise) shall, in lieu
of being distributed to such Defaulting Bank, be retained by the Agent in a segregated account and subject to any applicable Requirements
of Law, and be applied:
(1) first,
to the payment of any amounts owing by such Defaulting Bank to the Agent hereunder,
(2) second,
to the payment pro rata of any amounts owing by such Defaulting Bank to the Issuing Banks and/or the Swing Line Bank hereunder,
(3) third,
to the extent not Cash Collateralized, to the payment pro rata to (x) the Cash Collateralization, as set forth in this Section
4.12, of any participating interest in any Letter of Credit in respect of which such Defaulting Bank has failed to fund Cash
Collateral for its portion thereof as required by this Agreement, pro rata among such Letters of Credit, as determined by the Agent,
and (y) the repayment of any uncovered portion of any outstanding Swing Line Loans,
(4) fourth,
as the Company may request, so long as no Default or Event of Default shall have occurred and be continuing, to the funding of
any portion of any Loan which such Defaulting Bank has failed to fund,
(5) fifth,
if so determined by the Agent, the Issuing Banks or the Swing Line Bank, held in such account as Cash Collateral for future funding
obligations of such Defaulting Bank under this Agreement,
(6) sixth,
to the payment of any amounts owing to the non-Defaulting Banks as a result of any judgment of a court of competent jurisdiction
obtained by any non-Defaulting Bank against such Defaulting Bank as a result of such Defaulting Bank’s breach of its obligations
under this Agreement,
(7) seventh,
so long as no Default or Event of Default shall have occurred and be continuing, to the payment of any amounts owing to the Company
as a result of any judgment of a court of competent jurisdiction obtained by the Company against such Defaulting Bank as a result
of such Defaulting Bank’s breach of its obligations under this Agreement, and
(8) eighth,
to such Defaulting Bank or as otherwise directed by a court of competent jurisdiction;
provided, however, that if
such payment is (x) a payment of the principal amount of any Loans or unreimbursed amount with respect to drawings or demands for
payment under Letters of Credit which such Defaulting Bank has not funded in accordance with its participation obligations hereunder
and (y) made at a time when the conditions set forth in Section 6.02 are satisfied, such payment shall be applied solely
to prepay the Loans of, and unreimbursed amounts with respect to drawings and demands under Letters of Credit owed to, all non-Defaulting
Banks pro rata prior to being applied to the prepayment of any Loans, or unreimbursed amounts with respect to such drawings owed
to, such Defaulting Bank.
(d) Each
Defaulting Bank shall indemnify the Company, the Agent, the Issuing Banks, the Swing Line Bank and each non-Defaulting Bank from
and against any and all loss, damage or expenses, including but not limited to reasonable attorneys’ fees and, in the case
of the Agent, the Issuing Banks, the Swing Line Bank or any non-Defaulting Bank, funds (if any) advanced by the Agent, the Issuing
Banks, the Swing Line Bank or by any non-Defaulting Bank, on account of such Defaulting Bank’s failure to timely fund its
applicable Revolving Loan Commitment Percentage of a Loan or to otherwise perform its obligations under the Basic Documents.
(e) In
the event that the Agent, the Company, the Issuing Banks and the Swing Line Bank agree that a Defaulting Bank has adequately remedied
all matters that caused such Bank to be a Defaulting Bank, then the Fronting Exposure of the Banks shall be readjusted to reflect
the inclusion of such Bank’s Revolving Loan Commitment and on such date such Bank shall purchase at par such of the Loans,
Revolving Loan Commitments and/or Letter of Credit Liabilities, or participations therein of the other Banks as the Agent shall
determine may be necessary in order for such Bank to hold such Loans, Revolving Loan Commitments and/or Loan Obligations in accordance
with its Revolving Loan Commitment Percentage thereof.
(f) At
any time during a Defaulting Bank Period, the Company may (so long as such Defaulting Bank Period remains in effect), require such
Defaulting Bank to assign all right, title and interest that it may have in, and its participations in, all Loans, Letters of Credit
and any other Loan Obligations to another Bank (if another Bank will consent to purchase such right, title and interest and participations)
or another Person in accordance with and subject to the terms of Section 11.06 of
this Agreement, if such Person can be found by the Company, for a purchase price equal to 100% of the principal amount of such
Obligations plus the amount of any interest and fees accrued and owing to
such Defaulting Bank as of the date of such assignment plus any amount payable under this Agreement (including, without limitation,
under Section 5.04).
(g) So
long as any Bank is a Defaulting Bank, Hedging Obligations owing to such Bank or its Affiliates arising from transactions entered
into after it becomes a Defaulting Bank, shall be excluded from “Hedging Obligations” for the purpose of Section 4.08.
Section
5.
Yield Protection, Etc.
5.01 Additional
Costs.
(a) If
the adoption of or any change in any Requirement of Law (including, without limitation, any Regulatory Change) or in the interpretation
or application thereof or compliance by any Bank with any request or directive (whether or not having the force of law) from any
central bank or other Governmental Authority made subsequent to the date hereof (including, without limitation, any Regulatory
Change):
(A) does
or shall subject any Bank to any Tax of any kind whatsoever (other than Indemnified Taxes or Excluded Taxes) with respect to this
Agreement, any Note, any Eurodollar Loan made by it, any Commitment, any Letter of Credit issued or participated in by it or any
participation by it in any Swing Line Loan, or its deposits, reserves, other liabilities or capital attributable thereto;
(B) does
or shall impose, modify or hold applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement
against assets held by, deposits or other liabilities in or for the account of, advances, loans or other extensions of credit by
or participated in by, or any other acquisition of funds by, any office of such Bank which is not otherwise included in the determination
of the Eurodollar Base Rate; or
(C) does
or shall impose on such Bank any other condition, cost or expense;
and the result of any of the foregoing is to increase the cost
to such Bank of making, Converting into, Continuing or maintaining Eurodollar Loans or maintaining its obligation to make such
Loans or issuing, providing and maintaining Letters of Credit or holding an interest in the Issuing Bank’s obligations thereunder
or of holding a participation interest or maintaining its obligation to hold such participation interests in Swing Line Loans,
or to reduce any amount receivable hereunder (whether of principal, interest or any other amount), then, in any such case, the
Company shall promptly, after receiving notice and the applicable certificate as specified in Section 5.01(d), pay such
Bank such additional amount or amounts as will compensate such Bank for such increased cost or reduced amount receivable.
(b) Intentionally
omitted.
(c) If
any Bank shall have determined that the adoption of or any change in any Requirement of Law regarding capital adequacy or liquidity
requirements (including, without limitation, any Regulatory Change) or in the interpretation or application thereof or compliance
by such Bank, its Applicable Lending Office or any Person controlling such Bank with any Requirement of Law regarding capital adequacy
(including, without limitation, any Regulatory Change) or with any request or directive regarding capital adequacy or liquidity
requirements (whether or not having the force of law) from any Governmental Authority made subsequent to the date hereof shall
have the effect of reducing the rate of return on such Bank’s or such Person’s capital as a consequence of this Agreement,
its obligations or Commitments hereunder or under Letters of Credit (issued by it or in which it has a participation interest)
or in respect of its Loans or participations in Swing Line Loans, to a level below that which such Bank or such Person would have
achieved but for such adoption, change or compliance (taking into consideration such Bank’s or such Person’s policies
with respect to capital adequacy), then from time to time, the Company shall promptly after receiving notice and the applicable
certificate as specified in Section 5.01(d), pay to such Bank or such other Person such additional amount or amounts as
will compensate such Bank for such reduction. In determining such amount or amounts, any Bank may use any method of averaging and
attribution as it shall deem applicable.
(d) If
any Bank becomes entitled to claim any additional amounts pursuant to this Section 5.01, it shall promptly notify the Company
(with a copy to the Agent) of the event by reason of which it has become so entitled. Failure or delay on the part of any Bank
to demand compensation pursuant to this Section 5.01 shall not constitute a waiver of such Bank’s right to demand such compensation;
provided that the Company shall not be required to compensate such Bank pursuant to this Section 5.01 for any increased
costs or reductions incurred more than 270 days prior to the date that such Bank gives notice to the Company of the applicable
Requirement of Law (plus any additional period of retroactive effect of the applicable Requirement of Law) giving rise to such
increased costs or reductions and of the Bank’s intention to claim compensation pursuant to this Section 5.01. A certificate
as to any additional amounts payable pursuant to this Section 5.01 submitted by such Bank to the Company (with a copy to
the Agent) shall be conclusive in the absence of manifest error. The agreements in this Section 5.01 shall survive the termination
of this Agreement and the payment of the Loans, Reimbursement Obligations and all other amounts payable hereunder.
(e) The
Agent and each Bank hereby agrees that, upon the occurrence of any circumstances entitling the Agent or such Bank to additional
amounts pursuant to this Section 5.01, the Agent or such Bank shall use reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions), at the sole expense of the Company, to designate a different Applicable Lending
Office if the making of such a change would avoid the need for, or materially reduce the amount of, any such additional amounts
that may thereafter accrue and would not, in the sole judgment of the Agent or such Bank, be otherwise disadvantageous to the Agent
or such Bank in any respect.
(f) If
any Bank demands compensation under this Section 5.01, or if the Company is required to pay any additional amount to any Bank or
any Governmental Authority for the account of any Bank pursuant to this Section 5.01, the Company may require such Bank to assign
all right, title and interest that it may have in, and its participations in, all Loans, Letters of Credit and any other Obligations
of the Company under this Agreement and the Basic Documents to another Bank (if another Bank will consent to purchase such right,
title and interest and participations) or another Person in accordance with and subject to the terms of Section 11.06 of this Agreement,
for a purchase price equal to 100% of the principal amount of such Obligations plus the amount of any interest and
fees accrued and owing to such Bank as of the date of such assignment plus any other amounts payable under this Agreement (including
under this Section 5.01 and Section 5.04 hereof).
5.02 Inability
to Determine Interest Rate.
If prior to the first day of any Interest Period:
(a) (i) the Agent shall have determined (which determination shall be conclusive and binding upon the Company) that, by reason of circumstances
affecting the relevant market, adequate and reasonable means do not exist for ascertaining the relevant Eurodollar Rate for such
Interest Period, or
(i) the
Agent shall have received notice from the Required Banks that the relevant Eurodollar Rate determined or to be determined for such
Interest Period will not adequately and fairly reflect the cost to such Banks (as conclusively certified by such Banks) of making
or maintaining their affected Loans during such Interest Period,
then the Agent shall give telecopy or telephonic notice thereof
to the Company and the relevant Banks as soon as practicable thereafter.
(b) If
such notice is given under clause (a)(i) or (ii) above with respect to the Eurodollar Rate applicable to Loans, (x) any such Eurodollar
Loan requested to be made on the first day of such Interest Period shall be made as a Base Rate Loan, (y) any Base Rate
Loans that were to have been Converted on the first day of such Interest Period to Eurodollar Loans shall continue as Base Rate
Loans and (z) any outstanding Eurodollar Loans shall be Converted to Base Rate Loans on the first day of such Interest Period.
Until such notice has been withdrawn by the Agent, no further Eurodollar Loans shall be made or Continued as such, nor shall the
Company have the right to Convert Base Rate Loans to Eurodollar Loans.
(c) The
Agent shall withdraw (i) any such notice pursuant to subsection (a)(i) of this Section 5.02 above if the Agent determines
that the relevant circumstances have ceased to exist and (ii) any such notice pursuant to subsection (a)(ii) of this Section
5.02 upon receipt of notice from the Required Banks the relevant circumstances described in such subsection (a)(ii) have ceased
to exist.
5.03 Illegality.
Notwithstanding any other provision of this Agreement, in the event that it becomes unlawful for any Bank or its Applicable Lending
Office to honor its obligation to make or maintain Eurodollar Loans hereunder, then such Bank shall promptly notify the Company
(with a copy to the Agent) thereof and such Bank’s obligation to make or Continue, or to Convert Loans of any other Type
into, Eurodollar Loans shall be suspended until such time as the Bank may again make and maintain Eurodollar Loans and such Bank’s
Loans then outstanding as Eurodollar Loans, if any, shall be Converted automatically to Base Rate Loans on the respective last
days of the then current Interest Periods with respect to such Loans or within such earlier period as required by Law.
5.04 Break
Funding Compensation. The Company shall pay to the Agent for account of each Bank, upon the request of such Bank (through the
Agent), such amount or amounts as shall be sufficient (in the reasonable opinion of such Bank) to compensate it for any loss, cost
or expense (including, without limitation, any loss or expense incurred by reason of the liquidation or reemployment of deposits
or other funds acquired by such Bank) that such Bank determines is attributable to (a) any failure by the Company in making a borrowing
of, Conversion into or Continuation of Eurodollar Loans after the Company has given a notice requesting the same in accordance
with the provisions of this Agreement, (b) any failure by the Company in making any prepayment after the Company has given a notice
thereof in accordance with the provisions of this Agreement or (c) the making of a payment or prepayment of Eurodollar Loans (whether
optional or mandatory, whether from proceeds of Collateral or otherwise) on a day which is not the last day of an Interest Period
with respect thereto (including, without limitation, in connection with Section 2.05(d) hereof). Without limiting the effect of
the preceding sentence, such compensation shall include, with respect to Eurodollar Loans, an amount equal to the excess, if any,
of (i) the amount of interest that otherwise would have accrued on the principal amount so paid, prepaid, Converted or not
borrowed, prepaid or Converted for the period from the date of such payment, prepayment, Conversion or failure to borrow, prepay
or Convert to the last day of the then current Interest Period for such Loan (or, in the case of a failure to borrow, prepay or
Convert, the Interest Period for such Loan that would have commenced on the date specified for such borrowing) at the applicable
rate of interest for such Loan provided for herein over (ii) the amount of interest that otherwise would have accrued
on such principal amount at a rate per annum equal to the interest component of the amount such Bank would have bid in the London
interbank market for Dollar deposits of leading banks in amounts comparable to such principal amount and with maturities comparable
to such period (as reasonably determined by such Bank). A certificate as to any amounts payable pursuant to this Section submitted
to the Company by any Bank shall be presumptively correct in the absence of manifest error. This covenant shall survive the termination
of this Agreement and the payment of the Loans, Reimbursement Obligations and all other amounts payable hereunder.
5.05 Intentionally
omitted.
5.06 Taxes.
(a) Payments
Free of Taxes. Any and all payments by or on account of any obligation of any Obligor under any Basic Document shall be made
free and clear of and without deduction or withholding for any Indemnified Taxes or Other Taxes, provided that if any Obligor shall
be required by applicable Law to deduct any Indemnified Taxes (including any Other Taxes) from such payments, then: (i) the sum
payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional
sums payable under this Section) the Agent, or Bank, as the case may be, receives an amount equal to the sum it would have received
had no such deductions been made; (ii) the applicable Obligor shall make such deductions; and (iii) the applicable Obligor shall
timely pay the full amount deducted to the relevant Governmental Authority in accordance with applicable Law.
(b) Payment
of Other Taxes by the Company. Without limiting the provisions of paragraph (a) above, the Company shall timely pay any Other
Taxes to the relevant Governmental Authority in accordance with applicable Law or, at the option of the Agent, timely reimburse
it for the payment of Other Taxes.
(c) Indemnification
by the Company. The Company shall indemnify the Agent and each Bank, within 10 days after demand therefor, for the full amount
of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts
payable under this Section) paid or payable by the Agent or such Bank, as the case may be, or required to be withheld or deducted
from a payment to the Agent or such Bank, as the case may be, and any penalties, interest and reasonable expenses arising therefrom
or with respect thereto, whether or not such Indemnified Taxes or Other 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 Company by a
Bank (with a copy to the Agent), or by the Agent on its own behalf or on behalf of a Bank, shall be conclusive absent manifest
error.
(d) Indemnification
by the Banks. Each Bank shall severally indemnify the Agent, within 10 days after demand therefor, for (i) any Indemnified
Taxes attributable to such Bank (but only to the extent that the Company has not already indemnified the Agent for such Indemnified
Taxes and without limiting the obligation of the Company to do so) and (ii) any Excluded Taxes attributable to such Bank, in each
case, that are payable or paid by the Agent in connection with any Basic 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 Bank by the Agent shall be conclusive absent manifest
error. Each Bank hereby authorizes the Agent to set off and apply any and all amounts at any time owing to such Bank under any
Basic Document or otherwise payable by the Agent to the Bank from any other source against any amount due to the Agent under this
paragraph (d).
(e) Evidence
of Payments. As soon as practicable after any payment of Indemnified Taxes or Other Taxes by any Obligor to a Governmental
Authority, the Company shall deliver to the Agent the original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory
to the Agent.
(f)
Status of Banks. (i) Any Bank that is entitled to an exemption from or reduction
of withholding Tax with respect to payments made under any Basic Document shall deliver to the Company and the Agent, at the
time or times reasonably requested by the Company or the Agent, such properly completed and executed documentation reasonably
requested by the Company or the Agent as will permit such payments to be made without withholding or at a reduced rate of
withholding. In addition, any Bank, if reasonably requested by the Company or the Agent, shall deliver such other
documentation prescribed by applicable law or reasonably requested by the Company or the Agent as will enable the Company or
the Agent to determine whether or not such Bank 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 (f)(ii)(A), (ii)(B) and (ii)(D) below) shall not be
required if in the Bank’s reasonable judgment such completion, execution or submission would subject such Bank to any
material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Bank.
(ii) Without
limiting the generality of the foregoing,
(A) any
Bank that is a U.S. Person shall deliver to the Company and the Agent on or prior to the date on which such Bank becomes a Bank
under this Agreement (and from time to time thereafter upon the reasonable request of the Company or the Agent), executed originals
of IRS Form W-9 certifying that such Bank is exempt from U.S. federal backup withholding tax;
(B) any
Foreign Bank shall, to the extent it is legally entitled to do so, deliver to the Company and the Agent (in such number of copies
as shall be requested by the recipient) on or prior to the date on which such Foreign Bank becomes a Bank under this Agreement
(and from time to time thereafter upon the reasonable request of the Company or the Agent), whichever of the following is applicable:
(i) in
the case of a Foreign Bank 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 Basic Document, executed originals of IRS Form W-8BEN 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 Basic Document, IRS Form W-8BEN 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;
(ii) executed
originals of IRS Form W-8ECI;
(iii) in
the case of a Foreign Bank claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x)
a certificate to the effect that such Foreign Bank is not a “bank” within the meaning of Section 881(c)(3)(A) of the
Code, a “10 percent shareholder” of the Company within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled
foreign corporation” described in Section 881(c)(3)(C) of the Code (in form and substance satisfactory to the Agent, a “U.S.
Tax Compliance Certificate”) and (y) executed originals of IRS Form W-8BEN; or
(iv) to
the extent a Foreign Bank is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS
Form W-8BEN, a U.S. Tax Compliance Certificate, IRS Form W-9, and/or other certification documents from each beneficial owner,
as applicable; provided that if the Foreign Bank is a partnership and one or more direct or indirect partners of such Foreign
Bank are claiming the portfolio interest exemption, such Foreign Bank may provide a U.S. Tax Compliance Certificate on behalf of
each such direct and indirect partner;
(C) Delivery
of Forms. Each Foreign Bank shall, to the extent it is legally entitled to do so, deliver to the Company and the Agent (in
such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Bank becomes a Bank
under this Agreement (and from time to time thereafter upon the reasonable request of the Company or the 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 the Company
or the Agent to determine the withholding or deduction required to be made; and
(D) FATCA.
If a payment made to a Bank hereunder would be subject to United States Federal withholding tax imposed by FATCA if such Bank were
to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b)
of the Code, as applicable), such Bank shall deliver to the Company and the Agent, at the time or times prescribed by Law and at
such time or times reasonably requested by the Company or the Agent, such documentation prescribed by applicable Law (including
as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Company or
the Agent as may be necessary for the Company or the Agent to comply with its obligations under FATCA, to determine that such Bank
has complied with such Bank’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.
In addition, each Bank shall severally indemnify the Agent and Company for any Indemnified Tax attributable to such Bank or other
penalties related thereto imposed in connection with any “withholdable payment,” as defined in Section 1473 of the
Code, made to a Bank that is a Foreign Bank that has failed to comply with the reporting requirements or otherwise qualify for
an exemption under FATCA.
(g) Each
Bank agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect,
it shall update such form or certification or promptly notify the Company and the Agent in writing of its legal inability to do
so.
(h) Nothing
contained in this Section 5.06 shall require any Bank (or any of its permitted assigns or participants hereunder) or the
Agent to make available any of its tax returns or any other information that it deems to be confidential or proprietary.
(i)
If any Person 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 pursuant to this Section 5.06 (including by the
payment of additional amounts pursuant to this Section 5.06), it shall pay to the indemnifying party an amount equal to
such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise
to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other
than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the
written request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this
Section 5.06(i) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the
event that such indemnified party is required to repay such refund to such Governmental Authority or otherwise.
Notwithstanding anything to the contrary in this Section 5.06(i), in no event will the indemnified party be required to
pay any amount to an indemnifying party pursuant to this Section 5.06(i) the payment of which would place
the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax
subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the
indemnification payments or additional amounts with respect to such Tax had never been paid.
Section
6.
Conditions Precedent.
6.01 Obligations
to Extend Credit. The obligation of any Bank to make any extension of credit hereunder (whether by making a Loan or issuing
a Letter of Credit) is subject to the conditions precedent that the Agent has received the following documents, each of which shall
be reasonably satisfactory to the Agent (and to the extent specified below to each Bank) in form and substance on or before the
Closing Date:
(a) Executed
Counterparts. From each party hereto either (i) a counterpart of this Agreement signed and delivered on behalf of such party
or (ii) written evidence (which may include telecopy or other electronic transmission of a signed signature page to this Agreement)
that such party has signed and delivered a counterpart of this Agreement.
(b) Existing
Credit Agreement. Written evidence that RBS Citizens, National Association and JPMorgan Chase Bank, N.A. have been repaid (by
assignment or otherwise) all “Obligations” (under and defined in the Existing Credit Agreement) and that the “Credit
Exposure” (under and as defined in the Existing Credit Agreement) shall have been reduced to an amount not more than $150,000,000.
(c) Intercreditor
Agreement. The Intercreditor Agreement duly executed by the Uncommitted Facility Agent.
(d) Governing
Documents. Certified copies of the charter and by-laws (or equivalent documents) of each Obligor, and of all corporate authority
for each Obligor (including board of director resolutions, evidence of the incumbency of officers and signature specimens of officers)
with respect to the execution, delivery and performance of the Basic Documents and each other document to be delivered by each
Obligor from time to time in connection herewith and the extensions of credit hereunder (and the Agent and each Bank may conclusively
rely on such certificates until it receives notice in writing from the Company to the contrary).
(e) Good
Standing. Evidence of the existence, good standing and authority to transact business for (i) the Company from the Secretary
of State of New Jersey, (ii) each Obligor from the Secretary of State of the jurisdiction of incorporation of such Obligor and
(iii) each Obligor from the Secretary of State of each other jurisdiction in which the failure of such Obligor to be in good standing
or to have the authority to transact business would result in a Material Adverse Effect.
(f)
Officer’s Certificate. A certificate of a senior officer of the Company, dated the Closing
Date, to the effect set forth in clauses (a), (b) and (c) of Section 6.02 hereof.
(g) Borrowing
Base Certificate. A Borrowing Base Certificate as of May 31, 2014, prepared on a pro forma basis, showing that, after giving
effect to the initial Revolving Loans to be made and the initial Letters of Credit to be issued or outstanding on the Closing Date,
the Borrowing Base will not be less than the Credit Exposure.
(h) Opinion
of Counsel to the Company. An opinion addressed to the Agent and each of the Banks and dated the Closing Date and covering
such matters as the Agent may reasonably request from such counsel to each Obligor.
(i)
Security Documents. Counterparts of the Subsidiary Guarantee executed by each
Domestic Subsidiary, counterparts of an amendment (in form and substance acceptable to the Agent) to the Share Pledge
Agreement and counterparts of the Security Agreement signed on behalf of the Obligors party thereto, together with the
following:
(i) certificates
representing all the outstanding Capital Securities of each Subsidiary owned by or on behalf of any Obligor as of the Closing Date
(except that certificates representing Capital Securities of any foreign Subsidiary may be limited to 65% of the outstanding equity
interest of such foreign Subsidiary), and stock powers and instruments of transfer, endorsed in blank, with respect to such stock
certificates;
(ii) the
results of the search of the UCC (or equivalent) and tax Liens and judgment Liens made with respect to the Obligors and any predecessor
company identified pursuant to the Security Agreement in each jurisdiction (A) in which each Obligor and each predecessor company
is organized and (B) in respect of tax Liens and judgment Liens, where each Obligor and each predecessor company has its chief
executive office or has had its chief executive office within the last four months prior to the Closing Date; and copies of the
financing statements (or other documents) disclosed by such search and evidence that the Liens indicated by such financing statements
(or similar documents) are permitted by Section 8.06 or have been released or, simultaneously with the initial extensions of credit
hereunder, will be released;
(iii) subject
to the terms of the Security Agreement, (A) such other executed documentation as the Agent may deem necessary to perfect and protect
its Liens, including intellectual property assignments for all intellectual property pledged as Collateral, subordination agreements
and control agreements with respect to all deposit, commodity and security account and (B) all other Collateral the possession
of which is necessary to perfect the Lien therein; and
(iv) written
evidence that appropriate UCC financing statements necessary to protect the Liens under the Security Agreement have been recorded.
(j)
Insurance. Certificates of insurance summarizing the insurance
policies of the Obligors required by the Basic Documents and reflecting the Agent as additional insured under all liability
policies and as additional insured and loss payee with respect to all casualty policies covering Collateral and loss payee on
all credit insurance policies.
(k) No
Material Adverse Effect. Evidence that no Material Adverse Effect has occurred since December 31, 2013, through the Closing
Date.
(l)
Fees and Expenses. Evidence that the Company has paid to the Agent and the Banks all reasonable and
documented costs, fees and expenses then due including such upfront and agency fees as the Company has agreed to pay to any
Bank or the Agent in connection herewith and the reasonable and documented fees and expenses of Emmet, Marvin & Martin,
LLP, counsel to the Agent, in connection with the negotiation, preparation, execution and delivery of this Agreement and the
other Basic Documents (to the extent that statements for such fees and expenses have been delivered to the Company).
(m) Intentionally
omitted.
(n) Request
to Honor Oral and Electronic Instructions. A completed request to honor oral and electronic instructions, executed by a senior
officer of the Company.
(o) Other
Documents. Such other documents as the Agent or any Bank or their counsel may reasonably request.
The Agent shall notify the Company and
the Banks when all documents required to be delivered as a condition to the effectiveness of the obligations of the Banks have
been delivered and such notice shall be conclusive and binding.
6.02 Initial
and Subsequent Extensions of Credit. The obligation of any Bank to make any Loan, issue any Letter of Credit or otherwise extend
any credit to the Company upon the occasion of each borrowing, issuance or other extension of credit hereunder (including the initial
Loan, Letter of Credit or other extension of credit) is subject to the further conditions precedent that, both immediately prior
to the making of such Loan, issuance of such Letter of Credit or other extension of credit and also after giving effect thereto
and to the intended use thereof: (a) no Default exists; (b) the representations and warranties made by the Company in
Section 7 hereof, and by each Obligor in each of the other Basic Documents to which it is a party, shall be true and correct
in all material respects on and as of the date of the making of such Loan, issuance of such Letter of Credit or other extension
of credit (except to the extent that such representations and warranties specifically refer to an earlier date, in which case they
shall be true and correct as of such earlier date) with the same force and effect as if made on and as of such date (or, if any
such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date); and (c) the
aggregate outstanding principal amount of the Credit Exposure shall not exceed the lesser of (x) the Borrowing Base and (y) the
Revolving Loan Commitment. Each Borrowing Request or request for the issuance of a Letter of Credit by the Company hereunder shall
constitute a certification by the Company to the effect set forth in the preceding sentence (both as of the date of such notice
or request and, unless the Company otherwise notifies the Agent prior to the date of such borrowing or issuance as of the date
of such borrowing or issuance).
Section
7.
Representations and Warranties.
The Company represents
and warrants to the Agent and the Banks that:
7.01 Corporate
Existence. Each Obligor: (a) is a corporation, limited liability company, partnership or other entity duly organized, validly
existing and in good standing under the Laws of the jurisdiction of its organization; (b) has all requisite corporate or other
power, and has all material governmental licenses, authorizations, consents and approvals necessary to own its assets and carry
on its business as now being or as proposed to be conducted; and (c) is qualified to do business and is in good standing in
all jurisdictions in which the nature of the business conducted by it makes such qualification necessary and where failure so to
qualify could (either individually or in the aggregate) have a Material Adverse Effect.
7.02 Financial
Condition. The Company has heretofore furnished to each of the Banks the balance sheet of the Company as at December 31, 2013
and the related statements of operation, change in stockholder’s equity and cash flow for the fiscal year ended on said date,
with the opinion thereon of EisnerAmper LLP. Such financial statements fairly present the financial condition of the Company as
at said dates and the results of its operations for the fiscal year ended on said date, all in accordance with GAAP applied on
a consistent basis. The Company does not have on the date hereof any material contingent liabilities, liabilities for taxes, unusual
forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments, except as referred to or
reflected or provided for in said balance sheets as at said date. Since December 31, 2013, there has been no material adverse change
in the financial condition, operations, business or prospects of the Company and its Subsidiaries on a consolidated basis from
that set forth in said financial statements as at said date.
7.03 Litigation.
There are no legal or arbitral proceedings, or any proceedings by or before any governmental or regulatory authority or agency,
now pending or (to the knowledge of the Company) threatened in writing against the Company or any other Obligor that, if adversely
determined could (either individually or in the aggregate) have a Material Adverse Effect.
7.04 No
Breach. None of the execution and delivery of this Agreement and the other Basic Documents, the consummation of the transactions
herein and therein contemplated or compliance with the terms and provisions hereof and thereof will conflict with or result in
a breach of, or require any consent under, the charter or by-laws (or similar governing documents) of any Obligor, or any applicable
Law or regulation, or any order, writ, injunction or decree of any court or Governmental Authority or agency, or any agreement
or instrument to which any Obligor is a party or by which any of them or any of their Property is bound or to which any of them
is subject, or constitute a default under any such agreement or instrument, or (except for the Liens created pursuant to the Security
Documents) result in the creation or imposition of any Lien upon any Property of any Obligor pursuant to the terms of any such
agreement or instrument.
7.05 Action.
Each Obligor has all necessary corporate power, authority and legal right to execute, deliver and perform its obligations under
each of the Basic Documents to which it is a party; the execution, delivery and performance by each Obligor of each of the Basic
Documents to which it is a party have been duly authorized by all necessary corporate action on its part (including any required
shareholder approvals); and this Agreement, the Notes (if any), the Subsidiary Guarantee and each other Basic Document has been
duly and validly executed and delivered by each Obligor party thereto and constitutes its legal, valid and binding obligation,
enforceable against each applicable Obligor in accordance with its terms.
7.06 Approvals.
No authorizations, approvals or consents of, and no filings or registrations with, any governmental or regulatory authority or
agency, or any securities exchange, are necessary for the execution, delivery or performance by any Obligor of the Basic Documents
to which it is a party or for the legality, validity or enforceability hereof or thereof, except for filings and recordings in
respect of the Liens created pursuant to the Security Documents.
7.07 Use
of Credit. The Company is not engaged principally, or as one of its important activities, in the business of extending credit
for the purpose, whether immediate, incidental or ultimate, of buying or carrying Margin Stock, and no part of the proceeds of
any extension of credit hereunder will be used to buy or carry any Margin Stock.
7.08 ERISA.
Each “employee benefit plan”, as defined under Section 3(3) of ERISA, established or maintained by the Company has
been operated in material compliance with ERISA and the Code. At no time during the preceding five years has either the Company
or any ERISA Affiliate (i) established or maintained a Plan, or (ii) had any obligations to make contributions to a Multiemployer
Plan.
7.09 Taxes.
The Company has filed, or has valid extensions for the filing of, all Federal income tax returns and all other material tax returns
that are required to be filed by it and have paid all taxes due pursuant to such returns or pursuant to any assessment received
by the Company. The charges, accruals and reserves on the books of the Company in respect of taxes and other governmental charges
are, in the opinion of the Company, adequate. The Company has not given or been requested to give a waiver of the statute of limitations
relating to the payment of Federal, state, local and foreign taxes or other impositions.
7.10 Indebtedness
and Investments.
(a) Indebtedness.
Schedule I hereto is a complete and correct list, as of the date of this Agreement, of each credit agreement, loan agreement, indenture,
purchase agreement, guarantee, letter of credit or other arrangement providing for or otherwise relating to any Indebtedness or
any extension of credit (or commitment for any extension of credit) to, or guarantee by, the Company in each case with an aggregate
principal or face amount in excess of $100,000, and any Subsidiary of the Company, and the aggregate principal or face amount outstanding
or that may be outstanding under each such arrangement is correctly described in said Schedule I.
(b) Investments.
Schedule II hereto is a complete and correct list, as of the date of this Agreement, of all Investments held by the Company and
each Subsidiary in any Person, in each case with an aggregate principal or face amount in excess of $100,000, and, for each such
Investment, the nature of such Investment.
7.11 True
and Complete Disclosure. The information, reports, financial statements, exhibits and schedules furnished in writing by or
on behalf of any Obligor to the Agent or any Bank in connection with the negotiation, preparation or delivery of this Agreement
and the other Basic Documents or included herein or therein or delivered pursuant hereto or thereto, when taken as a whole do not
contain any untrue statement of material fact or omit to state any material fact necessary to make the statements herein or therein,
in light of the circumstances under which they were made, not misleading. All written information furnished after the date hereof
by the Company to the Agent and the Banks in connection with this Agreement and the other Basic Documents and the transactions
contemplated hereby and thereby will be true, complete and accurate in every material respect, or (in the case of projections)
based on reasonable estimates, on the date as of which such information is stated or certified.
7.12 Subsidiaries.
Set forth on Schedule III is a complete and correct list of all of the Subsidiaries of the Company as of the date hereof, together
with, for each such Subsidiary: (a) the jurisdiction of organization of such Subsidiary; (b) each Person holding Capital Securities
in such Subsidiary; (b) the authorized, issued and outstanding Capital Securities issued by such Subsidiary; (c) the Capital Securities
held by each such Person; and (d) the percentage of ownership of such Subsidiary represented by such Capital Securities. Each of
the Company and the Subsidiaries owns, free and clear of Liens (other than Liens created pursuant to the Security Documents), and
has the unencumbered right to vote, all outstanding Capital Securities in each Person shown to be held by it on Schedule III and
all of the issued and outstanding Capital Securities of each such Person organized as a corporation or limited liability company
is validly issued, fully paid and nonassessable. As of the date hereof: (x) there are no outstanding equity rights with respect
to any Subsidiary and (y) there are no outstanding obligations of any Subsidiary to repurchase, redeem, or otherwise acquire any
Capital Securities or other equity rights of any Subsidiary nor are there any outstanding obligations of any Subsidiary to make
payments to any Person, such as “phantom stock” payments, where the amount thereof is calculated with reference to
the fair market value or equity value of any Subsidiary.
7.13 Property.
The Company and each of its Subsidiaries has good title to, or valid leasehold interests in, all its real and personal property
material to its business, subject only to Liens permitted by Section 8.06 and except for minor defects in title that do not interfere
with its ability to conduct its business as currently conducted or to utilize such properties for their intended purposes. The
Company and each of its Subsidiaries owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual
property material to its business, and the use thereof by the Company and the Subsidiaries does not infringe upon the rights of
any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect. To the knowledge of the Company, no claim has been asserted nor is pending by any Person challenging
or questioning the use of any such trademarks, tradenames, copyrights, patents and other intellectual property or the validity
or effectiveness of any such trademarks, tradenames, copyrights, patents and other intellectual property that, if adversely determined
could (either individually or in the aggregate) have a Material Adverse Effect.
7.14 Compliance
with Laws and Agreements. The Company and each of its Subsidiaries are each in compliance with all Requirements of Law, regulations
and orders of any Governmental Authority applicable to it or its property and all indentures, agreements and other documents binding
upon it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected
to result in a Material Adverse Effect.
7.15 Investment
Company Status. Neither the Company nor any of its Subsidiaries is an “investment company” as defined in, or subject
to regulation under, the Investment Company Act of 1940 (as amended).
7.16 OFAC
Money Laundering Representations. No Obligor nor any of its Affiliates is in violation of any Laws relating to sanctions, terrorism
or money laundering (“Anti-Terrorism Laws”), including regulations administered by the United States Treasury
Department’s Office of Foreign Asset Control (“OFAC”) and the Executive Order No. 13224 on Terrorist Financing,
effective September 24, 2001 (the “Executive Order”), and the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56. No Obligor nor any of its Affiliates
or their respective brokers or other agents acting or benefiting in any capacity in connection with the Loans or Letters of Credit,
is any of the following (each such Person, a “Sanctioned Person”):
(a) a
Person or country that is listed in the annex to, or is otherwise subject in the prohibitions contained in, the Executive Order
or the OFAC regulations or that is subject to sanction by the U.S. State Department or the European Union;
(b) a
Person owned or controlled by, or acting for or on the behalf of, any Person that is listed in the annex to, or is otherwise subject
to the prohibitions contained in, the Executive Order or the OFAC regulations or other Anti-Terrorism Laws;
(c) a
Person with which the Agent or any Bank is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism
Law;
(d) a
Person that commits, threatens or conspires to commit or supports “terrorism” as defined in the Executive Order or
the OFAC regulations;
(e) a
Person that is (i) named on the most current list of “Specially Designated Nationals and Blocked Persons” published
by OFAC at its official website or any replacement website or other replacement official publication list or (ii) similarly designated
in any comparable list published by the United Nations or any Governmental Authority of the European Union, the Netherlands, the
United Kingdom or the French Republic; or
(f)
a Person located, organized or resident in a country or territory that is, or whose government is, the subject of
sanctions including, without limitation, Cuba, Iran, North Korea, Sudan and Syria.
No Obligor nor any of its brokers or other
agents acting in any capacity in connection with the Loans or Letters of Credit (x) conducts any business or engages in making
or receiving any contribution of funds, goods or services to or for the benefit of any Sanctioned Person, (y) deals in, or otherwise
engages in any transaction relating to, any property or interests in property blocked pursuant to the Executive Order or the OFAC
regulations, or (z) engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or
avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law.
No part of the proceeds
of the Loans or Letters of Credit will be used, directly or indirectly, for any payments to any Sanctioned Person, governmental
official or employee, political party, official of a political party, candidate for political office, or anyone else acting in
an official capacity, (x) in order to obtain, retain or direct business or obtain any improper advantage, in violation of OFAC,
Anti-Terrorism Laws, regulations of the European Union or the United States Foreign Corrupt Practices Act of 1977, as amended or
(y) which could result in the imposition of sanctions against any Person (including any Bank).
7.17 Insurance.
The Company and each of its Subsidiaries maintain with financially sound and reputable insurers, insurance with respect to its
properties and business against such casualties and contingencies and in such amounts as are usually carried by businesses engaged
in similar activities as the Company and such Subsidiaries and located in similar geographic areas in which the Company and such
Subsidiaries operate.
7.18 Solvency.
On the Closing Date and immediately following the making of each Loan made, and issuance of each Letter of Credit issued, on the
Closing Date and after giving effect to the application of the proceeds of such Loans and the issuance of such Letter of Credit:
(a) the fair value of the assets of each Obligor, at a fair valuation, will exceed its debts and liabilities, subordinated,
contingent or otherwise; (b) the present fair saleable value of the property of each Obligor will be greater than the amount
that will be required to pay the probable liability of its debts and other liabilities, subordinated, contingent or otherwise,
as such debts and other liabilities become absolute and matured; (c) each Obligor will be able to pay its debts and liabilities,
subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (d) each Obligor will
not have unreasonably small capital with which to conduct the business in which it is engaged as such business is now conducted
and is proposed to be conducted following the Closing Date. As used in this Section, the term “fair value” means the
amount at which the applicable assets would change hands between a willing buyer and a willing seller within a reasonable time,
each having reasonable knowledge of the relevant facts, neither being under any compulsion to act, with equity to both and “present
fair saleable value” means the amount that may be realized if the applicable company’s aggregate assets are sold with
reasonable promptness in an arm’s length transaction under present conditions for the sale of a comparable business enterprises.
7.19 Intentionally
omitted.
7.20 Security
Documents. The provisions of each Security Document are effective to create in favor of the Agent for the ratable benefit of
the Secured Parties and the Agent a legal, valid and enforceable Lien in all right, title and interest of the applicable Obligor
in the Collateral.
7.21 Environmental
Matters.
(a) The
facilities and Properties owned or operated by the Company or any of its Subsidiaries (the “Relevant Properties”)
do not contain any Materials of Environmental Concern in amounts or concentrations which (i) constitute or constituted a material
violation of or (ii) could reasonably be expected to give rise to a material liability under, any Environmental Law.
(b) The
Company, the Relevant Properties and all operations of the Company at the Relevant Properties are in material compliance, and have,
for the duration of their ownership or operation by the Company and its Subsidiaries, been in material compliance with all applicable
Environmental Laws, and there is no contamination at, under or about the Relevant Properties. All Environmental Permits necessary
in connection with the operations of the Company and its Subsidiaries have been obtained and are in full force and effect except
for those Environmental Permits for which the failure to obtain could not reasonably be expected to result in a material obligation
under Environmental Laws.
(c) Neither
the Company nor any of its Subsidiaries have received any written notice of violation, alleged violation, non-compliance, liability
or potential liability regarding liability under or compliance with Environmental Laws with regard to any of the Relevant Properties
or its operations, except for matters that have been resolved.
(d) Materials
of Environmental Concern have not been transported or disposed of from the Relevant Properties by or on behalf of the Company or
its Subsidiaries in violation of, or to the Company’s knowledge, in a manner or to a location which could give rise to liability
under, any Environmental Law, nor have any Materials of Environmental Concern been generated, treated, stored or disposed of at,
on or under any of the Relevant Properties in violation of, or in a manner that could give rise to liability under, any applicable
Environmental Law.
(e) No
judicial proceeding or governmental or administrative action is pending or, to the knowledge of the Company, threatened in writing,
under any Environmental Law to which the Company or its Subsidiaries are or to the knowledge of the Company will be named as a
party with respect to the Relevant Properties or the operations of the Company or its Subsidiaries, nor are there any consent decrees,
consent orders, administrative orders or other orders, outstanding under any Environmental Law with respect to the Relevant Properties
or the operations of the company or its Subsidiaries.
(f)
The representations and warranties under this Section 7.21 are the exclusive representations and warranties of
the Company regarding Environmental Laws or Materials of Environmental Concern.
Section
8.
Covenants of the Company.
The Company covenants
and agrees with the Banks and the Agent that, so long as any Commitment, Loan or Letter of Credit Liability is outstanding and
until payment in full of all Loan Obligations (other than any contingent obligations for which no claim has been made or asserted):
8.01 Financial
Statements, Etc. The Company shall deliver to each of the Banks:
(a) Quarterly
Financial Statements. as soon as available and in any event within 45 days after the end of each of the first three quarterly
fiscal periods of each fiscal year of the Company, the following: (i) statements of operation, change in stockholder’s
equity and cash flow of the Company for such period and for the period from the beginning of the respective fiscal year to the
end of such period prepared on a consolidated basis, (ii) the related consolidated balance sheet of the Company as at the
end of such period, (iii) statements of operation of the Company for such period and for the period from the beginning of
the respective fiscal year to the end of such period prepared on a consolidating basis, and (iv) the related consolidating
balance sheet of the Company as at the end of such period, all accompanied by a certificate of a senior financial officer of the
Company, which certificate shall state that said financial statements fairly present the financial condition and results of operations
of the Company, in each case in accordance with GAAP, as at the end of, and for, such period (subject to normal year-end audit
adjustments);
(b) Annual
Financial Statements. as soon as available and in any event within 90 days after the end of each fiscal year of the Company
the following: (i) statements of operation, change in stockholder’s equity and cash flow of the Company for such fiscal
year and the related balance sheet as at the end of such fiscal year prepared on a consolidated basis, and accompanied by an unqualified
opinion thereon of independent certified public accountants acceptable to the Required Banks, which opinion shall state that said
audited financial statements fairly present the financial condition and results of operations of the Company as at the end of,
and for, such fiscal year in accordance with GAAP, (ii) statements of operation of the Company for such fiscal year prepared
on a consolidating basis, and (iii) the related consolidating balance sheet of the Company as at the end of such fiscal year,
all accompanied by a certificate of a senior financial officer of the Company, which certificate shall state that said consolidating
financial statements fairly present the financial condition and results of operations of the Company, in each case in accordance
with GAAP, as at the end of, and for, such period;
(c) ERISA.
Neither the Company nor any ERISA Affiliate shall (i) establish, maintain, or become obligated to contribute to a Plan, or (ii)
become obligated to make contributions to a Multiemployer Plan, except with the written consent of the Required Banks which consent
shall not be unreasonably withheld.
(d) Borrowing
Base Certificate. as soon as available and in any event within 10 Business Days after:
(i) the
end of each calendar month,
(ii) the
15th day of each calendar month, and
(iii) any
other accounting period for which any Bank reasonably requests a Borrowing Base Certificate,
a Borrowing Base Certificate as at the
end of such calendar month in respect of clause (i) above, the 15th day of such calendar month in respect of clause (ii) above,
and the last day of such accounting period in respect of clause (iii) above, together with reports, as of the last day of such
accounting period, setting forth the following: (A) the aging of the Receivables, specifying both the names of the respective account
debtors and the period of time each such account has been past due, (B) a list of the Eligible Receivables and Australian Receivables,
(C) a list of Tier I Eligible Receivables and Tier II Eligible Receivables showing insurance limits and aging, (D) if the Net Liquidating
Value of Eligible Brokerage Accounts is included in the Borrowing Base, then such information as the Agent may request to support
the value reported thereunder, (E) the amount and value of all Eligible Inventory, Eligible Unsold Inventory and Eligible
Inventory Ordered under L/C, in each case included in the Borrowing Base, by location and lot number, and (F) such other information
as the Agent may reasonably request.
Notwithstanding the foregoing and anything
contained in this Agreement to the contrary, at any time and from time to time during the period between required deliveries of
Borrowing Base Certificates, the Borrower may deliver an Interim Borrowing Base Certificate to the Agent, and, subject to the terms
of the Intercreditor Agreement and Section 8.27 hereof, the Borrowing Base as calculated therein shall for all purposes be the
Borrowing Base (as reduced or increased after giving effect to any reallocation pursuant to Section 2.3 of the Intercreditor Agreement),
and the Interim Borrowing Base Certificate shall for all purposes constitute the then applicable Borrowing Base Certificate until
the next scheduled Borrowing Base Certificate or Interim Borrowing Base Certificate is delivered, provided, that contemporaneously
with the delivery of any Interim Borrowing Base Certificate, the Company shall also deliver an Interim Borrowing Base Certificate
(as defined in the Uncommitted Credit Agreement) under the Uncommitted Credit Agreement.
(e) Collateral
Audit. from time to time at the request of the Agent (but, so long as no Default is continuing, no more than once in any fiscal
year), a report as of the end of any fiscal quarter, in form and substance satisfactory to the Required Banks, of an independent
collateral auditor satisfactory to the Required Banks (which may be, or be affiliated with, any of the Banks):
(i) with
respect to the Receivables and Inventory components included in the Borrowing Base as at the end of such fiscal quarter which report
shall indicate that, based upon a review by such auditors of the Receivables (including verification with respect to the amount,
aging, identity and credit of the respective account debtors and the billing practices of the Company) and Inventory (including
verification as to the value, location and respective types), the information set forth in the Borrowing Base Certificate delivered
by the Company as at the end of such fiscal quarter is accurate and complete in all material respects,
(ii) with
respect to the insurance policy or policies covering any of the Receivables or other Collateral, and
(iii) with
respect to the agreements entered into by the Company with its customers and its suppliers;
provided, that
notwithstanding the foregoing, the first such report shall be dated on or around the date which is 180 days after the date hereof
and delivered to the Agent within 45 days after such date.
(f)
Shareholder Material. promptly upon the mailing thereof to the shareholders of the
Company generally, copies of all financial statements, reports and proxy statements so mailed;
(g) Notice
of Default. promptly after the Company knows or has reason to believe that any Default has occurred, a notice of such Default
describing the same in reasonable detail and, together with such notice or as soon thereafter as possible, a description of the
action that the Company has taken or proposes to take with respect thereto;
(h) Uncommitted
Credit Agreement Documents. (i) contemporaneously with the delivery thereof by the Borrower under the Uncommitted Credit Agreement,
a copy of each Borrowing Base Certificate (as defined in the Uncommitted Credit Agreement) and Interim Borrowing Base Certificate
(as defined in the Uncommitted Credit Agreement) delivered thereunder, together with all supporting schedules and information delivered
therewith and (ii) promptly upon execution thereof, copies of all amendments and waivers to the Uncommitted Credit Agreement; and
(i)
Other Information. from time to time such other information regarding the financial condition,
operations, business or prospects of any Obligor as any Bank or the Agent may reasonably request, including, without
limitation, information relating to any Plan or Multiemployer Plan
for which consent has been given under Section 8.01(c).
The Company will furnish to each Bank,
at the time it furnishes each set of financial statements pursuant to paragraph (a) or (b) above, a certificate of a
senior financial officer of the Company in substantially the form of Exhibit G hereto (the “Compliance Certificate”):
(i) to the effect that no Event of Default is continuing (or, if any Event of Default is continuing, describing the same in
reasonable detail and describing the action that the Company has taken or proposes to take with respect thereto) and (ii) setting
forth in reasonable detail the computations necessary to determine whether the Company is in compliance with Sections 8.07, 8.08(d),
8.09, 8.10 and 8.11 hereof as of the end of the respective quarterly fiscal period or fiscal year.
8.02 Litigation.
The Company will promptly (and in any event no later than five Business Days after the Company has notice of the same) give to
each Bank notice of all legal or arbitral proceedings, and of all proceedings by or before any governmental or regulatory authority
or agency, and any material development in respect of such legal or other proceedings, affecting the Company or any of its Subsidiaries,
except proceedings that, if adversely determined, would not (either individually or in the aggregate) have a Material Adverse Effect.
Without limiting the generality of the foregoing, the Company will give to each Bank notice of the assertion in writing of any
environmental matter by any Person against, or with respect to the activities of, the Company or any of its Subsidiaries and notice
of any alleged violation of or non-compliance with any environmental Laws or any permits, licenses or authorizations, other than
any environmental matter or alleged violation that, if adversely determined, would not (either individually or in the aggregate)
have a Material Adverse Effect.
8.03 Existence,
Etc. The Company will and will cause each Obligor to:
(a) Existence.
preserve and maintain in full force and effect its legal existence and, except where such failure to preserve and maintain would
not (either individually or in the aggregate) have a Material Adverse Effect, all of its rights, privileges, licenses and franchises;
(b) Compliance
with Laws. comply in all material respects with all Requirements of Law and its organizational documents;
(c) Payment
of Obligations. pay and discharge its obligations, including all taxes, assessments and governmental charges or levies imposed
on it or on its income or profits or on any of its Property prior to the date on which penalties attach thereto, except for any
such obligations the payment of which is being contested in good faith and by proper proceedings and against which adequate reserves
in accordance with GAAP have been established and are being maintained;
(d) Maintain
Property. maintain all of its Properties used or useful in its business in good working order and condition, ordinary wear
and tear excepted;
(e) Books
and Records. keep adequate records and books of account, in which complete entries will be made in accordance with GAAP; and
(f)
Inspection. permit, at the sole cost and expense of the Company,
representatives of any Bank or the Agent, during normal business hours and upon reasonable prior notice (which such notice
shall not be required at any time an Event of Default exists), to examine, copy and make extracts from its books and records,
to inspect any of its Properties, and to discuss its business and affairs with its officers, all to the extent reasonably
requested by such Bank or the Agent (which notice shall specify the reasons (determined by such Bank or the Agent in its sole
discretion) for such examination, inspections or discussions), provided that unless an Event of Default shall have occurred
and be continuing, the Company shall not be responsible for the costs and expenses of more than two such inspections in each
year.
8.04 Insurance.
The Company will, and will cause its Subsidiaries to, maintain insurance with financially sound and reputable insurance companies,
and with respect to Property and risks of a character usually maintained by corporations engaged in the same or similar business
similarly situated, against loss, damage and liability of the kinds and in the amounts customarily maintained by such corporations,
including, in any event, marine and credit insurance policies covering the Company’s or its Subsidiaries’, as the case
may be, inventory and accounts receivable, respectively, in amounts, pursuant to policies, and issued by insurers, acceptable to
the Required Banks. The Company shall (i) cause all such insurance (other than workers’ compensation) to name the Agent as
loss payee (to the extent covering risk of loss or damage to tangible property or loss on accounts receivable) and as an additional
named insured as its interests may appear (to the extent covering loss or damage to tangible property or any other risk), and furnish
the Agent evidence of the same, and (ii) at least annually, furnish to the Agent certificates of insurance evidencing the existence
of all insurance required to be maintained pursuant to this Section 8.04 and the designation of the Agent as the loss payee
and/or additional named insured, as the case may be, thereunder to the extent required by this Section 8.04.
8.05 Prohibition
of Fundamental Changes. The Company will not and will not permit any other Obligor to enter into any transaction of merger
or consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), except that
any Subsidiary of the Company may be merged with or into the Company or any other Obligor, provided that in the case of
such merger, consolidation or amalgamation involving the Company, the Company shall be the continuing or surviving Person. The
Company will not and will not permit any other Obligor to acquire any business or material Property from, or capital stock of,
or be a party to any acquisition of, any Person except for purchases of inventory and other Property to be sold or used in the
ordinary course of business. The Company will not and will not permit any other Obligor to convey, sell, lease, transfer or otherwise
dispose of, in one transaction or a series of transactions, any part of its business or Property, whether now owned or hereafter
acquired (including, without limitation, receivables and leasehold interests) except the following:
(a) the
Conveyance of surplus, obsolete or worn out property in the ordinary course of business;
(b) the
sale of inventory in the ordinary course of business for fair market value;
(c) the
Conveyance of any property, business or assets not described in Sections 8.05(a), (b), (d), (e), (f) and (g); provided
that the aggregate book value of all such property, business or assets so Conveyed in any fiscal year of the Company shall not
exceed $2,000,000; provided further, that any such Conveyance shall not be permitted if a Default shall have occurred
and be continuing or would exist after giving effect to such Conveyance;
(d) the
use of cash in the ordinary course of its business;
(e) the
Conveyance for fair market value of any Investment acquired in connection with any transaction described in Section 8.08
for fair market value;
(f) Dividend
Payments to the extent permitted under Section 8.13 hereof; and
(g) the
granting of Liens not prohibited under this Agreement (but not the Conveyance of the property subject to such Lien).
8.06 Limitation
on Liens. The Company will not create, incur, assume or suffer to exist any Lien upon any of its Property and will not allow
any of its Subsidiaries to create, incur, assume or suffer to exist any Lien upon any of their respective Property, whether now
owned or hereafter acquired, except:
(a) Liens
created pursuant to the Security Documents;
(b) Liens
imposed by any Governmental Authority for taxes, assessments or charges not yet due or that are being contested in good faith and
by appropriate proceedings if adequate reserves with respect thereto are maintained on the books of the Company in accordance with
GAAP;
(c) carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course
of business that are not overdue for a period of more than 30 days or that are being contested in good faith and by appropriate
proceedings; and Liens securing judgments but only to the extent for an amount and for a period not resulting in an Event of Default
under Section 9(h) hereof;
(d) pledges
or deposits under worker’s compensation, unemployment insurance and other social security legislation;
(e) a
mortgage Lien granted by 6900 Quad Avenue, LLC over its warehouse facility located in Baltimore, Maryland, securing Indebtedness
permitted pursuant to Section 8.07(b) hereof
(f)
deposits to secure the performance of bids, trade contracts (other than for Indebtedness), leases,
statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the
ordinary course of business;
(g) intentionally
omitted;
(h) Liens
on Property of Imbali Metals Bvba securing the Imbali Facility;
(i)
Liens encumbering Inventory securing the Indebtedness permitted pursuant to Sections 8.07(f)(A) and
(B);
(j)
Liens securing Indebtedness permitted under Section 8.07(g) hereof, provided that such Liens are
subject to the terms of the Intercreditor Agreement;
(k) Liens
securing Indebtedness permitted under Section 8.07(h), provided that such Liens shall encumber only the capital assets financed
with such Indebtedness; and
(l)
Liens securing Indebtedness permitted under Section 8.07(i) below, provided that such Liens
shall encumber only assets of the Subsidiary which incurs such Indebtedness.
8.07 Indebtedness.
The Company will not, and will not allow any of its Subsidiaries to, create, incur or suffer to exist any Indebtedness except:
(a) Indebtedness
to the Banks hereunder;
(b) Indebtedness
of 6900 Quad Avenue, LLC under the Quad Avenue Loan Agreement in an aggregate amount not to exceed $1,300,000, the proceeds of
which have been used to finance the acquisition of the warehouse facility in Baltimore, Maryland, and any unsecured Guarantee by
the Company of such Indebtedness existing on the date hereof;
(c) intentionally
omitted;
(d) other
unsecured Indebtedness in an aggregate outstanding principal amount not to exceed at any time $250,000;
(e) Indebtedness
of Imbali Metals Bvba under the Imbali Facility and the Indebtedness of the Company under the Imbali Guarantee, so long as such
Indebtedness is subject to the Subordination Agreement;
(f)
the following Indebtedness, provided that (i) the aggregate amount of the Indebtedness permitted
under this clause (f) outstanding at any time shall not exceed $25,000,000 (calculated without duplication of any Guarantee
of such Indebtedness), (ii) at the time of the incurrence of such Indebtedness no Default shall exist or result
therefrom, and (iii) the Company shall have provided the Agent and each Bank a certificate of a financial officer of the
Company showing the Company’s compliance with the covenants set forth in Section 8.09 and 8.10 after giving effect to
such Indebtedness and certifying that at the time of the incurrence thereof and after giving effect thereto, no Default shall
exist:
(A) Indebtedness
of the Company which is incurred to finance the acquisition of Inventory in the ordinary course of business and is non-recourse
to the Company and any of its Property other than the Inventory financed thereby, pursuant to customary non-recourse provisions
(including normal and customary exceptions to the non-recourse nature thereof); provided that (1) no Inventory so financed
is included in the Borrowing Base until the Liens securing such Indebtedness (other than Permitted Borrowing Base Liens and Liens
permitted under Section 8.07(g)) are released and (2) such Indebtedness does not exceed 100% of the cost of acquiring such
Inventory;
(B) In
addition to the Reimbursement Obligations, Indebtedness in the form of reimbursement obligations under letters of credit (which
are not Letters of Credit hereunder) issued for the account of the Company to secure the purchase price of Inventory in the ordinary
course of business to be acquired by the Company if (1) such reimbursement obligation is secured only by the Inventory the
purchase price of which is secured by the applicable Letter of Credit; (2) no such Inventory is included in the Borrowing
Base until the Liens securing such Indebtedness are released and (3) such Indebtedness does not exceed 100% of the cost of
acquiring such Inventory;
(C) Subordinated
Debt; and
(D) Guarantees
by the Company of Indebtedness of certain of its suppliers incurred in the form of loans made to such suppliers by third parties
(which may include one or more of the Banks) under pre-export finance arrangements; provided that (1) with respect to any
one supplier, the amount of the Guarantee provided for the benefit of such supplier shall be limited to an amount not to exceed
20% of the aggregate amount of such loans to such supplier and (2) the aggregate amount of the Indebtedness Guaranteed pursuant
to the Guarantees provided under this clause (D) shall not exceed $3,000,000 at any time outstanding;
(g) Indebtedness
of the Company under the Uncommitted Credit Agreement in an aggregate principal amount outstanding not to exceed at any time an
amount equal to 50% of the aggregate Revolving Loan Commitments;
(h) Indebtedness
in an aggregate principal amount not to exceed $10,000,000 incurred to finance Capital Expenditures to the extent permitted under
Section 8.20 hereof;
(i)
Indebtedness of any Subsidiary of the Company that is organized under the Laws of Australia in an
aggregate principal amount outstanding not to exceed AUS$20,000,000 at any time;
(j)
Indebtedness under Hedging Agreements entered into in the ordinary course of business and not
for speculative purposes; and
(k) any
refinancings, refundings, renewals or extensions of Indebtedness permitted under Section 8.07(b), (e) or (i), provided that
(i) the amount of such Indebtedness is not increased at the time of such refinancing, refunding, renewal or extension and (ii)
any guarantee entered into in connection with such refinancing, refunding, renewal or extension that is not a refinancing of an
existing guarantee of such Indebtedness shall not be permitted under this Section 8.07(k).
8.08 Investments.
The Company will not, nor will it permit any of its Subsidiaries to, make or permit to remain outstanding any Investments except:
(a) Investments
outstanding on the date hereof and identified on Schedule II hereto;
(b) deposit
accounts with banks;
(c) Hedging
Agreements entered into in the ordinary course of business and not for speculative purposes;
(d) Investments
by the Company in Imbali Metals Bvba in an aggregate amount not to exceed €4,000,000
or the dollar equivalent thereof (determined based on the amount initially advanced with respect thereto, giving effect to any
repayments and including any amount outstanding on the Closing Date) and Investments by the Company under the Imbali Guarantee;
(e) Investments
of the type described in clause (a) and (b) of the definition thereof in third parties; provided, that such Investments are made
with the proceeds of Subordinated Debt and the aggregate outstanding amount of such Investments (determined based on the amount
initially advanced with respect thereto minus any repayment thereof) does not exceed $12,000,000 at any time;
(f)
Permitted Investments; and
(g) other
Investments in an aggregate amount not to exceed at any time $500,000 (determined based on the amount initially advanced with respect
thereto, giving effect to any repayments).
8.09 Leverage
Ratio. The Company will not permit the Leverage Ratio to exceed at any time 6.00 to 1.
8.10 Net
Working Capital. The Company will not permit its Net Working Capital to be less than the sum of $35,000,000 plus an
amount equal to 25% of its Consolidated Net Income (but, in each case, only if a positive number) for the fiscal year most recently
ended, to be tested as of the end of each fiscal quarter of the Company.
8.11 No
Net Loss. The Company will not permit its Consolidated Net Income (but calculated before taxes and extraordinary items in accordance
with GAAP) for any two or more consecutive fiscal quarters to be less than -$4,000,000 (negative four million Dollars) in the aggregate.
8.12 Lines
of Business. The Company will not nor will it permit any Subsidiary to engage to any substantial extent in any line or lines
of business activity other than the business of acquiring, selling, trading, extruding and otherwise dealing in aluminum and steel
semi-finished products (or other similar metal products).
8.13 Dividend
Payments. The Company will not, nor will it permit any of its Subsidiaries to, declare or make any Dividend Payment (other
than Dividend Payments to the Company) at any time if (a) an Event of Default exists or (b) immediately after giving effect to
making such Dividend Payment any Event of Default would exist or be continuing.
8.14 Use
of Proceeds. The Company will use the proceeds of the extensions of credit hereunder for working capital and general corporate
purposes in the ordinary course of business (in compliance with all applicable legal and regulatory requirements, including Regulations
T, U and X and the Securities Act of 1933 (as amended) and the Securities Act of 1934 (as amended) and the regulations thereunder);
provided that neither the Agent nor any Bank has any responsibility as to the use of any of such proceeds.
8.15 Subordinated
Debt. The Company will not purchase, redeem, retire or otherwise acquire for value, or set apart any money for any sinking,
defeasance or other analogous fund for, the purchase, redemption, retirement or other acquisition of, or make any payment or prepayment
of the principal of or interest on, or any other amount owing in respect of, any Subordinated Debt, except for regularly scheduled
payments of principal and interest in respect thereof (if any) required pursuant to the instruments evidencing such Subordinated
Debt. The Company will not purchase, redeem, retire or otherwise acquire for value, or set apart any money for any sinking, defeasance,
or other analogous fund for, the purchase, redemption, retirement or other acquisition of, or make any payment or repayment of
the principal of or interest on, or any other amounts owing in respect of, the Imbali Guarantee.
8.16 Intentionally
omitted
8.17 Additional
Guarantors; Pledge of Additional Subsidiaries. The Company will take such action, and will cause each of its Subsidiaries which
is organized under the Laws of a State of the United States (other than the Quad Avenue Subsidiary) (each, a “Domestic
Subsidiary”) to take such action, from time to time as shall be necessary to ensure that all Domestic Subsidiaries of
the Company (other than the Quad Avenue Subsidiary) become “Guarantors” hereunder and grant Liens in all their respective
personal property assets, including the following actions:
(a) Subsidiary
Guarantee. duly executing and delivering a Supplement to the Subsidiary Guarantee in the form attached as Annex I thereto for
each Domestic Subsidiary formed or acquired following the Closing Date;
(b) Secured
Documents. causing such Domestic Subsidiary to take such action (including executing and delivering a Supplement to the Security
Agreement in form attached as Annex I thereto properly completed and delivering such certificates, executing and delivering such
UCC financing statements) as shall be necessary to create and perfect valid and enforceable first priority Liens (subject to the
terms of the Intercreditor Agreement) on substantially all of the personal property assets of such Domestic Subsidiary as collateral
security for the Obligations; and
(c) Corporate
Authorization. delivering such proof of corporate or other relevant action, incumbency of officers, opinions of counsel and
other documents as is consistent with those delivered by each Obligor pursuant to Section 6.01 on the Closing Date or as the Agent
shall have reasonably requested.
In the event that any Obligor shall form
or acquire any new Subsidiary, the Company will promptly cause the Capital Securities issued by such Subsidiary to be pledged and
delivered pursuant to the Security Documents promptly after such Subsidiary is formed or acquired (except that, if such Subsidiary
is not a Domestic Subsidiary, the Capital Securities issued by such Subsidiary to be pledged pursuant to the Security Documents
shall be limited to 65% of the outstanding Capital Securities issued by such Subsidiary, provided that, if, as a result of any
change in, or the introduction, adoption, effectiveness or interpretation of, tax laws, rules, regulations, directives or guidelines
of the United States of America after the date of this Agreement, the grant of security interests and Liens by the Company or its
Domestic Subsidiaries in respect of any additional Capital Securities in any non-Domestic Subsidiary to the Agent would not result
in an increase in the aggregate tax liabilities of the Company or such Domestic Subsidiary over what such liabilities would have
been without such security interests and Liens, then, promptly after the change in, or the introduction, adoption, effectiveness
or interpretation of, any such laws, rules, regulations, directives or guidelines, such pledge shall be increased to include all
such additional Capital Securities.
8.18 Intentionally
omitted.
8.19 Amendment
to Organizational Documents. The Company will not and will not permit any Subsidiary to consent to any modification, supplement
or waiver of any of the provisions of any of their Governing Documents in a manner materially adverse to the Banks.
8.20 Capital
Expenditures. The Company will not and will not permit any Subsidiary to make, incur or commit to make (by way of the acquisition
of securities of a Person or otherwise) Capital Expenditures, other than Capital Expenditures for logistical assets in an aggregate
amount not to exceed $10,000,000.
8.21 Transactions
with Affiliates. The Company will not, nor will it permit any of its Subsidiaries to, sell, lease or otherwise transfer any
Property to, or purchase, lease or otherwise acquire any Property from, or otherwise engage in any other transactions with, any
of its Affiliates, except (a) transactions in the ordinary course of business at prices and on terms and conditions not less favorable
to the Company or such Subsidiary than could be obtained on an arm’s length basis from unrelated third parties, (b) transactions
between or among the Company and one or more Guarantors not involving any other Affiliate, (c) any Dividend Payments permitted
by Section 8.13 and (d) Subordinated Debt permitted hereby.
8.22 Environmental
Laws.
(a) The
Company will, and will cause it Subsidiaries to, comply with, all applicable Environmental Laws and obtain and comply with and
maintain Environmental Permits, except in all cases where noncompliance or the failure to obtain Environmental Permits could not
reasonably be expected to have a Material Adverse Effect or except to the extent that the same are being contested in good faith
by appropriate proceedings and for which adequate reserves have been established and maintained on the books and records of the
Company and the applicable Subsidiary in accordance with GAAP.
(b) The
Company will, and will cause it Subsidiaries to, handle, transport and dispose of, and cause all subtenants to handle, transport
and dispose of, all Materials of Environmental Concern in material compliance with all applicable Environmental Laws.
8.23 Take
or Pay Contracts. The Company will not, and will not permit its Subsidiaries to, enter into or be a party to any contract or
arrangement for the purchase of materials, supplies, other properties or services if such contract or arrangement requires that
payment be made by the Company or a Subsidiary regardless of whether such materials, supplies, other properties or services are
delivered or forwarded to it.
8.24 Limitation
on Dividend Clause and Negative Pledge Clauses. The Company will not, and will not permit its Subsidiaries to, enter into with
any Person any agreement, which prohibits or limits the ability of the Company or any of its Subsidiaries to create, incur, assume
or suffer to exist any Lien upon or otherwise transfer any interest in any of its property, assets or revenues, whether now owned
or hereafter acquired except for (i) those prohibitions or limitations set forth in this Agreement or any other Basic Document
or the Uncommitted Credit Agreement and any agreements entered into in connection therewith, the Imbali Facility and any agreements
entered into in connection therewith, (ii) those existing on the Closing Date and set forth on Schedule IV, (iii) with respect
to any Subsidiary pursuant to an agreement relating to any Indebtedness incurred by such Subsidiary on or prior to the date on
which such Subsidiary became a Subsidiary or was acquired by the Company or any of its Subsidiaries and outstanding on such date;
(iv) with respect to purchase money obligations for any property acquired in the ordinary course of business that impose restrictions
on such property, and (v) consisting of customary non-assignment or subletting provisions in leases governing leasehold interests
to the extent such provisions restrict the transfer of the lease or the property leased thereunder, and customary non-assignment
provisions of other contracts entered into in the ordinary course of business..
8.25 Limitation
on Sales and Leasebacks. The Company will not, and will not permit its Subsidiaries to, enter into any arrangement with any
Person providing for (i) the leasing by the Company or any Subsidiary of real or personal property which has been or is to be either
sold or transferred by the Company or such Subsidiary to such Person or to any other Person to whom funds have been or are to be
advanced by such Person on the security of such property or rental obligations of the Company or (ii) the purchase or transfer
of any real or personal property from any Person to the Company or such Subsidiary which has been leased by the Company or such
Subsidiary to such Person, except for (in each case) any transactions, the consideration of which does not exceed in the aggregate
$1,000,000 in any calendar year.
8.26 Accounting
Changes. The Company will not, and will not permit its Subsidiaries to, make any significant change in its accounting treatment
or reporting practices, except as required by GAAP, without providing the Agent with ten (10) days prior written notice of such
change. At the end of any calendar year during which any such change has occurred, the Company shall prepare and deliver to the
Agent an explanatory statement, in form and substance reasonably satisfactory to the Agent, reconciling the previous treatment
or practice with the new treatment or practice.
8.27 Borrowing
Base. The Company hereby agrees that it will not at any time remove Property (or proceeds thereof) from the Borrowing Base
for any reason (other than (i) pursuant to a transaction permitted under Section 8.05(b), (c) or (d) above or (ii) as a result
of becoming ineligible for inclusion therein), provided, that this provision shall not affect or restrict any reallocation
of Borrowing Base assets from or to the Borrowing Base as expressly set forth in the Intercreditor Agreement.
8.28 Deposit
Accounts. The Company will not open any operating deposit accounts located in the United States (other than payroll accounts)
not in existence on the date hereof without the prior written consent (not to be unreasonably withheld) of all Banks (other than,
for the avoidance of doubt, any Affiliate of an Issuing Bank which has issued a Letter of Credit pursuant to the last sentence
of the definition of Issuing Bank).
8.29 Storage
Facilities. Upon the request of the Agent from time to time, the Company shall use commercially reasonable efforts to obtain
control agreements among the Company, each storage facility specified by the Agent and the Agent (in form and substance reasonably
acceptable to the Agent), under which each applicable storage facility shall agree that upon receipt of notice from the Agent of
the occurrence and continuance of an Event of Default, it shall accept instruction from the Agent and shall no longer accept instruction
from the Company.
8.30 Sanctions.
The Company hereby agrees that it shall and shall cause its Subsidiaries to (i) maintain in effect and enforce policies and procedures
designed to ensure compliance by the Company, any Person that is an Affiliate of the Company, including its Subsidiaries, and,
to the extent commercially reasonable, its agents with applicable Anti-Terrorism Laws and (ii) ensure at all times the truth and
accuracy of the representations and warranties, and adherence to, the covenants, set forth in Section 7.16 hereof.
Section
9.
Events of Default.
9.01 Events
of Default. If one or more of the following events (herein called “Events of Default”) shall occur and be
continuing:
(a) Payment
Default. The Company shall default in the payment when due (whether at stated maturity or upon mandatory or optional prepayment)
of: (i) any principal of any Loan or any Reimbursement Obligation, the amount necessary to provide Cash Collateral for any Letter
of Credit or otherwise as required thereby, or (ii) any fee or any other amount payable by it hereunder (other than interest) or
under any other Basic Document or any interest on any Loan or any Reimbursement Obligation and such default in payment (under this
clause (ii)) shall continue unremedied for three (3) Business Days after notice thereof to the Company by the Agent; or
(b) Cross
Default. (i) The Company shall default in the payment when due of any principal of or interest on any of its other Material
Indebtedness or any of its Subsidiaries shall default in the payment when due of any principal of or interest on any of its Material
Indebtedness; or any event specified in any note, agreement, indenture or other document evidencing or relating to any such Material
Indebtedness shall occur if the effect of such event is to cause, or (with the giving of any notice or the lapse of time or both)
to permit the holder or holders of such Material Indebtedness (or a trustee or agent on behalf of such holder or holders) to cause,
such Material Indebtedness to become due, or to be prepaid in full (whether by redemption, purchase, offer to purchase or otherwise),
prior to its stated maturity; or an early termination date (or comparable event) occurs with respect to any Hedging Agreement or
other swap or derivative whether or not pursuant to an ISDA master agreement that constitutes Material Indebtedness; as used herein,
the term “Material Indebtedness” means Indebtedness under the Uncommitted Credit Agreement, Indebtedness under
the Imbali Facility and any other Indebtedness (other than the Obligations) with an outstanding principal balance (or with respect
to Hedging Agreements or other swap or derivative whether or not pursuant to an ISDA master agreement, the aggregate amount (giving
effect to any netting agreements) that the Company or such Subsidiary would be required to pay if an early termination date or
comparable event under such agreement were to occur at such time) of $5,000,000 or more, in any individual case or in the aggregate;
or
(c) Representations
and Warranties. Any representation, warranty or certification made or deemed made herein or in any other Basic Document (or
in any modification or supplement hereto or thereto) by the Company or any of its Subsidiaries, or any certificate furnished to
any Bank or the Agent pursuant to the provisions hereof or thereof, shall prove to have been false or misleading as of the time
made or furnished in any material respect; or
(d) Covenant
Defaults. The Company shall default in the performance of any of its obligations under any of Sections 8.01(g), 8.03(a), 8.05,
8.06, 8.07, 8.08, 8.09, 8.10, 8.11, 8.13, 8.15, 8.19, 8.20, 8.21 or 8.27 hereof or any Obligor shall default in the performance
of any of its obligations under the Security Agreement; or the Company shall default in the performance of its obligations under
Section 8.01(d) hereof and such default shall continue unremedied for a period of five (5) or more Business Days; or the Company
shall default in the performance of any of its obligations in this Agreement or any other Basic Document (other than those already
specified above in this clause (d)) and such default shall continue unremedied for a period of thirty (30) or more days after notice
thereof to the Company by the Agent or any Bank (through the Agent); or
(e) Failure
to Pay Debts. The Company or any of its Subsidiaries shall admit in writing its inability to, or be generally unable to, pay
its debts as such debts become due; or
(f)
Voluntary Insolvency Proceedings. The Company or any of its Subsidiaries shall (i) apply for or
consent to the appointment of, or the taking of possession by, a receiver, custodian, trustee, examiner or liquidator of
itself or of all or a substantial part of its Property, (ii) make a general assignment for the benefit of its creditors,
(iii) commence a voluntary case under the Bankruptcy Code, (iv) file a petition seeking to take advantage of any
Law of any jurisdiction (domestic or foreign) relating to bankruptcy, insolvency, reorganization, liquidation, dissolution,
arrangement or winding-up, or composition or readjustment of debts, (v) fail to controvert in a timely and appropriate
manner, or acquiesce in writing to, any petition filed against it in an involuntary case under the Bankruptcy Code or, in
respect of Subsidiaries of the Company which are not Domestic Subsidiaries, any similar Law relating to bankruptcy,
insolvency, reorganization, liquidation, dissolution, arrangement or winding up, or composition or readjustment of debts, or
(vi) take any corporate action for the purpose of effecting any of the foregoing; or
(g) Involuntary
Insolvency Proceedings. A proceeding or case shall be commenced, without the application or consent of the Company or any of
its Subsidiaries, in any court of competent jurisdiction, seeking (i) its reorganization, liquidation, dissolution, arrangement
or winding-up, or the composition or readjustment of its debts, (ii) the appointment of a receiver, custodian, trustee, examiner,
liquidator or the like of the Company or any of its Subsidiaries or of all or any substantial part of its Property, or (iii) similar
relief in respect of the Company or any of its Subsidiaries under any present or future Law of any jurisdiction (domestic or foreign)
relating to bankruptcy, insolvency, reorganization, winding-up, or composition or adjustment of debts, and such proceeding or case
shall continue undismissed, or an order, judgment or decree approving or ordering any of the foregoing shall be entered and continue
unstayed and in effect, for a period of 60 or more days; or an order for relief against the Company or any of its Subsidiaries
shall be entered in an involuntary case under the Bankruptcy Code; or
(h) Judgment
Default. A final judgment or judgments for the payment of money in excess of $1,000,000 (exclusive of judgment amounts fully
covered by insurance where the insurer has admitted liability in respect of such judgment) shall be rendered by one or more courts,
administrative tribunals or other bodies having jurisdiction against the Company or any of its Subsidiaries and the same shall
not be discharged (or provision shall not be made for such discharge), or a stay of execution thereof shall not be procured, within
30 days from the date of entry thereof and the Company or any of its Subsidiaries shall not, within said period of 30 days, or
such longer period during which execution of the same has been stayed, appeal therefrom and cause the execution thereof to be stayed
during such appeal; or
(i)
ERISA Events. The Company or any ERISA Affiliate shall incur any liability to a Plan, a Multiemployer Plan
or PBGC (or any combination of the foregoing) that would (either individually or in the aggregate) have a Material Adverse
Effect; or
(j)
Change of Control. (i) The Principal Shareholders shall cease to own beneficially and of
record at least 20% of the issued and outstanding capital stock having voting power to elect members of the board of
directors of the Company, (ii) Nathan Kahn shall cease to be President of the Company and a successor acceptable to the
Required Banks shall not have been appointed to such position within 90 days thereafter (such determination of acceptability
by the Required Banks to be made for purposes of waiving any resulting Default only, the Company agreeing that it is solely
responsible for selecting an appropriate replacement) or (iii) the Persons who were members of the board of directors of
the Company on the Closing Date (together with any new directors whose election to such board of directors or whose
nomination for election was approved by a vote of a majority of such members of the board of directors or members whose
election or nomination for election was previously so approved) cease for any reason to constitute a majority of the members
of the board of directors of the Company; or
(k) Security
Documents; Basic Documents. The Liens created by the Security Documents shall at any time not constitute a valid and perfected
Lien on the Collateral intended to be covered thereby (to the extent perfection by filing, registration, recordation or possession
is required herein or therein) in favor of the Banks, free and clear of all other Liens (other than Liens permitted under Section
8.06 hereof or under the respective Security Documents), or, except for expiration in accordance with its terms, any of the Basic
Documents shall for whatever reason be terminated or cease to be in full force and effect, or the enforceability thereof shall
be contested by any Obligor, or any Obligor shall assert in writing that any Basic Document is unenforceable; or
(l)
Subordination Provisions. Any subordination provision of any
Indebtedness subordinated to the Loan Obligations shall cease, for any reason, to be in full force and effect, or the Company
or any of its Subsidiaries shall so assert in writing, unless such Indebtedness would, at all times thereafter, be otherwise
permitted under Section 8.07; or
(m) Quad
Avenue Loan Agreement. 6900 Quad Avenue, LLC shall default in the performance of its obligations under Section 4(a) of the
Quad Avenue Loan Agreement; or
(n) Uncommitted
Credit Agreement Disclosure. At any time, the Uncommitted Credit Agreement shall be amended, modified or waived in a manner
which restricts the right of the Uncommitted Facility Agent to share with the Agent and the Banks, borrowing base reports delivered
under the Uncommitted Credit Agreement and related information;
THEREUPON: (1) in the case of an Event
of Default other than one referred to in clause (f) or (g) of this Section 9, the Agent may with the consent of
the Required Banks, and, upon request of the Required Banks shall by notice to the Company, terminate the Commitments and/or declare
the principal amount then outstanding of, and the accrued interest on, the Loans, the Reimbursement Obligations and all other Loan
Obligations (including any amounts payable under Section 5.04 or 5.05 hereof) to be forthwith due and payable, whereupon
such amounts shall be immediately due and payable without presentment, demand, protest or other formalities of any kind, all of
which are hereby expressly waived by the Company; and (2) in the case of the occurrence of an Event of Default referred to
in clause (f) or (g) of this Section 9, the Commitments shall automatically be terminated and the principal amount
then outstanding of, and the accrued interest on, the Loans, the Reimbursement Obligations and all other Loan Obligations (including
any amounts payable under Section 5.01 and 5.04 hereof) shall automatically become immediately due and payable without presentment,
demand, protest or other formalities of any kind, all of which are hereby expressly waived by the Company.
9.02 Cover
for Contingent Obligations. In addition, upon the occurrence and during the continuance of any Event of Default (if the Agent
has declared the principal amount then outstanding of, and accrued interest on, the Loans and all other Loan Obligations to be
due and payable), the Company agrees that it shall, if requested by the Agent or the Required Banks through the Agent (and, in
the case of any Event of Default referred to in clause (f) or (g) of this Section 9, forthwith, without any demand
or the taking of any other action by the Agent or such Banks) provide cover for the Letter of Credit Liabilities by depositing
with the Agent Cash Collateral in an amount equal to 103% of the then aggregate undrawn face amount of all Letters of Credit, which
funds shall be held by the Agent in the Collateral Account as collateral security for the Obligations.
Section
10.
The Agent.
10.01 Appointment,
Powers and Immunities. Each Bank hereby irrevocably appoints and authorizes Rabobank to act as agent on its behalf, and on
behalf of each of its Affiliates who are owed Obligations (each such Affiliate by acceptance of the benefits of the Basic Documents
hereby ratifying such appointment), hereunder and under the other Basic Documents with such powers as are specifically delegated
to the Agent by the terms of this Agreement and of the other Basic Documents, together with such other powers as are reasonably
incidental thereto. The Agent (which term as used in this sentence and in Section 10.05 and the first sentence of Section 10.06
hereof shall include reference to its Affiliates and its own and its Affiliates’ officers, directors, employees and agents):
(a) has no duties or responsibilities except those expressly set forth in this Agreement and in the other Basic Documents,
and shall not by reason of this Agreement or any other Basic Document be a trustee or fiduciary for any Secured Party; (b) shall
not be responsible to any Secured Party for any recitals, statements, representations or warranties contained in this Agreement
or in any other Basic Document, or in any certificate or other document referred to or provided for in, or received by any of them
under, this Agreement or any other Basic Document, or for the value, validity, effectiveness, genuineness, enforceability or sufficiency
of this Agreement or any other Basic Document or any other document referred to or provided for herein or therein or for any failure
by any Obligor or any other Person to perform any of its obligations hereunder or thereunder; (c) shall not be required to
initiate or conduct any litigation or collection proceedings hereunder or under any other Basic Document, unless so directed by
the Required Banks; (d) shall not be required to act as collateral agent hereunder or otherwise be responsible for any collateral
security granted in connection herewith except with respect to any collateral that cannot be perfected by filing Uniform Commercial
Code financing statements and is required to be delivered to the Agent under the Basic Documents; and (e) shall not be responsible
for any action taken or omitted to be taken by it hereunder or under any other Basic Document or under any other document or instrument
referred to or provided for herein or therein or in connection herewith or therewith, except for its own gross negligence or willful
misconduct. The Agent may employ agents and attorneys-in-fact and shall not be responsible for the negligence or misconduct of
any such agents or attorneys-in-fact selected by it in good faith. The Agent may deem and treat the Banks named in the Register
as the “Banks” hereunder for all purposes hereof unless and until a notice of the assignment or transfer thereof has
been filed with the Agent.
10.02 Reliance
by Agent. The Agent shall be entitled to rely upon any certification, notice or other communication (including any thereof
by telephone, telecopy, telex, telegram or cable) believed by it to be genuine and correct and to have been signed or sent by or
on behalf of the proper Person or Persons, and upon advice and statements of legal counsel, independent accountants and other experts
selected by the Agent. As to any matters not expressly provided for by this Agreement or any other Basic Document, the Agent shall
in all cases be fully protected in acting, or in refraining from acting, hereunder or thereunder in accordance with instructions
given by the Required Banks and such instructions of such Banks and any action taken or failure to act pursuant thereto shall be
binding on all of the Banks.
10.03 Defaults.
The Agent shall not be deemed to have knowledge or notice of the occurrence of a Default (other than payment Defaults) unless the
Agent has received notice from a Bank or the Company specifying such Default and stating that such notice is a “Notice of
Default”. In the event that the Agent receives such a notice of the occurrence of a Default or becomes aware of a payment
Default, the Agent shall give prompt notice thereof to the Banks. The Agent shall (subject to Section 10.07 hereof) take such
action with respect to such Default as shall be directed by the Required Banks, provided that, unless and until the Agent
has received such directions, the Agent may (but shall not be obligated to) take such action, or refrain from taking such action,
with respect to such Default as it shall deem advisable in the best interest of the Banks except to the extent that this Agreement
expressly requires that such action be taken, or not be taken, only with the consent or upon the authorization of the Required
Banks.
10.04 Rights
as a Bank. With respect to its Commitments and the Loans made by it, Rabobank (and any successor acting as Agent) in its capacity
as a Bank hereunder has the same rights and powers hereunder as any other Bank and may exercise the same as though it were not
acting as the Agent, and the term “Bank” or “Banks” shall, unless the context otherwise indicates, include
the Agent in its individual capacity. Rabobank (and any successor acting as Agent) and its affiliates may (without having to account
therefor to any Bank) accept deposits from, lend money to, make investments in and generally engage in any kind of banking, trust
or other business with the Company (and any of its Subsidiaries or Affiliates) as if it were not acting as the Agent, and Rabobank
and its affiliates may accept fees and other consideration from the Company for services in connection with this Agreement or otherwise
without having to account for the same to the Banks.
10.05 Indemnification.
The Banks severally agree to indemnify the Agent (to the extent not reimbursed under Section 11.03 hereof, but without limiting
the obligations of the Company under said Section 11.03) and each of the Agent’s respective officers, directors, employees
and agents, ratably in accordance with their respective Revolving Loan Commitments, for any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind and nature whatsoever that may be imposed
on, incurred by or asserted against the Agent in its capacity as Agent (including by any Secured Party) arising out of or by reason
of any investigation in or in any way relating to or arising out of this Agreement or any other Basic Document or any other documents
contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby (including the costs and expenses
that the Company is obligated to pay under Section 11.03 hereof but excluding, unless a Default exists, normal administrative
costs and expenses incident to the performance of its agency duties hereunder) or the enforcement of any of the terms hereof or
thereof or of any such other documents, provided that no Bank shall be liable for any of the foregoing to the extent they
arise from the gross negligence or willful misconduct of the party to be indemnified. The Banks severally agree to indemnify each
Fronting Bank and each of their respective officers, directors, employees and agents (to the extent not reimbursed under Section 11.03
hereof, but without limiting the obligations of the Company under said Section 11.03), ratably in accordance with their respective
Revolving Loan Commitments, for any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind and nature whatsoever that may be imposed on, incurred by or asserted against any of them
in their capacity as a Fronting Bank arising out of or by reason of any investigation in or in any way relating to or arising out
of this Agreement or any other Basic Document or any other documents contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby (including the costs and expenses that the Company is obligated to pay under Section 11.03
hereof but excluding, unless a Default exists, normal administrative costs and expenses incident to the performance of its agency
duties hereunder) or the enforcement of any of the terms hereof or thereof or of any such other documents, provided that
no Bank shall be liable for any of the foregoing to the extent they arise from the gross negligence or willful misconduct of the
party to be indemnified.
10.06 Non-Reliance
on Agent and Other Banks. Each Bank agrees that it has, independently and without reliance on the Agent or any other Bank,
and based on such documents and information as it has deemed appropriate, made its own credit analysis of the Company and decision
to enter into this Agreement and that it will, independently and without reliance upon the Agent or any other Bank, and based on
such documents and information as it shall deem appropriate at the time, continue to make its own analysis and decisions in taking
or not taking action under this Agreement or under any other Basic Document. The Agent shall not be required to keep itself informed
as to the performance or observance by any Obligor of this Agreement or any of the other Basic Documents or any other document
referred to or provided for herein or therein or to inspect the Properties or books of the Company. Except for notices, reports
and other documents and information expressly required to be furnished to the Banks by the Agent hereunder or under the Security
Documents, the Agent shall not have any duty or responsibility to provide any Bank with any credit or other information concerning
the affairs, financial condition or business of the Company (or any of its Affiliates) that may come into the possession of the
Agent or any of its Affiliates.
10.07 Failure
to Act. Except for action expressly required of the Agent hereunder and under the other Basic Documents, the Agent shall in
all cases be fully justified in failing or refusing to act hereunder and thereunder unless it shall receive further assurances
to its satisfaction from the Banks of their indemnification obligations under Section 10.05 hereof against any and all liability
and expense that may be incurred by it by reason of taking or continuing to take any such action.
10.08 Resignation
or Removal of Agent. Subject to the appointment and acceptance of a successor Agent as provided below, the Agent may resign
at any time by giving notice thereof to the Banks and the Company, and the Agent may be removed at any time with or without cause
by the Required Banks. Upon any such resignation or removal, the Required Banks have the right to appoint a successor Agent, subject
to the Company’s approval of such successor Agent. If no successor Agent has been so appointed by the Required Banks (or
if the Company shall fail to approve such a successor Agent) and has accepted such appointment within 30 days after the retiring
Agent’s giving of notice of resignation or the Required Banks’ removal of the retiring Agent, then the retiring Agent
may, on behalf of the Banks, subject to the Company’s approval, appoint a successor Agent, that shall be a bank that has
an office in New York, New York or assign all of its rights and delegate all of its obligations hereunder and under the other Basic
Documents to the Banks. Upon the acceptance of any appointment as Agent hereunder by a successor Agent, or the assignment and delegation
to the Banks as set forth in the preceding sentence, such successor Agent (or the Banks, as applicable) shall thereupon succeed
to and become vested with all the rights, powers, privileges and duties of the retiring Agent, and the retiring Agent shall be
discharged from its duties and obligations hereunder. After any retiring Agent’s resignation or removal hereunder as Agent,
the provisions of this Section 10 shall continue in effect for its benefit in respect of any actions taken or omitted to be
taken by it while it was acting as the Agent.
10.09 Agency
Fee. So long as the Commitments are in effect and until payment in full of the Obligations, the Company will pay to the Agent
an agency fee as mutually agreed upon.
10.10 Consents
under Other Basic Documents. Except as otherwise provided in Section 11.04 hereof, the Agent may, with the prior consent of
the Required Banks (but not otherwise), consent to any modification, supplement or waiver under any of the Basic Documents, provided
that, without the prior consent of each Bank, the Agent shall not (except as provided herein or in the Security Documents) release
any Collateral or otherwise terminate any Lien under any Basic Document or agree to additional obligations being secured by such
Collateral (unless the Lien for such additional obligations shall be junior and subordinate to the Lien in favor of the other obligations
secured by such Basic Document).
10.11 Pendency
of Insolvency. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement,
adjustment, composition or other judicial proceeding relative to any Obligor, the Agent (irrespective of whether the principal
of any Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether
the Agent shall have made any demand on any Obligor) shall be entitled and empowered, by intervention in such proceeding or otherwise:
(a) Filing
Claims. to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Obligations
that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the
Secured Parties (including any claim for the reasonable compensation, expenses, disbursements and advances of the Banks and the
Agent and their respective agents and counsel and all other amounts due the Banks and the Agent under Section 11.03) allowed in
such judicial proceeding; and
(b) Collection
of Funds. 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 Bank to
make such payments to the Agent and, in the event that the Agent shall consent to the making of such payments directly to the Secured
Parties, to pay to the Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Agent
and its agents and counsel, and any other amounts due the Agent hereunder. Nothing contained herein shall be deemed to authorize
the Agent to authorize or consent to or accept or adopt on behalf of any Bank any plan of reorganization, arrangement, adjustment
or composition affecting the Obligations or the rights of any Bank or to authorize the Agent to vote in respect of the claim of
any Bank in any such proceeding.
10.12 Permitted
Release of Collateral.
(a) Automatic
Release. If any Obligor sells any Collateral which is permitted to be disposed of under Section 8.05, the Liens in the Collateral
granted to the Agent under the Basic Document shall automatically terminate and the Collateral will be disposed of free and clear
of all Liens of the Agent.
(b) Written
Release. The Agent is authorized to release of record, and shall release of record, any Liens encumbering any Collateral that
is permitted to be sold upon an authorized officer of the Company certifying in writing to the Agent that the proposed disposition
of Collateral is permitted under Section 8.05. To the extent the Agent is requested to execute any release documents or other documents
evidencing the termination of Liens in accordance with the immediately preceding sentence, the Agent shall do so promptly upon
request of the Company without the consent or further agreement of any Secured Party. If the disposition of Collateral is not permitted
under or pursuant to the Basic Documents, the Liens encumbering the Collateral may only be released in accordance with the provisions
of Section 11.04.
(c) Other
Authorized Release and Subordination. The Agent is irrevocably authorized by the Secured Parties, without any consent or further
agreement of any Secured Party to: (i) subordinate or release the Liens granted to the Agent to secure the Obligations with respect
to any property which is permitted to be subject to a Lien of the type described in paragraphs (g) or (i) of Section 8.06
and (ii) release the Agent’s Liens when all the Commitments have terminated, all the Obligations have been paid in full and
otherwise satisfied and all Letters of Credit have expired or been terminated.
10.13 Powers
and Immunities of Fronting Banks. Neither any Fronting Bank nor any of their respective Affiliates, officers, directors, agents
or employees shall be liable for any action taken or omitted to be taken by any of them hereunder or otherwise in connection with
any Basic Document except for its or their own gross negligence or willful misconduct. Without limiting the generality of the preceding
sentence, no Fronting Bank (a) shall have any duties or responsibilities except those expressly set forth in the Basic Documents,
and shall by reason of any Basic Document be a trustee or fiduciary for any Bank or for the Agent, (b) shall be required to initiate
any litigation or collection proceedings under any Basic Document, and (c) shall be responsible to any Bank or the Agent for any
recitals, statements, representations, or warranties contained in any Basic Document, or any certificate or other documentation
referred to or provided for in, or received by any of them under, any Basic Document, or for the value, validity, effectiveness,
enforceability, or sufficiency of any Basic Document or any other documentation referred to or provided for therein or for any
failure by any Person to perform any of its obligations thereunder. Each Fronting Bank: (a) may consult with legal counsel (including
counsel for the Company or the Agent), independent public accountants, and other experts selected by it and shall not be liable
for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants, or
experts, and (b) shall incur no liability under or in respect of any Basic Document by acting upon any notice, consent, certificate,
or other instrument or writing believed by it to be genuine and signed or sent by the proper party or parties. As to any matters
not expressly provided for by any Basic Document, each Fronting Bank shall in all cases be fully protected in acting, or in refraining
from acting, hereunder in accordance with instructions signed by the Required Banks, and such instructions of the Required Banks
and any action taken or failure to act pursuant thereto shall be binding on all of the Banks and the Agent; provided, however,
that a Fronting Bank shall not be required to take any action which it reasonably believes exposes it to personal liability or
which it reasonably believes is contrary to any Basic Document or applicable Law.
10.14 Perfection
by Possession and Control; Deposit Accounts. The Agent hereby appoints each of the other Banks to serve as bailee to perfect
Agent’s Liens in any Collateral in the possession of any such other Bank. Each Bank possessing any Collateral agrees to so
act as bailee for the Agent in accordance with the terms and provisions hereof. In furtherance of the forgoing, each Bank acknowledges
that certain of the Obligors may maintain deposit accounts at one or more of the Banks (all such accounts, herein the “Obligor
Accounts”). Unless a Bank has entered into a control agreement with the Agent with respect to the Obligor Accounts (in
which event such control agreement shall take precedent over the provisions of this Section 10.14 with respect to the Obligor Accounts
covered thereby), each Bank agrees to hold its Obligor Accounts as bailee for the Agent to perfect the Agent’s Liens therein.
Prior to the receipt by a Bank of a written notice of an Event of Default from the Agent, the Obligors are entitled to make withdrawals
from the Obligor Accounts and make deposits into all the Obligor Accounts. When a Bank has received a written notice of an Event
of Default from the Agent and as long as such Event of Default exists, other than in respect of any payroll accounts, (a) the Agent
shall be the only party entitled to make withdrawals from or otherwise give any direction with respect to the Obligor Accounts
and each Bank agrees to comply with the instructions originated by the Agent directing deposition of the funds in or relating to
the Obligor Accounts it holds without further consent by any Obligor, and (b) each Bank shall transfer, in immediately available
funds by wire transfer to the Agent, the amount of the collected funds credited to the Obligor Accounts it holds and deliver to
the Agent all moneys or instruments relating thereto or held therein and any other Collateral at any time the Agent demands payment
or delivery thereof by such written notice to such Bank. Each Obligor agrees that each Bank is authorized to immediately deliver
all the Collateral to the Agent upon the Bank’s receipt of such notice from the Agent. No Bank (other than the Agent acting
for the benefit of the Secured Parties) shall exercise any right of set–off or banker’s lien against any Obligor Account
for any obligations other than the Obligations; provided that a Bank shall be entitled to charge, or set–off against an Obligor
Account and retain for its own account, any customary fees, costs, charges and expenses owed to it in connection with the opening,
operating and maintaining such Obligor Account and for the amount of any item credited to the Obligor Account that is subsequently
returned for any reason.
10.15 Bank
Affiliates Rights. By accepting the benefits of the Basic Documents, any Affiliate of a Bank that is owed any Obligation is
bound by the terms of the Basic Documents. But notwithstanding the foregoing: (a) neither the Agent, any Bank nor any Obligor shall
be obligated to deliver any notice or communication required to be delivered to any Bank under any Basic Document to any Affiliate
of any Bank; and (b) no Affiliate of any Bank that is owed any Obligation shall be included in the determination of the Required
Banks or entitled to consent to, reject, or participate in any manner in any amendment, waiver or other modification of any Basic
Document. The Agent shall not have any liabilities, obligations or responsibilities of any kind whatsoever to any Affiliate of
any Bank who is owed any Obligation. The Agent shall deal solely and directly with the related Bank of any such Affiliate in connection
with all matters relating to the Basic Documents. The Obligation owed to such Affiliate shall be considered the Obligation of its
related Bank for all purposes under the Basic Documents and such Bank shall be solely responsible to the other parties hereto for
all the obligations of such Affiliate under any Basic Document.
10.16 Other
Agents. Certain of the Banks may have been designated as syndication agents, documentation agents or other similar designation
in recognition of the level of their respective Revolving Loan Commitments. No Bank, other than the Bank serving as Agent, is an
agent for the Banks nor shall any such Bank have any obligation hereunder other than those existing in its capacity as a Bank.
10.17 Intercreditor
Agreement.
(a) Each
Bank hereby authorizes the Agent to enter into the Intercreditor Agreement on its behalf and agrees to be bound by the terms thereof.
(b) Each
of the Company and the Banks hereby authorizes the Agent to share with the Uncommitted Facility Agent (and the lenders under the
Uncommitted Credit Agreement), copies of all Borrowing Base Certificates and all schedules and amendments thereto (including, without
limitation, summaries and detail of all credit extensions hereunder) and any amendments to this Agreement or the other Basic Documents.
Section
11.
Miscellaneous.
11.01 Waiver.
No failure on the part of the Agent or any Bank to exercise and no delay in exercising, and no course of dealing with respect to,
any right, power or privilege under this Agreement or any other Basic Document shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, power or privilege under this Agreement or any other Basic Document preclude any other
or further exercise thereof or the exercise of any other right, power or privilege. The remedies provided herein are cumulative
and not exclusive of any remedies provided by Law. No waiver of any provision of any Basic Document or consent to any departure
by any Obligor therefrom shall in any event be effective unless the same shall be permitted by Section 11.04, and then such waiver
or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality
of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless
of whether the Agent or any Bank may have had notice or knowledge of such Default at the time.
11.02 Notices.
(a) General
Address for Notices. All notices, requests and other communications (“Communications”) provided for herein
and under the other Basic Documents (including any modifications of, or waivers, requests or consents under, this Agreement) shall
be given or made in writing (including by facsimile) delivered to the intended recipient at the “Address for Notices”
specified below its name on the signature pages hereof; or, as to any party, at such other address as shall be designated by such
party in a notice to each other party. Except as otherwise provided in this Agreement, all such communications shall be deemed
to have been duly given (i) if transmitted by facsimile, when the confirmation of transmission thereof is received by the transmitter,
(ii) when personally delivered or (iii) in the case of a mailed notice, upon receipt, in each case given or addressed as aforesaid.
The parties hereto agree that delivery of an executed counterpart of a signature page to this Agreement and each other Basic Document
by facsimile (or electronic transmission) shall be effective as delivery of an original executed counterpart of this Agreement
or such other Basic Document.
(b) Electronic
Communications. Communications to the Banks under the Basic Documents may be delivered or furnished by electronic communications
pursuant to procedures approved by the Agent; provided that the foregoing shall not apply to notices pursuant to Section 2.01 or
4.05 unless otherwise agreed by the Agent and the applicable Bank. The Agent or the Company may, in its discretion, agree to accept
notices and other communications to it under the Basic Documents by electronic communications pursuant to procedures approved by
it; provided that approval of such procedures may be limited to particular notices or Communications.
(c) Electronic
Transmission System. The Company and the Banks agree that the Agent may make the Communications available to the Banks and
the Company by posting the Communications on Intralinks or a substantially similar electronic transmission system (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 COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS
OR OMISSIONS IN THE COMMUNICATIONS. 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 THE AGENT PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL THE AGENT OR ANY OF ITS AFFILIATES
OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, AGENTS OR EMPLOYEES (COLLECTIVELY, THE “AGENT PARTIES”) HAVE ANY LIABILITY
TO ANY OBLIGOR, ANY BANK OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL
OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF ANY OBLIGOR’S OR THE
AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND
IN A FINAL NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT.
(d) Communications
Through the Platform. Each Bank agrees that notice to it (as provided in the next sentence) specifying that the Communications
have been posted to the Platform shall constitute effective delivery of the Communications to such Bank for purposes hereof. Each
Bank agrees to provide to the Agent in writing (including by electronic communication), promptly after the date of this Agreement,
an e-mail address to which the foregoing notice may be sent by electronic transmission and agrees that the foregoing notice may
be sent to such e-mail address.
11.03 Expenses,
etc. The Company agrees to pay or reimburse each of the Banks and the Agent for: (a) all reasonable and documented out-of-pocket
costs and expenses of the Agent (including the reasonable and documented fees and expenses of Emmet, Marvin & Martin, LLP)
in connection with (i) the negotiation, preparation, execution, delivery and administration of this Agreement and the other
Basic Documents and the extension of credit hereunder and (ii) the negotiation or preparation of any modification, supplement
or waiver of any of the terms of this Agreement or any of the other Basic Documents (whether or not consummated); (b) all
reasonable out-of-pocket costs and expenses of each Bank and the Agent (including the reasonable fees and expenses of legal counsel)
in connection with (i) any Default and any enforcement, protection of rights or collection proceedings resulting therefrom,
including all manner of participation in or other involvement with (x) bankruptcy, insolvency, receivership, foreclosure, winding
up or liquidation proceedings, (y) judicial or regulatory proceedings and (z) workout, restructuring or other negotiations
or proceedings (whether or not the workout, restructuring or transaction contemplated thereby is consummated), (ii) the enforcement
of this Section 11.03 and (iii) the issuance, amendment, renewal or extension of any Letter of Credit or demand for payment
thereunder; and (c) all transfer, stamp, documentary or other similar taxes, assessments or charges levied by any governmental
or revenue authority in respect of this Agreement or any of the other Basic Documents or any other document referred to herein
or therein and all costs, expenses, taxes, assessments and other charges incurred in connection with any filing, registration,
recording or perfection of any security interest contemplated by any Basic Document or any other document referred to therein.
The Company hereby agrees
to indemnify the Agent and each Bank and their respective directors, officers, employees, attorneys, partners and agents (each,
an “Indemnitee”) from, and hold each of them harmless against, any and all losses, liabilities, claims, damages
or expenses incurred by or asserted against any of them arising out of or by reason of (i) the execution or delivery of this
Agreement, any other Basic 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,
(ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by any Issuing
Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly
comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of Materials of Environmental
Concern on or from any property owned or operated by the Company or any of its Subsidiaries, or any liability under any Environmental
Law related in any way to the Company 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 Company, and regardless of whether any Indemnitee hereunder is a party thereto, provided that such Indemnity
shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses
(x) are 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 (y) result from a claim brought by the Company or any other Obligor
against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other Basic Document,
if the Company or such Obligor has obtained a final and nonappealable judgment in its favor on such claim as determined by a court
of competent jurisdiction. This Section 11.03 shall not apply with respect to Taxes to the extent that they are subject to Section
5.06 hereof.
11.04 Amendments,
Etc. (a) Neither this Agreement nor any other Basic Document nor any provision hereof or thereof may be waived, amended or
modified except, (x) pursuant to an Increase and New Bank Agreement executed in accordance with Section 2.05(d) which only needs
to be signed by the Company, the Agent and the Banks increasing or providing new Revolving Loan Commitments thereunder and (y)
in the case of this Agreement, pursuant to an agreement or agreements in writing entered into by the Company, the Agent and the
Required Banks or, in the case of any other Basic Document, pursuant to an agreement or agreements in writing entered into by the
Agent and the Obligor or Obligors that are parties thereto, in each case with the consent of the Required Banks; provided that
no such agreement shall (i) increase any Commitment of any Bank without the written consent of such Bank, (ii) reduce the principal
amount of any Loan or Reimbursement Obligations or reduce the amount or rate of interest thereon, or reduce the amount or rate
of any fees payable hereunder, without the written consent of each Bank affected thereby, (iii) postpone the scheduled date or
due date of the payment of the principal amount of any Loan (including any prepayment required by Section 2.11), Reimbursement
Obligations, or any interest thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse any such payment,
or postpone the scheduled date of expiration of any Commitment, without the written consent of each Bank affected thereby, (iv)
alter Section 4.07 or 4.08 or the manner in which payments or prepayments of principal, interest or other Obligations shall be
applied as among the Secured Parties, without the written consent of each Bank, (v) change any of the provisions of this Section,
the definition of the term “Required Banks”, the last sentence of Section 4.09 or any other provision hereof specifying
the number or percentage of Banks required to waive, amend or modify any rights hereunder or make any determination or grant any
consent hereunder, without the written consent of each Bank, (vi) modify Section 4.03 without the consent of each Bank, (vii) amend
the definition of the term “Borrowing Base” or any defined term used therein or Section 2.11 without the consent of
each Bank, (viii) release any Guarantor from any of its guarantee obligations without the written consent of each Bank, (ix) amend,
modify or waive the Intercreditor Agreement without the written consent of each Bank (other than, for the avoidance of doubt, any
Affiliate of an Issuing Bank which has issued a Letter of Credit pursuant to the last sentence of the definition of Issuing Bank)
or (x) except as permitted by Section 10.12, under the Intercreditor Agreement or in connection with the exercise of its rights
and remedies therein after an Event of Default, release all or substantially all of the Collateral (or any Collateral, the release
of which would result in an excess of the then aggregate outstanding amount of the Credit Exposure over the Borrowing Base) without
the written consent of each Bank; and provided further, that no such agreement shall amend, modify or otherwise affect the rights
or duties of the Agent or any Fronting Bank hereunder without the prior written consent of the Agent or the applicable Fronting
Bank, as the case may be.
(b) Notwithstanding
anything to the contrary herein, any Bank that is a Defaulting Bank shall not have any right to approve or disapprove of any amendment,
waiver or consent hereunder; provided, however, except as otherwise provided in Section 4.12, (i) the Revolving
Loan Commitment of such Defaulting Bank may not be increased or extended without the consent of such Defaulting Bank, (ii) the
Revolving Loan Commitment Percentage of such Defaulting Bank may not be increased without the consent of such Defaulting Bank,
and (iii) no payment to such Defaulting Bank shall be decreased or postponed without the consent of such Defaulting Bank.
11.05 Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and permitted assigns (including any Affiliate of an Issuing Bank that issues any Letter of Credit, any Affiliate of a Bank who
is otherwise owed any of the Obligations and any party entitled to indemnification hereunder), except that (i) no Obligor may assign
or otherwise transfer any of its rights or obligations hereunder or under any other Basic Document without the prior written consent
of each Bank (and any attempted assignment or transfer by any Obligor without such consent shall be null and void) and (ii) no
Bank may assign or otherwise transfer any of its rights or obligations hereunder except in accordance with Section 11.06 (and any
attempted assignment or transfer by any Bank that is not in accordance with this Section 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 (including any Affiliate of an Issuing Bank that issues any Letter of Credit and any Affiliate
of a Bank who is otherwise owed any of the other Obligations), and, to the extent expressly contemplated hereby, officers, directors,
attorneys, agents, and employees of each of the Agent and the Banks) any legal or equitable right, remedy or claim under or by
reason of this Agreement.
11.06 Assignments
and Participations.
(a) Assignments
by Banks.
(i) Assignments
Generally. Subject to the conditions set forth in clause (ii) below, any Bank may assign to one or more assignees all or a
portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time
owing to it) with the prior written consent (such consent not to be unreasonably withheld or delayed) of:
(A) the
Company, provided that no consent of the Company shall be required for an assignment to a Bank, an Affiliate of a Bank or an Approved
Fund or, if an Event of Default exists, any other assignee; and
(B) the
Agent, provided that no consent of the Agent shall be required for an assignment of any Commitment to an assignee that is a Bank
with a Commitment immediately prior to giving effect to such assignment.
(ii) Certain
Conditions to Assignments. Assignments by the Banks shall be subject to the following additional conditions:
(A) except
in the case of an assignment to a Bank or an Affiliate of a Bank or an assignment of the entire remaining amount of the assigning
Bank’s Commitment or Loans, the amount of the Commitment or Loans of the assigning Bank subject to each such assignment (determined
as of the date the Assignment and Assumption with respect to such assignment is delivered to the Agent) shall not be less than
$5,000,000 unless each of the Company and the Agent otherwise consent, provided that no such consent of the Company shall be required
if an Event of Default exists;
(B) each
partial assignment of any Commitment or Loans shall be made as an assignment of a proportionate part of all the assigning Bank’s
rights and obligations under this Agreement in respect of such Commitment and Loans;
(C) the
parties to each assignment shall execute and deliver to the Agent an Assignment and Assumption in substantially the form of Exhibit
E hereto, together with a processing and recordation fee of $3,500; and
(D) the
assignee, if it shall not already be a Bank, shall deliver to the Agent an Administrative Questionnaire.
(iii) Effectiveness
of Assignments. Subject to acceptance and recording thereof pursuant to paragraphs (b) and (c) below, from and after the effective
date specified in each Assignment and Assumption, the assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Assumption, have the rights and obligations of a Bank under this Agreement, and the assigning Bank
thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under
this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Bank’s rights and obligations
under this Agreement, such Bank shall cease to be a party hereto but shall continue to be entitled to the rights referred to in
Sections 5.01, 5.04, 5.06 and 11.03). Any assignment or transfer by a Bank of rights or obligations under this Agreement that does
not comply with this Section shall be treated for purposes of this Agreement as a sale by such Bank of a participation in such
rights and obligations in accordance with paragraph (d) below. Delivery of an executed counterpart of a signature page to an Assignment
and Assumption by telecopy or other electronic transmission shall be effective as delivery of a manually executed counterpart of
thereof.
(b) Maintenance
of Register by the Agent. The Agent, acting for this purpose as an agent of the Company, shall maintain a copy of each Assignment
and Assumption delivered to it and a register for the recordation of the names and addresses of the Banks, and the Commitment of,
and principal amount of the Loans owing to, each Bank pursuant to the terms hereof from time to time (the “Register”).
The entries in the Register shall be conclusive, and the Company, the Agent and the Banks may treat each Person whose name is recorded
in the Register pursuant to the terms hereof as a Bank hereunder for all purposes of this Agreement, notwithstanding notice to
the contrary. The Register shall be available for inspection by the Company and any Bank, at any reasonable time and from time
to time, upon reasonable prior notice.
(c) Effectiveness
of Assignments. Upon its receipt of a duly completed Assignment and Assumption executed by an assigning Bank and an assignee,
the assignee’s completed Administrative Questionnaire (unless the assignee shall already be a Bank hereunder), the processing
and recordation fee referred to in paragraph (a) above and any written consent to such assignment required by said paragraph (a),
the Agent shall accept such Assignment and Assumption and record the information contained therein in the Register. No assignment
shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph (c).
(d) Participations.
Any Bank may, without the consent of the Company or the Agent, sell participations to one or more banks or other entities (a “Participant”)
in all or a portion of such Bank’s rights and obligations under this Agreement (including all or a portion of its Commitment
and the Loans owing to it); provided that (i) such Bank’s obligations under this Agreement shall remain unchanged, (ii) such
Bank shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Obligors,
the Agent and the Banks shall continue to deal solely and directly with such Bank in connection with such Bank’s rights and
obligations under this Agreement. Any agreement or instrument pursuant to which a Bank sells such a participation shall provide
that such Bank shall retain the sole right to enforce this Agreement and to approve any amendment, waiver or other modification
of any provision of this Agreement; provided that such agreement may provide that such Bank will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described in the first proviso to Section 11.04 that affects
such Participant. Subject to paragraph (e) below, the Company agrees that each Participant shall be entitled to the benefits of
Sections 5.01, 5.04 and 5.06, to the same extent as if it were a Bank and had acquired its interest by assignment pursuant to paragraph
(a) above. To the extent permitted by Law, each Participant also shall be entitled to the benefits of Section 4.07(a) as though
it were a Bank, provided such Participant agrees to be subject to Section 4.07(b) as though it were a Bank hereunder.
(e) Limitations
on Rights of Participants. A Participant shall not be entitled to receive any greater payment under Section 5.01 or 5.06 than
the applicable Bank 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 Company’s prior written consent. A Participant that would
be a Foreign Bank if it were a Bank shall not be entitled to the benefits of Section 5.06 unless the Company is notified of the
participation sold to such Participant and such Participant agrees, for the benefit of the Company, to comply with Section 5.06
as though it were a Bank.
(f)
Certain Pledges. Any Bank may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such Bank, including any such pledge or assignment to a
Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a security interest; provided that
no such pledge or assignment of a security interest shall release a Bank from any of its obligations hereunder or substitute
any such assignee for such Bank as a party hereto.
(g) No
Assignments to the Company or Affiliates. Anything in this Section to the contrary notwithstanding, no Bank may assign or participate
any interest in any Loan or Reimbursement Obligations held by it hereunder to the Company or any of its Affiliates or Subsidiaries
without the prior consent of each Bank.
11.07 Survival.
The obligations of the Company under Sections 5.01, 5.04, 5.06 and 11.03 and the obligations of the Banks under Section 10.05 hereof
shall survive the repayment of the Loans and the Reimbursement Obligations and the termination of the Commitments. In addition,
each representation and warranty made, or deemed to be made by a notice of any extension of credit (whether by means of a Loan
or a Letter of Credit), herein or pursuant hereto shall survive the making of such representation and warranty, and no Bank shall
be deemed to have waived, by reason of making any extension of credit hereunder (whether by means of a Loan or a Letter of Credit),
any Default that may arise by reason of such representation or warranty proving to have been false or misleading, notwithstanding
that such Bank or the Agent may have had notice or knowledge or reason to believe that such representation or warranty was false
or misleading at the time such extension of credit was made.
11.08 Captions.
The table of contents and captions and section headings appearing herein are included solely for convenience of reference and are
not intended to affect the interpretation of any provision of this Agreement.
11.09 Counterparts.
This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract. This Agreement, the other Basic
Documents and any separate letter agreements with respect to fees payable to the Agent and the Bank constitute the entire contract
between and 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 6.01, this Agreement shall become effective
when it shall have been executed by the Agent and when the Agent shall have received counterparts hereof which, when taken together,
bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page to this Agreement by
telecopy or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Agreement.
11.10 Governing
Law; Submission to Jurisdiction. Each of this Agreement and each other Basic Document will be governed by, and construed in
accordance with, the internal Laws of the state of New York (including for such purpose sections 5-1401 and 5-1402 of the General
Obligations Law of the State of New York). The Company hereby submits to the nonexclusive jurisdiction of the United States District
Court for the Southern District of New York and of any New York state court sitting in New York City for the purposes of all legal
proceedings arising out of or relating to this Agreement, any other Basic Document or the transactions contemplated hereby or thereby.
The Company irrevocably waives, to the fullest extent permitted by applicable Law, any objection that it may now or hereafter have
to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such
a court has been brought in an inconvenient forum. The Company hereby further irrevocably consents to the service of process in
any such legal proceedings in said courts by the mailing thereof by the Agent or any Bank by registered or certified mail, postage
prepaid, at its address set forth beneath its signature hereto.
11.11 Waiver
of Jury Trial. EACH OF THE COMPANY, THE AGENT AND THE BANKS HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER BASIC DOCUMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.
11.12 Severability.
Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability
of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate
such provision in any other jurisdiction.
11.13 Independence
of Covenants. All covenants and other agreements contained in this Agreement or any other Basic Document shall be given independent
effect so that, if a particular action or condition is not permitted by any of such covenants or other agreements, the fact that
such action or condition would be permitted by an exception to, or otherwise be within the limitations of, another covenant or
other agreement shall not avoid the occurrence of a Default or an Event of Default if such action is taken or such condition exists.
11.14 PATRIOT
ACT PROVISION. Each of the Agent and each Bank hereby notifies each Obligor that pursuant to the requirements of the USA Patriot
Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify
and record information that identifies each Obligor and other information that will allow the Agent and such Bank to identify each
Obligor in accordance with the Act.
11.15 No
Fiduciary Relationship. The relationship between the Company and the other Obligors on the one hand and the Agent and each
Bank on the other is solely that of debtor and creditor, and neither the Agent nor any Bank has any fiduciary or other special
relationship with the Company or any other Obligors, and no term or condition of any of the Basic Documents shall be construed
so as to deem the relationship between the Company and the other Obligors on the one hand and the Agent and each Bank on the other
to be other than that of debtor and creditor.
11.16 Construction.
The Company, each other Obligor (by its execution of the Basic Documents to which it is a party), the Agent, each Bank acknowledges
that each of them has had the benefit of legal counsel of its own choice and has been afforded an opportunity to review the Basic
Documents with its legal counsel and that the Basic Documents shall be construed as if jointly drafted by the parties thereto.
11.17 Interest
Rate Limitation.
(a) Limitation
to Maximum Rate; Recapture. No interest rate specified in any Basic Document shall at any time exceed the Maximum Rate. If
at any time the interest rate (the “Contract Rate”) for any obligation under the Basic Documents shall exceed
the Maximum Rate, thereby causing the interest accruing on such obligation to be limited to the Maximum Rate, then any subsequent
reduction in the Contract Rate for such obligation shall not reduce the rate of interest on such obligation below the Maximum Rate
until the aggregate amount of interest accrued on such obligation equals the aggregate amount of interest which would have accrued
on such obligation if the Contract Rate for such obligation had at all times been in effect. As used herein, the term “Maximum
Rate” means, at any time with respect to any Bank, the maximum rate of nonusurious interest under applicable Law that
such Bank may charge the Company. The Maximum Rate shall be calculated in a manner that takes into account any and all fees, payments,
and other charges contracted for, charged, or received in connection with the Basic Documents that constitute interest under applicable
Law. Each change in any interest rate provided for herein based upon the Maximum Rate resulting from a change in the Maximum Rate
shall take effect without notice to the Company at the time of such change in the Maximum Rate.
(b) Cure
Provisions. No provision of any Basic Document shall require the payment or the collection of interest in excess of the maximum
amount permitted by applicable Law. If any excess of interest in such respect is hereby provided for, or shall be adjudicated to
be so provided, in any Basic Document or otherwise in connection with the transactions contemplated under the Basic Documents,
the provisions of this Section shall govern and prevail and neither the Company nor the sureties, guarantors, successors, or assigns
of the Company shall be obligated to pay the excess amount of such interest or any other excess sum paid for the use, forbearance,
or detention of sums loaned pursuant hereto. In the event any Bank ever receives, collects, or applies as interest any such sum,
such amount which would be in excess of the maximum amount permitted by applicable Law shall be applied as a payment and reduction
of the principal of the obligations outstanding hereunder, and, if the principal of the obligations outstanding hereunder has been
paid in full, any remaining excess shall forthwith be paid to the Company. In determining whether or not the interest paid or payable
exceeds the Maximum Rate, the Company and each Bank shall, to the extent permitted by applicable Law, (i) characterize any non-principal
payment as an expense, fee, or premium rather than as interest, (ii) exclude voluntary prepayments and the effects thereof, and
(iii) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the entire contemplated
term of the obligations outstanding hereunder so that interest for the entire term does not exceed the Maximum Rate.
11.18 Waiver
of Consequential Damages, etc. To the extent permitted by applicable Law, no Obligor shall assert, and each Obligor hereby
waives, any claim against Agent, any Bank and any of their respective directors, officers, partners, employees, attorneys and agents,
on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising
out of, in connection with, or as a result of, this Agreement or any other Basic Documents, the transactions contemplated hereby
or thereby, any Loan or Letter of Credit or the use of the proceeds thereof.
11.19 Existing
Obligations. The Company hereby acknowledges, confirms and agrees that it is indebted to the Banks for all the “Obligations”
(as defined in the Existing Credit Agreement) under the Existing Credit Agreement, as of the close of business on June 19, 2014,
in the aggregate principal amount of $69,500,000 in respect of “Loans” (as defined in the Existing Credit Agreement)
and in the aggregate face amount of $72,158,426.10 in respect of “Letters of Credit” (as defined in the Existing Credit
Agreement), together with all accrued and unpaid interest thereon (to the extent applicable), and all fees, costs, expenses and
other charges relating thereto, all of which are unconditionally owing by the Company to the “Banks” (as defined in
the Existing Credit Agreement), without offset, defense or counterclaim of any kind, nature or description whatsoever.
11.20 Acknowledgement
of Security Interest and Basic Documents; Reaffirmation of Account Control Agreements.
(a) The
Company hereby acknowledges, confirms and agrees that the Agent has had and shall on and after the date hereof continue to have,
for itself and the ratable benefit of the Banks (and their Affiliates in respect of Hedging Obligations), a security interest in
and Lien upon the Collateral heretofore granted to the Agent (or its predecessors in whatever capacity) pursuant to the Basic Documents
to secure the Obligations.
(b) The
Liens and security interest of the Agent in the Collateral shall be deemed to be continuously granted and perfected from the earliest
date of the granting and perfection of such Liens and security interests to the Agent (and its predecessors, whether under the
Existing Credit Agreement, this Agreement or any of the other Basic Documents (as defined in the Existing Credit Agreement or this
Agreement)).
(c) The
Company hereby reaffirms its obligations, covenants and agreements under each Account Control Agreement executed by it prior to
the date hereof and acknowledges and agrees that all such obligations, covenants and agreements are continuing and shall continue
in full force and effect on and after the date hereof in accordance with the terms thereof.
11.21 Basic
Documents. The Company hereby acknowledges, confirms and agrees that as of the date hereof: (i) the Existing Credit Agreement
and each of the other “Basic Documents” (as defined in the Existing Credit Agreement) were duly executed and delivered
by the Company or its Subsidiaries, as applicable, and are in full force and effect, (ii) the agreements and obligations of the
Company and its Subsidiaries contained in the Existing Credit Agreement and the other “Basic Documents” (as defined
in the Existing Credit Agreement) constitute the legal, valid and binding obligations of Company or its Subsidiaries, as applicable,
enforceable against them in accordance with their respective terms, and (iii) subject to Section 11.22, the Banks (and their Affiliates
in respect of Hedging Obligations) and the Agent are entitled to all of the rights and remedies provided for in the Existing Credit
Agreement and the “Basic Documents” (as defined in the Existing Credit Agreement).
11.22 Acknowledgments,
Amendment and Restatement. Effective on the Closing Date, this Agreement shall constitute an amendment and restatement in its
entirety of the Existing Credit Agreement. Each of the undersigned Banks hereby consents pursuant to Section 11.04 of the
Existing Credit Agreement to all of the amendments herein and in the other Basic Documents executed in connection herewith to the
Existing Credit Agreement and the other Basic Documents (as defined in the Existing Credit Agreement) as in effect immediately
prior to the Closing Date (collectively, the “Existing Loan Documents”). The parties hereto acknowledge and agree that
(a) this Agreement and the other Basic Documents executed and delivered in connection herewith do not constitute a novation, payment,
satisfaction, reborrowing, or termination of the Company’s Obligations or any Credit Exposure (under and as defined in the
Existing Credit Agreement and the Existing Loan Documents) previously made available to the Company under the Existing Credit Agreement
and outstanding on the Closing Date; (b) such Obligations and Credit Exposure (under and as defined in the Existing Credit Agreement)
are in all respects continuing as Obligations and Credit Exposure under this Agreement with only the terms thereof being modified
as provided in this Agreement and the other Basic Documents; (c) the Liens and security interests as granted under the Security
Documents (as defined in the Existing Credit Agreement) securing payment of such Obligations (as defined in the Existing Credit
Agreement) are in all respects continuing and in full force and effect and secure the payment of the Obligations with only the
terms of certain of such Security Documents (as defined in the Existing Credit Agreement) being modified as provided in the Security
Documents and (d) all references in the Basic Documents to the Existing Credit Agreement shall be deemed references to the
Existing Credit Agreement as amended and restated hereby, and as further amended, supplemented or otherwise modified from time
to time.
11.23 Reallocation
of Outstanding Credit Exposure. Each of the Banks hereby agrees as follows:
(i) Each
Bank (other than New Closing Banks) shall pay to the Agent on the Closing Date, in immediately available funds, an amount equal
to the amount, if any, by which the sum of such Bank’s Fronting Exposure (other than Letter of Credit Liabilities under clause
(a) of the definition of such term herein) plus its Revolving Loan Commitment Percentage of the aggregate principal amount
of all Revolving Loans, in each case outstanding immediately upon the effectiveness of the Closing Date (before giving effect to
any new extensions of credit under this Agreement) exceeds the “Credit Exposure” (under and as defined in the Existing
Credit Agreement) (other than Letter of Credit Liabilities under clause (a) of the definition of such term herein) of such Bank
immediately prior to the Closing Date (after giving effect to any reduction of the “Commitments” (under and as defined
in the Existing Credit Agreement) required under Section 6.01(b) hereof). Such amount paid by any such Bank shall be deemed the
purchase price for the acquisition by such Bank of such additional amount of Credit Exposure and corresponding Commitments from
the other Banks, as applicable. The Agent shall distribute such amounts as received from such Banks as may be necessary so that
the Credit Exposure is held by the Banks in accordance with their respective Revolving Loan Commitment Percentages.
(ii) Each
New Closing Bank shall pay to the Agent on the Closing Date, in immediately available funds, an amount equal to the amount of such
New Closing Bank’s Fronting Exposure (other than Letter of Credit Liabilities under clause (a) of the definition of such
term herein) plus its Revolving Loan Commitment Percentage of the aggregate principal amount of all Revolving Loans to be
outstanding immediately upon the Closing Date (before giving effect to any new extensions of credit under this Agreement. Such
amount paid by any such New Closing Bank shall be deemed the purchase price for the acquisition by such New Closing Bank of such
amount of Credit Exposure and corresponding Commitments from the other Banks, as applicable. The Agent shall distribute such amounts
as received from the New Closing Banks as may be necessary so that the Credit Exposure is held by the Banks in accordance with
their respective Revolving Loan Commitment Percentages.
(iii) Each
Bank which receives a payment in connection with clause (i) or (ii) above (each, a “Selling Bank”) shall be
deemed to have sold and assigned, without recourse to such Selling Bank, to the other applicable Banks (each, a “Purchasing
Bank”), and such Purchasing Banks shall be deemed to have purchased and assumed without recourse to the Selling Banks,
Credit Exposure in amounts such that after giving effect thereto each Bank shall hold Credit Exposure in accordance with their
respective Revolving Loan Commitment Percentages.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be duly executed and delivered as of the day and year first above written.
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EMPIRE RESOURCES, INC. |
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By: |
/s/ Sandra Kahn |
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Sandra R. Kahn, Vice President |
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Address for Notices: |
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Empire Resources, Inc. |
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One Parker Plaza |
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Fort Lee, New Jersey 07024 |
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Attention: Ms. Sandra R. Kahn |
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Facsimile No.: (201) 944-2226 |
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Telephone No.: (201) 944-2200 |
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COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”, NEW YORK BRANCH, as Agent, Swing Line Bank, Issuing Bank and as a Bank |
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By: |
/s/ Chan K. Park |
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Name: Chan K. Park |
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Title: Managing Director |
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By: |
/s/ Xander Willemsen |
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Name: Xander Willemsen |
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Title: Executive Director |
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Address for Notices: |
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c/o Rabobank International |
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245 Park Avenue |
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New York, New York 10167 |
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Attention: Frank Imperato |
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Telecopy No. (212) 916-3731 |
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Telephone No. (212) 808-6815 |
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With copies to: |
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Rabobank International |
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245 Park Avenue |
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New York, New York 10167 |
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Attention: Xander Willemsen |
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Telecopy No.: (914) 304-9321 |
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Telephone No.: (212) 574-7377 |
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and |
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Rabobank International |
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245 Park Avenue |
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New York, New York 10167 |
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Attention: Naoko Kojima |
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Telecopy No.: (212) 808-2578 |
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Telephone No.: (212) 808-6812 |
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BNP PARIBAS, as Syndication Agent and a Bank |
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By: |
/s/ Karlien Zumpolle |
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Name: Karlien Zumpolle |
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Title: Vice President |
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By: |
/s/ Bradley Dingwall |
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Name: Bradley Dingwall |
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Title: Director |
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Address for Notices: |
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787 Seventh Avenue, 9th Floor |
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New York, New York 10019 |
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Attention: |
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Facsimile No.: |
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Telephone No.: |
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Email: |
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SOCIÉTÉ GÉNÉRALE S.A., as a Bank |
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By: |
/s/ Barbara Paulsen |
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Name: Barbara Paulsen |
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Title: Managing Director |
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By: |
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Name: |
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Title: |
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Address for Notices: |
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245 Park Avenue |
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New York, NY 10167 |
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Attention: |
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Facsimile No.: |
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Telephone No.: |
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Email: |
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BROWN BROTHERS HARRIMAN & CO., as a Bank |
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By: |
/s/ Paul Feldman |
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Name: Paul Feldman |
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Title: Managing Director |
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By: |
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Name: |
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Title: |
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Address for Notices: |
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140 Broadway |
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New York, New York 10005 |
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Attention: |
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Facsimile No.: |
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Telephone No.: |
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Email: |
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RB INTERNATIONAL FINANCE (USA) LLC, as a Bank |
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By: |
/s/ Astrid Wilke |
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Name: Astrid Wilke |
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Title: Group Vice President |
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By: |
/s/ Katrin Lange-Hornby |
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Name: Katrin Lange-Hornby |
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Title: Vice President |
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Address for Notices: |
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1133 Avenue of the Americas, 16th Floor |
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New York, New York 10036 |
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Attention: |
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Facsimile No.: |
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Telephone No.: |
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Email: |
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ABN AMRO CAPITAL USA LLC, as a Bank |
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By: |
/s/ Jaime Matos |
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Name: Jaime Matos |
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Title: Vice President |
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By: |
/s/ Urvashi Zutshi |
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Name: Urvashi Zutshi |
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Title: Managing Director |
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Address for Notices: |
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100 Park Avenue |
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New York, New York 10017 |
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Attention: |
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Facsimile No.: |
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Telephone No.: |
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Email: |
Index to Exhibits
and Schedules
EXHIBIT A |
– |
Form of Note |
EXHIBIT B |
– |
Form of Borrowing Base Certificate |
EXHIBIT C |
– |
Form of Security Agreement |
EXHIBIT D |
– |
Form of Subsidiary Guarantee |
EXHIBIT E |
– |
Form of Assignment and Assumption |
EXHIBIT F |
– |
Form of Increase and New Bank Agreement |
EXHIBIT G |
– |
Form of Compliance Certificate |
EXHIBIT H |
– |
Intentionally omitted |
EXHIBIT I |
– |
Form of Borrowing Request |
EXHIBIT J |
– |
Form of Notice of Prepayment, Conversion and Continuation |
EXHIBIT K |
– |
Subordination Terms |
EXHIBIT L |
– |
Intentionally omitted |
EXHIBIT M |
— |
Form of Intercreditor Agreement |
|
|
|
SCHEDULE A |
– |
Commitments |
SCHEDULE I |
– |
Indebtedness |
SCHEDULE II |
– |
Investments |
SCHEDULE III |
– |
Subsidiaries |
SCHEDULE IV |
— |
Limitations on Dividend Clause and Negative Pledge Clauses |
SCHEDULE V |
- |
Credit Insurance |
EXHIBIT A
FORM OF
PROMISSORY
NOTE
$[Principal Amount] |
[Date] |
|
New York, New York |
FOR VALUE RECEIVED,
EMPIRE RESOURCES, INC., a Delaware corporation (the “Company”), hereby promises to pay to [Insert name of
Bank] (the “Bank”), for account of its respective Applicable Lending Offices provided for by the Credit
Agreement referred to below, the principal sum of $[Principal Amount] (or such lesser amount as shall equal the aggregate
unpaid principal amount of the Loans made by the Bank to the Company under the Credit Agreement), in lawful money of the United
States of America and in immediately available funds, on the dates and in the principal amounts provided in the Credit Agreement,
and to pay interest on the unpaid principal amount of each such Loan, at such office, in like money and funds, for the period commencing
on the date of such Loan until such Loan shall be paid in full, at the rates per annum and on the dates provided in the Credit
Agreement.
The date, amount, Type,
interest rate and duration of Interest Period (if applicable) of each Loan made by the Bank to the Company, and each payment made
on account of the principal thereof, shall be recorded by the Bank on its books, provided that the failure of the Bank to
make any such recordation shall not affect the obligations of the Company to make a payment when due of any amount owing under
the Credit Agreement or hereunder in respect of the Loans made by the Bank.
This Note (i) is one
of the Notes referred to in the Amended and Restated Credit Agreement dated as of June 19, 2014 (as amended, restated, supplemented
or otherwise modified and in effect from time to time, the “Credit Agreement”) among the Company, the banks
from time to time party thereto and Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”,
New York Branch, as Agent, (ii) is entitled to the benefits of the Credit Agreement and (iii) evidences Loans made by the Bank
under the Credit Agreement. Terms used but not defined in this Note have the respective meanings assigned to them in the Credit
Agreement.
The Credit Agreement
provides for the acceleration of the maturity of this Note upon the occurrence of certain events and for prepayments of Loans upon
the terms and conditions specified therein.
Except as permitted
by Section 11.06 of the Credit Agreement, this Note may not be assigned by the Bank to any other Person.
This Note shall be
governed by, and construed in accordance with, the law of the State of New York.
|
EMPIRE RESOURCES, INC. |
|
|
|
|
By |
|
|
|
Name: |
|
|
Title: |
FORM OF
SWING LINE
NOTE
$[Principal Amount] |
[Date] |
|
New York, New York |
FOR VALUE RECEIVED,
EMPIRE RESOURCES, INC., a Delaware corporation (the “Company”), hereby promises to pay to [Insert name of
Bank] (the “Swing Line Bank”), for account of its respective Applicable Lending Offices provided for by
the Credit Agreement referred to below, the principal sum of $[Principal Amount] (or such lesser amount as shall equal the
aggregate unpaid principal amount of the Swing Line Loans made by the Swing Line Bank to the Company under the Credit Agreement),
in lawful money of the United States of America and in immediately available funds, on the dates and in the principal amounts provided
in the Credit Agreement, and to pay interest on the unpaid principal amount of each such Swing Line Loan, at such office, in like
money and funds, for the period commencing on the date of such Swing Line Loan until such Swing Line Loan shall be paid in full,
at the rates per annum and on the dates provided in the Credit Agreement.
The date and amount
of each Swing Line Loan made by the Swing Line Bank to the Company, and each payment made on account of the principal thereof,
shall be recorded by the Swing Line Bank on its books, provided that the failure of the Swing Line Bank to make any such
recordation shall not affect the obligations of the Company to make a payment when due of any amount owing under the Credit Agreement
or hereunder in respect of the Swing Line Loans made by the Swing Line Bank.
This Swing Line Note
(i) is one of the Notes referred to in the Amended and Restated Credit Agreement dated as of June 19, 2014 (as amended, restated,
supplemented or otherwise modified and in effect from time to time, the “Credit Agreement”) among the Company,
the banks from time to time party thereto and Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”,
New York Branch, as Agent, (ii) is entitled to the benefits of the Credit Agreement and (iii) evidences Swing Line Loans made by
the Swing Line Bank under the Credit Agreement. Terms used but not defined in this Swing Line Note have the respective meanings
assigned to them in the Credit Agreement.
The Credit Agreement
provides for the acceleration of the maturity of this Swing Line Note upon the occurrence of certain events and for prepayments
of Swing Line Loans upon the terms and conditions specified therein.
Except as permitted
by Section 11.06 of the Credit Agreement, this Swing Line Note may not be assigned by the Swing Line Bank to any other Person.
This Swing Line Note
shall be governed by, and construed in accordance with, the law of the State of New York.
|
EMPIRE RESOURCES, INC. |
|
|
|
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By |
|
|
|
Name: Sandra R. Kahn |
|
|
Title: Vice President |
EXHIBIT
B
Form
of Borrowing Base Certificate
Coöperatieve
Centrale
Raiffeisen-Boerenleenbank
B.A.,
“Rabobank
Nederland”,
New
York Branch, as agent
c/o
Rabobank International
245
Park Avenue
New
York, NY 10167
Phone No. |
212-808-6815 |
Fax No. |
212-916-3731 |
Attention: |
Frank Imperato / Naoko Kojima / Xander Willemsen |
And
each Bank
Ladies
and Gentlemen:
This
Borrowing Base Certificate as of _____________, 20__ (the “Computation Date”) is executed and delivered by
Empire Resources, Inc. (the “Company”) to Coöperatieve Centrale Raiffeisen–Boerenleenbank B.A.,
“Rabobank Nederland”, New York Branch, as agent (in such capacity, together with its successors in such capacity,
the “Agent”), pursuant to that certain Amended and Restated Credit Agreement dated as of June 19, 2014
(as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among
the Company, the banks from time to time party thereto and the Agent. All terms used herein shall have the meanings assigned to
them in the Credit Agreement.
The
Company represents and warrants to the Agent and the Banks that all information contained herein is true, correct, and complete,
and that the property included in the calculations below represents the property that qualifies for purposes of determining the
Borrowing Base under the Credit Agreement. The Company also represents and warrants that all figures listed below or attached
hereto have been calculated based on the provisions of the Credit Agreement.
The
Company represents and warrants to the Agent and the Banks that the representations and warranties of the Obligors contained in
the Basic Documents are true and correct in all material respects on and as of the date of this Borrowing Base Certificate as
if made on and as of the date hereof except to the extent that such representations and warranties relate specifically to another
date, and that no Default exists.
BORROWING BASE SUMMARY: |
|
|
|
A. |
Borrowing Base (as detailed from schedule 1) |
|
|
$__________ |
B. |
Revolving Loan Commitments |
|
|
$__________ |
C. |
Lesser of Line A or Line B |
|
|
$__________ |
D. |
Credit Exposure: |
|
|
|
|
(i) |
Loans |
$__________ |
|
|
|
(ii) |
Letters of Credit |
$__________ |
|
|
|
(iii) |
Total |
|
|
$__________ |
E. |
Availability
(Line
C, minus Line D(iii)) |
|
|
$__________ |
Borrowing Base Certificate, Page 1 |
In
the event of any conflict between this Borrowing Base Certificate and the Credit Agreement, the Credit Agreement shall control.
Date: __________, 20__. |
|
|
|
|
Borrower: |
|
|
|
EMPIRE RESOURCES, INC. |
|
|
|
|
By: |
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|
|
Sandra Kahn, Vice President and Chief Financial Officer |
Borrowing Base Certificate, Page 2 |
SCHEDULE
1
TO
BORROWING
BASE CERTIFICATE
EMPIRE
RESOURCES, INC.
|
|
Amount |
|
Advance
Rate |
|
Amount
Times
Advance Rate |
|
1. |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Eligible
Net Liquidating Value of Brokerage Accounts1 |
$__________ |
|
85% |
|
$__________ |
|
|
|
|
|
|
|
|
|
|
|
(b) |
Tier I Eligible
Receivables |
$__________ |
|
90% |
|
$__________ |
|
|
|
|
|
|
|
|
|
|
|
(c) |
Tier II Eligible
Receivables2 |
$__________ |
|
80% |
|
$__________ |
|
|
|
|
|
|
|
|
|
|
|
(d) |
Australian Receivables3 |
$__________ |
|
70% |
|
$__________ |
|
|
|
|
|
|
|
|
|
|
|
(e) |
Eligible Inventory
Ordered Under L/C |
$__________ |
|
80% |
|
$__________ |
|
|
|
|
|
|
|
|
|
|
|
(f) |
Eligible Inventory4 |
$__________ |
|
80% |
|
$__________ |
|
|
|
|
|
|
|
|
|
|
|
(g) |
Eligible Unsold
Inventory5 |
$__________ |
|
65% |
|
$__________ |
|
|
|
|
|
|
|
|
|
|
|
(h) |
Pledged Cash |
$__________ |
|
100% |
|
$__________ |
|
|
|
|
|
|
|
|
|
2. |
Total
Assets (sum of lines (a), (b), (c), (d), (e), (f), (g) and (h)) |
|
|
|
|
$__________ |
|
|
|
|
|
|
|
|
|
3. |
Deductions
for Reserves |
$__________ |
|
100% |
|
($__________) |
|
|
|
|
|
|
|
|
|
4. |
Deductions
for Indebtedness secured by Permitted Borrowing Base Liens |
$__________ |
|
100% |
|
($__________) |
|
|
|
|
|
|
|
|
|
5. |
Borrowing
Base (line 2 minus line 3 minus line 4) |
|
|
|
|
$ |
|
1
To be included in Borrowing Base calculation only if and to the extent requested by the Company.
2
The aggregate amount of Tier II Eligible Receivables (a) that are not Credit Insured Receivables, owing from any one account
debtor (and its Affiliates) at any time shall not exceed $1,500,000 (per account debtor (and its Affiliates)), and (b) included
in the Borrowing Base at any time shall not exceed $6,500,000 (after giving effect to the applicable advance rate), in each case
(under clauses (a) and (b)), unless otherwise approved in writing by the Required Banks.
3
In no event shall the aggregate amount of the Australian Receivables included in the Borrowing Base at any time exceed an
amount equal to 10% of the Borrowing Base (after giving effect to the applicable advance rate).
4
In no event shall the aggregate amount of the Eligible Inventory included in the Borrowing Base at any time exceed an amount
equal to 65% of the Borrowing Base (after giving effect to the applicable advance rate).
5
In no event shall the aggregate amount of Eligible Unsold Inventory included in the Borrowing Base at any time exceed $6,500,000
(after giving effect to the applicable advance rate) and in no event shall the aggregate amount of Eligible Unsold Inventory included
in the Borrowing Base at any time which is stainless steel exceed $5,000,000 (after giving effect to the applicable advance rate).
Borrowing Base Certificate, Page 3 |
EXHIBIT
E
ASSIGNMENT AND ASSUMPTION
This Assignment and
Assumption (the “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered
into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the
“Assignee”). Capitalized terms used but not defined herein shall have the meanings given to them in the Credit
Agreement identified below (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”),
receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached
hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth
herein in full.
For an agreed consideration,
the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from
the Assignor, subject to and in accordance with Standard Terms and Conditions and the Credit Agreement, as of the Effective Date
inserted by the Agent as contemplated below (i) all of the Assignor's rights and obligations in its capacity as a Bank under the
Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage
interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified
below (including any letters of credit, guarantees, acceptances and swingline loans included in such facilities) and (ii) to the
extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in
its capacity as a Bank) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement,
any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on
or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory
claims and all other claims at law or in equity related to the right and obligations sold and assigned pursuant to clause (i) above
(the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as,
the “Assigned Interest”). Such sale and assignment is without recourse to the Assignor and, except as expressly
provided in this Assignment and Assumption, without representation or warranty by the Assignor.
1. |
Assignor: |
|
|
|
|
|
|
2. |
Assignee: |
|
|
|
|
|
[and is an Affiliate/Approved Fund of [identify Bank]1] |
|
|
|
|
3. |
Borrower: |
|
Empire Resources, Inc. |
|
|
|
|
|
|
|
|
4. |
Agent: |
|
Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, as the agent under the Credit Agreement |
|
|
|
|
5. |
Credit Agreement: |
|
Amended and Restated Credit Agreement dated as of June __, 2014 among Empire Resources, Inc., the banks from time to time party thereto and Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, as Agent. |
1 Select as applicable.
ASSIGNMENT AND ASSUMPTION, Page 1 |
Aggregate Amount of
Commitment/Loans for all
Banks | | |
Amount of Commitment/Loans Assigned | | |
Percentage Assigned of
Commitment/Loans | |
$ | | | |
$ | | | |
| | % |
[7. |
Trade Date: |
|
______________]4 |
Effective Date:
,
20 [TO BE INSERTED BY AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER
IN THE REGISTER THEREFOR.]
The terms set forth
in this Assignment and Assumption are hereby agreed to:
|
ASSIGNOR |
|
|
|
[NAME OF ASSIGNOR] |
|
|
|
|
By: |
|
|
|
Name: |
|
|
Title: |
|
|
|
ASSIGNEE |
|
|
|
[NAME OF ASSIGNEE] |
|
|
|
|
By: |
|
|
|
Name: |
|
|
Title: |
4 To be completed if the Assignor and the Assignee
intend that the minimum assignment amount is to be determined as of the Trade Date.
ASSIGNMENT AND ASSUMPTION, Page 2 |
[Consented to and]5 Accepted: |
|
|
|
Coöperatieve Centrale |
|
Raiffeisen-Boerenleenbank B.A., |
|
“Rabobank Nederland”, New |
|
York Branch, as Agent |
|
|
|
|
By: |
|
|
|
Name: |
|
|
Title: |
|
|
|
|
By: |
|
|
|
Name: |
|
|
Title: |
|
|
|
[Consented to:]6 |
|
|
|
EMPIRE RESOURCES, INC. |
|
|
|
|
By: |
|
|
|
Name: |
|
|
Title: |
|
5 To be added only if the consent of the Agent is
required by the terms of the Credit Agreement.
6 To be added only if the consent of the Company
and/or other parties (e.g. Swing Line Bank, Issuing Bank) is required by the terms of the Credit Agreement.
ASSIGNMENT AND ASSUMPTION, Page 3 |
ANNEX I
Empire
Resources, Inc.
credit
agreement
STANDARD TERMS AND CONDITIONS FOR
ASSIGNMENT AND ASSUMPTION
1. Representations
and Warranties
1.1 Assignor.
The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned
Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver the Assignment and Assumption and to consummate the transactions contemplated hereby;
and (b) assumes responsibility with respect to (i) any statements, warranties or representations made in or in connection
with the Credit Agreement or any other Basic Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency
or value of any Basic Documents or any collateral thereunder, (iii) the financial condition of the Company, any of the Subsidiaries
or Affiliates or any other Person obligated in respect of any Basic Document or (iv) the performance or observance by the Company,
any of the Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Basic Document.
1.2 Assignee.
The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary,
to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Bank
under the Credit Agreement, (ii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement
as a Bank thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Bank thereunder, (iii) it has
received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to the
Credit Agreement and such other documents and information as it has deemed appropriate to make its own credit analysis and decision
to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis
and decision independently and without reliance on the Agent or any other Bank, and (iv) if it is a Foreign Bank, attached
to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement,
duly completed and executed by the Assignee; (b) agrees that (i) it will, independently and without reliance on the Agent, the
Assignor or any other Bank, and based on such documents and information as it shall deem appropriate at the time, continue to make
its own credit decisions in taking or not taking action under Basic Documents, and (ii) it will perform in accordance with their
terms all of the obligations which by the terms of the Basic Documents are required to be performed by it as a Bank; and (c) agrees
that it will be bound by the terms and provisions of the Intercreditor Agreement.
2. Payments.
From and after the Effective Date, the Agent shall make all payments in respect of the Assigned Interest (including payments of
principal, interest, fees and other amounts) to the Assignee whether such amounts which have accrued prior to or after the Effective
Date. The Assignor and the Assignee shall make all appropriate adjustments
in payments by the Agent for periods prior to the Effective Date or with respect to the making of this assignment directly between
themselves.
3. General Provisions.
This Assignment and Assumption shall be binding upon, and inure to the benefit of the parties hereto and their respective successors
and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective
as delivery of a manually executed counterpart of a signature page of this Assignment and Assumption. This Assignment and Assumption
shall be governed by and construed in accordance with, the law of the State of New York, other than those conflict of law provisions
that would defer to the substantive laws of another jurisdiction. This governing law election has been made by the parties in reliance
(at least in part) on Section 5-1401 of the General Obligations Law of the State of New York, as amended (as and to the extent
applicable), and other applicable law.
ASSIGNMENT AND ASSUMPTION, Page 4 |
EXHIBIT F
FORM OF
INCREASE AND NEW BANK AGREEMENT
INCREASE AND NEW
BANK AGREEMENT, dated as of _____ ___, 20__ (this “Agreement”), prepared pursuant to Section 2.05(d) of
the Amended and Restated Credit Agreement dated as of June 19, 2014 (as amended, restated, supplemented or otherwise modified through
the date hereof, the “Existing Credit Agreement”; as modified hereby and as further amended, restated, supplemented
or otherwise modified from time to time, the “Credit Agreement”), among EMPIRE RESOURCES, INC. (the “Company”),
EMPIRE RESOURCES PACIFIC, LTD. and certain other Subsidiaries of the Borrower from time to time party to the Subsidiary Guarantee
(each a “Guarantor”; and collectively, the “Guarantors”), the several Banks from time to
time party thereto, and COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”, NEW YORK BRANCH,
as agent (in such capacity, together with its successors in such capacity, the “Agent”) and as a Fronting Bank.
RECITALS
Pursuant to Section
2.05(d) of the Existing Credit Agreement, the undersigned Banks party to the Existing Credit Agreement (the “Increasing
Banks”) and the undersigned Persons not party to the Existing Credit Agreement (the “New Banks”),
have agreed to increase their (or make their) Commitments (as applicable) as governed by the Credit Agreement on the terms and
subject to the conditions set forth in this Agreement.
NOW, THEREFORE, in
consideration of the premises contained herein and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Company, the Agent, the Issuing Banks, the Increasing Banks and the New Banks hereby agree as follows:
1. Defined
Terms. Unless otherwise defined herein, terms defined in the Existing Credit Agreement are used herein as therein defined.
2. Increase
Agreement and New Bank Agreement.
(a) Each
Increasing Bank party to this Agreement hereby agrees to increase its respective Commitment (as modified pursuant to Section 3
of this Agreement), in the amount set forth in Schedule 1.0,1
such increase to be effective as of __________ ___, 20__ (the “Increase Effective Date”).
(b) Each
New Bank party to this Agreement hereby agrees to make Revolving Loans to the Company and participate in Letters of Credit and
Swing Line Loans for the account of, the Company, from time to time until the Revolving Credit Commitment Termination Date in an
aggregate principal amount at any one time outstanding not to exceed its respective Commitment (as set forth on Schedule 1.0),
such agreement to be effective as of the Increase Effective Date. From and after the Increase Effective Date, each New Bank shall
be a party to the Credit Agreement and, to the extent provided in this Agreement, have the rights and obligations of a Bank under
the Credit Agreement and under the other Basic Documents and shall be bound by the provisions thereof.
1
The aggregate amount of all increases shall not exceed $75,000,000.
(c) With
respect to (i) any increase in the Commitment of any Increasing Bank and (ii) any New
Bank, such Increasing Bank and such New Bank shall hold an undivided interest in and to (A) all the rights and obligations of a
Bank under the Credit Agreement in connection with its increased or new Commitment, as the case may be, in the principal amount
set forth on Schedule 1.0 hereto and (B) all rights and obligations of a Bank in connection therewith under the other Basic Documents.
3. Commitments;
Increasing Banks; New Banks.
(a) Effective
upon the Increase Effective Date, the Commitments for each Increasing Bank, each Non Increasing Bank (as defined below) and each
New Bank shall be as set forth in Schedule 1.0.
(b) Any
Increasing Bank shall pay to the Agent on the Increase Effective Date, in immediately available funds, an amount equal to the amount,
if any, by which such Increasing Bank’s Revolving Loan Commitment Percentage (determined after giving effect to the adjustment
of the Commitments pursuant to Section 3(a) of this Agreement, including the increase of such Increasing Bank’s Commitment)
of the aggregate principal amount of the Revolving Loans and funded participation interests in Reimbursement Obligations and Swing
Line Loans to be outstanding immediately upon the Increase Effective Date exceeds the aggregate principal amount of Revolving Loans
and funded participation interests in Reimbursement Obligations and Swing Line Loans owing to such Increasing Bank immediately
prior to the Increase Effective Date. Such amount paid by any such Increasing Bank shall be deemed the purchase price for the acquisition
by such Increasing Bank of such additional amount of Revolving Loans and funded participation interests in Reimbursement Obligations
and Swing Line Loans from Banks whose Commitments are not increased under this Agreement (“Non Increasing Banks”)
and, if applicable, other Banks. The Agent shall distribute such amounts as received from the Increasing Banks as may be necessary
so that the Revolving Loans and funded participation interests in Reimbursement Obligations and Swing Line Loans are held by the
Increasing Banks, New Banks and Non Increasing Banks in accordance with their respective Revolving Loan Commitment Percentages
(determined after giving effect to the adjustment of Revolving Loan Commitment Percentages pursuant to Section 3(a) of this Agreement).
(c) Any
New Bank shall pay to the Agent on the Increase Effective Date, in immediately available funds, an amount equal to the amount of
such New Bank’s Revolving Loan Commitment Percentage (determined after giving effect to the adjustment of the Commitments
pursuant to Section 3(a) of this Agreement) of the aggregate principal amount of the Revolving Loans and funded participation interests
in Reimbursement Obligations and Swing Line Loans to be outstanding immediately upon the Increase Effective Date. Such amount paid
by any such New Bank shall be deemed the purchase price for the acquisition by such New Bank of such amount of Revolving Loans
and funded participation interests in Reimbursement Obligations and Swing Line Loans from Non Increasing Banks and, if applicable,
other Banks upon the effectiveness of this Agreement. The Agent shall distribute such amounts as received from the New Banks as
may be necessary so that the Revolving Loans and funded participation interests in Reimbursement Obligations and Swing Line Loans
are held by the Increasing Banks, New Banks and Non Increasing Banks in accordance with their respective Revolving Loan Commitment
Percentages (determined after giving effect to the adjustment of Revolving Loan Commitment Percentages pursuant to Section 3(a)
of this Agreement).
(d) Each
Increasing Bank and Non Increasing Bank (each, a “Selling Bank”) which receives a payment in connection with
clause (b) or (c) above shall be deemed to have sold and assigned, without recourse to such Selling Bank, to the applicable Increasing
Banks and/or New Banks (each, a “Purchasing Bank”), and such Purchasing Banks shall be deemed to have purchased
and assumed without recourse to the Selling Banks, Revolving Loans and funded participation interests in Reimbursement Obligations
and Swing Line Loans in amounts such that after giving effect thereto each Bank shall hold Revolving Loans and funded participation
interests in Reimbursement Obligations and Swing Line Loans in accordance with its Revolving Loan Commitment Percentage (determined
after giving effect to the adjustment of Commitments pursuant to Section 3(a) of this Agreement).
4. Conditions
Precedent. This Agreement shall become effective upon the satisfaction of the following conditions precedent:
(a) Increase
Documents. The Agent shall have received (each of the following documents being referred to herein as an “Increase
Document”):
(i) this
Agreement, executed and delivered by a duly authorized officer of the Company, the Agent, the Issuing Banks, the Swing Line Bank,
each Increasing Bank and each New Bank, with a counterpart for each Bank, and
(ii) for
the account of each Bank requesting the same, a Note of the Company conforming to the requirements of the Credit Agreement, and
reflecting the Commitment of such Bank after giving effect to this Agreement, executed by a duly authorized officer of such Company.
(b) Increasing
Banks; New Banks. The Agent shall have received from each Increasing Bank and each New Bank the amounts required to be paid
by such Increasing Banks and New Banks pursuant to Section 3 of this Agreement.
(c) Governing
Documents. The Agent shall have received, with a counterpart for each Bank, certified copies of the charter and by laws (or
equivalent documents) of the Company, and of all corporate authority for the Company (including board of director resolutions,
evidence of the incumbency of officers and signature specimens of officers) with respect to the execution, delivery and performance
of this Agreement and each other document to be delivered by the Company from time to time in connection herewith, each dated as
of the Increase Effective Date with appropriate insertions and attachments, reasonably satisfactory in form and substance to the
Agent.
(d) Good
Standing Certificates. The Agent shall have received, with a copy for each Bank, evidence of the existence, good standing and
authority to transact business for the Company (i) from the Secretary of State of New Jersey and (ii) from the Secretary of State
of each other jurisdiction in which the failure of the Company to be in good standing or to have the authority to transact business
would result in a Material Adverse Effect.
(e) Legal
Opinions. The Agent shall have received, with a counterpart for each Bank, an executed opinion addressed to the Agent and each
of the Banks and dated the Increase Effective Date and covering such matters incident to the transactions contemplated by this
Agreement as the Agent, the Increasing Banks and the New Banks may reasonably require.
(f) Compliance
Certificate. The Agent shall have received a Compliance Certificate dated as of the Increase Effective Date, in form and substance
satisfactory to the Agent.
(g) Fees.
The Company shall have paid, in immediately available funds, any fees and other amounts (including, without limitation, pursuant
to Section 11.03 of the Credit Agreement) payable by the Company in connection with the increase of the Commitments.
(h) Other
Conditions. Each of the other conditions to the Increase Effective Date provided in Section 2.05(d) of the Existing Credit
Agreement, including, without limitation, the delivery of the certificate of an authorized officer required pursuant to Section
2.05(d)(iii)(D) of the Existing Credit Agreement, shall have been satisfied.
5. Reaffirmations.
(a) The
Company hereby acknowledges, confirms and agrees that all of the terms, provisions, obligations, guarantees and agreements of the
Company under the Security Agreement and the other Security Documents to which it is a party remain in full force and effect in
all respects and the Company hereby reaffirms its obligations and liabilities under the Security Agreement and the other Security
Documents to which it is a party and that the Collateral continues to secure the Obligations, which include the Obligations both
before and after giving effect to this Agreement, all without offset, defense or counterclaim.
(b) Each
Guarantor hereby acknowledges, confirms and agrees that all of the terms, provisions, obligations, guarantees and agreements of
such Guarantor under the Subsidiary Guarantee, the Security Agreement and the other Security Documents to which it is a party remain
in full force and effect in all respects and each Guarantor hereby reaffirms its obligations and liabilities under the Subsidiary
Guarantee and that the Collateral continues to secure its Obligations, which include such Obligations both before and after giving
effect to this Agreement, all without offset, defense or counterclaim.
6. Representations
and Warranties. To induce the undersigned Banks to enter into
this Agreement, the Company hereby represents and warrants to the undersigned Banks that, after giving effect to the increase of
the Commitments and the other modifications to the Existing Credit Agreement provided for herein, the representations and warranties
contained in the Credit Agreement and the other Basic Documents will be true and correct in all material respects as if made on
such date, except for those representations and warranties that by their terms were made as of a specified date which shall be
true and correct in all material respects on and as of such date, and that no Default or Event of Default shall have occurred and
be continuing.
7. Disclaimer.
Each New Bank and each Increasing Bank acknowledges and agrees that no Bank party to the Existing Credit Agreement (i) has made
any representation or warranty and shall have no responsibility with respect to any statements, warranties or representations made
in or in connection with the Credit Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or
value of the Credit Agreement, any other Basic Documents or any other instrument or document furnished pursuant thereto or in connection
therewith; (ii) has made any representation or warranty and has any responsibility with respect to the financial condition of the
Company or any other obligor or the performance or observance by the Company or any obligor of any of their respective obligations
under the Credit Agreement or any other Basic Documents or any other instrument or document furnished pursuant hereto or thereto.
Each Increasing Bank and each New Bank represents and warrants that it is legally authorized to enter into this Agreement, and
each New Bank (i) confirms that it has received a copy of the Existing Credit Agreement, together with copies of the financial
statements delivered pursuant to Section 8.01 thereof and such other documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into this Agreement; (ii) agrees that it will, independently and without reliance
upon the Increasing Banks or the Agent and based on such documents and information as it shall deem appropriate at the time, continue
to make its own credit decisions in taking or not taking action under the Credit Agreement, the other Basic Documents or any other
instrument or document furnished pursuant hereto or thereto or in connection herewith or therewith; (iii) appoints and authorizes
the Agent to take such action as agent on its behalf and to exercise such powers and discretion under the Credit Agreement, the
other Basic Documents or any other instrument or document furnished pursuant hereto or thereto as are delegated to the Agent by
the terms thereof, together with such powers as are incidental thereto; and (iv) agrees that it will be bound by the provisions
of the Credit Agreement and will perform in accordance with its terms all the obligations which by the terms of the Credit Agreement
are required to be performed by it as a Bank including, if it is organized under the laws of a jurisdiction outside the United
States, its obligation pursuant to subsection 5.06(f) of the Credit Agreement.
8. No
Other Amendments or Waivers. Except as expressly amended or waived hereby, the Credit Agreement and the other Basic Documents
shall remain in full force and effect in accordance with their respective terms, without any waiver, amendment or modification
of any provision thereof.
9. Effect
on Credit Agreement. From and after the Increase Effective
Date, each Increasing Bank and each New Bank party hereto shall be a party to the Credit Agreement and, to the extent provided
in this Agreement, have the rights and obligations of a Bank thereunder and under the other Basic Documents and shall be bound
by the provisions thereof.
10. Counterparts.
This Agreement may be executed by one or more of the parties hereto on any number of separate counterparts (including by facsimile
transmission of signature pages hereto) and all of said counterparts taken together shall be deemed to constitute one and the same
instrument.
11. Applicable
Law. This Agreement and the rights and obligations of the parties hereunder shall be governed by, and construed and interpreted
in accordance with, the law of the state of New York (without regard to the conflicts of laws principles thereof).
[SIGNATURE PAGES FOLLOW]
IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed and delivered as of the day and year first above written.
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EMPIRE RESOURCES, INC., |
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as the Company |
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By: |
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Name: |
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Title: |
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EMPIRE RESOURCES PACIFIC, LTD., |
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as a Guarantor |
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By: |
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Name: |
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Title: |
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[Additional Guarantors], |
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as a Guarantor |
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By: |
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Name: |
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Title: |
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COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”, NEW YORK BRANCH, as Agent and a Fronting Bank |
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By: |
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Name: |
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Title: |
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By: |
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Name: |
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Title: |
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BANKS |
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[NAME OF BANK] |
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By: |
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Name: |
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Title: |
Schedule 1.0 to
Increase and New Bank Agreement
BANKS AND COMMITMENTS
Bank | | |
Lending Office | | |
Amount of Increase | | |
Commitment Amount
(after giving effect to
increase, if any) | |
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EXHIBIT G
FORM OF
COMPLIANCE CERTIFICATE
for the
quarter/fiscal year ending __________ __,
_____
Coöperatieve Centrale
Raiffeisen-Boerenleenbank B.A.,
“Rabobank Nederland”,
New York Branch, as agent
c/o Rabobank International
245 Park Avenue
New York, NY 10167
Phone No. |
212-808-6815 |
Fax No. |
212-916-3731 |
Attention: |
Frank Imperato / Naoko Kojima / Xander Willemsen |
and each Bank
Ladies and Gentlemen:
This Compliance Certificate
(the “Certificate”) is being delivered pursuant to Section 8.01 of that certain Amended and Restated Credit
Agreement dated as of June 19, 2014 (as amended, restated, supplemented or otherwise modified from time to time, the “Agreement”)
among Empire Resources, Inc. (the “Company”), the banks from time to time party thereto and Coöperatieve
Centrale Raiffeisen–Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, as agent (in such capacity, together
with its successors in such capacity, the “Agent”). All terms used herein shall have the meanings assigned to
them in the Agreement. All the calculations set forth below shall be made pursuant to the terms of the Agreement.
The undersigned, an
authorized financial officer of the Company in his or her capacity as such financial officer and not in his or her individual capacity,
does hereby certify to the Agent and the Banks that:
1. DEFAULT |
No Event of Default exists or has occurred or, if an Event of Default exists, I have described on the attached Exhibit “A” the nature thereof and the steps taken or proposed to remedy such Event of Default. |
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Compliance |
2. SECTION 8.01 - Financial Statements and Records |
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(a) Annual audited financial statements of the Company on a consolidated basis within 90 days after the end of each fiscal year end (together with Compliance Certificate). |
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Yes |
No |
N/A |
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(b) quarterly unaudited financial statements of the Company on a consolidated basis within 45 days after each of the first three fiscal quarter ends (together with Compliance Certificate). |
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Yes |
No |
N/A |
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(c) Bi-Monthly Borrowing Base Certificate |
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Yes |
No |
N/A |
4. SECTION 8.04 - Insurance |
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Annual Evidence of Insurance on anniversary of the Closing Date. |
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Yes |
No |
N/A |
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5. SECTION 8.07 - Indebtedness |
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No additional Indebtedness except: |
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(a) Indebtedness of 6900 Quad Avenue, LLC not to exceed: |
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$1,300,000 |
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Actual outstanding: |
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$_______ |
Yes |
No |
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(b) Other unsecured Indebtedness of the Company |
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$250,000 |
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Actual outstanding: |
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$_______ |
Yes |
No |
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(c) Imbali Facility not to exceed: |
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€10,000,000 |
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Actual € amount outstanding: |
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€_______ |
Yes |
No |
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Actual $ equivalent amount outstanding: |
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$_______ |
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(d) Non-recourse Inventory financing amount outstanding |
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$_______ |
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(e) Reimbursement obligations in respect of letters of credit issued outside of the Agreement |
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$_______ |
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(f) Subordinated Debt |
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$_______ |
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(g) Pre-export financing Guarantees not to exceed: |
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$3,000,000 |
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Actual outstanding: |
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$_______ |
Yes |
No |
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(h) Aggregate $ equivalent amount of actual outstanding under the Indebtedness under lines (d), (e), (f) and (g) not to exceed: |
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$25,000,000 |
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Actual aggregate $ equivalent amount of actual outstanding under the Indebtedness under lines (d), (e), (f) and (g): |
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$_______ |
Yes |
No |
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(i) Capital Expenditures not to exceed: |
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$10,000,000 |
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Actual outstanding: |
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$_______ |
Yes |
No |
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(j) Indebtedness under the Uncommitted Credit Agreement not to exceed at any time an amount equal to 50% of the aggregate Revolving Loan Commitments |
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$_______ |
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Actual outstanding: |
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$_______ |
Yes |
No |
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(c) Australian Subsidiary Indebtedness not to exceed: |
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AUS$20,000,000 |
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Actual AUS$ amount outstanding: |
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AUS$_______ |
Yes |
No |
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6. SECTION 8.08 - Investments |
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(a) Investments in Imbali Metals BVBA not to exceed: |
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€4,000,000 |
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Actual Imbali Investments |
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€_______ |
Yes |
No |
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(b) Investments with Sub Debt proceeds not to exceed: |
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$12,000,000 |
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Actual Investments with Sub Debt proceeds: |
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$_______ |
Yes |
No |
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(c) Additional Investments not to exceed: |
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$500,000 |
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Actual additional Investments |
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$_______ |
Yes |
No |
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(d) Permitted Investments not to exceed1: |
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$_______ |
Yes |
No |
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7. SECTION 8.09 – Leverage Ratio |
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(a) Total Liabilities (including letters of credit) |
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$_________ |
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(b) Subordinated Debt |
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$_________ |
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(c) Tangible Net Worth |
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(i) amount of common stock; |
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$_________ |
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(ii) amount of surplus and retained earnings (minus any deficit); |
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$_________ |
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(iii) accumulated other comprehensive income; |
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$_________ |
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(iv) Subordinated Debt |
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$_________ |
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(v) Investments (other than Permitted Investments), the cost of treasury shares and all assets classified as intangibles (without duplication of deductions in respect of items already deducted in arriving at surplus and retained earnings) |
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($_________) |
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(vi) Sum of (i) through (iv) minus (v) |
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$_________ |
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(d) 7(a) minus 7(b) ¸ 7(c)(vi) |
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___ to 1.00 |
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(e) Maximum Leverage Ratio |
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6.00 to 1.00 |
Yes |
No |
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8. SECTION 8.10 – Net Working Capital |
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(a) Base Amount |
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$35,000,000 |
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(b) 25% of Company's Consolidated Net Income (only if a positive number) for the fiscal year most recently ended |
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$_________ |
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(c) Total minimum required Net Working Capital (8(a) plus 8(b)) |
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$_________ |
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(d) Actual Net Working Capital |
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$_________ |
Yes |
No |
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9. SECTION 8.11 – No Net Loss |
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Consolidated Net Income (but calculated before taxes and extraordinary items in accordance with GAAP) not to be less than negative $4,000,000 in the aggregate over two or more consecutive quarters |
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Yes |
No |
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10. SECTION
8.17 - Additional Domestic Subsidiaries |
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Joinder of new Domestic Subsidiaries promptly after the Domestic Subsidiary is formed or acquired. |
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Yes |
No |
N/A |
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Pledge of new Capital Securities in Domestic Subsidiaries and 65% of foreign Subsidiaries |
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Yes |
No |
N/A |
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11. SECTION 8.20 – Capital Expenditure Limit |
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(a) Capital Expenditures for logistical assets not to exceed: |
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$10,000,000 |
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(b) Actual Capital Expenditures for logistical assets |
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$_________ |
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(c) Compliance: (line 11(b) must be less than Line 11(a)) |
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Yes |
No |
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1 To be completed with respect to each category of
Permitted Investments.
IN WITNESS WHEREOF,
the undersigned has executed this Certificate effective as of the date first written above.
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EMPIRE RESOURCES, INC. |
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By: |
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Name: |
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Title: |
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EXHIBIT I
FORM OF
BORROWING REQUEST
Coöperatieve Centrale
Raiffeisen-Boerenleenbank B.A.,
“Rabobank Nederland”,
New York Branch, as agent
c/o Rabobank International
245 Park Avenue
New York, NY 10167
Phone No. |
212-808-6815 |
Fax No. |
212-916-3731 |
Attention: |
Frank Imperato / Naoko Kojima / Xander Willemsen |
and each Bank
Ladies and Gentlemen:
The undersigned is
an authorized officer of Empire Resources, Inc. (the “Company”) and is authorized to make and deliver this Borrowing
Request pursuant to that certain Amended and Restated Credit Agreement dated as of June 19, 2014 (as amended, restated, supplemented
or otherwise modified from time to time, the “Credit Agreement”) among the Company, the banks from time to time
party thereto and Coöperatieve Centrale Raiffeisen–Boerenleenbank B.A., “Rabobank Nederland”, New York Branch,
as agent (in such capacity, together with its successors in such capacity, the “Agent”). All terms defined in
the Credit Agreement shall have the same meaning herein. In accordance with the Credit Agreement, the Company hereby (check whichever
is applicable):
___ 1. Requests
that the Banks make an advance under the Revolving Loan Commitments which shall be a Base Rate Loans in the amount of $ _________
on __________.
___ 2. Requests
that the Banks make an advance on __________under the Revolving Loan Commitments as Eurodollar Loans with the amount of each Eurodollar
Loan and duration of the Interest Periods with respect thereto to be as follows:
Amount | |
| Interest Period | | |
| Maturity Date | |
1. | |
| _____ Month(s) | | |
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2. | |
| _____ Month(s) | | |
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3. | |
| _____ Month(s) | | |
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4. | |
| _____ Month(s) | | |
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___ 3. Requests
that the Swing Line Bank make an advance under the Swing Line Commitment in the amount of $__________ on __________.
___ 4. Requests
that _________ issue a Letter of Credit in the form attached hereto as Exhibit A with an original face amount of $__________
on __________.
In connection with
the foregoing and pursuant to the terms and provisions of the Credit Agreement, the undersigned hereby certifies to the Agent and
the Banks that the following statements are true and correct:
(i) The
representations and warranties contained in Section 7 of the Credit Agreement and in each of the other Basic Documents are true
and complete in all material respects on and as of the date hereof with the same force and effect as if made on and as of such
date except for any representation or warranty limited by its terms to a specific date.
(ii) No
Default exists or would result from the extension of credit requested hereunder.
(iii) After
giving effect to the credit extended pursuant to this request, the aggregate amount of Credit Exposure does not exceed the lesser
of the Borrowing Base (plus if applicable, with respect to any commercial Letter of Credit issued to secure the purchase
price of Inventory, 80% the cost of such Inventory that will be Eligible Inventory Ordered Under L/C once such Letter of Credit
is issued) or the aggregate Revolving Loan Commitments;
Obligations | |
Totals | |
a. | |
Current Revolving Loans | |
$ | | |
b. | |
Requested Revolving Loans | |
$ | | |
c. | |
Total Revolving Loans | |
$ | | |
d. | |
Current Swing Line Loans | |
$ | | |
e. | |
Requested Swing Line Loans | |
$ | | |
f. | |
Total Swing Line Loans | |
$ | | |
g. | |
Current Letter of Credit Liabilities | |
$ | | |
h. | |
Requested Letter of Credit Liabilities | |
$ | | |
i. | |
Total Letter of Credit Liabilities | |
$ | | |
j. | |
Total Current Obligations (Sum of Lines a., d. and g.) | |
$ | | |
k. | |
Total Requested Obligations (Sum of Lines b., e. and h.) | |
$ | | |
l. | |
Total Obligations After Request (Sum of Lines c., f. and i.) | |
$ | | |
m. | |
Aggregate Borrowing Base (from most recent Borrowing Base Report or Interim Borrowing Base Certificate) | |
$ | | |
n. | |
Plus with respect to any commercial Letter of Credit issued to secure the purchase price of Inventory, 80% the cost of such Inventory that will be Eligible Inventory Ordered Under L/C once such Letter of Credit is issued | |
$ | | |
o. | |
Total Aggregate Availability (sum of m. plus n.). | |
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p. | |
Availability after request (sum of o. minus l.) | |
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All information
supplied hereon is true, correct, and complete as of the date hereof.
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EMPIRE RESOURCES, INC. |
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By: |
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Name: |
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Title: |
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Dated as of: |
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requested extension of credit) |
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EXHIBIT J
FORM OF
NOTICE OF PREPAYMENT, CONTINUATION OR
CONVERSION
Coöperatieve Centrale
Raiffeisen-Boerenleenbank B.A.,
“Rabobank Nederland”,
New York Branch, as agent
c/o Rabobank International
245 Park Avenue
New York, NY 10167
Phone No. |
212-808-6815 |
Fax No. |
212-916-3731 |
Attention: |
Frank Imperato / Naoko Kojima / Xander Willemsen |
and each Bank
Ladies and Gentlemen:
The undersigned is
an authorized officer of Empire Resources, Inc. (the “Company”) and is authorized to make and deliver this notice
pursuant to that certain Amended and Restated Credit Agreement dated as of June 19, 2014 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”) among the Company, the banks from time to time
party thereto and Coöperatieve Centrale Raiffeisen–Boerenleenbank B.A., “Rabobank Nederland”, New York Branch,
as agent (in such capacity, together with its successors in such capacity, the “Agent”). All terms defined in
the Credit Agreement shall have the same meaning herein.
____ The
Company hereby gives Agent notice of prepayment of a Loan. Details of this prepayment are set forth on Schedule 1 hereto.
____ The
Company hereby gives Agent notice of the continuation of a Eurodollar Loan. Details of this Continuation are set forth on Schedule 2
hereto.
____ The
Company hereby gives Agent notice of the conversion of a Loan from one Type to another Type. Details of this Conversion are set
forth on Schedule 3 hereto.
In connection with
the foregoing and pursuant to the terms and provisions of the Credit Agreement, the undersigned hereby certifies to the Agent and
the Banks that the following statements are true and correct:
(a) The
representations and warranties contained in Section 7 of the Credit Agreement and in each of the other Basic Documents are true
and complete in all material respects on and as of the date hereof with the same force and effect as if made on and as of such
date except to the extent that such representations and warranties relate specifically to another date.
Notice of Prepayment Continuation or Conversion, Page 1 |
(b) No
Default exists or would result from the request made hereunder.
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Company: |
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EMPIRE RESOURCES INC. |
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By: |
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Name: |
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Dated as of: |
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Notice of Prepayment Continuation or Conversion, Page 2 |
SCHEDULE 1
NOTICE OF PREPAYMENT
1. The
date of prepayment is ______________ __, 20__.1
2. The
aggregate amount of the prepayment is $_____________.
3. The
prepayment should be applied as follows:
___ Revolving
Loan in the amount of $___________ (minimum amount of $1,000,000 and $250,000 increments for all Eurodollar Loans; and minimum
of $250,000 or multiples of $50,000 in excess thereof in the case of Base Rate Loans)
___ Swing
line Loan in the amount of $___________ (minimum amount of $500,000 and $25,000 increments)
1 Notice by 10:00 A.M. on the
Business Day of the proposed prepayment is required for prepayments of Base Rate Loans and Swing Line Loans. Three Business Days’
notice is required for prepayments of Eurodollar Loans.
SCHEDULE 1 to Notice of Prepayment Continuation or Conversion, Solo Page 1 |
SCHEDULE 2
NOTICE OF CONTINUATION
1. The
Continuation Date is ______ __, 20__.2
2. The
aggregate amount of the Eurodollar Loans to be continued is $__________.
3. The
Eurodollar Loans to be continued should be continued as Eurodollar Loans in the amounts and with the Interest Periods specified
below:
Amount | |
| Interest Period | | |
| Maturity Date | |
1. | |
| _____ Month(s) | | |
| | |
2. | |
| _____ Month(s) | | |
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3. | |
| _____ Month(s) | | |
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4. | |
| _____ Month(s) | | |
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2 Notice by 10:00 A.M. on the
Business Day of the proposed continuation is required for Base Rate Loans and three Business Days’ notice is required for
a continuation of Eurodollar Loans.
SCHEDULE 2 to Notice of Prepayment Continuation or Conversion, Solo Page 1 |
SCHEDULE 3
NOTICE OF CONVERSION
1. The
Conversion Date is ______ __, 20__.3
2. The
aggregate amount of the Loans to be converted is $__________.
3. The
Account to be converted is currently a:
____
[Base Rate Loan] [Eurodollar Loan] and should be converted into:
___ Base
Rate Loans in the amount of $ _________;
___ Eurodollar
Loans with the amount of each Eurodollar Loan and duration of the Interest Periods with respect thereto to be as follows:
Amount | |
| Interest Period | | |
| Maturity Date | |
1. | |
| _____ Month(s) | | |
| | |
2. | |
| _____ Month(s) | | |
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3. | |
| _____ Month(s) | | |
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4. | |
| _____ Month(s) | | |
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3 A Conversion can only occur
on the last day of the Interest Period applicable to a Eurodollar Loan. Notice by 10:00 A.M. on the Business Day of the proposed
conversion is required for Base Rate Loans and three Business Days’ notice is required for a conversion into Eurodollar Loans.
SCHEDULE 3 to Notice of Prepayment Continuation or Conversion, Solo Page 2 |
SCHEDULE A
TO
EMPIRE RESOURCES, INC.
AMENDED AND RESTATED
CREDIT AGREEMENT
Commitments
Banks | |
Commitment | | |
Revolving Loan Commitment Percentage | |
Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch | |
$ | 37,500,000 | | |
| 25.0000 | % |
BNP Paribas | |
$ | 30,000,000 | | |
| 20.0000 | % |
Société Générale S.A. | |
$ | 20,000,000 | | |
| 13.3333 | % |
ABN AMRO Capital USA LLC | |
$ | 25,000,000 | | |
| 16.6667 | % |
RB International Finance (USA) LLC | |
$ | 22,500,000 | | |
| 15.0000 | % |
Brown Brothers Harriman & Co. | |
$ | 15,000,000 | | |
| 10.0000 | % |
Total | |
$ | 150,000,000.00 | | |
| 100.0000 | % |
SCHEDULE A, SOLO PAGE
SCHEDULE I
TO
EMPIRE RESOURCES, INC.
AMENDED AND RESTATED
CREDIT AGREEMENT
Indebtedness
| 1. | The €10,000,000 Imbali Facility and the Imbali Guaranty. |
| 2. | The $75,000,000 Uncommitted Credit Agreement. |
SCHEDULE I (Indebtedness), SOLO PAGE
SCHEDULE II
TO
EMPIRE RESOURCES, INC.
AMENDED AND RESTATED
CREDIT AGREEMENT
Investments
| 3. | $10,000,000 loan to PT. Alumindo, Southern Aluminum Industry
and Fung Lam Trading Company that matures January 1, 2016. |
SCHEDULE III
TO
EMPIRE RESOURCES, INC.
AMENDED AND RESTATED
CREDIT AGREEMENT
Subsidiaries
Subsidiary Name | |
Jurisdiction of Organization | |
Persons Holding Equity Interest | |
Authorized Equity Interest | |
Outstanding Equity Interest | |
Percentage of Ownership | |
Empire Resources Pacific, Ltd. | |
Delaware | |
Empire Resources, Inc. | |
1,000 shares of common stock | |
100 shares of common stock | |
| 100 | % |
Imbali Metals Bvba | |
Belgium | |
Empire Resources, Inc. | |
1,000 shares | |
1,000 shares | |
| 100 | % |
6900 Quad Avenue, LLC | |
Delaware | |
Empire Resources, Inc. | |
N/A | |
N/A | |
| 100 | % |
SCHEDULE III (Subsidiaries), SOLO PAGE
SCHEDULE IV
TO
EMPIRE RESOURCES, INC.
AMENDED AND RESTATED
CREDIT AGREEMENT
Limitations on Dividend Clause and Negative
Pledge Clauses
None.
SCHEDULE V
TO
EMPIRE RESOURCES, INC.
AMENDED AND RESTATED
CREDIT AGREEMENT
Credit Insurance
Coface North America Insurance Company Policy Number E-489020205
UNCOMMITTED
CREDIT AGREEMENT
by and among
EMPIRE RESOURCES, INC.
as Borrower,
COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK
B.A., “RABOBANK
NEDERLAND”, NEW YORK BRANCH,
as Lead Arranger, Agent
and an Issuing Bank
and
BNP PARIBAS, as Syndication Agent
and
the banks party hereto
June 19, 2014
THIS AGREEMENT PROVIDES FOR AN UNCOMMITTED
FACILITY
WITH A DEMAND FEATURE. ALL LOANS AND
LETTERS OF CREDIT ARE DISCRETIONARY ON THE PART OF THE BANKS
IN THEIR SOLE AND ABSOLUTE DISCRETION.
EACH BANK MAY MAKE DEMAND FOR PAYMENT OF
ITS LOANS AND CASH
COLLATERALIZATION OF LETTERS OF CREDIT
AT ANY TIME IN ITS SOLE AND ABSOLUTE DISCRETION.
Table of Contents
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Page |
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Section 1. Definitions and Accounting Matters |
1 |
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1.01 |
Certain Defined Terms |
1 |
1.02 |
Accounting Terms and Determinations |
25 |
(a) |
GAAP Consistently Applied |
25 |
(b) |
No Change to Fiscal Year |
26 |
(c) |
Financial Covenants Determined on a Consolidated Basis |
26 |
(d) |
Terms Generally |
26 |
1.03 |
Types of Loans |
26 |
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Section 2. Revolving Loan Line Portions, Loans, Notes and Prepayments |
26 |
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2.01 |
Loans |
26 |
(a) |
Revolving Loans |
26 |
(c) |
Intentionally omitted |
26 |
(d) |
Intentionally omitted |
26 |
2.02 |
Borrowings |
27 |
2.03 |
Letters of Credit |
27 |
(a) |
Letter of Credit Request Procedure |
28 |
(b) |
Bank Participation in Letters of Credit |
28 |
(c) |
Drawings on Letters of Credit; Reimbursement |
28 |
(d) |
Borrowing to Fund Reimbursement |
28 |
(e) |
Funding of Bank Participation in Letters of Credit |
28 |
(f) |
Payments Received by the Issuing Banks |
29 |
(g) |
(i) Letter of Credit Fees |
29 |
(h) |
Letter of Credit Liability Accounting |
30 |
(i) |
Conditions to Issuance |
30 |
(j) |
Default Interest |
30 |
(k) |
Modifications to Letters of Credit |
30 |
(l) |
Company Indemnification |
31 |
(m) |
Obligations Absolute |
31 |
(n) |
Exculpation |
31 |
(o) |
Auto-Renewal Letters of Credit |
32 |
(p) |
Issuance Caps |
32 |
(q) |
Agent Consent |
33 |
(r) |
Successor Issuing Banks |
33 |
(s) |
UCP; ISP |
34 |
(t) |
Cash Collateral |
34 |
(u) |
Notice of Disapproval |
34 |
2.04 |
Intentionally Omitted |
34 |
2.05 |
Changes of the Revolving Loan Line Portions |
34 |
(a) |
Revolving Credit Line Termination Date |
34 |
(b) |
Optional Termination |
35 |
(c) |
No Reinstatement |
35 |
2.06 |
Intentionally omitted. |
35 |
2.07 |
Lending Offices |
35 |
2.08 |
Several Obligations; Remedies Independent |
35 |
Table of Contents
(continued)
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2.09 |
Evidence of Indebtedness |
35 |
(a) |
Maintenance of Loan Accounts by Banks |
35 |
(b) |
Maintenance of Loan Accounts by the Agent |
35 |
(c) |
Effect of Entries |
35 |
(d) |
Promissory Notes |
36 |
2.10 |
Optional Prepayments and Conversions or Continuations of Loans |
36 |
2.11 |
Mandatory Prepayments |
36 |
(a) |
Borrowing Base |
36 |
(b) |
Cover for Letter of Credit Liabilities |
36 |
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Section 3. Payments of Principal and Interest |
38 |
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3.01 |
Repayment of Loans |
38 |
3.02 |
Interest |
38 |
(a) |
Revolving Loans |
38 |
(b) |
Intentionally omitted |
39 |
(c) |
Post Default Interest |
39 |
(d) |
Payment of Interest |
39 |
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Section 4. Payments; Computations; Etc |
39 |
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4.01 |
Payments |
39 |
(a) |
Payments Generally |
39 |
(b) |
Payments to the Banks |
39 |
(c) |
Payments on a Non-Business Day |
40 |
4.02 |
Computations |
40 |
4.03 |
Pro Rata Treatment |
40 |
4.04 |
Minimum Amounts |
40 |
4.05 |
Certain Notices |
40 |
4.06 |
Non-Receipt of Funds by the Agent |
41 |
4.07 |
Sharing of Payments, etc |
42 |
(a) |
Set off |
42 |
(b) |
Sharing of Payments on Loan Obligations |
42 |
(c) |
Sharing of Benefits of Secured Claim |
42 |
4.08 |
Application of Proceeds of Collateral and Subsidiary Guarantee |
42 |
4.09 |
Noncash Proceeds |
43 |
4.10 |
Return of Proceeds |
43 |
4.11 |
Notice of Amount of Obligations |
44 |
4.12 |
Defaulting Banks |
44 |
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Section 5. Yield Protection, Etc |
47 |
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5.01 |
Additional Costs |
47 |
5.02 |
Inability to Determine Interest Rate |
49 |
5.03 |
Illegality |
49 |
5.04 |
Break Funding Compensation |
49 |
5.05 |
Intentionally omitted |
50 |
5.06 |
Taxes |
50 |
Table of Contents
(continued)
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Page |
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(a) |
Payments Free of Taxes |
50 |
(b) |
Payment of Other Taxes by the Company |
50 |
(c) |
Indemnification by the Company |
50 |
(d) |
Indemnification by the Banks |
50 |
(e) |
Evidence of Payments |
51 |
(f) |
Status of Banks |
51 |
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Section 6. Conditions Precedent |
53 |
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6.01 |
Obligations to Extend Credit |
53 |
(a) |
Executed Counterparts |
53 |
(b) |
Intentionally omitted |
53 |
(c) |
Intercreditor Agreement |
53 |
(d) |
Governing Documents |
53 |
(e) |
Good Standing |
53 |
(f) |
Officer’s Certificate |
54 |
(g) |
Borrowing Base Certificate |
54 |
(h) |
Opinion of Counsel to the Company |
54 |
(i) |
Security Documents |
54 |
(j) |
Insurance |
54 |
(k) |
No Material Adverse Effect |
54 |
(l) |
Fees and Expenses |
55 |
(m) |
Subordination Agreement |
55 |
(n) |
Request to Honor Oral and Electronic Instructions |
55 |
(o) |
Other Documents |
55 |
6.02 |
Initial and Subsequent Extensions of Credit |
55 |
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Section 7. Representations and Warranties |
56 |
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7.01 |
Corporate Existence |
56 |
7.02 |
Financial Condition |
56 |
7.03 |
Litigation |
56 |
7.04 |
No Breach |
56 |
7.05 |
Action |
56 |
7.06 |
Approvals |
56 |
7.07 |
Use of Credit |
57 |
7.08 |
ERISA |
57 |
7.09 |
Taxes |
57 |
7.10 |
Indebtedness and Investments |
57 |
(a) |
Indebtedness |
57 |
(b) |
Investments |
57 |
7.11 |
True and Complete Disclosure |
57 |
7.12 |
Subsidiaries |
58 |
7.13 |
Property |
58 |
7.14 |
Compliance with Laws and Agreements |
58 |
7.15 |
Investment Company Status |
58 |
7.16 |
OFAC Money Laundering Representations |
58 |
Table of Contents
(continued)
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Page |
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7.17 |
Insurance |
59 |
7.18 |
Solvency |
59 |
7.19 |
Intentionally omitted |
60 |
7.20 |
Security Documents |
60 |
7.21 |
Environmental Matters |
60 |
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Section 8. Covenants of the Company |
61 |
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8.01 |
Financial Statements, Etc |
61 |
(a) |
Quarterly Financial Statements |
61 |
(b) |
Annual Financial Statements |
61 |
(c) |
ERISA |
61 |
(d) |
Borrowing Base Certificate |
61 |
(e) |
Collateral Audit |
62 |
(f) |
Shareholder Material |
62 |
(g) |
Notice of Default |
62 |
(h) |
Committed Credit Agreement Documents |
63 |
(i) |
Other Information |
63 |
8.02 |
Litigation |
63 |
8.03 |
Existence, Etc |
63 |
(a) |
Existence |
63 |
(b) |
Compliance with Laws |
63 |
(c) |
Payment of Obligations |
63 |
(d) |
Maintain Property |
64 |
(e) |
Books and Records |
64 |
(f) |
Inspection |
64 |
8.04 |
Insurance |
64 |
8.05 |
Prohibition of Fundamental Changes |
64 |
8.06 |
Limitation on Liens |
65 |
8.07 |
Indebtedness |
66 |
8.08 |
Investments |
67 |
8.09 |
Leverage Ratio |
68 |
8.10 |
Net Working Capital |
68 |
8.11 |
No Net Loss |
68 |
8.12 |
Lines of Business |
68 |
8.13 |
Dividend Payments |
68 |
8.14 |
Use of Proceeds |
68 |
8.15 |
Subordinated Debt |
68 |
8.16 |
Intentionally omitted |
68 |
8.17 |
Additional Guarantors; Pledge of Additional Subsidiaries |
68 |
(a) |
Subsidiary Guarantee |
69 |
(b) |
Secured Documents |
69 |
(c) |
Corporate Authorization |
69 |
8.18 |
Intentionally omitted |
69 |
8.19 |
Amendment to Organizational Documents |
69 |
8.20 |
Capital Expenditures |
69 |
Table of Contents
(continued)
8.21 |
Transactions with Affiliates |
69 |
8.22 |
Environmental Laws |
70 |
8.23 |
Take or Pay Contracts |
70 |
8.24 |
Limitation on Dividend Clause and Negative Pledge Clauses |
70 |
8.25 |
Limitation on Sales and Leasebacks |
70 |
8.26 |
Accounting Changes |
71 |
8.27 |
Borrowing Base |
71 |
8.28 |
Deposit Accounts |
71 |
8.29 |
Storage Facilities |
71 |
8.30 |
Sanctions |
71 |
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Section 9. Events of Default |
71 |
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9.01 |
Events of Default |
71 |
(a) |
Payment Default |
71 |
(b) |
Cross Default |
72 |
(c) |
Representations and Warranties |
72 |
(d) |
Covenant Defaults |
72 |
(e) |
Failure to Pay Debts |
72 |
(f) |
Voluntary Insolvency Proceedings |
72 |
(g) |
Involuntary Insolvency Proceedings |
73 |
(h) |
Judgment Default |
73 |
(i) |
ERISA Events |
73 |
(j) |
Change of Control |
73 |
(k) |
Security Documents; Basic Documents |
73 |
(l) |
Subordination Provisions |
73 |
(m) |
Quad Avenue Loan Agreement |
73 |
(n) |
Committed Credit Agreement Disclosure |
74 |
9.02 |
Cover for Contingent Obligations |
74 |
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Section 10. The Agent |
75 |
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10.01 |
Appointment, Powers and Immunities |
75 |
10.02 |
Reliance by Agent |
75 |
10.03 |
Defaults |
75 |
10.04 |
Rights as a Bank |
76 |
10.05 |
Indemnification |
76 |
10.06 |
Non-Reliance on Agent and Other Banks |
76 |
10.07 |
Failure to Act |
77 |
10.08 |
Resignation or Removal of Agent |
77 |
10.09 |
Agency Fee |
77 |
10.10 |
Consents under Other Basic Documents |
77 |
10.11 |
Pendency of Insolvency |
77 |
(a) |
Filing Claims |
77 |
(b) |
Collection of Funds |
78 |
10.12 |
Permitted Release of Collateral |
78 |
(a) |
Automatic Release |
78 |
Table of Contents
(continued)
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Page |
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(b) |
Written Release |
78 |
(c) |
Other Authorized Release and Subordination |
78 |
10.13 |
Powers and Immunities of Fronting Banks |
78 |
10.14 |
Perfection by Possession and Control; Deposit Accounts |
79 |
10.15 |
Bank Affiliates Rights |
79 |
10.16 |
Other Agents |
80 |
10.17 |
Intercreditor Agreement |
80 |
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Section 11. Miscellaneous |
80 |
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11.01 |
Waiver |
80 |
11.02 |
Notices |
80 |
(a) |
General Address for Notices |
80 |
(b) |
Electronic Communications |
81 |
(c) |
Electronic Transmission System |
81 |
(d) |
Communications Through the Platform |
81 |
11.03 |
Expenses, etc |
81 |
11.04 |
Amendments, Etc |
82 |
11.05 |
Successors and Assigns |
83 |
11.06 |
Assignments and Participations |
84 |
(a) |
Assignments by Banks |
84 |
(b) |
Maintenance of Register by the Agent |
85 |
(c) |
Effectiveness of Assignments |
85 |
(d) |
Participations |
85 |
(e) |
Limitations on Rights of Participants |
85 |
(f) |
Certain Pledges |
86 |
(g) |
No Assignments to the Company or Affiliates |
86 |
11.07 |
Survival |
86 |
11.08 |
Captions |
86 |
11.09 |
Counterparts |
86 |
11.10 |
Governing Law; Submission to Jurisdiction |
86 |
11.11 |
Waiver of Jury Trial |
87 |
11.12 |
Severability |
87 |
11.13 |
Independence of Covenants |
87 |
11.14 |
PATRIOT ACT PROVISION |
87 |
11.15 |
No Fiduciary Relationship |
87 |
11.16 |
Construction |
87 |
11.17 |
Interest Rate Limitation |
87 |
(a) |
Limitation to Maximum Rate; Recapture |
87 |
(b) |
Cure Provisions |
88 |
11.18 |
Waiver of Consequential Damages, etc |
88 |
11.19 |
DISCRETIONARY FACILITY |
88 |
Table of Contents
(continued)
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Page |
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EXHIBIT A |
– |
Form of Note |
|
EXHIBIT B |
– |
Form of Borrowing Base Certificate |
|
EXHIBIT C |
– |
Form of Security Agreement |
|
EXHIBIT D |
– |
Form of Subsidiary Guarantee |
|
EXHIBIT E |
– |
Form of Assignment and Assumption |
|
EXHIBIT F |
– |
Intentionally omitted |
|
EXHIBIT G |
– |
Form of Compliance Certificate |
|
EXHIBIT H |
– |
Intentionally omitted |
|
EXHIBIT I |
– |
Form of Borrowing Request |
|
EXHIBIT J |
– |
Form of Notice of Prepayment, Conversion and Continuation |
|
EXHIBIT K |
– |
Subordination Terms |
|
EXHIBIT L |
– |
Intentionally omitted |
|
EXHIBIT M |
— |
Form of Intercreditor Agreement |
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EXHIBIT N |
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Form of Declining Bank Notice |
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EXHIBIT O |
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Form of Approving Bank Notice |
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SCHEDULE A |
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Revolving Loan Line Portions |
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SCHEDULE I |
– |
Indebtedness |
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SCHEDULE II |
– |
Investments |
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SCHEDULE III |
– |
Subsidiaries |
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SCHEDULE IV |
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Limitations on Dividend Clause and Negative Pledge Clauses |
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SCHEDULE V |
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Credit Insurance |
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UNCOMMITTED CREDIT
AGREEMENT
THIS UNCOMMITTED CREDIT AGREEMENT (this “Agreement”)
is dated as of June 19, 2014, by and among EMPIRE RESOURCES, INC., a corporation duly organized and validly existing under the
laws of the State of Delaware (the “Company”), COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK
NEDERLAND”, NEW YORK BRANCH (“Rabobank”), as agent for the Secured Parties defined below (in such capacity,
together with its successors in such capacity, the “Agent”), BNP Paribas, as syndication agent (in such capacity,
together with its successors in such capacity, the “Syndication Agent”) and each of the lenders that is a signatory
hereto identified under the caption “Banks” on the signature pages hereto (including Rabobank) or that, pursuant to
Section 11.06(b) hereof shall become a “Bank” hereunder (individually, a “Bank”, and collectively,
the “Banks”).
RECITALS:
The Company, the Banks party hereto and the Agent have agreed
to enter into this Agreement on, and subject to, the terms and conditions set forth herein.
Therefore, for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows:
Section
1.
Definitions and Accounting
Matters.
1.01 Certain
Defined Terms. As used herein, the following terms have the following meanings (all terms defined in this Section 1.01
or in other provisions of this Agreement in the singular to have the same meanings when used in the plural and vice versa):
“6900 Quad Avenue,
LLC” means 6900 Quad Avenue, LLC, a Delaware limited liability company.
“Account Control
Agreement” means each agreement entered into among the Agent, the Company and a securities intermediary, commodity intermediary
or bank, under which the Agent has been granted “control” over a securities, commodities or deposit account, as applicable,
and the right to issue a notice of exclusive control upon the occurrence and during the continuance of an Event of Default or at
any time after the Required Banks shall have demanded payment of and Cash Collateral (if applicable) for any Loan Obligations,
in form and substance reasonably acceptable to the Agent. For the avoidance of doubt, the agreement set forth in Section 10.14
in respect of Obligor Accounts shall be an Account Control Agreement.
“Act”
has the meaning assigned to such term in Section 11.14 hereof.
“Administrative
Questionnaire” means an Administrative Questionnaire in a form supplied by the Agent which will be prepared by the applicable
Bank and delivered to the Agent.
“Advance Date”
has the meaning assigned to such term in Section 4.06 hereof.
“Affiliate”
means as to any Person, any other Person that directly or indirectly controls, or is under common control with, or is controlled
by, such Person and, if such Person is an individual, any member of the immediate family (including parents, spouse, children and
siblings) of such individual and any trust whose principal beneficiary is such individual or one or more members of such immediate
family and any Person who is controlled by any such member or trust. As used in this definition, “control” (including,
with its correlative meanings, “controlled by” and “under common control with”) means possession,
directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities
or partnership or other ownership interests, by contract or otherwise), provided that, in any event, any Person that owns
directly or indirectly securities having 5% or more of the voting power for the election of directors or other governing body of
a corporation or 5% or more of the partnership or other ownership interests of any other Person (other than as a limited partner
of such other Person) will be deemed to control such corporation or other Person. Notwithstanding the foregoing, no individual
shall be an Affiliate solely by reason of his or her being a director, officer or employee of the Company.
“Agent Parties”
has the meaning assigned to such term in Section 11.02(c) hereof.
“Agreement”
has the meaning assigned to such term in the Preamble hereto.
“Anti-Terrorism
Laws” has the meaning assigned to such term in Section 7.16 hereof.
“Applicable
Lending Office” means, for each Bank and for each Type of Loan, the “Lending Office” of such Bank (or of
an affiliate of such Bank) designated from time to time by such Bank for such Type of Loan as the office by which its Loans of
such Type are to be made and maintained.
“Applicable
Margin” means (i) thirty-five hundredths of one percent (0.35%) as it relates to the Base Rate and (ii) one
and eighty-five hundredths of one percent (1.85%) as it relates to the Eurodollar Rate.
“Approved Fund”
means (a) a CLO (as defined below) and (b) with respect to any Bank that is a fund which invests in whole or in material part in
commercial bank loans and similar extensions of credit and is administered or managed by the same investment adviser as such Bank
or by an Affiliate of such investment adviser. As used herein, the term “CLO” means any entity (whether a corporation,
partnership, or trust), other than an entity owned and operated for the primary benefit of a natural person or relative(s) thereof,
that is engaged in making, purchasing, holding or otherwise investing in whole or in material part in commercial bank loans and
similar extensions of credit in the ordinary course of its business and is administered or managed by a Bank or an Affiliate of
a Bank.
“Approving Banks”
has the meaning assigned to such term in Section 2.12 hereof.
“Assignment
and Assumption” means an Assignment and Assumption entered into by a Bank and an assignee (with the consent of any party
whose consent is required by Section 11.05) and accepted by the Agent, substantially in the form of Exhibit E or any other form
approved by the Agent and the Company.
“Assignment
of Claims Act” means the Federal Assignment of Claims Act of 1940, as amended from time to time (31 U.S.C. §3723
et seq.), and any similar state or local laws, as the same now exist or may from time to time hereafter be amended, modified, recodified
or supplemented, together with all rules, regulations or interpretations related thereto.
“Australia”
means the Commonwealth of Australia.
“Australian
Receivables” means, as at any date, the aggregate amount of all Receivables at such date payable to the Company that
would constitute Tier I Eligible Receivables but for the fact that the principal place of business of the relevant account
debtor is in Australia and/or such Receivables are payable in lawful money of Australia, provided that in no event shall the aggregate
amount of the Australian Receivables included in the Borrowing Base (after giving effect to the applicable advance rate) at any
time exceed an amount equal to $7,500,000.
“Auto-Renewal
Letter of Credit” has the meaning assigned to such term in Section 2.03(o) hereof.
“Availability
Period” means the period from the Closing Date to but not including the Revolving Credit Line Termination Date, or such
earlier date on which the Revolving Loan Line Portions shall terminate as provided herein.
“Bank”
has the meaning set forth in the introductory paragraph to this Agreement. Unless the context otherwise requires, the term “Bank”
includes each Fronting Bank.
“Bankruptcy
Code” means the Federal Bankruptcy Code of 1978, as amended from time to time.
“Base Rate”
means for any day, a rate per annum equal to the greatest of (a) the rate of interest published in The Wall Street Journal
as the “prime rate” for such day and if The Wall Street Journal does not publish such rate on such day then
such rate as most recently published prior to such day, (b) the Federal Funds Rate in effect on such day plus 1/2 of 1% and
(c) the Eurodollar Rate that would be applicable in respect of a proposed Eurodollar Loan made two days after such date with
an Interest Period of one month, plus 1.00%. Each change in any interest rate provided for herein based upon the Base Rate resulting
from a change in the Base Rate shall take effect at the time of such change in the Base Rate.
“Base Rate Loans”
means Loans that bear interest at rates based upon the Base Rate.
“Basel III”
means all regulations, 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 any United States or foreign regulatory authorities,
in each case pursuant to “Basel III”, as amended from time to time.
“Basic Documents”
means, collectively, this Agreement, the Notes, the Letter of Credit Documents, the Security Documents and all other documentation
now or hereafter executed and/or delivered pursuant to the express terms of any of the foregoing.
“Borrowing Base”
means, as at any date, the sum of (a) minus (b) minus (c) calculated without duplication as of such date where:
(a) equals
the sum of:
(i) if
and to the extent requested by the Company, 85% of Eligible Net Liquidating Value of Brokerage Accounts; plus
(ii) 90%
of the aggregate amount of Tier I Eligible Receivable; plus
(iii) 80%
of the aggregate amount of Tier II Eligible Receivables; plus
(iv) 70%
of the aggregate amount of Australian Receivables; plus
(v) 80%
of the aggregate amount of Eligible Inventory Ordered Under L/C; plus
(vi) 80%
of the aggregate amount of Eligible Inventory; plus
(vii) 65%
of the aggregate amount of Eligible Unsold Inventory; plus
(viii) 100%
of the aggregate amount of Pledged Cash; plus
(ix) 80%
of Eligible Mexican Receivables; and
(b) equals
100% of the aggregate amount of reserves established at any time and from time to time on or after the Closing Date by the Required
Banks, which reserves are determined by the Required Banks to be necessary to protect the Banks’ interests, such determination
to be made in the Required Banks’ judgment, in good faith and based on information which, in its judgment, supports such
determination. Reserves established under this clause (b) may include, without limitation, reserves for: (i) past due rent
at any location leased or owned by the Company at which Inventory is located unless a landlord and/or mortgagee lien waiver or
subordination has been obtained, (ii) shipping costs with respect to any Inventory held by a third party shipping company
and (iii) past due warehouse and other storage charges with respect to any Inventory held at third party warehouses. Any establishment,
reduction or elimination of reserves under this clause (b) shall be effective on the date the Company receives Agent’s
written notice of the amount thereof, provided that the Agent shall deliver notice to the Company of any such establishment, reduction
or elimination of reserves under this clause (b) promptly after the Required Banks make a determination in writing (which shall
have been delivered to the Agent) thereof, and
(c) 100%
of the amount of Indebtedness secured by Permitted Borrowing Base Liens, which is past due (after giving effect to any grace period)
and owing.
The Borrowing Base shall be determined
at any time based on the Borrowing Base Certificate or Interim Borrowing Base Certificate, as applicable, then most recently delivered
or, if acceptable to the Agent, as otherwise certified by the Company to the Agent and the Banks, as reduced or increased after
giving effect to any reallocation pursuant to Section 2.3 of the Intercreditor Agreement. Receivables denominated in a currency
other than Dollars shall be reported in the Borrowing Base based on the U.S. Dollar Equivalent thereof determined as of the date
of the Borrowing Base calculation.
“Borrowing Base
Certificate” means a certificate of the chief financial officer or other authorized officer with responsibility for financial
matters of the Company, substantially in the form of Exhibit B hereto and appropriately completed.
“Borrowing Request”
has the meaning assigned to such term in Section 2.02 hereof.
“Business Day”
means (a) any day on which commercial banks are not authorized or required to close in New York City and (b) if such day relates
to a borrowing of a payment or prepayment of principal of or interest on a Conversion of or into, or an Interest Period for, a
Eurodollar Loan or a notice by the Company with respect to any such borrowing, payment, prepayment, Conversion or Interest Period,
or the determination of the Eurodollar Rate, any day on which dealings in Dollar deposits are carried out in the London interbank
market.
“Capital Expenditures”
means, for any period with respect to any Person, all expenditures made by such Person during such period that, in accordance with
GAAP, should be classified as a capital expenditure including, without limitation, the aggregate amount of Capital Lease Obligations
incurred during such period, provided that Capital Expenditures shall not include any amount of insurance proceeds that such Person
reinvests in the business of such Person, including investments in replacement assets.
“Capital Lease
Obligations” means, for any Person, all obligations of such Person to pay rent or other amounts under a lease of (or
other agreement conveying the right to use) Property to the extent such obligations are required to be classified and accounted
for as a capital lease on a balance sheet of such Person under GAAP, and, for purposes of this Agreement, the amount of such obligations
shall be the capitalized amount thereof, determined in accordance with GAAP.
“Capital Securities”
means any and all shares, interests, participations or other equivalents (however designated) of capital stock of a corporation,
all membership interests in a limited liability company, all partnership interests in a limited partnership, or any and all similar
ownership interests in a Person (other than a corporation, limited liability company or limited partnership) and any and all warrants,
rights or options to purchase any of the foregoing.
“Cash Collateral”
means cash in Dollars that has been transferred to the Collateral Account to secure repayment of the Obligations.
“Cash Collateralize”
means to pledge and deposit with or deliver to the Agent, for the benefit of the Agent and the Banks, Cash Collateral pursuant
to documentation in form and substance reasonably satisfactory to the Agent.
“Closing Date”
means the date on which this Agreement becomes effective pursuant to satisfaction or waiver (pursuant to Section 11.04 hereof)
of the conditions precedent set forth in Section 6.01.
“Code”
means the Internal Revenue Code of 1986, as amended from time to time.
“Collateral”
means the property over which a Lien has been granted to the Agent pursuant to the Security Documents.
“Collateral
Account” means a segregated collateral account or accounts maintained by the Agent on behalf of the Secured Parties,
which shall be under the sole dominion and control of, and a first priority perfected lien of (subject to the terms of the Intercreditor
Agreement), the Agent.
“Committed Credit
Agreement” means the Amended and Restated Credit Agreement dated as of the date hereof among the Borrower, the lenders
party thereto and the Committed Facility Agent, as the same may be amended, supplemented or otherwise modified and in effect from
time to time.
“Committed Facility
Agent” means Rabobank in its capacity as “Agent” under and as defined in the Committed Credit Agreement.
“Commodity Exchange
Act” means the Commodity Exchange Act (7.U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.
“Communications”
has the meaning assigned to such term in Section 11.02(a) hereof.
“Company”
has the meaning assigned to such term in the preamble hereof.
“Compliance
Certificate” has the meaning assigned to such term in the last sentence of Section 8.01 hereof.
“Consolidated
Current Assets” means, at any time with respect to any Person, all assets of such Person and its Subsidiaries that, in
accordance with GAAP, could be classified as current assets on a consolidated balance sheet of such Person and its Subsidiaries
(other than investments in and receivables and other obligations from Subsidiaries, other Affiliates, officers, employees or directors
of such Person).
“Consolidated
Current Liabilities” means, at any time with respect to any Person, all liabilities of such Person and its Subsidiaries
that, in accordance with GAAP, could be classified as current liabilities on a consolidated balance sheet of such Person and its
Subsidiaries.
“Consolidated
Net Income” means, for any period, the net earnings (or loss) after taxes of the Company and its Subsidiaries on a consolidated
basis for such period taken as a single accounting period determined in conformity with GAAP.
“Continue”,
“Continuation” and “Continued” shall refer to the continuation pursuant to Section 2.10
hereof of a Eurodollar Loan from one Interest Period to the next Interest Period.
“Contract Rate”
has the meaning assigned to such term in Section 11.17(a) hereof.
“Conversion
to Approving Banks Funding Date” has the meaning assigned to such term in Section 2.12 hereof.
“Convert”,
“Conversion” and “Converted” shall refer to a conversion pursuant to Section 2.10 hereof
of one Type of Loans into another Type of Loans, which may be accompanied by the transfer by a Bank (at its sole discretion) of
a Loan from one Applicable Lending Office to another.
“Convey”
means to convey, sell, lease, assign, transfer or otherwise dispose of Property. The terms “Conveyance” and “Conveyed”
shall have a correlative meaning.
“Credit Exposure”
means, at any time, the aggregate principal amount of all Loans and Letter of Credit Liabilities outstanding at such time. The
Credit Exposure of any Bank at any time shall be the sum of such Bank’s Revolving Loans and its Fronting Exposure at such
time.
“Credit Insured
Receivable” means the portion of any Receivable which is insured under a credit insurance policy (a) set forth on Schedule
V hereto, including any extensions or renewals thereof, or (b) that is reasonably acceptable to the Required Banks (under which
(in the case of clauses (a) and (b)) in the event of non-payment by the applicable account debtor, the credit insurer would be
obligated to pay the unpaid Receivable up to the limits set forth in such policy subject only to deductibles, co-insurance and
the applicable waiting periods under such policy and no other defenses, set-offs or deductions) issued by a credit insurer that
is reasonably acceptable to the Required Banks, and as to which the Agent is named as loss payee.
“Declining Bank”
and “Declining Banks” have the meaning assigned to such terms in Section 2.12 hereof.
“Declining Bank
Notice” has the meaning assigned to such term in Section 2.12 hereof.
“Default”
means an Event of Default or any event or circumstance that solely with the giving of notice or lapse of time or both would become
an Event of Default.
“Defaulting
Bank” means: (a) a Bank that has defaulted on its obligation to fund Loans hereunder or make any other payment required
hereby for two (2) or more Business Days unless such Bank notifies the Agent and the Company in writing that such failure is the
result of such Bank’s determination that one or more conditions precedent to funding (each of which conditions precedent,
together with any applicable Default or Event of Default, shall be specifically identified in such writing) has not been satisfied;
(b) a Bank that has had an involuntary proceeding commenced or an involuntary petition filed seeking (i) liquidation, reorganization
or other relief in respect of such Bank or its parent or its or its parent’s debts, or of a substantial part of its or its
parent’s assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar Law now or hereafter
in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for such Bank
or its parent or for a substantial part of its or its parent’s assets; (c) a Bank that shall have or whose parent shall have
(i) voluntarily commenced any proceeding or filed any petition seeking liquidation, reorganization or other relief under any Federal,
state or foreign bankruptcy, insolvency, receivership or similar Law now or hereafter in effect, (ii) consented to the institution
of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (b) of this definition,
(iii) applied for or consented to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official
for it or a substantial part of its assets, (iv) filed an answer admitting the material allegations of a petition filed against
it in any such proceeding, (v) made a general assignment for the benefit of creditors or (vi) taken any action for the purpose
of effecting any of the foregoing; (d) a Bank that has, for two (2) or more Business Days, failed to confirm in writing to the
Agent, in response to a written request of the Agent or the Company, that it will comply with its funding obligations under this
Agreement (subject to its right to become a Declining Bank at any time and/or to demand payment of and Cash Collateral (if applicable)
for any Loan Obligations at any time (pursuant to the terms of this Agreement)) unless such Bank notifies the Agent and the Company
in writing that such failure is the result of such Bank’s determination that one or more conditions precedent to funding
(each of which conditions precedent, together with any applicable Default or Event of Default, shall be specifically identified
in such writing) has not been satisfied; or (e) has notified the Agent or the Company, or has made a public statement to the effect,
that it does not intend to comply with its funding obligations under this Agreement (subject to its right to become a Declining
Bank at any time and/or to demand payment of and Cash Collateral (if applicable) for any Loan Obligations at any time (pursuant
to the terms of this Agreement)), or has defaulted on its obligation to fund generally under any other loan agreement, credit agreement
or other financing agreement in which it commits to extend credit (unless such writing or public statement relates to such Bank’s
obligation to fund a Loan hereunder and states that such position is based on such Bank’s determination that a condition
precedent to funding (which condition precedent, together with any applicable Default or Event of Default, shall be specifically
identified in such writing or public statement) cannot be satisfied); provided that a Bank shall not be a Defaulting Bank
solely by virtue of the ownership or acquisition of any equity interest in such Bank 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 Bank 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 Bank
(or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Bank.
“Defaulting
Bank Period” means any period during which a Bank shall be a Defaulting Bank.
“Deposit Obligations”
means all obligations, indebtedness, and liabilities of the Company or any Subsidiary, or any one of them, to any Bank or any Affiliate
of any Bank arising pursuant to any deposit, lock box, automated clearing house or cash management arrangements entered into by
any Bank or any Affiliate of any Bank with the Company or any Subsidiary, whether now existing or hereafter arising, whether direct,
indirect, related, unrelated, fixed, contingent, liquidated, unliquidated, joint, several, or joint and several, including the
obligation, indebtedness, and liabilities of the Company or any Subsidiary, or any one of them, to repay any credit extended in
connection with such arrangements, interest thereon, and all reasonable fees, costs, and expenses (including reasonable attorneys’
fees and expenses) provided for in the documentation executed in connection therewith. The term “Deposit Obligations”
includes any and all post-petition interest and expenses (including attorneys’ fees) whether or not allowed under any bankruptcy,
insolvency, or other similar Law.
“Demand Bank”
means any Bank that at any time demands, prior to the Revolving Credit Line Termination Date, repayment of the entire outstanding
principal amount of such Bank’s Loans.
“Demand Bank
Period” means the period from (a) demand made by a Demand Bank pursuant to Section 3.01(a) hereof to (b) the close of
business on the tenth (10th) Business Day following the date of such demand, subject to the terms of Section 3.01(c)
hereof.
“Dividend Payment”
means dividends (in cash, Property or obligations) on, or other payments or distributions on account of, or the setting apart of
money for a sinking or other analogous fund for, or the purchase, redemption, retirement or other acquisition of, any Capital Securities
of the Company or any of its Subsidiaries, but excluding dividends payable solely in shares of common stock of the Company.
“Dodd-Frank
Act” means the Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203, as amended from time to
time, and all rules, regulations, requests, guidelines or directives in connection therewith).
“Dollars”
and “$” means lawful money of the United States of America.
“Domestic Subsidiary”
has the meaning assigned to such term in Section 8.17.
“Eligible Inventory”
means, as at any date, the aggregate value of all Inventory (valued at the lower of cost (as determined using the specific identification
method) or market value in accordance with GAAP) which satisfies each of the following requirements:
(a) such
Inventory is owned by the Company as at such date, free and clear of all Liens, except for Permitted Borrowing Base Liens and Liens
permitted under Section 8.06(j) hereof,
(b) such
Inventory (i) in storage in the United States on the property of the Borrower, (ii) on an ocean-going vessel bound for the
United States of America, Canada, Latin America or other jurisdiction acceptable to the Agent, evidenced by either (x) non-negotiable
bills of lading the stated consignee of which is the Company or the Agent or (y) 3/3 on board negotiable bills of lading that have
been issued and duly negotiated to the Agent, or to order and blank endorsed and in the possession of the Agent, (iii) held
at a third party warehouse located in the United States (reasonably acceptable to the Agent, and is evidenced by documents of title,
whether negotiable or non-negotiable, and any such negotiable document of title shall have been issued and duly negotiated to the
Company or the Agent or to order, blank endorsed, and in the possession of the Company or the Agent, and any such non-negotiable
document of title shall have been issued in the name of and delivered to the Company or the Agent, (iv) held at a location
in the United States that is controlled by a third party (reasonably acceptable to the Agent) engaged in the business of storing
goods of others for hire (of the same type as Inventory) that does not issue either negotiable or non-negotiable documents of title
as long as the goods stored by such third party on behalf of the Company are readily identifiable to the Company in a manner reasonably
acceptable to the Agent; or (v) in transit in the United States (under the control of the Company) to or from a warehouse
or other storage facility controlled by the Company or of the type described in clause (iii) or (iv) of this clause (b),
(c) such
Inventory is subject to a perfected first priority Lien in favor of the Agent, subject to no other Liens other than (x) Permitted
Borrowing Base Liens and (y) the existence of Liens (subordinate to the Agent’s Liens) permitted under Section 8.06(j) hereof,
(d) such
Inventory meets all standards imposed by any Governmental Authority or agency, department or division thereof having regulatory
authority over such Inventory, its use or sale,
(e) in
respect of such Inventory either (i) (A) one or more customers of the Company has contracted to purchase such Inventory at a predetermined
fixed price under sales contracts entered into by the Company in the ordinary course of business and (B) upon such delivery an
Eligible Receivable will arise or (ii) such Inventory is hedged by futures contracts (in a manner acceptable to the Required Banks)
in a futures account maintained with a broker acceptable to the Agent, which is subject to the Agent’s first priority perfected
Lien (subject only to customary setoff rights of the applicable broker) and an Account Control Agreement,
(f) such
Inventory is insured as to casualty loss by an insurance company acceptable to the Required Banks pursuant to an insurance policy
acceptable to the Required Banks on which the Agent has been named additional insured and loss payee,
(g) such
Inventory is not damaged, obsolete, slow moving or not currently saleable in the normal course of the Company’s operations,
(h) such
Inventory is not Inventory that the Company or the Company’s customer has returned, has attempted to return, is in the process
of returning or intends to return,
(i) such
Inventory has not been shipped or delivered to a customer on consignment, a sale or return basis, or on the basis of any similar
understanding,
(j) such
Inventory was acquired by the Company in the ordinary course of business from a non-Affiliate;
(k) such
Inventory has not given rise to an Eligible Receivable; and
(l) such
Inventory is not Inventory the Agent has otherwise deemed ineligible at any time and from time to time, such determination to be
made in the Agent’s judgment, in good faith and based on information which, in its judgment, supports such determination;
provided that (i) in no event shall the aggregate amount of
the Eligible Inventory included in the Borrowing Base at any time exceed an amount equal to 65% of the Borrowing Base and (ii)
if at any time and from time to time the Agent shall determine a warehouse or storage location unacceptable (in its reasonable
discretion) and the Agent shall deliver notice thereof to the Company, (x) any Inventory located at such facility on (or received
by such facility within 14 days after) the date of delivery by the Agent of such notice shall be included as Eligible Inventory
(to the extent such Inventory otherwise qualifies as Eligible Inventory) for not more than 120 days after the date of delivery
of such notice and (y) no Inventory initially received at such facility after the date which is 14 days after the date of delivery
by the Agent of such notice shall be Eligible Inventory until located at a storage facility reasonably acceptable to the Agent.
“Eligible Inventory
Ordered Under L/C” means, as at any date, the aggregate purchase price payable for Inventory (not otherwise included
in the Borrowing Base): (a) that the Company has contracted to purchase pursuant to a purchase contract in which the Agent
has a first priority perfected Lien (subject to the terms of the Intercreditor Agreement); (b) the purchase price of which
is supported by a commercial Letter of Credit issued by the applicable Issuing Bank; (c) that is to be delivered to the Company
prior to the Revolving Credit Line Termination Date; and (d) that, upon receipt by the Company and payment under the Letter
of Credit, will constitute Eligible Inventory.
“Eligible Mexican
Receivables” means at any date, the aggregate amount of all Receivables at such date payable to a subsidiary of the Company
that is organized under the laws of Mexico (the “Mexican Subsidiary”), which would qualify as Tier I Eligible
Receivables but for the fact that such Receivables are payable in Mexican pesos and/or are owing to the Mexican Subsidiary rather
than the Company, provided that in order to qualify as Eligible Mexican Receivables, the Mexican Subsidiary shall have:
(i) delivered
to the Agent and the Banks (a) a duly executed security agreement governed by the laws of Mexico (in form and substance reasonably
satisfactory to the Agent) and (b) such other documentation reasonably requested by the Agent or the Required Banks as necessary
to provide a first priority perfected Lien (or the equivalent under local law) in the Eligible Mexican Receivables and proceeds
thereof;
(ii) delivered
to the Agent and the Banks evidence of the filing with all necessary Governmental Authorities of financing statements or other
registrations of pledge or Lien which may be reasonably requested by the Agent or the Required Banks;
(iii) delivered
to the Agent and the Banks an opinion or opinions of counsel to the Mexican Subsidiary licensed to practice in the jurisdiction
in which the Mexican Subsidiary is organized opining as to the execution, delivery and enforceability of the applicable security
agreement and attachment, perfection and priority of the related security interest and any other matters reasonably requested by
the Agent and the Required Banks; and
(iv) delivered
to the Agent and the Banks all requested “know your customer” information and other information requested by the Agent
and the Banks.
Notwithstanding the foregoing,
at no time shall Eligible Mexican Receivables included in the Borrowing Base exceed $10,000,000 (after giving effect to the applicable
advance rate).
“Eligible Net
Liquidating Value in Brokerage Accounts” means, as of any date of determination, the aggregate amount of the “net
liquidating value” or “net equity” (however designated) or amount that would be available for withdrawal upon
closing such accounts and liquidation of all open positions at current market values as reported in the most recent account statements
for the relevant account in all commodities accounts of the Company held with commodity intermediaries acceptable to the Agent
in which the Agent has been granted a perfected Lien and which is subject to the execution and delivery of one or more Account
Control Agreements among the Agent, the Company and the applicable commodity intermediaries and that is free and clear of any other
Liens other than customary Liens in favor of the applicable commodity intermediary securing obligations arising in connection with
the operation of such commodity account in the ordinary course.
“Eligible Receivables”
means, as at any date, the aggregate amount of all Receivables at such date payable to the Company, other than the following (determined
without duplication):
(a) any
Receivable payable in a currency other than a Permitted Currency;
(b) any
Receivable due from an account debtor whose principal place of business is (i) located in Australia or (ii) otherwise not located
in the United States of America, Canada or Latin America and with respect to this clause (ii) only, which are not: (A) backed
by a bank letter of credit naming the Agent as beneficiary or assigned to the Agent, in the Agent’s possession and acceptable
to the Agent in all respects, such determination to be made in the Agent’s judgment and in good faith or (B) covered by a
foreign receivables insurance policy acceptable to the Agent (on which the Agent shall have been named loss-payee), such determination
to be made in the Agent’s judgment and in good faith,
(c) any
Receivable owing from an Affiliate of the Company,
(d) any
Receivable owing from an account debtor that the Required Banks (through the Agent) have notified the Company does not have a satisfactory
credit standing (as determined by the Required Banks, such determination to be made in each of their respective judgments, in good
faith and based on information which, in their respective judgments, supports such determination),
(e) any
Receivable that remains unpaid for more than 60 days after the original due date thereof,
(f) all
Receivables of any account debtor if more than 50% of the aggregate amount of the Receivables owing to the Company from such account
debtor shall at the time have remained unpaid and outstanding for more than 60 days after the original due date thereof,
(g) any
Receivable as to which there is any unresolved dispute with the respective account debtor or which is subject to any offset, counterclaim,
reduction or other claim or defense on the part of the account debtor or to any claim on the part of the account debtor denying
payment liability under such Receivable (including, without limitation, the amount of all liabilities and obligations of the Company
to the account debtor and mark-to-market losses on forward, derivative or other contracts with such account debtor) (but only to
the extent of the amount thereof in dispute or the amount subject to offset, counterclaim, reduction or other claim or defense),
(h) any
Receivable evidenced by an Instrument or Chattel Paper (as such terms are defined in the UCC) not in the possession of the Agent,
(i) any
Receivable representing an obligation for goods sold on consignment, approval or a sale-or-return basis or subject to any other
repurchase or return arrangement,
(j) any
Receivable that is payable more than 120 days after the date of the original invoice therefor, provided that Receivables owing
from account debtors organized or located in Brazil which are payable up to 180 days after the date of the original invoice therefor
shall not be excluded from Eligible Receivables under this clause (j) so long as such Receivables are Credit Insured Receivables,
provided, further, that additional Receivables that have a due date of greater than 120 days after the date of the
original invoice therefor in an aggregate amount not to exceed $3,500,000 at any time shall not be excluded from Eligible Receivables
under this clause (j) so long as such Receivables are Credit Insured Receivables,
(k) any
Receivable owed by any Governmental Authority, whether foreign or domestic (provided, however, that there shall be included in
Eligible Receivables that portion of Receivable owed by such Governmental Authority for which the Company has provided evidence
satisfactory to the Agent (including, without limitation, that all necessary actions have been taken under any applicable Assignment
of Claims Act) that (i) the Agent has a security interest in such Receivable and (ii) such Receivable may be enforced by the Agent
against such Governmental Authority),
(l) any
Receivable that has arisen in a transaction in which the Customer’s obligations have been subcontracted to a third party
or is assured by a performance, completion or other bond,
(m) any
Receivable with respect to which the Agent does not have a first priority, perfected Lien on behalf of the Banks (subject only
to Permitted Borrowing Base Liens) or which is subject to any other Lien (other than Permitted Borrowing Base Liens and Liens (subordinate
to the Agent’s Liens) permitted under Section 8.06(j) hereof),
(n) any
Receivable which shall not be the valid, legally enforceable and binding obligation of the applicable account debtor,
(o) any
Receivable not evidenced by an invoice which shall have been issued to the applicable account debtor,
(p) any
Receivable which does not comply in all material respects with all applicable Laws to which such Receivable and the Company are
subject,
(q) any
Receivable, the account debtor of which is insolvent or a debtor under chapter 11 of the United States Bankruptcy Code (a “Chapter
11 Debtor”) or any other proceeding, whether voluntary or involuntary, under any bankruptcy, reorganization, arrangement,
insolvency, adjustment of debt, dissolution, liquidation or similar law of any jurisdiction, and
(r) any
Receivable not arising from the purchase of Inventory in an arm’s length bona fide transaction conducted in the ordinary
course of business in compliance with all applicable Laws.
“Eligible Unsold
Inventory” means Inventory which is not Eligible Inventory that, but for the failure to satisfy clause (e) of the definition
of “Eligible Inventory”, would qualify as Eligible Inventory, valued at the lower of cost (as determined using the
specific identification method) or market in accordance with GAAP; provided that in no event shall the aggregate amount of such
Eligible Unsold Inventory (including, without limitation, stainless steel) included in the Borrowing Base at any time exceed $3,500,000
(after giving effect to the applicable advance rate), plus
“Environmental
Laws” means any and all legally binding Laws concerning the environment or the protection of health and safety with respect
to exposure to contamination or pollution in the environment which are in existence now or in the future and are binding at any
time on the Company or any of its Subsidiaries in the relevant jurisdiction in which the Company or any Subsidiary has been or
is operating (including by the export of its products or its waste to that jurisdiction).
“Environmental
Permits” means any permit, license, consent, approval, registration and other authorization required under any Environmental
Law for the operation of the business of the Company or any of its Subsidiaries conducted on or from the properties owned or operated
by the Company or such Subsidiary.
“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time to time.
“ERISA Affiliate”
means any trade or business that is a member of any group of organizations (i) described in Section 414(b) or (c) of the Code
of which the Company is a member and (ii) solely for purposes of potential liability under Section 302 of ERISA and Section 412(c)
of the Code and the lien created under Section 303(k) of ERISA and Section 430(k) of the Code, described in Section 414(m)
or (o) of the Code of which the Company is a member.
“Eurodollar
Base Rate” means, with respect to any Eurodollar Loan for any Interest Period therefor, the rate of interest per annum
equal to the London interbank offered rate as administered by the ICE Benchmark Administration (or any other Person that takes
over the administration of such rate) for deposits in Dollars with a term equivalent to such Interest Period as displayed on the
Reuters screen page that displays such rate (currently page LIBOR01) (or, in the event such rate does not appear on a Reuters page
or screen, on the appropriate page of such other information service that publishes such rate as shall be selected by the Agent
from time to time in its reasonable discretion) as of 11:00 a.m., London time, two (2) Business Days prior to the commencement
of such Interest Period (but in respect of the Eurodollar Rate as that term is used in the definition of the term “Base Rate”,
as of 11:00 a.m., London time, on the day of determination thereof or if such day is not a Business Day on the immediately preceding
Business Day (the rate determined pursuant to this sentence, herein the “Page Rate”); provided that in the event that
the Page Rate is not available at such time for any reason, the “Eurodollar Base Rate” for the purposes of this definition
shall instead be the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) offered to Rabobank or one of its
Affiliates at approximately 11:00 a.m. London time (or as soon thereafter as practicable) two Business Days prior to the first
day of such Interest Period (but in respect of the Eurodollar Rate as that term is used in the definition of the term “Base
Rate”, as of 11:00 a.m., London time, on the day of determination thereof) or if such day is not a Business Day on the immediately
preceding Business Day by leading banks in the London interbank market of Dollar deposits in immediately available funds having
a term comparable to such Interest Period.
“Eurodollar
Loans” means Loans that bear interest at rates based on rates referred to in the definition of “Eurodollar Base
Rate” in this Section 1.01.
“Eurodollar
Rate” means, for any Eurodollar Loan for any Interest Period therefor, a rate per annum (rounded upwards, if necessary,
to the nearest 1/100 of 1%) determined by the Agent to be equal to the Eurodollar Base Rate for such Loan for such Interest Period
divided by 1 minus the Reserve Requirement (if any) for such Loan for such Interest Period.
“Event of Default”
has the meaning assigned to such term in Section 9 hereof.
“Excluded Swap
Obligations” means, with respect to any Obligor, any Swap Obligation if, and to the extent that, all or a portion of
the guarantee of such Obligor of, or the grant by such Obligor 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 of any thereof) by virtue of such Obligor’s failure for any reason
to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder
at the time the guarantee of such Obligor or the grant of such security interest becomes effective with respect to such Swap Obligation.
If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion
of such Swap Obligation that is attributable to swaps for which such guarantee or security interest is or becomes illegal under
the Commodity Exchange Act or any rule, regulation or order of the U.S. Commodity Futures Trading Commission or the application
or official interpretation thereof.
“Excluded Taxes”
means, with respect to the Agent, any Bank or any other recipient of any payment to be made by or on account of any obligation
of any Obligor hereunder: (a) taxes imposed on or measured by its overall net income (however denominated) by the jurisdiction
(or any political subdivision thereof) under the Laws of which such recipient is organized or in which its principal office is
located or, in the case of any Bank, in which its Applicable Lending Office is located; (b) any branch profits taxes imposed by
the United States of America or any similar tax imposed by any other jurisdiction in which the applicable Obligor is located, (c)
in the case of a Foreign Bank any withholding tax that is imposed on amounts payable to such Foreign Bank at the time such Foreign
Bank becomes a party to this Agreement (or designates a new lending office) or is attributable to such Foreign Bank’s failure
(or inability) to comply with Section 5.06(e), except to the extent that such Foreign Bank’s assignor (if any) was entitled,
at the time of assignment, to receive additional amounts from the Company with respect to such withholding tax pursuant to Section
5.06, (d) any backup withholding Tax that is required by the Code to be withheld from amounts payable to a Bank because of its
failure to comply with Section 5.06 hereof, and (e) any Taxes imposed on any “withholdable payment” as a result
of the failure of a recipient to satisfy the applicable requirements as set forth in FATCA after December 31, 2012.
“Executive Order”
has the meaning assigned to such term in Section 7.16 hereof.
“FATCA”
means Sections 1471 through 1474 of the Code, as in effect on the date hereof, including any amendments made thereto after the
date of this Agreement, and any current or future regulations or official interpretations thereof.
“Federal Funds
Rate” means, for any day, the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) equal to the
weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day, provided
that (a) if the day for which such rate is to be determined is not a Business Day, the Federal Funds Rate for such day shall
be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day and (b) if
such rate is not so published for any Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the
quotations for such day for such transactions received by Rabobank from three Federal funds brokers of recognized standing selected
by it.
“Foreign Bank”
means any Bank that is not a “United States person”, as defined under Section 7701(a)(30) of the Code.
“Fronting Banks”
means the Issuing Banks.
“Fronting Exposure”
means, at any time, the aggregate principal amount of all Letter of Credit Liabilities outstanding at such time. The Fronting Exposure
of any Bank at any time shall be its Revolving Loan Line Portion Percentage of the total Fronting Exposure at such time.
“GAAP”
means generally accepted accounting principles in the United States of America.
“Governing Documents”
means, with respect to a: (a) corporation, its articles or certificate of incorporation and bylaws, (b) limited partnership, its
certificate of limited partnership and limited partnership agreement, (c) limited liability company, its certificate of formation
and limited liability company or operating agreement and (d) any other Person, the other organizational or governing documents
of such Person and, in each case, any other organizational or governing documents, as applicable.
“Governmental
Authority” means any nation or government, any state or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.
“Guarantee”
means a guarantee, an endorsement, a contingent agreement to purchase or to furnish funds for the payment or maintenance of, or
otherwise to be or become contingently liable under or with respect to, the Indebtedness, other obligations, net worth, working
capital or earnings of any Person, or a guarantee of the payment of dividends or other distributions upon the Capital Securities
of any Person, or an agreement to purchase, sell or lease (as lessee or lessor) Property, products, materials, supplies or services
primarily for the purpose of enabling a debtor to make payment of such debtor’s obligations or an agreement to assure a creditor
against loss, and including causing a bank or other financial institution to issue a letter of credit or other similar instrument
for the benefit of another Person, but excluding endorsements for collection or deposit in the ordinary course of business. The
terms “Guarantee” and “Guaranteed” used as a verb has a correlative meaning.
“Guarantors”
means each Subsidiary of the Company that executes and delivers a Subsidiary Guarantee.
“Hedging Agreement”
means any interest rate protection agreement, foreign currency exchange agreement, commodity price protection agreement or other
interest or currency exchange rate or commodity price hedging arrangement or any other similar transaction governed by an ISDA
Master Agreement.
“Hedging Obligations”
means all net obligations, indebtedness, and liabilities of the Company or any Subsidiary, or any one of them, to any Bank or an
Affiliate of a Bank (or any Person which was a Bank or an Affiliate of a Bank at the time such Person entered into the applicable
Hedging Agreement), arising pursuant to any Hedging Agreements entered into by such Bank, Affiliate or other Person (while such
other Person was a Bank or an Affiliate thereof) with the Company or any Subsidiary, or any one of them, whether now existing or
hereafter arising, whether direct, indirect, related, unrelated, fixed, contingent, liquidated, unliquidated, joint, several, or
joint and several, including all fees, costs, and expenses (including attorneys’ fees and expenses) provided for in such
Hedging Agreements. The term “Hedging Obligations” includes any and all post-petition interest and expenses (including
attorneys’ fees) whether or not allowed under any bankruptcy, insolvency, or other similar Law.
“Imbali Facility”
means Indebtedness of Imbali Metals Bvba consisting of a revolving working capital facility provided by ING Belgium S.A./N.V.,
in a principal amount not to exceed €10,000,000 at any one time outstanding, and any extensions, renewals, refinancing and
replacements of any such facility that do not increase the outstanding principal amount thereof or result in an earlier maturity
date thereof.
“Imbali Guarantee”
means a Guarantee by the Company of the Imbali Facility.
“Indebtedness”
means, for any Person: (a) obligations created, issued or incurred by such Person for borrowed money (whether by loan, the issuance
and sale of debt securities or the sale of Property to another Person subject to an understanding or agreement, contingent or otherwise,
to repurchase such Property from such Person), and any other indebtedness of such Person which is evidenced by a note, bond, debenture
or similar instrument; (b) obligations of such Person to pay the deferred purchase or acquisition price of Property or services,
other than trade accounts payable (other than for borrowed money) arising, and accrued expenses incurred, in the ordinary course
of business so long as such trade accounts payable are payable within 90 days of the date the respective goods are delivered or
the respective services are rendered; (c) Indebtedness of others secured by a Lien on the Property of such Person, whether or not
the respective indebtedness so secured has been assumed by such Person; (d) obligations of such Person in respect of letters of
credit or similar instruments issued or accepted by banks and other financial institutions for account of such Person; (e) Capital
Lease Obligations of such Person; (f) Indebtedness of others Guaranteed by such Person; (g) obligations under Hedging Agreements;
and (h) obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of preferred Capital
Securities of such Person. The amount of any Indebtedness under clause (c) shall be equal to the lesser of (A) the stated amount
of the relevant obligations and (B) the fair market value of the property subject to the relevant Lien.
“Indemnified
Taxes” means Taxes other than Excluded Taxes.
“Interest Period”
means, with respect to any Eurodollar Loan, each period commencing on the date such Eurodollar Loan is made or Converted from a
Base Rate Loan or the last day of the next preceding Interest Period for such Loan and ending on the numerically corresponding
day in the first week or first, second or third calendar month thereafter, as the Company may select as provided in Section 4.05
hereof, except that (i) each Interest Period that commences on the last Business Day of a calendar month (or on any day for which
there is no numerically corresponding day in the appropriate subsequent calendar month) shall end on the last Business Day of the
appropriate subsequent calendar month and (ii) no Interest Period shall extend beyond the Revolving Credit Line Termination Date.
Notwithstanding the foregoing, each
Interest Period that would otherwise end on a day that is not a Business Day shall end on the next succeeding Business Day (or,
in respect of an Interest Period other than one week, if such next succeeding Business Day falls in the next succeeding calendar
month, on the next preceding Business Day).
“Intercreditor
Agreement” means the Intercreditor Agreement dated as of the date hereof, substantially in the form of Exhibit M hereto,
between the Agent and the Committed Facility Agent, as the same shall be amended, supplemented or otherwise modified from time
to time.
“Interim Borrowing
Base Certificate” means a report certified by the chief financial officer or other authorized officer of the Company,
substantially in the form of Exhibit B, with appropriate insertions and schedules, showing the Borrowing Base as of the
date set forth therein after giving effect to the credit extensions requested in relation to such Interim Borrowing Base Certificate.
“Inventory”
means the Company’s semi-finished aluminum and steel products and aluminum billets and other similar metals products approved
by the Required Banks.
“Investment”
means, for any Person: (a) the acquisition (whether for cash, Property, services or securities or otherwise) of capital stock,
bonds, notes, debentures, partnership or other ownership interests or other securities of any other Person or any agreement to
make any such acquisition (including any “short sale” or any sale of any securities at a time when such securities
are not owned by the Person entering into such sale); (b) the making of any deposit with, or advance, loan or other extension
of credit to, any other Person (including the purchase of Property from another Person subject to an understanding or agreement,
contingent or otherwise, to resell such Property to such Person), but excluding any such advance, loan or extension of credit having
a term not exceeding 90 days representing the purchase price of inventory or supplies sold by such Person in the ordinary course
of business; (c) the entering into of any Guarantee of, or other contingent obligation with respect to, Indebtedness or other
liability of any other Person and (without duplication) any amount committed to be advanced, loaned or extended to such Person;
or (d) the entering into of any Hedging Agreement.
“Investment
Grade” means, with respect to any Person as of any date of determination, the long term senior unsecured non-credit enhanced
credit rating of such Person is BBB- or higher by S&P or Baa3 or higher by Moody’s.
“Issuance Cap”
means, with respect to the obligation of an Issuing Bank to issue any Letter of Credit under this Agreement, the maximum permitted
aggregate outstanding amount of Letter of Credit Liabilities attributable to Letters of Credit issued by such Issuing Bank, as
shall be agreed upon by each Issuing Bank, the Company and the Agent in writing upon any new Issuing Bank becoming an Issuing Bank,
as such agreement may be amended, modified or supplemented from time to time by the parties thereto. As of the Closing Date, Rabobank
has an Issuance Cap in an amount equal to $35,000,000. The Issuance Cap for Rabobank shall be reduced, in its sole discretion,
by all or any part of the amount of the Issuance Cap of each new Issuing Bank, on the date such new Issuing Bank shall become an
Issuing Bank.
“Issuing Bank”
means Rabobank in its capacity as the issuer of Letters of Credit hereunder, and its successors in such capacity. The Company may,
in its discretion, arrange for one or more Letters of Credit to be issued by any other Bank, in which case the term Issuing Bank
shall include any such Bank with respect to Letters of Credit issued by such Bank. Each Issuing Bank may, in its discretion,
arrange for one or more Letters of Credit to be issued by Affiliates of the applicable Issuing Bank, in which case the term Issuing
Bank shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate, together with its
successors and assigns in such capacity.
“ISP”
means International Standby Practices ISP98, International Chamber of Commerce Publication No. 590, as from time to time amended,
modified and replaced.
“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, licenses, authorizations and permits of, and agreements with, any Governmental Authority.
“L/C Cap”
has the meaning assigned to such term in Section 2.03 hereof.
“L/C Participant”
has the meaning assigned to such term in Section 2.03(b) hereof.
“Letter of Credit”
has the meaning assigned to such term in Section 2.03 hereof.
“Letter of Credit
Documents” means, with respect to any Letter of Credit, collectively, any application therefor and any other agreements,
instruments, guarantees or other documents (whether general in application or applicable only to such Letter of Credit) governing
or providing for (a) the rights and obligations of the parties concerned or at risk with respect to such Letter of Credit
or (b) any collateral security for any of such obligations, each as the same may be amended, supplemented or otherwise modified
and in effect from time to time.
“Letter of Credit
Interest” means for each Bank, such Bank’s participation interest (or, in the case of the applicable Issuing Bank,
such Issuing Bank’s retained interest) in the applicable Issuing Bank’s liability under Letters of Credit and such
Bank’s rights and interests in Reimbursement Obligations and fees, interest and other amounts payable in connection with
Letters of Credit and Reimbursement Obligations.
“Letter of Credit
Liability” means, without duplication, at any time and in respect of any Letter of Credit, the sum of (a) the undrawn
face amount of such Letter of Credit plus (b) the aggregate unpaid principal amount of all Reimbursement Obligations
of the Company at such time due and payable in respect of all drawings made under such Letter of Credit.
“Leverage Ratio”
means, at any time, the ratio of (a) Total Liabilities at such time minus the amount of Subordinated Debt at such time to
(b) Tangible Net Worth of the Company at such time.
“Lien”
means, with respect to any Property, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect
of such Property. For purposes of this Agreement and the other Basic Documents, a Person shall be deemed to own subject to a Lien
any Property that it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement,
capital lease or other title retention agreement (other than an operating lease) relating to such Property.
“Loan Obligations”
means all obligations, indebtedness, and liabilities of the Company or any Subsidiary, or any one of them, to the Agent and the
Banks arising pursuant to any of the Basic Documents, whether now existing or hereafter arising, whether direct, indirect, related,
unrelated, fixed, contingent, liquidated, unliquidated, joint, several, or joint and several, including the obligation of the Company
or any Subsidiary to repay the Loans, the Letter of Credit Liabilities, interest on the Loans and Letter of Credit Liabilities,
and all reasonable fees, costs, and expenses (including reasonable attorneys’ fees and expenses) provided for in the Basic
Documents. The term “Loan Obligations” includes any and all post-petition interest and expenses (including attorneys’
fees) whether or not allowed under any bankruptcy, insolvency, or other similar Law.
“Loan”
means a Revolving Loan of any Type.
“Loan Advance
Date” has the meaning assigned to such term in Section 4.06 hereof.
“Margin Stock”
means “margin stock” within the meaning of Regulation T or U.
“Material Adverse
Effect” means a material adverse effect on (a) the Property, business, operations, financial condition, prospects,
liabilities or capitalization of the Company and its Subsidiaries (on a consolidated basis), (b) the ability of the Company
or any of its Subsidiaries to perform its obligations under any of the Basic Documents to which it is a party, (c) the validity
or enforceability of any of the Basic Documents, (d) the rights and remedies of the Banks and the Agent under any of the Basic
Documents or (e) the timely payment of the principal of or interest on the Loans or the Reimbursement Obligations or other
amounts payable in connection therewith.
“Material Indebtedness”
has the meaning assigned to such term in Section 9.01(b) hereof.
“Materials of
Environmental Concern” means any gasoline or petroleum (including crude oil or any fraction thereof) or petroleum products
or any hazardous or toxic substances, materials or wastes, defined or regulated as such in or under, or which form the basis of
liability under, any Environmental Law, including, without limitation, asbestos, polychlorinated biphenyls and urea-formaldehyde
insulation, medical waste, radioactive materials and electromagnetic fields.
“Maximum Rate”
has the meaning assigned to such term in Section 11.17(a) hereof.
“Mexican Subsidiary”
has the meaning assigned to such term in the definition of “Eligible Mexican Receivables”.
“Moody’s”
means Moody’s Investors Service, Inc., or any successor to its rating agency business.
“Multiemployer
Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which the Company or any
ERISA Affiliate makes or is obligated to make contributions.
“Net Working
Capital” means as of any date of determination with respect to any Person, an amount equal to the excess of (i) Consolidated
Current Assets of such Person and its Subsidiaries over (ii) Consolidated Current Liabilities of such Person and its Subsidiaries
as at such date.
“Non-Renewal
Notice Date” has the meaning assigned to such term in Section 2.03(o) hereof.
“Notes”
means the promissory notes in substantially the form of Exhibit A hereto provided for by Section 2.09 hereof and all promissory
notes delivered in substitution or exchange therefor, in each case as the same shall be amended, supplemented or otherwise modified
and in effect from time to time.
“Obligations”
means all Loan Obligations, the Hedging Obligations and all Deposit Obligations.
“Obligor Accounts”
has the meaning assigned to such term in Section 10.14 hereof.
“Obligors”
means, collectively, the Company and the Guarantors.
“OFAC”
has the meaning assigned to such term in Section 7.16 hereof.
“Other Taxes”
means any and all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies
arising from any payment made hereunder or under any other Basic Document or from the execution, delivery or enforcement of, or
otherwise with respect to, this Agreement or any other Basic Document.
“Participant”
has the meaning assigned to such term in Section 11.06(d) hereof.
“Payor”
has the meaning assigned to such term in Section 4.06 hereof.
“PBGC”
means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its functions under ERISA.
“Permitted Borrowing
Base Liens” means Liens permitted under clauses (b) and (c) of Section 8.06 hereof.
“Permitted Currency”
means Dollars, Canadian dollars, Euros, Australian dollars, New Zealand dollars and Mexican pesos, provided, that for purposes
of clause (a) of the definition of “Eligible Receivables”, Permitted Currency shall not include Australian dollars
or Mexican pesos.
“Permitted Investments”
means: (a) direct obligations of the United States of America, or of any agency thereof, or obligations guaranteed as to principal
and interest by the United States of America, or of any agency thereof, in either case maturing not more than 90 days from the
date of acquisition thereof; (b) certificates of deposit issued by any bank or trust company organized under the Laws of the
United States of America or any state thereof and having capital, surplus and undivided profits of at least $500,000,000, maturing
not more than 90 days from the date of acquisition thereof; (c) commercial paper rated A-1 or better or P-1 by S&P or
Moody’s, respectively, maturing not more than 90 days from the date of acquisition thereof; (d) municipal bonds with a credit
rating acceptable to the Required Banks; (e) loans or advances to employees made in the ordinary course of business in an aggregate
principal amount outstanding at any time not to exceed $100,000; (f) stock, obligations or securities received in settlement of
debts created in the ordinary course of business and owing to an Obligor or in satisfaction of judgments, including pursuant to
any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of any trade creditor or customer; (g) consideration
received in connection with any asset sale or other disposition permitted under this Agreement; (h) any acquisition of assets solely
in exchange for the issuance of Capital Securities of the Company; and (i) all cash held in deposit accounts subject to an Account
Control Agreement.
“Person”
means any individual, corporation, company, limited liability company, voluntary association, partnership, joint venture, trust,
unincorporated organization or government (or any agency, instrumentality or political subdivision thereof).
“Platform”
has the meaning assigned to such term in Section 11.02(a) hereof.
“Plan”
means an employee benefit or other plan established or maintained by the Company or any ERISA Affiliate and that is covered by
Section 412 of the Code or Title IV of ERISA, other than a Multiemployer Plan, or to which the Company or any ERISA Affiliate contributes
or has an obligation to contribute, or in the case of a multiple employer plan described in Section 4064(a) of ERISA, has made
contributions at any time during the preceding five plan years.
“Pledged Cash”
means deposit accounts maintained at any bank or trust company organized or licensed under the Laws of the United States of America
or any state thereof and having capital, surplus and undivided profits of at least $500,000,000 which are subject to Account Control
Agreements in favor of the Agent and are otherwise subject to a first priority, perfected security interest in favor of the Agent
and are free and clear of liens of third persons (other than customary netting and setoff rights, bankers’ liens and the
like in favor of such bank or trust company).
“Post-Default
Rate” means a rate per annum equal to 2% plus the Base Rate as in effect from time to time plus the Applicable
Margin for Base Rate Loans, provided that, if the amount with respect to which interest at the Post-Default Rate is payable
is principal of a Eurodollar Loan and the due date thereof is a day other than the last day of the Interest Period therefor, the
“Post-Default Rate” for such principal shall be, for the period from and including such due date to but excluding the
last day of such Interest Period, 2% plus the interest rate for such Loan as provided in Section 3.02(a)(ii) hereof
and, thereafter, the rate provided for above in this definition.
“Principal Shareholders”
means Nathan S. Kahn and Sandra R. Kahn.
“Property”
means any right or interest in or to property of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible.
“Quad Avenue
Loan Agreement” means the Loan Agreement dated as of December 27, 2004 between 6900 Quad Avenue, LLC and JPMorgan
Chase Bank, N.A., as the same shall be amended, supplemented or otherwise modified and in effect from time to time.
“Quad Avenue
Subsidiary” means 6900 Quad Avenue, LLC, unless such Person owns any property (real or otherwise) other than the approximately
122,000 square foot warehouse located at 6900 Quad Avenue, Baltimore, Maryland.
“Quarterly Dates”
means the last Business Day of each March, June, September and December, the first of which shall be the first such day after the
date of this Agreement.
“Rabobank”
has the meaning set forth in the introductory paragraph herein.
“Receivables”
means, as at any date, the unpaid portion of the obligation, as stated on the respective invoice, of a customer of the Company
(or, in respect of Eligible Mexican Receivables, the Mexican Subsidiary) in respect of Inventory sold and shipped to such customer,
net of any credits, rebates or offsets owed to such customer and also net of any commissions payable to third parties (and for
purposes hereof, a credit or rebate paid by check or draft of the Company (or, in respect of Eligible Mexican Receivables, the
Mexican Subsidiary) shall be deemed to be outstanding until such check or draft has been debited to the account of the Company
(or, in respect of Eligible Mexican Receivables, the Mexican Subsidiary) and net of any applicable taxes including, without limitation,
sales, excise and similar taxes.
“Register”
has the meaning set forth in Section 11.06(b) hereof.
“Regulations
D, T, U and X” means, respectively, Regulations D, T, U and X of the Board of Governors of the Federal Reserve System
(or any successor), as the same may be modified and supplemented and in effect from time to time.
“Regulatory
Change” means, with respect to any Bank, any change after the date of this Agreement in Federal, state or foreign Law
or regulations (including Regulation D) or the adoption or making after such date of any interpretation, directive or request applying
to a class of banks including such Bank of or under any Federal, state or foreign Law or regulations (whether or not having the
force of Law and whether or not failure to comply therewith would be unlawful) by any court or governmental or monetary authority
charged with the interpretation or administration thereof. The Dodd-Frank Act, Basel III and all requests, rules, guidelines, and
directives promulgated under any of the foregoing shall be deemed to be a “Regulatory Change “, regardless of the date
enacted or adopted.
“Reimbursement
Obligations” means, at any time, the obligations of the Company then outstanding to reimburse amounts paid by the applicable
Issuing Bank in respect of any drawings under a Letter of Credit.
“Relevant Properties”
has the meaning assigned to such term in Section 7.12 hereof.
“Required Banks”
means Banks having 51% of the aggregate amount of the Revolving Loan Line Portions or, if the Revolving Loan Line Portions have
terminated, Banks holding at least 51% of the aggregate amount of the Credit Exposure. If at the time of the calculation of the
Required Banks, one or more Defaulting Banks exists, the Credit Exposure and unused Revolving Loan Line Portions of each Defaulting
Bank shall be excluded from both the numerator and denominator of the calculation.
“Required Payment”
has the meaning assigned to such term in Section 4.06 hereof.
“Required Loan
Payment” has the meaning assigned to such term in Section 4.06 hereof.
“Requirement
of Law” means, as to any Person, any Law, treaty, rule or regulation or determination of an arbitrator or a court or
other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person
or any of its property is subject.
“Reserve Requirement”
means the average maximum rate at which reserves (including any marginal, supplemental or emergency reserves) are required to be
maintained under Regulation D by member banks of the Federal Reserve System in New York City with deposits exceeding one billion
Dollars against “Eurocurrency liabilities” (as such term is used in Regulation D). Without limiting the effect of the
foregoing, the Reserve Requirement shall include any other reserves required to be maintained by such member banks by reason of
any Regulatory Change with respect to (i) any category of liabilities that includes deposits by reference to which the Eurodollar
Base Rate is to be determined as provided in the definition of “Eurodollar Base Rate” in this Section 1.01 or
(ii) any category of extensions of credit or other assets that includes Eurodollar Loans.
“Revolving Credit
Line Termination Date” means June 19, 2015.
“Revolving Loan
Line Portion” means, as to each Bank, the obligation of such Bank to consider requests to make Loans and to acquire a
participation in Letters of Credit in an aggregate principal or face amount at any one time outstanding up to but not exceeding
the amount set opposite such Bank’s name under the caption “Revolving Loan Line Portion” on Schedule A attached
hereto and incorporated herein by reference (as the same may be reduced or increased from time to time in connection with a Declining
Bank election pursuant to Section 2.12 hereof). As of June 19, 2014, the aggregate amount of the Revolving Loan Line Portions is
$75,000,000.
“Revolving Loan
Line Portion Percentage” means, with respect to any Bank and except as set forth in clause (b) below:
(a) (x) with
respect to any Loan made, or Letter of Credit issued, extended or increased at any time prior to any Conversion to Approving Banks
Funding Date, the ratio of (i) the amount of the Revolving Loan Line Portion of such Bank on the date of borrowing, issuance,
extension or increase, as applicable, to (ii) the aggregate amount of the Revolving Loan Line Portions of all of the Banks
on the date of borrowing, issuance, extension or increase, as applicable; provided that if at the time of the calculation one or
more Defaulting Banks exists, the Revolving Loan Line Portion Percentages are subject to reallocation as provided in Section 4.12,
and
(y) with
respect to any Loan made or Letter of Credit issued, extended or increased on or after a Conversion to Approving Banks Funding
Date, (i) if such Bank is an Approving Bank with respect to such Loan or Letter of Credit as of the borrowing date of such Loan
or date of issuance, extension or increase for such Letter of Credit, as applicable, the ratio of (I) the amount of the Revolving
Loan Line Portion of such Approving Bank on such date to (II) the aggregate amount of the Revolving Loan Line Portions of all Approving
Banks on such date and (ii) if such Bank is a Declining Bank as of the borrowing date of such Loan or the date of issuance, extension
or increase for such Letter of Credit, 0%, provided that if at the time of the calculation, one or more Defaulting Banks exists,
the Revolving Loan Line Portion Percentages are subject to reallocation as provided in Section 4.12.
(b) with
respect to any Bank in respect of any indemnity claim under Section 10.05 arising out of an action or omission of the Agent under
this Agreement, the ratio of (i) the amount of the Revolving Loan Line Portion of such Bank to (ii) the aggregate amount
of the Revolving Loan Line Portions of all of the Banks.
If the Revolving Loan Line Portions have
terminated or expired, the Revolving Loan Line Portion Percentage shall be determined based upon the Revolving Loan Line Portions
most recently in effect, giving effect to any assignments.
“Revolving Loans”
means the Loans provided for in Section 2.01 hereof, which may be Base Rate Loans and/or Eurodollar Loans.
“S&P”
means Standard and Poor’s Ratings Services, or any successor to its rating agency business.
“Sanctioned
Person” has the meaning assigned to such term in Section 7.16 hereof.
“Secured Parties”
means the Agent, the Banks and each Affiliate of a Bank who is owed any portion of the Obligations.
“Security Agreement”
means the Security Agreement among the Company, the Guarantors and the Agent, substantially in the form of Exhibit C hereto, as
the same shall be amended, supplemented or otherwise modified and in effect from time to time.
“Security Documents”
means, collectively, the Security Agreement, the Subsidiary Guarantee, the Share Pledge Agreement, all Uniform Commercial Code
financing statements required by this Agreement and the Security Agreement to be filed with respect to the security interests in
personal Property and fixtures created pursuant to the Security Agreement, and each other security agreement or other document
executed and delivered pursuant to the Security Agreement and the Share Pledge Agreement to secure any of the Obligations.
“Share Pledge
Agreement” means that certain Share Pledge Agreement dated April 28, 2011 between the Company and Rabobank (in its capacities
as Agent and as Committed Facility Agent) pursuant to which the Company pledges 65% of the Capital Securities issued by Imbali
Metals Bvba, as the same shall be amended, supplemented or otherwise modified and in effect from time to time.
“Spot Rate”
means, for any Permitted Currency, the exchange rate published by The Wall Street Journal for the purchase of such Permitted
Currency with Dollars on the date that the foreign exchange computation is made, provided that the Company may obtain such rate
from another agency designated by the Company (and reasonably acceptable to the Agent) if a foreign exchange rate for such Permitted
Currency is not available from The Wall Street Journal at the time of determination.
“Subordinated
Debt” means unsecured Indebtedness of the Company that is: (a) provided to the Company substantially on the terms
set forth on Exhibit K hereto or on such other or different terms as shall be acceptable to the Required Banks in their sole discretion,
(b) subordinated to the Obligations on terms outlined on Exhibit K or on such other or different subordination terms, as shall
be acceptable to the Required Banks in their sole discretion and (c) not guaranteed by any Obligor unless such guarantee is
subordinated to obligations of such Obligor under the Basic Documents on terms similar to those outlined on Exhibit K or on such
other or different subordination terms, as shall be acceptable to the Required Banks in their sole discretion. For the avoidance
of doubt, the Indebtedness of the Company under the Imbali Guarantee shall not constitute Subordinated Debt.
“Subsidiary”
means, with respect to any Person, any corporation, partnership or other entity of which at least a majority of the securities
or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or
other persons performing similar functions of such corporation, partnership or other entity (irrespective of whether or not at
the time securities or other ownership interests of any other class or classes of such corporation, partnership or other entity
has or might have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned or controlled
by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person.
“Subsidiary
Guarantee” means the Subsidiary Guarantee in favor of the Agent, substantially in the form of Exhibit D hereto as the
same may be amended or otherwise modified from time to time.
“Swap Obligations”
means, with respect to any Obligor, 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.
“Tangible Net
Worth” means, as at any date for any Person, the sum for such Person (determined without duplication in accordance with
GAAP), of the following:
(a) the
amount of common stock; plus
(b) the
amount of surplus and retained earnings (or, in the case of a surplus or retained earnings deficit, minus the amount of
such deficit); plus
(c) accumulated
other comprehensive income; plus
(d) the
amount of any Subordinated Debt; minus
(e) the
sum of the following: (i) the aggregate amount of Investments by such Person, other than (x) Investments permitted under Section
8.08(e) hereof and (y) Permitted Investments plus (ii) to the extent not deducted in the calculation of Tangible Net Worth
under clause (i) above, Investments in and receivables and other obligations from Subsidiaries, other Affiliates, officers, employees
or directors of such Person plus (iii) the cost of treasury shares and the book value of all assets that should be classified
as intangibles (without duplication of deductions in respect of items already deducted in arriving at surplus and retained earnings)
but in any event including goodwill, minority interests, research and development costs, trademarks, trade names, copyrights, patents
and franchises, unamortized debt discount and expense, all reserves and any write-up in the book value of assets resulting from
a revaluation thereof subsequent to December 31, 2013.
“Taxes”
means any and all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges
imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.
“Tier I Eligible
Receivables” means, on any date, all Eligible Receivables that are: (a) owed by account debtors which are Investment
Grade, (b) Credit Insured Receivables, (c) fully supported by a letter for credit issued by a financial institution which
is Investment Grade or any other financial institution acceptable to the Required Banks or (d) otherwise approved by the Required
Banks as “Tier I Eligible Receivables”.
“Tier II Eligible
Receivables” means, on any date, all Eligible Receivables that are not Tier I Eligible Receivables (including, without
limitation, any portion of Eligible Receivables which, but for such amount being in excess of the applicable credit insurance limits,
would be Tier I Eligible Receivables), provided, that the aggregate amount of Tier II Eligible Receivables that are not
Credit Insured Receivables, owing from any one account debtor (and its Affiliates) included in the Borrowing Base at any time shall
not exceed $1,500,000 (per account debtor (and its Affiliates)), unless otherwise approved by the Required Banks, provided,
further, that the aggregate amount of Tier II Eligible Receivables included in the Borrowing Base at any time shall not
exceed $3,500,000 (after giving effect to the applicable advance rate), unless otherwise approved by the Required Banks.
“Total Liabilities”
means, as at any date, the sum, for the Company (determined without duplication in accordance with GAAP), of the following: (a) all
Indebtedness (including obligations of the Company and its consolidated Subsidiaries in respect of letters of credit or similar
instruments (whether drawn or undrawn) issued or accepted for account of such Person) and (b) all other liabilities of the
Company and its consolidated Subsidiaries that should be classified as liabilities on a balance sheet, including all reserves (other
than general contingency reserves), but excluding all deferred taxes and other deferred items.
“Type”
has the meaning assigned to such term in Section 1.03 hereof.
“UCC”
means the Uniform Commercial Code as adopted in the State of New York.
“UCP”
means the Uniform Customs and Practice for Documentary Credits (2007 Revision), International Chamber of Commerce Publication No.
600, as the same may be amended from time to time.
“U.S. Dollar
Equivalent” means, at any time, (a) as to any amount denominated in Dollars, the amount thereof at such
time and (b) as to any amount denominated in any other Permitted Currency, the equivalent amount in Dollars as determined by the
Company at such time on the basis of the Spot Rate for the purchase of Dollars with such Permitted Currency on the most recent
date of computation thereof.
1.02 Accounting
Terms and Determinations.
(a) GAAP
Consistently Applied. All calculations made for the purposes of determining compliance with this Agreement shall (except as
otherwise expressly provided herein) be made by application of GAAP. Except as otherwise expressly provided herein, all terms of
an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if
the Company notifies the Agent that the Company requests an amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the operation of such provision, regardless of whether
any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted
on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall
have been withdrawn or such provision amended in accordance herewith.
(b) No
Change to Fiscal Year. To enable the ready and consistent determination of compliance with the covenants set forth in Section 8
hereof, the Company will not change the last day of its fiscal year from December 31 of each year, or the last days of the first
three fiscal quarters in each of its fiscal years from March 31, June 30 and September 30 of each year, respectively.
(c) Financial
Covenants Determined on a Consolidated Basis. Any and all financial information delivered pursuant to Section 8.01(a)
and (b) shall be prepared on a consolidated basis for the Company and its Subsidiaries except as otherwise specifically required
thereby. Any and all calculations made hereunder for purposes of determining compliance with the financial covenants set forth
in Sections 8.09 through 8.11 shall be on a consolidated basis for the Company and its consolidated Subsidiaries.
(d) Terms
Generally. 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 (a) any definition of or reference to any agreement, instrument or other
document herein 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 other modifications set forth therein or
herein); (b) any reference herein to any Person shall be construed to include such Person’s permitted successors and assigns;
(c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed
to refer to this Agreement in its entirety and not to any particular provision hereof; (d) all references herein to Sections, Exhibits
and Schedules shall be construed to refer to Sections of, and Exhibits and Schedules to, this Agreement; (e) reference herein to
any Law or regulation shall be construed to include any amendment, replacement or other modification thereto; and (f) terms
that are used herein, defined in the UCC and not otherwise defined herein shall have the meanings provided for in the UCC.
1.03 Types
of Loans. Loans hereunder are distinguished by “Type”. The “Type” of a Loan refers to whether such
Loan is a Base Rate Loan or a Eurodollar Loan, each of which constitutes a Type.
Section
2.
Revolving Loan Line Portions, Loans, Notes and Prepayments.
2.01 Loans.
(a) Revolving
Loans. Each Bank severally agrees, on an UNCOMMITTED AND ABSOLUTELY DISCRETIONARY basis, on the terms and conditions of this
Agreement, to consider requests to make loans to the Company in Dollars during the Availability Period in an aggregate principal
amount at any one time outstanding up to but not exceeding the amount of such Bank’s Revolving Loan Line Portion as in effect
from time to time; provided that the aggregate amount of all Credit Exposure at any one time outstanding shall not exceed
the lesser of (x) the aggregate Revolving Loan Line Portions as in effect from time to time and (y) the Borrowing Base. Subject
to the terms and conditions of this Agreement, during the Availability Period the Company may borrow, repay and reborrow under
the Revolving Loan Line Portions by means of Base Rate Loans and Eurodollar Loans and may Convert one Type of Loan into Loans of
another Type (as provided in Section 2.10 hereof) or Continue Loans of one Type as Loans of the same Type (as provided in
Section 2.10 hereof), provided that no more than ten separate Interest Periods in respect of Eurodollar Loans may be outstanding
at any one time.
(b) NO
BANK SHALL HAVE ANY COMMITMENT OR OBLIGATION TO MAKE ANY REVOLVING LOAN HEREUNDER UNLESS AND UNTIL SUCH BANK AFFIRMATIVELY COMMITS
OR IS DEEMED TO HAVE COMMITTED UNDER SECTION 4.06(b) TO SUCH REQUESTED FUNDING TRANSACTION. NOTHING CONTAINED HEREIN SHALL OTHERWISE
COMMIT OR OBLIGATE ANY BANK, OR BE INTERPRETED AS A PROMISE OR COMMITMENT BY ANY BANK TO MAKE OR ELECT TO MAKE ANY SUCH REVOLVING
LOAN UNLESS AND UNTIL SUCH BANK AFFIRMATIVELY COMMITS OR IS DEEMED TO HAVE COMMITTED UNDER SECTION 4.06(b) TO SUCH REQUESTED FUNDING
TRANSACTION.
(c) Intentionally
omitted.
(d) Intentionally
omitted.
2.02 Borrowings.
The Company shall give the Agent notice of each borrowing hereunder pursuant to a Borrowing Request substantially in the form of
Exhibit I hereto as provided in Section 4.05 hereof, provided, however, notwithstanding Section 11.02(b)
hereof, an authorized officer of the Company may deliver to the Agent an unsigned Borrowing Request by email to fm.am.SyndicatedLoans@rabobank.com
(or such other email as the Agent may direct in writing) so long as (i) it has been confirmed promptly by Sandra Kahn (or another
authorized officer) by phone and (ii) the Company delivers to the Agent a duly signed copy thereof within five (5) Business Days
of the date such email is delivered to the Agent, provided, that without limiting the Company’s obligations under clause
(ii) above, if the signed copy shall not be received, each of the Agent and the Banks shall be authorized to rely on the unsigned
request (with the same force and effect as a signed request). The Agent shall promptly notify the Banks (or at any time after the
Conversion to Approving Banks Funding Date, each Approving Bank) of the receipt of each Borrowing Request (including, without limitation,
any unsigned request confirmed by phone) received hereunder on the date of its effective receipt of the same (including, receipt
by email and phone confirmed). Unless the Agent shall have received a written notice from one or more Declining Banks pursuant
to Section 2.12 prior to 12:00 p.m. (New York City time), one Business Day prior to the Agent’s receipt
of any Borrowing Request for a Revolving Loan (in which event Section 2.12 shall be applicable), each of the Banks
shall be obligated, regardless of whether it has affirmatively agreed to fund its Revolving Loan Line Portion Percentage of the
related Revolving Loan, to make the amount of its Revolving Loan Line Portion Percentage of such borrowing available to the Agent
for the account of the Company by depositing the same, in immediately available funds, at an account maintained by the Agent not
later than 2:00 p.m., New York time on the date specified for the applicable borrowing. The amount so received by the Agent shall,
subject to the terms and conditions of this Agreement, be made available to the Company, by depositing the same, in immediately
available funds, in an account of the Company designated by the Company. If any Bank provides the Agent with a Declining Bank Notice
(pursuant to the terms hereof), the Agent shall promptly notify the Borrower that one or more of the Banks have elected not to
fund further borrowings.
2.03 Letters
of Credit. Subject to the terms and conditions of this Agreement, the Revolving Loan Line Portions may be utilized, upon the
request of the Company, in addition to the Revolving Loans provided for by Section 2.01 hereof, for the Issuing Banks to consider
the issuance, on an UNCOMMITTED AND ABSOLUTELY DISCRETIONARY basis, of letters of credit (collectively, “Letters of Credit”)
for account of the Company, provided that in no event shall: (i) the aggregate amount of all Credit Exposure exceed
the lesser of (x) the Borrowing Base plus, with respect to any commercial Letter of Credit to be issued to secure the purchase
price of Inventory, 80% of the cost of such Inventory that will be Eligible Inventory Ordered Under L/C once such Letter of Credit
is issued, and (y) the aggregate amount of the Revolving Loan Line Portions as in effect from time to time, (ii) the outstanding
aggregate amount of all Letter of Credit Liabilities exceed $35,000,000 (the “L/C Cap”), (iii) the outstanding
aggregate amount of all Letter of Credit Liabilities arising out of standby Letters of Credit exceed $3,500,000, and (iv) the expiration
date of any Letter of Credit extend beyond the Revolving Credit Line Portion Termination Date, provided, that Letters of
Credit with respect to which the Letter of Credit Liabilities in respect thereof are not in excess of $20,000,000 may be issued
that expire after the Revolving Credit Line Termination Date then in effect, but before the date that is ninety (90) days thereafter.
NEITHER ANY ISSUING BANK
NOR ANY BANK SHALL HAVE ANY COMMITMENT OR OBLIGATION TO PARTICIPATE IN ANY LETTER OF CREDIT AND/OR ISSUE ANY LETTER OF CREDIT UNLESS
AND UNTIL SUCH ISSUING BANK OR SUCH BANK AFFIRMATIVELY COMMITS OR IS DEEMED TO HAVE COMMITTED UNDER SECTION 2.03(u) TO SUCH REQUESTED
LETTER OF CREDIT. NOTHING CONTAINED HEREIN SHALL OTHERWISE COMMIT OR OBLIGATE ANY ISSUING BANK OR SUCH BANK, OR BE INTERPRETED
AS A PROMISE OR COMMITMENT BY ANY ISSUING BANK OR SUCH BANK TO ISSUE OR ELECT TO ISSUE ANY SUCH LETTER OF CREDIT OR PARTICIPATE
OR ELECT TO PARTICIPATE IN ANY SUCH LETTER OF CREDIT UNLESS AND UNTIL SUCH ISSUING BANK OR SUCH BANK AFFIRMATIVELY COMMITS OR IS
DEEMED TO HAVE COMMITTED UNDER SECTION 2.03(u) TO SUCH REQUESTED LETTER OF CREDIT.
(a) Letter
of Credit Request Procedure. The Company shall give the Agent at least two Business Days’ irrevocable prior notice (effective
upon receipt) specifying the Business Day (which shall be no later than 30 days preceding the Revolving Credit Line Termination
Date) each Letter of Credit is to be issued, the name of the applicable Issuing Bank, and the account party or parties therefor
and describing in reasonable detail the proposed terms of such Letter of Credit (including the beneficiary thereof) and the nature
of the transactions or obligations proposed to be supported thereby (including whether such Letter of Credit is to be a commercial
Letter of Credit or a standby Letter of Credit). Upon receipt by the applicable Issuing Bank of confirmation from the Agent in
writing that the requested Letter of Credit is permitted in accordance with the terms hereof, such Issuing Bank
shall, on the requested date, issue a Letter Credit for the account of the Company in accordance with this Agreement.
(b) Bank
Participation in Letters of Credit. Upon the issuance of each Letter of Credit, the applicable Issuing Bank shall be deemed
to have sold and transferred to each other Bank (including, subject to Section 2.12(b) hereof, each Declining Bank with respect
to such Letter of Credit, each such Bank, a “L/C Participant”) and each such L/C Participant shall be deemed irrevocably
and unconditionally to have purchased and received from the applicable Issuing Bank, without recourse or warranty, an undivided
interest and participation, to the extent of such L/C Participant’s Revolving Loan Line Portion Percentage of the Letter
of Credit Liabilities with respect to the Letter of Credit so issued.
(c) Drawings
on Letters of Credit; Reimbursement. Upon receipt from the beneficiary of any Letter of Credit of any demand for payment under
such Letter of Credit, the applicable Issuing Bank shall promptly notify the Company (through the Agent) of the amount to be paid
by such Issuing Bank as a result of such demand and the date on which payment is to be made by such Issuing Bank to such beneficiary
in respect of such demand. Notwithstanding the identity of the account party of any Letter of Credit, the Company hereby unconditionally
agrees to pay and reimburse (including, for the avoidance of doubt, with proceeds of a Loan as set forth in clause (d) below) the
Agent for the account of the applicable Issuing Bank for the amount of each demand for payment under such Letter of Credit made
in accordance with the terms thereof at or prior to the date on which payment is to be made by such Issuing Bank to the beneficiary
thereunder in accordance with the terms thereof, without presentment, demand, protest or other formalities of any kind.
(d) Borrowing
to Fund Reimbursement. Forthwith upon its receipt of a notice referred to in clause (c) of this Section 2.03,
the Company shall advise the Agent whether or not the Company intends to borrow hereunder to finance its obligation to reimburse
the applicable Issuing Bank for the amount of the related demand for payment and, if it does, submit a notice of such borrowing
as provided in Section 4.05 hereof. In the event that the Company fails to reimburse the applicable Issuing Bank for a payment
under a Letter of Credit by the date of such payment, the Agent shall give each L/C Participant prompt notice of the amount of
the demand for payment, specifying such L/C Participant’s Revolving Line Portion Percentage of the amount of the related
demand for payment.
(e) Funding
of Bank Participation in Letters of Credit. Each L/C Participant shall pay to the Agent for account of the applicable Issuing
Bank in Dollars and in immediately available funds, the amount of such L/C Participant’s Revolving Line Portion Percentage
of any payment under a Letter of Credit upon notice by such Issuing Bank (through the Agent) to such L/C Participant requesting
such payment and specifying such amount. Each such L/C Participant’s obligation to make such payment to the Agent for account
of the applicable Issuing Bank under this clause (e), and such Issuing Bank’s right to receive the same, shall be absolute
and unconditional and shall not be affected by any circumstance whatsoever, including the failure of any other L/C Participant
to make its payment under this clause (e), the financial condition of the Company (or any other account party), the existence
of any Default or the termination of any Revolving Loan Line Portion. Each such payment to the applicable Issuing Bank shall be
made without any offset, abatement, withholding or reduction whatsoever.
(f) Payments
Received by the Issuing Banks. Upon receipt by the applicable Issuing Bank from or for account of the Company of any payment
in respect of any Reimbursement Obligation or any such interest or other amount (including by way of setoff or application of proceeds
of any collateral security) such Issuing Bank shall promptly pay to the Agent for account of each L/C Participant that has funded
its participation in such Reimbursement Obligations, such L/C Participant’s Revolving Line Portion Percentage of such payment,
each such payment by such Issuing Bank to be made in the same money and funds in which received by such Issuing Bank. In the event
any payment received by the applicable Issuing Bank and so paid to the L/C Participants hereunder is rescinded or must otherwise
be returned by such Issuing Bank, each L/C Participant shall, upon the request of such Issuing Bank (through the Agent), repay
to such Issuing Bank (through the Agent) the amount of such payment paid to such L/C Participant, with interest at the rate specified
in clause (j) of this Section 2.03.
(g) (i)
Letter of Credit Fees. The Company shall pay to the Agent for the pro rata account of the L/C Participants (other than
Defaulting Banks) in accordance with their respective Revolving Loan Line Portion Percentages), the following fees:
(A) Commercial
Letters of Credit. For each commercial Letter of Credit, a letter of credit fee in an amount equal to 0.125% flat for each
90 day period or part thereof between the date of issuance and the expiration date thereof, on the face amount of such Letter of
Credit, payable in arrears on each Quarterly Date;
(B) Standby
Letters of Credit. For each standby Letter of Credit, a letter of credit fee at a rate per annum equal to 1.75% on the average
daily undrawn amount of such standby Letter of Credit during the period from the date of issuance through and including the date
of drawing of the entire amount or expiration or termination thereof, payable in arrears on each Quarterly Date;
provided that
such letter of credit commissions with respect to each Letter of Credit set forth in clauses (A) and (B) above shall be non-refundable
and shall not be less than $500, and
(ii) Letter
of Credit Fronting Fees. The Company shall pay to each Issuing Bank a fronting fee with respect to each Letter of Credit issued
by such Issuing Bank, which shall accrue at the rate or rates per annum separately agreed upon between the Company and the applicable
Issuing Bank on the daily amount of the Letter of Credit Liabilities (excluding any portion thereof attributable to unreimbursed
Reimbursement Obligations) during the period from and including the Closing Date to but excluding the later of the date of termination
of the Revolving Loan Line Portions and the date on which there ceases to be any Letter of Credit Liabilities with respect to such
Issuing Bank, such fronting fees accrued through and including each Quarterly Date to be due and payable on the tenth (10) Business
Day following such Quarterly Date, commencing on the first such date to occur after the Closing Date; provided that all such fees
shall be payable on the date on which the Revolving Loan Line Portions terminate and any such fees accruing after the date on which
the Revolving Loan Line Portions terminate shall be payable upon the expiration of the applicable Letter of Credit or, if earlier,
the date on which the Revolving Loan Line Portions terminate.
In addition, the Company shall pay to the
Agent for account of the applicable Issuing Bank, such Issuing Bank’s standard fees with respect to the amendment or negotiation
of any Letter of Credit or processing of drawings thereunder. Any other fees payable to an Issuing Bank pursuant to this paragraph
shall be payable within 10 Business Days after demand.
(h) Letter
of Credit Liability Accounting. At the request of any Bank, the applicable Issuing Bank shall deliver (through the Agent) to
such Bank a notice describing the aggregate amount of all Letters of Credit outstanding at the end of any month. Upon the request
of any Bank from time to time, the applicable Issuing Bank shall deliver any other information reasonably requested by such Bank
with respect to each Letter of Credit then outstanding.
(i) Conditions
to Issuance. (i) The issuance by the Issuing Banks of each Letter of Credit shall, in addition to the conditions precedent
set forth in Section 6 hereof, be subject to the conditions precedent that: (A) such Letter of Credit shall be denominated
in Dollars, shall state a maximum liability thereunder and shall be in such form, contain such terms and support such transactions
as shall be satisfactory to the applicable Issuing Bank consistent with its then current practices and procedures with respect
to letters of credit of the same type, and (B) the Company has executed and delivered such applications, agreements and other
instruments relating to such Letter of Credit as the applicable Issuing Bank has reasonably requested consistent with its then
current practices and procedures with respect to letters of credit of the same type, provided that in the event of any conflict
between any such application, agreement or other instrument and the provisions of this Agreement or any Security Document, the
provisions of this Agreement and the Security Documents shall control.
(i) Notwithstanding
anything herein to the contrary, no Issuing Bank is under any obligation to issue or provide any Letter of Credit (including any
renewal of an Auto-Renewal Letter of Credit) unless consented to by such Issuing Bank and the Agent and, in respect of clauses
(A) and (B)(x) below, no Letter of Credit shall be issued or renewed without the consent of all Banks, if (A) any order, judgment
or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain such Issuing Bank from issuing
or providing such Letter of Credit, or (B) any Requirement of Law applicable to such Issuing Bank or any request or directive (whether
or not having the force of Law) from any Governmental Authority with jurisdiction over such Issuing Bank shall (x) prohibit, or
request that such Issuing Bank refrain from, the issuance or provision of such type of Letter of Credit generally or such Letter
of Credit in particular, (y) impose upon such Issuing Bank with respect to such Letter of Credit any restriction, reserve or capital
requirement (in each case for which such Issuing Bank is not otherwise compensated hereunder) not in effect on the Closing Date
at a time when such Issuing Bank is not otherwise issuing letters of credit for the account of similarly situated customers without
additional compensation or (z) impose upon such Issuing Bank any unreimbursed loss, cost or expense (in each case for which such
Issuing Bank is not otherwise compensated hereunder) which was not applicable on the Closing Date and which such Issuing Bank in
good faith deems material to it.
(j) Default
Interest. To the extent that any Bank shall fail to pay any amount required to be paid pursuant to clause (e) or (f) of this
Section 2.03 on the due date therefor, such Bank shall pay interest to the applicable Issuing Bank (through the Agent) on such
amount from and including such due date to but excluding the date such payment is made at the Federal Funds Rate.
(k) Modifications
to Letters of Credit. The issuance by the Issuing Banks of any modification or supplement to any Letter of Credit that increases
the face amount thereof or extends the maturity date thereof shall be subject to the same conditions applicable under this Section
2.03 to the issuance of new Letters of Credit (including, without limitation, the confirmation by the Agent required under clause
(a) above), and no such modification or supplement shall be issued hereunder unless the respective Letter of Credit affected thereby
would have complied with such conditions had it originally been issued hereunder in such modified or supplemented form.
(l) Company
Indemnification. The Company hereby indemnifies and holds harmless each Bank and the Agent from and against any and all claims,
damages, losses, liabilities, costs or expenses that such Bank or the Agent may incur (or that may be claimed against such Bank
or the Agent by any Person whatsoever) by reason of or in connection with the execution and delivery or transfer of or payment
or refusal to pay by any Issuing Bank under any Letter of Credit; provided that the Company shall not be required to indemnify
any Issuing Bank or the Agent for any such claims, damages, losses, liabilities, costs or expenses to the extent, but only to the
extent, caused by (x) the willful misconduct or gross negligence of the applicable Issuing Bank in determining whether a request
presented under any Letter of Credit complied with the terms of such Letter of Credit or (y) the applicable Issuing Bank’s
failure to pay under any Letter of Credit after the presentation to it of a request strictly complying with the terms and conditions
of such Letter of Credit or (z) the requirement of any Bank to pay interest pursuant to Section 2.03(j) hereof. Nothing in this
Section 2.03 is intended to limit the other obligations of the Company, any Bank or the Agent under this Agreement.
(m) Obligations
Absolute. The Company’s Reimbursement Obligations shall be absolute, unconditional and irrevocable, and shall
be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective
of (i) any lack of validity or enforceability of any Letter of Credit, or any term or provision therein, (ii) any draft or other
document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein
being untrue or inaccurate in any respect, (iii) payment by the applicable Issuing Bank under a Letter of Credit against presentation
of a draft or other document that does not comply strictly with the terms of such Letter of Credit, (iv) the existence of any claim,
counterclaim, setoff, defense or other right that the Company may have at any time against any beneficiary or any transferee of
any Letter of Credit, the relevant Issuing Bank or any other Person, whether in connection with this Agreement, the transactions
contemplated hereby or by such Letter of Credit or any agreement or instrument relating thereto, or any unrelated transaction,
and (v) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions
of this Section, constitute a legal or equitable discharge of Company’s obligations hereunder. In addition to the forgoing,
the Company 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, that this assumption is not intended to, and shall not, preclude the Company’s pursuing such
rights and remedies as it may have against the beneficiary or transferee at law or under any other agreement.
(n) Exculpation.
Neither the Agent, the Banks nor the applicable Issuing Bank, nor any of their respective officers, directors, employees, attorneys
and agents shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter
of Credit by the applicable Issuing Bank or any payment or failure to make any payment thereunder (irrespective of any of the circumstances
referred to in the preceding clause (m)), or any error, omission, interruption, loss or delay in transmission or delivery of any
draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing
thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of the applicable
Issuing Bank; provided that the foregoing shall not be construed to excuse the applicable Issuing Bank from liability to the Company
to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the Company
to the extent permitted by applicable Law) suffered by the Company that are caused solely by the applicable Issuing Bank’s
gross negligence or willful misconduct when determining whether drafts and other documents presented under a Letter of Credit comply
with the terms thereof. The parties hereto expressly agree that:
(i) The
Issuing Banks may accept documents that appear on their face to be in substantial compliance with the terms of a Letter of Credit
without responsibility for further investigation, regardless of any notice or information to the contrary, and may make payment
upon presentation of documents that appear on their face to be in substantial compliance with the terms of such Letter of Credit;
(ii) The
Issuing Banks shall have the right, in their sole discretion, to decline to accept such documents and to make such payment if such
documents are not in strict compliance with the terms of such Letter of Credit; and
(iii) This
sentence shall establish the standard of care to be exercised by the Issuing Banks when determining whether drafts and other documents
presented under a Letter of Credit comply with the terms thereof (and the parties hereto hereby waive, to the extent permitted
by applicable Law, any standard of care inconsistent with the foregoing).
(o) Auto-Renewal
Letters of Credit. If the Company so requests in any applicable Letter of Credit request (in accordance with Section 2.03(a)
hereof), the applicable Issuing Bank may, in its sole and absolute discretion, agree to issue a Letter of Credit that has automatic
renewal provisions (each, an “Auto-Renewal Letter of Credit”), provided that any such Auto-Renewal Letter
of Credit must permit (i) the Company to prevent any such renewal by delivering written notice thereof to such Issuing Bank not
less than five (5) Business Days prior to the applicable Nonrenewal Notice Date (as defined below) and (ii) such Issuing Bank to
prevent any such renewal at least once during the then current term of such Letter of Credit by giving prior notice to the beneficiary
thereof not later than a specified date to be agreed upon at the time such Letter of Credit is issued, which shall occur prior
to the date that is thirty (30) days after the Revolving Credit Line Termination Date (the “Nonrenewal Notice Date”).
Unless otherwise directed in writing by the applicable Issuing Bank at least thirty (30) days prior to the Nonrenewal Notice Date,
the Company shall not be required to make a specific request to such Issuing Bank for any renewal of an Auto-Renewal Letter of
Credit, and such Issuing Bank shall not be required to provide prior notice to the Company, the Agent or any Bank of any pending
renewal of an Auto-Renewal Letter of Credit. Once an Auto-Renewal Letter of Credit has been issued, the Company and the Banks shall
be deemed to have authorized the applicable Issuing Bank to permit the renewal of such Letter of Credit at any time to a date not
later than ninety (90) days after the Revolving Credit Line Termination Date (subject to the provisions of Section 2.11(b)(ii)
hereof), provided, however, that such Issuing Bank shall have no obligation to permit any renewal of an Auto-Renewal Letter of
Credit if (A) such Issuing Bank has determined that it would have no obligation at such time to issue such Letter of Credit in
its renewed form under the terms hereof (by reason of the provisions of Section 2.03(i) or otherwise) or (B) after giving
effect to any such renewal, the expiration date of such Auto-Renewal Letter of Credit would occur more than ninety (90) days after
the Revolving Credit Line Termination Date or the next occurring Nonrenewal Notice Date of such Auto-Renewal Letter of Credit would
occur more than thirty (30) days after the Revolving Credit Line Termination Date; provided, further however, that the Issuing
Bank shall not permit any renewal of an Auto-Renewal Letter of Credit if it has received notice (in writing) on or before the date
that is three Business Days before the Nonrenewal Notice Date (1) from the Agent that the Required Banks have elected not to permit
such extension or (2) from the Agent, the Required Banks or the Company that one or more of the applicable conditions specified
in Sections 2.03(i) or Section 6.02 is not then satisfied or waived in accordance with Section 11.04. For
the avoidance of doubt, in no event shall the issuance or renewal of one or more Auto-Renewal Letters of Credit cause the cap in
the second proviso to the first sentence of Section 2.03 to be exceeded.
(p) Issuance
Caps. Notwithstanding anything herein to the contrary, no Issuing Bank shall be obligated to issue any Letter of Credit if,
after giving effect to the issuance of such Letter of Credit, the aggregate outstanding Letter of Credit Liabilities attributed
to Letter of Credit issued by such Issuing Bank exceeds such Issuing Bank’s Issuance Cap, provided that subject to the terms
and conditions hereof, each Issuing Bank may issue Letters of Credit on a discretionary basis during such time as the aggregate
outstanding Letter of Credit Liabilities attributed to Letters of Credit issued by such Issuing Bank exceeds such Issuing Bank’s
Issuance Cap, but the applicable Issuing Bank shall have no obligation to do so.
(q) Agent
Consent. If any Issuing Bank shall issue, extend or amend any Letter of Credit without obtaining prior consent of the Agent
(as provided in clause (a) above), such Letter of Credit (A) shall for all purposes be deemed to have been issued by such
Issuing Bank solely for its own account and risk and (B) shall not be considered a Letter of Credit outstanding under this Agreement
(and therefore shall not be included when calculating the Credit Exposure), and no Bank shall be deemed to have any participation
therein, effective as of the date of such issuance, amendment or extension, as the case may be, unless the Required Banks or the
Approving Banks, as the case may be, expressly consent thereto; provided, however, that to be considered a Letter of Credit outstanding
under this Agreement, the consent of all Banks or the Approving Banks, as the case may be, shall be required if any such issuance,
amendment or extension is not then permitted hereunder by reason of the provisions of this Section 2.03, provided further that
in the event that such a Letter of Credit shall be issued, it shall not result in a violation of Section 8.07 hereof or an Event
of Default solely as a result of such issuance.
(r) Successor
Issuing Banks. (i) Any Issuing Bank may resign as an Issuing Bank upon sixty (60) days prior written notice to the Agent, the
Banks and the Company, provided that (x) any such resignation shall be subject to the condition that the appointment of a successor
pursuant to this Section 2.03(r) shall have occurred and after giving effect thereto, the aggregate Issuance Caps shall not be
less than the L/C Cap and (y) any resignation by Rabobank shall only be permitted in connection with (A) Rabobank’s assignment
of all of its right, title and interest in all Loans, Letters of Credit and its other Loan Obligations to a Person that is not
an Affiliate of Rabobank, in accordance with Section 11.06 hereof and (B) its resignation as Agent. If any Issuing Bank shall provide
notice of its resignation, then the Company may appoint from among the Banks a successor issuer of Letters of Credit, whereupon,
if such Bank shall accept such appointment (in its sole discretion), such successor issuer shall succeed to the rights, powers
and duties of the resigning Issuing Bank under this Agreement and the other Basic Documents, and the term “Issuing Bank”
shall include such successor issuer of Letters of Credit effective upon such appointment. At the time such resignation shall become
effective, the Company shall pay to the resigning Issuing Bank all accrued and unpaid fees payable by it pursuant to Section 2.03(g).
The acceptance of any appointment as an Issuing Bank hereunder in accordance with this Agreement, shall be evidenced by an agreement
entered into by such successor issuer of Letters of Credit, in a form satisfactory to the Company and the Agent and, from and after
the effective date of such agreement, such successor issuer of Letters of Credit shall become an “Issuing Bank” hereunder.
After the resignation of any Issuing Bank hereunder, the resigning Issuing Bank shall remain a party hereto and shall continue
to have all the rights and obligations of an Issuing Bank under this Agreement and the other Basic Documents with respect to Letters
of Credit issued by it prior to such resignation, but shall not be required to issue additional Letters of Credit. In connection
with any resignation pursuant to this Section 2.03(r), the Company, the resigning Issuing Bank and the successor issuer of Letters
of Credit shall arrange to have any outstanding Letters of Credit issued or provided by the resigning Issuing Bank replaced with
Letters of Credit issued or provided by the successor issuer of Letters of Credit. After any resigning Issuing Bank’s resignation
as an Issuing Bank, the provisions of this Agreement relating to such Issuing Bank shall inure to its benefit as to any actions
taken or omitted to be taken by it (A) while it was an Issuing Bank under this Agreement or (B) at any time with respect to Letters
of Credit issued by it.
(ii) To
the extent that there are, at the time of any resignation as set forth in clause (i) above, any outstanding Letters of Credit,
nothing herein shall be deemed to impact or impair any rights and obligations of any of the parties hereto with respect to such
outstanding Letters of Credit (including, without limitation, any obligations related to the payment of fees or the reimbursement
or funding of amounts drawn), except that the Company, the resigning Issuing Bank and the successor issuer of Letters of Credit
shall have the additional obligations regarding outstanding Letters of Credit described in clause (i) above.
(s) UCP;
ISP. Each Letter of Credit (other than each standby Letter of Credit), except as otherwise herein or therein expressly stated,
is subject to the UCP and to the extent not inconsistent therewith, shall also be subject to the Uniform Commercial Code of the
State of New York, as in effect from time to time. Each standby Letter of Credit, except as otherwise herein or therein expressly
stated, is subject to ISP and to the extent not inconsistent therewith, shall also be subject to the Uniform Commercial Code of
the State of New York, as in effect from time to time.
(t) Cash
Collateral. Upon demand by any Bank for the repayment in full of its Loans pursuant to Section 3.01 hereof, the Company shall,
upon expiration of the applicable Demand Bank Period (or immediately upon a demand by the Required Lenders), Cash Collateralize
any outstanding Letter of Credit requested by such Bank (or Required Lenders) or the Agent in an amount equal to 103% of the undrawn
and unexpired face amount of each such outstanding Letter of Credit unless (other than in respect of a demand by the Required Lenders)
prior to the expiration of such applicable Demand Bank Period, an assignment of such Demand Bank’s Loan Obligations pursuant
to Section 3.01(b) shall have been consummated, provided, that in the case of a Demand Bank that is an Issuing Bank, (i)
such assignment shall include all of such Issuing Bank’s rights and obligations of an Issuing Bank, (ii) any outstanding
Letters of Credit issued or provided by such Issuing Bank shall have been replaced with Letters of Credit issued or provided by
such assignee and (iii) the provisions of this Agreement relating to such Issuing Bank shall inure to its benefit as to any actions
taken or omitted to be taken by it (x) while it was an Issuing Bank under this Agreement or (x) at any time with respect to Letters
of Credit issued by it.
(u) Notice
of Disapproval. Unless a Bank has provided the Agent with a written notice prior to 12:00 p.m. (New York City time) one Business
Day prior to the day such Letter of Credit is to be issued, extended or amended that such Bank does not approve further issuances
of Letters of Credit, if an Issuing Bank elects in its sole discretion to issue, extend or amend a Letter of Credit pursuant to
a Letter of Credit request, each Bank will be deemed to have approved such requested issuance, extension or amendment of such Letter
of Credit. No Letter of Credit will be issued, extended or increased if, prior to 12:00 p.m. (New York City time) on the Business
Day immediately preceding the proposed issuance, extension or increase date, as applicable, of such Letter of Credit, the Agent
has received a Declining Bank Notice in accordance with Section 2.7. If the Agent does receive a Declining Bank Notice on a timely
basis, the Agent shall notify the Company and such Issuing Bank by 12:00 p.m. (New York City time) on the proposed issuance, extension
or increase date, as applicable, and the proposed Letter of Credit will not be issued, extended or increased unless one or more
of the Banks have elected to become Approving Banks thereby triggering the Conversion to Approving Banks Funding Date. On and after
the Conversion to Approving Banks Funding Date, if the Approving Banks elect to issue, extend or increase the Letter of Credit
notwithstanding the Agent’s receipt of a Declining Bank Notice, the applicable Issuing Bank shall (on a pro rata basis among
the Approving Banks) issue a Letter of Credit in the full amount or extend or increase such Letter of Credit upon such requested
terms.
2.04 Intentionally
Omitted.
2.05 Changes
of the Revolving Loan Line Portions.
(a) Revolving
Credit Line Termination Date. The Revolving Loan Line Portions shall be automatically reduced to zero on the Revolving Credit
Line Termination Date.
(b) Optional
Termination. The Company has the right at any time or from time to time (i) subject to the repayment in full of any Loans and
Reimbursement Obligations outstanding and so long as each issued Letter of Credit has expired, terminated or been fully Cash Collateralized
in the manner set forth in Section 2.11(b)(ii) hereof, to terminate the Revolving Loan Line Portions and (ii) to reduce the unused
amount of the Revolving Loan Line Portions (for which purpose use of the Revolving Loan Line Portions shall be deemed to include
the aggregate amount of Letter of Credit Liabilities); provided that (w) the Company shall give notice of each such
termination or reduction as provided in Section 4.05 hereof, (x) each partial reduction shall be in an amount equal to
$10,000,000 (or an integral multiple of $10,000,000 in excess thereof), (y) each such partial reduction shall be applied pro rata
to reduce the Revolving Loan Line Portion of each Bank and (z) if the Revolving Loan Line Portion shall be reduced to an amount
less than the L/C Cap, the L/C Cap shall be automatically reduced to the amount of the reduced Revolving Loan Line Portions.
(c) No
Reinstatement. The Revolving Loan Line Portions once terminated or reduced may not be reinstated.
2.06 Intentionally
omitted.
2.07 Lending
Offices. The Loans of each Type made by each Bank shall be made and maintained at such Bank’s Applicable Lending Office
for Loans of such Type.
2.08 Several
Obligations; Remedies Independent. The failure of any Bank to make any Loan or other extension of credit to be made by it on
the date specified therefor shall not relieve any other Bank of its obligation to make its Loan or other extension of credit on
such date and no Bank has any obligation to the Agent or any other Bank for the failure by any such other Bank to make any Loan
or other extension of credit required to be made by such other Bank. The amounts payable by the Company at any time hereunder and
under the Notes to each Bank shall be a separate and independent debt and each Bank shall be entitled to protect and enforce its
rights arising out of this Agreement and the Notes, and it shall not be necessary for any other Bank or the Agent to consent to,
or be joined as an additional party in, any proceedings for such purposes.
2.09 Evidence
of Indebtedness.
(a) Maintenance
of Loan Accounts by Banks. Each Bank shall maintain in accordance with its usual practice an account or accounts evidencing
the indebtedness of the Company to such Bank resulting from each Loan made by such Bank, including the amounts of principal and
interest payable and paid to such Bank from time to time hereunder.
(b) Maintenance
of Loan Accounts by the Agent. The Agent shall maintain accounts in which it shall record: (i) the amount of each Loan made
hereunder, the Type thereof and the Interest Period applicable thereto; (ii) the amount of any principal or interest due and payable
or to become due and payable from the Company to each Bank hereunder; and (iii) the amount of any sum received by the Agent hereunder
for the account of the Banks and each Bank’s share thereof.
(c) Effect
of Entries. The entries made in the accounts maintained pursuant to paragraph (a) or (b) of this Section shall be prima facie
evidence of the existence and amounts of the obligations recorded therein (absent manifest error); provided that the failure of
any Bank or the Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Company
to repay the Loans in accordance with the terms of this Agreement.
(d) Promissory
Notes. Any Bank may request that Loans made by it be evidenced by a promissory note substantially in the form of Exhibit A
hereto. In such event, the Company shall prepare, execute and deliver to such Bank a promissory note payable to the order of such
Bank (or, if requested by such Bank, to such Bank and its registered assigns) and in a form approved by the Agent. Thereafter,
the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section
11.05 be represented by one or more promissory notes in such form payable to the order of the payee named therein (or, if such
promissory note is a registered note, to such payee and its registered assigns).
2.10 Optional
Prepayments and Conversions or Continuations of Loans. Subject to Section 4.04 hereof, the Company has the right to prepay
Loans, or to Convert Loans of one Type into Loans of another Type or Continue Loans of one Type as Loans of the same Type, at any
time or from time to time, in whole or in part, without premium or penalty, except as may be required by Section 5 hereof, provided
that: (a) the Company shall give the Agent notice of each such prepayment, Conversion or Continuation pursuant to a Notice of Prepayment,
Conversion or Continuation substantially in the form of Exhibit J hereto and as provided in Section 4.05 hereof (and,
upon the date specified in any such notice of prepayment, the amount to be prepaid shall become due and payable hereunder); provided,
however, notwithstanding Section 11.02(b) hereof, an authorized officer of the Company may deliver to the Agent an
unsigned Notice of Prepayment, Conversion or Continuation by email to fm.am.SyndicatedLoans@rabobank.com (or such other
email as the Agent may direct in writing) so long as the Company delivers to the Agent a signed copy thereof relating to such notice
within five (5) Business Days of the date such email is delivered to the Agent, provided, that without limiting the Company’s
obligations above, if the signed copy shall not be received, each of the Agent and the Banks shall be authorized to rely on the
unsigned notice (with the same force and effect as a signed notice); and (b) a Eurodollar Loan may be prepaid or Converted
only on the last day of an Interest Period for such Loan. Notwithstanding the foregoing, and without limiting the rights and remedies
of the Banks under Section 9 hereof, in the event that any Event of Default exists or a demand for payment of and Cash Collateral
(if applicable) for any Loan Obligations by the Required Banks shall have been made, the Agent may (and at the request of the Required
Banks or the demanding Bank, if applicable, shall) suspend the right of the Company to Convert any Loan into a Eurodollar Loan,
or to Continue any Loan as a Eurodollar Loan, in which event all Eurodollar Loans shall be Converted (on the last day(s) of the
respective Interest Periods therefor) to Base Rate Loans.
2.11 Mandatory
Prepayments.
(a) Borrowing
Base. Until the Revolving Credit Line Termination Date, the Company shall from time to time prepay the Loans (and/or provide
cover for Letter of Credit Liabilities as specified in clause (b) below) in such amounts as shall be necessary so that at
all times the aggregate outstanding amount of the Credit Exposure shall not exceed the lesser of the Borrowing Base and the aggregate
amount of the Revolving Loan Line Portions, such amount to be applied to Revolving Loans outstanding, subject to the terms of Section
2.3 of the Intercreditor Agreement, provided, that if after giving effect to Section 2.3 of the Intercreditor Agreement,
a deficiency shall continue to exist, an Event of Default under Section 9.01(a) hereof shall occur.
(b) Cover
for Letter of Credit Liabilities. (i) In the event that the Company shall be required pursuant to this Section 2.11 to
provide cover for Letter of Credit Liabilities, the Company shall effect the same by depositing Cash Collateral with the Agent
in an amount equal to the required cover amount, which funds shall be retained by the Agent in the Collateral Account (as collateral
security in the first instance for the Letter of Credit Liabilities) until such time as the relevant Letters of Credit have been
terminated and all of the Letter of Credit Liabilities in respect thereof paid in full or such time as such funds are no longer
required pursuant to Section 2.11(a) hereof; provided that no amounts so held shall be released if an Event of Default then exists
or the Required Banks shall have demanded payment of and Cash Collateral (if applicable) for any Loan Obligations.
(i) The
Company shall provide cover for each Letter of Credit with an expiry date after the Revolving Credit Line Termination Date by depositing
Cash Collateral with the Agent on or prior to the date that is five (5) Business Days prior to the Revolving Credit Line Termination
Date in an amount equal to 103% of the face amount of each such Letter of Credit which funds shall be retained by the Agent in
the Collateral Account (as collateral security in the first instance for the Letter of Credit Liabilities) until such time as the
relevant Letters of Credit have been terminated and all of the Letter of Credit Liabilities in respect thereof paid in full.
2.12 The
Election of Approving Banks to Continue Funding and Issuing Letters of Credit. (a) If on any date one or more Banks provides
the Agent with, and the Agent has actually received, a written notice in the form of Exhibit N (a “Declining Bank Notice”)
indicating that for reasons other than an Event of Default such Bank or Banks have elected not to fund any additional Revolving
Loans, to approve the issuance of additional Letters of Credit or to approve the extension or increase of any existing Letter of
Credit (in any such event, such Bank or Banks to be referred to herein as a “Declining Bank” or “Declining Banks”),
the Agent shall promptly distribute to the Company and the Banks other than the Declining Banks a written notice of such Declining
Banks. Any Declining Bank Notice received by the Agent prior to 12:00 p.m. (New York City time) on any Business Day from any Declining
Bank shall be effective with respect to such Declining Bank on the immediately succeeding Business Day and such Declining Bank
shall not be required to (i) fund any Revolving Loans that are made pursuant to Borrowing Requests received by the Agent on or
after such next Business Day, or (ii) issue or participate in any Letter of Credit issued, extended or amended on or after such
next Business Day. On and after the Business Day following receipt of any Declining Bank Notice by the Agent, if the Bank or Banks
which are not the Declining Banks desire, in their full and absolute discretion, they may (on a pro rata basis among the Banks
that have elected to continue funding in accordance with their Revolving Loan Line Portion Percentages thereof) make the full amount
or any part of any Revolving Loan requested on or after such date or approve the issuance of, or extension or increase to, Letters
of Credit requested on or after such date as applicable, irrespective of the Declining Banks’ disapproval (in such case,
the Banks that provide written notice in the form of Exhibit O to the Agent of their election to continue funding or approve
such issuance of, or extension or increase to, Letters of Credit shall be referred to as the “Approving Banks” and
any Bank which does not provide such notice shall be deemed to be a Declining Bank); provided that no Bank’s Revolving Loan
Line Portion shall be exceeded without its written consent. In such event, from the Business Day following receipt of any Declining
Bank Notice by the Agent (each, a “Conversion to Approving Banks Funding Date”) forward all subsequent Revolving Loans
and issuances of Letters of Credit or amendments to Letters of Credit that increase the amount or extend the expiration date and
participations in such Letters of Credit, shall be made unilaterally by the Approving Banks and no Letter of Credit thereafter
issued or amended to increase the amount or extend the expiration date, or Revolving Loans thereafter made shall be participated
in by the Declining Banks.
(a) Notwithstanding
any other provision of this Section 2.12, in the event that a Letter of Credit is issued or amended hereunder prior
to a Conversion to Approving Banks Funding Date and a Revolving Loan is required to be made in respect of such Letter of Credit
on or after a Conversion to Approving Banks Funding Date pursuant to Section 2.03(d), each of the Declining Banks who had
originally purchased a participation in such Letter of Credit pursuant to Section 2.03(b) shall be required to fund,
on a pro rata basis based upon its Revolving Loan Line Portion Percentage of participation in the related Letter of Credit
on the issuance, extension or increase date of such Letter of Credit, its portion of such Revolving Loan notwithstanding that such
Revolving Loan is being made after a Conversion to Approving Banks Funding Date and this Section 2.12 shall survive
any Declining Banks’ termination of its obligations under this Agreement so as to permit enforcement of this obligation as
against such Declining Bank.
(b) Hedging
Obligations owing to a Declining Bank or its Affiliates arising from transactions entered into after it becomes a Declining Bank,
shall be excluded from “Hedging Obligations” for the purpose of Section 4.08.
Section
3.
Payments of Principal
and Interest.
3.01 Repayment
of Loans.
(a) Maturity.
The Company hereby promises to pay to the Agent for account of each Bank the entire outstanding principal amount of the Loans,
and each Loan shall mature and be due and payable on the Revolving Credit Line Termination Date, provided, that notwithstanding
the foregoing, the Company hereby promises to pay to the Agent for account of each Demand Bank (upon its DEMAND), the entire outstanding
principal amount of such Demand Bank’s Loans, prior to the expiration of the applicable Demand Bank Period (which, for the
avoidance of doubt, shall have commenced on the date of DEMAND for such payment by such Demand Bank), provided, further
if the Demand Banks shall at any time comprise the Required Banks, then the Company hereby promises to pay to the Agent for account
of each Bank immediately (upon their DEMAND), the entire outstanding principal amount of such Bank’s Loans.
(b) Demand
Bank. At any time during a Demand Bank Period in respect of a Bank, the Company may (so long as such Demand Bank Period remains
in effect), require such Demand Bank to assign all right, title and interest that it may have in, and its participations in, all
Loans, Letters of Credit and any other Loan Obligations to another Bank (if another Bank will consent to purchase such right, title
and interest and participations) or another Person in accordance with and subject to the terms of Section 11.06 of this Agreement,
if such Person can be found by the Company, for a purchase price equal to 100% of the principal amount of such Obligations plus
the amount of any interest and fees accrued and owing to such Demand Bank as of the date of such assignment plus any other amounts
payable under this Agreement (including, without limitation, under Section 5.04). Upon the occurrence of an assignment of
a Demand Bank’s Loans, Letter of Credit Liabilities and other Loan Obligations pursuant to this Section 3.01(b), the demand
by such Demand Bank under Section 3.01(a) and the applicable Demand Bank Period shall be deemed not to have occurred and of no
further force and effect.
(c) Demand
Bank Period. Upon and after the date of demand for payment of their Loan Obligations by Banks comprising the Required Banks,
(i) any Demand Bank Period in effect before such date shall immediately and automatically terminate and (ii) no Demand Bank Period
shall commence on or after such date.
3.02 Interest.
(a) Revolving
Loans. The Company hereby promises to pay to the Agent for account of each Bank interest on the unpaid principal amount of
each Revolving Loan made by such Bank for the period from and including the date of such Revolving Loan to but excluding the date
such Revolving Loan shall be paid in full, at the following rates per annum:
(i) during
such periods as such Revolving Loan is a Base Rate Loan, the Base Rate (as in effect from time to time) plus the Applicable
Margin; and
(ii) during
such periods as such Revolving Loan is a Eurodollar Loan, for each Interest Period relating thereto, the Eurodollar Rate for such
Revolving Loan for such Interest Period plus the Applicable Margin.
(b) Intentionally
omitted.
(c) Post
Default Interest. Notwithstanding the foregoing, the Company hereby promises to pay to the Agent, at the election of the Required
Banks, for account of each Bank interest at the applicable Post-Default Rate on any principal of any Loan, on any Reimbursement
Obligation and on any other amount payable by the Company hereunder or under the Notes that shall not be paid in full when due
(whether at stated maturity, by acceleration, by mandatory prepayment or otherwise), for the period from and including the due
date thereof to but excluding the date the same is paid in full.
(d) Payment
of Interest. Accrued interest on each Loan shall be payable (i) in the case of a Base Rate Loan, monthly on the last
Business Day of each month, (ii) in the case of a Eurodollar Loan, on the last day of each Interest Period therefor, and (iii)
in the case of any Loan, upon the payment or prepayment thereof or the Conversion of such Loan to a Loan of another Type (but only
on the principal amount so paid, prepaid or Converted), except that interest payable at the Post-Default Rate shall be payable
from time to time on demand. Promptly after the determination of any interest rate provided for herein or any change therein, the
Agent shall give notice thereof to the Banks to which such interest is payable and to the Company.
Section
4.
Payments; Computations;
Etc.
4.01 Payments.
(a) Payments
Generally. Except to the extent otherwise provided herein, all payments of principal, interest, Reimbursement Obligations and
other amounts to be made by the Company under this Agreement and the other Basic Documents, and, except to the extent otherwise
provided therein, all payments to be made by the Obligors under any other Basic Document, shall be made in Dollars, in immediately
available funds, without deduction, set-off or counterclaim, to the Agent, not later than 1:00 p.m. New York time on the date
on which such payment shall become due (each such payment made after such time on such due date to be deemed to have been made
on the next succeeding Business Day). The Company shall, at the time of making each payment under this Agreement or any Note, for
account of any Bank specify to the Agent (which shall so notify the intended recipient(s) thereof) the Loans, Reimbursement Obligations
or other amounts payable by the Company hereunder to which such payment is to be applied (and in the event that the Company fails
to so specify, or if an Event of Default exists, or if the Required Banks shall have demanded payment of and Cash Collateral (if
applicable) for any Loan Obligations, the Agent may distribute such payment to the Banks for application in such manner as it,
subject to Section 4.03 hereof, may determine to be appropriate).
(b) Payments
to the Banks. Except as otherwise provided herein, each payment received by the Agent under this Agreement or any Note for
account of any Bank shall be paid by the Agent promptly to such Bank, in immediately available funds, for account of such Bank’s
Applicable Lending Office for the Loan or other obligation in respect of which such payment is made.
(c) Payments
on a Non-Business Day. If the due date of any payment under this Agreement or any Note would otherwise fall on a day that is
not a Business Day, such date shall be extended to the next succeeding Business Day, and interest shall be payable for any principal
so extended for the period of such extension.
4.02 Computations.
Interest on Loans, Reimbursement Obligations and all fees shall be computed on the basis of a year of 360 days and actual days
elapsed (including the first day but excluding the last day) occurring in the period for which payable.
4.03 Pro
Rata Treatment. Except to the extent otherwise provided herein: (a) each borrowing of Loans from and participation interests
in and Letters of Credit purchased by the Banks shall be made from the Banks (other than Declining Banks, subject to Section 2.12(b)),
and each payment of Letter of Credit fee under Section 2.03(g)(i) hereof shall be applied to the Banks (other than Declining Banks
in respect of the applicable Letter of Credit), pro rata according to the amounts of their respective Revolving Loan Line Portions;
(b) each payment or prepayment of principal of Loans by the Company shall be made for account of the Banks pro rata in accordance
with the respective unpaid principal amounts of the Loans held by them; and (c) each payment of interest on Loans by the Company
shall be made for account of the Banks pro rata in accordance with the amounts of interest on such Loans then due and payable to
the Banks.
4.04 Minimum
Amounts. Except for mandatory prepayments made pursuant to Section 2.11 hereof, each borrowing, Conversion and partial
prepayment of principal of Revolving Loans shall be in an amount at least equal to the following:
(i) $1,000,000
or multiples of $250,000 in excess thereof in the case of Eurodollar Loans, and
(ii) $250,000
or multiples of $50,000 in excess thereof in the case of Base Rate Loans;
(borrowings, Conversions or prepayments
of or into Loans of different Types or, in the case of Eurodollar Loans, having different Interest Periods at the same time hereunder
to be deemed separate borrowings, Conversions and prepayments for purposes of the foregoing, one for each Type or Interest Period).
4.05 Certain
Notices. Notices by the Company to the Agent of terminations or reductions of the Revolving Loan Line Portions, of borrowings,
Conversions, Continuations and optional prepayments of Loans, of Types of Loans and of the duration of Interest Periods shall be
irrevocable. All such notices shall be received by the Agent not later than 10:00 a.m. New York time on the number of Business
Days prior to the date of the relevant termination, reduction, borrowing, Conversion, Continuation or prepayment or the first day
of such Interest Period specified below, provided that any notice received after the time set forth above on any Business Day or
on any date other than a Business Day shall be deemed received on the next succeeding Business Day:
Notice | |
Number of Business Days Prior |
| |
|
Termination or reduction of the Revolving Loan Line Portions | |
Five |
| |
|
Borrowing or prepayment of, or Conversions into, Base Rate Loans | |
Same day |
| |
|
Borrowing or prepayment of, Conversions into, Continuations as, or duration of Interest Period for, Eurodollar Loans | |
Three |
Each such notice of termination or reduction
shall specify the amount of the Revolving Loan Line Portions to be terminated or reduced. Each such notice of borrowing, Conversion,
Continuation or optional prepayment shall specify the amount (subject to Section 4.04 hereof) and Type of each Loan to be
borrowed, Converted, Continued or prepaid and the date of borrowing, Conversion, Continuation or optional prepayment (which shall
be a Business Day). Each such notice of the duration of an Interest Period shall specify the Loans to which such Interest Period
is to relate. In the event that the Company fails to select the Type of Loan, or the duration of any Interest Period for any Eurodollar
Loan, within the time period and otherwise as provided in this Section 4.05, such Loan (if outstanding as a Eurodollar Loan)
will be automatically Converted into a Base Rate Loan on the last day of the then current Interest Period for such Loan or (if
outstanding as a Base Rate Loan) will remain as, or (if not then outstanding) will be made as, a Base Rate Loan.
4.06 Non-Receipt
of Funds by the Agent. (a) Unless the Agent has been notified by the Company prior to the date on which the Company is to make
payment to the Agent of a payment to the Agent for account of one or more of the Banks hereunder (such payment being herein called
the “Required Payment”), which notice shall be effective upon receipt, that the Company does not intend to make the
Required Payment to the Agent, the Agent may assume that the Required Payment has been made and may, in reliance upon such assumption
(but shall not be required to), make the amount thereof available to the applicable Banks on such date; and, if the Company has
not in fact made the Required Payment to the Agent, the applicable Banks shall, on demand, repay to the Agent the amount so made
available together with interest thereon in respect of each day during the period commencing on the date (the “Advance Date”)
such amount was so made available by the Agent until the date the Agent recovers such amount at a rate per annum equal to the Federal
Funds Rate for such day and, if such Banks shall fail promptly to make such payment, the Agent shall be entitled to recover such
amount, on demand, from the Company, together with interest as aforesaid, provided that if neither the applicable Banks nor the
Company shall return the Required Payment to the Agent within three Business Days of the Advance Date, then (x) the Company shall
be obligated retroactively to the Advance Date to pay interest in respect of the Required Payment at the Post Default Rate and
(y) the applicable Banks shall be obligated retroactively to the Advance Date to pay interest in respect of the Required Payment
at the Federal Funds Rate (and, in case the recipient(s) shall return the Required Payment to the Agent, without limiting the obligation
of the Company under Section 3.02 hereof to pay interest to such recipient(s) at the Post Default Rate in respect of the Required
Payment).
(b) Unless a Bank
has delivered to the Agent a Declining Bank Notice pursuant to and in accordance with Section 2.02 and 2.12 in respect of any Revolving
Loan, the Agent may assume that such Bank will make its Revolving Loan Line Portion of the requested Revolving Loan (such payment
being herein called the “Required Loan Payment”) available and may, in reliance upon such assumption (but shall not
be required to), make the amount thereof available to the Company on the requested borrowing date; and, if the Bank has not in
fact made such amount available to the Agent, the Company shall, on demand, repay to the Agent the Required Loan Payment so made
available together with interest thereon in respect of each day during the period commencing on the date (the “Loan Advance
Date”) such amount was so made available by the Agent until the date the Agent recovers such amount at a rate per annum equal
to the Federal Funds Rate for such day and, if the Company shall fail promptly to make such payment, the Agent shall be entitled
to recover such amount, on demand, from the Company, together with interest as aforesaid, provided that if neither the Company
nor the applicable Bank shall return the amount to the Agent within three Business Days of the Loan Advance Date, then (x) the
applicable Banks shall be obligated retroactively to the Loan Advance Date to pay interest in respect of the Required Loan Payment
at the Federal Funds Rate and (y) if such Bank’s Required Loan Payment is not made available to the Agent by such Bank within
five (5) Business Days of such Loan Advance Date, the Agent shall also be entitled to recover such amount for its own account with
interest thereon at the rate per annum applicable to Base Rate Loans, within five (5) Business Days of demand from the Company.
4.07 Sharing
of Payments, etc.
(a) Set
off. If an Event of Default exists or at any time after the Required Banks shall have demanded payment of and Cash Collateral
(if applicable) for any Loan Obligations, each Bank and each of their respective Affiliates are hereby authorized at any time and
from time to time, to the fullest extent permitted by Law and Section 10.14, to set off and apply any and all deposits (general
or special, time or demand, provisional or final) at any time held and other indebtedness or obligations at any time owing by such
Bank or any Affiliates to or for the credit or the account of any Obligor against any of and all the Obligations of any Obligor
now or hereafter existing under any Basic Document held by such Bank or Affiliate, irrespective of whether or not such Bank shall
have made any demand and although such Obligations may be unmatured. The rights of each Bank under this Section are in addition
to other rights and remedies (including other rights of setoff) which such Bank may have.
(b) Sharing
of Payments on Loan Obligations. If any Bank shall obtain from any Obligor payment of any Loan Obligation owing to it through
the exercise of any right of set-off, banker’s lien or counterclaim or similar right or otherwise (other than from the Agent
as provided herein but including as a result of the rights under Section 4.07(a)), and, as a result of such payment, such Bank
has received a greater percentage of the Loan Obligations due to such Bank than the percentage received by any other Bank, it shall
promptly purchase from such other Banks participations in (or, if and to the extent specified by such Bank, direct interests in)
the Loan Obligations owing to such other Banks in such amounts, and make such other adjustments from time to time as shall be equitable,
to the end that all the Banks shall share the benefit of such excess payment (net of any expenses that may be incurred by such
Bank in obtaining or preserving such excess payment) pro rata in accordance with the Loan Obligations owing to each of the Banks.
To such end all the Banks shall make appropriate adjustments among themselves (by the resale of participations sold or otherwise)
if such payment is rescinded or must otherwise be restored. The Company agrees that any Bank so purchasing such a participation
(or direct interest) may exercise all rights of set-off, banker’s lien, counterclaim or similar rights with respect to such
participation as fully as if such Bank were a direct holder of Loans or other amounts (as the case may be) owing to such Bank in
the amount of such participation.
(c) Sharing
of Benefits of Secured Claim. Nothing contained herein shall require any Bank to exercise any such right or shall affect the
right of any Bank to exercise, and retain the benefits of exercising, any such right with respect to any other indebtedness or
obligation of any Obligor. If, under any applicable bankruptcy, insolvency or other similar Law, any Bank receives a secured claim
in lieu of a set-off to which this Section 4.07 applies, such Bank shall, to the extent practicable, exercise its rights in
respect of such secured claim in a manner consistent with the rights of the Banks entitled under this Section 4.07 to share
in the benefits of any recovery on such secured claim..
4.08 Application
of Proceeds of Collateral and Subsidiary Guarantee. Subject to the terms of the Intercreditor Agreement, all amounts received
under the Subsidiary Guarantee and all proceeds received by the Agent from the sale or other liquidation of the Collateral when
an Event of Default exists and the Loan Obligations are unpaid, or at any time after the Required Banks shall have demanded payment
of and Cash Collateral (if applicable) for any Loan Obligations, shall first be applied as payment of the accrued and unpaid fees
of the Agent hereunder and then to all other unpaid or unreimbursed Obligations (including reasonable attorneys’ fees and
expenses) owing to the Agent in its capacity as Agent only and then any remaining amount of such proceeds shall be distributed:
(a) first,
to the Secured Parties, pro rata in accordance with the respective unpaid amounts of Loan Obligations (including, without limitation,
Cash Collateralization of Letters of Credit), until all the Loan Obligations have been paid and satisfied in full and in respect
of outstanding Letters of Credit, fully Cash Collateralized in accordance with Section 9.02;
(b) second,
to the Secured Parties, pro rata in accordance with the respective unpaid amounts of Hedging Obligations (other than Excluded Swap
Obligations), until all the Hedging Obligations (other than Excluded Swap Obligations) have been paid and satisfied in full or
Cash Collateralized;
(c) third,
to the Secured Parties, pro rata in accordance with the respective unpaid amounts of the Deposit Obligations, until all Deposit
Obligations have been paid and satisfied in full or Cash Collateralized; and
(d) fourth,
to the Secured Parties, pro rata in accordance with the respective unpaid amounts of the remaining Obligations (other than Excluded
Swap Obligations).
After all the Obligations (other than Excluded
Swap Obligations) have been paid and satisfied in full, all Revolving Loan Line Portions have terminated and all Letters of Credit
have expired, terminated or been Cash Collateralized as set forth above, any proceeds of Collateral shall be delivered to the Person
entitled thereto as directed by the Company or as otherwise determined by applicable Law or applicable court order.
4.09 Noncash
Proceeds. Notwithstanding anything contained herein to the contrary, if the Agent shall ever acquire any Collateral through
foreclosure or by a conveyance in lieu of foreclosure or by retaining any of the Collateral in satisfaction of all or part of the
Obligations or if any proceeds of Collateral received by the Agent to be distributed and shared pursuant to this Section are in
a form other than immediately available funds, the Agent shall not be required to remit any share thereof under the terms hereof
and the Secured Parties shall only be entitled to their undivided interests in the Collateral or noncash proceeds as determined
by Section 4.08. The Secured Parties shall receive the applicable portions (in accordance with the foregoing Section 4.08) of any
immediately available funds consisting of proceeds from such Collateral or proceeds of such noncash proceeds so acquired only if
and when received by the Agent in connection with the subsequent disposition thereof. While any Collateral or other property to
be shared pursuant to Section 4.08 is held by the Agent pursuant to this Section 4.09, the Agent shall hold such Collateral or
other property for the benefit of the Secured Parties and all matters relating to the management, operation, further disposition
or any other aspect of such Collateral or other property shall be resolved by the agreement of the Required Banks.
4.10 Return
of Proceeds. If at any time payment, in whole or in part, of any amount distributed by the Agent hereunder is rescinded or
must otherwise be restored or returned by the Agent as a preference, fraudulent conveyance, or otherwise under any bankruptcy,
insolvency, or similar Law, then each Person receiving any portion of such amount agrees, upon demand, to return the portion of
such amount it has received to the Agent together with a pro rata portion of any interest paid by or other charges imposed on the
Agent in connection with such rescinded or restored payment.
4.11 Notice
of Amount of Obligations. Prior to making any distribution under Section 4.08, the Agent shall request each Bank to provide
the Agent with a statement of the amounts of Hedging Obligations and Deposit Obligations then owed to such Bank and its Affiliates.
A Bank may provide such information to the Agent at any time and the Agent may also request such information at any time. If a
Bank does not provide the Agent a statement of the amount of any such Obligations within three (3) Business Days of the date requested,
the Agent may make distributions under Section 4.08 thereafter and the amount of Hedging Obligations and Deposit Obligations then
owed to such Bank and its Affiliates shall conclusively be deemed to be zero for purposes of such distributions. Neither the Bank
nor any of its Affiliates shall have a right to share in such distributions with respect to any Hedging Obligations or Deposit
Obligations owed to it. If a Bank shall thereafter provide the Agent a statement of the amount of the Hedging Obligations and Deposit
Obligations then owed to such Bank and its Affiliates, any distribution under Section 4.08 made after the notice is received by
the Agent shall take into account the amount of the Hedging Obligations and/or Deposit Obligations then owed. Banks and their Affiliates
that shall not have provided the statement (required under this Section 4.11) of the amount of owing Hedging Obligations or Deposit
Obligations shall not be entitled to share retroactively in any distribution made prior to the date when such statement was provided.
In furtherance of the provisions of Section 10, the Agent shall in all cases be fully protected in making distributions hereunder
in accordance with the statements of the Hedging Obligations and Deposit Obligations received from the Banks under this Section 4.11
(or lack thereof).
4.12 Defaulting
Banks.
(a) Intentionally
omitted.
(b) Anything
contained herein to the contrary notwithstanding, in the event that any Bank becomes a Defaulting Bank, then each Issuing Bank
may, in its sole discretion, require such Defaulting Bank to deposit Cash Collateral with the Agent in an aggregate amount equal
to such Defaulting Bank’s participations in any requested or outstanding Letters of Credit, and each Defaulting Bank hereby
grants a first priority security interest in such Cash Collateral in favor of the Agent, for the sole benefit of the applicable
Issuing Bank. In the event that such Defaulting Bank fails to deposit Cash Collateral as required hereby, the Company may, at any
time thereafter, upon five (5) Business Days prior written notice to such Defaulting Bank, require that such Defaulting Bank terminate
its Revolving Loan Line Portion and any obligations hereunder and under the other Basic Documents and transfer all of its Credit
Exposure and participations therein in accordance with Section 11.06 (subject to the prior written consent of such Banks,
the Agent and the Issuing Banks) to one or more of the existing Banks or to one or more new Banks, if such assignee Banks can be
found by the Company.
(c) Notwithstanding
any other provision in this Agreement to the contrary, if at any time a Bank becomes a Defaulting Bank, the following provisions
shall apply so long as such Bank is a Defaulting Bank:
(i) Intentionally
omitted.
(ii) With
respect to any Fronting Exposure of the Defaulting Bank (including, without limitation, any that exists at the time a Bank becomes
a Defaulting Bank or thereafter) (the “Defaulting Bank’s Exposure”):
(A) such
Defaulting Bank’s Exposure shall automatically be reallocated (without further action of any party) among the non-Defaulting
Banks (other than Declining Banks) in accordance with their respective Revolving Loan Line Portion Percentages (calculated without
regard to any Defaulting Bank’s Revolving Loan Line Portions) to the extent of each non-Defaulting Bank’s unused Revolving
Loan Line Portion, provided, that (x) the conditions set forth in Section 6.02 shall be satisfied at the time of such reallocation
(and, unless the Company shall have otherwise notified the Agent at such time, the Company shall be deemed to have represented
and warranted that such conditions are satisfied at such time) and (y) in no event shall any non-Defaulting Bank’s Credit
Exposure following such reallocation exceed such non-Defaulting Bank’s Revolving Loan Line Portion;
(B) if
the reallocation described in paragraph (A) above cannot, or can only partially, be effected, then the Company shall within one
(1) Business Day following notice by the Agent or the applicable Issuing Bank deliver to the Agent Cash Collateral for such Defaulting
Bank’s Revolving Loan Line Portion Percentage of the Letter of Credit Liabilities (after giving effect to any partial reallocation
pursuant to paragraph (A) above) as otherwise provided in this Agreement for so long as such Letter of Credit Liabilities are outstanding;
(C) if
the Company shall deliver to the Agent Cash Collateral for any portion of such Defaulting Bank’s participations in Letter
of Credit Liabilities pursuant to Section 4.12(b) or Section 4.12(c)(ii)(B) then the Company shall not be required
to pay any fees for the benefit of such Defaulting Bank pursuant to Section 2.03(g) of this Agreement with respect to the
portion of such Defaulting Bank’s Revolving Loan Line Portion Percentage of outstanding Letters of Credit equal to such Cash
Collateral during the period such Cash Collateral is held by the Agent;
(D) to
the extent the Defaulting Bank’s Exposure is reallocated to the non-Defaulting Banks pursuant to clause (A) above, the fees
payable to the Banks pursuant to Section 2.03 shall be adjusted in accordance with such non-Defaulting Banks’ Revolving Loan
Line Portion Percentages (disregarding the Revolving Loan Line Portions of any Defaulting Bank);
(E) if
any Defaulting Bank’s Exposure is not Cash Collateralized, reallocated or prepaid pursuant to this Section 4.12, then, without
prejudice to any rights or remedies of the Issuing Banks or any Bank hereunder, all fees payable to the Banks pursuant to Section
2.03(g) with respect to such Defaulting Bank’s Exposure that is not Cash Collateralized, reallocated or prepaid shall be
payable to the Issuing Banks until such Defaulting Bank’s Exposure is fully Cash Collateralized as set forth in this Section
4.12, reallocated and/or prepaid;
(F) no
Issuing Banks shall be required to issue, provide, amend or increase any Letter of Credit, unless it is satisfied in its sole discretion
that the related exposure will be 100% covered by the Revolving Loan Line Portions of the non-Defaulting Banks, and participating
interests in any such newly issued, provided or increased Letter of Credit shall be allocated among non-Defaulting Banks in a manner
consistent with Section 2.03(b) (and Defaulting Banks shall not participate therein);
(G) any
amount payable to such Defaulting Bank hereunder (whether on account of principal, interest, fees or otherwise) shall, in lieu
of being distributed to such Defaulting Bank, be retained by the Agent in a segregated account and subject to any applicable Requirements
of Law, and be applied:
(1) first,
to the payment of any amounts owing by such Defaulting Bank to the Agent hereunder,
(2) second,
to the payment pro rata of any amounts owing by such Defaulting Bank to the Issuing Banks hereunder,
(3) third,
to the extent not Cash Collateralized, to the payment pro rata to the Cash Collateralization, as set forth in this Section 4.12,
of any participating interest in any Letter of Credit in respect of which such Defaulting Bank has failed to fund Cash Collateral
for its portion thereof as required by this Agreement, pro rata among such Letters of Credit, as determined by the Agent, ,
(4) fourth,
as the Company may request, so long as no Default or Event of Default shall have occurred and be continuing and no demand for payment
of and Cash Collateral (if applicable) for any Loan Obligations shall have been made by the Required Banks, to the funding of any
portion of any Loan which such Defaulting Bank has failed to fund,
(5) fifth,
if so determined by the Agent or the Issuing Banks, held in such account as Cash Collateral for future funding obligations of such
Defaulting Bank under this Agreement,
(6) sixth,
to the payment of any amounts owing to the non-Defaulting Banks as a result of any judgment of a court of competent jurisdiction
obtained by any non-Defaulting Bank against such Defaulting Bank as a result of such Defaulting Bank’s breach of its obligations
under this Agreement,
(7) seventh,
so long as no Default or Event of Default shall have occurred and be continuing and no demand by the Required Banks for payment
of and Cash Collateral (if applicable) for any Loan Obligations shall have been made, to the payment of any amounts owing to the
Company as a result of any judgment of a court of competent jurisdiction obtained by the Company against such Defaulting Bank as
a result of such Defaulting Bank’s breach of its obligations under this Agreement, and
(8) eighth,
to such Defaulting Bank or as otherwise directed by a court of competent jurisdiction;
provided, however, that if
such payment is (x) a payment of the principal amount of any Loans or unreimbursed amount with respect to drawings or demands for
payment under Letters of Credit which such Defaulting Bank has not funded in accordance with its participation obligations hereunder
and (y) made at a time when the conditions set forth in Section 6.02 are satisfied, such payment shall be applied solely
to prepay the Loans of, and unreimbursed amounts with respect to drawings and demands under Letters of Credit owed to, all non-Defaulting
Banks pro rata prior to being applied to the prepayment of any Loans, or unreimbursed amounts with respect to such drawings owed
to, such Defaulting Bank.
(d) Each
Defaulting Bank shall indemnify the Company, the Agent, the Issuing Banks and each non-Defaulting Bank from and against any and
all loss, damage or expenses, including but not limited to reasonable attorneys’ fees and, in the case of the Agent, the
Issuing Banks, or any non-Defaulting Bank, funds (if any) advanced by the Agent, the Issuing Banks, or by any non-Defaulting Bank,
on account of such Defaulting Bank’s failure to timely fund its applicable Revolving Loan Line Portion Percentage of a Loan
or to otherwise perform its obligations under the Basic Documents.
(e) In
the event that the Agent, the Company and the Issuing Banks agree that a Defaulting Bank has adequately remedied all matters that
caused such Bank to be a Defaulting Bank, then the Fronting Exposure of the Banks shall be readjusted to reflect the inclusion
of such Bank’s Revolving Loan Line Portion and on such date such Bank shall purchase at par such of the Loans, Revolving
Loan Line Portions and/or Letter of Credit Liabilities, or participations therein of the other Banks as the Agent shall determine
may be necessary in order for such Bank to hold such Loans, Revolving Loan Line Portions and/or Loan Obligations in accordance
with its Revolving Loan Line Portion Percentage thereof.
(f) At
any time during a Defaulting Bank Period, the Company may (so long as such Defaulting Bank Period remains in effect), require such
Defaulting Bank to assign all right, title and interest that it may have in, and its participations in, all Loans, Letters of Credit
and any other Loan Obligations to another Bank (if another Bank will consent to purchase such right, title and interest and participations)
or another Person in accordance with and subject to the terms of Section 11.06 of
this Agreement, if such Person can be found by the Company, for a purchase price equal to 100% of the principal amount of such
Obligations plus the amount of any interest and fees accrued and owing to
such Defaulting Bank as of the date of such assignment plus any amount payable under this Agreement (including, without limitation,
under Section 5.04).
(g) So
long as any Bank is a Defaulting Bank, Hedging Obligations owing to such Bank or its Affiliates arising from transactions entered
into after it becomes a Defaulting Bank, shall be excluded from “Hedging Obligations” for the purpose of Section 4.08.
Section
5.
Yield Protection, Etc.
5.01 Additional
Costs. (a) If the adoption of
or any change in any Requirement of Law (including, without limitation, any Regulatory Change) or in the interpretation or application
thereof or compliance by any Bank with any request or directive (whether or not having the force of law) from any central bank
or other Governmental Authority made subsequent to the date hereof (including, without limitation, any Regulatory Change):
(A) does
or shall subject any Bank to any Tax of any kind whatsoever (other than Indemnified Taxes or Excluded Taxes) with respect to this
Agreement, any Note, any Eurodollar Loan made by it, any Revolving Loan Line Portion, any Letter of Credit issued or participated
in by it, or its deposits, reserves, other liabilities or capital attributable thereto;
(B) does
or shall impose, modify or hold applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement
against assets held by, deposits or other liabilities in or for the account of, advances, loans or other extensions of credit by
or participated in by, or any other acquisition of funds by, any office of such Bank which is not otherwise included in the determination
of the Eurodollar Base Rate; or
(C) does
or shall impose on such Bank any other condition, cost or expense;
and the result of any of the foregoing is to increase the cost
to such Bank of making, Converting into, Continuing or maintaining Eurodollar Loans or maintaining its obligation to make such
Loans or issuing, providing and maintaining Letters of Credit or holding an interest in the Issuing Bank’s obligations thereunder,
or to reduce any amount receivable hereunder (whether of principal, interest or any other amount), then, in any such case, the
Company shall promptly, after receiving notice and the applicable certificate as specified in Section 5.01(d), pay such
Bank such additional amount or amounts as will compensate such Bank for such increased cost or reduced amount receivable.
(b) Intentionally
omitted.
(c) If
any Bank shall have determined that the adoption of or any change in any Requirement of Law regarding capital adequacy or liquidity
requirements (including, without limitation, any Regulatory Change) or in the interpretation or application thereof or compliance
by such Bank, its Applicable Lending Office or any Person controlling such Bank with any Requirement of Law regarding capital adequacy
(including, without limitation, any Regulatory Change) or with any request or directive regarding capital adequacy or liquidity
requirements (whether or not having the force of law) from any Governmental Authority made subsequent to the date hereof shall
have the effect of reducing the rate of return on such Bank’s or such Person’s capital as a consequence of this Agreement,
its obligations or Revolving Loan Line Portions hereunder or under Letters of Credit (issued by it or in which it has a participation
interest) or in respect of its Loans, to a level below that which such Bank or such Person would have achieved but for such adoption,
change or compliance (taking into consideration such Bank’s or such Person’s policies with respect to capital adequacy),
then from time to time, the Company shall promptly after receiving notice and the applicable certificate as specified in Section
5.01(d), pay to such Bank or such other Person such additional amount or amounts as will compensate such Bank for such reduction.
In determining such amount or amounts, any Bank may use any method of averaging and attribution as it shall deem applicable.
(d) If
any Bank becomes entitled to claim any additional amounts pursuant to this Section 5.01, it shall promptly notify the Company
(with a copy to the Agent) of the event by reason of which it has become so entitled. Failure or delay on the part of any Bank
to demand compensation pursuant to this Section 5.01 shall not constitute a waiver of such Bank’s right to demand such compensation;
provided that the Company shall not be required to compensate such Bank pursuant to this Section 5.01 for any increased
costs or reductions incurred more than 270 days prior to the date that such Bank gives notice to the Company of the applicable
Requirement of Law (plus any additional period of retroactive effect of the applicable Requirement of Law) giving rise to such
increased costs or reductions and of the Bank’s intention to claim compensation pursuant to this Section 5.01. A certificate
as to any additional amounts payable pursuant to this Section 5.01 submitted by such Bank to the Company (with a copy to
the Agent) shall be conclusive in the absence of manifest error. The agreements in this Section 5.01 shall survive the termination
of this Agreement and the payment of the Loans, Reimbursement Obligations and all other amounts payable hereunder.
(e) The
Agent and each Bank hereby agrees that, upon the occurrence of any circumstances entitling the Agent or such Bank to additional
amounts pursuant to this Section 5.01, the Agent or such Bank shall use reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions), at the sole expense of the Company, to designate a different Applicable Lending
Office if the making of such a change would avoid the need for, or materially reduce the amount of, any such additional amounts
that may thereafter accrue and would not, in the sole judgment of the Agent or such Bank, be otherwise disadvantageous to the Agent
or such Bank in any respect.
(f) If
any Bank demands compensation under this Section 5.01, or if the Company is required to pay any additional amount to any Bank or
any Governmental Authority for the account of any Bank pursuant to this Section 5.01, the Company may require such Bank to assign
all right, title and interest that it may have in, and its participations in, all Loans, Letters of Credit and any other Obligations
of the Company under this Agreement and the Basic Documents to another Bank (if another Bank will consent to purchase such right,
title and interest and participations) or another Person in accordance with and subject to the terms of Section 11.06 of this Agreement,
for a purchase price equal to 100% of the principal amount of such Obligations plus the amount of any interest and
fees accrued and owing to such Bank as of the date of such assignment plus any other amounts payable under this Agreement (including
under this Section 5.01 and Section 5.04 hereof).
5.02 Inability
to Determine Interest Rate.
If prior to the first day of any Interest Period:
(a) (i)
the Agent shall have determined (which determination shall be conclusive and binding upon the Company) that, by reason of circumstances
affecting the relevant market, adequate and reasonable means do not exist for ascertaining the relevant Eurodollar Rate for such
Interest Period, or
(i) the
Agent shall have received notice from the Required Banks that the relevant Eurodollar Rate determined or to be determined for such
Interest Period will not adequately and fairly reflect the cost to such Banks (as conclusively certified by such Banks) of making
or maintaining their affected Loans during such Interest Period,
then the Agent shall give telecopy or telephonic notice thereof
to the Company and the relevant Banks as soon as practicable thereafter.
(b) If
such notice is given under clause (a)(i) or (ii) above with respect to the Eurodollar Rate applicable to Loans, (x) any such Eurodollar
Loan requested to be made on the first day of such Interest Period shall be made as a Base Rate Loan, (y) any Base Rate
Loans that were to have been Converted on the first day of such Interest Period to Eurodollar Loans shall continue as Base Rate
Loans and (z) any outstanding Eurodollar Loans shall be Converted to Base Rate Loans on the first day of such Interest Period.
Until such notice has been withdrawn by the Agent, no further Eurodollar Loans shall be made or Continued as such, nor shall the
Company have the right to Convert Base Rate Loans to Eurodollar Loans.
(c) The
Agent shall withdraw (i) any such notice pursuant to subsection (a)(i) of this Section 5.02 above if the Agent determines
that the relevant circumstances have ceased to exist and (ii) any such notice pursuant to subsection (a)(ii) of this Section
5.02 upon receipt of notice from the Required Banks the relevant circumstances described in such subsection (a)(ii) have ceased
to exist.
5.03 Illegality.
Notwithstanding any other provision of this Agreement, in the event that it becomes unlawful for any Bank or its Applicable Lending
Office to honor its obligation to make or maintain Eurodollar Loans hereunder, then such Bank shall promptly notify the Company
(with a copy to the Agent) thereof and such Bank’s obligation to make or Continue, or to Convert Loans of any other Type
into, Eurodollar Loans shall be suspended until such time as the Bank may again make and maintain Eurodollar Loans and such Bank’s
Loans then outstanding as Eurodollar Loans, if any, shall be Converted automatically to Base Rate Loans on the respective last
days of the then current Interest Periods with respect to such Loans or within such earlier period as required by Law.
5.04 Break
Funding Compensation. The Company shall pay to the Agent for account of each Bank, upon the request of such Bank (through the
Agent), such amount or amounts as shall be sufficient (in the reasonable opinion of such Bank) to compensate it for any loss, cost
or expense (including, without limitation, any loss or expense incurred by reason of the liquidation or reemployment of deposits
or other funds acquired by such Bank) that such Bank determines is attributable to (a) any failure by the Company in making a borrowing
of, Conversion into or Continuation of Eurodollar Loans after the Company has given a notice requesting the same in accordance
with the provisions of this Agreement, (b) any failure by the Company in making any prepayment after the Company has given a notice
thereof in accordance with the provisions of this Agreement or (c) the making of a payment or prepayment of Eurodollar Loans (whether
optional or mandatory, whether from proceeds of Collateral or otherwise) on a day which is not the last day of an Interest Period
with respect thereto. Without limiting the effect of the preceding sentence, such compensation shall include, with respect to Eurodollar
Loans, an amount equal to the excess, if any, of (i) the amount of interest that otherwise would have accrued on the principal
amount so paid, prepaid, Converted or not borrowed, prepaid or Converted for the period from the date of such payment, prepayment,
Conversion or failure to borrow, prepay or Convert to the last day of the then current Interest Period for such Loan (or, in the
case of a failure to borrow, prepay or Convert, the Interest Period for such Loan that would have commenced on the date specified
for such borrowing) at the applicable rate of interest for such Loan provided for herein over (ii) the amount of interest
that otherwise would have accrued on such principal amount at a rate per annum equal to the interest component of the amount such
Bank would have bid in the London interbank market for Dollar deposits of leading banks in amounts comparable to such principal
amount and with maturities comparable to such period (as reasonably determined by such Bank). A certificate as to any amounts payable
pursuant to this Section submitted to the Company by any Bank shall be presumptively correct in the absence of manifest error.
This covenant shall survive the termination of this Agreement and the payment of the Loans, Reimbursement Obligations and all other
amounts payable hereunder.
5.05 Intentionally
omitted.
5.06 Taxes.
(a) Payments
Free of Taxes. Any and all payments by or on account of any obligation of any Obligor under any Basic Document shall be made
free and clear of and without deduction or withholding for any Indemnified Taxes or Other Taxes, provided that if any Obligor shall
be required by applicable Law to deduct any Indemnified Taxes (including any Other Taxes) from such payments, then: (i) the sum
payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional
sums payable under this Section) the Agent, or Bank, as the case may be, receives an amount equal to the sum it would have received
had no such deductions been made; (ii) the applicable Obligor shall make such deductions; and (iii) the applicable Obligor shall
timely pay the full amount deducted to the relevant Governmental Authority in accordance with applicable Law.
(b) Payment
of Other Taxes by the Company. Without limiting the provisions of paragraph (a) above, the Company shall timely pay any Other
Taxes to the relevant Governmental Authority in accordance with applicable Law or, at the option of the Agent, timely reimburse
it for the payment of Other Taxes.
(c) Indemnification
by the Company. The Company shall indemnify the Agent and each Bank, within 10 days after demand therefor, for the full amount
of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts
payable under this Section) paid or payable by the Agent or such Bank, as the case may be, or required to be withheld or deducted
from a payment to the Agent or such Bank, as the case may be, and any penalties, interest and reasonable expenses arising therefrom
or with respect thereto, whether or not such Indemnified Taxes or Other 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 Company by a
Bank (with a copy to the Agent), or by the Agent on its own behalf or on behalf of a Bank, shall be conclusive absent manifest
error.
(d) Indemnification
by the Banks. Each Bank shall severally indemnify the Agent, within 10 days after demand therefor, for (i) any Indemnified
Taxes attributable to such Bank (but only to the extent that the Company has not already indemnified the Agent for such Indemnified
Taxes and without limiting the obligation of the Company to do so) and (ii) any Excluded Taxes attributable to such Bank, in each
case, that are payable or paid by the Agent in connection with any Basic 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 Bank by the Agent shall be conclusive absent manifest
error. Each Bank hereby authorizes the Agent to set off and apply any and all amounts at any time owing to such Bank under any
Basic Document or otherwise payable by the Agent to the Bank from any other source against any amount due to the Agent under this
paragraph (d).
(e) Evidence
of Payments. As soon as practicable after any payment of Indemnified Taxes or Other Taxes by any Obligor to a Governmental
Authority, the Company shall deliver to the Agent the original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory
to the Agent.
(f) Status
of Banks. (i) Any Bank that is entitled to an exemption from or reduction of withholding Tax with respect to payments made
under any Basic Document shall deliver to the Company and the Agent, at the time or times reasonably requested by the Company or
the Agent, such properly completed and executed documentation reasonably requested by the Company or the Agent as will permit such
payments to be made without withholding or at a reduced rate of withholding. In addition, any Bank, if reasonably requested by
the Company or the Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Company
or the Agent as will enable the Company or the Agent to determine whether or not such Bank 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 (f)(ii)(A), (ii)(B) and (ii)(D) below)
shall not be required if in the Bank’s reasonable judgment such completion, execution or submission would subject such Bank
to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Bank.
(i) Without
limiting the generality of the foregoing,
(A) any
Bank that is a U.S. Person shall deliver to the Company and the Agent on or prior to the date on which such Bank becomes a Bank
under this Agreement (and from time to time thereafter upon the reasonable request of the Company or the Agent), executed originals
of IRS Form W-9 certifying that such Bank is exempt from U.S. federal backup withholding tax;
(B) any
Foreign Bank shall, to the extent it is legally entitled to do so, deliver to the Company and the Agent (in such number of copies
as shall be requested by the recipient) on or prior to the date on which such Foreign Bank becomes a Bank under this Agreement
(and from time to time thereafter upon the reasonable request of the Company or the Agent), whichever of the following is applicable:
(i) in
the case of a Foreign Bank 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 Basic Document, executed originals of IRS Form W-8BEN 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 Basic Document, IRS Form W-8BEN 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;
(ii) executed
originals of IRS Form W-8ECI;
(iii) in
the case of a Foreign Bank claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x)
a certificate to the effect that such Foreign Bank is not a “bank” within the meaning of Section 881(c)(3)(A) of the
Code, a “10 percent shareholder” of the Company within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled
foreign corporation” described in Section 881(c)(3)(C) of the Code (in form and substance satisfactory to the Agent, a “U.S.
Tax Compliance Certificate”) and (y) executed originals of IRS Form W-8BEN; or
(iv) to
the extent a Foreign Bank is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS
Form W-8BEN, a U.S. Tax Compliance Certificate, IRS Form W-9, and/or other certification documents from each beneficial owner,
as applicable; provided that if the Foreign Bank is a partnership and one or more direct or indirect partners of such Foreign
Bank are claiming the portfolio interest exemption, such Foreign Bank may provide a U.S. Tax Compliance Certificate on behalf of
each such direct and indirect partner;
(C) Delivery
of Forms. Each Foreign Bank shall, to the extent it is legally entitled to do so, deliver to the Company and the Agent (in
such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Bank becomes a Bank
under this Agreement (and from time to time thereafter upon the reasonable request of the Company or the 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 the Company
or the Agent to determine the withholding or deduction required to be made; and
(D) FATCA.
If a payment made to a Bank hereunder would be subject to United States Federal withholding tax imposed by FATCA if such Bank were
to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b)
of the Code, as applicable), such Bank shall deliver to the Company and the Agent, at the time or times prescribed by Law and at
such time or times reasonably requested by the Company or the Agent, such documentation prescribed by applicable Law (including
as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Company or
the Agent as may be necessary for the Company or the Agent to comply with its obligations under FATCA, to determine that such Bank
has complied with such Bank’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.
In addition, each Bank shall severally indemnify the Agent and Company for any Indemnified Tax attributable to such Bank or other
penalties related thereto imposed in connection with any “withholdable payment,” as defined in Section 1473 of the
Code, made to a Bank that is a Foreign Bank that has failed to comply with the reporting requirements or otherwise qualify for
an exemption under FATCA.
(g) Each
Bank agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect,
it shall update such form or certification or promptly notify the Company and the Agent in writing of its legal inability to do
so.
(h) Nothing
contained in this Section 5.06 shall require any Bank (or any of its permitted assigns or participants hereunder) or the
Agent to make available any of its tax returns or any other information that it deems to be confidential or proprietary.
(i) If
any Person 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 pursuant to this Section 5.06 (including by the payment of additional amounts pursuant to this Section 5.06),
it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under
this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of
such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to
such refund). Such indemnifying party, upon the written request of such indemnified party, shall repay to such indemnified party
the amount paid over pursuant to this Section 5.06(i) (plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority
or otherwise. Notwithstanding anything to the contrary in this Section 5.06(i), in no event will the indemnified party be
required to pay any amount to an indemnifying party pursuant to this Section 5.06(i) the payment of which would place the
indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to
indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments
or additional amounts with respect to such Tax had never been paid.
Section
6.
Conditions Precedent.
6.01 Obligations
to Extend Credit. The obligation of any Bank, which shall be on an UNCOMMITTED AND ABSOLUTELY DISCRETIONARY basis, to make
any extension of credit hereunder (whether by making a Loan or issuing a Letter of Credit) is subject to the conditions precedent
that the Agent has received the following documents, each of which shall be reasonably satisfactory to the Agent (and to the extent
specified below to each Bank) in form and substance on or before the Closing Date:
(a) Executed
Counterparts. From each party hereto either (i) a counterpart of this Agreement signed and delivered on behalf of such party
or (ii) written evidence (which may include telecopy or other electronic transmission of a signed signature page to this Agreement)
that such party has signed and delivered a counterpart of this Agreement.
(b) Intentionally
omitted.
(c) Intercreditor
Agreement. The Intercreditor Agreement duly executed by the Committed Facility Agent.
(d) Governing
Documents. Certified copies of the charter and by-laws (or equivalent documents) of each Obligor, and of all corporate authority
for each Obligor (including board of director resolutions, evidence of the incumbency of officers and signature specimens of officers)
with respect to the execution, delivery and performance of the Basic Documents and each other document to be delivered by each
Obligor from time to time in connection herewith and the extensions of credit hereunder (and the Agent and each Bank may conclusively
rely on such certificates until it receives notice in writing from the Company to the contrary).
(e) Good
Standing. Evidence of the existence, good standing and authority to transact business for (i) the Company from the Secretary
of State of New Jersey, (ii) each Obligor from the Secretary of State of the jurisdiction of incorporation of such Obligor and
(iii) each Obligor from the Secretary of State of each other jurisdiction in which the failure of such Obligor to be in good standing
or to have the authority to transact business would result in a Material Adverse Effect.
(f) Officer’s
Certificate. A certificate of a senior officer of the Company, dated the Closing Date, to the effect set forth in clauses (a),
(b) and (c) of Section 6.02 hereof.
(g) Borrowing
Base Certificate. A Borrowing Base Certificate as of May 31, 2014, prepared on a pro forma basis, showing that, after giving
effect to the initial Revolving Loans to be made and the initial Letters of Credit to be issued or outstanding on the Closing Date,
the Borrowing Base will not be less than the Credit Exposure.
(h) Opinion
of Counsel to the Company. An opinion addressed to the Agent and each of the Banks and dated the Closing Date and covering
such matters as the Agent may reasonably request from such counsel to each Obligor.
(i) Security
Documents. Counterparts of the Subsidiary Guarantee executed by each Domestic Subsidiary, counterparts of an amendment (in
form and substance acceptable to the Agent) to the Share Pledge Agreement and counterparts of the Security Agreement signed on
behalf of the Obligors party thereto, together with the following:
(i) certificates
representing all the outstanding Capital Securities of each Subsidiary owned by or on behalf of any Obligor as of the Closing Date
(except that certificates representing Capital Securities of any foreign Subsidiary may be limited to 65% of the outstanding equity
interest of such foreign Subsidiary), and stock powers and instruments of transfer, endorsed in blank, with respect to such stock
certificates;
(ii) the
results of the search of the UCC (or equivalent) and tax Liens and judgment Liens made with respect to the Obligors and any predecessor
company identified pursuant to the Security Agreement in each jurisdiction (A) in which each Obligor and each predecessor company
is organized and (B) in respect of tax Liens and judgment Liens, where each Obligor and each predecessor company has its chief
executive office or has had its chief executive office within the last four months prior to the Closing Date; and copies of the
financing statements (or other documents) disclosed by such search and evidence that the Liens indicated by such financing statements
(or similar documents) are permitted by Section 8.06 or have been released or, simultaneously with the initial extensions of credit
hereunder, will be released;
(iii) subject
to the terms of the Security Agreement, (A) such other executed documentation as the Agent may deem necessary to perfect and protect
its Liens, including intellectual property assignments for all intellectual property pledged as Collateral, subordination agreements
and control agreements with respect to all deposit, commodity and security account and (B) all other Collateral the possession
of which is necessary to perfect the Lien therein; and
(iv) written
evidence that appropriate UCC financing statements necessary to protect the Liens under the Security Agreement have been recorded.
(j) Insurance.
Certificates of insurance summarizing the insurance policies of the Obligors required by the Basic Documents and reflecting the
Agent as additional insured under all liability policies and as additional insured and loss payee with respect to all casualty
policies covering Collateral and loss payee on all credit insurance policies.
(k) No
Material Adverse Effect. Evidence that no Material Adverse Effect has occurred since December 31, 2013, through the Closing
Date.
(l) Fees
and Expenses. Evidence that the Company has paid to the Agent and the Banks all reasonable and documented costs, fees and expenses
then due including such upfront and agency fees as the Company has agreed to pay to any Bank or the Agent in connection herewith
and the reasonable and documented fees and expenses of Emmet, Marvin & Martin, LLP, counsel to the Agent, in connection with
the negotiation, preparation, execution and delivery of this Agreement and the other Basic Documents (to the extent that statements
for such fees and expenses have been delivered to the Company).
(m) Intentionally
omitted.
(n) Request
to Honor Oral and Electronic Instructions. A completed request to honor oral and electronic instructions, executed by a senior
officer of the Company.
(o) Other
Documents. Such other documents as the Agent or any Bank or their counsel may reasonably request.
The Agent shall notify the Company and
the Banks when all documents required to be delivered as a condition to the effectiveness of the obligations of the Banks have
been delivered and such notice shall be conclusive and binding.
6.02 Initial
and Subsequent Extensions of Credit. The obligation of any Bank, which shall be on an UNCOMMITTED AND ABSOLUTELY DISCRETIONARY
basis, to make any Loan, issue any Letter of Credit or otherwise extend any credit to the Company upon the occasion of each borrowing,
issuance or other extension of credit hereunder (including the initial Loan, Letter of Credit or other extension of credit) is
subject to the further conditions precedent that, both immediately prior to the making of such Loan, issuance of such Letter of
Credit or other extension of credit and also after giving effect thereto and to the intended use thereof: (a) no Default exists
and the Required Banks shall not have made a demand for payment of and Cash Collateral (if applicable) for any Loan Obligations;
(b) the representations and warranties made by the Company in Section 7 hereof, and by each Obligor in each of the other
Basic Documents to which it is a party, shall be true and correct in all material respects on and as of the date of the making
of such Loan, issuance of such Letter of Credit or other extension of credit (except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date) with the
same force and effect as if made on and as of such date (or, if any such representation or warranty is expressly stated to have
been made as of a specific date, as of such specific date); (c) the aggregate outstanding principal amount of the Credit Exposure
shall not exceed the lesser of (x) the Borrowing Base and (y) the Revolving Loan Line Portions; and (d) following a Conversion
to Approving Banks Funding Date, no Approving Bank’s Credit Exposure shall exceed such Approving Bank’s Revolving Loan
Line Portion. Each Borrowing Request or request for the issuance of a Letter of Credit by the Company hereunder shall constitute
a certification by the Company to the effect set forth in the preceding sentence (both as of the date of such notice or request
and, unless the Company otherwise notifies the Agent prior to the date of such borrowing or issuance as of the date of such borrowing
or issuance).
Section
7.
Representations and
Warranties.
The Company represents
and warrants to the Agent and the Banks that:
7.01 Corporate
Existence. Each Obligor: (a) is a corporation, limited liability company, partnership or other entity duly organized, validly
existing and in good standing under the Laws of the jurisdiction of its organization; (b) has all requisite corporate or other
power, and has all material governmental licenses, authorizations, consents and approvals necessary to own its assets and carry
on its business as now being or as proposed to be conducted; and (c) is qualified to do business and is in good standing in
all jurisdictions in which the nature of the business conducted by it makes such qualification necessary and where failure so to
qualify could (either individually or in the aggregate) have a Material Adverse Effect.
7.02 Financial
Condition. The Company has heretofore furnished to each of the Banks the balance sheet of the Company as at December 31, 2013
and the related statements of operation, change in stockholder’s equity and cash flow for the fiscal year ended on said date,
with the opinion thereon of EisnerAmper LLP. Such financial statements fairly present the financial condition of the Company as
at said dates and the results of its operations for the fiscal year ended on said date, all in accordance with GAAP applied on
a consistent basis. The Company does not have on the date hereof any material contingent liabilities, liabilities for taxes, unusual
forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments, except as referred to or
reflected or provided for in said balance sheets as at said date. Since December 31, 2013, there has been no material adverse change
in the financial condition, operations, business or prospects of the Company and its Subsidiaries on a consolidated basis from
that set forth in said financial statements as at said date.
7.03 Litigation.
There are no legal or arbitral proceedings, or any proceedings by or before any governmental or regulatory authority or agency,
now pending or (to the knowledge of the Company) threatened in writing against the Company or any other Obligor that, if adversely
determined could (either individually or in the aggregate) have a Material Adverse Effect.
7.04 No
Breach. None of the execution and delivery of this Agreement and the other Basic Documents, the consummation of the transactions
herein and therein contemplated or compliance with the terms and provisions hereof and thereof will conflict with or result in
a breach of, or require any consent under, the charter or by-laws (or similar governing documents) of any Obligor, or any applicable
Law or regulation, or any order, writ, injunction or decree of any court or Governmental Authority or agency, or any agreement
or instrument to which any Obligor is a party or by which any of them or any of their Property is bound or to which any of them
is subject, or constitute a default under any such agreement or instrument, or (except for the Liens created pursuant to the Security
Documents) result in the creation or imposition of any Lien upon any Property of any Obligor pursuant to the terms of any such
agreement or instrument.
7.05 Action.
Each Obligor has all necessary corporate power, authority and legal right to execute, deliver and perform its obligations under
each of the Basic Documents to which it is a party; the execution, delivery and performance by each Obligor of each of the Basic
Documents to which it is a party have been duly authorized by all necessary corporate action on its part (including any required
shareholder approvals); and this Agreement, the Notes (if any), the Subsidiary Guarantee and each other Basic Document has been
duly and validly executed and delivered by each Obligor party thereto and constitutes its legal, valid and binding obligation,
enforceable against each applicable Obligor in accordance with its terms.
7.06 Approvals.
No authorizations, approvals or consents of, and no filings or registrations with, any governmental or regulatory authority or
agency, or any securities exchange, are necessary for the execution, delivery or performance by any Obligor of the Basic Documents
to which it is a party or for the legality, validity or enforceability hereof or thereof, except for filings and recordings in
respect of the Liens created pursuant to the Security Documents.
7.07 Use
of Credit. The Company is not engaged principally, or as one of its important activities, in the business of extending credit
for the purpose, whether immediate, incidental or ultimate, of buying or carrying Margin Stock, and no part of the proceeds of
any extension of credit hereunder will be used to buy or carry any Margin Stock.
7.08 ERISA.
Each “employee benefit plan”, as defined under Section 3(3) of ERISA, established or maintained by the Company has
been operated in material compliance with ERISA and the Code. At no time during the preceding five years has either the Company
or any ERISA Affiliate (i) established or maintained a Plan, or (ii) had any obligations to make contributions to a Multiemployer
Plan.
7.09 Taxes.
The Company has filed, or has valid extensions for the filing of, all Federal income tax returns and all other material tax returns
that are required to be filed by it and have paid all taxes due pursuant to such returns or pursuant to any assessment received
by the Company. The charges, accruals and reserves on the books of the Company in respect of taxes and other governmental charges
are, in the opinion of the Company, adequate. The Company has not given or been requested to give a waiver of the statute of limitations
relating to the payment of Federal, state, local and foreign taxes or other impositions.
7.10 Indebtedness
and Investments.
(a) Indebtedness.
Schedule I hereto is a complete and correct list, as of the date of this Agreement, of each credit agreement, loan agreement, indenture,
purchase agreement, guarantee, letter of credit or other arrangement providing for or otherwise relating to any Indebtedness or
any extension of credit (or commitment for any extension of credit) to, or guarantee by, the Company in each case with an aggregate
principal or face amount in excess of $100,000, and any Subsidiary of the Company, and the aggregate principal or face amount outstanding
or that may be outstanding under each such arrangement is correctly described in said Schedule I.
(b) Investments.
Schedule II hereto is a complete and correct list, as of the date of this Agreement, of all Investments held by the Company and
each Subsidiary in any Person, in each case with an aggregate principal or face amount in excess of $100,000, and, for each such
Investment, the nature of such Investment.
7.11 True
and Complete Disclosure. The information, reports, financial statements, exhibits and schedules furnished in writing by or
on behalf of any Obligor to the Agent or any Bank in connection with the negotiation, preparation or delivery of this Agreement
and the other Basic Documents or included herein or therein or delivered pursuant hereto or thereto, when taken as a whole do not
contain any untrue statement of material fact or omit to state any material fact necessary to make the statements herein or therein,
in light of the circumstances under which they were made, not misleading. All written information furnished after the date hereof
by the Company to the Agent and the Banks in connection with this Agreement and the other Basic Documents and the transactions
contemplated hereby and thereby will be true, complete and accurate in every material respect, or (in the case of projections)
based on reasonable estimates, on the date as of which such information is stated or certified.
7.12 Subsidiaries.
Set forth on Schedule III is a complete and correct list of all of the Subsidiaries of the Company as of the date hereof, together
with, for each such Subsidiary: (a) the jurisdiction of organization of such Subsidiary; (b) each Person holding Capital Securities
in such Subsidiary; (b) the authorized, issued and outstanding Capital Securities issued by such Subsidiary; (c) the Capital Securities
held by each such Person; and (d) the percentage of ownership of such Subsidiary represented by such Capital Securities. Each of
the Company and the Subsidiaries owns, free and clear of Liens (other than Liens created pursuant to the Security Documents), and
has the unencumbered right to vote, all outstanding Capital Securities in each Person shown to be held by it on Schedule III and
all of the issued and outstanding Capital Securities of each such Person organized as a corporation or limited liability company
is validly issued, fully paid and nonassessable. As of the date hereof: (x) there are no outstanding equity rights with respect
to any Subsidiary and (y) there are no outstanding obligations of any Subsidiary to repurchase, redeem, or otherwise acquire any
Capital Securities or other equity rights of any Subsidiary nor are there any outstanding obligations of any Subsidiary to make
payments to any Person, such as “phantom stock” payments, where the amount thereof is calculated with reference to
the fair market value or equity value of any Subsidiary.
7.13 Property.
The Company and each of its Subsidiaries has good title to, or valid leasehold interests in, all its real and personal property
material to its business, subject only to Liens permitted by Section 8.06 and except for minor defects in title that do not interfere
with its ability to conduct its business as currently conducted or to utilize such properties for their intended purposes. The
Company and each of its Subsidiaries owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual
property material to its business, and the use thereof by the Company and the Subsidiaries does not infringe upon the rights of
any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect. To the knowledge of the Company, no claim has been asserted nor is pending by any Person challenging
or questioning the use of any such trademarks, tradenames, copyrights, patents and other intellectual property or the validity
or effectiveness of any such trademarks, tradenames, copyrights, patents and other intellectual property that, if adversely determined
could (either individually or in the aggregate) have a Material Adverse Effect.
7.14 Compliance
with Laws and Agreements. The Company and each of its Subsidiaries are each in compliance with all Requirements of Law, regulations
and orders of any Governmental Authority applicable to it or its property and all indentures, agreements and other documents binding
upon it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected
to result in a Material Adverse Effect.
7.15 Investment
Company Status. Neither the Company nor any of its Subsidiaries is an “investment company” as defined in, or subject
to regulation under, the Investment Company Act of 1940 (as amended).
7.16 OFAC
Money Laundering Representations. No Obligor nor any of its Affiliates is in violation of any Laws relating to sanctions, terrorism
or money laundering (“Anti-Terrorism Laws”), including regulations administered by the United States Treasury
Department’s Office of Foreign Asset Control (“OFAC”) and the Executive Order No. 13224 on Terrorist Financing,
effective September 24, 2001 (the “Executive Order”), and the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56. No Obligor nor any of its Affiliates
or their respective brokers or other agents acting or benefiting in any capacity in connection with the Loans or Letters of Credit,
is any of the following (each such Person, a “Sanctioned Person”):
(a) a
Person or country that is listed in the annex to, or is otherwise subject in the prohibitions contained in, the Executive Order
or the OFAC regulations or that is subject to sanction by the U.S. State Department or the European Union;
(b) a
Person owned or controlled by, or acting for or on the behalf of, any Person that is listed in the annex to, or is otherwise subject
to the prohibitions contained in, the Executive Order or the OFAC regulations or other Anti-Terrorism Laws;
(c) a
Person with which the Agent or any Bank is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism
Law;
(d) a
Person that commits, threatens or conspires to commit or supports “terrorism” as defined in the Executive Order or
the OFAC regulations;
(e) a
Person that is (i) named on the most current list of “Specially Designated Nationals and Blocked Persons” published
by OFAC at its official website or any replacement website or other replacement official publication list or (ii) similarly designated
in any comparable list published by the United Nations or any Governmental Authority of the European Union, the Netherlands, the
United Kingdom or the French Republic; or
(f) a
Person located, organized or resident in a country or territory that is, or whose government is, the subject of sanctions including,
without limitation, Cuba, Iran, North Korea, Sudan and Syria.
No Obligor nor any of its brokers or other
agents acting in any capacity in connection with the Loans or Letters of Credit (x) conducts any business or engages in making
or receiving any contribution of funds, goods or services to or for the benefit of any Sanctioned Person, (y) deals in, or otherwise
engages in any transaction relating to, any property or interests in property blocked pursuant to the Executive Order or the OFAC
regulations, or (z) engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or
avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law.
No part of the proceeds
of the Loans or Letters of Credit will be used, directly or indirectly, for any payments to any Sanctioned Person, governmental
official or employee, political party, official of a political party, candidate for political office, or anyone else acting in
an official capacity, (x) in order to obtain, retain or direct business or obtain any improper advantage, in violation of OFAC,
Anti-Terrorism Laws, regulations of the European Union or the United States Foreign Corrupt Practices Act of 1977, as amended or
(y) which could result in the imposition of sanctions against any Person (including any Bank).
7.17 Insurance.
The Company and each of its Subsidiaries maintain with financially sound and reputable insurers, insurance with respect to its
properties and business against such casualties and contingencies and in such amounts as are usually carried by businesses engaged
in similar activities as the Company and such Subsidiaries and located in similar geographic areas in which the Company and such
Subsidiaries operate.
7.18 Solvency.
On the Closing Date and immediately following the making of each Loan made, and issuance of each Letter of Credit issued, on the
Closing Date and after giving effect to the application of the proceeds of such Loans and the issuance of such Letter of Credit:
(a) the fair value of the assets of each Obligor, at a fair valuation, will exceed its debts and liabilities, subordinated,
contingent or otherwise; (b) the present fair saleable value of the property of each Obligor will be greater than the amount
that will be required to pay the probable liability of its debts and other liabilities, subordinated, contingent or otherwise,
as such debts and other liabilities become absolute and matured; (c) each Obligor will be able to pay its debts and liabilities,
subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (d) each Obligor will
not have unreasonably small capital with which to conduct the business in which it is engaged as such business is now conducted
and is proposed to be conducted following the Closing Date. As used in this Section, the term “fair value” means the
amount at which the applicable assets would change hands between a willing buyer and a willing seller within a reasonable time,
each having reasonable knowledge of the relevant facts, neither being under any compulsion to act, with equity to both and “present
fair saleable value” means the amount that may be realized if the applicable company’s aggregate assets are sold with
reasonable promptness in an arm’s length transaction under present conditions for the sale of a comparable business enterprises.
7.19 Intentionally
omitted.
7.20 Security
Documents. The provisions of each Security Document are effective to create in favor of the Agent for the ratable benefit of
the Secured Parties and the Agent a legal, valid and enforceable Lien in all right, title and interest of the applicable Obligor
in the Collateral.
7.21 Environmental
Matters.
(a) The
facilities and Properties owned or operated by the Company or any of its Subsidiaries (the “Relevant Properties”)
do not contain any Materials of Environmental Concern in amounts or concentrations which (i) constitute or constituted a material
violation of or (ii) could reasonably be expected to give rise to a material liability under, any Environmental Law.
(b) The
Company, the Relevant Properties and all operations of the Company at the Relevant Properties are in material compliance, and have,
for the duration of their ownership or operation by the Company and its Subsidiaries, been in material compliance with all applicable
Environmental Laws, and there is no contamination at, under or about the Relevant Properties. All Environmental Permits necessary
in connection with the operations of the Company and its Subsidiaries have been obtained and are in full force and effect except
for those Environmental Permits for which the failure to obtain could not reasonably be expected to result in a material obligation
under Environmental Laws.
(c) Neither
the Company nor any of its Subsidiaries have received any written notice of violation, alleged violation, non-compliance, liability
or potential liability regarding liability under or compliance with Environmental Laws with regard to any of the Relevant Properties
or its operations, except for matters that have been resolved.
(d) Materials
of Environmental Concern have not been transported or disposed of from the Relevant Properties by or on behalf of the Company or
its Subsidiaries in violation of, or to the Company’s knowledge, in a manner or to a location which could give rise to liability
under, any Environmental Law, nor have any Materials of Environmental Concern been generated, treated, stored or disposed of at,
on or under any of the Relevant Properties in violation of, or in a manner that could give rise to liability under, any applicable
Environmental Law.
(e) No
judicial proceeding or governmental or administrative action is pending or, to the knowledge of the Company, threatened in writing,
under any Environmental Law to which the Company or its Subsidiaries are or to the knowledge of the Company will be named as a
party with respect to the Relevant Properties or the operations of the Company or its Subsidiaries, nor are there any consent decrees,
consent orders, administrative orders or other orders, outstanding under any Environmental Law with respect to the Relevant Properties
or the operations of the company or its Subsidiaries.
(f) The
representations and warranties under this Section 7.21 are the exclusive representations and warranties of the Company regarding
Environmental Laws or Materials of Environmental Concern.
Section
8.
Covenants of the Company.
The Company covenants
and agrees with the Banks and the Agent that, so long as any Revolving Loan Line Portion, Loan or Letter of Credit Liability is
outstanding and until payment in full of all Loan Obligations (other than any contingent obligations for which no claim has been
made or asserted):
8.01 Financial
Statements, Etc. The Company shall deliver to each of the Banks:
(a) Quarterly
Financial Statements. as soon as available and in any event within 45 days after the end of each of the first three quarterly
fiscal periods of each fiscal year of the Company, the following: (i) statements of operation, change in stockholder’s
equity and cash flow of the Company for such period and for the period from the beginning of the respective fiscal year to the
end of such period prepared on a consolidated basis, (ii) the related consolidated balance sheet of the Company as at the
end of such period, (iii) statements of operation of the Company for such period and for the period from the beginning of
the respective fiscal year to the end of such period prepared on a consolidating basis, and (iv) the related consolidating
balance sheet of the Company as at the end of such period, all accompanied by a certificate of a senior financial officer of the
Company, which certificate shall state that said financial statements fairly present the financial condition and results of operations
of the Company, in each case in accordance with GAAP, as at the end of, and for, such period (subject to normal year-end audit
adjustments);
(b) Annual
Financial Statements. as soon as available and in any event within 90 days after the end of each fiscal year of the Company
the following: (i) statements of operation, change in stockholder’s equity and cash flow of the Company for such fiscal
year and the related balance sheet as at the end of such fiscal year prepared on a consolidated basis, and accompanied by an unqualified
opinion thereon of independent certified public accountants acceptable to the Required Banks, which opinion shall state that said
audited financial statements fairly present the financial condition and results of operations of the Company as at the end of,
and for, such fiscal year in accordance with GAAP, (ii) statements of operation of the Company for such fiscal year prepared
on a consolidating basis, and (iii) the related consolidating balance sheet of the Company as at the end of such fiscal year,
all accompanied by a certificate of a senior financial officer of the Company, which certificate shall state that said consolidating
financial statements fairly present the financial condition and results of operations of the Company, in each case in accordance
with GAAP, as at the end of, and for, such period;
(c) ERISA.
Neither the Company nor any ERISA Affiliate shall (i) establish, maintain, or become obligated to contribute to a Plan, or (ii)
become obligated to make contributions to a Multiemployer Plan, except with the written consent of the Required Banks which consent
shall not be unreasonably withheld.
(d) Borrowing
Base Certificate. as soon as available and in any event within 10 Business Days after:
(i) the
end of each calendar month,
(ii) the
15th day of each calendar month, and
(iii) any
other accounting period for which any Bank reasonably requests a Borrowing Base Certificate,
a Borrowing Base Certificate as at the
end of such calendar month in respect of clause (i) above, the 15th day of such calendar month in respect of clause (ii) above,
and the last day of such accounting period in respect of clause (iii) above, together with reports, as of the last day of such
accounting period, setting forth the following: (A) the aging of the Receivables, specifying both the names of the respective account
debtors and the period of time each such account has been past due, (B) a list of the Eligible Receivables and Australian Receivables,
(C) a list of Tier I Eligible Receivables and Tier II Eligible Receivables showing insurance limits and aging, (D) if the Net Liquidating
Value of Eligible Brokerage Accounts is included in the Borrowing Base, then such information as the Agent may request to support
the value reported thereunder, (E) the amount and value of all Eligible Inventory, Eligible Unsold Inventory and Eligible
Inventory Ordered under L/C, in each case included in the Borrowing Base, by location and lot number, and (F) such other information
as the Agent may reasonably request.
Notwithstanding the foregoing and anything
contained in this Agreement to the contrary, at any time and from time to time during the period between required deliveries of
Borrowing Base Certificates, the Borrower may deliver an Interim Borrowing Base Certificate to the Agent, and, subject to the terms
of the Intercreditor Agreement and Section 8.27 hereof, the Borrowing Base as calculated therein shall for all purposes be the
Borrowing Base (as reduced or increased after giving effect to any reallocation pursuant to Section 2.3 of the Intercreditor Agreement),
and the Interim Borrowing Base Certificate shall for all purposes constitute the then applicable Borrowing Base Certificate until
the next scheduled Borrowing Base Certificate or Interim Borrowing Base Certificate is delivered, provided, that contemporaneously
with the delivery of any Interim Borrowing Base Certificate, the Company shall also deliver an Interim Borrowing Base Certificate
(as defined in the Committed Credit Agreement) under the Committed Credit Agreement.
(e) Collateral
Audit. from time to time at the request of the Agent (but, so long as no Default is continuing, no more than once in any fiscal
year), a report as of the end of any fiscal quarter, in form and substance satisfactory to the Required Banks, of an independent
collateral auditor satisfactory to the Required Banks (which may be, or be affiliated with, any of the Banks):
(i) with
respect to the Receivables and Inventory components included in the Borrowing Base as at the end of such fiscal quarter which report
shall indicate that, based upon a review by such auditors of the Receivables (including verification with respect to the amount,
aging, identity and credit of the respective account debtors and the billing practices of the Company) and Inventory (including
verification as to the value, location and respective types), the information set forth in the Borrowing Base Certificate delivered
by the Company as at the end of such fiscal quarter is accurate and complete in all material respects,
(ii) with
respect to the insurance policy or policies covering any of the Receivables or other Collateral, and
(iii) with
respect to the agreements entered into by the Company with its customers and its suppliers;
provided, that
notwithstanding the foregoing, the first such report shall be dated on or around the date which is 180 days after the date hereof
and delivered to the Agent within 45 days after such date.
(f) Shareholder
Material. promptly upon the mailing thereof to the shareholders of the Company generally, copies of all financial statements,
reports and proxy statements so mailed;
(g) Notice
of Default. promptly after the Company knows or has reason to believe that any Default has occurred, a notice of such Default
describing the same in reasonable detail and, together with such notice or as soon thereafter as possible, a description of the
action that the Company has taken or proposes to take with respect thereto;
(h) Committed
Credit Agreement Documents. (i) contemporaneously with the delivery thereof by the Borrower under the Committed Credit Agreement,
a copy of each Borrowing Base Certificate (as defined in the Committed Credit Agreement) and Interim Borrowing Base Certificate
(as defined in the Committed Credit Agreement) delivered thereunder, together with all supporting schedules and information delivered
therewith and (ii) promptly upon execution thereof, copies of all amendments and waivers to the Committed Credit Agreement; and
(i) Other
Information. from time to time such other information regarding the financial condition, operations, business or prospects
of any Obligor as any Bank or the Agent may reasonably request, including,
without limitation, information relating to any Plan or Multiemployer
Plan for which consent has been given under Section 8.01(c).
The Company will furnish to each Bank,
at the time it furnishes each set of financial statements pursuant to paragraph (a) or (b) above, a certificate of a
senior financial officer of the Company in substantially the form of Exhibit G hereto (the “Compliance Certificate”):
(i) to the effect that no Event of Default is continuing (or, if any Event of Default is continuing, describing the same in
reasonable detail and describing the action that the Company has taken or proposes to take with respect thereto) and (ii) setting
forth in reasonable detail the computations necessary to determine whether the Company is in compliance with Sections 8.07, 8.08(d),
8.09, 8.10 and 8.11 hereof as of the end of the respective quarterly fiscal period or fiscal year.
8.02 Litigation.
The Company will promptly (and in any event no later than five Business Days after the Company has notice of the same) give to
each Bank notice of all legal or arbitral proceedings, and of all proceedings by or before any governmental or regulatory authority
or agency, and any material development in respect of such legal or other proceedings, affecting the Company or any of its Subsidiaries,
except proceedings that, if adversely determined, would not (either individually or in the aggregate) have a Material Adverse Effect.
Without limiting the generality of the foregoing, the Company will give to each Bank notice of the assertion in writing of any
environmental matter by any Person against, or with respect to the activities of, the Company or any of its Subsidiaries and notice
of any alleged violation of or non-compliance with any environmental Laws or any permits, licenses or authorizations, other than
any environmental matter or alleged violation that, if adversely determined, would not (either individually or in the aggregate)
have a Material Adverse Effect.
8.03 Existence,
Etc. The Company will and will cause each Obligor to:
(a) Existence.
preserve and maintain in full force and effect its legal existence and, except where such failure to preserve and maintain would
not (either individually or in the aggregate) have a Material Adverse Effect, all of its rights, privileges, licenses and franchises;
(b) Compliance
with Laws. comply in all material respects with all Requirements of Law and its organizational documents;
(c) Payment
of Obligations. pay and discharge its obligations, including all taxes, assessments and governmental charges or levies imposed
on it or on its income or profits or on any of its Property prior to the date on which penalties attach thereto, except for any
such obligations the payment of which is being contested in good faith and by proper proceedings and against which adequate reserves
in accordance with GAAP have been established and are being maintained;
(d) Maintain
Property. maintain all of its Properties used or useful in its business in good working order and condition, ordinary wear
and tear excepted;
(e) Books
and Records. keep adequate records and books of account, in which complete entries will be made in accordance with GAAP; and
(f) Inspection.
permit, at the sole cost and expense of the Company, representatives of any Bank or the Agent, during normal business hours and
upon reasonable prior notice (which such notice shall not be required at any time an Event of Default exists or at any time after
the Required Banks shall have demanded payment of and Cash Collateral (if applicable) for any Loan Obligations), to examine, copy
and make extracts from its books and records, to inspect any of its Properties, and to discuss its business and affairs with its
officers, all to the extent reasonably requested by such Bank or the Agent (which notice shall specify the reasons (determined
by such Bank or the Agent in its sole discretion) for such examination, inspections or discussions), provided that unless an Event
of Default shall have occurred and be continuing or a demand by the Required Banks for payment of and Cash Collateral (if applicable)
for any Loan Obligations has been made, the Company shall not be responsible for the costs and expenses of more than two such inspections
in each year.
8.04 Insurance.
The Company will, and will cause its Subsidiaries to, maintain insurance with financially sound and reputable insurance companies,
and with respect to Property and risks of a character usually maintained by corporations engaged in the same or similar business
similarly situated, against loss, damage and liability of the kinds and in the amounts customarily maintained by such corporations,
including, in any event, marine and credit insurance policies covering the Company’s or its Subsidiaries’, as the case
may be, inventory and accounts receivable, respectively, in amounts, pursuant to policies, and issued by insurers, acceptable to
the Required Banks. The Company shall (i) cause all such insurance (other than workers’ compensation) to name the Agent as
loss payee (to the extent covering risk of loss or damage to tangible property or loss on accounts receivable) and as an additional
named insured as its interests may appear (to the extent covering loss or damage to tangible property or any other risk), and furnish
the Agent evidence of the same, and (ii) at least annually, furnish to the Agent certificates of insurance evidencing the existence
of all insurance required to be maintained pursuant to this Section 8.04 and the designation of the Agent as the loss payee
and/or additional named insured, as the case may be, thereunder to the extent required by this Section 8.04.
8.05 Prohibition
of Fundamental Changes. The Company will not and will not permit any other Obligor to enter into any transaction of merger
or consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), except that
any Subsidiary of the Company may be merged with or into the Company or any other Obligor, provided that in the case of
such merger, consolidation or amalgamation involving the Company, the Company shall be the continuing or surviving Person. The
Company will not and will not permit any other Obligor to acquire any business or material Property from, or capital stock of,
or be a party to any acquisition of, any Person except for purchases of inventory and other Property to be sold or used in the
ordinary course of business. The Company will not and will not permit any other Obligor to convey, sell, lease, transfer or otherwise
dispose of, in one transaction or a series of transactions, any part of its business or Property, whether now owned or hereafter
acquired (including, without limitation, receivables and leasehold interests) except the following:
(a) the
Conveyance of surplus, obsolete or worn out property in the ordinary course of business;
(b) the
sale of inventory in the ordinary course of business for fair market value;
(c) the
Conveyance of any property, business or assets not described in Sections 8.05(a), (b), (d), (e), (f) and (g); provided
that the aggregate book value of all such property, business or assets so Conveyed in any fiscal year of the Company shall not
exceed $2,000,000; provided further, that any such Conveyance shall not be permitted if a Default shall have occurred
and be continuing or would exist after giving effect to such Conveyance;
(d) the
use of cash in the ordinary course of its business;
(e) the
Conveyance for fair market value of any Investment acquired in connection with any transaction described in Section 8.08
for fair market value;
(f) Dividend
Payments to the extent permitted under Section 8.13 hereof; and
(g) the
granting of Liens not prohibited under this Agreement (but not the Conveyance of the property subject to such Lien).
8.06 Limitation
on Liens. The Company will not create, incur, assume or suffer to exist any Lien upon any of its Property and will not allow
any of its Subsidiaries to create, incur, assume or suffer to exist any Lien upon any of their respective Property, whether now
owned or hereafter acquired, except:
(a) Liens
created pursuant to the Security Documents;
(b) Liens
imposed by any Governmental Authority for taxes, assessments or charges not yet due or that are being contested in good faith and
by appropriate proceedings if adequate reserves with respect thereto are maintained on the books of the Company in accordance with
GAAP;
(c) carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course
of business that are not overdue for a period of more than 30 days or that are being contested in good faith and by appropriate
proceedings; and Liens securing judgments but only to the extent for an amount and for a period not resulting in an Event of Default
under Section 9(h) hereof;
(d) pledges
or deposits under worker’s compensation, unemployment insurance and other social security legislation;
(e) a
mortgage Lien granted by 6900 Quad Avenue, LLC over its warehouse facility located in Baltimore, Maryland, securing Indebtedness
permitted pursuant to Section 8.07(b) hereof;
(f) deposits
to secure the performance of bids, trade contracts (other than for Indebtedness), leases, statutory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business;
(g) intentionally
omitted;
(h) Liens
on Property of Imbali Metals Bvba securing the Imbali Facility;
(i) Liens
encumbering Inventory securing the Indebtedness permitted pursuant to Sections 8.07(f)(A) and (B);
(j) Liens
securing Indebtedness permitted under Section 8.07(g) hereof, provided that such Liens are subject to the terms of the Intercreditor
Agreement;
(k) Liens
securing Indebtedness permitted under Section 8.07(h), provided that such Liens shall encumber only the capital assets financed
with such Indebtedness; and
(l) Liens
securing Indebtedness permitted under Section 8.07(i) below, provided that such Liens shall encumber only assets of the Subsidiary
which incurs such Indebtedness.
8.07 Indebtedness.
The Company will not, and will not allow any of its Subsidiaries to, create, incur or suffer to exist any Indebtedness except:
(a) Indebtedness
to the Banks hereunder;
(b) Indebtedness
of 6900 Quad Avenue, LLC under the Quad Avenue Loan Agreement in an aggregate amount not to exceed $1,300,000, the proceeds of
which have been used to finance the acquisition of the warehouse facility in Baltimore, Maryland, and any unsecured Guarantee by
the Company of such Indebtedness existing on the date hereof;
(c) intentionally
omitted;
(d) other
unsecured Indebtedness in an aggregate outstanding principal amount not to exceed at any time $250,000;
(e) Indebtedness
of Imbali Metals Bvba under the Imbali Facility;
(f) the
following Indebtedness, provided that (i) the aggregate amount of the Indebtedness permitted under this clause (f) outstanding
at any time shall not exceed $25,000,000 (calculated without duplication of any Guarantee of such Indebtedness), (ii) at the
time of the incurrence of such Indebtedness no Default shall exist or result therefrom, and (iii) the Company shall have provided
the Agent and each Bank a certificate of a financial officer of the Company showing the Company’s compliance with the covenants
set forth in Section 8.09 and 8.10 after giving effect to such Indebtedness and certifying that at the time of the incurrence thereof
and after giving effect thereto, no Default shall exist:
(A) Indebtedness
of the Company which is incurred to finance the acquisition of Inventory in the ordinary course of business and is non-recourse
to the Company and any of its Property other than the Inventory financed thereby, pursuant to customary non-recourse provisions
(including normal and customary exceptions to the non-recourse nature thereof); provided that (1) no Inventory so financed
is included in the Borrowing Base until the Liens securing such Indebtedness (other than Permitted Borrowing Base Liens and Liens
permitted under Section 8.07(g)) are released and (2) such Indebtedness does not exceed 100% of the cost of acquiring such
Inventory;
(B) In
addition to the Reimbursement Obligations, Indebtedness in the form of reimbursement obligations under letters of credit (which
are not Letters of Credit hereunder) issued for the account of the Company to secure the purchase price of Inventory in the ordinary
course of business to be acquired by the Company if (1) such reimbursement obligation is secured only by the Inventory the
purchase price of which is secured by the applicable Letter of Credit; (2) no such Inventory is included in the Borrowing
Base until the Liens securing such Indebtedness are released and (3) such Indebtedness does not exceed 100% of the cost of
acquiring such Inventory;
(C) Subordinated
Debt; and
(D) Guarantees
by the Company of Indebtedness of certain of its suppliers incurred in the form of loans made to such suppliers by third parties
(which may include one or more of the Banks) under pre-export finance arrangements; provided that (1) with respect to any
one supplier, the amount of the Guarantee provided for the benefit of such supplier shall be limited to an amount not to exceed
20% of the aggregate amount of such loans to such supplier and (2) the aggregate amount of the Indebtedness Guaranteed pursuant
to the Guarantees provided under this clause (D) shall not exceed $3,000,000 at any time outstanding;
(g) Indebtedness
of the Company under the Committed Credit Agreement;
(h) Indebtedness
in an aggregate principal amount not to exceed $10,000,000 incurred to finance Capital Expenditures to the extent permitted under
Section 8.20 hereof;
(i) Indebtedness
of any Subsidiary of the Company that is organized under the Laws of Australia in an aggregate principal amount outstanding not
to exceed AUS$20,000,000 at any time;
(j) Indebtedness
under Hedging Agreements entered into in the ordinary course of business and not for speculative purposes; and
(k) any
refinancings, refundings, renewals or extensions of Indebtedness permitted under Section 8.07(b), (e) or (i), provided that
(i) the amount of such Indebtedness is not increased at the time of such refinancing, refunding, renewal or extension and (ii)
any guarantee entered into in connection with such refinancing, refunding, renewal or extension that is not a refinancing of an
existing guarantee of such Indebtedness shall not be permitted under this Section 8.07(k).
8.08 Investments.
The Company will not, nor will it permit any of its Subsidiaries to, make or permit to remain outstanding any Investments except:
(a) Investments
outstanding on the date hereof and identified on Schedule II hereto;
(b) deposit
accounts with banks;
(c) Hedging
Agreements entered into in the ordinary course of business and not for speculative purposes;
(d) Investments
by the Company in Imbali Metals Bvba in an aggregate amount not to exceed €4,000,000
or the dollar equivalent thereof (determined based on the amount initially advanced with respect thereto, giving effect to any
repayments and including any amount outstanding on the Closing Date) and Investments by the Company under the Imbali Guarantee;
(e) Investments
of the type described in clause (a) and (b) of the definition thereof in third parties; provided, that such Investments are made
with the proceeds of Subordinated Debt and the aggregate outstanding amount of such Investments (determined based on the amount
initially advanced with respect thereto minus any repayment thereof) does not exceed $12,000,000 at any time;
(f) Permitted
Investments; and
(g) other
Investments in an aggregate amount not to exceed at any time $500,000 (determined based on the amount initially advanced with respect
thereto, giving effect to any repayments).
8.09 Leverage
Ratio. The Company will not permit the Leverage Ratio to exceed at any time 6.00 to 1.
8.10 Net
Working Capital. The Company will not permit its Net Working Capital to be less than the sum of $35,000,000 plus an
amount equal to 25% of its Consolidated Net Income (but, in each case, only if a positive number) for the fiscal year most recently
ended, to be tested as of the end of each fiscal quarter of the Company.
8.11 No
Net Loss. The Company will not permit its Consolidated Net Income (but calculated before taxes and extraordinary items in accordance
with GAAP) for any two or more consecutive fiscal quarters to be less than -$4,000,000 (negative four million Dollars) in the aggregate.
8.12 Lines
of Business. The Company will not nor will it permit any Subsidiary to engage to any substantial extent in any line or lines
of business activity other than the business of acquiring, selling, trading, extruding and otherwise dealing in aluminum and steel
semi-finished products (or other similar metal products).
8.13 Dividend
Payments. The Company will not, nor will it permit any of its Subsidiaries to, declare or make any Dividend Payment (other
than Dividend Payments to the Company) at any time if (a) an Event of Default exists, (b) immediately after giving effect to making
such Dividend Payment any Event of Default would exist or be continuing or (c) the Required Banks shall have demanded payment of
and Cash Collateral (if applicable) for any Loan Obligations.
8.14 Use
of Proceeds. The Company will use the proceeds of the extensions of credit hereunder for working capital and general corporate
purposes in the ordinary course of business (in compliance with all applicable legal and regulatory requirements, including Regulations
T, U and X and the Securities Act of 1933 (as amended) and the Securities Act of 1934 (as amended) and the regulations thereunder);
provided that neither the Agent nor any Bank has any responsibility as to the use of any of such proceeds.
8.15 Subordinated
Debt. The Company will not purchase, redeem, retire or otherwise acquire for value, or set apart any money for any sinking,
defeasance or other analogous fund for, the purchase, redemption, retirement or other acquisition of, or make any payment or prepayment
of the principal of or interest on, or any other amount owing in respect of, any Subordinated Debt, except for regularly scheduled
payments of principal and interest in respect thereof (if any) required pursuant to the instruments evidencing such Subordinated
Debt. The Company will not purchase, redeem, retire or otherwise acquire for value, or set apart any money for any sinking, defeasance,
or other analogous fund for, the purchase, redemption, retirement or other acquisition of, or make any payment or repayment of
the principal of or interest on, or any other amounts owing in respect of, the Imbali Guarantee.
8.16 Intentionally
omitted
8.17 Additional
Guarantors; Pledge of Additional Subsidiaries. The Company will take such action, and will cause each of its Subsidiaries which
is organized under the Laws of a State of the United States (other than the Quad Avenue Subsidiary) (each, a “Domestic
Subsidiary”) to take such action, from time to time as shall be necessary to ensure that all Domestic Subsidiaries of
the Company (other than the Quad Avenue Subsidiary) become “Guarantors” hereunder and grant Liens in all their respective
personal property assets, including the following actions:
(a) Subsidiary
Guarantee. duly executing and delivering a Supplement to the Subsidiary Guarantee in the form attached as Annex I thereto for
each Domestic Subsidiary formed or acquired following the Closing Date;
(b) Secured
Documents. causing such Domestic Subsidiary to take such action (including executing and delivering a Supplement to the Security
Agreement in form attached as Annex I thereto properly completed and delivering such certificates, executing and delivering such
UCC financing statements) as shall be necessary to create and perfect valid and enforceable first priority Liens (subject to the
terms of the Intercreditor Agreement) on substantially all of the personal property assets of such Domestic Subsidiary as collateral
security for the Obligations; and
(c) Corporate
Authorization. delivering such proof of corporate or other relevant action, incumbency of officers, opinions of counsel and
other documents as is consistent with those delivered by each Obligor pursuant to Section 6.01 on the Closing Date or as the Agent
shall have reasonably requested.
In the event that any Obligor shall form
or acquire any new Subsidiary, the Company will promptly cause the Capital Securities issued by such Subsidiary to be pledged and
delivered pursuant to the Security Documents promptly after such Subsidiary is formed or acquired (except that, if such Subsidiary
is not a Domestic Subsidiary, the Capital Securities issued by such Subsidiary to be pledged pursuant to the Security Documents
shall be limited to 65% of the outstanding Capital Securities issued by such Subsidiary, provided that, if, as a result of any
change in, or the introduction, adoption, effectiveness or interpretation of, tax laws, rules, regulations, directives or guidelines
of the United States of America after the date of this Agreement, the grant of security interests and Liens by the Company or its
Domestic Subsidiaries in respect of any additional Capital Securities in any non-Domestic Subsidiary to the Agent would not result
in an increase in the aggregate tax liabilities of the Company or such Domestic Subsidiary over what such liabilities would have
been without such security interests and Liens, then, promptly after the change in, or the introduction, adoption, effectiveness
or interpretation of, any such laws, rules, regulations, directives or guidelines, such pledge shall be increased to include all
such additional Capital Securities.
8.18 Intentionally
omitted.
8.19 Amendment
to Organizational Documents. The Company will not and will not permit any Subsidiary to consent to any modification, supplement
or waiver of any of the provisions of any of their Governing Documents in a manner materially adverse to the Banks.
8.20 Capital
Expenditures. The Company will not and will not permit any Subsidiary to make, incur or commit to make (by way of the acquisition
of securities of a Person or otherwise) Capital Expenditures, other than Capital Expenditures for logistical assets in an aggregate
amount not to exceed $10,000,000.
8.21 Transactions
with Affiliates. The Company will not, nor will it permit any of its Subsidiaries to, sell, lease or otherwise transfer any
Property to, or purchase, lease or otherwise acquire any Property from, or otherwise engage in any other transactions with, any
of its Affiliates, except (a) transactions in the ordinary course of business at prices and on terms and conditions not less favorable
to the Company or such Subsidiary than could be obtained on an arm’s length basis from unrelated third parties, (b) transactions
between or among the Company and one or more Guarantors not involving any other Affiliate, (c) any Dividend Payments permitted
by Section 8.13 and (d) Subordinated Debt permitted hereby.
8.22 Environmental
Laws.
(a) The
Company will, and will cause it Subsidiaries to, comply with, all applicable Environmental Laws and obtain and comply with and
maintain Environmental Permits, except in all cases where noncompliance or the failure to obtain Environmental Permits could not
reasonably be expected to have a Material Adverse Effect or except to the extent that the same are being contested in good faith
by appropriate proceedings and for which adequate reserves have been established and maintained on the books and records of the
Company and the applicable Subsidiary in accordance with GAAP.
(b) The
Company will, and will cause it Subsidiaries to, handle, transport and dispose of, and cause all subtenants to handle, transport
and dispose of, all Materials of Environmental Concern in material compliance with all applicable Environmental Laws.
8.23 Take
or Pay Contracts. The Company will not, and will not permit its Subsidiaries to, enter into or be a party to any contract or
arrangement for the purchase of materials, supplies, other properties or services if such contract or arrangement requires that
payment be made by the Company or a Subsidiary regardless of whether such materials, supplies, other properties or services are
delivered or forwarded to it.
8.24 Limitation
on Dividend Clause and Negative Pledge Clauses. The Company will not, and will not permit its Subsidiaries to, enter into with
any Person any agreement, which prohibits or limits the ability of the Company or any of its Subsidiaries to create, incur, assume
or suffer to exist any Lien upon or otherwise transfer any interest in any of its property, assets or revenues, whether now owned
or hereafter acquired except for (i) those prohibitions or limitations set forth in this Agreement or any other Basic Document
or the Committed Credit Agreement and any agreements entered into in connection therewith, the Imbali Facility and any agreements
entered into in connection therewith, (ii) those existing on the Closing Date and set forth on Schedule IV, (iii) with respect
to any Subsidiary pursuant to an agreement relating to any Indebtedness incurred by such Subsidiary on or prior to the date on
which such Subsidiary became a Subsidiary or was acquired by the Company or any of its Subsidiaries and outstanding on such date;
(iv) with respect to purchase money obligations for any property acquired in the ordinary course of business that impose restrictions
on such property, and (v) consisting of customary non-assignment or subletting provisions in leases governing leasehold interests
to the extent such provisions restrict the transfer of the lease or the property leased thereunder, and customary non-assignment
provisions of other contracts entered into in the ordinary course of business..
8.25 Limitation
on Sales and Leasebacks. The Company will not, and will not permit its Subsidiaries to, enter into any arrangement with any
Person providing for (i) the leasing by the Company or any Subsidiary of real or personal property which has been or is to be either
sold or transferred by the Company or such Subsidiary to such Person or to any other Person to whom funds have been or are to be
advanced by such Person on the security of such property or rental obligations of the Company or (ii) the purchase or transfer
of any real or personal property from any Person to the Company or such Subsidiary which has been leased by the Company or such
Subsidiary to such Person, except for (in each case) any transactions, the consideration of which does not exceed in the aggregate
$1,000,000 in any calendar year.
8.26 Accounting
Changes. The Company will not, and will not permit its Subsidiaries to, make any significant change in its accounting treatment
or reporting practices, except as required by GAAP, without providing the Agent with ten (10) days prior written notice of such
change. At the end of any calendar year during which any such change has occurred, the Company shall prepare and deliver to the
Agent an explanatory statement, in form and substance reasonably satisfactory to the Agent, reconciling the previous treatment
or practice with the new treatment or practice.
8.27 Borrowing
Base. The Company hereby agrees that it will not at any time remove Property (or proceeds thereof) from the Borrowing Base
for any reason (other than (i) pursuant to a transaction permitted under Section 8.05(b), (c) or (d) above or (ii) as a result
of becoming ineligible for inclusion therein), provided, that this provision shall not affect or restrict any reallocation
of Borrowing Base assets from or to the Borrowing Base as expressly set forth in the Intercreditor Agreement.
8.28 Deposit
Accounts. The Company will not open any operating deposit accounts located in the United States (other than payroll accounts)
not in existence on the date hereof without the prior written consent (not to be unreasonably withheld) of all Banks (other than,
for the avoidance of doubt, any Affiliate of an Issuing Bank which has issued a Letter of Credit pursuant to the last sentence
of the definition of Issuing Bank).
8.29 Storage
Facilities. Upon the request of the Agent from time to time, the Company shall use commercially reasonable efforts to obtain
control agreements among the Company, each storage facility specified by the Agent and the Agent (in form and substance reasonably
acceptable to the Agent), under which each applicable storage facility shall agree that upon receipt of notice from the Agent of
the occurrence and continuance of an Event of Default or of the demand by the Required Banks for payment of and Cash Collateral
(if applicable) for any Loan Obligations, it shall accept instruction from the Agent and shall no longer accept instruction from
the Company.
8.30 Sanctions.
The Company hereby agrees that it shall and shall cause its Subsidiaries to (i) maintain in effect and enforce policies and procedures
designed to ensure compliance by the Company, any Person that is an Affiliate of the Company, including its Subsidiaries, and,
to the extent commercially reasonable, its agents with applicable Anti-Terrorism Laws and (ii) ensure at all times the truth and
accuracy of the representations and warranties, and adherence to, the covenants, set forth in Section 7.16 hereof.
Section
9.
Events of Default.
9.01 Events
of Default. If one or more of the following events (herein called “Events of Default”) shall occur and be
continuing:
(a) Payment
Default. The Company shall default in the payment when due (whether at stated maturity or upon mandatory or optional prepayment)
including, without limitation, such amounts as may come due as a result of a demand made by any Bank of: (i) any principal of any
Loan or any Reimbursement Obligation, the amount necessary to provide Cash Collateral for any Letter of Credit or otherwise as
required thereby, or (ii) any fee or any other amount payable by it hereunder (other than interest) or under any other Basic Document
or any interest on any Loan or any Reimbursement Obligation and such default in payment (under this clause (ii)) shall continue
unremedied for three (3) Business Days after notice thereof to the Company by the Agent; or
(b) Cross
Default. (i) The Company shall default in the payment when due of any principal of or interest on any of its other Material
Indebtedness or any of its Subsidiaries shall default in the payment when due of any principal of or interest on any of its Material
Indebtedness; or any event specified in any note, agreement, indenture or other document evidencing or relating to any such Material
Indebtedness shall occur if the effect of such event is to cause, or (with the giving of any notice or the lapse of time or both)
to permit the holder or holders of such Material Indebtedness (or a trustee or agent on behalf of such holder or holders) to cause,
such Material Indebtedness to become due, or to be prepaid in full (whether by redemption, purchase, offer to purchase or otherwise),
prior to its stated maturity; or an early termination date (or comparable event) occurs with respect to any Hedging Agreement or
other swap or derivative whether or not pursuant to an ISDA master agreement that constitutes Material Indebtedness; as used herein,
the term “Material Indebtedness” means Indebtedness under the Committed Credit Agreement, Indebtedness under
the Imbali Facility and any other Indebtedness (other than the Obligations) with an outstanding principal balance (or with respect
to Hedging Agreements or other swap or derivative whether or not pursuant to an ISDA master agreement, the aggregate amount (giving
effect to any netting agreements) that the Company or such Subsidiary would be required to pay if an early termination date or
comparable event under such agreement were to occur at such time) of $5,000,000 or more, in any individual case or in the aggregate;
or
(c) Representations
and Warranties. Any representation, warranty or certification made or deemed made herein or in any other Basic Document (or
in any modification or supplement hereto or thereto) by the Company or any of its Subsidiaries, or any certificate furnished to
any Bank or the Agent pursuant to the provisions hereof or thereof, shall prove to have been false or misleading as of the time
made or furnished in any material respect; or
(d) Covenant
Defaults. The Company shall default in the performance of any of its obligations under any of Sections 8.01(g), 8.03(a), 8.05,
8.06, 8.07, 8.08, 8.09, 8.10, 8.11, 8.13, 8.15, 8.19, 8.20, 8.21 or 8.27 hereof or any Obligor shall default in the performance
of any of its obligations under the Security Agreement; or the Company shall default in the performance of its obligations under
Section 8.01(d) hereof and such default shall continue unremedied for a period of five (5) or more Business Days; or the Company
shall default in the performance of any of its obligations in this Agreement or any other Basic Document (other than those already
specified above in this clause (d)) and such default shall continue unremedied for a period of thirty (30) or more days after notice
thereof to the Company by the Agent or any Bank (through the Agent); or
(e) Failure
to Pay Debts. The Company or any of its Subsidiaries shall admit in writing its inability to, or be generally unable to, pay
its debts as such debts become due; or
(f) Voluntary
Insolvency Proceedings. The Company or any of its Subsidiaries shall (i) apply for or consent to the appointment of, or
the taking of possession by, a receiver, custodian, trustee, examiner or liquidator of itself or of all or a substantial part of
its Property, (ii) make a general assignment for the benefit of its creditors, (iii) commence a voluntary case under
the Bankruptcy Code, (iv) file a petition seeking to take advantage of any Law of any jurisdiction (domestic or foreign) relating
to bankruptcy, insolvency, reorganization, liquidation, dissolution, arrangement or winding-up, or composition or readjustment
of debts, (v) fail to controvert in a timely and appropriate manner, or acquiesce in writing to, any petition filed against
it in an involuntary case under the Bankruptcy Code or, in respect of Subsidiaries of the Company which are not Domestic Subsidiaries,
any similar Law relating to bankruptcy, insolvency, reorganization, liquidation, dissolution, arrangement or winding up, or composition
or readjustment of debts, or (vi) take any corporate action for the purpose of effecting any of the foregoing; or
(g) Involuntary
Insolvency Proceedings. A proceeding or case shall be commenced, without the application or consent of the Company or any of
its Subsidiaries, in any court of competent jurisdiction, seeking (i) its reorganization, liquidation, dissolution, arrangement
or winding-up, or the composition or readjustment of its debts, (ii) the appointment of a receiver, custodian, trustee, examiner,
liquidator or the like of the Company or any of its Subsidiaries or of all or any substantial part of its Property, or (iii) similar
relief in respect of the Company or any of its Subsidiaries under any present or future Law of any jurisdiction (domestic or foreign)
relating to bankruptcy, insolvency, reorganization, winding-up, or composition or adjustment of debts, and such proceeding or case
shall continue undismissed, or an order, judgment or decree approving or ordering any of the foregoing shall be entered and continue
unstayed and in effect, for a period of 60 or more days; or an order for relief against the Company or any of its Subsidiaries
shall be entered in an involuntary case under the Bankruptcy Code; or
(h) Judgment
Default. A final judgment or judgments for the payment of money in excess of $1,000,000 (exclusive of judgment amounts fully
covered by insurance where the insurer has admitted liability in respect of such judgment) shall be rendered by one or more courts,
administrative tribunals or other bodies having jurisdiction against the Company or any of its Subsidiaries and the same shall
not be discharged (or provision shall not be made for such discharge), or a stay of execution thereof shall not be procured, within
30 days from the date of entry thereof and the Company or any of its Subsidiaries shall not, within said period of 30 days, or
such longer period during which execution of the same has been stayed, appeal therefrom and cause the execution thereof to be stayed
during such appeal; or
(i) ERISA
Events. The Company or any ERISA Affiliate shall incur any liability to a Plan, a Multiemployer Plan or PBGC (or any combination
of the foregoing) that would (either individually or in the aggregate) have a Material Adverse Effect; or
(j) Change
of Control. (i) The Principal Shareholders shall cease to own beneficially and of record at least 20% of the issued and outstanding
capital stock having voting power to elect members of the board of directors of the Company, (ii) Nathan Kahn shall cease
to be President of the Company and a successor acceptable to the Required Banks shall not have been appointed to such position
within 90 days thereafter (such determination of acceptability by the Required Banks to be made for purposes of waiving any resulting
Default only, the Company agreeing that it is solely responsible for selecting an appropriate replacement) or (iii) the Persons
who were members of the board of directors of the Company on the Closing Date (together with any new directors whose election to
such board of directors or whose nomination for election was approved by a vote of a majority of such members of the board of directors
or members whose election or nomination for election was previously so approved) cease for any reason to constitute a majority
of the members of the board of directors of the Company; or
(k) Security
Documents; Basic Documents. The Liens created by the Security Documents shall at any time not constitute a valid and perfected
Lien on the Collateral intended to be covered thereby (to the extent perfection by filing, registration, recordation or possession
is required herein or therein) in favor of the Banks, free and clear of all other Liens (other than Liens permitted under Section
8.06 hereof or under the respective Security Documents), or, except for expiration in accordance with its terms, any of the Basic
Documents shall for whatever reason be terminated or cease to be in full force and effect, or the enforceability thereof shall
be contested by any Obligor, or any Obligor shall assert in writing that any Basic Document is unenforceable; or
(l) Subordination
Provisions. Any subordination provision of any Indebtedness subordinated to the Loan Obligations shall cease, for any reason,
to be in full force and effect, or the Company or any of its Subsidiaries shall so assert in writing, unless such Indebtedness
would, at all times thereafter, be otherwise permitted under Section 8.07; or
(m) Quad
Avenue Loan Agreement. 6900 Quad Avenue, LLC shall default in the performance of its obligations under Section 4(a) of the
Quad Avenue Loan Agreement; or
(n) Committed
Credit Agreement Disclosure. At any time, the Committed Credit Agreement shall be amended, modified or waived in a manner which
restricts the right of the Committed Facility Agent to share with the Agent and the Banks, borrowing base reports delivered under
the Committed Credit Agreement and related information;
THEREUPON, WITHOUT LIMITING THE RIGHTS
OF THE BANKS UNDER SECTION 2.12 AND THE RIGHT OF EACH BANK TO DEMAND PAYMENT OF THE LOANS AND REIMBURSEMENT OBLIGATIONS AND CASH
COLLATERAL FOR LETTER OF CREDIT LIABILITIES AT ANY TIME IN ITS SOLE DISCRETION: (1) in the case of an Event of Default other
than one referred to in clause (f) or (g) of this Section 9, the Agent may with the consent of the Required Banks,
and, upon request of the Required Banks shall by notice to the Company, terminate the Revolving Loan Line Portions and/or declare
the principal amount then outstanding of, and the accrued interest on, the Loans, the Reimbursement Obligations and all other Loan
Obligations (including any amounts payable under Section 5.04 or 5.05 hereof) to be forthwith due and payable, whereupon
such amounts shall be immediately due and payable without presentment, demand, protest or other formalities of any kind, all of
which are hereby expressly waived by the Company; and (2) in the case of the occurrence of an Event of Default referred to
in clause (f) or (g) of this Section 9, the Revolving Loan Line Portions shall automatically be terminated and the
principal amount then outstanding of, and the accrued interest on, the Loans, the Reimbursement Obligations and all other Loan
Obligations (including any amounts payable under Section 5.01 and 5.04 hereof) shall automatically become immediately due
and payable without presentment, demand, protest or other formalities of any kind, all of which are hereby expressly waived by
the Company.
9.02 Cover
for Contingent Obligations. In addition, upon the occurrence and during the continuance of any Event of Default (if the Agent
has declared the principal amount then outstanding of, and accrued interest on, the Loans and all other Loan Obligations to be
due and payable), the Company agrees that it shall, if requested by the Agent or the Required Banks through the Agent (and, in
the case of any Event of Default referred to in clause (f) or (g) of this Section 9, forthwith, without any demand
or the taking of any other action by the Agent or such Banks) and, upon a DEMAND therefor by the Required Banks (in their sole
discretion) the Company agrees that it shall, provide cover for the Letter of Credit Liabilities by depositing with the Agent Cash
Collateral in an amount equal to 103% of the then aggregate undrawn face amount of all Letters of Credit, which funds shall be
held by the Agent in the Collateral Account as collateral security for the Obligations.
9.03 IN
NO EVENT SHALL ANY PROVISION OF THIS AGREEMENT PROVIDING FOR SPECIFIC EVENTS OF DEFAULT BE CONSTRUED TO WAIVE, LIMIT OR OTHERWISE
MODIFY THE DEMAND NATURE OF (I) THE LOANS WHICH MAY BE MADE PURSUANT TO THIS AGREEMENT AND (II) THE REQUIREMENT TO CASH COLLATERALIZE
LETTERS OF CREDIT WHICH MAY BE ISSUED PURSUANT TO THIS AGREEMENT, AND THE COMPANY HEREBY ACKNOWLEDGES AND AGREES THAT EACH BANK’S
RIGHT TO DEMAND PAYMENT OR CASH COLLATERALIZATION AT ANY TIME IS ABSOLUTE AND UNCONDITIONAL.
Section
10.
The Agent.
10.01 Appointment,
Powers and Immunities. Each Bank hereby irrevocably appoints and authorizes Rabobank to act as agent on its behalf, and on
behalf of each of its Affiliates who are owed Obligations (each such Affiliate by acceptance of the benefits of the Basic Documents
hereby ratifying such appointment), hereunder and under the other Basic Documents with such powers as are specifically delegated
to the Agent by the terms of this Agreement and of the other Basic Documents, together with such other powers as are reasonably
incidental thereto. The Agent (which term as used in this sentence and in Section 10.05 and the first sentence of Section 10.06
hereof shall include reference to its Affiliates and its own and its Affiliates’ officers, directors, employees and agents):
(a) has no duties or responsibilities except those expressly set forth in this Agreement and in the other Basic Documents,
and shall not by reason of this Agreement or any other Basic Document be a trustee or fiduciary for any Secured Party; (b) shall
not be responsible to any Secured Party for any recitals, statements, representations or warranties contained in this Agreement
or in any other Basic Document, or in any certificate or other document referred to or provided for in, or received by any of them
under, this Agreement or any other Basic Document, or for the value, validity, effectiveness, genuineness, enforceability or sufficiency
of this Agreement or any other Basic Document or any other document referred to or provided for herein or therein or for any failure
by any Obligor or any other Person to perform any of its obligations hereunder or thereunder; (c) shall not be required to
initiate or conduct any litigation or collection proceedings hereunder or under any other Basic Document, unless so directed by
the Required Banks; (d) shall not be required to act as collateral agent hereunder or otherwise be responsible for any collateral
security granted in connection herewith except with respect to any collateral that cannot be perfected by filing Uniform Commercial
Code financing statements and is required to be delivered to the Agent under the Basic Documents; and (e) shall not be responsible
for any action taken or omitted to be taken by it hereunder or under any other Basic Document or under any other document or instrument
referred to or provided for herein or therein or in connection herewith or therewith, except for its own gross negligence or willful
misconduct. The Agent may employ agents and attorneys-in-fact and shall not be responsible for the negligence or misconduct of
any such agents or attorneys-in-fact selected by it in good faith. The Agent may deem and treat the Banks named in the Register
as the “Banks” hereunder for all purposes hereof unless and until a notice of the assignment or transfer thereof has
been filed with the Agent.
10.02 Reliance
by Agent. The Agent shall be entitled to rely upon any certification, notice or other communication (including any thereof
by telephone, telecopy, telex, telegram or cable) believed by it to be genuine and correct and to have been signed or sent by or
on behalf of the proper Person or Persons, and upon advice and statements of legal counsel, independent accountants and other experts
selected by the Agent. As to any matters not expressly provided for by this Agreement or any other Basic Document, the Agent shall
in all cases be fully protected in acting, or in refraining from acting, hereunder or thereunder in accordance with instructions
given by the Required Banks and such instructions of such Banks and any action taken or failure to act pursuant thereto shall be
binding on all of the Banks.
10.03 Defaults.
The Agent shall not be deemed to have knowledge or notice of the occurrence of a Default (other than payment Defaults) unless the
Agent has received notice from a Bank or the Company specifying such Default and stating that such notice is a “Notice of
Default”. In the event that the Agent receives such a notice of the occurrence of a Default or becomes aware of a payment
Default, the Agent shall give prompt notice thereof to the Banks. The Agent shall (subject to Section 10.07 hereof) take such
action with respect to such Default as shall be directed by the Required Banks, provided that, unless and until the Agent
has received such directions, the Agent may (but shall not be obligated to) take such action, or refrain from taking such action,
with respect to such Default as it shall deem advisable in the best interest of the Banks except to the extent that this Agreement
expressly requires that such action be taken, or not be taken, only with the consent or upon the authorization of the Required
Banks.
10.04 Rights
as a Bank. With respect to its Revolving Loan Line Portions and the Loans made by it, Rabobank (and any successor acting as
Agent) in its capacity as a Bank hereunder has the same rights and powers hereunder as any other Bank and may exercise the same
as though it were not acting as the Agent, and the term “Bank” or “Banks” shall, unless the context otherwise
indicates, include the Agent in its individual capacity. Rabobank (and any successor acting as Agent) and its affiliates may (without
having to account therefor to any Bank) accept deposits from, lend money to, make investments in and generally engage in any kind
of banking, trust or other business with the Company (and any of its Subsidiaries or Affiliates) as if it were not acting as the
Agent, and Rabobank and its affiliates may accept fees and other consideration from the Company for services in connection with
this Agreement or otherwise without having to account for the same to the Banks.
10.05 Indemnification.
The Banks severally agree to indemnify the Agent (to the extent not reimbursed under Section 11.03 hereof, but without limiting
the obligations of the Company under said Section 11.03) and each of the Agent’s respective officers, directors, employees
and agents, ratably in accordance with their respective Revolving Loan Line Portions, for any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind and nature whatsoever that
may be imposed on, incurred by or asserted against the Agent in its capacity as Agent (including by any Secured Party) arising
out of or by reason of any investigation in or in any way relating to or arising out of this Agreement or any other Basic Document
or any other documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby (including
the costs and expenses that the Company is obligated to pay under Section 11.03 hereof but excluding, unless a Default exists,
normal administrative costs and expenses incident to the performance of its agency duties hereunder) or the enforcement of any
of the terms hereof or thereof or of any such other documents, provided that no Bank shall be liable for any of the foregoing
to the extent they arise from the gross negligence or willful misconduct of the party to be indemnified. The Banks severally agree
to indemnify each Fronting Bank and each of their respective officers, directors, employees and agents (to the extent not reimbursed
under Section 11.03 hereof, but without limiting the obligations of the Company under said Section 11.03), ratably in
accordance with their respective Revolving Loan Line Portions, for any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind and nature whatsoever that may be imposed on, incurred
by or asserted against any of them in their capacity as a Fronting Bank arising out of or by reason of any investigation in or
in any way relating to or arising out of this Agreement or any other Basic Document or any other documents contemplated by or referred
to herein or therein or the transactions contemplated hereby or thereby (including the costs and expenses that the Company is obligated
to pay under Section 11.03 hereof but excluding, unless a Default exists, normal administrative costs and expenses incident
to the performance of its agency duties hereunder) or the enforcement of any of the terms hereof or thereof or of any such other
documents, provided that no Bank shall be liable for any of the foregoing to the extent they arise from the gross negligence
or willful misconduct of the party to be indemnified.
10.06 Non-Reliance
on Agent and Other Banks. Each Bank agrees that it has, independently and without reliance on the Agent or any other Bank,
and based on such documents and information as it has deemed appropriate, made its own credit analysis of the Company and decision
to enter into this Agreement and that it will, independently and without reliance upon the Agent or any other Bank, and based on
such documents and information as it shall deem appropriate at the time, continue to make its own analysis and decisions in taking
or not taking action under this Agreement or under any other Basic Document. The Agent shall not be required to keep itself informed
as to the performance or observance by any Obligor of this Agreement or any of the other Basic Documents or any other document
referred to or provided for herein or therein or to inspect the Properties or books of the Company. Except for notices, reports
and other documents and information expressly required to be furnished to the Banks by the Agent hereunder or under the Security
Documents, the Agent shall not have any duty or responsibility to provide any Bank with any credit or other information concerning
the affairs, financial condition or business of the Company (or any of its Affiliates) that may come into the possession of the
Agent or any of its Affiliates.
10.07 Failure
to Act. Except for action expressly required of the Agent hereunder and under the other Basic Documents, the Agent shall in
all cases be fully justified in failing or refusing to act hereunder and thereunder unless it shall receive further assurances
to its satisfaction from the Banks of their indemnification obligations under Section 10.05 hereof against any and all liability
and expense that may be incurred by it by reason of taking or continuing to take any such action.
10.08 Resignation
or Removal of Agent. Subject to the appointment and acceptance of a successor Agent as provided below, the Agent may resign
at any time by giving notice thereof to the Banks and the Company, and the Agent may be removed at any time with or without cause
by the Required Banks. Upon any such resignation or removal, the Required Banks have the right to appoint a successor Agent, subject
to the Company’s approval of such successor Agent. If no successor Agent has been so appointed by the Required Banks (or
if the Company shall fail to approve such a successor Agent) and has accepted such appointment within 30 days after the retiring
Agent’s giving of notice of resignation or the Required Banks’ removal of the retiring Agent, then the retiring Agent
may, on behalf of the Banks, subject to the Company’s approval, appoint a successor Agent, that shall be a bank that has
an office in New York, New York or assign all of its rights and delegate all of its obligations hereunder and under the other Basic
Documents to the Banks. Upon the acceptance of any appointment as Agent hereunder by a successor Agent, or the assignment and delegation
to the Banks as set forth in the preceding sentence, such successor Agent (or the Banks, as applicable) shall thereupon succeed
to and become vested with all the rights, powers, privileges and duties of the retiring Agent, and the retiring Agent shall be
discharged from its duties and obligations hereunder. After any retiring Agent’s resignation or removal hereunder as Agent,
the provisions of this Section 10 shall continue in effect for its benefit in respect of any actions taken or omitted to be
taken by it while it was acting as the Agent.
10.09 Agency
Fee. So long as the Revolving Loan Line Portions are in effect and until payment in full of the Obligations, the Company will
pay to the Agent an agency fee as mutually agreed upon.
10.10 Consents
under Other Basic Documents. Except as otherwise provided in Section 11.04 hereof, the Agent may, with the prior consent of
the Required Banks (but not otherwise), consent to any modification, supplement or waiver under any of the Basic Documents, provided
that, without the prior consent of each Bank, the Agent shall not (except as provided herein or in the Security Documents) release
any Collateral or otherwise terminate any Lien under any Basic Document or agree to additional obligations being secured by such
Collateral (unless the Lien for such additional obligations shall be junior and subordinate to the Lien in favor of the other obligations
secured by such Basic Document).
10.11 Pendency
of Insolvency. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement,
adjustment, composition or other judicial proceeding relative to any Obligor, the Agent (irrespective of whether the principal
of any Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether
the Agent shall have made any demand on any Obligor) shall be entitled and empowered, by intervention in such proceeding or otherwise:
(a) Filing
Claims. to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Obligations
that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the
Secured Parties (including any claim for the reasonable compensation, expenses, disbursements and advances of the Banks and the
Agent and their respective agents and counsel and all other amounts due the Banks and the Agent under Section 11.03) allowed in
such judicial proceeding; and
(b) Collection
of Funds. 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 Bank to
make such payments to the Agent and, in the event that the Agent shall consent to the making of such payments directly to the Secured
Parties, to pay to the Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Agent
and its agents and counsel, and any other amounts due the Agent hereunder. Nothing contained herein shall be deemed to authorize
the Agent to authorize or consent to or accept or adopt on behalf of any Bank any plan of reorganization, arrangement, adjustment
or composition affecting the Obligations or the rights of any Bank or to authorize the Agent to vote in respect of the claim of
any Bank in any such proceeding.
10.12 Permitted
Release of Collateral.
(a) Automatic
Release. If any Obligor sells any Collateral which is permitted to be disposed of under Section 8.05, the Liens in the Collateral
granted to the Agent under the Basic Document shall automatically terminate and the Collateral will be disposed of free and clear
of all Liens of the Agent.
(b) Written
Release. The Agent is authorized to release of record, and shall release of record, any Liens encumbering any Collateral that
is permitted to be sold upon an authorized officer of the Company certifying in writing to the Agent that the proposed disposition
of Collateral is permitted under Section 8.05. To the extent the Agent is requested to execute any release documents or other documents
evidencing the termination of Liens in accordance with the immediately preceding sentence, the Agent shall do so promptly upon
request of the Company without the consent or further agreement of any Secured Party. If the disposition of Collateral is not permitted
under or pursuant to the Basic Documents, the Liens encumbering the Collateral may only be released in accordance with the provisions
of Section 11.04.
(c) Other
Authorized Release and Subordination. The Agent is irrevocably authorized by the Secured Parties, without any consent or further
agreement of any Secured Party to: (i) subordinate or release the Liens granted to the Agent to secure the Obligations with respect
to any property which is permitted to be subject to a Lien of the type described in paragraphs (g) or (i) of Section 8.06
and (ii) release the Agent’s Liens when all the Revolving Loan Line Portions have terminated, all the Obligations have been
paid in full and otherwise satisfied and all Letters of Credit have expired or been terminated.
10.13 Powers
and Immunities of Fronting Banks. Neither any Fronting Bank nor any of their respective Affiliates, officers, directors, agents
or employees shall be liable for any action taken or omitted to be taken by any of them hereunder or otherwise in connection with
any Basic Document except for its or their own gross negligence or willful misconduct. Without limiting the generality of the preceding
sentence, no Fronting Bank (a) shall have any duties or responsibilities except those expressly set forth in the Basic Documents,
and shall by reason of any Basic Document be a trustee or fiduciary for any Bank or for the Agent, (b) shall be required to initiate
any litigation or collection proceedings under any Basic Document, and (c) shall be responsible to any Bank or the Agent for any
recitals, statements, representations, or warranties contained in any Basic Document, or any certificate or other documentation
referred to or provided for in, or received by any of them under, any Basic Document, or for the value, validity, effectiveness,
enforceability, or sufficiency of any Basic Document or any other documentation referred to or provided for therein or for any
failure by any Person to perform any of its obligations thereunder. Each Fronting Bank: (a) may consult with legal counsel (including
counsel for the Company or the Agent), independent public accountants, and other experts selected by it and shall not be liable
for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants, or
experts, and (b) shall incur no liability under or in respect of any Basic Document by acting upon any notice, consent, certificate,
or other instrument or writing believed by it to be genuine and signed or sent by the proper party or parties. As to any matters
not expressly provided for by any Basic Document, each Fronting Bank shall in all cases be fully protected in acting, or in refraining
from acting, hereunder in accordance with instructions signed by the Required Banks, and such instructions of the Required Banks
and any action taken or failure to act pursuant thereto shall be binding on all of the Banks and the Agent; provided, however,
that a Fronting Bank shall not be required to take any action which it reasonably believes exposes it to personal liability or
which it reasonably believes is contrary to any Basic Document or applicable Law.
10.14 Perfection
by Possession and Control; Deposit Accounts. The Agent hereby appoints each of the other Banks to serve as bailee to perfect
Agent’s Liens in any Collateral in the possession of any such other Bank. Each Bank possessing any Collateral agrees to so
act as bailee for the Agent in accordance with the terms and provisions hereof. In furtherance of the forgoing, each Bank acknowledges
that certain of the Obligors may maintain deposit accounts at one or more of the Banks (all such accounts, herein the “Obligor
Accounts”). Unless a Bank has entered into a control agreement with the Agent with respect to the Obligor Accounts (in
which event such control agreement shall take precedent over the provisions of this Section 10.14 with respect to the Obligor Accounts
covered thereby), each Bank agrees to hold its Obligor Accounts as bailee for the Agent to perfect the Agent’s Liens therein.
Prior to the receipt by a Bank of a written notice of an Event of Default (or that the Required Banks has demanded payment of and
Cash Collateral (if applicable) for any Loan Obligations) from the Agent, the Obligors are entitled to make withdrawals from the
Obligor Accounts and make deposits into all the Obligor Accounts. When a Bank has received a written notice of an Event of Default
(or that the Required Banks have demanded payment of and Cash Collateral (if applicable) for any Loan Obligations) from the Agent
and as long as such Event of Default exists (or such demand shall not have been withdrawn), other than in respect of any payroll
accounts, (a) the Agent shall be the only party entitled to make withdrawals from or otherwise give any direction with respect
to the Obligor Accounts and each Bank agrees to comply with the instructions originated by the Agent directing deposition of the
funds in or relating to the Obligor Accounts it holds without further consent by any Obligor, and (b) each Bank shall transfer,
in immediately available funds by wire transfer to the Agent, the amount of the collected funds credited to the Obligor Accounts
it holds and deliver to the Agent all moneys or instruments relating thereto or held therein and any other Collateral at any time
the Agent demands payment or delivery thereof by such written notice to such Bank. Each Obligor agrees that each Bank is authorized
to immediately deliver all the Collateral to the Agent upon the Bank’s receipt of such notice from the Agent. No Bank (other
than the Agent acting for the benefit of the Secured Parties) shall exercise any right of set–off or banker’s lien
against any Obligor Account for any obligations other than the Obligations; provided that a Bank shall be entitled to charge, or
set–off against an Obligor Account and retain for its own account, any customary fees, costs, charges and expenses owed to
it in connection with the opening, operating and maintaining such Obligor Account and for the amount of any item credited to the
Obligor Account that is subsequently returned for any reason.
10.15 Bank
Affiliates Rights. By accepting the benefits of the Basic Documents, any Affiliate of a Bank that is owed any Obligation is
bound by the terms of the Basic Documents. But notwithstanding the foregoing: (a) neither the Agent, any Bank nor any Obligor shall
be obligated to deliver any notice or communication required to be delivered to any Bank under any Basic Document to any Affiliate
of any Bank; and (b) no Affiliate of any Bank that is owed any Obligation shall be included in the determination of the Required
Banks or entitled to consent to, reject, or participate in any manner in any amendment, waiver or other modification of any Basic
Document. The Agent shall not have any liabilities, obligations or responsibilities of any kind whatsoever to any Affiliate of
any Bank who is owed any Obligation. The Agent shall deal solely and directly with the related Bank of any such Affiliate in connection
with all matters relating to the Basic Documents. The Obligation owed to such Affiliate shall be considered the Obligation of its
related Bank for all purposes under the Basic Documents and such Bank shall be solely responsible to the other parties hereto for
all the obligations of such Affiliate under any Basic Document.
10.16 Other
Agents. Certain of the Banks may have been designated as syndication agents, documentation agents or other similar designation
in recognition of the level of their respective Revolving Loan Line Portions. No Bank, other than the Bank serving as Agent, is
an agent for the Banks nor shall any such Bank have any obligation hereunder other than those existing in its capacity as a Bank.
10.17 Intercreditor
Agreement.
(a) Each
Bank hereby authorizes the Agent to enter into the Intercreditor Agreement on its behalf and agrees to be bound by the terms thereof.
(b) Each
of the Company and the Banks hereby authorizes the Agent to share with the Committed Facility Agent (and the lenders under the
Committed Credit Agreement), copies of all Borrowing Base Certificates and all schedules and amendments thereto (including, without
limitation, summaries and detail of all credit extensions hereunder) and any amendments to this Agreement or the other Basic Documents.
Section
11.
Miscellaneous.
11.01 Waiver.
No failure on the part of the Agent or any Bank to exercise and no delay in exercising, and no course of dealing with respect to,
any right, power or privilege under this Agreement or any other Basic Document shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, power or privilege under this Agreement or any other Basic Document preclude any other
or further exercise thereof or the exercise of any other right, power or privilege. The remedies provided herein are cumulative
and not exclusive of any remedies provided by Law. No waiver of any provision of any Basic Document or consent to any departure
by any Obligor therefrom shall in any event be effective unless the same shall be permitted by Section 11.04, and then such waiver
or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality
of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless
of whether the Agent or any Bank may have had notice or knowledge of such Default at the time.
11.02 Notices.
(a) General
Address for Notices. All notices, requests and other communications (“Communications”) provided for herein
and under the other Basic Documents (including any modifications of, or waivers, requests or consents under, this Agreement) shall
be given or made in writing (including by facsimile) delivered to the intended recipient at the “Address for Notices”
specified below its name on the signature pages hereof; or, as to any party, at such other address as shall be designated by such
party in a notice to each other party. Except as otherwise provided in this Agreement, all such communications shall be deemed
to have been duly given (i) if transmitted by facsimile, when the confirmation of transmission thereof is received by the transmitter,
(ii) when personally delivered or (iii) in the case of a mailed notice, upon receipt, in each case given or addressed as aforesaid.
The parties hereto agree that delivery of an executed counterpart of a signature page to this Agreement and each other Basic Document
by facsimile (or electronic transmission) shall be effective as delivery of an original executed counterpart of this Agreement
or such other Basic Document.
(b) Electronic
Communications. Communications to the Banks under the Basic Documents may be delivered or furnished by electronic communications
pursuant to procedures approved by the Agent; provided that the foregoing shall not apply to notices pursuant to Section 2.01 or
4.05 unless otherwise agreed by the Agent and the applicable Bank. The Agent or the Company may, in its discretion, agree to accept
notices and other communications to it under the Basic Documents by electronic communications pursuant to procedures approved by
it; provided that approval of such procedures may be limited to particular notices or Communications.
(c) Electronic
Transmission System. The Company and the Banks agree that the Agent may make the Communications available to the Banks and
the Company by posting the Communications on Intralinks or a substantially similar electronic transmission system (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 COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS
OR OMISSIONS IN THE COMMUNICATIONS. 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 THE AGENT PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL THE AGENT OR ANY OF ITS AFFILIATES
OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, AGENTS OR EMPLOYEES (COLLECTIVELY, THE “AGENT PARTIES”) HAVE ANY LIABILITY
TO ANY OBLIGOR, ANY BANK OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL
OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF ANY OBLIGOR’S OR THE
AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND
IN A FINAL NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT.
(d) Communications
Through the Platform. Each Bank agrees that notice to it (as provided in the next sentence) specifying that the Communications
have been posted to the Platform shall constitute effective delivery of the Communications to such Bank for purposes hereof. Each
Bank agrees to provide to the Agent in writing (including by electronic communication), promptly after the date of this Agreement,
an e-mail address to which the foregoing notice may be sent by electronic transmission and agrees that the foregoing notice may
be sent to such e-mail address.
11.03 Expenses,
etc. The Company agrees to pay or reimburse each of the Banks and the Agent for: (a) all reasonable and documented out-of-pocket
costs and expenses of the Agent (including the reasonable and documented fees and expenses of Emmet, Marvin & Martin, LLP)
in connection with (i) the negotiation, preparation, execution, delivery and administration of this Agreement and the other
Basic Documents and the extension of credit hereunder and (ii) the negotiation or preparation of any modification, supplement
or waiver of any of the terms of this Agreement or any of the other Basic Documents (whether or not consummated); (b) all
reasonable out-of-pocket costs and expenses of each Bank and the Agent (including the reasonable fees and expenses of legal counsel)
in connection with (i) any Default and any enforcement, protection of rights or collection proceedings resulting therefrom,
including all manner of participation in or other involvement with (x) bankruptcy, insolvency, receivership, foreclosure, winding
up or liquidation proceedings, (y) judicial or regulatory proceedings and (z) workout, restructuring or other negotiations
or proceedings (whether or not the workout, restructuring or transaction contemplated thereby is consummated), (ii) the enforcement
of this Section 11.03 and (iii) the issuance, amendment, renewal or extension of any Letter of Credit or demand for payment
thereunder; and (c) all transfer, stamp, documentary or other similar taxes, assessments or charges levied by any governmental
or revenue authority in respect of this Agreement or any of the other Basic Documents or any other document referred to herein
or therein and all costs, expenses, taxes, assessments and other charges incurred in connection with any filing, registration,
recording or perfection of any security interest contemplated by any Basic Document or any other document referred to therein.
The Company hereby agrees
to indemnify the Agent and each Bank and their respective directors, officers, employees, attorneys, partners and agents (each,
an “Indemnitee”) from, and hold each of them harmless against, any and all losses, liabilities, claims, damages
or expenses incurred by or asserted against any of them arising out of or by reason of (i) the execution or delivery of this
Agreement, any other Basic 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,
(ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by any Issuing
Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly
comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of Materials of Environmental
Concern on or from any property owned or operated by the Company or any of its Subsidiaries, or any liability under any Environmental
Law related in any way to the Company 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 Company, and regardless of whether any Indemnitee hereunder is a party thereto, provided that such Indemnity
shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses
(x) are 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 (y) result from a claim brought by the Company or any other Obligor
against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other Basic Document,
if the Company or such Obligor has obtained a final and nonappealable judgment in its favor on such claim as determined by a court
of competent jurisdiction. This Section 11.03 shall not apply with respect to Taxes to the extent that they are subject to Section
5.06 hereof.
11.04 Amendments,
Etc. (a) Neither this Agreement nor any other Basic Document nor any provision hereof or thereof may be waived, amended or
modified except in the case of this Agreement, pursuant to an agreement or agreements in writing entered into by the Company, the
Agent and the Required Banks or, in the case of any other Basic Document, pursuant to an agreement or agreements in writing entered
into by the Agent and the Obligor or Obligors that are parties thereto, in each case with the consent of the Required Banks; provided
that no such agreement shall (i) increase any Revolving Loan Line Portion of any Bank without the written consent of such Bank,
(ii) reduce the principal amount of any Loan or Reimbursement Obligations or reduce the amount or rate of interest thereon, or
reduce the amount or rate of any fees payable hereunder, without the written consent of each Bank affected thereby, (iii) postpone
the scheduled date or due date of the payment of the principal amount of any Loan (including any prepayment required by Section
2.11), Reimbursement Obligations, or any interest thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse
any such payment, or postpone the scheduled date of expiration of any Revolving Loan Line Portion, without the written consent
of each Bank affected thereby, (iv) alter Section 4.07 or 4.08 or the manner in which payments or prepayments of principal, interest
or other Obligations shall be applied as among the Secured Parties, without the written consent of each Bank, (v) change any of
the provisions of this Section, the definition of the term “Required Banks”, the last sentence of Section 4.09 or any
other provision hereof specifying the number or percentage of Banks required to waive, amend or modify any rights hereunder or
make any determination or grant any consent hereunder, without the written consent of each Bank, (vi) modify Section 4.03 without
the consent of each Bank, (vii) amend the definition of the term “Borrowing Base”, any defined term used therein, Section
2.11, Section 2.12 or any rights or obligations of Declining Banks without the consent of each Bank, (viii) release any Guarantor
from any of its guarantee obligations without the written consent of each Bank, (ix) amend, modify or waive the Intercreditor Agreement
without the written consent of each Bank (other than, for the avoidance of doubt, any Affiliate of an Issuing Bank which has issued
a Letter of Credit pursuant to the last sentence of the definition of Issuing Bank) or (x) except as permitted by Section 10.12,
under the Intercreditor Agreement or in connection with the exercise of its rights and remedies therein after an Event of Default
or demand by any Bank for payment of and Cash Collateral (if applicable) for any Loan Obligations, release all or substantially
all of the Collateral (or any Collateral, the release of which would result in an excess of the then aggregate outstanding amount
of the Credit Exposure over the Borrowing Base) without the written consent of each Bank; and provided further, that no such agreement
shall amend, modify or otherwise affect the rights or duties of the Agent or any Fronting Bank hereunder without the prior written
consent of the Agent or the applicable Fronting Bank, as the case may be.
(a) Notwithstanding
anything to the contrary herein, any Bank that is a Defaulting Bank shall not have any right to approve or disapprove of any amendment,
waiver or consent hereunder; provided, however, except as otherwise provided in Section 4.12, (i) the Revolving
Loan Line Portion of such Defaulting Bank may not be increased or extended without the consent of such Defaulting Bank, (ii) the
Revolving Loan Line Portion Percentage of such Defaulting Bank may not be increased without the consent of such Defaulting Bank,
and (iii) no payment to such Defaulting Bank shall be decreased or postponed without the consent of such Defaulting Bank.
(b) Notwithstanding
anything to the contrary herein, (A) a Declining Bank shall not have any right to (1) consent to or approve any amendment, modification
or waiver or (2) direct, or consent to or approve any direction to, the Agent to take or refrain from taking any action hereunder,
in each case which does not directly affect either (x) such Declining Bank or any Loan made by it or Letter of Credit which it
has issued or in which it has participated or (y) Collateral securing Obligations owed to such Declining Bank or guarantees thereof
and, (B) the preceding clause (A) shall not limit any right of a Declining Bank to consent to or approve any amendment, modification
or waiver referred to in Section 11.04(a)(i), (ii), (iii), (v) or (vii) solely to the extent relating to a Loan or Letter of Credit
made, issued or participated in by such Declining Bank.
11.05 Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and permitted assigns (including any Affiliate of an Issuing Bank that issues any Letter of Credit, any Affiliate of a Bank who
is otherwise owed any of the Obligations and any party entitled to indemnification hereunder), except that (i) no Obligor may assign
or otherwise transfer any of its rights or obligations hereunder or under any other Basic Document without the prior written consent
of each Bank (and any attempted assignment or transfer by any Obligor without such consent shall be null and void) and (ii) no
Bank may assign or otherwise transfer any of its rights or obligations hereunder except in accordance with Section 11.06 (and any
attempted assignment or transfer by any Bank that is not in accordance with this Section 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 (including any Affiliate of an Issuing Bank that issues any Letter of Credit and any Affiliate
of a Bank who is otherwise owed any of the other Obligations), and, to the extent expressly contemplated hereby, officers, directors,
attorneys, agents, and employees of each of the Agent and the Banks) any legal or equitable right, remedy or claim under or by
reason of this Agreement.
11.06 Assignments
and Participations.
(a) Assignments
by Banks.
(i) Assignments
Generally. Subject to the conditions set forth in clause (ii) below, any Bank may assign to one or more assignees all or a
portion of its rights and obligations under this Agreement (including all or a portion of its Revolving Loan Line Portion and the
Loans at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld or delayed) of:
(A) the
Company, provided that no consent of the Company shall be required for an assignment to a Bank, an Affiliate of a Bank or an Approved
Fund or, if an Event of Default exists or a demand by the Required Banks for payment of and Cash Collateral (if applicable) for
any Loan Obligations has been made, any other assignee; and
(B) the
Agent, provided that no consent of the Agent shall be required for an assignment of any Revolving Loan Line Portion to an assignee
that is a Bank with a Revolving Loan Line Portion immediately prior to giving effect to such assignment.
(ii) Certain
Conditions to Assignments. Assignments by the Banks shall be subject to the following additional conditions:
(A) except
in the case of an assignment to a Bank or an Affiliate of a Bank or an assignment of the entire remaining amount of the assigning
Bank’s Revolving Loan Line Portion or Loans, the amount of the Revolving Loan Line Portion or Loans of the assigning Bank
subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered
to the Agent) shall not be less than $5,000,000 unless each of the Company and the Agent otherwise consent, provided that no such
consent of the Company shall be required if an Event of Default exists or a demand by the Required Banks for payment of and Cash
Collateral (if applicable) for any Loan Obligations has been made;
(B) each
partial assignment of any Revolving Loan Line Portion or Loans shall be made as an assignment of a proportionate part of all the
assigning Bank’s rights and obligations under this Agreement in respect of such Revolving Loan Line Portion and Loans;
(C) the
parties to each assignment shall execute and deliver to the Agent an Assignment and Assumption in substantially the form of Exhibit
E hereto, together with a processing and recordation fee of $3,500; and
(D) the
assignee, if it shall not already be a Bank, shall deliver to the Agent an Administrative Questionnaire.
(iii) Effectiveness
of Assignments. Subject to acceptance and recording thereof pursuant to paragraphs (b) and (c) below, from and after the effective
date specified in each Assignment and Assumption, the assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Assumption, have the rights and obligations of a Bank under this Agreement, and the assigning Bank
thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under
this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Bank’s rights and obligations
under this Agreement, such Bank shall cease to be a party hereto but shall continue to be entitled to the rights referred to in
Sections 5.01, 5.04, 5.06 and 11.03). Any assignment or transfer by a Bank of rights or obligations under this Agreement that does
not comply with this Section shall be treated for purposes of this Agreement as a sale by such Bank of a participation in such
rights and obligations in accordance with paragraph (d) below. Delivery of an executed counterpart of a signature page to an Assignment
and Assumption by telecopy or other electronic transmission shall be effective as delivery of a manually executed counterpart of
thereof.
(b) Maintenance
of Register by the Agent. The Agent, acting for this purpose as an agent of the Company, shall maintain a copy of each Assignment
and Assumption delivered to it and a register for the recordation of the names and addresses of the Banks, and the Revolving Loan
Line Portion of, and principal amount of the Loans owing to, each Bank pursuant to the terms hereof from time to time (the “Register”).
The entries in the Register shall be conclusive, and the Company, the Agent and the Banks may treat each Person whose name is recorded
in the Register pursuant to the terms hereof as a Bank hereunder for all purposes of this Agreement, notwithstanding notice to
the contrary. The Register shall be available for inspection by the Company and any Bank, at any reasonable time and from time
to time, upon reasonable prior notice.
(c) Effectiveness
of Assignments. Upon its receipt of a duly completed Assignment and Assumption executed by an assigning Bank and an assignee,
the assignee’s completed Administrative Questionnaire (unless the assignee shall already be a Bank hereunder), the processing
and recordation fee referred to in paragraph (a) above and any written consent to such assignment required by said paragraph (a),
the Agent shall accept such Assignment and Assumption and record the information contained therein in the Register. No assignment
shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph (c).
(d) Participations.
Any Bank may, without the consent of the Company or the Agent, sell participations to one or more banks or other entities (a “Participant”)
in all or a portion of such Bank’s rights and obligations under this Agreement (including all or a portion of its Revolving
Loan Line Portion and the Loans owing to it); provided that (i) such Bank’s obligations under this Agreement shall remain
unchanged, (ii) such Bank shall remain solely responsible to the other parties hereto for the performance of such obligations and
(iii) the Obligors, the Agent and the Banks shall continue to deal solely and directly with such Bank in connection with such Bank’s
rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Bank sells such a participation shall
provide that such Bank shall retain the sole right to enforce this Agreement and to approve any amendment, waiver or other modification
of any provision of this Agreement; provided that such agreement may provide that such Bank will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described in the first proviso to Section 11.04 that affects
such Participant. Subject to paragraph (e) below, the Company agrees that each Participant shall be entitled to the benefits of
Sections 5.01, 5.04 and 5.06, to the same extent as if it were a Bank and had acquired its interest by assignment pursuant to paragraph
(a) above. To the extent permitted by Law, each Participant also shall be entitled to the benefits of Section 4.07(a) as though
it were a Bank, provided such Participant agrees to be subject to Section 4.07(b) as though it were a Bank hereunder.
(e) Limitations
on Rights of Participants. A Participant shall not be entitled to receive any greater payment under Section 5.01 or 5.06 than
the applicable Bank 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 Company’s prior written consent. A Participant that would
be a Foreign Bank if it were a Bank shall not be entitled to the benefits of Section 5.06 unless the Company is notified of the
participation sold to such Participant and such Participant agrees, for the benefit of the Company, to comply with Section 5.06
as though it were a Bank.
(f) Certain
Pledges. Any Bank may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement
to secure obligations of such Bank, including any such pledge or assignment to a Federal Reserve Bank, and this Section shall not
apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest
shall release a Bank from any of its obligations hereunder or substitute any such assignee for such Bank as a party hereto.
(g) No
Assignments to the Company or Affiliates. Anything in this Section to the contrary notwithstanding, no Bank may assign or participate
any interest in any Loan or Reimbursement Obligations held by it hereunder to the Company or any of its Affiliates or Subsidiaries
without the prior consent of each Bank.
11.07 Survival.
The obligations of the Company under Sections 5.01, 5.04, 5.06 and 11.03 and the obligations of the Banks under Section 10.05 hereof
shall survive the repayment of the Loans and the Reimbursement Obligations and the termination of the Revolving Loan Line Portions.
In addition, each representation and warranty made, or deemed to be made by a notice of any extension of credit (whether by means
of a Loan or a Letter of Credit), herein or pursuant hereto shall survive the making of such representation and warranty, and no
Bank shall be deemed to have waived, by reason of making any extension of credit hereunder (whether by means of a Loan or a Letter
of Credit), any Default that may arise by reason of such representation or warranty proving to have been false or misleading, notwithstanding
that such Bank or the Agent may have had notice or knowledge or reason to believe that such representation or warranty was false
or misleading at the time such extension of credit was made.
11.08 Captions.
The table of contents and captions and section headings appearing herein are included solely for convenience of reference and are
not intended to affect the interpretation of any provision of this Agreement.
11.09 Counterparts.
This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract. This Agreement, the other Basic
Documents and any separate letter agreements with respect to fees payable to the Agent and the Bank constitute the entire contract
between and 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 6.01, this Agreement shall become effective
when it shall have been executed by the Agent and when the Agent shall have received counterparts hereof which, when taken together,
bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page to this Agreement by
telecopy or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Agreement.
11.10 Governing
Law; Submission to Jurisdiction. Each of this Agreement and each other Basic Document will be governed by, and construed in
accordance with, the internal Laws of the state of New York (including for such purpose sections 5-1401 and 5-1402 of the General
Obligations Law of the State of New York). The Company hereby submits to the nonexclusive jurisdiction of the United States District
Court for the Southern District of New York and of any New York state court sitting in New York City for the purposes of all legal
proceedings arising out of or relating to this Agreement, any other Basic Document or the transactions contemplated hereby or thereby.
The Company irrevocably waives, to the fullest extent permitted by applicable Law, any objection that it may now or hereafter have
to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such
a court has been brought in an inconvenient forum. The Company hereby further irrevocably consents to the service of process in
any such legal proceedings in said courts by the mailing thereof by the Agent or any Bank by registered or certified mail, postage
prepaid, at its address set forth beneath its signature hereto.
11.11 Waiver
of Jury Trial. EACH OF THE COMPANY, THE AGENT AND THE BANKS HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER BASIC DOCUMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.
11.12 Severability.
Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability
of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate
such provision in any other jurisdiction.
11.13 Independence
of Covenants. All covenants and other agreements contained in this Agreement or any other Basic Document shall be given independent
effect so that, if a particular action or condition is not permitted by any of such covenants or other agreements, the fact that
such action or condition would be permitted by an exception to, or otherwise be within the limitations of, another covenant or
other agreement shall not avoid the occurrence of a Default or an Event of Default if such action is taken or such condition exists.
11.14 PATRIOT
ACT PROVISION. Each of the Agent and each Bank hereby notifies each Obligor that pursuant to the requirements of the USA Patriot
Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify
and record information that identifies each Obligor and other information that will allow the Agent and such Bank to identify each
Obligor in accordance with the Act.
11.15 No
Fiduciary Relationship. The relationship between the Company and the other Obligors on the one hand and the Agent and each
Bank on the other is solely that of debtor and creditor, and neither the Agent nor any Bank has any fiduciary or other special
relationship with the Company or any other Obligors, and no term or condition of any of the Basic Documents shall be construed
so as to deem the relationship between the Company and the other Obligors on the one hand and the Agent and each Bank on the other
to be other than that of debtor and creditor.
11.16 Construction.
The Company, each other Obligor (by its execution of the Basic Documents to which it is a party), the Agent, each Bank acknowledges
that each of them has had the benefit of legal counsel of its own choice and has been afforded an opportunity to review the Basic
Documents with its legal counsel and that the Basic Documents shall be construed as if jointly drafted by the parties thereto.
11.17 Interest
Rate Limitation.
(a) Limitation
to Maximum Rate; Recapture. No interest rate specified in any Basic Document shall at any time exceed the Maximum Rate. If
at any time the interest rate (the “Contract Rate”) for any obligation under the Basic Documents shall exceed
the Maximum Rate, thereby causing the interest accruing on such obligation to be limited to the Maximum Rate, then any subsequent
reduction in the Contract Rate for such obligation shall not reduce the rate of interest on such obligation below the Maximum Rate
until the aggregate amount of interest accrued on such obligation equals the aggregate amount of interest which would have accrued
on such obligation if the Contract Rate for such obligation had at all times been in effect. As used herein, the term “Maximum
Rate” means, at any time with respect to any Bank, the maximum rate of nonusurious interest under applicable Law that
such Bank may charge the Company. The Maximum Rate shall be calculated in a manner that takes into account any and all fees, payments,
and other charges contracted for, charged, or received in connection with the Basic Documents that constitute interest under applicable
Law. Each change in any interest rate provided for herein based upon the Maximum Rate resulting from a change in the Maximum Rate
shall take effect without notice to the Company at the time of such change in the Maximum Rate.
(b) Cure
Provisions. No provision of any Basic Document shall require the payment or the collection of interest in excess of the maximum
amount permitted by applicable Law. If any excess of interest in such respect is hereby provided for, or shall be adjudicated to
be so provided, in any Basic Document or otherwise in connection with the transactions contemplated under the Basic Documents,
the provisions of this Section shall govern and prevail and neither the Company nor the sureties, guarantors, successors, or assigns
of the Company shall be obligated to pay the excess amount of such interest or any other excess sum paid for the use, forbearance,
or detention of sums loaned pursuant hereto. In the event any Bank ever receives, collects, or applies as interest any such sum,
such amount which would be in excess of the maximum amount permitted by applicable Law shall be applied as a payment and reduction
of the principal of the obligations outstanding hereunder, and, if the principal of the obligations outstanding hereunder has been
paid in full, any remaining excess shall forthwith be paid to the Company. In determining whether or not the interest paid or payable
exceeds the Maximum Rate, the Company and each Bank shall, to the extent permitted by applicable Law, (i) characterize any non-principal
payment as an expense, fee, or premium rather than as interest, (ii) exclude voluntary prepayments and the effects thereof, and
(iii) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the entire contemplated
term of the obligations outstanding hereunder so that interest for the entire term does not exceed the Maximum Rate.
11.18 Waiver
of Consequential Damages, etc. To the extent permitted by applicable Law, no Obligor shall assert, and each Obligor hereby
waives, any claim against Agent, any Bank and any of their respective directors, officers, partners, employees, attorneys and agents,
on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising
out of, in connection with, or as a result of, this Agreement or any other Basic Documents, the transactions contemplated hereby
or thereby, any Loan or Letter of Credit or the use of the proceeds thereof.
11.19 DISCRETIONARY
FACILITY. THE COMPANY ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT PROVIDES FOR A CREDIT FACILITY THAT IS COMPLETELY DISCRETIONARY
ON THE PART OF THE BANKS AND THAT THE BANKS HAVE ABSOLUTELY NO DUTY OR OBLIGATION TO ADVANCE ANY LOANS OR TO ISSUE ANY LETTER OF
CREDIT. THE COMPANY UNDERSTANDS THAT WITHOUT REASON, CAUSE OR PRIOR NOTICE, THE BANKS MAY CEASE ADVANCING LOANS AND ISSUING LETTERS
OF CREDIT AND MAY MAKE DEMAND FOR PAYMENT (AND CASH COLLATERALIZATION WITH RESPECT TO OUTSTANDING LETTERS OF CREDIT) OF ALL OBLIGATIONS
OF THE COMPANY TO THE BANKS AT ANY TIME. THE COMPANY REPRESENTS AND WARRANTS TO THE BANKS THAT THE COMPANY IS AWARE OF THE RISKS
ASSOCIATED WITH CONDUCTING BUSINESS UTILIZING AN UNCOMMITTED FACILITY.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be duly executed and delivered as of the day and year first above written.
|
EMPIRE RESOURCES, INC. |
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By: |
/s/ Sandra Kahn |
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Sandra R. Kahn, Vice President |
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Address for Notices: |
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Empire Resources, Inc. |
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One Parker Plaza |
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Fort Lee, New Jersey 07024 |
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Attention: Ms. Sandra R. Kahn |
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Facsimile No.: (201) 944-2226 |
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Telephone No.: (201) 944-2200 |
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COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”, NEW YORK BRANCH, as Agent, Issuing Bank and as a Bank |
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By: |
/s/ Chan K. Park |
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Name: Chan K. Park |
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Title: Managing Director |
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By: |
/s/ Xander Willemsen |
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Name: Xander Willemsen |
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Title: Executive Director |
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Address for Notices: |
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c/o Rabobank International |
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245 Park Avenue |
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New York, New York 10167 |
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Attention: Frank Imperato |
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Telecopy No. (212) 916-3731 |
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Telephone No. (212) 808-6815 |
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With copies to: |
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Rabobank International |
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245 Park Avenue |
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New York, New York 10167 |
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Attention: Xander Willemsen |
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Telecopy No.: (914) 304-9321 |
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Telephone No.: (212) 574-7377 |
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and |
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Rabobank International |
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245 Park Avenue |
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New York, New York 10167 |
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Attention: Naoko Kojima |
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Telecopy No.: (212) 808-2578 |
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Telephone No.: (212) 808-6812 |
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BNP PARIBAS, as Syndication Agent and a Bank |
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By: |
/s/ Karlien Zumpolle |
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Name: Karlien Zumpolle |
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Title: Vice President |
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By: |
/s/ Bradley Dingwall |
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Name: Bradley Dingwall |
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Title: Director |
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Address for Notices: |
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787 Seventh Avenue, 9th Floor |
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New York, New York 10019 |
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Attention: |
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Facsimile No.: |
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Telephone No.: |
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Email: |
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SOCIÉTÉ GÉNÉRALE S.A., as a Bank |
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By: |
/s/ Barbara Paulsen |
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Name: Barbara Paulsen |
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Title: Managing Director |
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By: |
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Name: |
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Title: |
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Address for Notices: |
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245 Park Avenue |
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New York, NY 10167 |
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Attention: |
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Facsimile No.: |
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Telephone No.: |
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Email: |
Index to Exhibits
and Schedules
EXHIBIT A |
– |
Form of Note |
EXHIBIT B |
– |
Form of Borrowing Base Certificate |
EXHIBIT C |
– |
Form of Security Agreement |
EXHIBIT D |
– |
Form of Subsidiary Guarantee |
EXHIBIT E |
– |
Form of Assignment and Assumption |
EXHIBIT F |
– |
Intentionally omitted |
EXHIBIT G |
– |
Form of Compliance Certificate |
EXHIBIT H |
– |
Intentionally omitted |
EXHIBIT I |
– |
Form of Borrowing Request |
EXHIBIT J |
– |
Form of Notice of Prepayment, Conversion and Continuation |
EXHIBIT K |
– |
Subordination Terms |
EXHIBIT L |
– |
Intentionally omitted |
EXHIBIT M |
— |
Form of Intercreditor Agreement |
EXHIBIT N |
— |
Form of Declining Bank Notice |
EXHIBIT O |
— |
Form of Approving Bank Notice |
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|
|
SCHEDULE A |
– |
Revolving Loan Line Portions |
SCHEDULE I |
– |
Indebtedness |
SCHEDULE II |
– |
Investments |
SCHEDULE III |
– |
Subsidiaries |
SCHEDULE IV |
— |
Limitations on Dividend Clause and Negative Pledge Clauses |
SCHEDULE V |
- |
Credit Insurance |
EXHIBIT A
FORM OF
PROMISSORY
NOTE
$[Principal Amount] |
[Date] |
|
New York, New York |
FOR VALUE RECEIVED,
EMPIRE RESOURCES, INC., a Delaware corporation (the “Company”), hereby promises to pay to [Insert name of
the Bank] (the “Bank”), for account of its respective Applicable Lending Offices provided for by the Credit
Agreement referred to below, the principal sum of $[Principal Amount] (or such lesser amount as shall equal the aggregate
unpaid principal amount of the Loans made by the Bank to the Company under the Credit Agreement), in lawful money of the United
States of America and in immediately available funds, on the dates and in the principal amounts provided in the Credit Agreement,
and to pay interest on the unpaid principal amount of each such Loan, at such office, in like money and funds, for the period commencing
on the date of such Loan until such Loan shall be paid in full, at the rates per annum and on the dates provided in the Credit
Agreement.
The date, amount, Type,
interest rate and duration of Interest Period (if applicable) of each Loan made by the Bank to the Company, and each payment made
on account of the principal thereof, shall be recorded by the Bank on its books, provided that the failure of the Bank to
make any such recordation shall not affect the obligations of the Company to make a payment when due of any amount owing under
the Credit Agreement or hereunder in respect of the Loans made by the Bank.
This Note (i) is one
of the Notes referred to in the Uncommitted Credit Agreement dated as of June 19, 2014 (as amended, restated, supplemented or otherwise
modified and in effect from time to time, the “Credit Agreement”) among the Company, the banks from time to
time party thereto and Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch,
as Agent, (ii) is entitled to the benefits of the Credit Agreement and (iii) evidences Loans made by the Bank under the Credit
Agreement. Terms used but not defined in this Note have the respective meanings assigned to them in the Credit Agreement.
The Credit Agreement
provides for the acceleration of the maturity of this Note upon the occurrence of certain events and for prepayments of Loans upon
the terms and conditions specified therein.
Except as permitted
by Section 11.06 of the Credit Agreement, this Note may not be assigned by the Bank to any other Person.
This Note shall be
governed by, and construed in accordance with, the law of the State of New York.
|
EMPIRE RESOURCES, INC. |
|
|
|
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By |
|
|
|
Name: Sandra R. Kahn |
|
|
Title: Vice President |
EXHIBIT B
Form of Borrowing Base Certificate
Coöperatieve Centrale
Raiffeisen-Boerenleenbank B.A.,
“Rabobank Nederland”,
New York Branch, as agent
c/o Rabobank International
245 Park Avenue
New York, NY 10167
Phone No. 212-808-6815
Fax No. 212-916-3731
Attention: Frank Imperato / Naoko Kojima /
Xander Willemsen
And each Bank
Ladies and Gentlemen:
This Borrowing Base
Certificate as of _____________, 20__ (the “Computation Date”) is executed and delivered by Empire Resources,
Inc. (the “Company”) to Coöperatieve Centrale Raiffeisen–Boerenleenbank B.A., “Rabobank Nederland”,
New York Branch, as agent (in such capacity, together with its successors in such capacity, the “Agent”), pursuant
to that certain Uncommitted Credit Agreement dated as of June 19, 2014 (as amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”) among the Company, the banks from time to time party thereto and
the Agent. All terms used herein shall have the meanings assigned to them in the Credit Agreement.
The Company represents
and warrants to the Agent and the Banks that all information contained herein is true, correct, and complete, and that the property
included in the calculations below represents the property that qualifies for purposes of determining the Borrowing Base under
the Credit Agreement. The Company also represents and warrants that all figures listed below or attached hereto have been calculated
based on the provisions of the Credit Agreement.
The Company represents
and warrants to the Agent and the Banks that the representations and warranties of the Obligors contained in the Basic Documents
are true and correct in all material respects on and as of the date of this Borrowing Base Certificate as if made on and as of
the date hereof except to the extent that such representations and warranties relate specifically to another date, and that no
Default exists.
BORROWING BASE SUMMARY: |
|
|
|
A. |
Borrowing Base (as detailed from schedule 1) |
|
|
$__________ |
B. |
Revolving Loan Line Portions |
|
|
$__________ |
C. |
Lesser of Line A or Line B |
|
|
$__________ |
D. |
Credit Exposure: |
|
|
|
|
(i) |
Loans |
$__________ |
|
|
|
(ii) |
Letters of Credit |
$__________ |
|
|
|
(iii) |
Total |
|
|
$__________ |
E. |
Availability
(Line C, minus Line D(iii)) |
|
|
$__________ |
Borrowing Base Certificate, Page 1 |
In
the event of any conflict between this Borrowing Base Certificate and the Credit Agreement, the Credit Agreement shall control.
Date: __________, 20__ |
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Borrower: |
|
|
|
EMPIRE RESOURCES, INC. |
|
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|
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By: |
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|
Sandra Kahn, Vice President and Chief Financial Officer |
Borrowing Base Certificate, Page 2 |
SCHEDULE
1
TO
BORROWING
BASE CERTIFICATE
EMPIRE
RESOURCES, INC.
|
|
Amount |
|
Advance
Rate |
|
Amount Times
Advance
Rate |
|
1. |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Eligible Net Liquidating Value of Brokerage Accounts1 |
$__________ |
|
85% |
|
$__________ |
|
|
|
|
|
|
|
|
|
|
|
(b) |
Tier I Eligible Receivables |
$__________ |
|
90% |
|
$__________ |
|
|
|
|
|
|
|
|
|
|
|
(c) |
Tier II Eligible Receivables2 |
$__________ |
|
80% |
|
$__________ |
|
|
|
|
|
|
|
|
|
|
|
(d) |
Australian Receivables3 |
$__________ |
|
70% |
|
$__________ |
|
|
|
|
|
|
|
|
|
|
|
(e) |
Eligible Inventory Ordered Under L/C |
$__________ |
|
80% |
|
$__________ |
|
|
|
|
|
|
|
|
|
|
|
(f) |
Eligible Inventory4 |
$__________ |
|
80% |
|
$__________ |
|
|
|
|
|
|
|
|
|
|
|
(g) |
Eligible Unsold Inventory5 |
$__________ |
|
65% |
|
$__________ |
|
|
|
|
|
|
|
|
|
|
|
(h) |
Pledged Cash |
$__________ |
|
100% |
|
$__________ |
|
|
|
|
|
|
|
|
|
|
|
(i) |
Eligible Mexican Receivables6 |
$__________ |
|
80% |
|
$__________ |
|
|
|
|
|
|
|
|
|
2. |
Total Assets (sum of lines (a), (b), (c), (d), (e), (f), (g), (h) and (i)) |
|
|
|
|
$__________ |
|
|
|
|
|
|
|
|
|
3. |
Deductions for Reserves |
$__________ |
|
100% |
|
($__________) |
|
|
|
|
|
|
|
|
|
4. |
Deductions for Indebtedness
secured by Permitted Borrowing Base Liens |
$__________ |
|
100% |
|
($__________) |
|
|
|
|
|
|
|
|
|
5. |
Borrowing
Base (line 2 minus line 3 minus line 4) |
|
|
|
|
$ |
|
1 To be included in Borrowing
Base calculation only if and to the extent requested by the Company.
2 The aggregate amount of Tier
II Eligible Receivables (a) that are not Credit Insured Receivables, owing from any one account debtor (and its Affiliates) at
any time shall not exceed $1,500,000 (per account debtor (and its Affiliates)), and (b) included in the Borrowing Base at any time
shall not exceed $3,500,000 (after giving effect to the applicable advance rate), in each case (under clauses (a) and (b)), unless
otherwise approved in writing by the Required Banks.
3 In no event shall the aggregate
amount of the Australian Receivables included in the Borrowing Base at any time exceed an amount equal to $7,500,000 (after giving
effect to the applicable advance rate).
4 In no event shall the aggregate
amount of the Eligible Inventory included in the Borrowing Base at any time exceed an amount equal to 65% of the Borrowing Base
(after giving effect to the applicable advance rate).
5 In no event shall the aggregate
amount of Eligible Unsold Inventory included in the Borrowing Base at any time exceed $3,500,000 (after giving effect to the applicable
advance rate).
6 In no event shall the aggregate
amount of Eligible Mexican Receivables included in the Borrowing Base at any time exceed $10,000,000 (after giving effect to the
applicable advance rate).
Borrowing Base Certificate, Page 3 |
EXHIBIT E
ASSIGNMENT
AND ASSUMPTION
This Assignment and
Assumption (the “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered
into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the
“Assignee”). Capitalized terms used but not defined herein shall have the meanings given to them in the Credit
Agreement identified below (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”),
receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached
hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth
herein in full.
For an agreed consideration,
the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from
the Assignor, subject to and in accordance with Standard Terms and Conditions and the Credit Agreement, as of the Effective Date
inserted by the Agent as contemplated below (i) all of the Assignor's rights and obligations in its capacity as a Bank under the
Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage
interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified
below (including any letters of credit, guarantees, acceptances and swingline loans included in such facilities) and (ii) to the
extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in
its capacity as a Bank) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement,
any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on
or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory
claims and all other claims at law or in equity related to the right and obligations sold and assigned pursuant to clause (i) above
(the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as,
the “Assigned Interest”). Such sale and assignment is without recourse to the Assignor and, except as expressly
provided in this Assignment and Assumption, without representation or warranty by the Assignor.
1. |
Assignor: |
|
|
|
|
|
|
2. |
Assignee: |
|
|
|
|
|
[and is an Affiliate/Approved Fund of [identify Bank]1] |
|
|
|
|
3. |
Borrower: |
|
Empire Resources, Inc. |
|
|
|
|
|
|
|
|
4. |
Agent: |
|
Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, as the agent under the Credit Agreement |
|
|
|
|
5. |
Credit Agreement: |
|
Uncommitted Credit Agreement dated as of June 19, 2014 among Empire Resources, Inc., the banks from time to time party thereto and Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, as Agent. |
1 Select as
applicable.
ASSIGNMENT AND ASSUMPTION, Page 1 |
Aggregate Amount of
Revolving Loan Line Portion/Loans for all Banks |
|
Amount of Revolving Loan Line
Portion/Loans Assigned |
|
Percentage Assigned of Revolving
Loan Line Portion/Loans |
$ |
|
$ |
|
% |
[7 |
Trade Date: |
|
______________]4 |
Effective Date: ,
20 [TO BE INSERTED BY AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE
REGISTER THEREFOR.]
The terms set forth
in this Assignment and Assumption are hereby agreed to:
|
ASSIGNOR |
|
|
|
[NAME OF ASSIGNOR] |
|
|
|
|
By: |
|
|
|
Name: |
|
|
Title: |
|
|
|
ASSIGNEE |
|
|
|
[NAME OF ASSIGNEE] |
|
|
|
|
By: |
|
|
|
Name: |
|
|
Title: |
4 To be completed if the Assignor and the Assignee
intend that the minimum assignment amount is to be determined as of the Trade Date.
ASSIGNMENT AND ASSUMPTION, Page 2 |
[Consented to and]5 Accepted: |
|
|
|
Coöperatieve Centrale |
|
Raiffeisen-Boerenleenbank B.A., |
|
“Rabobank Nederland”, New |
|
York Branch, as Agent |
|
|
|
|
By: |
|
|
|
Name: |
|
|
Title: |
|
|
|
|
By: |
|
|
|
Name: |
|
|
Title: |
|
|
|
[Consented to:]6 |
|
|
|
EMPIRE RESOURCES, INC. |
|
|
|
By: |
|
|
|
Name: |
|
|
Title: |
|
5 To be added only if the consent of the Agent is
required by the terms of the Credit Agreement.
6 To be added only if the consent of the Company
and/or other parties (e.g. Issuing Bank) is required by the terms of the Credit Agreement.
ASSIGNMENT AND ASSUMPTION, Page 3 |
ANNEX I
Empire
Resources, Inc.
credit
agreement
STANDARD TERMS AND CONDITIONS FOR
ASSIGNMENT AND ASSUMPTION
1. Representations
and Warranties
1.1 Assignor.
The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned
Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver the Assignment and Assumption and to consummate the transactions contemplated hereby;
and (b) assumes responsibility with respect to (i) any statements, warranties or representations made in or in connection
with the Credit Agreement or any other Basic Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency
or value of any Basic Documents or any collateral thereunder, (iii) the financial condition of the Company, any of the Subsidiaries
or Affiliates or any other Person obligated in respect of any Basic Document or (iv) the performance or observance by the Company,
any of the Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Basic Document.
1.2 Assignee.
The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary,
to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Bank
under the Credit Agreement, (ii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement
as a Bank thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Bank thereunder, (iii) it has
received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to the
Credit Agreement and such other documents and information as it has deemed appropriate to make its own credit analysis and decision
to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis
and decision independently and without reliance on the Agent or any other Bank, and (iv) if it is a Foreign Bank, attached
to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement,
duly completed and executed by the Assignee; (b) agrees that (i) it will, independently and without reliance on the Agent, the
Assignor or any other Bank, and based on such documents and information as it shall deem appropriate at the time, continue to make
its own credit decisions in taking or not taking action under Basic Documents, and (ii) it will perform in accordance with their
terms all of the obligations which by the terms of the Basic Documents are required to be performed by it as a Bank; and (c) agrees
that it will be bound by the terms and provisions of the Intercreditor Agreement.
2. Payments.
From and after the Effective Date, the Agent shall make all payments in respect of the Assigned Interest (including payments of
principal, interest, fees and other amounts) to the Assignee whether such amounts which have accrued prior to or after the Effective
Date. The Assignor and the Assignee shall make all appropriate adjustments
in payments by the Agent for periods prior to the Effective Date or with respect to the making of this assignment directly between
themselves.
3. General Provisions.
This Assignment and Assumption shall be binding upon, and inure to the benefit of the parties hereto and their respective successors
and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective
as delivery of a manually executed counterpart of a signature page of this Assignment and Assumption. This Assignment and Assumption
shall be governed by and construed in accordance with, the law of the State of New York, other than those conflict of law provisions
that would defer to the substantive laws of another jurisdiction. This governing law election has been made by the parties in reliance
(at least in part) on Section 5-1401 of the General Obligations Law of the State of New York, as amended (as and to the extent
applicable), and other applicable law.
ASSIGNMENT AND ASSUMPTION, Page 4 |
EXHIBIT G
FORM OF
COMPLIANCE CERTIFICATE
for the
quarter/fiscal year ending __________ __,
_____
Coöperatieve Centrale
Raiffeisen-Boerenleenbank B.A.,
“Rabobank Nederland”,
New York Branch, as agent
c/o Rabobank International
245 Park Avenue
New York, NY 10167
Phone No. |
212-808-6815 |
Fax No. |
212-916-3731 |
Attention: |
Frank Imperato / Naoko Kojima / Xander Willemsen |
and each Bank
Ladies and Gentlemen:
This Compliance Certificate
(the “Certificate”) is being delivered pursuant to Section 8.01 of that certain Uncommitted Credit Agreement
dated as of June 19, 2014 (as amended, restated, supplemented or otherwise modified from time to time, the “Agreement”)
among Empire Resources, Inc. (the “Company”), the banks from time to time party thereto and Coöperatieve
Centrale Raiffeisen–Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, as agent (in such capacity, together
with its successors in such capacity, the “Agent”). All terms used herein shall have the meanings assigned to
them in the Agreement. All the calculations set forth below shall be made pursuant to the terms of the Agreement.
The undersigned, an
authorized financial officer of the Company in his or her capacity as such financial officer and not in his or her individual capacity,
does hereby certify to the Agent and the Banks that:
1. DEFAULT |
No Event of Default exists or has occurred or, if an Event of Default exists, I have described on the attached Exhibit “A” the nature thereof and the steps taken or proposed to remedy such Event of Default. |
|
|
|
|
Compliance |
2. SECTION 8.01 - Financial Statements and Records |
|
|
|
|
|
|
|
(a) Annual audited financial statements of the Company on a consolidated basis within 90 days after the end of each fiscal year end (together with Compliance Certificate). |
|
|
Yes |
No |
N/A |
|
|
|
|
|
|
(b) quarterly unaudited financial statements of the Company on a consolidated basis within 45 days after each of the first three fiscal quarter ends (together with Compliance Certificate). |
|
|
Yes |
No |
N/A |
|
|
|
|
|
|
(c) Bi-Monthly Borrowing Base Certificate |
|
|
Yes |
No |
N/A |
4. SECTION 8.04 - Insurance |
|
|
|
|
|
|
|
|
|
Annual Evidence of Insurance on anniversary of the Closing Date. |
|
|
Yes |
No |
N/A |
|
|
|
|
|
|
5. SECTION 8.07 - Indebtedness |
|
|
|
|
|
|
|
|
|
|
|
No additional Indebtedness except: |
|
|
|
|
|
|
|
|
|
|
|
(a) Indebtedness of 6900 Quad Avenue, LLC not to exceed: |
|
$1,300,000 |
|
|
|
Actual outstanding: |
|
$_______ |
Yes |
No |
|
|
|
|
|
|
|
(b) Other unsecured Indebtedness of the Company |
|
$250,000 |
|
|
|
Actual outstanding: |
|
$_______ |
Yes |
No |
|
|
|
|
|
|
|
(c) Imbali Facility not to exceed: |
|
€10,000,000 |
|
|
|
Actual € amount outstanding: |
|
€_______ |
Yes |
No |
|
Actual $ equivalent amount outstanding: |
|
$_______ |
|
|
|
|
|
|
|
|
|
(d) Non-recourse Inventory financing amount outstanding |
|
$_______ |
|
|
|
|
|
|
|
|
|
(e) Reimbursement obligations in respect of letters of credit issued outside of the Agreement |
|
$_______ |
|
|
|
|
|
|
|
|
|
(f) Subordinated Debt |
|
$_______ |
|
|
|
|
|
|
|
|
|
(g) Pre-export financing Guarantees not to exceed: |
|
$3,000,000 |
|
|
|
Actual outstanding: |
|
$_______ |
Yes |
No |
|
|
|
|
|
|
|
(h) Aggregate $ equivalent amount of actual outstanding under the Indebtedness under lines (d), (e), (f) and (g) not to exceed: |
|
$25,000,000 |
|
|
|
Actual aggregate $ equivalent amount of actual outstanding under the Indebtedness under lines (d), (e), (f) and (g): |
|
$_______ |
Yes |
No |
|
|
|
|
|
|
|
(i) Capital Expenditures not to exceed: |
|
$10,000,000 |
|
|
|
Actual outstanding: |
|
$_______ |
Yes |
No |
|
|
|
|
|
|
|
(j) Australian Subsidiary Indebtedness not to exceed: |
|
AUS$20,000,000 |
|
|
|
Actual AUS$ amount outstanding: |
|
AUS$_______ |
Yes |
No |
|
|
|
|
|
|
|
6. SECTION 8.08 - Investments |
|
|
|
|
|
|
|
|
|
|
|
(a) Investments in Imbali Metals BVBA not to exceed: |
|
€4,000,000 |
|
|
|
Actual Imbali Investments |
|
€_______ |
Yes |
No |
|
|
|
|
|
|
|
(b) Investments with Sub Debt proceeds not to exceed: |
|
$12,000,000 |
|
|
|
Actual Investments with Sub Debt proceeds: |
|
$_______ |
Yes |
No |
|
|
|
|
|
|
|
(c) Additional Investments not to exceed: |
|
$500,000 |
|
|
|
Actual additional Investments |
|
$_______ |
Yes |
No |
|
|
|
|
|
|
|
(d) Permitted
Investments not to exceed1: |
|
$_______ |
Yes |
No |
|
1 To be completed with respect to each category of
Permitted Investments.
7. SECTION 8.09 – Leverage Ratio |
|
|
|
|
|
|
|
|
|
|
|
(a) Total Liabilities (including letters of credit) |
|
$_________ |
|
|
|
(b) Subordinated Debt |
|
$_________ |
|
|
|
(c) Tangible Net Worth |
|
|
|
|
|
(i) amount of common stock; |
|
$_________ |
|
|
|
(ii) amount of surplus and retained earnings (minus any deficit); |
|
$_________ |
|
|
|
(iii) accumulated other comprehensive income; |
|
$_________ |
|
|
|
(iv) Subordinated Debt |
|
$_________ |
|
|
|
(v) Investments (other than Permitted Investments), the cost of treasury shares and all assets classified as intangibles (without duplication of deductions in respect of items already deducted in arriving at surplus and retained earnings) |
|
($_________) |
|
|
|
(vi) Sum of (i) through (iv) minus (v) |
|
$_________ |
|
|
|
(d) 7(a) minus 7(b) ¸ 7(c)(vi) |
|
___ to 1.00 |
|
|
|
(e) Maximum Leverage Ratio |
|
6.00 to 1.00 |
Yes |
No |
|
|
|
|
|
|
|
8. SECTION 8.10 – Net Working Capital |
|
|
|
|
|
|
|
|
|
|
|
(a) Base Amount |
|
$35,000,000 |
|
|
|
(b) 25% of Company's Consolidated Net Income (only if a positive number) for the fiscal year most recently ended |
|
$_________ |
|
|
|
(c) Total minimum required Net Working Capital (8(a) plus 8(b)) |
|
$_________ |
|
|
|
(d) Actual Net Working Capital |
|
$_________ |
Yes |
No |
|
|
|
|
|
|
|
9. SECTION 8.11 – No Net Loss |
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net Income (but calculated before taxes and extraordinary items in accordance with GAAP) not to be less than negative $4,000,000 in the aggregate over two or more consecutive quarters |
|
|
Yes |
No |
|
|
|
|
|
|
|
10. SECTION 8.17 - Additional Domestic Subsidiaries |
|
|
|
|
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Joinder of new Domestic Subsidiaries promptly after the Domestic Subsidiary is formed or acquired. |
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Yes |
No |
N/A |
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Pledge of new Capital Securities in Domestic Subsidiaries and 65% of foreign Subsidiaries |
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Yes |
No |
N/A |
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11. SECTION 8.20 – Capital Expenditure Limit |
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(a) Capital Expenditures for logistical assets not to exceed: |
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$10,000,000 |
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(b) Actual Capital Expenditures for logistical assets |
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$_________ |
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(c) Compliance: (line 11(b) must be less than Line 11(a)) |
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Yes |
No |
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IN WITNESS WHEREOF,
the undersigned has executed this Certificate effective as of the date first written above.
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EMPIRE RESOURCES, INC. |
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By: |
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Name: |
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Title: |
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EXHIBIT I
FORM OF
BORROWING REQUEST
Coöperatieve Centrale
Raiffeisen-Boerenleenbank B.A.,
“Rabobank Nederland”,
New York Branch, as agent
c/o Rabobank International
245 Park Avenue
New York, NY 10167
Phone No. |
212-808-6815 |
Fax No. |
212-916-3731 |
Attention: |
Frank Imperato / Naoko Kojima / Xander Willemsen |
and each Bank
Ladies and Gentlemen:
The undersigned is
an authorized officer of Empire Resources, Inc. (the “Company”) and is authorized to make and deliver this Borrowing
Request pursuant to that certain Uncommitted Credit Agreement dated as of June 19, 2014 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”) among the Company, the banks from time to time
party thereto and Coöperatieve Centrale Raiffeisen–Boerenleenbank B.A., “Rabobank Nederland”, New York Branch,
as agent (in such capacity, together with its successors in such capacity, the “Agent”). All terms defined in
the Credit Agreement shall have the same meaning herein. In accordance with the Credit Agreement, the Company hereby (check whichever
is applicable):
___ 1. Requests
that the Banks make an advance under the Revolving Loan Line Portions which shall be a Base Rate Loans in the amount of $ _________
on __________.
___ 2. Requests
that the Banks make an advance on __________under the Revolving Loan Line Portions as Eurodollar Loans with the amount of each
Eurodollar Loan and duration of the Interest Periods with respect thereto to be as follows:
Amount | |
| Interest Period | | |
Maturity Date |
|
1. | |
| _____ Month(s) | | |
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2. | |
| _____ Month(s) | | |
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3. | |
| _____ Month(s) | | |
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4. | |
| _____ Month(s) | | |
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3. Requests that _________
issue a Letter of Credit in the form attached hereto as Exhibit A with an original face amount of $__________ on __________.
In connection with
the foregoing and pursuant to the terms and provisions of the Credit Agreement, the undersigned hereby certifies to the Agent and
the Banks that the following statements are true and correct:
(i) The
representations and warranties contained in Section 7 of the Credit Agreement and in each of the other Basic Documents are true
and complete in all material respects on and as of the date hereof with the same force and effect as if made on and as of such
date except for any representation or warranty limited by its terms to a specific date.
(ii) No
Default exists or would result from the extension of credit requested hereunder.
(iii) After
giving effect to the credit extended pursuant to this request, the aggregate amount of Credit Exposure does not exceed the lesser
of the Borrowing Base (plus if applicable, with respect to any commercial Letter of Credit issued to secure the purchase
price of Inventory, 80% the cost of such Inventory that will be Eligible Inventory Ordered Under L/C once such Letter of Credit
is issued) or the aggregate Revolving Loan Line Portions;
Obligations | |
Totals | |
a. | |
Current Revolving Loans | |
$ | | |
b. | |
Requested Revolving Loans | |
$ | | |
c. | |
Total Revolving Loans | |
$ | | |
d. | |
Current Letter of Credit Liabilities | |
$ | | |
e. | |
Requested Letter of Credit Liabilities | |
$ | | |
f. | |
Total
Letter of Credit Liabilities | |
$ | | |
g. | |
Total
Current Obligations (Sum of Lines a. and d.) | |
$ | | |
h. | |
Total
Requested Obligations (Sum of Lines b. and e.) | |
$ | | |
i. | |
Total
Obligations After Request (Sum of Lines c. and f.) | |
$ | | |
j. | |
Aggregate Borrowing Base (from most
recent Borrowing Base Report or Interim Borrowing Base Certificate) | |
$ | | |
k. | |
Plus with respect to any commercial Letter of Credit issued to
secure the purchase price of Inventory, 80% the cost of such Inventory that will be Eligible Inventory Ordered Under L/C once
such Letter of Credit is issued | |
$ | | |
l. | |
Total
Aggregate Availability (sum of j. plus k.) | |
| | |
m. | |
Availability
after request (sum of l. minus i.) | |
| | |
All information
supplied hereon is true, correct, and complete as of the date hereof.
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Company: |
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EMPIRE RESOURCES, INC. |
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By: |
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Name: |
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Title: |
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Dated as of: |
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(insert proposed date of the |
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requested extension of credit) |
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EXHIBIT J
FORM OF
NOTICE OF PREPAYMENT, CONTINUATION OR
CONVERSION
Coöperatieve Centrale
Raiffeisen-Boerenleenbank B.A.,
“Rabobank Nederland”,
New York Branch, as agent
c/o Rabobank International
245 Park Avenue
New York, NY 10167
Phone No. |
212-808-6815 |
Fax No. |
212-916-3731 |
Attention: |
Frank Imperato / Naoko Kojima / Xander Willemsen |
and each Bank
Ladies and Gentlemen:
The undersigned is
an authorized officer of Empire Resources, Inc. (the “Company”) and is authorized to make and deliver this notice
pursuant to that certain Uncommitted Credit Agreement dated as of June 19, 2014 (as amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”) among the Company, the banks from time to time party thereto
and Coöperatieve Centrale Raiffeisen–Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, as agent
(in such capacity, together with its successors in such capacity, the “Agent”). All terms defined in the Credit
Agreement shall have the same meaning herein.
____ The
Company hereby gives Agent notice of prepayment of a Loan. Details of this prepayment are set forth on Schedule 1 hereto.
____ The
Company hereby gives Agent notice of the continuation of a Eurodollar Loan. Details of this Continuation are set forth on Schedule 2
hereto.
____ The
Company hereby gives Agent notice of the conversion of a Loan from one Type to another Type. Details of this Conversion are set
forth on Schedule 3 hereto.
In connection with
the foregoing and pursuant to the terms and provisions of the Credit Agreement, the undersigned hereby certifies to the Agent and
the Banks that the following statements are true and correct:
(a) The
representations and warranties contained in Section 7 of the Credit Agreement and in each of the other Basic Documents are true
and complete in all material respects on and as of the date hereof with the same force and effect as if made on and as of such
date except to the extent that such representations and warranties relate specifically to another date.
(b) No
Default exists or would result from the request made hereunder.
Notice of Prepayment Continuation or Conversion, Page 1 |
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Company: |
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EMPIRE RESOURCES INC. |
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By: |
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Name: |
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Title: |
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Dated as of: |
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Notice of Prepayment Continuation or Conversion, Page 2 |
SCHEDULE 1
NOTICE OF PREPAYMENT
1. The
date of prepayment is ______________ __, 20__.1
2. The
aggregate amount of the prepayment is $_____________.
3. The
prepayment should be applied as follows:
___ Revolving
Loan in the amount of $___________ (minimum amount of $1,000,000 and $250,000 increments for all Eurodollar Loans; and minimum
of $250,000 or multiples of $50,000 in excess thereof in the case of Base Rate Loans)
1 Notice by 10:00 A.M. on the
Business Day of the proposed prepayment is required for prepayments of Base Rate Loans. Three Business Days’ notice is required
for prepayments of Eurodollar Loans.
SCHEDULE 1 to Notice of Prepayment Continuation or Conversion, Solo Page 1 |
SCHEDULE 2
NOTICE OF CONTINUATION
1. The
Continuation Date is ______ __, 20__.2
2. The
aggregate amount of the Eurodollar Loans to be continued is $__________.
3. The
Eurodollar Loans to be continued should be continued as Eurodollar Loans in the amounts and with the Interest Periods specified
below:
Amount | |
| Interest Period | | |
| Maturity Date | |
1. | |
| _____ Month(s) | | |
| | |
2. | |
| _____ Month(s) | | |
| | |
3. | |
| _____ Month(s) | | |
| | |
4. | |
| _____ Month(s) | | |
| | |
2 Notice by 10:00 A.M. on the
Business Day of the proposed continuation is required for Base Rate Loans and three Business Days’ notice is required for
a continuation of Eurodollar Loans.
SCHEDULE 2 to Notice of Prepayment Continuation or Conversion, Solo Page 1 |
SCHEDULE 3
NOTICE OF CONVERSION
1. The
Conversion Date is ______ __, 20__.3
2. The
aggregate amount of the Loans to be converted is $__________.
3. The
Account to be converted is currently a:
____ [Base
Rate Loan] [Eurodollar Loan] and should be converted into:
___ Base
Rate Loans in the amount of $ _________;
___ Eurodollar
Loans with the amount of each Eurodollar Loan and duration of the Interest Periods with respect thereto to be as follows:
Amount | |
| Interest Period | | |
| Maturity Date | |
1. | |
| _____ Month(s) | | |
| | |
2. | |
| _____ Month(s) | | |
| | |
3. | |
| _____ Month(s) | | |
| | |
4. | |
| _____ Month(s) | | |
| | |
3 A Conversion can only occur
on the last day of the Interest Period applicable to a Eurodollar Loan. Notice by 10:00 A.M. on the Business Day of the proposed
conversion is required for Base Rate Loans and three Business Days’ notice is required for a conversion into Eurodollar Loans.
SCHEDULE 3 to Notice of Prepayment Continuation or Conversion, Solo Page 2 |
EXHIBIT
N
FORM OF
DECLINING
BANK NOTICE
Coöperatieve Centrale
Raiffeisen-Boerenleenbank B.A.,
“Rabobank Nederland”,
New York Branch, as agent
c/o Rabobank International
245 Park Avenue
New York, NY 10167
Phone No. |
212-808-6815 |
Fax No. |
212-916-3731 |
Attention: |
Frank Imperato, |
|
Naoko Kojima, |
|
Xander Willemsen |
June 19, 2014
Re:
Empire Resources, Inc.
Ladies
and Gentlemen:
The
undersigned,
[NAME OF DECLINING
BANK] (the “Declining
Bank”), refers
to the Uncommitted Credit
Agreement,
dated as of
June 19, 2014 (as amended,
supplemented
or otherwise modified
from time to time, the “Credit
Agreement”),
among Empire Resources, Inc. (the “Company”), the banks from time
to time party thereto and Coöperatieve Centrale Raiffeisen–Boerenleenbank B.A., “Rabobank Nederland”, New
York Branch, as agent (in such capacity, together with its successors in such capacity, the “Agent”). Capitalized
terms used herein
but not defined herein
shall have the meanings
provided in the Credit
Agreement. The
Declining Bank hereby
gives you notice pursuant
to Section 2.12 (The Election of Approving Banks to Continue
Funding and Issuing Letters of Credit) of the Credit
Agreement,
that for reasons
other than an
Event of Default, the
undersigned
Declining Bank has elected
not to fund additional Revolving
Loans, approve the
issuance of additional Letters
of Credit or approve
extensions or increases to any existing
Letters of Credit.
The Declining Bank
acknowledges that the
timing of the effectiveness
of this notice is subject
to Sections 2.02, 2.03(u)
and 2.12(a) of the Credit
Agreement.
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Very truly yours, |
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[NAME OF DECLINING BANK] |
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By: |
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Name: |
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Title: |
EXHIBIT O
FORM OF
APPROVING BANK NOTICE
Coöperatieve Centrale
Raiffeisen-Boerenleenbank B.A.,
“Rabobank Nederland”,
New York Branch, as agent
c/o Rabobank International
245 Park Avenue
New York, NY 10167
Phone No. |
212-808-6815 |
Fax No. |
212-916-3731 |
Attention: |
Frank Imperato, |
|
Naoko Kojima, |
|
Xander Willemsen |
______ __, 2014
Re:
Empire Resources, Inc.
Ladies
and Gentlemen:
The
undersigned,
[NAME OF APPROVING
BANK] (the “Approving
Bank”), refers
to the Uncommitted Credit
Agreement,
dated as of June 19 2014 (as amended, supplemented
or otherwise modified from time to time, the “Credit Agreement”), among Empire Resources, Inc. (the “Company”),
the banks from time to time party thereto and Coöperatieve Centrale Raiffeisen–Boerenleenbank B.A., “Rabobank
Nederland”, New York Branch, as agent (in such capacity, together with its successors in such capacity, the “Agent”).
Capitalized terms
used herein
but not defined herein
shall have the meanings
provided in the Credit
Agreement. The
Approving Bank hereby
gives you notice pursuant
to Section 2.12 (The Election of Approving Banks to Continue
Funding and Issuing Letters of Credit) of the Credit
Agreement that the
Approving Bank, in
its full and absolute discretion,
has elected
to continue, subject to the provisions of Section 2.12, funding
Revolving Loans
and approving issuances
of and extensions or increases to Letters
of Credit, notwithstanding
the existence
of a Declining Bank.
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Very truly yours, |
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[NAME OF APPROVING BANK] |
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By: |
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Name: |
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Title: |
SCHEDULE A
TO
EMPIRE RESOURCES, INC.
CREDIT AGREEMENT
Revolving Loan Line Portions
Banks | |
Revolving Loan Line Portion | | |
Revolving Loan Line Portion
Percentage | |
Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch | |
$ | 35,000,000 | | |
| 46.6667 | % |
BNP Paribas | |
$ | 20,000,000 | | |
| 26.6667 | % |
Société Générale S.A. | |
$ | 20,000,000 | | |
| 26.6667 | % |
Total | |
$ | 75,000,000.00 | | |
| 100.0000 | % |
SCHEDULE A, SOLO PAGE
SCHEDULE I
TO
EMPIRE RESOURCES, INC.
UNCOMMITTED CREDIT AGREEMENT
Indebtedness
1. The
€10,000,000 Imbali Facility and the Imbali Guaranty.
2. The
$150,000,000 Amended and Restated Credit Agreement.
3. $12,000,000
Convertible Subordinated Debt Due Jun 1, 2016
4. $1,215,000
6900 Quad Avenue Mortgage
SCHEDULE I (Indebtedness), SOLO PAGE
SCHEDULE II
TO
EMPIRE RESOURCES, INC.
UNCOMMITTED CREDIT AGREEMENT
Investments
1. Imbali
Guaranty.
2. See
Schedule III.
3. $10,000,000
loan to PT. Alumindo, Southern Aluminum Industry and Fung Lam Trading Company maturing January 1, 2016, current balance $5,000,000.
SCHEDULE III
TO
EMPIRE RESOURCES, INC.
UNCOMMITTED CREDIT AGREEMENT
Subsidiaries
Subsidiary Name | |
Jurisdiction of
Organization | |
Persons Holding
Equity Interest | |
Authorized
Equity Interest | |
Outstanding Equity
Interest | |
Percentage of
Ownership | |
Empire Resources Pacific, Ltd. | |
Delaware | |
Empire Resources, Inc. | |
1,000 shares of common stock | |
100 shares of common stock | |
| 100 | % |
Imbali Metals Bvba | |
Belgium | |
Empire Resources, Inc. | |
1,000 shares | |
1,000 shares | |
| 100 | % |
6900 Quad Avenue, LLC | |
Delaware | |
Empire Resources, Inc. | |
N/A | |
N/A | |
| 100 | % |
Empire Resources de Mexico S DE RL DE CV | |
Monterrey, Nuevo Leon | |
Empire Resources, Inc. | |
100,000 Quotas | |
100,000 Quotas | |
| 100 | % |
SCHEDULE III (Subsidiaries), SOLO PAGE
SCHEDULE IV
TO
EMPIRE RESOURCES, INC.
UNCOMMITTED CREDIT AGREEMENT
Limitations on Dividend Clause and Negative
Pledge Clauses
None.
SCHEDULE V
TO
EMPIRE RESOURCES, INC.
AMENDED AND RESTATED
CREDIT AGREEMENT
Credit Insurance
Coface North America Insurance Company Policy Number E-489020205
EXHIBIT 10.3
AMENDED AND RESTATED
SECURITY AGREEMENT
This AMENDED AND RESTATED
SECURITY AGREEMENT, dated as of June 19, 2014 (as amended, supplemented, amended and restated or otherwise modified from time to
time, this “Security Agreement”), is made by EMPIRE RESOURCES, INC., a Delaware corporation (the “Company”),
and each Guarantor (terms used in the preamble and in the recitals have the definitions set forth in or incorporated by reference
in Section 1) from time to time a party to this Security Agreement (each individually, a “Grantor” and
collectively, the “Grantors”), in favor of COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK
NEDERLAND”, NEW YORK BRANCH (“Rabobank”), as agent (together with its successor(s) thereto in such capacity,
the “Agent”) for each of the Secured Parties.
WITNESSETH:
WHEREAS, pursuant to
an Amended and Restated Credit Agreement, dated as of June 19, 2014 (as amended, supplemented, amended and restated or otherwise
modified from time to time, the “Credit Agreement”), among the Company, the Banks from time to time party thereto
and the Agent, the Banks have extended Commitments to make Loans to and issue and participate in Letters of Credit for the account
of the Company; and
WHEREAS, as a condition
precedent to the making of the extensions of credit secured hereby, each Grantor is required to execute and deliver this Security
Agreement.
NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Grantor agrees, for the benefit
of each Secured Party, as follows:
Section
1
DEFINITIONS
1.01 Certain
Terms. The following terms (whether or not underscored) when used in this Security Agreement, including its preamble and recitals,
shall have the following meanings (such definitions to be equally applicable to the singular and plural forms thereof):
“Agent”
is defined in the preamble.
“Collateral”
is defined in Section 2.1.
“Company”
is defined in the preamble.
“Computer
Hardware and Software Collateral” means:
(a) all
computer and other electronic data processing hardware, integrated computer systems, central processing units, memory units, display
terminals, printers, features, computer elements, card readers, tape drives, hard and soft disk drives, cables, electrical supply
hardware, generators, power equalizers, accessories and all peripheral devices and other related computer hardware, including all
operating system software, utilities and application programs in whatsoever form;
Amended and Restated Security Agreement, Page 1 |
(b) all
software programs (including both source code, object code and all related applications and data files), designed for use on the
computers and electronic data processing hardware described in clause (a) above;
(c) all
firmware associated therewith;
(d) all
documentation (including flow charts, logic diagrams, manuals, guides, specifications, training materials, charts and pseudo codes)
with respect to such hardware, software and firmware described in the preceding clauses (a) through (c); and
(e) all
rights with respect to all of the foregoing, including copyrights, licenses, options, warranties, service contracts, program services,
test rights, maintenance rights, support rights, improvement rights, renewal rights and indemnifications and any substitutions,
replacements, improvements, error corrections, updates, additions or model conversions of any of the foregoing.
“Copyright
Collateral” means all copyrights of the Grantors, registered or unregistered and whether published or unpublished, now
or hereafter in force throughout the world including all of the Grantors’ rights, titles and interests in and to all copyrights
registered in the United States Copyright Office or anywhere else in the world and also including the copyrights referred to in
Item A of Schedule V, and registrations and recordings thereof and all applications for registration thereof, whether
pending or in preparation, all copyright licenses, including each copyright license referred to in Item B of Schedule
V, the right to sue for past, present and future infringements of any of the foregoing, all rights corresponding thereto, all
extensions and renewals of any thereof and all Proceeds of the foregoing, including licenses, royalties, income, payments, claims,
damages and Proceeds of suit, which are owned or licensed by the Grantors.
“Credit Agreement”
is defined in the first recital.
“Distributions”
means all dividends paid on Capital Securities, liquidating dividends paid on Capital Securities, shares (or other designations)
of Capital Securities resulting from (or in connection with the exercise of) stock splits, reclassifications, warrants, options,
non-cash dividends, mergers, consolidations, and all other distributions (whether similar or dissimilar to the foregoing) on or
with respect to any Capital Securities constituting Collateral.
“Filing Statement”
is defined in Section 3.7.
“General Intangibles”
means all “general intangibles” and all “payment intangibles”, each as defined in the UCC, and shall include
all interest rate or currency protection or hedging arrangements, all tax refunds, all licenses, permits, concessions and authorizations
and all Intellectual Property Collateral (in each case, regardless of whether characterized as general intangibles under the UCC).
“Grantor”
and “Grantors” are defined in the preamble.
“Intellectual
Property Collateral” means, collectively, the Computer Hardware and Software Collateral, the Copyright Collateral, the
Patent Collateral, the Trademark Collateral and the Trade Secrets Collateral.
Amended and Restated Security Agreement, Page 2 |
“Obligations”
means, with respect to each Grantor: (a) if such Grantor is the Company under the Credit Agreement, all “Obligations”
(as such term is defined in the Credit Agreement); (b) with respect to each Grantor that is not the Company, all present and future
indebtedness, liabilities, and obligations of such Grantor to the Agent and the other Secured Parties arising under the Basic Documents
to which such Grantor is a party and all such Grantor’s Deposit Obligations and Hedging Obligations; and (c) with respect
to each Grantor, and without limiting the generality of the foregoing, all reasonable fees, costs and expenses (including reasonable
attorneys’ fees): (i) of retaking, holding and preparing its Collateral for sale; (ii) arising in connection with the sale
thereof and (iii) arising from the enforcement of any other right or remedy provided hereunder and/or under any other Basic Document;
provided that with respect to each Subsidiary that is a Grantor, the obligations secured by this Security Agreement shall
be limited, with respect to such Grantor, to an aggregate amount equal to the largest amount that would not render such Grantor’s
obligations hereunder and under the other Basic Documents subject to avoidance under Section 544 or 548 of the United States Bankruptcy
Code or under any applicable state law relating to fraudulent transfers or conveyances.
“Patent Collateral”
means:
(a) inventions
and discoveries, whether patentable or not, all letters patent and applications for letters patent throughout the world, including
all patent applications in preparation for filing and each patent and patent application referred to in Item A of Schedule
III;
(b) all
reissues, divisions, continuations, continuations-in-part, extensions, renewals and reexaminations of any of the items described
in clause (a);
(c) all
patent licenses, and other agreements providing such Grantor with the right to use any items of the type referred to in clauses
(a) and (b) above, including each patent license referred to in Item B of Schedule III; and
(d) all
Proceeds of, and rights associated with, the foregoing (including licenses, royalties income, payments, claims, damages and Proceeds
of infringement suits), the right to sue third parties for past, present or future infringements of any patent or patent application,
and for breach or enforcement of any patent license.
“Permitted
Lien” means a Lien permitted under Section 8.06 of the Credit Agreement.
“Security
Agreement” is defined in the preamble.
“Securities
Act” is defined in clause (a) of Section 6.02.
“Specified
Default” means the occurrence and continuance of an Event of Default under clauses (a), (b), (d), (f), (g), (k) or (l)
of Section 9.01 of the Credit Agreement.
“Trademark
Collateral” means:
(a) (i) all
trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service marks,
certification marks, collective marks, logos and other source or business identifiers, and all goodwill of the business associated
therewith, now existing or hereafter adopted or acquired including those referred to in Item A of Schedule IV, whether
currently in use or not, all registrations and recordings thereof and all applications in connection therewith, whether pending
or in preparation for filing, including registrations, recordings and applications in the United States Patent and Trademark Office
or in any office or agency of the United States of America or any State thereof or any other country or political subdivision thereof
or otherwise, and all common-law rights relating to the foregoing, and (ii) the right to obtain all reissues, extensions or renewals
of the foregoing (collectively referred to as the “Trademark”);
Amended and Restated Security Agreement, Page 3 |
(b) all
trademark licenses for the grant by or to such Grantor of any right to use any trademark, including each trademark license referred
to in Item B of Schedule IV; and
(c) all
of the goodwill of the business connected with the use of, and symbolized by the items described in, clause (a), and to the extent
applicable clause (b);
(d) the
right to sue third parties for past, present and future infringements of any Trademark Collateral described in clause (a) and,
to the extent applicable, clause (b); and
(e) all
Proceeds of, and rights associated with, the foregoing, including any claim by such Grantor against third parties for past, present
or future infringement or dilution of any Trademark, Trademark registration or Trademark license, or for any injury to the goodwill
associated with the use of any such Trademark or for breach or enforcement of any Trademark license and all rights corresponding
thereto throughout the world.
“Trade Secrets
Collateral” means all common law and statutory trade secrets and all other confidential, proprietary or useful information
and all know-how obtained by or used in or contemplated at any time for use in the business of a Grantor (all of the foregoing
being collectively called a “Trade Secret”), whether or not such Trade Secret has been reduced to a writing
or other tangible form, including all Documents and things embodying, incorporating or referring in any way to such Trade Secret,
all Trade Secret licenses, including each Trade Secret license referred to in Schedule VI, and including the right to sue
for and to enjoin and to collect damages for the actual or threatened misappropriation of any Trade Secret and for the breach or
enforcement of any such Trade Secret license.
“Uncommitted
Facility Agent” means Rabobank as Agent under the Uncommitted Credit Agreement dated as of the date hereof among the
Company, the lenders party thereto and the Uncommitted Facility Agent.
“Uncommitted
Facility Security Agreement” means the Security Agreement dated as of the date hereof among the Grantors and the Uncommitted
Facility Agent (as amended, supplemented or otherwise modified from time to time).
1.02 Credit
Agreement Definitions. Unless otherwise defined herein or the context otherwise requires, terms used in this Security Agreement,
including its preamble and recitals, have the meanings provided in the Credit Agreement.
1.03 UCC
Definitions. When used herein the terms Accessions, Account, Certificated Securities, Chattel Paper, Commercial Tort Claim,
Commodity Account, Commodity Contract, Deposit Account, Document, Electronic Chattel Paper, Equipment, Goods, Instrument, Inventory,
Investment Property, Letter-of-Credit Rights, Payment Intangible, Proceeds, Promissory Notes, Securities Account, Security Entitlement,
Supporting Obligations and Uncertificated Securities have the meaning provided in Article 8 or Article 9, as applicable, of the
Uniform Commercial Code as from time to time in effect in the State of New York (the “UCC”). Letter of Credit
has the meaning provided in Section 5-102 of the UCC.
Section
2
SECURITY INTEREST
2.01 Grant
of Security Interest. Each Grantor hereby grants to the Agent, for its benefit and the ratable benefit of each other Secured
Party, a continuing security interest in all of such Grantor’s following property, whether now or hereafter existing, owned
or acquired by such Grantor, and wherever located, (collectively, the “Collateral”):
Amended and Restated Security Agreement, Page 4 |
(a) Accounts;
(b) Chattel
Paper;
(c) Commercial
Tort Claims listed on Item I of Schedule II (as such schedule may be amended or supplemented from time to time);
(d) Deposit
Accounts (including, without limitation, each Collateral Account);
(e) Documents;
(f)
General Intangibles;
(g) Goods;
(h) Inventory;
(i)
Equipment;
(j)
Instruments;
(k) Investment
Property;
(l) Letter-of-Credit
Rights and Letters of Credit;
(m) Supporting
Obligations;
(n) all
books, records, writings, databases, information and other property relating to, used or useful in connection with, evidencing,
embodying, incorporating or referring to, any of the foregoing in this Section;
(o) all
Accessions to and Proceeds of the foregoing and, to the extent not otherwise included, (i) all payments under insurance (whether
or not the Agent is the loss payee thereof) and (ii) all tort claims; and
(p) all
other property and rights of every kind and description and interests therein.
Notwithstanding the
foregoing, “Collateral” shall not include:
(i) such
Grantor’s real property interests (including fee real estate, leasehold interests and fixtures);
(ii) any
General Intangibles or other rights arising under any contracts (other than Accounts or the proceeds thereof), instruments, licenses
or other documents as to which the grant of a security interest would (A) constitute a violation of a valid and enforceable
restriction in favor of a third party on such grant, unless and until any required consents shall have been obtained (other than
to the extent that any such restriction would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of
the UCC (or any successor provision or provisions) of any relevant jurisdiction or any other applicable law or principles of equity)
or (B) give any other party to such contract, instrument, license or other document the right to terminate its obligations
thereunder (other than to the extent that any such right would be rendered ineffective pursuant to Sections 9-406, 9-407,
9-408 or 9-409 of the UCC (or any successor provision or provisions) of any relevant jurisdiction or any other applicable law or
principles of equity); provided that such security interest shall attach immediately at such time as the condition causing such
violation or termination shall be remedied and, to the extent severable, shall attach immediately to any portion of such Property
that does not result in any of the consequences specified in clause (A) or (B) of this paragraph, including any Proceeds of
such property;
Amended and Restated Security Agreement, Page 5 |
(iii) Investment
Property consisting of Capital Securities of a foreign Subsidiary of such Grantor in excess of 65% of the total combined voting
power of all Capital Securities of such foreign Subsidiary, provided that, if, such Grantor determines, in its sole discretion,
that as a result of any change in, or the introduction, adoption, effectiveness or interpretation of, tax laws, rules, regulations,
directives or guidelines of the United States of America after the date of this Security Agreement, the grant of security interests
and Liens by such Grantor in respect of any additional Capital Securities of a foreign Subsidiary of such Grantor to the Agent,
for its benefit and the ratable benefit of each other Secured Party, under this Security Agreement would not reasonably be expected
to result in an increase in the tax liabilities of such Grantor over what such liabilities would have been without such security
interests and Liens, then, promptly after the change in, or the introduction, adoption, effectiveness or interpretation of, any
such laws, rules, regulations, directives or guidelines, all such additional Capital Securities shall automatically, without further
action, be deemed to be and shall be subject to the security interests and Liens granted under this Security Agreement;
(iv) any
asset, the granting of a security interest in which would be void or illegal under any Law, or pursuant thereto would result in,
or permit the termination of, such asset (other than to the extent that any such law, rule or regulation would be rendered ineffective
pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions) of any relevant jurisdiction
or any other applicable law or principles of equity); provided that such security interest shall attach immediately at such time
as the condition causing such illegality or unenforceability shall be remedied and, to the extent severable, shall attach immediately
to any portion of such Property that does not result in any of such consequences, including any Proceeds of such property; and
(v) such
Grantor's interests in 6900 Quad Avenue, LLC, a Delaware limited liability company.
2.02 Security
for Obligations. This Security Agreement and the Collateral in which the Agent for the benefit of the Secured Parties is granted
a security interest hereunder by the Grantors secure the payment and performance of all of the Obligations (other than Excluded
Swap Obligations).
2.03 Grantors
Remains Liable. Anything herein to the contrary notwithstanding:
(a) the
Grantors will remain liable under the contracts and agreements included in the Collateral to the extent set forth therein, and
will perform all of their duties and obligations under such contracts and agreements to the same extent as if this Security Agreement
had not been executed;
(b) the
exercise by the Agent of any of its rights hereunder will not release any Grantor from any of its duties or obligations under any
such contracts or agreements included in the Collateral; and
Amended and Restated Security Agreement, Page 6 |
(c) no
Secured Party will have any obligation or liability under any contracts or agreements included in the Collateral by reason of this
Security Agreement, nor will any Secured Party be obligated to perform any of the obligations or duties of any Grantor thereunder
or to take any action to collect or enforce any claim for payment assigned hereunder.
2.04 Distributions
on Pledged Shares. If any Distribution with respect to any Capital Securities pledged hereunder is paid (unless prohibited
by Section 8.13 of the Credit Agreement), such Distribution or payment may be paid directly to the applicable Grantor. If any Distribution
is made in contravention of Section 8.13 of the Credit Agreement, such Grantor shall hold the same segregated and in trust for
the Agent until paid to the Agent in accordance with Section 4.01(c).
2.05 Security
Interest Absolute, etc. This Security Agreement shall in all respects be a continuing, absolute, unconditional and irrevocable
grant of security interest, and shall remain in full force and effect until the later of (x) the Revolving Credit Commitment Termination
Date and (y) the payment in full in cash of the Obligations, the expiration or termination of all Letters of Credit issued under
the Credit Agreement (other than Letters of Credit that have been Cash Collateralized pursuant to Section 2.11(b)(ii) of the Credit
Agreement) and the irrevocable termination of all Commitments thereunder. All rights of the Secured Parties and the security interests
granted to the Agent (for its benefit and the ratable benefit of each Secured Party) hereunder, and all obligations of the Grantors
hereunder, shall, in each case, be absolute, unconditional and irrevocable irrespective of:
(a) any
lack of validity, legality or enforceability of any Basic Document;
(b) the
failure of any Secured Party (i) to assert any claim or demand or to enforce any right or remedy against any Obligor or any other
Person (including any other Grantor) under the provisions of any Basic Document or otherwise, or (ii) to exercise any right or
remedy against any other guarantor (including any other Grantor) of, or collateral securing, any Obligations;
(c) any
change in the time, manner or place of payment of, or in any other term of, all or any part of the Obligations, or any other extension,
compromise or renewal of any Obligations;
(d) any
reduction, limitation, impairment or termination of any Obligations for any reason, including any claim of waiver, release, surrender,
alteration or compromise, and shall not be subject to (and each Grantor hereby waives any right to or claim of) any defense or
setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality, nongenuineness, irregularity,
compromise, unenforceability of, or any other event or occurrence affecting, any Obligations or otherwise;
(e) any
amendment to, rescission, waiver, or other modification of, or any consent to or departure from, any of the terms of any Basic
Document;
(f) any
addition, exchange or release of any Collateral or of any Person that is (or will become) a Grantor (including the Grantors hereunder)
of the Obligations, or any surrender or non-perfection of any collateral, or any amendment to or waiver or release or addition
to, or consent to or departure from, any other guaranty held by any Secured Party securing any of the Obligations; or
(g) any
other circumstance which might otherwise constitute a defense available to, or a legal or equitable discharge of, any Obligor,
any surety or any guarantor.
Amended and Restated Security Agreement, Page 7 |
2.06 Postponement
of Subrogation. Each Grantor agrees that it will not exercise any rights against another Grantor which it may acquire by way
of rights of subrogation under any Basic Document to which it is a party. No Grantor shall seek or be entitled to seek any contribution
or reimbursement from any Obligor, in respect of any payment made under any Basic Document or otherwise, until following the later
of (x) the Revolving Credit Commitment Termination Date and (y) the payment in full in cash of the Obligations, the expiration
or termination of all Letters of Credit issued under the Credit Agreement (other than Letters of Credit that have been Cash Collateralized
pursuant to Section 2.11(b)(ii) of the Credit Agreement) and the irrevocable termination of all Commitments thereunder shall have
occurred. Any amount paid to such Grantor on account of any such subrogation rights prior to the later of (x) the Revolving Credit
Commitment Termination Date and (y) the payment in full in cash of the Obligations, the expiration or termination of all Letters
of Credit issued under the Credit Agreement (other than Letters of Credit that have been Cash Collateralized pursuant to Section
2.11(b)(ii) of the Credit Agreement) and the irrevocable termination of all Commitments thereunder, shall be held in trust for
the benefit of the Secured Parties and shall immediately be paid and turned over to the Agent for the benefit of the Secured Parties
in the exact form received by such Grantor (duly endorsed in favor of the Agent, if required), to be credited and applied against
the Obligations, whether matured or unmatured, in accordance with Section 6.01; provided that if such Grantor has
made payment to the Secured Parties of all or any part of the Obligations and the later of (x) the Revolving Credit Commitment
Termination Date and (y) the payment in full in cash of the Obligations, the expiration or termination of all Letters of Credit
issued under the Credit Agreement (other than Letters of Credit that have been Cash Collateralized pursuant to Section 2.11(b)(ii)
of the Credit Agreement) and the irrevocable termination of all Commitments thereunder has occurred, then at such Grantor’s
request, the Agent (on behalf of the Secured Parties) will, at the expense of such Grantor, execute and deliver to such Grantor
appropriate documents (without recourse and without representation or warranty) necessary to evidence the transfer by subrogation
to such Grantor of an interest in the Obligations resulting from such payment. In furtherance of the foregoing, at all times prior
to the later of (x) the Revolving Credit Commitment Termination Date and (y) the payment in full in cash of the Obligations, the
expiration or termination of all Letters of Credit issued under the Credit Agreement (other than Letters of Credit that have been
Cash Collateralized pursuant to Section 2.11(b)(ii) of the Credit Agreement) and the irrevocable termination of all Commitments
thereunder, such Grantor shall refrain from taking any action or commencing any proceeding against any Obligor (or its successors
or assigns, whether in connection with a bankruptcy proceeding or otherwise) to recover any amounts in respect of payments made
under this Security Agreement to any Secured Party.
Section
3
REPRESENTATIONS AND WARRANTIES
In order to induce
the Secured Parties to enter into the Credit Agreement and make credit extensions thereunder, and to induce the Secured Parties
to make other financial accommodations secured by this Security Agreement, the Grantors represent and warrant to each Secured Party
as set forth below.
3.01 As
to Capital Securities of the Subsidiaries, Investment Property.
(a) With
respect to any direct Subsidiary of any Grantor that is:
(i) a
corporation, business trust, joint stock company or similar Person, all Capital Securities issued by such Subsidiary are duly authorized
and validly issued, fully paid and non-assessable, and represented by a certificate; and
Amended and Restated Security Agreement, Page 8 |
(ii) a
partnership or limited liability company, no Capital Securities issued by such Subsidiary (A) are dealt in or traded on securities
exchanges or in securities markets, (B) expressly provide that such Capital Securities are a security governed by Article 8
of the UCC or (C) are held in a Securities Account, except, with respect to this clause (a)(ii), Capital Securities
(x) for which the Agent is the registered owner or (y) with respect to which the issuer has agreed in an authenticated record with
such Grantor and the Agent to comply with any instructions of the Agent without the consent of such Grantor.
(b) The
percentage of the issued and outstanding Capital Securities of each Subsidiary pledged by each Grantor hereunder is as set forth
on Schedule I.
3.02 Grantors’
Names, Locations, etc.
(a) The
jurisdiction in which each Grantor is located for purposes of Sections 9-301 and 9-307 of the UCC is set forth in Item A
of Schedule II.
(b) Each
location a secured party would have filed a UCC financing statement since June 19, 2009 to perfect a security interest in
Equipment, Inventory and General Intangibles owned by each Grantor is set forth in Item B of Schedule II.
(c) As
of the Closing Date, the Grantors do not have any trade names other than those set forth in Item C of Schedule II
hereto.
(d) As
of the Closing Date, during the four months preceding the date hereof, no Grantors have been known by any legal name different
from the one set forth on the signature page hereto, nor has such Grantor been the subject of any merger or other corporate reorganization,
except as set forth in Item D of Schedule II hereto.
(e) Each
Grantor’s federal taxpayer identification number is (and, during the four months preceding the date hereof, such Grantor
has not had a federal taxpayer identification number different from that) set forth in Item E of Schedule II hereto.
(f) As
of the Closing Date, no Grantor is a party to any federal, state or local government contract except as set forth in Item F
of Schedule II hereto.
(g) As
of the Closing Date, no Grantor maintains any Deposit Accounts, Securities Accounts or Commodity Accounts with any Person, in each
case, except as set forth on Item G of Schedule II.
(h) As
of the Closing Date, no Grantor is the beneficiary of any Letters of Credit, except as set forth on Item H of Schedule
II.
(i) As
of the Closing Date, no Grantor has Commercial Tort Claims, except as set forth on Item I of Schedule II.
(j) The
name set forth on the signature page attached hereto is the true and correct legal name (as defined in the UCC) of each Grantor.
(k) As
of the Closing Date, no third party has possession of any Inventory or Equipment except for Inventory in transit and Inventory
held by the Persons designated on Item J of Schedule II.
Amended and Restated Security Agreement, Page 9 |
3.03 Ownership,
No Liens, etc. Each Grantor owns its Collateral free and clear of any Lien, except for any security interest (a) created by
this Security Agreement and (b) that is a Permitted Lien. No effective UCC financing statement or other filing similar in effect
covering all or any part of the Collateral is on file in any recording office, except those filed in favor of the Agent relating
to this Security Agreement, Permitted Liens or as to which a duly authorized termination statement relating to such UCC financing
statement or other instrument has been delivered to the Agent on or after the Closing Date.
3.04 Possession
of Inventory, Control; etc.
(a) Each
Grantor has, and agrees that it will maintain, exclusive possession of its Documents, Instruments, Promissory Notes, Goods, Equipment
and Inventory, other than (i) Equipment and Inventory in transit in the ordinary course of business, (ii) Equipment and Inventory
that is in the possession or control of a warehouseman, bailee, agent or other Person in the Grantor’s ordinary course of
business and (iii) Documents, Instruments or Promissory Notes that have been delivered to the Agent pursuant to Section 3.05.
In the case of Equipment or Inventory described in clause (ii) above, no lessor or warehouseman of any premises or warehouse upon
or in which such Equipment or Inventory is located has: (i) issued any warehouse receipt, other receipt in the nature of a warehouse
receipt or other Document in respect of any such Equipment or Inventory except (x) non-negotiable Documents (which Documents, if
the Inventory covered thereby is included in the Borrowing Base, have been issued in the name of and delivered to the Grantor or
the Agent) and (y) negotiable Documents (which Documents, if the Inventory covered thereby is included in the Borrowing Base, have
been issued and duly negotiated to the Grantor or the Agent or to order, blank endorsed, and in the possession of the Grantor or
the Agent), (ii) received notification of any secured party’s interest (other than the security interest granted hereunder
or any Lien permitted under Section 8.06(j) of the Credit Agreement) in any such Equipment or Inventory or (iii) any Lien on any
such Equipment or Inventory except, Permitted Borrowing Base Liens.
(b) Each
Grantor is the sole entitlement holder of its Deposit, Commodity and Security Accounts and no other Person (other than the Agent
pursuant to this Security Agreement or an Account Control Agreement or any other Person with respect to Permitted Liens) has control
or possession of, or any other interest in, any of its Deposit, Commodity and Security Accounts or any other securities or property
credited thereto.
(c) As
of the Closing Date, except for the Persons designated on Schedule II who hold Collateral in the capacity designated thereon and
any other Person hereafter identified pursuant to Section 4.07, no Person other than Agent has possession or control of any of
its Collateral, except as permitted under the Credit Agreement or by Sections 4.07 or 7.11.
3.05 Negotiable
Documents, Instruments and Chattel Paper. Except as permitted under the Credit Agreement or by Sections 2.01, 4.03, 4.07 or
7.11, each Grantor has delivered to the Agent possession of all originals of all Documents, Instruments, Promissory Notes, and
tangible Chattel Paper owned or held by such Grantor on the Closing Date.
3.06 Intellectual
Property Collateral. Except as disclosed on Schedules III through V, with respect to any Intellectual Property
Collateral:
(a) such
Intellectual Property Collateral is valid, subsisting, unexpired and enforceable and has not been abandoned or adjudged invalid
or unenforceable, in whole or in part except as could not be expected to have a Material Adverse Effect;
Amended and Restated Security Agreement, Page 10 |
(b) such
Grantor is the sole and exclusive owner of the entire and unencumbered right, title and interest in and to such Intellectual Property
Collateral and no claim has been made that the use of such Intellectual Property Collateral does or may, conflict with, infringe,
misappropriate, dilute, misuse or otherwise violate any of the rights of any third party;
(c) such
Grantor has made all necessary filings and recordations to protect its interest in such Intellectual Property Collateral material
to its business, including recordations of all of its interests in the Patent Collateral and Trademark Collateral material to its
business in the United States Patent and Trademark Office and in corresponding offices throughout the world, and its claims to
the Copyright Collateral in the United States Copyright Office and in corresponding offices throughout the world;
(d) such
Grantor has taken all reasonable steps to safeguard its Trade Secrets and to its knowledge (A) none of the Trade Secrets of such
Grantor has been used, divulged, disclosed or appropriated for the benefit of any other Person other than such Grantor; (B) no
employee, independent contractor or agent of such Grantor has misappropriated any Trade Secrets of any other Person in the course
of the performance of his or her duties as an employee, independent contractor or agent of such Grantor; and (C) no employee, independent
contractor or agent of such Grantor is in default or breach of any term of any employment agreement, non-disclosure agreement,
assignment of inventions agreement or similar agreement or contract relating in any way to the protection, ownership, development,
use or transfer of such Grantor’s Intellectual Property Collateral;
(e) to
such Grantor’s knowledge, no third party is infringing upon any Intellectual Property owned or used by such Grantor in any
material respect, or any of its respective licensees;
(f)
no settlement or consents, covenants not to sue, nonassertion assurances, or
releases have been entered into by such Grantor or to which such Grantor is bound that adversely affects its rights to own or
use any Intellectual Property except as would not have a Material Adverse Effect;
(g) such
Grantor has not made a previous assignment, sale, transfer or agreement constituting a present or future assignment, sale or transfer
of any Intellectual Property for purposes of granting a security interest or as Collateral that has not been terminated or released;
(h) such
Grantor uses adequate standards of quality in the manufacture, distribution, and sale of all products sold and in the provision
of all services rendered under or in connection with all Trademarks and has taken all commercially reasonable action necessary
to insure that all licensees of the Trademarks owned by such Grantor use such adequate standards of quality;
(i)
the consummation of the transactions contemplated by the Credit Agreement and this
Security Agreement will not result in the termination or material impairment of any of the Intellectual Property
Collateral;
(j)
such Grantor owns directly or is entitled to use by license or otherwise, all Patents,
Trademarks, Trade Secrets, Copyrights, mask works, licenses, technology, know-how, processes and rights with respect to any
of the foregoing used in, necessary for or of importance to the conduct of such Grantor’s business; and
Amended and Restated Security Agreement, Page 11 |
(k) the
Intellectual Property Collateral disclosed on Schedules III through V is not material to the operations or business
of any Grantor, is of negligible economic value to the Grantors and its value is otherwise not material.
3.07 Validity,
etc.
(a) This
Security Agreement creates a valid security interest in the Collateral securing the payment of the Obligations.
(b) Except
as otherwise provided in Section 4.07, each Grantor has taken all actions necessary or required under the Basic Documents to perfect
the Agent’s security interest with respect to the Collateral.
(c) Except
as otherwise provided in Section 4.07, each Grantor has taken all actions necessary to obtain control of the Collateral as provided
in Sections 9-104, 9-105, 9-106 and 9-107 of the UCC.
(d) Upon
the filing of the UCC-1 financing statements in the filing office of such Grantor’s jurisdiction of organization listed in
Item A of Schedule II (collectively, the “Filing Statements”) with the appropriate agencies therefor
the security interests created under this Security Agreement shall constitute a perfected security interest in the Collateral described
on such Filing Statements in favor of the Agent on behalf of the Secured Parties to the extent that a security interest therein
may be perfected by filing pursuant to the relevant UCC, prior to all other Liens, except for (i) in the case of Collateral included
in the Borrowing Base (as defined in the Credit Agreement), Permitted Borrowing Base Liens and (ii) in the case of all other assets
of each Grantor, Permitted Liens (in each case (under clauses (i) and (ii)) such security interest shall be second in priority
of right only to the Permitted Liens until the obligations secured by such Permitted Liens have been satisfied).
3.08 Authorization,
Approval, etc. Except as have been obtained or made and are in full force and effect, no authorization, approval or other action
by, and no notice to or filing with, any Governmental Authority or any other third party is required either:
(a) for
the grant by the Grantors of the security interest granted hereby or for the execution, delivery and performance of this Security
Agreement by the Grantors;
(b) for
the perfection or maintenance of the security interests hereunder including the first priority (subject to Permitted Liens) nature
of such security interest (except with respect to the Filing Statements or, with respect to Intellectual Property Collateral material
to any Grantor’s business, the recordation of any agreements with the U.S. Patent and Trademark Office or the U.S. Copyright
Office) or the exercise by the Agent of its rights and remedies hereunder; or
(c) for
the exercise by the Agent of the voting or other rights provided for in this Security Agreement, or, except (i) with respect to
any securities issued by a Subsidiary of a Grantor, as may be required in connection with a disposition of such securities by laws
affecting the offering and sale of securities generally, the remedies in respect of the Collateral pursuant to this Security Agreement
and (ii) any “change of control” or similar filings required by state licensing agencies.
3.09 Best
Interests. It is in the best interests of each Grantor (other than the Company) to execute this Security Agreement inasmuch
as such Grantor will, as a result of being a Subsidiary of the Company, derive substantial direct and indirect benefits from the
Loans and other extensions of credit secured hereby and each Grantor agrees that the Secured Parties are relying on this representation
in agreeing to make such Loans and other extensions of credit.
Amended and Restated Security Agreement, Page 12 |
3.10 Titled
Equipment, etc. No Grantor owns any: (i) Equipment for which a certificate of title has been issued, (ii) vessels documented
under Chapter 121, Title 46, United States Code (the Ship Mortgage Act) or for which an application for documentation is pending;
(iii) rail cars nor (iv) aircraft.
3.11 Value
of Excluded Property. The aggregate book value of the assets excluded from the Collateral under the provisions of clauses (ii)
and (iv) of Section 2.01 does not exceed $500,000 as of the Closing Date.
Section
4
COVENANTS
Each Grantor covenants
and agrees that, at all times prior to the later of (x) the Revolving Credit Commitment Termination Date and (y) the payment in
full in cash of the Obligations (other than any contingent obligations for which no claim has been made or asserted), the expiration
or termination of all Letters of Credit issued under the Credit Agreement (other than Letters of Credit that have been Cash Collateralized
pursuant to Section 2.11(b)(ii) of the Credit Agreement) and the irrevocable termination of all Commitments thereunder, such Grantor
will perform, comply with and be bound by the obligations set forth below.
4.01 As
to Investment Property, etc.
(a) Capital
Securities of Subsidiaries. No Grantor will allow any of its Subsidiaries
(i) that
is a corporation, business trust, joint stock company or similar Person, to issue Uncertificated Securities;
(ii) that
is a partnership or limited liability company, to (A) issue Capital Securities that are to be dealt in or traded on securities
exchanges or in securities markets, (B) expressly provide in its Governing Documents that its Capital Securities are securities
governed by Article 8 of the UCC, or (C) place such Subsidiary’s Capital Securities in a Securities Account; and
(iii) to
issue Capital Securities in addition to or in substitution for the Capital Securities pledged hereunder, except to such Grantor
(and such Capital Securities are immediately pledged and delivered to the Agent pursuant to the terms of this Security Agreement).
(b) Continuous
Pledge. Each Grantor will (subject to the terms of the Credit Agreement and Sections 3.04(a), 4.07 and 7.11) deliver to the
Agent and at all times keep pledged to the Agent pursuant hereto, on a first-priority, perfected basis (subject to the terms of
the Intercreditor Agreement and Section 2.01) all Payment Intangibles to the extent they are evidenced by a Document, Instrument,
Promissory Note or Chattel Paper, and all interest and principal with respect to such Payment Intangibles, and all Proceeds and
rights from time to time received by or distributable to such Grantor in respect of any of the foregoing Collateral. Each Grantor
agrees that, subject to the terms of the Credit Agreement and subject to Sections 2.01, 3.04(a), 4.07 and 7.11, it will, promptly
following receipt thereof, deliver to the Agent possession of all originals of negotiable Documents, Instruments, Promissory Notes
and Chattel Paper that it acquires following the Closing Date.
Amended and Restated Security Agreement, Page 13 |
(c) Voting
Rights; Dividends, etc. All dividends, Distributions, interest, principal, cash payments, Payment Intangibles and Proceeds
that may at any time and from time to time be held by such Grantor, but which such Grantor is then obligated to deliver to the
Agent, shall, until delivery to the Agent, be held by such Grantor separate and apart from its other property in trust for the
Agent. The Agent agrees that unless a Specified Default shall exist and the Agent shall have given the notice referred to in clause
(b), such Grantor will have the exclusive voting power with respect to any Investment Property constituting Collateral and
the Agent will, upon the written request of such Grantor, promptly deliver such proxies and other documents, if any, as shall be
reasonably requested by such Grantor which are necessary to allow such Grantor to exercise that voting power; provided that
no vote shall be cast, or consent, waiver, or ratification given, or action taken by such Grantor that would impair any such Collateral
or be inconsistent with or violate any provision of any Basic Document.
4.02 Change
of Name, etc. No Grantor will change its name or place of incorporation or organization or federal taxpayer identification
number except upon 30 days’ prior written notice to the Agent.
4.03 As
to Accounts.
(a) Each
Grantor shall have the right to collect all Accounts so long as no Specified Default exists.
(b) Each
Grantor agrees, promptly upon receipt of notice of the existence of a Specified Default from the Agent and without any request
therefor by the Agent, so long as such Specified Default shall continue, to deliver (properly endorsed where required hereby or
requested by the Agent) to the Agent interest, principal, and all Proceeds of the Collateral, in each case thereafter received
by such Grantor, all of which shall be held by the Agent as additional Collateral.
(c) Following
(i) the occurrence and continuance of a Specified Default and (ii) the delivery of notice pursuant to clause (b), the Agent
shall have the right to apply any amount in the Collateral Account to the payment of any Obligations which are due and payable.
(d) With
respect to each of the Collateral Account, it is hereby confirmed and agreed that (i) deposits in such Collateral Account are subject
to a security interest as contemplated hereby, (ii) such Collateral Account shall be under the control of the Agent and (iii) during
the continuance of a Specified Default, the Agent shall have the right to withdraw funds from such Collateral Account and solely
apply such funds to repay the Obligations in accordance with the Credit Agreement. For the avoidance of doubt, following the waiver
or cure of any Specified Default and so long as after giving effect thereto no other Event of Default shall be continuing, to the
extent that the Agent shall not have previously applied any such funds to repay the Obligations, the Agent shall, at the request
of the Company, transfer, or shall be caused to be transferred, to the Grantor all funds in the Collateral Account.
4.04 As
to Grantors’ Use of Collateral.
(a) Subject
to clause (b), each Grantor (i) may in the ordinary course of its business, at its own expense, sell, lease or furnish under
the contracts of service any of the Inventory normally held by such Grantor for such purpose, and use and consume, in the ordinary
course of its business, any raw materials, work in process or materials normally held by such Grantor for such purpose, (ii) will,
at its own expense, endeavor to collect, as and when due, all amounts due with respect to any of the Collateral, including the
taking of such action with respect to such collection as the Agent may request following the occurrence of a Specified Default
or, in the absence of such request, as such Grantor may deem advisable, and (iii) may grant, in the ordinary course of business,
to any party obligated on any of the Collateral, any rebate, refund or allowance to which such party may be lawfully entitled,
and may accept, in connection therewith, the return of Goods, the sale or lease of which shall have given rise to such Collateral.
Amended and Restated Security Agreement, Page 14 |
(b) At
any time following the occurrence and during the continuance of a Specified Default, whether before or after the maturity of any
of the Obligations, the Agent may (i) revoke any or all of the rights of each Grantor set forth in clause (a), (ii) notify
any parties obligated on any of the Collateral to make payment to the Agent of any amounts due or to become due thereunder and
(iii) enforce collection of any of the Collateral by suit or otherwise and surrender, release, or exchange all or any part thereof,
or compromise or extend or renew for any period (whether or not longer than the original period) any indebtedness thereunder or
evidenced thereby.
(c) Upon
request of the Agent following the occurrence and during the continuance of a Specified Default, each Grantor will, at its own
expense, notify any parties obligated on any of the Collateral to make payment to the Agent of any amounts due or to become due
thereunder.
(d) At
any time following the occurrence and during the continuation of a Specified Default, the Agent may endorse, in the name of such
Grantor, any item, howsoever received by the Agent, representing any payment on or other Proceeds of any of the Collateral.
4.05 As
to Intellectual Property Collateral. Each Grantor covenants and agrees to comply with the following provisions as such provisions
relate to any Intellectual Property Collateral material to the operations or business of such Grantor:
(a) such
Grantor will not (i) do or fail to perform any act whereby any of the Patent Collateral may lapse or become abandoned or dedicated
to the public or unenforceable, (ii) permit any of its licensees to (A) fail to continue to use any of the Trademark Collateral
in order to maintain all of the Trademark Collateral in full force free from any claim of abandonment for non-use, (B) fail to
maintain as in the past the quality of products and services offered under all of the Trademark Collateral, (C) fail to employ
all of the Trademark Collateral registered with any federal or state or foreign authority with an appropriate notice of such registration,
(D) adopt or use any other Trademark which is confusingly similar or a colorable imitation of any of the Trademark Collateral,
(E) use any of the Trademark Collateral registered with any federal, state or foreign authority except for the uses for which registration
or application for registration of all of the Trademark Collateral has been made or (F) do or permit any act or knowingly omit
to do any act whereby any of the Trademark Collateral may lapse or become invalid or unenforceable, or (iii) do or permit any act
or knowingly omit to do any act whereby any of the Copyright Collateral or any of the Trade Secrets Collateral may lapse or become
invalid or unenforceable or placed in the public domain except upon expiration of the end of an unrenewable term of a registration
thereof, unless, in the case of any of the foregoing requirements in clauses (i), (ii) and (iii), such Grantor
shall either (x) reasonably and in good faith determine that any of such Intellectual Property Collateral is of negligible economic
value to such Grantor, or (y) the loss of the Intellectual Property Collateral would not have a Material Adverse Effect on the
business;
(b) such
Grantor shall promptly notify the Agent if it knows, or has reason to know, that any application or registration relating to any
material item of the Intellectual Property Collateral may become abandoned or dedicated to the public or placed in the public domain
or invalid or unenforceable, or of any adverse determination or development (including the institution of, or any such determination
or development in, any proceeding in the United States Patent and Trademark Office, the United States Copyright Office or any foreign
counterpart thereof or any court) regarding such Grantor’s ownership of any of the Intellectual Property Collateral, its
right to register the same or to keep and maintain and enforce the same;
Amended and Restated Security Agreement, Page 15 |
(c) in
no event will such Grantor or any of its agents, employees, designees or licensees file an application for the registration of
any Intellectual Property Collateral with the United States Patent and Trademark Office, the United States Copyright Office or
any similar office or agency in any other country or any political subdivision thereof, unless it promptly informs the Agent, and
upon request of the Agent (subject to the terms of the Credit Agreement), executes and delivers all agreements, instruments and
documents as the Agent may request to evidence the Agent’s security interest in such Intellectual Property Collateral;
(d) such
Grantor will take all necessary steps, including in any proceeding before the United States Patent and Trademark Office, the United
States Copyright Office or (subject to the terms of the Credit Agreement) any similar office or agency in any other country or
any political subdivision thereof, to maintain and pursue any application (and to obtain the relevant registration) filed with
respect to, and to maintain any registration of, the Intellectual Property Collateral, including the filing of applications for
renewal, affidavits of use, affidavits of incontestability and opposition, interference and cancellation proceedings and the payment
of fees and taxes (except to the extent that dedication, abandonment or invalidation is permitted under the foregoing clause
(a) or (b)); and
(e) such
Grantor will promptly execute and deliver to the Agent (as applicable) a Patent Security Agreement, Trademark Security Agreement
and/or Copyright Security Agreement, as the case may be, in the forms of Exhibit A, Exhibit B and Exhibit C
hereto following its obtaining an interest in any such Intellectual Property, and shall execute and deliver to the Agent any other
document required to acknowledge or register or perfect the Agent’s interest in any part of such item of Intellectual Property
Collateral unless such Grantor shall determine in good faith (with the consent of the Agent) that any Intellectual Property Collateral
is of negligible economic value to such Grantor.
4.06 As
to Commercial Tort Claims. Each Grantor covenants and agrees that, until the later of (x) the Revolving Credit Commitment Termination
Date and (y) the payment in full in cash of the Obligations, the expiration or termination of all Letters of Credit issued under
the Credit Agreement (other than Letters of Credit that have been Cash Collateralized pursuant to Section 2.11(b)(ii) of the Credit
Agreement) and the irrevocable termination of all Commitments thereunder, with respect to any Commercial Tort Claim in excess of
$1,000,000 individually or in the aggregate hereafter arising, it shall deliver to the Agent a supplement in form and substance
reasonably satisfactory to the Agent, together with all supplements to schedules thereto identifying such new Commercial Tort Claims.
4.07 Further
Assurances; Exceptions to Perfection. Each Grantor agrees that, from time to time at its own expense, it will promptly execute
and deliver all further instruments and documents, and take all further action, that may be necessary or that the Agent may reasonably
request, in order to perfect, preserve and protect any security interest granted or purported to be granted hereby or to enable
the Agent to exercise and enforce its rights and remedies hereunder with respect to any Collateral. Without limiting the generality
of the foregoing, such Grantor will:
(a) from
time to time upon the reasonable request of the Agent, promptly deliver to the Agent such stock powers, instruments and similar
documents, satisfactory in form and substance to the Agent, with respect to such Collateral as the Agent may request and will,
from time to time upon the request of the Agent, after the occurrence and during the continuance of any Specified Default, promptly
transfer any securities constituting Collateral into the name of any nominee designated by the Agent; subject to Sections 2.01,
3.04(a), 4.07 and 7.11, if any Collateral shall be evidenced by an Instrument, negotiable Document, Promissory Note or tangible
Chattel Paper, deliver and pledge to the Agent hereunder such Instrument, negotiable Document, Promissory Note or tangible Chattel
Paper duly endorsed and accompanied by duly executed instruments of transfer or assignment, all in form and substance satisfactory
to the Agent;
Amended and Restated Security Agreement, Page 16 |
(b) take
such actions as may be necessary or that the Agent may request in order to perfect and preserve the security interests and other
rights granted or purported to be granted to the Agent hereby;
(c) deliver
to the Agent and at all times keep pledged to the Agent pursuant hereto, on a first-priority, perfected basis (subject to the terms
of the Intercreditor Agreement), at the request of the Agent, all Investment Property constituting Collateral and all interest
and principal with respect to Promissory Notes, and all Proceeds and rights from time to time received by or distributable to such
Grantor in respect of any of the foregoing Collateral;
(d) not
take or omit to take any action the taking or the omission of which would result in any impairment or alteration of any obligation
of the maker of any Payment Intangible or other Instrument constituting Collateral;
(e) not
create any tangible Chattel Paper without placing a legend on such tangible Chattel Paper reasonably acceptable to the Agent indicating
that the Agent has a security interest in such Chattel Paper;
(f)
furnish to the Agent, from time to time at the Agent’s reasonable request,
statements and schedules identifying the location of all Equipment and Inventory;
(g) without
limitation of Section 8.03(f) of the Credit Agreement, furnish to the Agent, from time to time at the Agent’s reasonable
request, statements and schedules further identifying and describing the Collateral and such other reports in connection with the
Collateral as the Agent may request, all in reasonable detail;
(h) use
commercially reasonable efforts to obtain a lien subordination or waiver agreement in a form reasonably approved by the Agent from
the landlord of each location that it or any of its Subsidiaries leases and at which any Inventory is located and a mortgagee lien
subordination or waiver in a form reasonably approved by the Agent from each location it or any of its Subsidiaries owns that is
mortgaged to a third party;
(i)
use commercially reasonable efforts to obtain a lien acknowledgement in a form reasonably
acceptable to the Agent from each third party warehouse at which any Inventory is customarily stored; and
(j)
do all things reasonably requested by the Agent in order to enable the Agent to have and
maintain control over the Collateral consisting of Investment Property, Deposit Accounts, Letter-of-Credit-Rights and
Electronic Chattel Paper.
With respect to the foregoing and the grant
of the security interest hereunder, each Grantor hereby authorizes the Agent to file one or more financing or continuation statements,
and amendments thereto, relative to all or any part of the Collateral. Each Grantor agrees that a carbon, photographic or other
reproduction of this Security Agreement or any UCC financing statement covering the Collateral or any part thereof shall be sufficient
as a UCC financing statement where permitted by law. Each Grantor hereby authorizes the Agent to file financing statements describing
as the collateral covered thereby “all of the debtor’s personal property or assets” or words to that effect,
notwithstanding that such wording may be broader in scope than the Collateral described in this Security Agreement.
Amended and Restated Security Agreement, Page 17 |
Notwithstanding the foregoing or any other
terms in any Basic Document, if no Specified Default exists:
(i) a
Grantor may retain for collection in the ordinary course of business checks representing proceeds of Accounts received in the ordinary
course of business;
(ii) a
Grantor may retain any letters of credit and money received or held in the ordinary course of business;
(iii) a
Grantor may retain and utilize in the ordinary course of business all dividends and interest paid in respect to any of the Capital
Securities or any other Investment Property;
(iv) a
Grantor may retain any Documents received and further negotiated in the ordinary course of business (except for Documents required
to be delivered to the Agent with respect to Inventory included in the Borrowing Base); and
(v) a
Grantor shall not be required to:
(A) cause
the Agent’s security interest to be noted on any certificate of title evidencing any Equipment;
(B) grant
the Agent control over any Chattel Paper or Letter of Credit Right;
(C) grant
the Agent control over any Security Account or Commodity Account unless such Collateral is included in the Borrowing Base; or
(D) take
any action under the laws of any jurisdiction other than the United States of America or any jurisdiction located therein to create,
perfect or protect the security interest of the Agent in any Intellectual Property registered outside the United States of America.
If a Specific Default occurs and the Agent
requests, then the Grantors shall take such action as the Agent may reasonably request to perfect and protect the security interests
of the Agent in all of the Collateral including any of the Collateral described in clauses (A) through (D) above.
4.08 Deposit
Accounts, Securities Accounts and Commodities Accounts. Following the occurrence and during the continuance of a Specified
Default, at the request of the Agent or the Required Banks, each Grantor will maintain all of its operating deposit accounts only
with the Agent, J.P. Morgan Chase Bank, N.A., or with any depositary institution that has entered into an Account Control Agreement
in favor of the Agent. No Grantor will open any new operating deposit accounts located in the United States (other than payroll
accounts) not in existence on the date hereof without the prior written consent (not to be unreasonably withheld) of all Banks
(other than, for the avoidance of doubt, any Affiliate of an Issuing Bank which has issued a Letter of Credit pursuant to the last
sentence of the definition of Issuing Bank), and no Grantor will open any new Commodity Accounts or Security Accounts located in
the United States not in existence on the date hereof unless such Grantor shall have given the Agent thirty (30) days prior written
notice thereof. When no Specified Default exists, each Grantor may make purchases and sales of Investment Property in accordance
with the restrictions on investment set out in the Credit Agreement and, for the avoidance of doubt, may make any and all withdrawals
from its Deposit Accounts. When a Specified Default exists and the Agent provides the Company notice, no Grantor shall be authorized
to make purchases and sales of the Investment Property, be authorized to make any withdrawals from any Deposit Account and it shall
take such steps as Agent may reasonably request to give Agent control over all Investment Property and Deposit Accounts. No Grantor
will give any party control over any Investment Property or Deposit Account.
Amended and Restated Security Agreement, Page 18 |
4.09 Equipment
and Inventory. Each Grantor shall keep its Equipment and Inventory in (or in transit to) the United States of America, Canada
or Australia, or in transit to Latin America or, upon thirty (30) days prior written notice to the Agent, at such other places
where all action required to perfect and protect the Agent’s security interest in such Collateral with the priority required
by the Credit Agreement shall have been taken. Each Grantor shall notify the Agent if it acquires after the Closing Date any vessel
subject to the Ship Mortgage Act of 1920 or any aircraft and, subject to Section 4.07, shall take all action reasonably deemed
necessary or desirable by the Agent to create, perfect and protect its interest in such Collateral with the priority required by
the Credit Agreement.
4.10 Warehouse
Receipts Non Negotiable. Each Grantor agrees that if any warehouse receipt or receipt in the nature of a warehouse receipt
is issued in respect of any portion of the Collateral, such warehouse receipt or receipt in the nature thereof shall not be negotiable
unless such warehouse receipt or receipt in the nature thereof is issued and duly negotiated to the Grantor or the Agent or to
order, blank endorsed, and in the possession of the Grantor or the Agent.
4.11 Chattel
Paper and Letters of Credit. Subject to the terms of the Basic Documents and the Intercreditor Agreement, no Grantor will give
any party control over any Letter of Credit Right or electronic Chattel Paper.
Section
5
THE AGENT
5.01 Agent
Appointed Attorney-in-Fact. Each Grantor hereby irrevocably appoints the Agent its attorney-in-fact, with full authority in
the place and stead of such Grantor and in the name of such Grantor or otherwise, from time to time in the Agent’s discretion,
following the occurrence and during the continuance of a Specified Default, to take any action and to execute any instrument which
the Agent may deem necessary or advisable to accomplish the purposes of this Security Agreement, including:
(a) to
ask, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due
under or in respect of any of the Collateral;
(b) to
receive, endorse, and collect any drafts or other Instruments, Documents and Chattel Paper, in connection with clause (a)
above;
(c) to
file any claims or take any action or institute any proceedings which the Agent may deem necessary or desirable for the collection
of any of the Collateral or otherwise to enforce the rights of the Agent with respect to any of the Collateral; and
(d) to
perform the affirmative obligations of such Grantor hereunder.
Each Grantor hereby acknowledges, consents
and agrees that the power of attorney granted pursuant to this Section is irrevocable and coupled with an interest.
5.02 Agent
May Perform. If any Grantor fails to perform any agreement contained herein or in any other Basic Document, the Agent may itself
perform, or cause performance of, such agreement, and the expenses of the Agent incurred in connection therewith shall be payable
by such Grantor pursuant to Section 11.03 of the Credit Agreement.
Amended and Restated Security Agreement, Page 19 |
5.03 Agent
Has No Duty. The powers conferred on the Agent hereunder are solely to protect its interest (on behalf of the Secured Parties)
in the Collateral and shall not impose any duty on it to exercise any such powers. Except for reasonable care of any Collateral
in its possession and the accounting for moneys actually received by it hereunder, the Agent shall have no duty as to any Collateral
or responsibility for:
(a) ascertaining
or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Investment
Property, whether or not the Agent has or is deemed to have knowledge of such matters, or
(b) taking
any necessary steps to preserve rights against prior parties or any other rights pertaining to any Collateral.
5.04 Reasonable
Care. The Agent is required to exercise reasonable care in the custody and preservation of any of the Collateral in its possession;
provided that the Agent shall be deemed to have exercised reasonable care in the custody and preservation of any of the
Collateral, if it takes such action for that purpose as each Grantor reasonably requests in writing at times other than upon the
occurrence and during the continuance of any Specified Default, but failure of the Agent to comply with any such request at any
time shall not in itself be deemed a failure to exercise reasonable care.
Section
6
REMEDIES
6.01 Certain
Remedies. If any Event of Default shall have occurred and be continuing:
(a) The
Agent may, with the consent of the Required Banks, and, upon request of the Required Banks, shall exercise in respect of the Collateral,
in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a Secured
Party on default under the UCC (whether or not the UCC applies to the affected Collateral) and also may, with the consent of the
Required Banks, and, upon request of the Required Banks, shall:
(i) take
possession of any Collateral not already in its possession without demand and without legal process;
(ii) require
each Grantor to, and each Grantor hereby agrees that it will, at its expense and upon request of the Agent forthwith, assemble
all or part of the Collateral as directed by the Agent and make it available to the Agent at a place to be designated by the Agent
that is reasonably convenient to both parties;
(iii) enter
onto the property where any Collateral is located and take possession thereof without demand and without legal process;
(iv) without
notice except as specified below, lease, license, sell or otherwise dispose of the Collateral or any part thereof in one or more
parcels at public or private sale, at any of the Agent’s offices or elsewhere, for cash, on credit or for future delivery,
and upon such other terms as the Agent may deem commercially reasonable. Each Grantor agrees that, to the extent notice of sale
shall be required by law, at least ten days’ prior notice to such Grantor of the time and place of any public sale or the
time after which any private sale is to be made shall constitute reasonable notification. The Agent shall not be obligated to make
any sale of Collateral regardless of notice of sale having been given. The Agent may adjourn any public or private sale from time
to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and
place to which it was so adjourned.
Amended and Restated Security Agreement, Page 20 |
(b) All
cash Proceeds received by the Agent in respect of any sale of, collection from, or other realization upon, all or any part of the
Collateral shall be applied by the Agent as provided in the Credit Agreement (but subject to the Intercreditor Agreement).
(c) The
Agent may, with the consent of the Required Banks, and, upon request of the Required Banks, shall:
(i) transfer
all or any part of the Collateral into the name of the Agent or its nominee, with or without disclosing that such Collateral is
subject to the Lien hereunder;
(ii) notify
the parties obligated on any of the Collateral to make payment to the Agent of any amount due or to become due thereunder;
(iii) withdraw,
or cause or direct the withdrawal, of all funds with respect to the Collateral Account;
(iv) enforce
collection of any of the Collateral by suit or otherwise, and surrender, release or exchange all or any part thereof, or compromise
or extend or renew for any period (whether or not longer than the original period) any obligations of any nature of any party with
respect thereto;
(v) endorse
any checks, drafts, or other writings in any Grantor’s name to allow collection of the Collateral;
(vi) take
control of any Proceeds of the Collateral; and
(vii) execute
(in the name, place and stead of any Grantor) endorsements, assignments, stock powers and other instruments of conveyance or transfer
with respect to all or any of the Collateral.
6.02 Securities
Laws.
(a) If
the Agent shall determine to exercise its right to sell all or any portion of the Collateral pursuant to Section 6.01, each
Grantor agrees that, upon request of the Agent, each Grantor will, at its own expense:
(i) execute
and deliver, and cause (or, with respect to any issuer which is not a Subsidiary of such Grantor, use its best efforts to cause)
each issuer of the Collateral contemplated to be sold and the directors and officers thereof to execute and deliver, all such instruments
and documents, and do or cause to be done all such other acts and things, as may be necessary or, in the opinion of the Agent,
advisable to register such Collateral under the provisions of the Securities Act of 1933, as from time to time amended (the “Securities
Act”), and cause the registration statement relating thereto to become effective and to remain effective for such period
as prospectuses are required by law to be furnished, and to make all amendments and supplements thereto and to the related prospectus
which, in the opinion of the Agent, are necessary or advisable, all in conformity with the requirements of the Securities Act and
the rules and regulations of the SEC applicable thereto;
(ii) use
its best efforts to exempt the Collateral under the state securities or “Blue Sky” laws and to obtain all necessary
governmental approvals for the sale of the Collateral, as requested by the Agent;
(iii) cause
(or, with respect to any issuer that is not a Subsidiary of a Grantor, use its best efforts to cause) each such issuer to make
available to its security holders, as soon as practicable, an earnings statement that will satisfy the provisions of Section 11(a)
of the Securities Act; and
Amended and Restated Security Agreement, Page 21 |
(iv) do
or cause to be done all such other acts and things as may be necessary to make such sale of the Collateral or any part thereof
valid and binding and in compliance with applicable law.
(b) Each
Grantor acknowledges the impossibility of ascertaining the amount of damages that would be suffered by the Agent or the Secured
Parties by reason of the failure by such Grantor to perform any of the covenants contained in this Section and consequently agrees
that, if such Grantor shall fail to perform any of such covenants, it shall pay, as liquidated damages and not as a penalty, an
amount equal to the value (as determined by the Agent) of such Collateral on the date the Agent shall demand compliance with this
Section.
6.03 Compliance
with Restrictions. Each Grantor agrees that in any sale of any of the Collateral whenever an Event of Default exists, the Agent
is hereby authorized to comply with any limitation or restriction in connection with such sale as it may be advised by counsel
is necessary in order to avoid any violation of applicable law (including compliance with such procedures as may restrict the number
of prospective bidders and purchasers, require that such prospective bidders and purchasers have certain qualifications, and restrict
such prospective bidders and purchasers to Persons who will represent and agree that they are purchasing for their own account
for investment and not with a view to the distribution or resale of such Collateral), or in order to obtain any required approval
of the sale or of the purchaser by any Governmental Authority or official, and such Grantor further agrees that such compliance
shall not result in such sale being considered or deemed not to have been made in a commercially reasonable manner, nor shall the
Agent be liable nor accountable to such Grantor for any discount allowed by the reason of the fact that such Collateral is sold
in compliance with any such limitation or restriction.
6.04 Protection
of Collateral. The Agent may from time to time, at its option, perform any act which any Grantor fails to perform with respect
to the maintenance, preservation and protection of the Collateral after being requested in writing so to perform (it being understood
that no such request need be given after the occurrence and during the continuance of an Event of Default) and the Agent may from
time to time take any other action which the Agent deems necessary for the maintenance, preservation or protection of any of the
Collateral or of its security interest therein.
6.05 Standards
for Exercising Remedies. To the extent that applicable law imposes duties on Agent to exercise remedies in a commercially reasonable
manner, each Grantor acknowledges and agrees that it is not commercially unreasonable for Agent: (a) to fail to incur expenses
reasonably deemed significant by Agent to prepare any Collateral for disposition or otherwise to complete raw material for work-in-process
into finished goods or other finished products for disposition; (b) to fail to obtain third party consents for access to Collateral
to be disposed of, or to obtain or if not required by other law, to fail to obtain governmental or third party consents for the
collection or disposition of the Collateral to be collected or disposed of; (c) to fail to exercise collection remedies against
account debtors or other persons obligated on Collateral or to remove Liens on or any adverse claims against the Collateral; (d)
to exercise collection remedies against account debtors and other persons obligated on Collateral directly or through the use of
collection agencies and other collection specialists; (e) to advertise dispositions of Collateral through publications or media
of general circulation, whether or not the Collateral is of a specialized nature; (f) to contact other persons, whether or not
in the same business as Grantor, for expressions of interest in acquiring all or any portion of the Collateral; (g) to hire one
or more professional auctioneers to assist in the disposition of Collateral, whether or not the Collateral is of a specialized
nature; (h) to dispose of Collateral by utilizing Internet sites that provide for the auction of assets of the types included in
the Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of assets; (i) to dispose of
assets in wholesale rather than retail markets; (j) to disclaim disposition warranties; (k) to purchase insurance or credit enhancements
to insure Agent against risks of loss, collection or disposition of Collateral or to provide Agent a guaranteed return from the
collection or disposition of Collateral; (l) to the extent deemed appropriate by Agent in its commercially reasonable discretion,
to obtain the services of brokers, investment bankers, consultants and other professionals (including Agent and its affiliates)
to assist Agent in the collection or disposition of any of the Collateral; or (m) to comply with any applicable state or federal
law requirement in connection with the disposition or collection of the Collateral. Each Grantor acknowledges that this Section
is intended to provide non-exhaustive indications of what actions or omissions by Agent would not be commercially unreasonable
in Agent’s exercise of remedies against the Collateral and that other actions or omissions by Agent shall not be deemed commercially
unreasonable solely by not being included in this Section. Without limitation upon the foregoing, nothing contained in this Section
shall be construed to grant any rights to any Grantor or to impose any duties upon Agent that would not have been granted or imposed
by this Agreement or by applicable law in the absence of this Section.
Amended and Restated Security Agreement, Page 22 |
Section
7
MISCELLANEOUS PROVISIONS
7.01 Basic
Document. This Security Agreement is a Basic Document executed pursuant to the Credit Agreement and shall (unless otherwise
expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions thereof, including
Article XI thereof.
7.02 Binding
on Successors, Transferees and Assigns; Assignment. This Security Agreement shall remain in full force and effect until the
later of (x) the Revolving Credit Commitment Termination Date and (y) the payment in full in cash of the Obligations, the expiration
or termination of all Letters of Credit issued under the Credit Agreement (other than Letters of Credit that have been Cash Collateralized
pursuant to Section 2.11(b)(ii) of the Credit Agreement) and the irrevocable termination of all Commitments thereunder, shall be
binding upon the Grantors and their successors, transferees and assigns and shall inure to the benefit of and be enforceable by
each Secured Party and its successors, transferees and assigns; provided that no Grantor may (unless otherwise permitted
under the terms of the Credit Agreement or this Security Agreement) assign any of its obligations hereunder without the prior written
consent of all Banks.
7.03 Amendments,
etc. Except as provided in Section 7.05, no amendment to or waiver of any provision of this Security Agreement, nor consent
to any departure by any Grantor from its obligations under this Security Agreement, shall in any event be effective unless the
same shall be in writing and signed by the Agent (on behalf of the Banks or the Required Banks, as the case may be, pursuant to
Section 11.04 of the Credit Agreement) and the Grantors and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.
7.04 Notices.
All notices and other communications provided for in this Security Agreement shall be given or made in accordance with the Credit
Agreement and if to any Grantor, at the address for notices of the Company set forth therein.
7.05 Additional
Grantors. Upon the execution and delivery by any other Person of a supplement in the form of Annex I hereto, such Person shall
become a “Grantor” hereunder with the same force and effect as if it were originally a party to this Security agreement
and named as a “Grantor” hereunder. The execution and delivery of such supplement shall not require the consent of
any other Grantor hereunder, and the rights and obligations of each Grantor hereunder shall remain in full force and effect notwithstanding
the addition of any new Grantor as a party to this Security Agreement.
7.06 No
Waiver; Remedies. In addition to, and not in limitation of Section 2.05, no failure on the part of any Secured
Party to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies
herein provided are cumulative and not exclusive of any remedies provided by law.
Amended and Restated Security Agreement, Page 23 |
7.07 Headings.
The various headings of this Security Agreement are inserted for convenience only and shall not affect the meaning or interpretation
of this Security Agreement or any provisions thereof.
7.08 Severability.
Any provision of this Security Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such provision and
such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions
of this Security Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.
7.09 Governing
Law, Entire Agreement, etc. THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF
THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW
YORK), EXCEPT TO THE EXTENT THAT THE PERFECTION, EFFECT OF PERFECTION OR NONPERFECTION, AND PRIORITY OF THE SECURITY INTEREST HEREUNDER,
OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE
OF NEW YORK. This Security Agreement and the other Basic Documents constitute the entire understanding among the parties hereto
with respect to the subject matter hereof and thereof and supersede any prior agreements, written or oral, with respect thereto.
7.10 Counterparts.
This Security Agreement may be executed by the parties hereto in several counterparts, each of which shall be deemed to be an original
and all of which shall constitute together but one and the same agreement. Delivery of an executed counterpart of a signature page
to this Security Agreement by facsimile or other electronic communication shall be effective as delivery of a manually executed
counterpart of this Security Agreement.
7.11 Uncommitted
Facility. Notwithstanding anything to the contrary contained herein, (i) to the extent that any delivery requirement of the
Grantors hereunder in respect of Collateral not included in the Borrowing Base conflict, as determined by such Grantor in its reasonable
discretion, with delivery requirements under the Uncommitted Facility Security Agreement, the applicable Grantor may choose whether
to satisfy such delivery requirement by delivering such Collateral to the Agent or the Uncommitted Facility Agent and (ii) to the
extent that any delivery requirement hereunder in respect of Collateral included in the Borrowing Base (and Proceeds thereof) conflict,
as determined by such Grantor in its reasonable discretion, with delivery requirements under the Uncommitted Facility Security
Agreement, the applicable Grantor shall comply with the provisions hereunder.
7.12 Amendment
and Restatement. This Security Agreement shall constitute an amendment
and restatement of all of the terms and conditions of the Security Agreement dated April 28, 2011 among the Grantors and the Agent
(as amended, supplemented or otherwise modified prior to the date hereof, the “Existing Security Agreement”).
The parties hereto acknowledge and agree that (i) this Security Agreement, does not constitute a novation or termination of the
Grantors’ obligations under the Existing Security Agreement and related documents, (ii) such obligations are in all respects
continuing (as amended and restated hereby) with only the terms thereof being modified as provided in this Security Agreement,
and (iii) the liens and security interests as granted under the Existing Security Agreement are in all respects continuing and
in full force and effect and secure the payment of the Obligations.
[Remainder of Page Intentionally Left
Blank; Signature Page Follows]
Amended and Restated Security Agreement, Page 24 |
IN WITNESS WHEREOF,
each of the parties hereto has caused this Security Agreement to be duly executed and delivered by its Authorized Officer as of
the date first above written.
|
EMPIRE RESOURCES, INC. |
|
EMPIRE RESOURCES PACIFIC, LTD. |
|
|
|
|
By: |
/s/ Sandra Kahn, |
|
|
Sandra R. Kahn, Vice President of each Grantor |
|
|
|
|
COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”, NEW YORK BRANCH, as Agent |
|
|
|
|
By: |
/s/ Chan K. Park |
|
|
Name: Chan K. Park |
|
|
Title: Managing Director |
|
|
|
|
By: |
/s/ Xander Willemsen |
|
|
Name: Xander Willemsen |
|
|
Title: Executive Director |
Amended and Restated Security Agreement, Page 25 |
Schedules
to
Security Agreement
Schedule I
| |
| | |
| | |
Common Stock | |
Issuer (corporate) | |
Cert. # | | |
# of Shares | | |
Authorized Shares | | |
Outstanding Shares | | |
% of Shares Pledged | |
EMPIRE RESOURCES PACIFIC, LTD. | |
| 4 | | |
| 100 | | |
| 1,000 | | |
| 100 | | |
| 100 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Imbali Metals BVBA (limited to 65%) | |
| n/a | | |
| 650 | | |
| 1,000 | | |
| 1,000 | | |
| 65 | % |
Schedule II
Item A. Location of each Grantor.
Location for purposes of UCC:
1. |
EMPIRE RESOURCES, INC.: |
Delaware |
|
|
|
2. |
EMPIRE RESOURCES PACIFIC, LTD. : |
Delaware |
Item B. Filing locations last five years.
Filing Locations last five years:
1. |
EMPIRE RESOURCES, INC.: |
Delaware Secretary of State |
|
|
|
2. |
EMPIRE RESOURCES PACIFIC, LTD. : |
Delaware Secretary of State |
Item C. Trade names.
1. |
EMPIRE RESOURCES, INC.: |
PAM Metals, 4Metals.com |
|
|
|
2. |
EMPIRE RESOURCES PACIFIC, LTD. : |
None |
Schedules to Security Agreement, Page 1 |
Item D. Merger or other corporate
reorganization.
1. |
EMPIRE RESOURCES, INC.: |
None |
|
|
|
2. |
EMPIRE RESOURCES PACIFIC, LTD. : |
None |
Item E. Taxpayer ID numbers.
1. |
EMPIRE RESOURCES, INC.: |
22-3136782 |
|
|
|
2. |
EMPIRE RESOURCES PACIFIC, LTD. : |
22-3458576 |
Item F. Government Contracts.
1. |
EMPIRE RESOURCES, INC.: |
None |
|
|
|
2. |
EMPIRE RESOURCES PACIFIC, LTD. : |
None |
Item G. Deposit Accounts, Securities Accounts and/or Commodities
Accounts.
Description of Deposit Account:
1. |
EMPIRE RESOURCES, INC.: JPMorgan Chase Bank deposit account number 9102535458 |
2. |
EMPIRE RESOURCES PACIFIC, LTD. : |
None |
Description of Securities Account:
None
Description of Commodities Account:
| 1. | Natixis Commodity Markets Ltd. – EMPRESS |
| 2. | J. P. Morgan Chase Bank – 70432 |
| 3. | Marex Financial – 04216 |
Schedules to Security Agreement, Page 2 |
Item H. Letter of Credit Rights.
1. |
EMPIRE RESOURCES, INC.: |
None |
|
|
|
2. |
EMPIRE RESOURCES PACIFIC, LTD. : |
None |
Item I. Commercial Tort Claims.
1. |
EMPIRE RESOURCES, INC.: |
None |
|
|
|
2. |
EMPIRE RESOURCES PACIFIC, LTD. : |
None |
Item J. Third Parties in Possession
1. |
EMPIRE RESOURCES, INC.: |
As set forth in the table below: |
2. |
EMPIRE RESOURCES PACIFIC, LTD. : |
None |
Warehouse Name |
|
Street Address |
|
City |
|
ST |
|
ZIP |
Third Party Locations: |
|
|
|
|
|
|
|
|
ADS |
|
6012 South 195th Street |
|
Kent |
|
WA |
|
98032 |
Amerinox |
|
2201 MT Ephriam Ace |
|
Camden |
|
NJ |
|
08104 |
Bayou Processing and Storage |
|
13925 Industrial Road |
|
Houston |
|
TX |
|
77015 |
Dependable Warehousing and Dist |
|
2900 NW 75th Street |
|
Miami |
|
FL |
|
33147 |
EG Gray |
|
100 Jameson Drive |
|
Peterborough |
|
ON |
|
K9J6X6 |
Keep on Trucking |
|
3025 East Dominguez Street |
|
Carson |
|
CA |
|
90810 |
Main Steel |
|
5821 Randolph Street |
|
Commerce |
|
CA |
|
90040 |
Maryland Metals |
|
4425A Northpoint Blvd. |
|
Baltimore |
|
MD |
|
21224 |
Metal Processors |
|
200 South Falkenburg Road |
|
Tampa |
|
FL |
|
33619 |
Pacific Commodities |
|
901 King Street |
|
Oakland |
|
CA |
|
94606 |
Southern Worldwide |
|
9649 West Wingfoot |
|
Houston |
|
TX |
|
77041 |
TSA |
|
1625 B West Sam Houston Parkway |
|
Houston |
|
TX |
|
77043 |
Universal Trade Solutions |
|
4000 Beachwood Road |
|
Baltimore |
|
MD |
|
21221 |
Customer Locations: |
|
|
|
|
|
|
|
|
Bomarko |
|
1955 North Oak Road |
|
Plymouth |
|
IN |
|
46563 |
Eastern Metal Supply |
|
2925 Stewart Creek Blvd. |
|
Charlotte |
|
NC |
|
28216 |
Illinois Tool Works |
|
9505 Bamboo Road |
|
Houston |
|
TX |
|
77041 |
Clayton Metals |
|
16022 Carmenita Road |
|
Cerritos |
|
CA |
|
90703 |
Schedule III
Item A. Patents
Patent Title |
|
Owner |
|
Patent No. |
Data Network/ Telephone Adaptor Device |
|
Empire Resources, Inc. |
|
5,838,665 |
Schedules to Security Agreement, Page 3 |
Pending Patent Applications
NONE
Patent Applications In Preparation
NONE
Item B. Patent Licenses
NONE
Schedule IV
Item A. Trademarks
Mark |
|
Owner |
|
Serial or
Reg. No. |
|
|
Empire Resources, Inc. |
|
3,265,785 |
Item B. Trademark Licenses
NONE
Schedule V
Item A. Copyrights/Mask Works
NONE
Item B. Copyright/Mask Work Licenses
NONE
Schedule VI
Trade Secret or Know-How Licenses
NONE
Schedules to Security Agreement, Page 4 |
EXHIBIT A
to Security Agreement
PATENT SECURITY
AGREEMENT
This PATENT SECURITY
AGREEMENT, dated as of [_________], 20__ (this “Agreement”), is made by [NAME OF GRANTOR], a [_______________]
(the “Grantor”), in favor of COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”,
NEW YORK BRANCH (“Rabobank”), as agent (together with its successor(s) thereto in such capacity, the “Agent”)
for each of the Secured Parties.
WITNESSETH:
WHEREAS, pursuant to
an Amended and Restated Credit Agreement, dated as of June 19, 2014 (as amended, supplemented, amended and restated or otherwise
modified from time to time, the “Credit Agreement”), among Empire Resources, Inc., a Delaware corporation (the
“Company”), the Banks (as defined therein) from time to time party thereto and the Agent, the Banks have extended
Commitments to make Loans to and issue and participate in Letters of Credit for the account of the Company;
WHEREAS, in connection
with the Credit Agreement, the Grantor has executed and delivered an Amended and Restated Security Agreement, dated as of June
19, 2014 (as amended, supplemented, amended and restated or otherwise modified from time to time, the “Security Agreement”);
WHEREAS, pursuant to
the Credit Agreement and pursuant to clause (e) of Section 4.05 of the Security Agreement, the Grantor is required to execute and
deliver this Agreement and to grant to the Agent a continuing security interest in all of the Patent Collateral (as defined below)
to secure all Obligations;
WHEREAS, the Grantor
has duly authorized the execution, delivery and performance of this Agreement; and
NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor agrees, for the benefit
of each Secured Party, as follows:
SECTION
1. Definitions. Unless otherwise defined herein or the context otherwise requires, terms used in this Agreement,
including its preamble and recitals, have the meanings provided in the Security Agreement.
SECTION
2. Grant of Security Interest. The Grantor hereby assigns, pledges, hypothecates, charges, mortgages, delivers, and
transfers to the Agent, for its benefit and the ratable benefit of each other Secured Party, and hereby grants to the Agent, for
its benefit and the ratable benefit of each other Secured Party, a continuing security interest in all of the following property,
whether now or hereafter existing or acquired by the Grantor (the “Patent Collateral”):
(a) all
of its letters patent and applications for letters patent throughout the world, including all patent applications in preparation
for filing and each patent and patent application referred to in Item A of Schedule I attached hereto;
(b) all
reissues, divisions, continuations, continuations in part, extensions, renewals and reexaminations of any of the items described
in clause (a);
(c) all
of its patent licenses, and other agreements providing the Grantor with the right to use any items of the type referred to in clauses
(a) and (b) above, including each patent license referred to in Item B of Schedule I attached hereto; and
(d) all
Proceeds of, and rights associated with, the foregoing (including license royalties and Proceeds of infringement suits), the right
to sue third parties for past, present or future infringements of any patent or patent application, and for breach or enforcement
of any patent license.
SECTION
3. Security Agreement. This Agreement has been executed and delivered by the Grantor for the purpose of registering
the security interest of the Agent in the Patent Collateral with the United States Patent and Trademark Office and corresponding
offices in other countries of the world. The security interest granted hereby has been granted as a supplement to, and not in limitation
of, the security interest granted to the Agent for its benefit and the ratable benefit of each other Secured Party under the Security
Agreement. The Security Agreement (and all rights and remedies of the Agent and each Secured Party thereunder) shall remain in
full force and effect in accordance with its terms.
SECTION
4. Acknowledgment. The Grantor does hereby further acknowledge and affirm that the rights and remedies of the Agent
with respect to the security interest in the Patent Collateral granted hereby are more fully set forth in the Security Agreement,
the terms and provisions of which (including the remedies provided for therein) are incorporated by reference herein as if fully
set forth herein.
SECTION
5. Basic Document. This Agreement is a Basic Document executed pursuant to the Credit Agreement and shall (unless
otherwise expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions thereof,
including Article XI thereof.
SECTION
6. Counterparts. This Agreement may be executed by the parties hereto in several counterparts, each of which shall
be deemed to be an original and all of which shall constitute together but one and the same agreement.
IN WITNESS WHEREOF,
each of the parties hereto has caused this Agreement to be duly executed and delivered by its Authorized Officer as of the date
first above written.
|
[NAME OF GRANTOR] |
|
|
|
|
By: |
|
|
|
Name: |
|
|
Title: |
SCHEDULE I
to Patent Security Agreement
Item A. Patents
Issued Patents
Country |
Patent No. |
Issue Date |
Inventor(s) |
Title |
|
|
|
|
|
Pending Patent Applications
Country |
Patent No. |
Issue Date |
Inventor(s) |
Title |
|
|
|
|
|
Patent Applications in Preparation
Country |
Docket No. |
Expected
Filing Date |
Inventor(s) |
Title |
|
|
|
|
|
Item B. Patent Licenses
Country |
Licensor |
Licensee |
Effective
Date |
Expiration Date |
Subject
Matter |
|
|
|
|
|
|
EXHIBIT B
to Security Agreement
TRADEMARK SECURITY
AGREEMENT
This TRADEMARK SECURITY
AGREEMENT, dated as of [______________], 20__ (this “Agreement”), is made by [NAME OF GRANTOR], a [__________________]
(the “Grantor”), in favor of COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”,
NEW YORK BRANCH (“Rabobank”), as agent (together with its successor(s) thereto in such capacity, the “Agent”)
for each of the Secured Parties.
WITNESSETH:
WHEREAS, pursuant to
an Amended and Restated Credit Agreement, dated as of June 19, 2014 (as amended, supplemented, amended and restated or otherwise
modified from time to time, the “Credit Agreement”), among Empire Resources, Inc., a Delaware corporation (the
“Company”), the Banks (as defined therein) from time to time party thereto and the Agent, the Banks have extended
Commitments to make Loans to and issue and participate in Letters of Credit for the account of the Company;
WHEREAS, in connection
with the Credit Agreement, the Grantor has executed and delivered an Amended and Restated Security Agreement, dated as of June
19, 2014 (as amended, supplemented, amended and restated or otherwise modified from time to time, the “Security Agreement”);
WHEREAS, pursuant to
the Credit Agreement and pursuant to clause (e) of Section 4.05 of the Security Agreement, the Grantor is required to execute and
deliver this Agreement and to grant to the Agent a continuing security interest in all of the Trademark Collateral (as defined
below) to secure all Obligations;
WHEREAS, the Grantor
has duly authorized the execution, delivery and performance of this Agreement; and
NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor agrees, for the benefit
of each Secured Party, as follows:
SECTION
1. Definitions. Unless otherwise defined herein or the context otherwise requires, terms used in this Agreement,
including its preamble and recitals, have the meanings provided in the Security Agreement.
SECTION
2. Grant of Security Interest. The Grantor hereby assigns, pledges, hypothecates, charges, mortgages, delivers, and
transfers to the Agent, for its benefit and the ratable benefit of each other Secured Party, and hereby grants to the Agent, for
its benefit and the ratable benefit of each other Secured Party, a continuing security interest in all of the following property,
whether now or hereafter existing or acquired by the Grantor (the “Trademark Collateral”):
(a) (i) all
of its Trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service
marks, certification marks, collective marks, logos and other source or business identifiers, and all goodwill of the business
associated therewith, now existing or hereafter adopted or acquired including those referred to in Item A of Schedule I hereto,
whether currently in use or not, all registrations and recordings thereof and all applications in connection therewith, whether
pending or in preparation for filing, including registrations, recordings and applications in the United States Patent and Trademark
Office or in any office or agency of the United States of America or any State thereof or any other country or political subdivision
thereof or otherwise, and all common law rights relating to the foregoing, and (ii) the right to obtain all reissues, extensions
or renewals of the foregoing (collectively referred to as the “Trademark”);
(b) all Trademark
licenses for the grant by or to the Grantor of any right to use any Trademark, including each Trademark license referred to in
Item B of Schedule I hereto;
(c) all of
the goodwill of the business connected with the use of, and symbolized by the items described in, clause (a), and to the extent
applicable clause (b);
(d) the right
to sue third parties for past, present and future infringements of any Trademark Collateral described in clause (a) and, to the
extent applicable, clause (b); and
(e) all Proceeds
of, and rights associated with, the foregoing, including any claim by the Grantor against third parties for past, present or future
infringement or dilution of any Trademark, Trademark registration or Trademark license, or for any injury to the goodwill associated
with the use of any such Trademark or for breach or enforcement of any Trademark license and all rights corresponding thereto throughout
the world.
SECTION
3. Security Agreement. This Agreement has been executed and delivered by the Grantor for the purpose of registering
the security interest of the Agent in the Trademark Collateral with the United States Patent and Trademark Office and corresponding
offices in other countries of the world. The security interest granted hereby has been granted as a supplement to, and not in limitation
of, the security interest granted to the Agent for its benefit and the ratable benefit of each other Secured Party under the Security
Agreement. The Security Agreement (and all rights and remedies of the Agent and each Secured Party thereunder) shall remain in
full force and effect in accordance with its terms.
SECTION
4. Acknowledgment. The Grantor does hereby further acknowledge and affirm that the rights and remedies of the Agent
with respect to the security interest in the Trademark Collateral granted hereby are more fully set forth in the Security Agreement,
the terms and provisions of which (including the remedies provided for therein) are incorporated by reference herein as if fully
set forth herein.
SECTION
5. Basic Document. This Agreement is a Basic Document executed pursuant to the Credit Agreement and shall (unless
otherwise expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions thereof,
including Article XI thereof.
SECTION
6. Counterparts. This Agreement may be executed by the parties hereto in several counterparts, each of which shall
be deemed to be an original and all of which shall constitute together but one and the same agreement.
IN WITNESS WHEREOF,
each of the parties hereto has caused this Agreement to be duly executed and delivered by Authorized Officer as of the date first
above written.
|
[NAME OF GRANTOR] |
|
|
|
|
By: |
|
|
|
Name: |
|
|
Title: |
SCHEDULE I
to Trademark Security Agreement
Item A. Trademarks
Registered Trademarks
Country |
Trademark |
Registration No. |
Registration Date |
|
|
|
|
Pending Trademark Applications
Country |
Trademark |
Serial No. |
Filing Date |
|
|
|
|
Trademark Applications in Preparation
Country |
Trademark |
Docket No. |
Expected
Filing Date |
Products/
Services |
|
|
|
|
|
Item B. Trademark Licenses
Country or
Territory |
Trademark |
Licensor |
Licensee |
Effective Date |
Expiration
Date |
|
|
|
|
|
|
EXHIBIT C
to Security Agreement
COPYRIGHT SECURITY
AGREEMENT
This COPYRIGHT SECURITY
AGREEMENT, dated as of [______________], 20__ (this “Agreement”), is made by [NAME OF GRANTOR], a [__________________]
(the “Grantor”), in favor COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”,
NEW YORK BRANCH (“Rabobank”), as agent (together with its successor(s) thereto in such capacity, the “Agent”)
for each of the Secured Parties.
WITNESSETH:
WHEREAS, pursuant to
an Amended and Restated Credit Agreement, dated as of June 19, 2014 (as amended, supplemented, amended and restated or otherwise
modified from time to time, the “Credit Agreement”), among Empire Resources, Inc., a Delaware corporation (the
“Company”), the Banks (as defined therein) from time to time party thereto and the Agent, the Banks have extended
Commitments to make Loans to and issue and participate in Letters of Credit for the account of the Company;
WHEREAS, in connection
with the Credit Agreement, the Grantor has executed and delivered an Amended and Restated Security Agreement, dated as of June
19, 2014 (as amended, supplemented, amended and restated or otherwise modified from time to time, the “Security Agreement”);
WHEREAS, pursuant to
the Credit Agreement and pursuant to clause (e) of Section 4.05 of the Security Agreement, the Grantor is required to execute and
deliver this Agreement and to grant to the Agent a continuing security interest in all of the Copyright Collateral (as defined
below) to secure all Obligations; and
WHEREAS, the Grantor
has duly authorized the execution, delivery and performance of this Agreement; and
NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor agrees, for the benefit
of each Secured Party, as follows:
SECTION
1. Definitions. Unless otherwise defined herein or the context otherwise requires, terms used in this Agreement,
including its preamble and recitals, have the meanings provided in the Security Agreement.
SECTION
2. Grant of Security Interest. The Grantor hereby assigns, pledges, hypothecates, charges, mortgages, delivers, and
transfers to the Agent, for its benefit and the ratable benefit of each other Secured Party, and hereby grants to the Agent, for
its benefit and the ratable benefit of each other Secured Party, a continuing security interest in all of the following (the “Copyright
Collateral”), whether now or hereafter existing or acquired by the Grantor: all copyrights of the Grantor, whether statutory
or common law, registered or unregistered and whether published or unpublished, now or hereafter in force throughout the world
including all of the Grantor’s right, title and interest in and to all copyrights registered in the United States Copyright
Office or anywhere else in the world and also including the copyrights referred to in Item A of Schedule I hereto, and registrations
and recordings thereof and all applications for registration thereof, whether pending or in preparation, all copyright licenses,
including each copyright license referred to in Item B of Schedule I hereto, the right to sue for past, present and future infringements
of any of the foregoing, all rights corresponding thereto, all extensions and renewals of any thereof and all Proceeds of the foregoing,
including licenses, royalties, income, payments, claims, damages and Proceeds of suit.
SECTION
3. Security Agreement. This Agreement has been executed and delivered by the Grantor for the purpose of registering
the security interest of the Agent in the Copyright Collateral with the United States Copyright Office and corresponding offices
in other countries of the world. The security interest granted hereby has been granted as a supplement to, and not in limitation
of, the security interest granted to the Agent for its benefit and the ratable benefit of each other Secured Party under the Security
Agreement. The Security Agreement (and all rights and remedies of the Agent and each Secured Party thereunder) shall remain in
full force and effect in accordance with its terms.
SECTION
4. Acknowledgment. The Grantor does hereby further acknowledge and affirm that the rights and remedies of the Agent
with respect to the security interest in the Copyright Collateral granted hereby are more fully set forth in the Security Agreement,
the terms and provisions of which (including the remedies provided for therein) are incorporated by reference herein as if fully
set forth herein.
SECTION
5. Basic Document. This Agreement is a Basic Document executed pursuant to the Credit Agreement and shall (unless
otherwise expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions thereof,
including Article XI thereof.
SECTION
6. Counterparts. This Agreement may be executed by the parties hereto in several counterparts, each of which shall
be deemed to be an original and all of which shall constitute together but one and the same agreement.
IN WITNESS WHEREOF,
each of the parties hereto has caused this Agreement to be duly executed and delivered by its Authorized Officer as of the date
first above written.
|
[NAME OF GRANTOR] |
|
|
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SCHEDULE I
to Copyright Security Agreement
Item A. Copyrights/Mask Works
Registered Copyright/Mask Works
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Registration No. |
Registration Date |
Authors |
Title |
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Copyright/Mask Work Pending Registration
Applications
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Serial No. |
Filing Date |
Authors |
Title |
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Copyright/Mask Work Registration Applications
in Preparation
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Docket No. |
Expected
Filing Date |
Authors |
Title |
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Item B. Copyright/Mask Work Licenses
Country or
Territory |
Licensor |
Licensee |
Effective Date |
Expiration Date |
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ANNEX I
to Security Agreement
SUPPLEMENT TO
SECURITY
AGREEMENT
This SUPPLEMENT, dated
as of ____________ ___, _____ (this “Supplement”), is to the Amended and Restated Security Agreement, dated
as of June 19, 2014 (as amended, supplemented, amended and restated or otherwise modified from time to time, the “Security
Agreement”), among the Grantors (such term, and other terms used in this Supplement, to have the meanings set forth in
Section I of the Security Agreement) from time to time party thereto, in favor of COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK
B.A., “RABOBANK NEDERLAND”, NEW YORK BRANCH (“Rabobank”), as agent (together with its successor(s)
thereto in such capacity, the “Agent”) for each of the Secured Parties.
WITNESSETH:
WHEREAS, pursuant to
an Amended and Restated Credit Agreement, dated as of June 19, 2014 (as amended, supplemented, amended and restated or otherwise
modified from time to time, the “Credit Agreement”), among Empire Resources, Inc., a Delaware corporation (the
“Company”), the Banks (as defined therein) from time to time party thereto and the Agent, the Banks have extended
Commitments to make Loans to and issue and participate in Letters of Credit for the account of the Company;
WHEREAS, pursuant to
the provisions of Section 7.05 of the Security Agreement, each of the undersigned is becoming a Grantor under the Security Agreement;
and
WHEREAS, each of the
undersigned desires to become a “Grantor” under the Security Agreement in order to induce the Secured Parties to continue
to make extensions of credit secured pursuant to the Security Agreement under the Credit Agreement;
NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each of the undersigned agrees, for
the benefit of each Secured Party, as follows.
SECTION
1. Party to Security Agreement, etc. In accordance with the terms of the Security Agreement, by its signature below
each of the undersigned hereby irrevocably agrees to become a Grantor under the Security Agreement with the same force and effect
as if it were an original signatory thereto and each of the undersigned hereby (a) agrees to be bound by and comply with all of
the terms and provisions of the Security Agreement applicable to it as a Grantor and (b) represents and warrants that the representations
and warranties made by it as a Grantor thereunder are true and correct as of the date hereof, unless stated to relate solely to
an earlier date, in which case such representations and warranties shall be true and correct as of such earlier date. In furtherance
of the foregoing, each of the undersigned hereby grants to the Agent, for its benefit and the ratable benefit of each other Secured
Party, a continuing security interest in all of such undersigned’s Collateral, whether now or hereafter existing, owned or
acquired, and wherever located and agrees that each reference to a “Grantor” and/or “Grantors” in the Security
Agreement shall be deemed to include each of the undersigned.
SECTION
2. Representations. Each of the undersigned Grantor hereby represents and warrants that this Supplement has been
duly authorized, executed and delivered by it and that this Supplement and the Security Agreement constitute the legal, valid and
binding obligation of each of the undersigned, enforceable against it in accordance with its terms.
SECTION
3. Full Force of Security Agreement. Except as expressly supplemented hereby, the Security Agreement shall remain
in full force and effect in accordance with its terms.
SECTION
4. Severability. Wherever possible each provision of this Supplement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Supplement shall be prohibited by or invalid under such
law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Supplement or the Security Agreement.
SECTION
5. Governing Law, Entire Agreement, etc. THIS SUPPLEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED
BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS
LAW OF THE STATE OF NEW YORK). This Supplement and the other Basic Documents constitute the entire understanding among the parties
hereto with respect to the subject matter thereof and supersede any prior agreements, written or oral, with respect thereto.
SECTION
6. Counterparts. This Supplement may be executed by the parties hereto in several counterparts, each of which shall
be deemed to be an original and all of which shall constitute together but one and the same agreement.
IN WITNESS WHEREOF,
each of the parties hereto has caused this Agreement to be duly executed and delivered by its Authorized Officer as of the date
first above written.
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ACCEPTED AND AGREED FOR ITSELF AND ON BEHALF OF THE SECURED
PARTIES:
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COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”, NEW YORK BRANCH, as Agent |
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EXHIBIT 10.4
SECURITY AGREEMENT
This SECURITY AGREEMENT,
dated as of June 19, 2014 (as amended, supplemented, amended and restated or otherwise modified from time to time, this “Security
Agreement”), is made by EMPIRE RESOURCES, INC., a Delaware corporation (the “Company”), and each Guarantor
(terms used in the preamble and in the recitals have the definitions set forth in or incorporated by reference in Section 1)
from time to time a party to this Security Agreement (each individually, a “Grantor” and collectively, the “Grantors”),
in favor of COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”, NEW YORK BRANCH (“Rabobank”),
as agent (together with its successor(s) thereto in such capacity, the “Agent”) for each of the Secured Parties.
WITNESSETH:
WHEREAS, pursuant to
an Uncommitted Credit Agreement, dated as of June 19, 2014 (as amended, supplemented, amended and restated or otherwise modified
from time to time, the “Credit Agreement”), among the Company, the Banks from time to time party thereto and
the Agent, the Banks have agreed to consider requests to make Loans to and issue and participate in Letters of Credit for the account
of the Company; and
WHEREAS, as a condition
precedent to the making of the extensions of credit secured hereby, each Grantor is required to execute and deliver this Security
Agreement.
NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Grantor agrees, for the benefit
of each Secured Party, as follows:
Section
1
DEFINITIONS
1.01 Certain
Terms. The following terms (whether or not underscored) when used in this Security Agreement, including its preamble and recitals,
shall have the following meanings (such definitions to be equally applicable to the singular and plural forms thereof):
“Agent”
is defined in the preamble.
“Collateral”
is defined in Section 2.1.
“Committed
Facility Agent” means Rabobank as Agent under the Committed Credit Agreement dated as of the date hereof among the Company,
the lenders party thereto and the Committed Facility Agent.
“Committed
Facility Security Agreement” means the Amended and Restated Security Agreement dated as of the date hereof among the
Grantors and the Committed Facility Agent (as amended, supplemented or otherwise modified from time to time).
“Company”
is defined in the preamble.
“Computer
Hardware and Software Collateral” means:
Security Agreement, Page 1 |
(a) all
computer and other electronic data processing hardware, integrated computer systems, central processing units, memory units, display
terminals, printers, features, computer elements, card readers, tape drives, hard and soft disk drives, cables, electrical supply
hardware, generators, power equalizers, accessories and all peripheral devices and other related computer hardware, including all
operating system software, utilities and application programs in whatsoever form;
(b) all
software programs (including both source code, object code and all related applications and data files), designed for use on the
computers and electronic data processing hardware described in clause (a) above;
(c) all
firmware associated therewith;
(d) all
documentation (including flow charts, logic diagrams, manuals, guides, specifications, training materials, charts and pseudo codes)
with respect to such hardware, software and firmware described in the preceding clauses (a) through (c); and
(e) all
rights with respect to all of the foregoing, including copyrights, licenses, options, warranties, service contracts, program services,
test rights, maintenance rights, support rights, improvement rights, renewal rights and indemnifications and any substitutions,
replacements, improvements, error corrections, updates, additions or model conversions of any of the foregoing.
“Copyright
Collateral” means all copyrights of the Grantors, registered or unregistered and whether published or unpublished, now
or hereafter in force throughout the world including all of the Grantors’ rights, titles and interests in and to all copyrights
registered in the United States Copyright Office or anywhere else in the world and also including the copyrights referred to in
Item A of Schedule V, and registrations and recordings thereof and all applications for registration thereof, whether
pending or in preparation, all copyright licenses, including each copyright license referred to in Item B of Schedule
V, the right to sue for past, present and future infringements of any of the foregoing, all rights corresponding thereto, all
extensions and renewals of any thereof and all Proceeds of the foregoing, including licenses, royalties, income, payments, claims,
damages and Proceeds of suit, which are owned or licensed by the Grantors.
“Credit Agreement”
is defined in the first recital.
“Distributions”
means all dividends paid on Capital Securities, liquidating dividends paid on Capital Securities, shares (or other designations)
of Capital Securities resulting from (or in connection with the exercise of) stock splits, reclassifications, warrants, options,
non-cash dividends, mergers, consolidations, and all other distributions (whether similar or dissimilar to the foregoing) on or
with respect to any Capital Securities constituting Collateral.
“Filing Statement”
is defined in Section 3.7.
“General Intangibles”
means all “general intangibles” and all “payment intangibles”, each as defined in the UCC, and shall include
all interest rate or currency protection or hedging arrangements, all tax refunds, all licenses, permits, concessions and authorizations
and all Intellectual Property Collateral (in each case, regardless of whether characterized as general intangibles under the UCC).
“Grantor”
and “Grantors” are defined in the preamble.
Security Agreement, Page 2 |
“Intellectual
Property Collateral” means, collectively, the Computer Hardware and Software Collateral, the Copyright Collateral, the
Patent Collateral, the Trademark Collateral and the Trade Secrets Collateral.
“Obligations”
means, with respect to each Grantor: (a) if such Grantor is the Company under the Credit Agreement, all “Obligations”
(as such term is defined in the Credit Agreement); (b) with respect to each Grantor that is not the Company, all present and future
indebtedness, liabilities, and obligations of such Grantor to the Agent and the other Secured Parties arising under the Basic Documents
to which such Grantor is a party and all such Grantor’s Deposit Obligations and Hedging Obligations; and (c) with respect
to each Grantor, and without limiting the generality of the foregoing, all reasonable fees, costs and expenses (including reasonable
attorneys’ fees): (i) of retaking, holding and preparing its Collateral for sale; (ii) arising in connection with the sale
thereof and (iii) arising from the enforcement of any other right or remedy provided hereunder and/or under any other Basic Document;
provided that with respect to each Subsidiary that is a Grantor, the obligations secured by this Security Agreement shall
be limited, with respect to such Grantor, to an aggregate amount equal to the largest amount that would not render such Grantor’s
obligations hereunder and under the other Basic Documents subject to avoidance under Section 544 or 548 of the United States Bankruptcy
Code or under any applicable state law relating to fraudulent transfers or conveyances.
“Patent Collateral”
means:
(a) inventions
and discoveries, whether patentable or not, all letters patent and applications for letters patent throughout the world, including
all patent applications in preparation for filing and each patent and patent application referred to in Item A of Schedule
III;
(b) all
reissues, divisions, continuations, continuations-in-part, extensions, renewals and reexaminations of any of the items described
in clause (a);
(c) all
patent licenses, and other agreements providing such Grantor with the right to use any items of the type referred to in clauses
(a) and (b) above, including each patent license referred to in Item B of Schedule III; and
(d) all
Proceeds of, and rights associated with, the foregoing (including licenses, royalties income, payments, claims, damages and Proceeds
of infringement suits), the right to sue third parties for past, present or future infringements of any patent or patent application,
and for breach or enforcement of any patent license.
“Permitted
Lien” means a Lien permitted under Section 8.06 of the Credit Agreement.
“Security
Agreement” is defined in the preamble.
“Securities
Act” is defined in clause (a) of Section 6.02.
“Specified
Default” means the occurrence and continuance of an Event of Default under clauses (a), (b), (d), (f), (g), (k) or (l)
of Section 9.01 of the Credit Agreement.
“Trademark
Collateral” means:
Security Agreement, Page 3 |
(a) (i) all
trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service marks,
certification marks, collective marks, logos and other source or business identifiers, and all goodwill of the business associated
therewith, now existing or hereafter adopted or acquired including those referred to in Item A of Schedule IV, whether
currently in use or not, all registrations and recordings thereof and all applications in connection therewith, whether pending
or in preparation for filing, including registrations, recordings and applications in the United States Patent and Trademark Office
or in any office or agency of the United States of America or any State thereof or any other country or political subdivision thereof
or otherwise, and all common-law rights relating to the foregoing, and (ii) the right to obtain all reissues, extensions or renewals
of the foregoing (collectively referred to as the “Trademark”);
(b) all
trademark licenses for the grant by or to such Grantor of any right to use any trademark, including each trademark license referred
to in Item B of Schedule IV; and
(c) all
of the goodwill of the business connected with the use of, and symbolized by the items described in, clause (a), and to the extent
applicable clause (b);
(d) the
right to sue third parties for past, present and future infringements of any Trademark Collateral described in clause (a) and,
to the extent applicable, clause (b); and
(e) all
Proceeds of, and rights associated with, the foregoing, including any claim by such Grantor against third parties for past, present
or future infringement or dilution of any Trademark, Trademark registration or Trademark license, or for any injury to the goodwill
associated with the use of any such Trademark or for breach or enforcement of any Trademark license and all rights corresponding
thereto throughout the world.
“Trade Secrets
Collateral” means all common law and statutory trade secrets and all other confidential, proprietary or useful information
and all know-how obtained by or used in or contemplated at any time for use in the business of a Grantor (all of the foregoing
being collectively called a “Trade Secret”), whether or not such Trade Secret has been reduced to a writing
or other tangible form, including all Documents and things embodying, incorporating or referring in any way to such Trade Secret,
all Trade Secret licenses, including each Trade Secret license referred to in Schedule VI, and including the right to sue
for and to enjoin and to collect damages for the actual or threatened misappropriation of any Trade Secret and for the breach or
enforcement of any such Trade Secret license.
1.02 Credit
Agreement Definitions. Unless otherwise defined herein or the context otherwise requires, terms used in this Security Agreement,
including its preamble and recitals, have the meanings provided in the Credit Agreement.
1.03 UCC
Definitions. When used herein the terms Accessions, Account, Certificated Securities, Chattel Paper, Commercial Tort Claim,
Commodity Account, Commodity Contract, Deposit Account, Document, Electronic Chattel Paper, Equipment, Goods, Instrument, Inventory,
Investment Property, Letter-of-Credit Rights, Payment Intangible, Proceeds, Promissory Notes, Securities Account, Security Entitlement,
Supporting Obligations and Uncertificated Securities have the meaning provided in Article 8 or Article 9, as applicable, of the
Uniform Commercial Code as from time to time in effect in the State of New York (the “UCC”). Letter of Credit
has the meaning provided in Section 5-102 of the UCC.
Security Agreement, Page 4 |
Section
2
SECURITY INTEREST
2.01 Grant
of Security Interest. Each Grantor hereby grants to the Agent, for its benefit and the ratable benefit of each other Secured
Party, a continuing security interest in all of such Grantor’s following property, whether now or hereafter existing, owned
or acquired by such Grantor, and wherever located, (collectively, the “Collateral”):
(a) Accounts;
(b) Chattel
Paper;
(c) Commercial
Tort Claims listed on Item I of Schedule II (as such schedule may be amended or supplemented from time to time);
(d) Deposit
Accounts (including, without limitation, each Collateral Account);
(e) Documents;
(f)
General Intangibles;
(g) Goods;
(h) Inventory;
(i)
Equipment;
(j)
Instruments;
(k) Investment
Property;
(l) Letter-of-Credit
Rights and Letters of Credit;
(m) Supporting
Obligations;
(n) all
books, records, writings, databases, information and other property relating to, used or useful in connection with, evidencing,
embodying, incorporating or referring to, any of the foregoing in this Section;
(o) all
Accessions to and Proceeds of the foregoing and, to the extent not otherwise included, (i) all payments under insurance (whether
or not the Agent is the loss payee thereof) and (ii) all tort claims; and
(p) all
other property and rights of every kind and description and interests therein.
Notwithstanding the
foregoing, “Collateral” shall not include:
(i) such
Grantor’s real property interests (including fee real estate, leasehold interests and fixtures);
Security Agreement, Page 5 |
(ii) any
General Intangibles or other rights arising under any contracts (other than Accounts or the proceeds thereof), instruments, licenses
or other documents as to which the grant of a security interest would (A) constitute a violation of a valid and enforceable
restriction in favor of a third party on such grant, unless and until any required consents shall have been obtained (other than
to the extent that any such restriction would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of
the UCC (or any successor provision or provisions) of any relevant jurisdiction or any other applicable law or principles of equity)
or (B) give any other party to such contract, instrument, license or other document the right to terminate its obligations
thereunder (other than to the extent that any such right would be rendered ineffective pursuant to Sections 9-406, 9-407,
9-408 or 9-409 of the UCC (or any successor provision or provisions) of any relevant jurisdiction or any other applicable law or
principles of equity); provided that such security interest shall attach immediately at such time as the condition causing such
violation or termination shall be remedied and, to the extent severable, shall attach immediately to any portion of such Property
that does not result in any of the consequences specified in clause (A) or (B) of this paragraph, including any Proceeds of
such property;
(iii) Investment
Property consisting of Capital Securities of a foreign Subsidiary of such Grantor in excess of 65% of the total combined voting
power of all Capital Securities of such foreign Subsidiary, provided that, if, such Grantor determines, in its sole discretion,
that as a result of any change in, or the introduction, adoption, effectiveness or interpretation of, tax laws, rules, regulations,
directives or guidelines of the United States of America after the date of this Security Agreement, the grant of security interests
and Liens by such Grantor in respect of any additional Capital Securities of a foreign Subsidiary of such Grantor to the Agent,
for its benefit and the ratable benefit of each other Secured Party, under this Security Agreement would not reasonably be expected
to result in an increase in the tax liabilities of such Grantor over what such liabilities would have been without such security
interests and Liens, then, promptly after the change in, or the introduction, adoption, effectiveness or interpretation of, any
such laws, rules, regulations, directives or guidelines, all such additional Capital Securities shall automatically, without further
action, be deemed to be and shall be subject to the security interests and Liens granted under this Security Agreement;
(iv) any
asset, the granting of a security interest in which would be void or illegal under any Law, or pursuant thereto would result in,
or permit the termination of, such asset (other than to the extent that any such law, rule or regulation would be rendered ineffective
pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions) of any relevant jurisdiction
or any other applicable law or principles of equity); provided that such security interest shall attach immediately at such time
as the condition causing such illegality or unenforceability shall be remedied and, to the extent severable, shall attach immediately
to any portion of such Property that does not result in any of such consequences, including any Proceeds of such property; and
(v) such
Grantor's interests in 6900 Quad Avenue, LLC, a Delaware limited liability company.
2.02 Security
for Obligations. This Security Agreement and the Collateral in which the Agent for the benefit of the Secured Parties is granted
a security interest hereunder by the Grantors secure the payment and performance of all of the Obligations (other than Excluded
Swap Obligations).
2.03 Grantors
Remains Liable. Anything herein to the contrary notwithstanding:
(a) the
Grantors will remain liable under the contracts and agreements included in the Collateral to the extent set forth therein, and
will perform all of their duties and obligations under such contracts and agreements to the same extent as if this Security Agreement
had not been executed;
Security Agreement, Page 6 |
(b) the
exercise by the Agent of any of its rights hereunder will not release any Grantor from any of its duties or obligations under any
such contracts or agreements included in the Collateral; and
(c) no
Secured Party will have any obligation or liability under any contracts or agreements included in the Collateral by reason of this
Security Agreement, nor will any Secured Party be obligated to perform any of the obligations or duties of any Grantor thereunder
or to take any action to collect or enforce any claim for payment assigned hereunder.
2.04 Distributions
on Pledged Shares. If any Distribution with respect to any Capital Securities pledged hereunder is paid (unless prohibited
by Section 8.13 of the Credit Agreement), such Distribution or payment may be paid directly to the applicable Grantor. If any Distribution
is made in contravention of Section 8.13 of the Credit Agreement, such Grantor shall hold the same segregated and in trust for
the Agent until paid to the Agent in accordance with Section 4.01(c).
2.05 Security
Interest Absolute, etc. This Security Agreement shall in all respects be a continuing, absolute, unconditional and irrevocable
grant of security interest, and shall remain in full force and effect until the later of (x) the Revolving Credit Commitment Termination
Date and (y) the payment in full in cash of the Obligations, the expiration or termination of all Letters of Credit issued under
the Credit Agreement (other than Letters of Credit that have been Cash Collateralized pursuant to Section 2.11(b)(ii) of the Credit
Agreement) and the irrevocable termination of all Revolving Loan Line Portions thereunder. All rights of the Secured Parties and
the security interests granted to the Agent (for its benefit and the ratable benefit of each Secured Party) hereunder, and all
obligations of the Grantors hereunder, shall, in each case, be absolute, unconditional and irrevocable irrespective of:
(a) any
lack of validity, legality or enforceability of any Basic Document;
(b) the
failure of any Secured Party (i) to assert any claim or demand or to enforce any right or remedy against any Obligor or any other
Person (including any other Grantor) under the provisions of any Basic Document or otherwise, or (ii) to exercise any right or
remedy against any other guarantor (including any other Grantor) of, or collateral securing, any Obligations;
(c) any
change in the time, manner or place of payment of, or in any other term of, all or any part of the Obligations, or any other extension,
compromise or renewal of any Obligations;
(d) any
reduction, limitation, impairment or termination of any Obligations for any reason, including any claim of waiver, release, surrender,
alteration or compromise, and shall not be subject to (and each Grantor hereby waives any right to or claim of) any defense or
setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality, nongenuineness, irregularity,
compromise, unenforceability of, or any other event or occurrence affecting, any Obligations or otherwise;
(e) any
amendment to, rescission, waiver, or other modification of, or any consent to or departure from, any of the terms of any Basic
Document;
(f) any
addition, exchange or release of any Collateral or of any Person that is (or will become) a Grantor (including the Grantors hereunder)
of the Obligations, or any surrender or non-perfection of any collateral, or any amendment to or waiver or release or addition
to, or consent to or departure from, any other guaranty held by any Secured Party securing any of the Obligations; or
Security Agreement, Page 7 |
(g) any
other circumstance which might otherwise constitute a defense available to, or a legal or equitable discharge of, any Obligor,
any surety or any guarantor.
2.06 Postponement
of Subrogation. Each Grantor agrees that it will not exercise any rights against another Grantor which it may acquire by way
of rights of subrogation under any Basic Document to which it is a party. No Grantor shall seek or be entitled to seek any contribution
or reimbursement from any Obligor, in respect of any payment made under any Basic Document or otherwise, until following the later
of (x) the Revolving Credit Commitment Termination Date and (y) the payment in full in cash of the Obligations, the expiration
or termination of all Letters of Credit issued under the Credit Agreement (other than Letters of Credit that have been Cash Collateralized
pursuant to Section 2.11(b)(ii) of the Credit Agreement) and the irrevocable termination of all Revolving Loan Line Portions thereunder
shall have occurred. Any amount paid to such Grantor on account of any such subrogation rights prior to the later of (x) the Revolving
Credit Commitment Termination Date and (y) the payment in full in cash of the Obligations, the expiration or termination of all
Letters of Credit issued under the Credit Agreement (other than Letters of Credit that have been Cash Collateralized pursuant to
Section 2.11(b)(ii) of the Credit Agreement) and the irrevocable termination of all Revolving Loan Line Portions thereunder, shall
be held in trust for the benefit of the Secured Parties and shall immediately be paid and turned over to the Agent for the benefit
of the Secured Parties in the exact form received by such Grantor (duly endorsed in favor of the Agent, if required), to be credited
and applied against the Obligations, whether matured or unmatured, in accordance with Section 6.01; provided that
if such Grantor has made payment to the Secured Parties of all or any part of the Obligations and the later of (x) the Revolving
Credit Commitment Termination Date and (y) the payment in full in cash of the Obligations, the expiration or termination of all
Letters of Credit issued under the Credit Agreement (other than Letters of Credit that have been Cash Collateralized pursuant to
Section 2.11(b)(ii) of the Credit Agreement) and the irrevocable termination of all Revolving Loan Line Portions thereunder has
occurred, then at such Grantor’s request, the Agent (on behalf of the Secured Parties) will, at the expense of such Grantor,
execute and deliver to such Grantor appropriate documents (without recourse and without representation or warranty) necessary to
evidence the transfer by subrogation to such Grantor of an interest in the Obligations resulting from such payment. In furtherance
of the foregoing, at all times prior to the later of (x) the Revolving Credit Commitment Termination Date and (y) the payment in
full in cash of the Obligations, the expiration or termination of all Letters of Credit issued under the Credit Agreement (other
than Letters of Credit that have been Cash Collateralized pursuant to Section 2.11(b)(ii) of the Credit Agreement) and the irrevocable
termination of all Revolving Loan Line Portions thereunder, such Grantor shall refrain from taking any action or commencing any
proceeding against any Obligor (or its successors or assigns, whether in connection with a bankruptcy proceeding or otherwise)
to recover any amounts in respect of payments made under this Security Agreement to any Secured Party.
Section
3
REPRESENTATIONS AND WARRANTIES
In order to induce
the Secured Parties to enter into the Credit Agreement and to consider requests to make credit extensions thereunder, and to induce
the Secured Parties to consider requests to make other financial accommodations secured by this Security Agreement, the Grantors
represent and warrant to each Secured Party as set forth below.
Security Agreement, Page 8 |
3.01 As
to Capital Securities of the Subsidiaries, Investment Property.
(a) With
respect to any direct Subsidiary of any Grantor that is:
(i) a
corporation, business trust, joint stock company or similar Person, all Capital Securities issued by such Subsidiary are duly authorized
and validly issued, fully paid and non-assessable, and represented by a certificate; and
(ii) a
partnership or limited liability company, no Capital Securities issued by such Subsidiary (A) are dealt in or traded on securities
exchanges or in securities markets, (B) expressly provide that such Capital Securities are a security governed by Article 8
of the UCC or (C) are held in a Securities Account, except, with respect to this clause (a)(ii), Capital Securities
(x) for which the Agent is the registered owner or (y) with respect to which the issuer has agreed in an authenticated record with
such Grantor and the Agent to comply with any instructions of the Agent without the consent of such Grantor.
(b) The
percentage of the issued and outstanding Capital Securities of each Subsidiary pledged by each Grantor hereunder is as set forth
on Schedule I.
3.02 Grantors’
Names, Locations, etc.
(a) The
jurisdiction in which each Grantor is located for purposes of Sections 9-301 and 9-307 of the UCC is set forth in Item A
of Schedule II.
(b) Each
location a secured party would have filed a UCC financing statement since June 19, 2009 to perfect a security interest in
Equipment, Inventory and General Intangibles owned by each Grantor is set forth in Item B of Schedule II.
(c) As
of the Closing Date, the Grantors do not have any trade names other than those set forth in Item C of Schedule II
hereto.
(d) As
of the Closing Date, during the four months preceding the date hereof, no Grantors have been known by any legal name different
from the one set forth on the signature page hereto, nor has such Grantor been the subject of any merger or other corporate reorganization,
except as set forth in Item D of Schedule II hereto.
(e) Each
Grantor’s federal taxpayer identification number is (and, during the four months preceding the date hereof, such Grantor
has not had a federal taxpayer identification number different from that) set forth in Item E of Schedule II hereto.
(f) As
of the Closing Date, no Grantor is a party to any federal, state or local government contract except as set forth in Item F
of Schedule II hereto.
(g) As
of the Closing Date, no Grantor maintains any Deposit Accounts, Securities Accounts or Commodity Accounts with any Person, in each
case, except as set forth on Item G of Schedule II.
(h) As
of the Closing Date, no Grantor is the beneficiary of any Letters of Credit, except as set forth on Item H of Schedule
II.
(i) As
of the Closing Date, no Grantor has Commercial Tort Claims, except as set forth on Item I of Schedule II.
(j) The
name set forth on the signature page attached hereto is the true and correct legal name (as defined in the UCC) of each Grantor.
Security Agreement, Page 9 |
(k) As
of the Closing Date, no third party has possession of any Inventory or Equipment except for Inventory in transit and Inventory
held by the Persons designated on Item J of Schedule II.
3.03 Ownership,
No Liens, etc. Each Grantor owns its Collateral free and clear of any Lien, except for any security interest (a) created by
this Security Agreement and (b) that is a Permitted Lien. No effective UCC financing statement or other filing similar in effect
covering all or any part of the Collateral is on file in any recording office, except those filed in favor of the Agent relating
to this Security Agreement, Permitted Liens or as to which a duly authorized termination statement relating to such UCC financing
statement or other instrument has been delivered to the Agent on or after the Closing Date.
3.04 Possession
of Inventory, Control; etc.
(a) Each
Grantor has, and agrees that it will maintain, exclusive possession of its Documents, Instruments, Promissory Notes, Goods, Equipment
and Inventory, other than (i) Equipment and Inventory in transit in the ordinary course of business, (ii) Equipment and Inventory
that is in the possession or control of a warehouseman, bailee, agent or other Person in the Grantor’s ordinary course of
business and (iii) Documents, Instruments or Promissory Notes that have been delivered to the Agent pursuant to Section 3.05.
In the case of Equipment or Inventory described in clause (ii) above, no lessor or warehouseman of any premises or warehouse upon
or in which such Equipment or Inventory is located has: (i) issued any warehouse receipt, other receipt in the nature of a warehouse
receipt or other Document in respect of any such Equipment or Inventory except (x) non-negotiable Documents (which Documents, if
the Inventory covered thereby is included in the Borrowing Base, have been issued in the name of and delivered to the Grantor or
the Agent) and (y) negotiable Documents (which Documents, if the Inventory covered thereby is included in the Borrowing Base, have
been issued and duly negotiated to the Grantor or the Agent or to order, blank endorsed, and in the possession of the Grantor or
the Agent), (ii) received notification of any secured party’s interest (other than the security interest granted hereunder
or any Lien permitted under Section 8.06(j) of the Credit Agreement) in any such Equipment or Inventory or (iii) any Lien on any
such Equipment or Inventory except, Permitted Borrowing Base Liens.
(b) Each
Grantor is the sole entitlement holder of its Deposit, Commodity and Security Accounts and no other Person (other than the Agent
pursuant to this Security Agreement or an Account Control Agreement or any other Person with respect to Permitted Liens) has control
or possession of, or any other interest in, any of its Deposit, Commodity and Security Accounts or any other securities or property
credited thereto.
(c) As
of the Closing Date, except for the Persons designated on Schedule II who hold Collateral in the capacity designated thereon and
any other Person hereafter identified pursuant to Section 4.07, no Person other than Agent has possession or control of any of
its Collateral, except as permitted under the Credit Agreement or by Sections 4.07 or 7.11.
3.05 Negotiable
Documents, Instruments and Chattel Paper. Except as permitted under the Credit Agreement or by Sections 2.01, 4.03, 4.07 or
7.11, each Grantor has delivered to the Agent possession of all originals of all Documents, Instruments, Promissory Notes, and
tangible Chattel Paper owned or held by such Grantor on the Closing Date.
3.06 Intellectual
Property Collateral. Except as disclosed on Schedules III through V, with respect to any Intellectual Property
Collateral:
Security Agreement, Page 10 |
(a) such
Intellectual Property Collateral is valid, subsisting, unexpired and enforceable and has not been abandoned or adjudged invalid
or unenforceable, in whole or in part except as could not be expected to have a Material Adverse Effect;
(b) such
Grantor is the sole and exclusive owner of the entire and unencumbered right, title and interest in and to such Intellectual Property
Collateral and no claim has been made that the use of such Intellectual Property Collateral does or may, conflict with, infringe,
misappropriate, dilute, misuse or otherwise violate any of the rights of any third party;
(c) such
Grantor has made all necessary filings and recordations to protect its interest in such Intellectual Property Collateral material
to its business, including recordations of all of its interests in the Patent Collateral and Trademark Collateral material to its
business in the United States Patent and Trademark Office and in corresponding offices throughout the world, and its claims to
the Copyright Collateral in the United States Copyright Office and in corresponding offices throughout the world;
(d) such
Grantor has taken all reasonable steps to safeguard its Trade Secrets and to its knowledge (A) none of the Trade Secrets of such
Grantor has been used, divulged, disclosed or appropriated for the benefit of any other Person other than such Grantor; (B) no
employee, independent contractor or agent of such Grantor has misappropriated any Trade Secrets of any other Person in the course
of the performance of his or her duties as an employee, independent contractor or agent of such Grantor; and (C) no employee, independent
contractor or agent of such Grantor is in default or breach of any term of any employment agreement, non-disclosure agreement,
assignment of inventions agreement or similar agreement or contract relating in any way to the protection, ownership, development,
use or transfer of such Grantor’s Intellectual Property Collateral;
(e) to
such Grantor’s knowledge, no third party is infringing upon any Intellectual Property owned or used by such Grantor in any
material respect, or any of its respective licensees;
(f)
no settlement or consents, covenants not to sue, nonassertion assurances, or releases have been
entered into by such Grantor or to which such Grantor is bound that adversely affects its rights to own or use any
Intellectual Property except as would not have a Material Adverse Effect;
(g) such
Grantor has not made a previous assignment, sale, transfer or agreement constituting a present or future assignment, sale or transfer
of any Intellectual Property for purposes of granting a security interest or as Collateral that has not been terminated or released;
(h) such
Grantor uses adequate standards of quality in the manufacture, distribution, and sale of all products sold and in the provision
of all services rendered under or in connection with all Trademarks and has taken all commercially reasonable action necessary
to insure that all licensees of the Trademarks owned by such Grantor use such adequate standards of quality;
(i) the
consummation of the transactions contemplated by the Credit Agreement and this Security Agreement will not result in the termination
or material impairment of any of the Intellectual Property Collateral;
(j) such
Grantor owns directly or is entitled to use by license or otherwise, all Patents, Trademarks, Trade Secrets, Copyrights, mask works,
licenses, technology, know-how, processes and rights with respect to any of the foregoing used in, necessary for or of importance
to the conduct of such Grantor’s business; and
Security Agreement, Page 11 |
(k) the
Intellectual Property Collateral disclosed on Schedules III through V is not material to the operations or business
of any Grantor, is of negligible economic value to the Grantors and its value is otherwise not material.
3.07 Validity,
etc.
(a) This
Security Agreement creates a valid security interest in the Collateral securing the payment of the Obligations.
(b) Except
as otherwise provided in Section 4.07, each Grantor has taken all actions necessary or required under the Basic Documents to perfect
the Agent’s security interest with respect to the Collateral.
(c) Except
as otherwise provided in Section 4.07, each Grantor has taken all actions necessary to obtain control of the Collateral as provided
in Sections 9-104, 9-105, 9-106 and 9-107 of the UCC.
(d) Upon
the filing of the UCC-1 financing statements in the filing office of such Grantor’s jurisdiction of organization listed in
Item A of Schedule II (collectively, the “Filing Statements”) with the appropriate agencies therefor
the security interests created under this Security Agreement shall constitute a perfected security interest in the Collateral described
on such Filing Statements in favor of the Agent on behalf of the Secured Parties to the extent that a security interest therein
may be perfected by filing pursuant to the relevant UCC, prior to all other Liens, except for (i) in the case of Collateral included
in the Borrowing Base (as defined in the Credit Agreement), Permitted Borrowing Base Liens and (ii) in the case of all other assets
of each Grantor, Permitted Liens (in each case (under clauses (i) and (ii)) such security interest shall be second in priority
of right only to the Permitted Liens until the obligations secured by such Permitted Liens have been satisfied).
3.08 Authorization,
Approval, etc. Except as have been obtained or made and are in full force and effect, no authorization, approval or other action
by, and no notice to or filing with, any Governmental Authority or any other third party is required either:
(a) for
the grant by the Grantors of the security interest granted hereby or for the execution, delivery and performance of this Security
Agreement by the Grantors;
(b) for
the perfection or maintenance of the security interests hereunder including the first priority (subject to Permitted Liens) nature
of such security interest (except with respect to the Filing Statements or, with respect to Intellectual Property Collateral material
to any Grantor’s business, the recordation of any agreements with the U.S. Patent and Trademark Office or the U.S. Copyright
Office) or the exercise by the Agent of its rights and remedies hereunder; or
(c) for
the exercise by the Agent of the voting or other rights provided for in this Security Agreement, or, except (i) with respect to
any securities issued by a Subsidiary of a Grantor, as may be required in connection with a disposition of such securities by laws
affecting the offering and sale of securities generally, the remedies in respect of the Collateral pursuant to this Security Agreement
and (ii) any “change of control” or similar filings required by state licensing agencies.
Security Agreement, Page 12 |
3.09 Best
Interests. It is in the best interests of each Grantor (other than the Company) to execute this Security Agreement inasmuch
as such Grantor will, as a result of being a Subsidiary of the Company, derive substantial direct and indirect benefits from the
Loans and other extensions of credit secured hereby and each Grantor agrees that the Secured Parties are relying on this representation
in agreeing to make such Loans and other extensions of credit.
3.10 Titled
Equipment, etc. No Grantor owns any: (i) Equipment for which a certificate of title has been issued, (ii) vessels documented
under Chapter 121, Title 46, United States Code (the Ship Mortgage Act) or for which an application for documentation is pending;
(iii) rail cars nor (iv) aircraft.
3.11 Value
of Excluded Property. The aggregate book value of the assets excluded from the Collateral under the provisions of clauses (ii)
and (iv) of Section 2.01 does not exceed $500,000 as of the Closing Date.
Section
4
COVENANTS
Each Grantor covenants
and agrees that, at all times prior to the later of (x) the Revolving Credit Commitment Termination Date and (y) the payment in
full in cash of the Obligations (other than any contingent obligations for which no claim has been made or asserted), the expiration
or termination of all Letters of Credit issued under the Credit Agreement (other than Letters of Credit that have been Cash Collateralized
pursuant to Section 2.11(b)(ii) of the Credit Agreement) and the irrevocable termination of all Revolving Loan Line Portions thereunder,
such Grantor will perform, comply with and be bound by the obligations set forth below.
4.01 As
to Investment Property, etc.
(a) Capital
Securities of Subsidiaries. No Grantor will allow any of its Subsidiaries
(i) that
is a corporation, business trust, joint stock company or similar Person, to issue Uncertificated Securities;
(ii) that
is a partnership or limited liability company, to (A) issue Capital Securities that are to be dealt in or traded on securities
exchanges or in securities markets, (B) expressly provide in its Governing Documents that its Capital Securities are securities
governed by Article 8 of the UCC, or (C) place such Subsidiary’s Capital Securities in a Securities Account; and
(iii) to
issue Capital Securities in addition to or in substitution for the Capital Securities pledged hereunder, except to such Grantor
(and such Capital Securities are immediately pledged and delivered to the Agent pursuant to the terms of this Security Agreement).
(b) Continuous
Pledge. Each Grantor will (subject to the terms of the Credit Agreement and Sections 3.04(a), 4.07 and 7.11) deliver to the
Agent and at all times keep pledged to the Agent pursuant hereto, on a first-priority, perfected basis (subject to the terms of
the Intercreditor Agreement and Section 2.01) all Payment Intangibles to the extent they are evidenced by a Document, Instrument,
Promissory Note or Chattel Paper, and all interest and principal with respect to such Payment Intangibles, and all Proceeds and
rights from time to time received by or distributable to such Grantor in respect of any of the foregoing Collateral. Each Grantor
agrees that, subject to the terms of the Credit Agreement and subject to Sections 2.01, 3.04(a), 4.07 and 7.11, it will, promptly
following receipt thereof, deliver to the Agent possession of all originals of negotiable Documents, Instruments, Promissory Notes
and Chattel Paper that it acquires following the Closing Date.
Security Agreement, Page 13 |
(c) Voting
Rights; Dividends, etc. All dividends, Distributions, interest, principal, cash payments, Payment Intangibles and Proceeds
that may at any time and from time to time be held by such Grantor, but which such Grantor is then obligated to deliver to the
Agent, shall, until delivery to the Agent, be held by such Grantor separate and apart from its other property in trust for the
Agent. The Agent agrees that unless a Specified Default shall exist and the Agent shall have given the notice referred to in clause
(b), such Grantor will have the exclusive voting power with respect to any Investment Property constituting Collateral and
the Agent will, upon the written request of such Grantor, promptly deliver such proxies and other documents, if any, as shall be
reasonably requested by such Grantor which are necessary to allow such Grantor to exercise that voting power; provided that
no vote shall be cast, or consent, waiver, or ratification given, or action taken by such Grantor that would impair any such Collateral
or be inconsistent with or violate any provision of any Basic Document.
4.02 Change
of Name, etc. No Grantor will change its name or place of incorporation or organization or federal taxpayer identification
number except upon 30 days’ prior written notice to the Agent.
4.03 As
to Accounts.
(a) Each
Grantor shall have the right to collect all Accounts so long as no Specified Default exists.
(b) Each
Grantor agrees, promptly upon receipt of notice of the existence of a Specified Default from the Agent and without any request
therefor by the Agent, so long as such Specified Default shall continue, to deliver (properly endorsed where required hereby or
requested by the Agent) to the Agent interest, principal, and all Proceeds of the Collateral, in each case thereafter received
by such Grantor, all of which shall be held by the Agent as additional Collateral.
(c) Following
(i) the occurrence and continuance of a Specified Default and (ii) the delivery of notice pursuant to clause (b), the Agent
shall have the right to apply any amount in the Collateral Account to the payment of any Obligations which are due and payable.
(d) With
respect to each of the Collateral Account, it is hereby confirmed and agreed that (i) deposits in such Collateral Account are subject
to a security interest as contemplated hereby, (ii) such Collateral Account shall be under the control of the Agent and (iii) during
the continuance of a Specified Default, the Agent shall have the right to withdraw funds from such Collateral Account and solely
apply such funds to repay the Obligations in accordance with the Credit Agreement. For the avoidance of doubt, following the waiver
or cure of any Specified Default and so long as after giving effect thereto no other Event of Default shall be continuing and the
Required Banks shall not have demanded payment of and Cash Collateral (if applicable) for the Obligations, to the extent that the
Agent shall not have previously applied any such funds to repay the Obligations, the Agent shall, at the request of the Company,
transfer, or shall be caused to be transferred, to the Grantor all funds in the Collateral Account.
Security Agreement, Page 14 |
4.04 As
to Grantors’ Use of Collateral.
(a) Subject
to clause (b), each Grantor (i) may in the ordinary course of its business, at its own expense, sell, lease or furnish under
the contracts of service any of the Inventory normally held by such Grantor for such purpose, and use and consume, in the ordinary
course of its business, any raw materials, work in process or materials normally held by such Grantor for such purpose, (ii) will,
at its own expense, endeavor to collect, as and when due, all amounts due with respect to any of the Collateral, including the
taking of such action with respect to such collection as the Agent may request following the occurrence of a Specified Default
or, in the absence of such request, as such Grantor may deem advisable, and (iii) may grant, in the ordinary course of business,
to any party obligated on any of the Collateral, any rebate, refund or allowance to which such party may be lawfully entitled,
and may accept, in connection therewith, the return of Goods, the sale or lease of which shall have given rise to such Collateral.
(b) At
any time following the occurrence and during the continuance of a Specified Default, whether before or after the maturity of any
of the Obligations, the Agent may (i) revoke any or all of the rights of each Grantor set forth in clause (a), (ii) notify
any parties obligated on any of the Collateral to make payment to the Agent of any amounts due or to become due thereunder and
(iii) enforce collection of any of the Collateral by suit or otherwise and surrender, release, or exchange all or any part thereof,
or compromise or extend or renew for any period (whether or not longer than the original period) any indebtedness thereunder or
evidenced thereby.
(c) Upon
request of the Agent following the occurrence and during the continuance of a Specified Default, each Grantor will, at its own
expense, notify any parties obligated on any of the Collateral to make payment to the Agent of any amounts due or to become due
thereunder.
(d) At
any time following the occurrence and during the continuation of a Specified Default, the Agent may endorse, in the name of such
Grantor, any item, howsoever received by the Agent, representing any payment on or other Proceeds of any of the Collateral.
4.05 As
to Intellectual Property Collateral. Each Grantor covenants and agrees to comply with the following provisions as such provisions
relate to any Intellectual Property Collateral material to the operations or business of such Grantor:
(a) such
Grantor will not (i) do or fail to perform any act whereby any of the Patent Collateral may lapse or become abandoned or dedicated
to the public or unenforceable, (ii) permit any of its licensees to (A) fail to continue to use any of the Trademark Collateral
in order to maintain all of the Trademark Collateral in full force free from any claim of abandonment for non-use, (B) fail to
maintain as in the past the quality of products and services offered under all of the Trademark Collateral, (C) fail to employ
all of the Trademark Collateral registered with any federal or state or foreign authority with an appropriate notice of such registration,
(D) adopt or use any other Trademark which is confusingly similar or a colorable imitation of any of the Trademark Collateral,
(E) use any of the Trademark Collateral registered with any federal, state or foreign authority except for the uses for which registration
or application for registration of all of the Trademark Collateral has been made or (F) do or permit any act or knowingly omit
to do any act whereby any of the Trademark Collateral may lapse or become invalid or unenforceable, or (iii) do or permit any act
or knowingly omit to do any act whereby any of the Copyright Collateral or any of the Trade Secrets Collateral may lapse or become
invalid or unenforceable or placed in the public domain except upon expiration of the end of an unrenewable term of a registration
thereof, unless, in the case of any of the foregoing requirements in clauses (i), (ii) and (iii), such Grantor
shall either (x) reasonably and in good faith determine that any of such Intellectual Property Collateral is of negligible economic
value to such Grantor, or (y) the loss of the Intellectual Property Collateral would not have a Material Adverse Effect on the
business;
Security Agreement, Page 15 |
(b) such
Grantor shall promptly notify the Agent if it knows, or has reason to know, that any application or registration relating to any
material item of the Intellectual Property Collateral may become abandoned or dedicated to the public or placed in the public domain
or invalid or unenforceable, or of any adverse determination or development (including the institution of, or any such determination
or development in, any proceeding in the United States Patent and Trademark Office, the United States Copyright Office or any foreign
counterpart thereof or any court) regarding such Grantor’s ownership of any of the Intellectual Property Collateral, its
right to register the same or to keep and maintain and enforce the same;
(c) in
no event will such Grantor or any of its agents, employees, designees or licensees file an application for the registration of
any Intellectual Property Collateral with the United States Patent and Trademark Office, the United States Copyright Office or
any similar office or agency in any other country or any political subdivision thereof, unless it promptly informs the Agent, and
upon request of the Agent (subject to the terms of the Credit Agreement), executes and delivers all agreements, instruments and
documents as the Agent may request to evidence the Agent’s security interest in such Intellectual Property Collateral;
(d) such
Grantor will take all necessary steps, including in any proceeding before the United States Patent and Trademark Office, the United
States Copyright Office or (subject to the terms of the Credit Agreement) any similar office or agency in any other country or
any political subdivision thereof, to maintain and pursue any application (and to obtain the relevant registration) filed with
respect to, and to maintain any registration of, the Intellectual Property Collateral, including the filing of applications for
renewal, affidavits of use, affidavits of incontestability and opposition, interference and cancellation proceedings and the payment
of fees and taxes (except to the extent that dedication, abandonment or invalidation is permitted under the foregoing clause
(a) or (b)); and
(e) such
Grantor will promptly execute and deliver to the Agent (as applicable) a Patent Security Agreement, Trademark Security Agreement
and/or Copyright Security Agreement, as the case may be, in the forms of Exhibit A, Exhibit B and Exhibit C
hereto following its obtaining an interest in any such Intellectual Property, and shall execute and deliver to the Agent any other
document required to acknowledge or register or perfect the Agent’s interest in any part of such item of Intellectual Property
Collateral unless such Grantor shall determine in good faith (with the consent of the Agent) that any Intellectual Property Collateral
is of negligible economic value to such Grantor.
4.06 As
to Commercial Tort Claims. Each Grantor covenants and agrees that, until the later of (x) the Revolving Credit Commitment Termination
Date and (y) the payment in full in cash of the Obligations, the expiration or termination of all Letters of Credit issued under
the Credit Agreement (other than Letters of Credit that have been Cash Collateralized pursuant to Section 2.11(b)(ii) of the Credit
Agreement) and the irrevocable termination of all Commitments thereunder, with respect to any Commercial Tort Claim in excess of
$1,000,000 individually or in the aggregate hereafter arising, it shall deliver to the Agent a supplement in form and substance
reasonably satisfactory to the Agent, together with all supplements to schedules thereto identifying such new Commercial Tort Claims.
4.07 Further
Assurances; Exceptions to Perfection. Each Grantor agrees that, from time to time at its own expense, it will promptly execute
and deliver all further instruments and documents, and take all further action, that may be necessary or that the Agent may reasonably
request, in order to perfect, preserve and protect any security interest granted or purported to be granted hereby or to enable
the Agent to exercise and enforce its rights and remedies hereunder with respect to any Collateral. Without limiting the generality
of the foregoing, such Grantor will:
Security Agreement, Page 16 |
(a) from
time to time upon the reasonable request of the Agent, promptly deliver to the Agent such stock powers, instruments and similar
documents, satisfactory in form and substance to the Agent, with respect to such Collateral as the Agent may request and will,
from time to time upon the request of the Agent, after the occurrence and during the continuance of any Specified Default, promptly
transfer any securities constituting Collateral into the name of any nominee designated by the Agent; subject to Sections 2.01,
3.04(a), 4.07 and 7.11, if any Collateral shall be evidenced by an Instrument, negotiable Document, Promissory Note or tangible
Chattel Paper, deliver and pledge to the Agent hereunder such Instrument, negotiable Document, Promissory Note or tangible Chattel
Paper duly endorsed and accompanied by duly executed instruments of transfer or assignment, all in form and substance satisfactory
to the Agent;
(b) take
such actions as may be necessary or that the Agent may request in order to perfect and preserve the security interests and other
rights granted or purported to be granted to the Agent hereby;
(c) deliver
to the Agent and at all times keep pledged to the Agent pursuant hereto, on a first-priority, perfected basis (subject to the terms
of the Intercreditor Agreement), at the request of the Agent, all Investment Property constituting Collateral and all interest
and principal with respect to Promissory Notes, and all Proceeds and rights from time to time received by or distributable to such
Grantor in respect of any of the foregoing Collateral;
(d) not
take or omit to take any action the taking or the omission of which would result in any impairment or alteration of any obligation
of the maker of any Payment Intangible or other Instrument constituting Collateral;
(e) not
create any tangible Chattel Paper without placing a legend on such tangible Chattel Paper reasonably acceptable to the Agent indicating
that the Agent has a security interest in such Chattel Paper;
(f)
furnish to the Agent, from time to time at the Agent’s reasonable request,
statements and schedules identifying the location of all Equipment and Inventory;
(g) without
limitation of Section 8.03(f) of the Credit Agreement, furnish to the Agent, from time to time at the Agent’s reasonable
request, statements and schedules further identifying and describing the Collateral and such other reports in connection with the
Collateral as the Agent may request, all in reasonable detail;
(h) use
commercially reasonable efforts to obtain a lien subordination or waiver agreement in a form reasonably approved by the Agent from
the landlord of each location that it or any of its Subsidiaries leases and at which any Inventory is located and a mortgagee lien
subordination or waiver in a form reasonably approved by the Agent from each location it or any of its Subsidiaries owns that is
mortgaged to a third party;
(i)
use commercially reasonable efforts to obtain a lien acknowledgement in a form reasonably acceptable to
the Agent from each third party warehouse at which any Inventory is customarily stored; and
(j)
do all things reasonably requested by the Agent in order to enable the Agent to have and
maintain control over the Collateral consisting of Investment Property, Deposit Accounts, Letter-of-Credit-Rights and
Electronic Chattel Paper.
Security Agreement, Page 17 |
With respect to the foregoing and the grant
of the security interest hereunder, each Grantor hereby authorizes the Agent to file one or more financing or continuation statements,
and amendments thereto, relative to all or any part of the Collateral. Each Grantor agrees that a carbon, photographic or other
reproduction of this Security Agreement or any UCC financing statement covering the Collateral or any part thereof shall be sufficient
as a UCC financing statement where permitted by law. Each Grantor hereby authorizes the Agent to file financing statements describing
as the collateral covered thereby “all of the debtor’s personal property or assets” or words to that effect,
notwithstanding that such wording may be broader in scope than the Collateral described in this Security Agreement.
Notwithstanding the foregoing or any other
terms in any Basic Document, if no Specified Default exists:
(i) a
Grantor may retain for collection in the ordinary course of business checks representing proceeds of Accounts received in the ordinary
course of business;
(ii) a
Grantor may retain any letters of credit and money received or held in the ordinary course of business;
(iii) a
Grantor may retain and utilize in the ordinary course of business all dividends and interest paid in respect to any of the Capital
Securities or any other Investment Property;
(iv) a
Grantor may retain any Documents received and further negotiated in the ordinary course of business (except for Documents required
to be delivered to the Agent with respect to Inventory included in the Borrowing Base); and
(v) a
Grantor shall not be required to:
(A) cause
the Agent’s security interest to be noted on any certificate of title evidencing any Equipment;
(B) grant
the Agent control over any Chattel Paper or Letter of Credit Right;
(C) grant
the Agent control over any Security Account or Commodity Account unless such Collateral is included in the Borrowing Base; or
(D) take
any action under the laws of any jurisdiction other than the United States of America or any jurisdiction located therein to create,
perfect or protect the security interest of the Agent in any Intellectual Property registered outside the United States of America.
If a Specific Default occurs and the Agent
requests, then the Grantors shall take such action as the Agent may reasonably request to perfect and protect the security interests
of the Agent in all of the Collateral including any of the Collateral described in clauses (A) through (D) above.
4.08 Deposit
Accounts, Securities Accounts and Commodities Accounts. Following the occurrence and during the continuance of a Specified
Default, at the request of the Agent or the Required Banks, each Grantor will maintain all of its operating deposit accounts only
with the Agent, J.P. Morgan Chase Bank, N.A., or with any depositary institution that has entered into an Account Control Agreement
in favor of the Agent. No Grantor will open any new operating deposit accounts located in the United States (other than payroll
accounts) not in existence on the date hereof without the prior written consent (not to be unreasonably withheld) of all Banks
(other than, for the avoidance of doubt, any Affiliate of an Issuing Bank which has issued a Letter of Credit pursuant to the last
sentence of the definition of Issuing Bank), and no Grantor will open any new Commodity Accounts or Security Accounts located in
the United States not in existence on the date hereof unless such Grantor shall have given the Agent thirty (30) days prior written
notice thereof. When no Specified Default exists, each Grantor may make purchases and sales of Investment Property in accordance
with the restrictions on investment set out in the Credit Agreement and, for the avoidance of doubt, may make any and all withdrawals
from its Deposit Accounts. When a Specified Default exists and the Agent provides the Company notice, no Grantor shall be authorized
to make purchases and sales of the Investment Property, be authorized to make any withdrawals from any Deposit Account and it shall
take such steps as Agent may reasonably request to give Agent control over all Investment Property and Deposit Accounts. No Grantor
will give any party control over any Investment Property or Deposit Account.
Security Agreement, Page 18 |
4.09 Equipment
and Inventory. Each Grantor shall keep its Equipment and Inventory in (or in transit to) the United States of America, Canada
or Australia, or in transit to Latin America or, upon thirty (30) days prior written notice to the Agent, at such other places
where all action required to perfect and protect the Agent’s security interest in such Collateral with the priority required
by the Credit Agreement shall have been taken. Each Grantor shall notify the Agent if it acquires after the Closing Date any vessel
subject to the Ship Mortgage Act of 1920 or any aircraft and, subject to Section 4.07, shall take all action reasonably deemed
necessary or desirable by the Agent to create, perfect and protect its interest in such Collateral with the priority required by
the Credit Agreement.
4.10 Warehouse
Receipts Non Negotiable. Each Grantor agrees that if any warehouse receipt or receipt in the nature of a warehouse receipt
is issued in respect of any portion of the Collateral, such warehouse receipt or receipt in the nature thereof shall not be negotiable
unless such warehouse receipt or receipt in the nature thereof is issued and duly negotiated to the Grantor or the Agent or to
order, blank endorsed, and in the possession of the Grantor or the Agent.
4.11 Chattel
Paper and Letters of Credit. Subject to the terms of the Basic Documents and the Intercreditor Agreement, no Grantor will give
any party control over any Letter of Credit Right or electronic Chattel Paper.
Section
5
THE AGENT
5.01 Agent
Appointed Attorney-in-Fact. Each Grantor hereby irrevocably appoints the Agent its attorney-in-fact, with full authority in
the place and stead of such Grantor and in the name of such Grantor or otherwise, from time to time in the Agent’s discretion,
following the occurrence and during the continuance of a Specified Default, to take any action and to execute any instrument which
the Agent may deem necessary or advisable to accomplish the purposes of this Security Agreement, including:
(a) to
ask, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due
under or in respect of any of the Collateral;
(b) to
receive, endorse, and collect any drafts or other Instruments, Documents and Chattel Paper, in connection with clause (a)
above;
(c) to
file any claims or take any action or institute any proceedings which the Agent may deem necessary or desirable for the collection
of any of the Collateral or otherwise to enforce the rights of the Agent with respect to any of the Collateral; and
(d) to
perform the affirmative obligations of such Grantor hereunder.
Security Agreement, Page 19 |
Each Grantor hereby acknowledges, consents
and agrees that the power of attorney granted pursuant to this Section is irrevocable and coupled with an interest.
5.02 Agent
May Perform. If any Grantor fails to perform any agreement contained herein or in any other Basic Document, the Agent may itself
perform, or cause performance of, such agreement, and the expenses of the Agent incurred in connection therewith shall be payable
by such Grantor pursuant to Section 11.03 of the Credit Agreement.
5.03 Agent
Has No Duty. The powers conferred on the Agent hereunder are solely to protect its interest (on behalf of the Secured Parties)
in the Collateral and shall not impose any duty on it to exercise any such powers. Except for reasonable care of any Collateral
in its possession and the accounting for moneys actually received by it hereunder, the Agent shall have no duty as to any Collateral
or responsibility for:
(a) ascertaining
or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Investment
Property, whether or not the Agent has or is deemed to have knowledge of such matters, or
(b) taking
any necessary steps to preserve rights against prior parties or any other rights pertaining to any Collateral.
5.04 Reasonable
Care. The Agent is required to exercise reasonable care in the custody and preservation of any of the Collateral in its possession;
provided that the Agent shall be deemed to have exercised reasonable care in the custody and preservation of any of the
Collateral, if it takes such action for that purpose as each Grantor reasonably requests in writing at times other than upon the
occurrence and during the continuance of any Specified Default, but failure of the Agent to comply with any such request at any
time shall not in itself be deemed a failure to exercise reasonable care.
Section
6
REMEDIES
6.01 Certain
Remedies. If any Event of Default shall have occurred and be continuing or if the Required Banks shall have demanded payment
of and Cash Collateral (if applicable) for the Obligations:
(a) The
Agent may, with the consent of the Required Banks, and, upon request of the Required Banks, shall exercise in respect of the Collateral,
in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a Secured
Party on default under the UCC (whether or not the UCC applies to the affected Collateral) and also may, with the consent of the
Required Banks, and, upon request of the Required Banks, shall:
(i) take
possession of any Collateral not already in its possession without demand and without legal process;
(ii) require
each Grantor to, and each Grantor hereby agrees that it will, at its expense and upon request of the Agent forthwith, assemble
all or part of the Collateral as directed by the Agent and make it available to the Agent at a place to be designated by the Agent
that is reasonably convenient to both parties;
(iii) enter
onto the property where any Collateral is located and take possession thereof without demand and without legal process;
Security Agreement, Page 20 |
(iv) without
notice except as specified below, lease, license, sell or otherwise dispose of the Collateral or any part thereof in one or more
parcels at public or private sale, at any of the Agent’s offices or elsewhere, for cash, on credit or for future delivery,
and upon such other terms as the Agent may deem commercially reasonable. Each Grantor agrees that, to the extent notice of sale
shall be required by law, at least ten days’ prior notice to such Grantor of the time and place of any public sale or the
time after which any private sale is to be made shall constitute reasonable notification. The Agent shall not be obligated to make
any sale of Collateral regardless of notice of sale having been given. The Agent may adjourn any public or private sale from time
to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and
place to which it was so adjourned.
(b) All
cash Proceeds received by the Agent in respect of any sale of, collection from, or other realization upon, all or any part of the
Collateral shall be applied by the Agent as provided in the Credit Agreement (but subject to the Intercreditor Agreement).
(c) The
Agent may, with the consent of the Required Banks, and, upon request of the Required Banks, shall:
(i) transfer
all or any part of the Collateral into the name of the Agent or its nominee, with or without disclosing that such Collateral is
subject to the Lien hereunder;
(ii) notify
the parties obligated on any of the Collateral to make payment to the Agent of any amount due or to become due thereunder;
(iii) withdraw,
or cause or direct the withdrawal, of all funds with respect to the Collateral Account;
(iv) enforce
collection of any of the Collateral by suit or otherwise, and surrender, release or exchange all or any part thereof, or compromise
or extend or renew for any period (whether or not longer than the original period) any obligations of any nature of any party with
respect thereto;
(v) endorse
any checks, drafts, or other writings in any Grantor’s name to allow collection of the Collateral;
(vi) take
control of any Proceeds of the Collateral; and
(vii) execute
(in the name, place and stead of any Grantor) endorsements, assignments, stock powers and other instruments of conveyance or transfer
with respect to all or any of the Collateral.
6.02 Securities
Laws.
(a) If
the Agent shall determine to exercise its right to sell all or any portion of the Collateral pursuant to Section 6.01, each
Grantor agrees that, upon request of the Agent, each Grantor will, at its own expense:
(i) execute
and deliver, and cause (or, with respect to any issuer which is not a Subsidiary of such Grantor, use its best efforts to cause)
each issuer of the Collateral contemplated to be sold and the directors and officers thereof to execute and deliver, all such instruments
and documents, and do or cause to be done all such other acts and things, as may be necessary or, in the opinion of the Agent,
advisable to register such Collateral under the provisions of the Securities Act of 1933, as from time to time amended (the “Securities
Act”), and cause the registration statement relating thereto to become effective and to remain effective for such period
as prospectuses are required by law to be furnished, and to make all amendments and supplements thereto and to the related prospectus
which, in the opinion of the Agent, are necessary or advisable, all in conformity with the requirements of the Securities Act and
the rules and regulations of the SEC applicable thereto;
Security Agreement, Page 21 |
(ii) use
its best efforts to exempt the Collateral under the state securities or “Blue Sky” laws and to obtain all necessary
governmental approvals for the sale of the Collateral, as requested by the Agent;
(iii) cause
(or, with respect to any issuer that is not a Subsidiary of a Grantor, use its best efforts to cause) each such issuer to make
available to its security holders, as soon as practicable, an earnings statement that will satisfy the provisions of Section 11(a)
of the Securities Act; and
(iv) do
or cause to be done all such other acts and things as may be necessary to make such sale of the Collateral or any part thereof
valid and binding and in compliance with applicable law.
(b) Each
Grantor acknowledges the impossibility of ascertaining the amount of damages that would be suffered by the Agent or the Secured
Parties by reason of the failure by such Grantor to perform any of the covenants contained in this Section and consequently agrees
that, if such Grantor shall fail to perform any of such covenants, it shall pay, as liquidated damages and not as a penalty, an
amount equal to the value (as determined by the Agent) of such Collateral on the date the Agent shall demand compliance with this
Section.
6.03 Compliance
with Restrictions. Each Grantor agrees that in any sale of any of the Collateral whenever an Event of Default exists or at
any time after a demand for payment of and Cash Collateral (if applicable) for the Obligations
by the Required Banks shall have been made, the Agent is hereby authorized to comply with any limitation or restriction in connection
with such sale as it may be advised by counsel is necessary in order to avoid any violation of applicable law (including compliance
with such procedures as may restrict the number of prospective bidders and purchasers, require that such prospective bidders and
purchasers have certain qualifications, and restrict such prospective bidders and purchasers to Persons who will represent and
agree that they are purchasing for their own account for investment and not with a view to the distribution or resale of such Collateral),
or in order to obtain any required approval of the sale or of the purchaser by any Governmental Authority or official, and such
Grantor further agrees that such compliance shall not result in such sale being considered or deemed not to have been made in a
commercially reasonable manner, nor shall the Agent be liable nor accountable to such Grantor for any discount allowed by the reason
of the fact that such Collateral is sold in compliance with any such limitation or restriction.
6.04 Protection
of Collateral. The Agent may from time to time, at its option, perform any act which any Grantor fails to perform with respect
to the maintenance, preservation and protection of the Collateral after being requested in writing so to perform (it being understood
that no such request need be given after the occurrence and during the continuance of an Event of Default or at any time after
a demand for payment of and Cash Collateral (if applicable) for the Obligations by the Required
Banks shall have been made) and the Agent may from time to time take any other action which the Agent deems necessary for the maintenance,
preservation or protection of any of the Collateral or of its security interest therein.
Security Agreement, Page 22 |
6.05 Standards
for Exercising Remedies. To the extent that applicable law imposes duties on Agent to exercise remedies in a commercially reasonable
manner, each Grantor acknowledges and agrees that it is not commercially unreasonable for Agent: (a) to fail to incur expenses
reasonably deemed significant by Agent to prepare any Collateral for disposition or otherwise to complete raw material for work-in-process
into finished goods or other finished products for disposition; (b) to fail to obtain third party consents for access to Collateral
to be disposed of, or to obtain or if not required by other law, to fail to obtain governmental or third party consents for the
collection or disposition of the Collateral to be collected or disposed of; (c) to fail to exercise collection remedies against
account debtors or other persons obligated on Collateral or to remove Liens on or any adverse claims against the Collateral; (d)
to exercise collection remedies against account debtors and other persons obligated on Collateral directly or through the use of
collection agencies and other collection specialists; (e) to advertise dispositions of Collateral through publications or media
of general circulation, whether or not the Collateral is of a specialized nature; (f) to contact other persons, whether or not
in the same business as Grantor, for expressions of interest in acquiring all or any portion of the Collateral; (g) to hire one
or more professional auctioneers to assist in the disposition of Collateral, whether or not the Collateral is of a specialized
nature; (h) to dispose of Collateral by utilizing Internet sites that provide for the auction of assets of the types included in
the Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of assets; (i) to dispose of
assets in wholesale rather than retail markets; (j) to disclaim disposition warranties; (k) to purchase insurance or credit enhancements
to insure Agent against risks of loss, collection or disposition of Collateral or to provide Agent a guaranteed return from the
collection or disposition of Collateral; (l) to the extent deemed appropriate by Agent in its commercially reasonable discretion,
to obtain the services of brokers, investment bankers, consultants and other professionals (including Agent and its affiliates)
to assist Agent in the collection or disposition of any of the Collateral; or (m) to comply with any applicable state or federal
law requirement in connection with the disposition or collection of the Collateral. Each Grantor acknowledges that this Section
is intended to provide non-exhaustive indications of what actions or omissions by Agent would not be commercially unreasonable
in Agent’s exercise of remedies against the Collateral and that other actions or omissions by Agent shall not be deemed commercially
unreasonable solely by not being included in this Section. Without limitation upon the foregoing, nothing contained in this Section
shall be construed to grant any rights to any Grantor or to impose any duties upon Agent that would not have been granted or imposed
by this Agreement or by applicable law in the absence of this Section.
Section
7
MISCELLANEOUS PROVISIONS
7.01 Basic
Document. This Security Agreement is a Basic Document executed pursuant to the Credit Agreement and shall (unless otherwise
expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions thereof, including
Article XI thereof.
7.02 Binding
on Successors, Transferees and Assigns; Assignment. This Security Agreement shall remain in full force and effect until the
later of (x) the Revolving Credit Commitment Termination Date and (y) the payment in full in cash of the Obligations, the expiration
or termination of all Letters of Credit issued under the Credit Agreement (other than Letters of Credit that have been Cash Collateralized
pursuant to Section 2.11(b)(ii) of the Credit Agreement) and the irrevocable termination of all Revolving Loan Line Portions thereunder,
shall be binding upon the Grantors and their successors, transferees and assigns and shall inure to the benefit of and be enforceable
by each Secured Party and its successors, transferees and assigns; provided that no Grantor may (unless otherwise permitted
under the terms of the Credit Agreement or this Security Agreement) assign any of its obligations hereunder without the prior written
consent of all Banks.
7.03 Amendments,
etc. Except as provided in Section 7.05, no amendment to or waiver of any provision of this Security Agreement, nor consent
to any departure by any Grantor from its obligations under this Security Agreement, shall in any event be effective unless the
same shall be in writing and signed by the Agent (on behalf of the Banks or the Required Banks, as the case may be, pursuant to
Section 11.04 of the Credit Agreement) and the Grantors and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.
7.04 Notices.
All notices and other communications provided for in this Security Agreement shall be given or made in accordance with the Credit
Agreement and if to any Grantor, at the address for notices of the Company set forth therein.
Security Agreement, Page 23 |
7.05 Additional
Grantors. Upon the execution and delivery by any other Person of a supplement in the form of Annex I hereto, such Person shall
become a “Grantor” hereunder with the same force and effect as if it were originally a party to this Security agreement
and named as a “Grantor” hereunder. The execution and delivery of such supplement shall not require the consent of
any other Grantor hereunder, and the rights and obligations of each Grantor hereunder shall remain in full force and effect notwithstanding
the addition of any new Grantor as a party to this Security Agreement.
7.06 No
Waiver; Remedies. In addition to, and not in limitation of Section 2.05, no failure on the part of any Secured
Party to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies
herein provided are cumulative and not exclusive of any remedies provided by law.
7.07 Headings.
The various headings of this Security Agreement are inserted for convenience only and shall not affect the meaning or interpretation
of this Security Agreement or any provisions thereof.
7.08 Severability.
Any provision of this Security Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such provision and
such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions
of this Security Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.
7.09 Governing
Law, Entire Agreement, etc. THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF
THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW
YORK), EXCEPT TO THE EXTENT THAT THE PERFECTION, EFFECT OF PERFECTION OR NONPERFECTION, AND PRIORITY OF THE SECURITY INTEREST HEREUNDER,
OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE
OF NEW YORK. This Security Agreement and the other Basic Documents constitute the entire understanding among the parties hereto
with respect to the subject matter hereof and thereof and supersede any prior agreements, written or oral, with respect thereto.
7.10 Counterparts.
This Security Agreement may be executed by the parties hereto in several counterparts, each of which shall be deemed to be an original
and all of which shall constitute together but one and the same agreement. Delivery of an executed counterpart of a signature page
to this Security Agreement by facsimile or other electronic communication shall be effective as delivery of a manually executed
counterpart of this Security Agreement.
7.11 Committed
Facility. Notwithstanding anything to the contrary contained herein, (i) to the extent that any delivery requirement of the
Grantors hereunder in respect of Collateral not included in the Borrowing Base conflict, as determined by such Grantor in its reasonable
discretion, with delivery requirements under the Committed Facility Security Agreement, the applicable Grantor may choose whether
to satisfy such delivery requirement by delivering such Collateral to the Agent or the Uncommitted Facility Agent and (ii) to the
extent that any delivery requirement hereunder in respect of Collateral included in the Borrowing Base (and Proceeds thereof) conflict,
as determined by such Grantor in its reasonable discretion, with delivery requirements under the Committed Facility Security Agreement,
the applicable Grantor shall comply with the provisions hereunder.
[Remainder of Page Intentionally Left
Blank; Signature Page Follows]
Security Agreement, Page 24 |
IN WITNESS WHEREOF,
each of the parties hereto has caused this Security Agreement to be duly executed and delivered by its Authorized Officer as of
the date first above written.
|
EMPIRE RESOURCES, INC. |
|
|
|
|
By: |
/s/ Sandra Kahn |
|
|
Name: Sandra R. Kahn |
|
|
Title: Vice President |
|
|
|
|
EMPIRE RESOURCES PACIFIC, LTD. |
|
|
|
|
By: |
/s/ Sandra Kahn |
|
|
Name: Sandra R. Kahn |
|
|
Title: Vice President |
|
|
|
|
COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”, NEW YORK BRANCH, as Agent |
|
|
|
|
By: |
/s/ Chan K. Park |
|
|
Name: Chan K. Park |
|
|
Title: Managing Director |
|
|
|
|
By: |
/s/ Xander Willemsen |
|
|
Name: Xander Willemsen |
|
|
Title: Executive Director |
Security Agreement, Page 25 |
Schedules
to
Security Agreement
Schedule I
| |
| | |
| | |
Common Stock | |
Issuer (corporate) | |
Cert. # | | |
# of Shares | | |
Authorized Shares | | |
Outstanding Shares | | |
% of Shares Pledged | |
EMPIRE RESOURCES PACIFIC, LTD.
| |
| 4 | | |
| 100 | | |
| 1,000 | | |
| 100 | | |
| 100 | % |
Imbali Metals BVBA (limited to 65%) | |
| n/a | | |
| 650 | | |
| 1,000 | | |
| 1,000 | | |
| 65 | % |
Schedule II
Item A. Location of each Grantor.
Location for purposes of UCC:
1. |
EMPIRE RESOURCES, INC.: |
Delaware |
|
|
|
2. |
EMPIRE RESOURCES PACIFIC, LTD. : |
Delaware |
Item B. Filing
locations last five years.
Filing Locations last five years:
1. |
EMPIRE RESOURCES, INC.: |
Delaware Secretary of State |
|
|
|
2. |
EMPIRE RESOURCES PACIFIC, LTD. : |
Delaware Secretary of State |
Item C. Trade names.
1. |
EMPIRE RESOURCES, INC.: |
PAM Metals, 4Metals.com |
|
|
|
2. |
EMPIRE RESOURCES PACIFIC, LTD. : |
None |
Schedules to Security Agreement, Page 1 |
Item D. Merger or other corporate
reorganization.
1. |
EMPIRE RESOURCES, INC.: |
None |
|
|
|
2. |
EMPIRE RESOURCES PACIFIC, LTD. : |
None |
Item E. Taxpayer ID numbers.
1. |
EMPIRE RESOURCES, INC.: |
22-3136782 |
|
|
|
2. |
EMPIRE RESOURCES PACIFIC, LTD. : |
22-3458576 |
Item F. Government Contracts.
1. |
EMPIRE RESOURCES, INC.: |
None |
|
|
|
2. |
EMPIRE RESOURCES PACIFIC, LTD. : |
None |
Item G. Deposit Accounts, Securities Accounts and/or Commodities
Accounts.
Description of Deposit Account:
1. |
EMPIRE RESOURCES, INC.: JPMorgan Chase Bank deposit account number 9102535458 |
2. |
EMPIRE RESOURCES PACIFIC, LTD. : |
None |
Description of Securities Account:
None
Description of Commodities Account:
| 1. | Natixis Commodity Markets Ltd. – EMPRESS |
| 2. | J. P. Morgan Chase Bank – 70432 |
| 3. | Marex Financial – 04216 |
Schedules to Security Agreement, Page 2 |
Item H. Letter of Credit Rights.
1. |
EMPIRE RESOURCES, INC.: |
None |
|
|
|
2. |
EMPIRE RESOURCES PACIFIC, LTD. : |
None |
Item I. Commercial Tort Claims.
1. |
EMPIRE RESOURCES, INC.: |
None |
|
|
|
2. |
EMPIRE RESOURCES PACIFIC, LTD. : |
None |
Item J. Third Parties in Possession
1. |
EMPIRE RESOURCES, INC.: |
As set forth in the table below: |
2. |
EMPIRE RESOURCES PACIFIC, LTD. : |
None |
To be updated.
Schedule III
Item A. Patents
Patent Title |
|
Owner |
|
Patent No. |
Data Network/ Telephone Adaptor Device |
|
Empire Resources, Inc. |
|
5,838,665 |
Pending Patent Applications
NONE
Patent Applications In Preparation
NONE
Item B. Patent Licenses
NONE
Schedules to Security Agreement, Page 3 |
Schedule IV
Item A. Trademarks
Mark |
|
Owner |
|
Serial or Reg. No. |
|
|
Empire Resources, Inc. |
|
3,265,785 |
Item B. Trademark Licenses
NONE
Schedule V
Item A. Copyrights/Mask Works
NONE
Item B. Copyright/Mask Work Licenses
NONE
Schedule VI
Trade Secret or Know-How Licenses
NONE
Schedules to Security Agreement, Page 4 |
EXHIBIT A
to Security Agreement
PATENT SECURITY
AGREEMENT
This PATENT SECURITY
AGREEMENT, dated as of [_________], 20__ (this “Agreement”), is made by [NAME OF GRANTOR], a [_______________]
(the “Grantor”), in favor of COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”,
NEW YORK BRANCH (“Rabobank”), as agent (together with its successor(s) thereto in such capacity, the “Agent”)
for each of the Secured Parties.
WITNESSETH:
WHEREAS, pursuant to
an Uncommitted Credit Agreement, dated as of June 19, 2014 (as amended, supplemented, amended and restated or otherwise modified
from time to time, the “Credit Agreement”), among Empire Resources, Inc., a Delaware corporation (the “Company”),
the Banks (as defined therein) from time to time party thereto and the Agent, the Banks have extended Commitments to make Loans
to and issue and participate in Letters of Credit for the account of the Company;
WHEREAS, in connection
with the Credit Agreement, the Grantor has executed and delivered a Security Agreement, dated as of June 19, 2014 (as amended,
supplemented, amended and restated or otherwise modified from time to time, the “Security Agreement”);
WHEREAS, pursuant to
the Credit Agreement and pursuant to clause (e) of Section 4.05 of the Security Agreement, the Grantor is required to execute and
deliver this Agreement and to grant to the Agent a continuing security interest in all of the Patent Collateral (as defined below)
to secure all Obligations;
WHEREAS, the Grantor
has duly authorized the execution, delivery and performance of this Agreement; and
NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor agrees, for the benefit
of each Secured Party, as follows:
SECTION
1. Definitions. Unless otherwise defined herein or the context otherwise requires, terms used in this Agreement,
including its preamble and recitals, have the meanings provided in the Security Agreement.
SECTION
2. Grant of Security Interest. The Grantor hereby assigns, pledges, hypothecates, charges, mortgages, delivers, and
transfers to the Agent, for its benefit and the ratable benefit of each other Secured Party, and hereby grants to the Agent, for
its benefit and the ratable benefit of each other Secured Party, a continuing security interest in all of the following property,
whether now or hereafter existing or acquired by the Grantor (the “Patent Collateral”):
(a) all
of its letters patent and applications for letters patent throughout the world, including all patent applications in preparation
for filing and each patent and patent application referred to in Item A of Schedule I attached hereto;
(b) all
reissues, divisions, continuations, continuations in part, extensions, renewals and reexaminations of any of the items described
in clause (a);
(c) all
of its patent licenses, and other agreements providing the Grantor with the right to use any items of the type referred to in clauses
(a) and (b) above, including each patent license referred to in Item B of Schedule I attached hereto; and
(d) all
Proceeds of, and rights associated with, the foregoing (including license royalties and Proceeds of infringement suits), the right
to sue third parties for past, present or future infringements of any patent or patent application, and for breach or enforcement
of any patent license.
SECTION
3. Security Agreement. This Agreement has been executed and delivered by the Grantor for the purpose of registering
the security interest of the Agent in the Patent Collateral with the United States Patent and Trademark Office and corresponding
offices in other countries of the world. The security interest granted hereby has been granted as a supplement to, and not in limitation
of, the security interest granted to the Agent for its benefit and the ratable benefit of each other Secured Party under the Security
Agreement. The Security Agreement (and all rights and remedies of the Agent and each Secured Party thereunder) shall remain in
full force and effect in accordance with its terms.
SECTION
4. Acknowledgment. The Grantor does hereby further acknowledge and affirm that the rights and remedies of the Agent
with respect to the security interest in the Patent Collateral granted hereby are more fully set forth in the Security Agreement,
the terms and provisions of which (including the remedies provided for therein) are incorporated by reference herein as if fully
set forth herein.
SECTION
5. Basic Document. This Agreement is a Basic Document executed pursuant to the Credit Agreement and shall (unless
otherwise expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions thereof,
including Article XI thereof.
SECTION
6. Counterparts. This Agreement may be executed by the parties hereto in several counterparts, each of which shall
be deemed to be an original and all of which shall constitute together but one and the same agreement.
IN WITNESS WHEREOF,
each of the parties hereto has caused this Agreement to be duly executed and delivered by its Authorized Officer as of the date
first above written.
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[NAME OF GRANTOR] |
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By: |
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Name: |
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Title: |
SCHEDULE I
to Patent Security Agreement
Item A. Patents
Issued Patents
Country |
Patent No. |
Issue Date |
Inventor(s) |
Title |
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Pending Patent Applications
Country |
Patent No. |
Issue Date |
Inventor(s) |
Title |
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Patent Applications in Preparation
Country |
Docket No. |
Expected
Filing Date |
Inventor(s) |
Title |
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Item B. Patent Licenses
Country |
Licensor |
Licensee |
Effective
Date |
Expiration Date |
Subject
Matter |
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EXHIBIT B
to Security Agreement
TRADEMARK SECURITY
AGREEMENT
This TRADEMARK SECURITY
AGREEMENT, dated as of [______________], 20__ (this “Agreement”), is made by [NAME OF GRANTOR], a [__________________]
(the “Grantor”), in favor of COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”,
NEW YORK BRANCH (“Rabobank”), as agent (together with its successor(s) thereto in such capacity, the “Agent”)
for each of the Secured Parties.
WITNESSETH:
WHEREAS, pursuant to
an Uncommitted Credit Agreement, dated as of June 19, 2014 (as amended, supplemented, amended and restated or otherwise modified
from time to time, the “Credit Agreement”), among Empire Resources, Inc., a Delaware corporation (the “Company”),
the Banks (as defined therein) from time to time party thereto and the Agent, the Banks have agreed to consider requests to make
Loans to and issue and participate in Letters of Credit for the account of the Company;
WHEREAS, in connection
with the Credit Agreement, the Grantor has executed and delivered a Security Agreement, dated as of June 19, 2014 (as amended,
supplemented, amended and restated or otherwise modified from time to time, the “Security Agreement”);
WHEREAS, pursuant to
the Credit Agreement and pursuant to clause (e) of Section 4.05 of the Security Agreement, the Grantor is required to execute and
deliver this Agreement and to grant to the Agent a continuing security interest in all of the Trademark Collateral (as defined
below) to secure all Obligations;
WHEREAS, the Grantor
has duly authorized the execution, delivery and performance of this Agreement; and
NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor agrees, for the benefit
of each Secured Party, as follows:
SECTION
1. Definitions. Unless otherwise defined herein or the context otherwise requires, terms used in this Agreement,
including its preamble and recitals, have the meanings provided in the Security Agreement.
SECTION
2. Grant of Security Interest. The Grantor hereby assigns, pledges, hypothecates, charges, mortgages, delivers, and
transfers to the Agent, for its benefit and the ratable benefit of each other Secured Party, and hereby grants to the Agent, for
its benefit and the ratable benefit of each other Secured Party, a continuing security interest in all of the following property,
whether now or hereafter existing or acquired by the Grantor (the “Trademark Collateral”):
(a) (i) all
of its Trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service
marks, certification marks, collective marks, logos and other source or business identifiers, and all goodwill of the business
associated therewith, now existing or hereafter adopted or acquired including those referred to in Item A of Schedule I hereto,
whether currently in use or not, all registrations and recordings thereof and all applications in connection therewith, whether
pending or in preparation for filing, including registrations, recordings and applications in the United States Patent and Trademark
Office or in any office or agency of the United States of America or any State thereof or any other country or political subdivision
thereof or otherwise, and all common law rights relating to the foregoing, and (ii) the right to obtain all reissues, extensions
or renewals of the foregoing (collectively referred to as the “Trademark”);
(b) all Trademark
licenses for the grant by or to the Grantor of any right to use any Trademark, including each Trademark license referred to in
Item B of Schedule I hereto;
(c) all of
the goodwill of the business connected with the use of, and symbolized by the items described in, clause (a), and to the extent
applicable clause (b);
(d) the right
to sue third parties for past, present and future infringements of any Trademark Collateral described in clause (a) and, to the
extent applicable, clause (b); and
(e) all Proceeds
of, and rights associated with, the foregoing, including any claim by the Grantor against third parties for past, present or future
infringement or dilution of any Trademark, Trademark registration or Trademark license, or for any injury to the goodwill associated
with the use of any such Trademark or for breach or enforcement of any Trademark license and all rights corresponding thereto throughout
the world.
SECTION
3. Security Agreement. This Agreement has been executed and delivered by the Grantor for the purpose of registering
the security interest of the Agent in the Trademark Collateral with the United States Patent and Trademark Office and corresponding
offices in other countries of the world. The security interest granted hereby has been granted as a supplement to, and not in limitation
of, the security interest granted to the Agent for its benefit and the ratable benefit of each other Secured Party under the Security
Agreement. The Security Agreement (and all rights and remedies of the Agent and each Secured Party thereunder) shall remain in
full force and effect in accordance with its terms.
SECTION
4. Acknowledgment. The Grantor does hereby further acknowledge and affirm that the rights and remedies of the Agent
with respect to the security interest in the Trademark Collateral granted hereby are more fully set forth in the Security Agreement,
the terms and provisions of which (including the remedies provided for therein) are incorporated by reference herein as if fully
set forth herein.
SECTION
5. Basic Document. This Agreement is a Basic Document executed pursuant to the Credit Agreement and shall (unless
otherwise expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions thereof,
including Article XI thereof.
SECTION
6. Counterparts. This Agreement may be executed by the parties hereto in several counterparts, each of which shall
be deemed to be an original and all of which shall constitute together but one and the same agreement.
IN WITNESS WHEREOF,
each of the parties hereto has caused this Agreement to be duly executed and delivered by Authorized Officer as of the date first
above written.
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[NAME OF GRANTOR] |
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By: |
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Name: |
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Title: |
SCHEDULE I
to Trademark Security Agreement
Item A. Trademarks
Registered Trademarks
Country |
Trademark |
Registration No. |
Registration Date |
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Pending Trademark Applications
Country |
Trademark |
Serial No. |
Filing Date |
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Trademark Applications in Preparation
Country |
Trademark |
Docket No. |
Expected
Filing Date |
Products/
Services |
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Item B. Trademark Licenses
Country or
Territory |
Trademark |
Licensor |
Licensee |
Effective Date |
Expiration
Date |
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EXHIBIT C
to Security Agreement
COPYRIGHT SECURITY
AGREEMENT
This COPYRIGHT SECURITY
AGREEMENT, dated as of [______________], 20__ (this “Agreement”), is made by [NAME OF GRANTOR], a [__________________]
(the “Grantor”), in favor COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”,
NEW YORK BRANCH (“Rabobank”), as agent (together with its successor(s) thereto in such capacity, the “Agent”)
for each of the Secured Parties.
WITNESSETH:
WHEREAS, pursuant to
an Uncommitted Credit Agreement, dated as of June 19, 2014 (as amended, supplemented, amended and restated or otherwise modified
from time to time, the “Credit Agreement”), among Empire Resources, Inc., a Delaware corporation (the “Company”),
the Banks (as defined therein) from time to time party thereto and the Agent, the Banks have agreed to consider requests to make
Loans to and issue and participate in Letters of Credit for the account of the Company;
WHEREAS, in connection
with the Credit Agreement, the Grantor has executed and delivered a Security Agreement, dated as of June 19, 2014 (as amended,
supplemented, amended and restated or otherwise modified from time to time, the “Security Agreement”);
WHEREAS, pursuant to
the Credit Agreement and pursuant to clause (e) of Section 4.05 of the Security Agreement, the Grantor is required to execute and
deliver this Agreement and to grant to the Agent a continuing security interest in all of the Copyright Collateral (as defined
below) to secure all Obligations; and
WHEREAS, the Grantor
has duly authorized the execution, delivery and performance of this Agreement; and
NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor agrees, for the benefit
of each Secured Party, as follows:
SECTION
1. Definitions. Unless otherwise defined herein or the context otherwise requires, terms used in this Agreement,
including its preamble and recitals, have the meanings provided in the Security Agreement.
SECTION
2. Grant of Security Interest. The Grantor hereby assigns, pledges, hypothecates, charges, mortgages, delivers, and
transfers to the Agent, for its benefit and the ratable benefit of each other Secured Party, and hereby grants to the Agent, for
its benefit and the ratable benefit of each other Secured Party, a continuing security interest in all of the following (the “Copyright
Collateral”), whether now or hereafter existing or acquired by the Grantor: all copyrights of the Grantor, whether statutory
or common law, registered or unregistered and whether published or unpublished, now or hereafter in force throughout the world
including all of the Grantor’s right, title and interest in and to all copyrights registered in the United States Copyright
Office or anywhere else in the world and also including the copyrights referred to in Item A of Schedule I hereto, and registrations
and recordings thereof and all applications for registration thereof, whether pending or in preparation, all copyright licenses,
including each copyright license referred to in Item B of Schedule I hereto, the right to sue for past, present and future infringements
of any of the foregoing, all rights corresponding thereto, all extensions and renewals of any thereof and all Proceeds of the foregoing,
including licenses, royalties, income, payments, claims, damages and Proceeds of suit.
SECTION
3. Security Agreement. This Agreement has been executed and delivered by the Grantor for the purpose of registering
the security interest of the Agent in the Copyright Collateral with the United States Copyright Office and corresponding offices
in other countries of the world. The security interest granted hereby has been granted as a supplement to, and not in limitation
of, the security interest granted to the Agent for its benefit and the ratable benefit of each other Secured Party under the Security
Agreement. The Security Agreement (and all rights and remedies of the Agent and each Secured Party thereunder) shall remain in
full force and effect in accordance with its terms.
SECTION
4. Acknowledgment. The Grantor does hereby further acknowledge and affirm that the rights and remedies of the Agent
with respect to the security interest in the Copyright Collateral granted hereby are more fully set forth in the Security Agreement,
the terms and provisions of which (including the remedies provided for therein) are incorporated by reference herein as if fully
set forth herein.
SECTION
5. Basic Document. This Agreement is a Basic Document executed pursuant to the Credit Agreement and shall (unless
otherwise expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions thereof,
including Article XI thereof.
SECTION
6. Counterparts. This Agreement may be executed by the parties hereto in several counterparts, each of which shall
be deemed to be an original and all of which shall constitute together but one and the same agreement.
IN WITNESS WHEREOF,
each of the parties hereto has caused this Agreement to be duly executed and delivered by its Authorized Officer as of the date
first above written.
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[NAME OF GRANTOR] |
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By: |
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Name: |
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Title: |
SCHEDULE I
to Copyright Security Agreement
Item A. Copyrights/Mask Works
Registered Copyright/Mask Works
Country |
Registration No. |
Registration Date |
Authors |
Title |
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Copyright/Mask Work Pending Registration
Applications
Country |
Serial No. |
Filing Date |
Authors |
Title |
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Copyright/Mask Work Registration Applications
in Preparation
Country |
Docket No. |
Expected
Filing Date |
Authors |
Title |
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Item B. Copyright/Mask Work Licenses
Country or
Territory |
Licensor |
Licensee |
Effective Date |
Expiration Date |
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ANNEX I
to Security Agreement
SUPPLEMENT TO
SECURITY
AGREEMENT
This SUPPLEMENT, dated
as of ____________ ___, _____ (this “Supplement”), is to the Security Agreement, dated as of June 19, 2014 (as
amended, supplemented, amended and restated or otherwise modified from time to time, the “Security Agreement”),
among the Grantors (such term, and other terms used in this Supplement, to have the meanings set forth in Section I of the Security
Agreement) from time to time party thereto, in favor of COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK
NEDERLAND”, NEW YORK BRANCH (“Rabobank”), as agent (together with its successor(s) thereto in such capacity,
the “Agent”) for each of the Secured Parties.
WITNESSETH:
WHEREAS, pursuant to
an Uncommitted Credit Agreement, dated as of June 19, 2014 (as amended, supplemented, amended and restated or otherwise modified
from time to time, the “Credit Agreement”), among Empire Resources, Inc., a Delaware corporation (the “Company”),
the Banks (as defined therein) from time to time party thereto and the Agent, the Banks have agreed to consider requests to make
Loans to and issue and participate in Letters of Credit for the account of the Company;
WHEREAS, pursuant to
the provisions of Section 7.05 of the Security Agreement, each of the undersigned is becoming a Grantor under the Security Agreement;
and
WHEREAS, each of the
undersigned desires to become a “Grantor” under the Security Agreement in order to induce the Secured Parties to continue
to make extensions of credit secured pursuant to the Security Agreement under the Credit Agreement;
NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each of the undersigned agrees, for
the benefit of each Secured Party, as follows.
SECTION
1. Party to Security Agreement, etc. In accordance with the terms of the Security Agreement, by its signature below
each of the undersigned hereby irrevocably agrees to become a Grantor under the Security Agreement with the same force and effect
as if it were an original signatory thereto and each of the undersigned hereby (a) agrees to be bound by and comply with all of
the terms and provisions of the Security Agreement applicable to it as a Grantor and (b) represents and warrants that the representations
and warranties made by it as a Grantor thereunder are true and correct as of the date hereof, unless stated to relate solely to
an earlier date, in which case such representations and warranties shall be true and correct as of such earlier date. In furtherance
of the foregoing, each of the undersigned hereby grants to the Agent, for its benefit and the ratable benefit of each other Secured
Party, a continuing security interest in all of such undersigned’s Collateral, whether now or hereafter existing, owned or
acquired, and wherever located and agrees that each reference to a “Grantor” and/or “Grantors” in the Security
Agreement shall be deemed to include each of the undersigned.
SECTION
2. Representations. Each of the undersigned Grantor hereby represents and warrants that this Supplement has been
duly authorized, executed and delivered by it and that this Supplement and the Security Agreement constitute the legal, valid and
binding obligation of each of the undersigned, enforceable against it in accordance with its terms.
SECTION
3. Full Force of Security Agreement. Except as expressly supplemented hereby, the Security Agreement shall remain
in full force and effect in accordance with its terms.
SECTION
4. Severability. Wherever possible each provision of this Supplement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Supplement shall be prohibited by or invalid under such
law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Supplement or the Security Agreement.
SECTION
5. Governing Law, Entire Agreement, etc. THIS SUPPLEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED
BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS
LAW OF THE STATE OF NEW YORK). This Supplement and the other Basic Documents constitute the entire understanding among the parties
hereto with respect to the subject matter thereof and supersede any prior agreements, written or oral, with respect thereto.
SECTION
6. Counterparts. This Supplement may be executed by the parties hereto in several counterparts, each of which shall
be deemed to be an original and all of which shall constitute together but one and the same agreement.
IN WITNESS WHEREOF,
each of the parties hereto has caused this Agreement to be duly executed and delivered by its Authorized Officer as of the date
first above written.
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[NAME OF ADDITIONAL SUBSIDIARY] |
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By: |
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Name: |
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Title: |
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[NAME OF ADDITIONAL SUBSIDIARY] |
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By: |
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Name: |
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Title: |
ACCEPTED AND AGREED FOR ITSELF AND ON BEHALF OF THE SECURED
PARTIES:
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COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”, NEW YORK BRANCH, as Agent |
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By: |
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By: |
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Exhibit
10.5
INTERCREDITOR AGREEMENT
This INTERCREDITOR
AGREEMENT is dated as of June 19, 2014 and entered into by COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK
NEDERLAND”, NEW YORK BRANCH (“Rabobank”), in its capacity as collateral agent for the Committed Lenders
(as defined below), including its successors and assigns from time to time (in such capacity, the “Committed Collateral
Agent”), and Rabobank, in its capacity as collateral agent for the Uncommitted Lenders (as defined below), including
its successors and assigns from time to time (in such capacity, the “Uncommitted Collateral Agent”).
RECITALS
A. Empire
Resources, Inc., a Delaware corporation (the “Company”), the several Lenders from time to time parties thereto
and Rabobank, as Agent (in such capacity, the “Committed Agent”), have entered into an Amended and Restated
Credit Agreement dated as of the date hereof providing for a revolving credit facility (as amended, restated, supplemented, modified,
replaced or refinanced from time to time, the “Committed Credit Agreement”);
B. The
obligations of the Company under the Committed Credit Agreement will be secured by liens on substantially all the assets of the
Company in favor of the Committed Collateral Agent, pursuant to the terms of the Committed Credit Agreement Collateral Documents
(as hereinafter defined);
C. The
Company, the several Lenders from time to time parties thereto and Rabobank, as Agent (in such capacity, the “Uncommitted
Agent”), have entered into a Credit Agreement dated as of the date hereof providing for an uncommitted revolving credit
facility (as amended, restated, supplemented, modified, replaced or refinanced from time to time, the “Uncommitted Credit
Agreement”);
D. The
obligations of the Company under the Uncommitted Credit Agreement will be secured by liens on substantially all the assets of the
Company in favor of the Uncommitted Collateral Agent, pursuant to the terms of the Uncommitted Credit Agreement Collateral Documents
(as hereinafter defined);
E. The
Committed Collateral Agent and the Uncommitted Collateral Agent are entering into this Agreement in order to (1) subordinate
the liens of the Uncommitted Collateral Agent granted pursuant to the Uncommitted Credit Agreement Collateral Documents to the
liens of the Committed Collateral Agent over the Committed Credit Agreement Priority Collateral (as defined below) pursuant to
the Committed Credit Agreement Collateral Documents, upon the terms and subject to the conditions set forth in this Agreement;
and (2) subordinate the liens of the Committed Collateral Agent granted pursuant to the Committed Credit Agreement Collateral
Documents to the liens of the Uncommitted Collateral Agent over the Uncommitted Credit Agreement Priority Collateral (as defined
below) pursuant to the Uncommitted Credit Agreement Collateral Documents;
F. Each
of the Committed Collateral Agent and the Uncommitted Collateral Agent is entering into this Agreement to set forth the respective
rights and remedies of the Committed Credit Agreement Claimholders (as hereinafter defined), on the one hand, and the Uncommitted
Credit Agreement Claimholders (as hereinafter defined), on the other hand, with respect to the Committed Credit Agreement Priority
Collateral and Uncommitted Credit Agreement Priority Collateral; and
It is a condition to
the obligation of the Committed Lenders to make revolving loans under the Committed Credit Agreement and a requirement under the
Uncommitted Credit Agreement that the Committed Collateral Agent and the Uncommitted Collateral Agent shall have executed and delivered
this Agreement.
AGREEMENT
In consideration of
the foregoing, the mutual covenants and obligations herein set forth and for other good and valuable consideration, the sufficiency
and receipt of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:
SECTION 1. Definitions.
1.1 Defined
Terms.
As used in this Agreement,
the following terms shall have the meanings set forth in this Section:
“Advance Letter
of Credit” means any commercial letter of credit the issuance of which has been irrevocably requested by the Company
for the purpose of securing the purchase price of inventory which, upon issuance of such letter of credit, will qualify as Eligible
Inventory Ordered Under L/C (as defined in the Committed Credit Agreement or Uncommitted Credit Agreement, as applicable).
“Affiliate”
means, with respect to a specified 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. For purposes of this definition, a Person shall be deemed
to “control” or be “controlled by” a Person if such Person possesses, directly or indirectly, power to
direct or cause the direction of the management or policies of such Person whether through ownership of equity interests, by contract
or otherwise.
“Agreement”
means this Intercreditor Agreement, as amended, restated, renewed, extended, supplemented or otherwise modified from time to time.
“Bankruptcy
Code” means Title 11 of the United States Code entitled “Bankruptcy,” as now and hereafter in effect, or
any successor statute.
“Bankruptcy
Law” means the Bankruptcy Code and any similar federal, state or foreign law for the relief of debtors.
“Borrowing
Base Certificate” has the respective meaning assigned to that term in the Committed Credit Agreement or the Uncommitted
Credit Agreement, as applicable.
“Borrowing
Base Deficiency” means, with respect to the Committed Credit Agreement or the Uncommitted Credit Agreement, at any time
that the aggregate Credit Exposure (as defined in the Committed Credit Agreement or the Uncommitted Credit Agreement, as the case
may be) exceeds the applicable Borrowing Base (as defined in the Committed Credit Agreement or the Uncommitted Credit Agreement,
as the case may be) as set forth on a Borrowing Base Certificate (or an Interim Borrowing Base Certificate) delivered by the Company
to the Committed Agent or the Uncommitted Agent, as the case may be.
“Borrowing
Base Deficiency Amount” means, with respect to the Committed Credit Agreement or the Uncommitted Credit Agreement, at
any time there exists a Borrowing Base Deficiency, the excess of the applicable Credit Exposure (as defined in the Committed Credit
Agreement or the Uncommitted Credit Agreement, as the case may be) at such time over the applicable Borrowing Base (as defined
in the Committed Credit Agreement or the Uncommitted Credit Agreement, as the case may be) as set forth in the Borrowing Base Certificate
(or Interim Borrowing Base Certificate) delivered by the Company to the Committed Agent or the Uncommitted Agent, as the case may
be, used in determining the existence of such Borrowing Base Deficiency.
“Borrowing
Base Discrepancy Notice” has the meaning assigned to such term in Section 2.3(a)(i).
“Borrowing
Base Excess” means, with respect to the Committed Credit Agreement or the Uncommitted Credit Agreement, at any time that
the applicable Borrowing Base (as defined in the Committed Credit Agreement or the Uncommitted Credit Agreement, as the case may
be) exceeds the aggregate Credit Exposure (as defined in the Committed Credit Agreement or the Uncommitted Credit Agreement, as
the case may be) as set forth on a Borrowing Base Certificate (or an Interim Borrowing Base Certificate) delivered by the Company
to the Committed Agent or the Uncommitted Agent, as the case may be.
“Borrowing
Base Excess Amount” means, with respect to the Committed Credit Agreement or the Uncommitted Credit Agreement, at any
time there exists a Borrowing Base Excess, the excess of the applicable Borrowing Base (as defined in the Committed Credit Agreement
or the Uncommitted Credit Agreement, as the case may be) at such time over the aggregate Credit Exposure (as defined in
the Committed Credit Agreement or the Uncommitted Credit Agreement, as the case may be) as set forth in the Borrowing Base Certificate
(or Interim Borrowing Base Certificate) delivered by the Company to the Committed Agent or the Uncommitted Agent, as the case may
be, used in determining the existence of such Borrowing Base Excess.
“Business
Day” means any day on which commercial banks are not authorized or required to close in New York City.
“Collateral”
means, collectively, the Committed Collateral and the Uncommitted Collateral.
“Committed
Collateral” means “Collateral” as such term is defined in the Security Agreement (as
defined in the Committed Credit Agreement).
“Committed
Collateral Agent” has the meaning assigned to that term in the Recitals to this Agreement.
“Committed
Credit Agreement” has the meaning assigned to that term in the Recitals to this Agreement.
“Committed
Credit Agreement Claimholders” means, at any relevant time, the holders of Committed Credit Agreement Obligations at
that time, including the Committed Lenders and the agents under the Committed Loan Documents.
“Committed
Credit Agreement Collateral Account” means the “Collateral Account”, as defined in the Committed Credit Agreement.
“Committed
Credit Agreement Collateral Documents” means the Security Documents (as defined in the Committed Credit Agreement) and
any other agreement, document or instrument pursuant to which a Lien is granted securing any Committed Credit Agreement Obligations
or under which rights or remedies with respect to such Liens are governed and any Guaranty of any Committed Credit Agreement Obligations.
“Committed
Credit Agreement Priority Collateral” means, as of any day of determination, (a) all of the assets and property
of the Company set forth on the Borrowing Base Certificate (or Interim Borrowing Base Certificate) delivered pursuant to Section 8.01(d)
of the Committed Credit Agreement as of such day (or, if such day is not a day on which a Borrowing Base Certificate is to be delivered
pursuant to Section 8.01(d) of the Committed Credit Agreement (or not a day on which an Interim Borrowing Base Certificate
is delivered pursuant to Section 8.01(d) of the Committed Credit Agreement), the Borrowing Base Certificate (or Interim Borrowing
Base Certificate) most recently delivered pursuant to Section 8.01(d) of the Committed Credit Agreement), as such assets and
property may be adjusted pursuant to Section 2.3, (b) the Committed Credit Agreement Collateral Account and all funds
therein and all amounts credited thereto, (c) the JPM Account and all funds therein and all amounts credited thereto, (d) the
Advance Letters of Credit issued under the Committed Credit Agreement and (e) all proceeds of the foregoing. If any new Borrowing
Base Certificate (or Interim Borrowing Base Certificate) delivered pursuant to the Committed Credit Agreement shows a deficiency
and if the reason for such deficiency is in whole or in part that the Company has violated Section 8.27 of the Committed Credit
Agreement or because assets set forth on the Borrowing Base Certificate (or Interim Borrowing Base Certificate) previously delivered
became ineligible, then the improperly removed assets or the ineligible assets shall continue to be Committed Credit Agreement
Priority Collateral until the next Borrowing Base Certificate is delivered pursuant to the Committed Credit Agreement showing an
excess.
“Committed
Credit Agreement Obligations” means, all Obligations outstanding under the Committed Credit Agreement and the other Committed
Loan Documents, including, without limitation, all interest accrued or accruing (or which would, absent commencement of an Insolvency
or Liquidation Proceeding, accrue) after commencement of an Insolvency or Liquidation Proceeding in accordance with the rate specified
in the relevant Committed Loan Document whether or not the claim for such interest is allowed as a claim in such Insolvency or
Liquidation Proceeding.
“Committed
Lenders” means the “Banks” under and as defined in the Committed Loan Documents.
“Committed
Loan Documents” means the Committed Credit Agreement and the Basic Documents (as defined in the Committed Credit Agreement),
and each of the other agreements, documents and instruments providing for or evidencing any other Committed Credit Agreement Obligation,
and any other document or instrument executed or delivered at any time in connection with any Committed Credit Agreement Obligations,
including any intercreditor or joinder agreement among holders of Committed Credit Agreement Obligations, to the extent such are
effective at the relevant time, as each may be amended, restated, supplemented, modified, renewed or extended from time to time
in accordance with the provisions of this Agreement.
“Common Collateral”
means all Collateral that is not Committed Credit Agreement Priority Collateral or Uncommitted Credit Agreement Priority Collateral.
“Company”
has the meaning assigned to that term in the Recitals to this Agreement.
“DIP Financing”
has the meaning assigned to that term in Section 6.1.
“Discharge
of Committed Credit Agreement Obligations” means, except to the extent otherwise expressly provided in Section 5.3:
(a) payment
in full in cash of the principal of and interest (including interest accruing on or after the commencement of any Insolvency or
Liquidation Proceeding, whether or not such interest would be allowed in such Insolvency or Liquidation Proceeding), on all Obligations
outstanding under the Committed Loan Documents and constituting Committed Credit Agreement Obligations;
(b) payment
in full in cash of all other Committed Credit Agreement Obligations (other than contingent indemnification obligations to the extent
no claim giving rise thereto has been asserted) that are due and payable or otherwise accrued and owing at or prior to the time
such principal and interest are paid;
(c) termination
or expiration of all commitments, if any, to extend credit that would constitute Committed Credit Agreement Obligations; and
(d) termination
or cash collateralization (in an amount and manner set forth in the Committed Credit Agreement) of all letters of credit issued
under the Committed Loan Documents and constituting Committed Credit Agreement Obligations.
“Discharge
of Uncommitted Credit Agreement Obligations” means, except to the extent otherwise expressly provided in Section 5.3:
(a) payment
in full in cash of the principal of and interest (including interest accruing on or after the commencement of any Insolvency or
Liquidation Proceeding, whether or not such interest would be allowed in such Insolvency or Liquidation Proceeding), on all Obligations
outstanding under the Uncommitted Loan Documents and constituting Uncommitted Credit Agreement Obligations;
(b) payment
in full in cash of all other Uncommitted Credit Agreement Obligations (other than contingent indemnification obligations to the
extent no claim giving rise thereto has been asserted) that are due and payable or otherwise accrued and owing at or prior to the
time such principal and interest are paid;
(c) termination
or expiration of all obligations, if any, to extend credit that would constitute Uncommitted Credit Agreement Obligations; and
(d) termination
or cash collateralization (in an amount and manner set forth in the Uncommitted Credit Agreement) of all letters of credit issued
under the Uncommitted Loan Documents and constituting Uncommitted Credit Agreement Obligations.
“Excess
Committed Assets” has the meaning assigned to such term in Section 2.3(b)(ii).
“Excess
Uncommitted Assets” has the meaning assigned to such term in Section 2.3(a)(ii).
“Exercise
Date” has the meaning assigned to such term in Section 4.1(b).
“Governmental
Authority” means any federal, state, municipal, national or other government, governmental department, commission, board,
bureau, court, agency or instrumentality or political subdivision thereof or any entity or officer exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to any government or any court, in each case whether associated
with a state of the United States, the United States, or a foreign entity or government.
“Indebtedness”
means and includes all Obligations that constitute “Indebtedness” within the meaning of the Committed Credit Agreement
or the Uncommitted Credit Agreement, as applicable.
“Insolvency
or Liquidation Proceeding” means:
(a) any
voluntary or involuntary case or proceeding under the Bankruptcy Code with respect to the Company;
(b) any
other voluntary or involuntary insolvency, reorganization or bankruptcy case or proceeding, or any receivership, liquidation, reorganization
or other similar case or proceeding with respect to the Company or with respect to a material portion of its assets;
(c) any
liquidation, dissolution, reorganization or winding up of the Company whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy; or
(d) any
assignment for the benefit of creditors or any other marshalling of assets and liabilities of the Company.
“Interim
Borrowing Base Certificate” has the respective meaning assigned to that term in the Committed Credit Agreement or the
Uncommitted Credit Agreement, as applicable.
“JPM Account”
means account number 9102535458 maintained by the Company with JPMorgan Chase Bank, N.A.
“Lenders”
means the Committed Lenders and the Uncommitted Lenders.
“Lien”
means any lien, mortgage, pledge, assignment, security interest, charge or encumbrance of any kind (including any agreement to
give any of the foregoing, any conditional sale or other title retention agreement, and any lease in the nature thereof) and any
option, trust, UCC financing statement or other preferential arrangement having the practical effect of any of the foregoing.
“New Committed
Credit Agreement Agent” has the meaning assigned to that term in Section 5.3(a).
“New Committed
Credit Agreement Debt Notice” has the meaning assigned to that term in Section 5.3(a).
“New Uncommitted
Credit Agreement Agent” has the meaning assigned to that term in Section 5.3(b).
“New Uncommitted
Credit Agreement Debt Notice” has the meaning assigned to that term in Section 5.3(b).
“Obligations”
means all Obligations (as defined in the Committed Credit Agreement or the Uncommitted Credit Agreement, as applicable) of the
Company from time to time owed to any agent or trustee, the Committed Credit Agreement Claimholders, the Uncommitted Credit Agreement
Claimholders or any of them or their respective Affiliates, in each case under the Committed Loan Documents, the Uncommitted Loan
Documents, whether for principal, interest, fees, expenses, indemnification or otherwise and all guarantees of any of the foregoing.
“Person”
means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, governmental
authority or other entity.
“Priority
Collateral” means, the Committed Credit Agreement Priority Collateral or the Uncommitted Priority Collateral, as applicable.
“Recovery”
has the meaning set forth in Section 6.5.
“Refinance”
means, in respect of any Indebtedness, to refinance, extend, renew, defease, amend, modify, supplement, restructure, replace, refund
or repay, or to issue other indebtedness, in exchange or replacement for, such Indebtedness in whole or in part. “Refinanced”
and “Refinancing” shall have correlative meanings.
“Required
Committed Lenders” means Committed Lenders having 51% of the aggregate amount of the Revolving Loan Commitments (as defined
in the Committed Credit Agreement) or, if the Revolving Loan Commitments have terminated, Committed Lenders holding at least 51%
of the aggregate amount of the Credit Exposure (as defined in the Committed Credit Agreement). If at the time of the calculation
of the Required Committed Lenders, (i) one or more Committed Lenders are also Uncommitted Lenders or (ii) one or more
Defaulting Banks (as defined in the Committed Credit Agreement) exists, the Credit Exposure and unused Revolving Loan Commitments
of each Committed Lender that is also an Uncommitted Lenders and each Defaulting Bank shall be excluded from both the numerator
and denominator of the calculation.
“Subsidiary”
means, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture or other
business entity of which more than 50% of the total voting power of shares of stock or other ownership interests entitled (without
regard to the occurrence of any contingency) to vote in the election of the Person or Persons (whether directors, managers, trustees
or other Persons performing similar functions) having the power to direct or cause the direction of the management and policies
thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of
that Person or a combination thereof.
“UCC”
means the Uniform Commercial Code (or any similar or equivalent legislation) as in effect in any applicable jurisdiction.
“Uncommitted
Collateral Agent” has the meaning assigned to that term in the Recitals to this Agreement.
“Uncommitted
Credit Agreement” has the meaning assigned to that term in the Recitals to this Agreement.
“Uncommitted
Credit Agreement Claimholders” means, at any relevant time, the holders of Uncommitted Credit Agreement Obligations at
that time, including the Uncommitted Lenders and the agents under the Uncommitted Loan Documents.
“Uncommitted
Credit Agreement Collateral Account” means the “Collateral Account” as defined in the Uncommitted Credit
Agreement.
“Uncommitted
Credit Agreement Priority Collateral” means, as of any day of determination, (a) all of the assets and property
of the Company set forth on the Borrowing Base Certificate (or Interim Borrowing Base Certificate) delivered pursuant to Section 8.01(d)
of the Uncommitted Credit Agreement as of such day (or, if such day is not a day on which a Borrowing Base Certificate is to be
delivered pursuant to Section 8.01(d) of the Uncommitted Credit Agreement (or not a day on which an Interim Borrowing Base
Certificate is delivered pursuant to Section 8.01(d) of the Uncommitted Credit Agreement), the Borrowing Base Certificate
(or Interim Borrowing Base Certificate) most recently delivered pursuant to Section 8.01(d) of the Uncommitted Credit Agreement),
as such assets and property may be adjusted pursuant to Section 2.3, provided that unless each of the Committed Lenders
shall have approved in writing of the opening by the Company of a deposit account (which may contain Uncommitted Credit Agreement
Priority Collateral) to service only accounts receivable which are Uncommitted Credit Agreement Priority Collateral, Uncommitted
Credit Agreement Priority Collateral shall not include deposit accounts or cash (other than the Uncommitted Credit Agreement Collateral
Account and cash in the Uncommitted Credit Agreement Collateral Account), (b) the Uncommitted Credit Agreement Collateral
Account and all funds therein and amounts credited thereto, (c) the Advance Letters of Credit issued under the Uncommitted
Credit Agreement and (d) all proceeds of the foregoing (except to the extent such proceeds are deposited in the JPM Account
or the Committed Credit Agreement Collateral Account) . If any new Borrowing Base Certificate (or Interim Borrowing Base Certificate)
delivered pursuant to the Uncommitted Credit Agreement shows a deficiency and if the reason for such deficiency is in whole or
in part that the Company has violated Section 8.27 of the Uncommitted Credit Agreement or because assets set forth on the
Borrowing Base Certificate (or Interim Borrowing Base Certificate) previously delivered became ineligible, then the improperly
removed assets or the ineligible assets shall continue to be Uncommitted Credit Agreement Priority Collateral until the next Borrowing
Base Certificate is delivered pursuant to the Uncommitted Credit Agreement showing an excess.
“Uncommitted
Credit Agreement Collateral Documents” means the Security Documents (as defined in the Uncommitted Credit Agreement)
and any other agreement, document or instrument pursuant to which a Lien is granted securing any Uncommitted Credit Agreement Obligations
or under which rights or remedies with respect to such Liens are governed and any Guaranty of any Uncommitted Credit Agreement
Obligations.
“Uncommitted
Credit Agreement Obligations” means, all Obligations outstanding under the Uncommitted Credit Agreement and the other
Uncommitted Loan Documents, including, without limitation, all interest accrued or accruing (or which would, absent commencement
of an Insolvency or Liquidation Proceeding, accrue) after commencement of an Insolvency or Liquidation Proceeding in accordance
with the rate specified in the relevant Uncommitted Loan Document whether or not the claim for such interest is allowed as a claim
in such Insolvency or Liquidation Proceeding.
“Uncommitted
Collateral” means “Collateral” as such term is defined in the Security Agreement (as
defined in the Uncommitted Credit Agreement).
“Uncommitted
Lenders” means the “Banks” under and as defined in the Uncommitted Loan Documents.
“Uncommitted
Loan Documents” means the Uncommitted Credit Agreement and the Basic Documents (as defined in the Uncommitted Credit
Agreement), and each of the other agreements, documents and instruments providing for or evidencing any other Uncommitted Credit
Agreement Obligation, and any other document or instrument executed or delivered at any time in connection with any Uncommitted
Credit Agreement Obligations, including any intercreditor or joinder agreement among holders of Uncommitted Credit Agreement Obligations,
to the extent such are effective at the relevant time, as each may be amended, restated, supplemented, modified, renewed or extended
from time to time in accordance with the provisions of this Agreement.
1.2 Terms
Generally.
The definitions of
terms in this Agreement 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:
(a) any
definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement,
instrument or other document as from time to time amended, restated, supplemented, modified, renewed or extended;
(b) any
reference herein to any Person shall be construed to include such Person’s permitted successors and assigns;
(c) the
words “herein,” “hereof’ and “hereunder,” and words of similar import, shall be construed to
refer to this Agreement in its entirety and not to any particular provision hereof;
(d) all
references herein to Sections shall be construed to refer to Sections of this Agreement; and
(e) the
words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any
and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.
SECTION 2. Lien Priorities.
2.1 Relative
Priorities.
Notwithstanding the
date, time, method, manner or order of grant, attachment or perfection of any Liens securing the Committed Credit Agreement Obligations
or the Uncommitted Credit Agreement Obligations granted on the Collateral and notwithstanding any provision of the UCC, or any
other applicable law or the Committed Loan Documents or the Uncommitted Loan Documents, or any other circumstance whatsoever, each
of the Committed Collateral Agent, on behalf of itself and the Committed Credit Agreement Claimholders, and the Uncommitted Collateral
Agent on behalf of the Uncommitted Credit Agreement Claimholders, hereby agrees that:
(a) any
Lien on the Committed Credit Agreement Priority Collateral securing any Committed Credit Agreement Obligations now or hereafter
held by or on behalf of the Committed Collateral Agent or any Committed Credit Agreement Claimholders or any agent or trustee therefor,
regardless of how acquired, whether by grant, possession, statute, operation of law, subrogation or otherwise, shall be senior
in all respects and prior to any Lien on the Committed Credit Agreement Priority Collateral securing any Uncommitted Credit Agreement
Obligations;
(b) any
Lien on the Committed Credit Agreement Priority Collateral securing any Uncommitted Credit Agreement Obligations now or hereafter
held by or on behalf of the Uncommitted Collateral Agent, any Uncommitted Credit Agreement Claimholders or any agent or trustee
therefor regardless of how acquired, whether by grant, possession, statute, operation of law, subrogation or otherwise, shall be
junior and subordinate in all respects to all Liens on the Committed Credit Agreement Priority Collateral securing any Committed
Credit Agreement Obligations. All Liens on the Committed Credit Agreement Priority Collateral securing any Committed Credit Agreement
Obligations shall be and remain senior in all respects and prior to all Liens on the Committed Credit Agreement Priority Collateral
securing any Uncommitted Credit Agreement Obligations for all purposes, whether or not such Liens securing any Committed Credit
Agreement Obligations are subordinated to any Lien securing any other obligation of the Company or any other Person;
(c) any
Lien on the Uncommitted Credit Agreement Priority Collateral securing any Uncommitted Credit Agreement Obligations now or hereafter
held by or on behalf of the Uncommitted Collateral Agent or any Uncommitted Credit Agreement Claimholders or any agent or trustee
therefor, regardless of how acquired, whether by grant, possession, statute, operation of law, subrogation or otherwise, shall
be senior in all respects and prior to any Lien on the Uncommitted Credit Agreement Priority Collateral securing any Committed
Credit Agreement Obligations;
(d) any
Lien on the Uncommitted Credit Agreement Priority Collateral securing any Committed Credit Agreement Obligations now or hereafter
held by or on behalf of the Committed Collateral Agent, any Committed Credit Agreement Claimholders or any agent or trustee therefor,
regardless of how acquired, whether by grant, possession, statute, operation of law, subrogation or otherwise, shall be junior
and subordinate in all respects to all Liens on the Uncommitted Credit Agreement Priority Collateral securing any Uncommitted Credit
Agreement Obligations. All Liens on the Uncommitted Credit Agreement Priority Collateral securing any Uncommitted Credit Agreement
Obligations shall be and remain senior in all respects and prior to all Liens on the Uncommitted Credit Agreement Priority Collateral
securing any Committed Credit Agreement Obligations for all purposes, whether or not such Liens securing any Uncommitted Credit
Agreement Obligations are subordinated to any Lien securing any other obligation of the Company or any other Person; and
(e) any
Lien on the Common Collateral securing any Committed Credit Agreement Obligations now or hereafter held by or on behalf of the
Committed Collateral Agent or any Committed Credit Agreement Claimholders or any agent or trustee therefor, shall be pari passu
in all respects with any Lien on the Common Collateral securing any Uncommitted Credit Agreement Obligations now or hereafter held
by or on behalf of the Uncommitted Collateral Agent or any Uncommitted Credit Agreement Claimholders or any agent or trustee therefor,
in each case regardless of how acquired, whether by grant, possession, statute, operation of law, subrogation or otherwise.
2.2 Prohibition
on Contesting Liens.
Each of the Uncommitted
Collateral Agent, for itself and on behalf of each Uncommitted Credit Agreement Claimholder, and the Committed Collateral Agent,
for itself and on behalf of each Committed Credit Agreement Claimholder, agrees that it will not (and hereby waives any right to)
contest or support any other Person in contesting, in any proceeding (including any Insolvency or Liquidation Proceeding), the
perfection, priority, validity or enforceability of a Lien held by or on behalf of any of the Committed Credit Agreement Claimholders
in the Committed Credit Agreement Priority Collateral and the Common Collateral or by or on behalf of any of the Uncommitted Credit
Agreement Claimholders or on its own behalf in the Uncommitted Credit Agreement Priority Collateral and the Common Collateral,
as the case may be, or the provisions of this Agreement; provided that nothing in this Agreement shall be construed to prevent
or impair the rights of the Committed Collateral Agent or any Committed Credit Agreement Claimholder or the Uncommitted Collateral
Agent or any Uncommitted Credit Agreement Claimholder to enforce this Agreement, including the provisions of this Agreement relating
to the priority of the Liens securing the Committed Credit Agreement Obligations and the priority of the Liens securing the Uncommitted
Credit Agreement Obligations as provided in Sections 2.1 and 3.1.
2.3 Reallocation
of Priority Collateral.
(a) (i)
In the event that (A) the Company shall have delivered to the Committed Agent and the Committed Lenders pursuant to the Committed
Credit Agreement a Borrowing Base Certificate (or an Interim Borrowing Base Certificate) that shows there exists a Borrowing Base
Deficiency under the Committed Credit Agreement and (B)(I) the corresponding Borrowing Base Certificate (or Interim Borrowing
Base Certificate) delivered by the Company to the Uncommitted Agent and the Uncommitted Lenders pursuant to the Uncommitted Credit
Agreement shows that there is a Borrowing Base Excess under the Uncommitted Credit Agreement and (II) no Event of Default
(as defined under either the Committed Credit Agreement or the Uncommitted Credit Agreement) (other than as a result of non-compliance
with Section 2.11(a) of the Committed Credit Agreement or the Uncommitted Credit Agreement, or Section 2.3(a)(ii), 2.3(a)(iv),
2.3(a)(v), 2.3(b)(ii) or 2.3(b)(iv) hereof) exists, the Committed Agent shall promptly (and in any event by 5:00 p.m. on the day
of receipt of such Borrowing Base Certificate (or Interim Borrowing Base Certificate), or, if the Committed Agent shall have received
such Borrowing Base Certificate (or Interim Borrowing Base Certificate) after 5:00 p.m. on such day or a day other than a
Business Day, by 12:00 p.m. on the next succeeding Business Day) provide the Committed Lenders, the Uncommitted Agent and
the Uncommitted Lenders with written notice (each a “Borrowing Base Discrepancy Notice”) of such Borrowing Base
Deficiency.
(ii) Concurrently
with the delivery of the Borrowing Base Certificates (or Interim Borrowing Base Certificates) described in clause (a)(i) above,
in the event that a Borrowing Base Deficiency shall exist under the Committed Credit Agreement, the Company shall prepay the Committed
Credit Agreement Obligations in accordance with Section 2.11(a) of the Committed Credit Agreement (including, without limitation,
from proceeds of borrowings under the Uncommitted Credit Agreement); provided that the Company shall not prepay the Committed
Credit Agreement Obligations from funds constituting Uncommitted Credit Agreement Priority Collateral in an amount in excess of
the Borrowing Base Excess under the Uncommitted Credit Agreement.
(iii) In
the event that the Company shall not have sufficient funds to eliminate such Borrowing Base Deficiency in accordance with clause (a)(ii)
above, not later than 5:00 p.m. New York City time on the Business Day immediately succeeding the day on which such Borrowing Base
Discrepancy Notice shall have been delivered, all of the Uncommitted Lenders shall identify assets (the “Excess Uncommitted
Assets”) included in the Uncommitted Credit Agreement Borrowing Base (as set forth the Borrowing Base Certificate (or
Interim Borrowing Base Certificate) delivered pursuant to the Uncommitted Credit Agreement) that satisfy the eligibility requirements
under the Committed Credit Agreement for inclusion in the Committed Credit Agreement Borrowing Base in an amount equal to the lesser
of (x) the Borrowing Base Deficiency under the Committed Credit Agreement and (y) the Borrowing Base Excess under the
Uncommitted Credit Agreement. Promptly upon the determination of the Excess Uncommitted Assets by all of the Uncommitted Lenders,
the Uncommitted Agent shall deliver to the Committed Agent, the Committed Lenders and the Uncommitted Lenders a list of the Excess
Uncommitted Assets.
(iv) In
the event that all of the Uncommitted Lenders shall fail to determine such Excess Uncommitted Assets by 5:00 p.m. New York City
time on the Business Day immediately succeeding the day on which such Borrowing Base Discrepancy Notice shall have been delivered,
the Uncommitted Agent shall provide notice thereof to the Company and the Company shall determine such Excess Uncommitted Assets
by no later than 12:00 p.m. New York City time on the Business Day immediately following the date of receipt of such notice from
the Uncommitted Agent, and shall deliver to the Committed Agent, the Uncommitted Agent, the Committed Lenders and the Uncommitted
Lenders a list of such Excess Uncommitted Assets.
(v) In
the event that the Company shall fail to determine such Excess Uncommitted Assets by 12:00 p.m. New York City time on the Business
Day immediately following the date of receipt of the notice delivered by the Uncommitted Agent pursuant to Section 2.3(a)(iv),
the Committed Agent shall provide notice thereof to the Committed Lenders and the Required Committed Lenders shall determine such
Excess Uncommitted Assets by no later than 5:00 p.m. New York City time on the Business Day that is three (3) Business Days after
the date of receipt of the notice delivered by the Uncommitted Agent pursuant to Section 2.3(a)(iv), and shall deliver to the Committed
Agent, the Committed Lenders, the Uncommitted Agent and the Uncommitted Lenders a list of such Excess Uncommitted Assets.
(vi) Provided
that no Event of Default (as defined under either the Committed Credit Agreement or the Uncommitted Credit Agreement) (other than
as a result of non-compliance with Section 2.11(a) of the Committed Credit Agreement or the Uncommitted Credit Agreement,
or Section 2.3(a)(ii), 2.3(a)(iv), 2.3(a)(v), 2.3(b)(ii) or 2.3(b)(iv) hereof) shall have occurred and be continuing, upon
determination of such Excess Uncommitted Assets under Section 2(a)(iii), 2(a)(iv) or 2(a)(v) hereof, without any action by
the Committed Agent, the Uncommitted Agent, the Committed Collateral Agent, the Uncommitted Collateral Agent, the Committed Lenders
or the Uncommitted Lenders, such Excess Uncommitted Assets automatically shall (A) be removed from the Uncommitted Credit
Agreement Borrowing Base, (B) no longer be deemed Uncommitted Credit Agreement Priority Collateral, (C) be included in
the Committed Credit Agreement Borrowing Base and (D) be deemed Committed Credit Agreement Priority Collateral.
(b) (i)
In the event that (A) the Company shall have delivered to the Uncommitted Agent and the Uncommitted Lenders pursuant to the Uncommitted
Credit Agreement a Borrowing Base Certificate (or an Interim Borrowing Base Certificate) that shows there exists a Borrowing Base
Deficiency under the Uncommitted Credit Agreement and (B)(I) the corresponding Borrowing Base Certificate (or Interim Borrowing
Base Certificate) delivered by the Company to the Committed Agent and the Committed Lenders pursuant to the Committed Credit Agreement
shows that there is a Borrowing Base Excess under the Committed Credit Agreement and (II) no Event of Default (as defined
under either the Committed Credit Agreement or the Uncommitted Credit Agreement) (other than as a result of non-compliance with
Section 2.11(a) of the Committed Credit Agreement or the Uncommitted Credit Agreement, or Section 2.3(a)(ii), 2.3(a)(iv),
2.3(a)(v), 2.3(b)(ii) or 2.3(b)(iv) hereof) exists, the Uncommitted Agent shall promptly (and in any event by 5:00 p.m. on the
day of receipt of such Borrowing Base Certificate (or Interim Borrowing Base Certificate), or, if the Uncommitted Agent shall have
received such Borrowing Base Certificate (or Interim Borrowing Base Certificate) after 5:00 p.m. on such day or a day other than
a Business Day, by 12:00 p.m. on the next succeeding Business Day) provide the Uncommitted Lenders, the Committed Agent and the
Committed Lenders with a Borrowing Base Discrepancy Notice of such Borrowing Base Deficiency.
(ii) Concurrently
with the delivery of the Borrowing Base Certificates (or Interim Borrowing Base Certificates) described in clause (b)(i) above,
in the event that a Borrowing Base Deficiency shall exist under the Uncommitted Credit Agreement, the Company shall prepay the
Uncommitted Credit Agreement Obligations in accordance with Section 2.11(a) of the Uncommitted Credit Agreement (including,
without limitation, from proceeds of borrowings under the Committed Credit Agreement); provided that the Company shall not
prepay the Uncommitted Credit Agreement Obligations from funds constituting Committed Credit Agreement Priority Collateral in an
amount in excess of the Borrowing Base Excess under the Committed Credit Agreement.
(iii) In
the event that the Company shall not have sufficient funds to eliminate such Borrowing Base Deficiency in accordance with clause (b)(ii)
above, not later than 5:00 p.m. New York City time on the Business Day immediately succeeding the day on which such Borrowing Base
Discrepancy Notice shall have been delivered, all of the Committed Lenders shall identify assets (the “Excess Committed
Assets”) included in the Committed Credit Agreement Borrowing Base (as set forth the Borrowing Base Certificate (or Interim
Borrowing Base Certificate) delivered pursuant to the Committed Credit Agreement) that satisfy the eligibility requirements under
the Uncommitted Credit Agreement for inclusion in the Uncommitted Credit Agreement Borrowing Base in an amount equal to the lesser
of (x) the Borrowing Base Deficiency under the Uncommitted Credit Agreement (after giving effect to the prepayment of the
Uncommitted Credit Agreement Obligations pursuant to clause (ii) above) and (y) the Borrowing Base Excess under the Committed
Credit Agreement, provided that such Excess Committed Assets shall not at any time include cash. Promptly upon the determination
of the Excess Committed Assets by all of the Committed Lenders, the Committed Agent shall deliver to the Uncommitted Agent, the
Uncommitted Lenders and the Committed Lenders a list of such Excess Committed Assets.
(iv) In
the event that all of the Committed Lenders shall fail to determine such Excess Committed Assets by 5:00 p.m. New York City time
on the Business Day immediately succeeding the day on which such Borrowing Base Discrepancy Notice shall have been delivered, the
Committed Agent shall provide notice thereof to the Company and the Company shall determine such Excess Committed Assets by no
later than 12:00 p.m. New York City time on the Business Day immediately following the date of receipt of such notice from the
Committed Agent, and shall deliver to the Committed Agent, the Uncommitted Agent, the Committed Lenders and the Uncommitted Lenders
a list of such Excess Committed Assets.
(v) Provided
that no Event of Default (as defined under either the Committed Credit Agreement or the Uncommitted Credit Agreement) (other than
as a result of non-compliance with Section 2.11(a) of the Committed Credit Agreement or the Uncommitted Credit Agreement,
or Section 2.3(a)(ii), 2.3(a)(iv), 2.3(a)(v), 2.3(b)(ii) or 2.3(b)(iv) hereof) shall have occurred and be continuing, upon
determination of such Excess Committed Assets, without any action by the Committed Agent, the Uncommitted Agent, the Committed
Collateral Agent, the Uncommitted Collateral Agent, the Committed Lenders or the Uncommitted Lenders, such Excess Committed Assets
automatically shall (A) be removed from the Committed Credit Agreement Borrowing Base, (B) no longer be deemed Committed
Credit Agreement Priority Collateral, (C) be included in the Uncommitted Credit Agreement Borrowing Base and (D) be deemed
Uncommitted Credit Agreement Priority Collateral.
(c) Each
of the Committed Agent and the Uncommitted Agent shall cause the Company to promptly deliver each Borrowing Base Certificate and
Interim Borrowing Base Certificate delivered pursuant to the Committed Credit Agreement or the Uncommitted Credit Agreement to
each Committed Lender and Uncommitted Lender.
SECTION 3. Enforcement.
3.1 Exercise
of Remedies - Uncommitted Collateral Agent.
(a) Until
the Discharge of Committed Credit Agreement Obligations has occurred, whether or not any Insolvency or Liquidation Proceeding has
been commenced by or against the Company, the Uncommitted Collateral Agent agrees on its own behalf and on behalf of the Uncommitted
Credit Agreement Claimholders that the Uncommitted Collateral Agent and the Uncommitted Credit Agreement Claimholders:
(1) are
prohibited from exercising, and will not exercise or seek to exercise, any rights or remedies with respect to any Committed Credit
Agreement Priority Collateral (including, in respect of the Committed Credit Agreement Priority Collateral, the exercise of any
right of setoff or any right under any lockbox agreement, account control agreement, landlord waiver or bailee’s letter or
similar agreement or arrangement to which the Uncommitted Collateral Agent or any Uncommitted Credit Agreement Claimholder is a
party) or institute any action or proceeding with respect to such rights or remedies (including any action of foreclosure), notwithstanding
that the Uncommitted Collateral Agent or any Uncommitted Credit Agreement Claimholder shall have declared the existence of any
Event of Default under and as defined in any Uncommitted Loan Document and/or demanded the repayment of all the principal amount
of any Uncommitted Credit Agreement Obligations;
(2) are
prohibited from contesting, protesting or objecting, and will not contest, protest or object, to any foreclosure proceeding or
action brought by the Committed Collateral Agent or any Committed Credit Agreement Claimholder in respect of the Committed Credit
Agreement Priority Collateral or any other exercise by the Committed Collateral Agent or any Committed Credit Agreement Claimholder
of any rights and remedies relating to the Committed Credit Agreement Priority Collateral under the Committed Loan Documents or
otherwise; and
(3) except
as may be permitted in Section 3.1(c), will not object to the forbearance by the Committed Collateral Agent or the Committed Credit
Agreement Claimholders from bringing or pursuing any foreclosure proceeding in respect of the Committed Credit Agreement Priority
Collateral or action or any other exercise of any rights or remedies relating to the Committed Credit Agreement Priority Collateral;
provided, that, the Liens granted
in Committed Credit Agreement Priority Collateral to secure the Uncommitted Credit Agreement Obligations shall attach to any proceeds
resulting from actions taken by the Committed Collateral Agent or any Committed Credit Agreement Claimholder in accordance with
this Agreement after application of such proceeds to the extent necessary to meet the requirements of a Discharge of Committed
Credit Agreement Obligations.
(b) Until
the Discharge of Committed Credit Agreement Obligations has occurred, whether or not any Insolvency or Liquidation Proceeding has
been commenced by or against the Company, the Committed Collateral Agent and the Committed Credit Agreement Claimholders shall
have the right to enforce rights, exercise remedies (including set-off and the right to credit bid their debt) and make determinations
regarding the release, disposition, or restrictions with respect to the Committed Credit Agreement Priority Collateral without
any consultation with or the consent of the Uncommitted Collateral Agent or any Uncommitted Credit Agreement Claimholder; provided
that the Lien securing the Uncommitted Credit Agreement Obligations shall remain on the proceeds of such Committed Credit Agreement
Priority Collateral released or disposed of subject to the relative priorities described in Section 2. In exercising rights and
remedies with respect to the Committed Credit Agreement Priority Collateral, the Committed Collateral Agent and the Committed Credit
Agreement Claimholders may enforce the provisions of the Committed Loan Documents and exercise remedies thereunder, all in such
order and in such manner as they may determine in the exercise of their sole discretion. Such exercise and enforcement shall include
the rights of an agent appointed by them to sell or otherwise dispose of Committed Credit Agreement Priority Collateral upon foreclosure,
to incur expenses in connection with such sale or disposition, and to exercise all the rights and remedies of a secured creditor
under the UCC and of a secured creditor under Bankruptcy Laws of any applicable jurisdiction.
(c) Notwithstanding
the foregoing, the Uncommitted Collateral Agent or to the extent permitted under the Uncommitted Loan Documents, the Uncommitted
Credit Agreement Claimholders may:
(1) file
a claim or statement of interest with respect to the Uncommitted Credit Agreement Obligations; provided that an Insolvency
or Liquidation Proceeding has been commenced by or against the Company;
(2) take
any action (not adverse to the priority status of the Liens on the Committed Credit Agreement Priority Collateral securing the
Committed Credit Agreement Obligations, or the rights of the Committed Collateral Agent or the Committed Credit Agreement Claimholders
to exercise remedies in respect thereof) in order to create, perfect, preserve or protect its Lien on the Collateral;
(3) file
any necessary responsive or defensive pleadings in opposition to any motion, claim, adversary proceeding or other pleading made
by any person objecting to or otherwise seeking the disallowance of the claims of the Uncommitted Credit Agreement Claimholders,
including any claims secured by the Collateral, if any, in each case in accordance with the terms of this Agreement;
(4) file
any pleadings, objections, motions or agreements which assert rights or interests available to unsecured creditors of the Company
arising under either any Insolvency or Liquidation Proceeding or applicable non-bankruptcy law, in each case not inconsistent with
the terms of this Agreement; and
(5) vote
on any plan of reorganization, file any proof of claim, make other filings and make any arguments and motions that are, in each
case, in accordance with the terms of this Agreement, with respect to the Uncommitted Credit Agreement Obligations and the Collateral.
The Uncommitted Collateral Agent, on behalf
of itself and the Uncommitted Credit Agreement Claimholders, agrees that it will not take or receive any Committed Credit Agreement
Priority Collateral or any proceeds of Committed Credit Agreement Priority Collateral in connection with the exercise of any right
or remedy (including set-off) with respect to any Collateral in its capacity as a creditor in violation of this Agreement. Without
limiting the generality of the foregoing, unless and until the Discharge of Committed Credit Agreement Obligations has occurred,
except as expressly provided in Section 6.3(c) and this Section 3.1(c), the sole right of the Uncommitted Collateral Agent and
the Uncommitted Credit Agreement Claimholders with respect to the Committed Credit Agreement Priority Collateral is to hold a Lien
on the Committed Credit Agreement Priority Collateral pursuant to the Uncommitted Credit Agreement Collateral Documents for the
period and to the extent granted therein and to receive a share of the proceeds thereof, if any, after the Discharge of Committed
Credit Agreement Obligations has occurred.
(d) Subject
to Section 6.3(c):
(1) the
Uncommitted Collateral Agent, for itself and on behalf of the Uncommitted Credit Agreement Claimholders, agrees that the Uncommitted
Collateral Agent and the Uncommitted Credit Agreement Claimholders will not take any action that would hinder any exercise of remedies
in respect of the Committed Credit Agreement Priority Collateral or the Common Collateral under the Committed Loan Documents
or is otherwise prohibited hereunder, including any sale, lease, exchange, transfer or other disposition of the Committed Credit
Agreement Priority Collateral or the Common Collateral, whether by foreclosure or otherwise;
(2) the
Uncommitted Collateral Agent, for itself and on behalf of the Uncommitted Credit Agreement Claimholders, hereby waives any and
all rights it or the Uncommitted Credit Agreement Claimholders may have as a junior lien creditor in respect of the Committed Credit
Agreement Priority Collateral or otherwise to object to the manner in which the Committed Collateral Agent or the Committed Credit
Agreement Claimholders seek to enforce or collect the Committed Credit Agreement Obligations or the Liens securing the Committed
Credit Agreement Obligations granted in any of the Committed Credit Agreement Priority Collateral undertaken in accordance with
this Agreement, regardless of whether any action or failure to act by or on behalf of the Committed Collateral Agent or Committed
Credit Agreement Claimholders is adverse to the interest of the Uncommitted Credit Agreement Claimholders; and
(3) the
Uncommitted Collateral Agent, for itself and on behalf of the Uncommitted Credit Agreement Claimholders, hereby acknowledges and
agrees that no covenant, agreement or restriction contained in the Uncommitted Credit Agreement Collateral Documents or any other
Uncommitted Loan Document (other than this Agreement) shall be deemed to restrict in any way the rights and remedies of the Committed
Collateral Agent or the Committed Credit Agreement Claimholders with respect to the Committed Credit Agreement Priority Collateral
or the Common Collateral as set forth in this Agreement and the Committed Loan Documents.
(e) Except
as otherwise specifically set forth in Sections 3.1(a) and 3.1(d), the Uncommitted Collateral Agent and the Uncommitted Credit
Agreement Claimholders may exercise rights and remedies as unsecured creditors against the Company in accordance with the terms
of the Uncommitted Loan Documents and applicable law; provided that in the event that the Uncommitted Collateral Agent or
any Uncommitted Credit Agreement Claimholder becomes a judgment Lien creditor in respect of Committed Credit Agreement Priority
Collateral as a result of its enforcement of its rights as an unsecured creditor with respect to the Uncommitted Credit Agreement
Obligations, such judgment Lien shall be subject to the terms of this Agreement for all purposes (including in relation to the
Committed Credit Agreement Obligations) as the other Liens securing the Uncommitted Credit Agreement Obligations are subject to
this Agreement.
(f) Nothing
in this Agreement shall prohibit the receipt by the Uncommitted Collateral Agent or any Uncommitted Credit Agreement Claimholder
of the required payments of interest, principal and other amounts owed in respect of the Uncommitted Credit Agreement Obligations
so long as such receipt is not the direct or indirect result of the exercise by the Uncommitted Collateral Agent or any Uncommitted
Credit Agreement Claimholder of rights or remedies as a secured creditor in respect of Committed Credit Agreement Priority Collateral
(including set-off) or enforcement in contravention of this Agreement of any Lien held by any of them in the Committed Credit Agreement
Priority Collateral; provided that if any Committed Credit Agreement Claimholder shall notify the Uncommitted Collateral
Agent that such funds are identifiable cash proceeds of Committed Credit Agreement Priority Collateral within 60 days of the receipt
of such funds by the Uncommitted Collateral Agent or such Uncommitted Credit Agreement Claimholder, as the case may be, the Uncommitted
Collateral Agent or such Uncommitted Credit Agreement Claimholder, as the case may be, shall promptly pay over such funds to the
Committed Collateral Agent. Nothing in this Agreement impairs or otherwise adversely affects any rights or remedies the Committed
Collateral Agent or the Committed Credit Agreement Claimholders may have with respect to the Committed Credit Agreement Priority
Collateral and the Common Collateral.
3.2 Exercise
of Remedies – Committed Collateral Agent
(a) Until
the Discharge of Uncommitted Credit Agreement Obligations has occurred, whether or not any Insolvency or Liquidation Proceeding
has been commenced by or against the Company, the Committed Collateral Agent agrees on its own behalf and on behalf of the Committed
Credit Agreement Claimholders that the Committed Collateral Agent and the Committed Credit Agreement Claimholders:
(1) are
prohibited from exercising, and will not exercise or seek to exercise, any rights or remedies with respect to any Uncommitted Credit
Agreement Priority Collateral (including, in respect of the Uncommitted Credit Agreement Priority Collateral, the exercise of any
right of setoff or any right under any lockbox agreement, account control agreement, landlord waiver or bailee’s letter or
similar agreement or arrangement to which the Committed Collateral Agent or any Committed Lender is a party) or institute any action
or proceeding with respect to such rights or remedies (including any action of foreclosure), notwithstanding that the Committed
Collateral Agent or any Committed Credit Agreement Claimholder shall have declared the existence of any Event of Default under
any Committed Loan Documents and demanded the repayment of all the principal amount of any Committed Credit Agreement Obligations;
(2) are
prohibited from contesting, protesting or objecting, and will not contest, protest or object, to any foreclosure proceeding or
action brought by the Uncommitted Collateral Agent or any Uncommitted Credit Agreement Claimholder in respect of the Uncommitted
Credit Agreement Priority Collateral or any other exercise by the Uncommitted Collateral Agent or any Uncommitted Credit Agreement
Claimholder of any rights and remedies relating to the Uncommitted Credit Agreement Priority Collateral under the Uncommitted Loan
Documents or otherwise; and
(3) except
as may be permitted in Section 3.2(c), will not object to the forbearance by the Uncommitted Collateral Agent or the Uncommitted
Credit Agreement Claimholders from bringing or pursuing any foreclosure proceeding or action in respect of the Uncommitted Credit
Agreement Priority Collateral or any other exercise of any rights or remedies relating to the Uncommitted Credit Agreement Priority
Collateral;
provided that the Liens granted
in Uncommitted Credit Agreement Priority Collateral to secure the Committed Credit Agreement Obligations shall attach to any proceeds
resulting from actions taken by the Uncommitted Collateral Agent or any Uncommitted Credit Agreement Claimholder in accordance
with this Agreement after application of such proceeds to the extent necessary to meet the requirements of a Discharge of Uncommitted
Credit Agreement Obligations.
(b) Until
the Discharge of Uncommitted Credit Agreement Obligations has occurred, whether or not any Insolvency or Liquidation Proceeding
has been commenced by or against the Company, the Uncommitted Collateral Agent and the Uncommitted Credit Agreement Claimholders
shall have the right to enforce rights, exercise remedies (including set-off and the right to credit bid their debt) and make determinations
regarding the release, disposition, or restrictions with respect to the Uncommitted Credit Agreement Priority Collateral without
any consultation with or the consent of the Committed Collateral Agent or any Committed Credit Agreement Claimholder; provided
that the Lien securing the Committed Credit Agreement Obligations shall remain on the proceeds of such Uncommitted Credit Agreement
Priority Collateral released or disposed of subject to the relative priorities described in Section 2. In exercising rights and
remedies with respect to the Uncommitted Credit Agreement Priority Collateral, the Uncommitted Collateral Agent and the Uncommitted
Credit Agreement Claimholders may enforce the provisions of the Uncommitted Loan Documents and exercise remedies thereunder, all
in such order and in such manner as they may determine in the exercise of their sole discretion. Such exercise and enforcement
shall include the rights of an agent appointed by them to sell or otherwise dispose of Uncommitted Credit Agreement Priority Collateral
upon foreclosure, to incur expenses in connection with such sale or disposition, and to exercise all the rights and remedies of
a secured creditor under the UCC and of a secured creditor under Bankruptcy Laws of any applicable jurisdiction.
(c) Notwithstanding
the foregoing, the Committed Collateral Agent for itself and on behalf of the Committed Credit Agreement Claimholders may:
(1) file
a claim or statement of interest with respect to the Committed Credit Agreement Obligations; provided that an Insolvency
or Liquidation Proceeding has been commenced by or against the Company;
(2) take
any action (not adverse to the priority status of the Liens on the Uncommitted Credit Agreement Priority Collateral securing the
Uncommitted Credit Agreement Obligations, or the rights of the Uncommitted Collateral Agent or the Uncommitted Credit Agreement
Claimholders to exercise remedies in respect thereof) in order to create, perfect, preserve or protect its Lien on the Collateral;
(3) file
any necessary responsive or defensive pleadings in opposition to any motion, claim, adversary proceeding or other pleading made
by any person objecting to or otherwise seeking the disallowance of the claims of the Committed Credit Agreement Claimholders,
including any claims secured by the Collateral, if any, in each case in accordance with the terms of this Agreement;
(4) file
any pleadings, objections, motions or agreements which assert rights or interests available to unsecured creditors of the Company
arising under either any Insolvency or Liquidation Proceeding or applicable non-bankruptcy law, in each case not inconsistent with
the terms of this Agreement; and
(5) vote
on any plan of reorganization, file any proof of claim, make other filings and make any arguments and motions that are, in each
case, in accordance with the terms of this Agreement, with respect to the Committed Credit Agreement Obligations and the Collateral.
The Committed Collateral Agent agrees that
it will not take or receive any Uncommitted Credit Agreement Priority Collateral or any proceeds of Uncommitted Credit Agreement
Priority Collateral in connection with the exercise of any right or remedy (including set-off) with respect to any Collateral in
its capacity as a creditor in violation of this Agreement. Without limiting the generality of the foregoing, unless and until the
Discharge of Uncommitted Credit Agreement Obligations has occurred, except as expressly provided in Section 6.3(c) and this
Section 3.2(c), the sole right of the Committed Collateral Agent and the Committed Credit Agreement Claimholders with respect
to the Uncommitted Credit Agreement Priority Collateral is to hold a Lien on the Uncommitted Credit Agreement Priority Collateral
pursuant to the Committed Credit Agreement Collateral Documents for the period and to the extent granted therein and to receive
a share of the proceeds thereof, if any, after the Discharge of Uncommitted Credit Agreement Obligations has occurred.
(d) Subject
to Section 6.3(c):
(1) the
Committed Collateral Agent agrees on its own behalf and on behalf of the Committed Credit Agreement Claimholders, that the Committed
Collateral Agent and the Committed Credit Agreement Claimholders will not take any action that would hinder any exercise of remedies
in respect of the Uncommitted Credit Agreement Priority Collateral or the Common Collateral under the Uncommitted Loan Documents
or is otherwise prohibited hereunder, including any sale, lease, exchange, transfer or other disposition of the Uncommitted Credit
Agreement Priority Collateral or the Common Collateral, whether by foreclosure or otherwise;
(2) the
Committed Collateral Agent on its own behalf and on behalf of the Committed Credit Agreement Claimholders, hereby waives any and
all rights it may have as a junior lien creditor in respect of the Uncommitted Credit Agreement Priority Collateral or otherwise
to object to the manner in which the Uncommitted Collateral Agent or the Uncommitted Credit Agreement Claimholders seek to enforce
or collect the Uncommitted Credit Agreement Obligations or the Liens securing the Uncommitted Credit Agreement Obligations granted
in any of the Uncommitted Credit Agreement Priority Collateral undertaken in accordance with this Agreement, regardless of whether
any action or failure to act by or on behalf of the Uncommitted Collateral Agent or Uncommitted Credit Agreement Claimholders is
adverse to the interest of the Uncommitted Credit Agreement Claimholders; and
(3) the
Committed Collateral Agent on its own behalf and on behalf of the Committed Credit Agreement Claimholders, hereby acknowledges
and agrees that no covenant, agreement or restriction contained in the Committed Credit Agreement Collateral Documents or any other
Committed Loan Document (other than this Agreement) shall be deemed to restrict in any way the rights and remedies of the Uncommitted
Collateral Agent or the Uncommitted Credit Agreement Claimholders with respect to the Uncommitted Credit Agreement Priority Collateral
or the Common Collateral as set forth in this Agreement and the Committed Loan Documents.
(e) Except
as otherwise specifically set forth in Sections 3.2(a) and 3.2(d), the Committed Collateral Agent and the Committed Credit
Agreement Claimholders may exercise rights and remedies as unsecured creditors against the Company in accordance with the terms
of the Committed Loan Documents and applicable law; provided that in the event that the Committed Collateral Agent or any
Committed Lender becomes a judgment Lien creditor in respect of Uncommitted Credit Agreement Priority Collateral as a result of
its enforcement of its rights as an unsecured creditor with respect to the Committed Credit Agreement Obligations, such judgment
Lien shall be subject to the terms of this Agreement for all purposes (including in relation to the Uncommitted Credit Agreement
Obligations) as the other Liens securing the Committed Credit Agreement Obligations are subject to this Agreement.
(f) Nothing
in this Agreement shall prohibit the receipt by the Committed Collateral Agent or any Committed Credit Agreement Claimholder of
the required payments of interest, principal and other amounts owed in respect of the Committed Credit Agreement Obligations so
long as such receipt is not the direct or indirect result of the exercise by the Committed Collateral Agent or any Committed Credit
Agreement Claimholders of rights or remedies as a secured creditor in respect of Uncommitted Credit Agreement Priority Collateral
(including set-off) or enforcement in contravention of this Agreement of any Lien held by any of them in the Uncommitted Credit
Agreement Priority Collateral; provided that if any Uncommitted Credit Agreement Claimholder shall notify the Committed
Collateral Agent that such funds are identifiable cash proceeds of Uncommitted Credit Agreement Priority Collateral within 60 days
of the receipt of such funds by the Committed Collateral Agent or such Committed Credit Agreement Claimholder, as the case may
be, the Committed Collateral Agent or such Committed Credit Agreement Claimholder, as the case may be, shall promptly pay over
such funds to the Uncommitted Collateral Agent. Nothing in this Agreement impairs or otherwise adversely affects any rights or
remedies the Uncommitted Collateral Agent or the Uncommitted Credit Agreement Claimholders may have with respect to the Uncommitted
Credit Agreement Priority Collateral and the Common Collateral
3.3 Exercise
of Remedies – Common Collateral.
(a) Until
(i) the Discharge of Committed Credit Agreement Obligations has occurred, whether or not any Insolvency or Liquidation Proceeding
has been commenced by or against the Company, the Committed Collateral Agent, for itself and on behalf of the Committed Credit
Agreement Claimholders may, and (ii) the Discharge of Uncommitted Credit Agreement Obligations has occurred, whether or not any
Insolvency or Liquidation Proceeding has been commenced by or against the Company, the Uncommitted Collateral Agent, for itself
and on behalf of the Uncommitted Credit Agreement Claimholders, may, exercise or seek to exercise, any rights or remedies with
respect to any Common Collateral (including, in respect of exercise of any right under any landlord waiver or bailee’s letter
or similar agreement or arrangement to which it is a party) and institute any action or proceeding with respect to such rights
or remedies (including any action of foreclosure), provided that (A) without limiting Section 5.2 in any way,
the Committed Collateral Agent and the Committed Credit Agreement Claimholders may not take any action adverse to the rights of
the Uncommitted Collateral Agent or the Uncommitted Credit Agreement Claimholders, (B) without limiting Section 5.2 in
any way, the Uncommitted Collateral Agent and the Uncommitted Credit Agreement Claimholders may not take any action adverse to
the rights of the Committed Collateral Agent or the Committed Credit Agreement Claimholders, (C) the Liens granted in Common
Collateral to secure the Committed Credit Agreement Obligations shall attach to any proceeds resulting from actions taken by the
Uncommitted Collateral Agent or any Uncommitted Credit Agreement Claimholder in respect of the Common Collateral in accordance
with this Agreement, (D) the Liens granted in Common Collateral to secure the Uncommitted Credit Agreement Obligations shall
attach to any proceeds resulting from actions taken by the Committed Collateral Agent or any Committed Credit Agreement Claimholder
in respect of the Common Collateral in accordance with this Agreement and (E) the proceeds of any such exercise of rights
or remedies with respect to the Common Collateral shall be applied in accordance with Section 4.
(b) In
exercising rights and remedies with respect to the Common Collateral, the Committed Collateral Agent and the Committed Credit Agreement
Claimholders may enforce the provisions of the Committed Loan Documents and exercise remedies thereunder, all in such order and
in such manner as they may determine in the exercise of their sole discretion and the Uncommitted Collateral Agent and the Uncommitted
Credit Agreement Claimholders may enforce the provisions of the Uncommitted Loan Documents and exercise remedies thereunder, all
in such order and in such manner as they may determine in the exercise of their sole discretion. Such exercise and enforcement
shall include the rights of an agent appointed by them to sell or otherwise dispose of Common Collateral upon foreclosure, to incur
expenses in connection with such sale or disposition, and to exercise all the rights and remedies of a secured creditor under the
UCC and of a secured creditor under Bankruptcy Laws of any applicable jurisdiction.
(c) The
Committed Collateral Agent and the Committed Credit Agreement Claimholders shall not contest, protest or object to any foreclosure
proceeding or action brought by the Uncommitted Collateral Agent or any Uncommitted Credit Agreement Claimholder in respect of
the Common Collateral or any other exercise by the Uncommitted Collateral Agent or any Uncommitted Credit Agreement Claimholder
of any rights and remedies relating to the Common Collateral under the Uncommitted Loan Documents or otherwise.
(d) The
Uncommitted Collateral Agent and the Uncommitted Credit Agreement Claimholders shall not contest, protest or object to any foreclosure
proceeding or action brought by the Committed Collateral Agent or any Committed Credit Agreement Claimholder in respect of the
Common Collateral or any other exercise by the Committed Collateral Agent or any Committed Credit Agreement Claimholder of any
rights and remedies relating to the Common Collateral under the Committed Loan Documents or otherwise.
(e) Each
of the Committed Collateral Agent and the Committed Credit Agreement Claimholders and the Uncommitted Collateral Agent and the
Uncommitted Credit Agreement Claimholders shall cooperate in the exercise of its remedies in respect of the Common Collateral.
SECTION 4. Payments.
4.1 Application
of Proceeds.
(a) So
long as the Discharge of Committed Credit Agreement Obligations has not occurred, whether or not any Insolvency or Liquidation
Proceeding has been commenced by or against the Company, Committed Credit Agreement Priority Collateral (including, without limitation,
the amounts held in the JPM Account, but subject to Section 4.1(b)) and proceeds thereof received in connection with the sale or
other disposition of, or collection on, such Committed Credit Agreement Priority Collateral upon the exercise of remedies by the
Committed Collateral Agent or Committed Credit Agreement Claimholders or otherwise after the occurrence of an Event of Default
(as defined in the Committed Credit Agreement), shall be applied by the Committed Collateral Agent to the Committed Credit Agreement
Obligations in such order as specified in the relevant Committed Loan Documents and any portion of such proceeds received by the
Uncommitted Collateral Agent or any Uncommitted Credit Agreement Claimholder shall be promptly paid over to the Committed Collateral
Agent. Upon the Discharge of Committed Credit Agreement Obligations, the Committed Collateral Agent shall deliver to the Uncommitted
Collateral Agent any Committed Credit Agreement Priority Collateral and any proceeds of Committed Credit Agreement Priority Collateral
held by it in the same form as received, with any necessary endorsements or as a court of competent jurisdiction may otherwise
direct to be applied by the Uncommitted Collateral Agent to the Uncommitted Credit Agreement Obligations in such order as specified
in the relevant Uncommitted Loan Documents.
(b) Notwithstanding
anything to the contrary set forth in Section 4.1(a), from and after the date on which the Committed Collateral Agent or the Committed
Credit Agreement Claimholders shall have commenced the exercise of remedies under the Committed Loan Documents (such date, the
“Exercise Date”), any proceeds of Uncommitted Credit Agreement Priority Collateral that are specifically identifiable
as proceeds of Uncommitted Credit Agreement Priority Collateral and are deposited on or after the Exercise Date in the JPM Account
shall, upon the request of the Uncommitted Collateral Agent delivered within 60 days after such deposit, be promptly paid over
to the Uncommitted Collateral Agent for itself and for the benefit of the Uncommitted Credit Agreement Claimholders in the same
form as received, with any necessary endorsements or as a court of competent jurisdiction may otherwise direct, for application
by the Uncommitted Collateral Agent to the Uncommitted Credit Agreement Obligations in such order as specified in the relevant
Uncommitted Loan Documents.
(c) So
long as the Discharge of Uncommitted Credit Agreement Obligations has not occurred, whether or not any Insolvency or Liquidation
Proceeding has been commenced by or against the Company, Uncommitted Credit Agreement Priority Collateral and proceeds thereof
received in connection with the sale or other disposition of, or collection on, such Uncommitted Credit Agreement Priority Collateral
upon the exercise of remedies by the Uncommitted Collateral Agent or Uncommitted Credit Agreement Claimholders or otherwise after
the occurrence of an Event of Default (as defined in the Uncommitted Credit Agreement), shall be applied by the Uncommitted Collateral
Agent to the Uncommitted Credit Agreement Obligations in such order as specified in the relevant Uncommitted Loan Documents and
any portion of such proceeds received by the Committed Collateral Agent or any Committed Credit Agreement Claimholder shall be
promptly paid over to the Uncommitted Collateral Agent. Upon the Discharge of Uncommitted Credit Agreement Obligations, the Uncommitted
Collateral Agent shall deliver to the Committed Collateral Agent any Uncommitted Credit Agreement Priority Collateral and any proceeds
of Uncommitted Credit Agreement Priority Collateral held by it in the same form as received, with any necessary endorsements or
as a court of competent jurisdiction may otherwise direct to be applied by the Committed Collateral Agent to the Committed Credit
Agreement Obligations in such order as specified in the Committed Loan Documents.
(d) Common
Collateral and proceeds thereof received in connection with the sale or other disposition of, or collection on, such Common Collateral
upon the exercise of remedies by the Committed Collateral Agent, Committed Credit Agreement Claimholders, the Uncommitted Collateral
Agent or Uncommitted Credit Agreement Claimholders, and payments received by the Committed Collateral Agent, Committed Credit Agreement
Claimholders, the Uncommitted Collateral Agent or Uncommitted Credit Agreement Claimholders under any Guarantee (as defined in
the Committed Credit Agreement) of the Obligations and payment after an Event of Default under the Committed Agreement or the Uncommitted
Credit Agreement shall be applied (i) by the Committed Collateral Agent to the Committed Credit Agreement Obligations in such
order as specified in the relevant Committed Loan Documents and (ii) by the Uncommitted Collateral Agent to the Uncommitted
Credit Agreement Obligations in such order as specified in the relevant Uncommitted Loan Documents, pro rata based on the outstanding
principal amount of Committed Credit Agreement Obligations and Uncommitted Credit Agreement Obligations as of the time of receipt
of such payments or proceeds.
4.2 Payments
Over in Violation of Agreement.
(a) So
long as the Discharge of Committed Credit Agreement Obligations has not occurred, whether or not any Insolvency or Liquidation
Proceeding has been commenced by or against the Company, any Committed Credit Agreement Priority Collateral or Common Collateral
or proceeds thereof received by the Uncommitted Collateral Agent or any Uncommitted Credit Agreement Claimholders in connection
with the exercise of any right or remedy (including set-off) relating to the Committed Credit Agreement Priority Collateral or
the Common Collateral in contravention of this Agreement shall, upon the request of the Committed Collateral Agent delivered within
60 days after such receipt, be segregated and held in trust and forthwith paid over to the Committed Collateral Agent for the benefit
of the Committed Credit Agreement Claimholders in the same form as received, with any necessary endorsements or as a court of competent
jurisdiction may otherwise direct. The Committed Collateral Agent is hereby authorized to make any such endorsements as agent for
the Uncommitted Collateral Agent or any such Uncommitted Credit Agreement Claimholders. This authorization is coupled with an interest
and is irrevocable until the Discharge of Committed Credit Agreement Obligations.
(b) So
long as the Discharge of Uncommitted Credit Agreement Obligations has not occurred, whether or not any Insolvency or Liquidation
Proceeding has been commenced by or against the Company, any Uncommitted Credit Agreement Priority Collateral or Common Collateral
or proceeds thereof received by the Committed Collateral Agent or any Committed Credit Agreement Claimholders in connection with
the exercise of any right or remedy (including set-off) relating to the Uncommitted Credit Agreement Priority Collateral or the
Common Collateral in contravention of this Agreement shall, upon the request of the Uncommitted Collateral Agent delivered within
60 days after such receipt, be segregated and held in trust and forthwith paid over to the Uncommitted Collateral Agent for itself
and for the benefit of the Uncommitted Credit Agreement Claimholders in the same form as received, with any necessary endorsements
or as a court of competent jurisdiction may otherwise direct. The Uncommitted Collateral Agent is hereby authorized to make any
such endorsements as agent for the Committed Collateral Agent or any such Committed Credit Agreement Claimholders. This authorization
is coupled with an interest and is irrevocable until the Discharge of Uncommitted Credit Agreement Obligations.
SECTION 5. Other Agreements.
5.1 Insurance.
Unless and until the
Discharge of Committed Credit Agreement Obligations has occurred, subject to the terms of the Committed Loan Documents and the
Uncommitted Loan Documents and the rights of the Company thereunder, as between the Committed Collateral Agent (for itself and
the Committed Credit Agreement Claimholders) and the Uncommitted Collateral Agent (for itself and the Uncommitted Credit Agreement
Claimholders), the Committed Collateral Agent shall have the sole and exclusive right to adjust settlement for any insurance policy
to the extent covering the Collateral in the event of any loss thereunder and to approve any award granted in any condemnation
or similar proceeding (or any deed in lieu of condemnation) affecting the Collateral. Unless and until the Discharge of Committed
Credit Agreement Obligations has occurred, all proceeds of any such policy and any such award (or any payments with respect to
a deed in lieu of condemnation), if in respect to the Collateral and to the extent required by the Committed Loan Documents or
the Uncommitted Loan Documents to be paid to the Committed Collateral Agent or the Uncommitted Collateral Agent, shall be paid
to the Committed Collateral Agent to be applied pro rata based on the outstanding principal amount of Committed Credit Agreement
Obligations and Uncommitted Credit Agreement Obligations as of the time of receipt of such proceeds to the Committed Collateral
Agent for the benefit of the Committed Credit Agreement Claimholders and to the Uncommitted Collateral Agent for the benefit of
the Uncommitted Credit Agreement Claimholders and thereafter, to the extent no Committed Credit Agreement Obligations and no Uncommitted
Credit Agreement Obligations are outstanding, to the owner of the subject property, such other Person as may be entitled thereto
or as a court of competent jurisdiction may otherwise direct. Until the Discharge of Committed Credit Agreement Obligations and
the Discharge of Uncommitted Credit Agreement Obligations have occurred, if the Committed Collateral Agent or the Uncommitted Collateral
Agent shall, at any time, receive any proceeds of any such insurance policy or any such award or payment in contravention of this
Section 5.1, it shall segregate and hold in trust and forthwith pay such proceeds over with the terms of Section 4.2.
5.2 Amendments
to Committed Loan Documents and Uncommitted Loan Documents.
(a) The
Committed Loan Documents may be amended, supplemented or otherwise modified in accordance with their terms and the Committed Credit
Agreement may be Refinanced, in each case, without the consent of the Uncommitted Collateral Agent or the Uncommitted Credit Agreement
Claimholders, all without affecting the lien subordination or other provisions of this Agreement, provided that without
the prior written consent of the Uncommitted Collateral Agent, no Committed Loan Document may be amended, supplemented or otherwise
modified or entered into to the extent such amendment, supplement or modification, or the terms of any new Committed Loan Document,
would (i) contravene the provisions of this Agreement or (ii) amend Section 8.01(d) or 8.01(h) of the Committed
Credit Agreement. The Committed Agent shall provide to the Uncommitted Agent (i) not less than five (5) Business Days
prior written notice of any such amendment, supplement or other modification and (ii) promptly after the execution and delivery
of any such amendment, supplement or other modification, a true, correct and complete copy of such amendment, supplement or other
modification.
(b) Subject
to Section 5.2(b), the Uncommitted Loan Documents may be amended, supplemented or otherwise modified in accordance with their
terms and the Uncommitted Credit Agreement may be Refinanced, in each case, without the consent of the Committed Collateral Agent
or the Committed Credit Agreement Claimholders, all without affecting the lien subordination or other provisions of this Agreement,
provided that without the prior written consent of the Committed Collateral Agent, no Uncommitted Loan Document may be amended,
supplemented or otherwise modified or entered into to the extent such amendment, supplement or modification, or the terms of any
new Uncommitted Loan Document, would (i) contravene the provisions of this Agreement or (ii) amend Section 8.01(d)
or 8.01(h) of the Uncommitted Credit Agreement. The Uncommitted Agent shall provide to the Committed Agent (i) not less than
five (5) Business Days prior written notice of any such amendment, supplement or other modification and (ii) promptly
after the execution and delivery of any such amendment, supplement or other modification, a true, correct and complete copy of
such amendment, supplement or other modification.
5.3 When
Discharge of Committed Credit Agreement Obligations or Discharge of Uncommitted Credit Agreement Obligations Deemed to Not Have
Occurred.
(a) If
concurrently with the Discharge of Committed Credit Agreement Obligations, the Company thereafter enters into any Refinancing of
any Committed Loan Document evidencing a Committed Credit Agreement Obligation, then such Discharge of Committed Credit Agreement
Obligations shall automatically be deemed not to have occurred for all purposes of this Agreement (other than with respect to any
actions taken as a result of the occurrence of such first Discharge of Committed Credit Agreement Obligations), and, from and after
the date on which the New Committed Credit Agreement Debt Notice is delivered to the Uncommitted Collateral Agent in accordance
with the next sentence, the obligations under such Refinancing of the Committed Loan Document shall automatically be treated as
Committed Credit Agreement Obligations for all purposes of this Agreement, including for purposes of the Lien priorities and rights
in respect of Collateral set forth herein, and the Committed Collateral Agent under such Committed Loan Documents shall be the
Committed Collateral Agent for all purposes of this Agreement. Upon receipt of a notice (the “New Committed Credit Agreement
Debt Notice”) stating that the Company has entered into a new Committed Loan Document (which notice shall include the
identity of the new Committed Collateral Agent, such agent, the “New Committed Credit Agreement Agent”), the
Uncommitted Collateral Agent agrees that the New Committed Credit Agreement Agent shall be a party hereto with all rights of the
Committed Collateral Agent hereunder. The New Committed Credit Agreement Agent shall agree in a writing addressed to the Uncommitted
Collateral Agent to be bound by the terms of this Agreement.
(b) If
concurrently with the Discharge of Uncommitted Credit Agreement Obligations, the Company thereafter enters into any Refinancing
of any Uncommitted Loan Document evidencing an Uncommitted Credit Agreement Obligation, then such Discharge of Uncommitted Credit
Agreement Obligations shall automatically be deemed not to have occurred for all purposes of this Agreement (other than with respect
to any actions taken as a result of the occurrence of such first Discharge of Uncommitted Credit Agreement Obligations), and, from
and after the date on which the New Uncommitted Credit Agreement Debt Notice is delivered to the Committed Collateral Agent in
accordance with the next sentence, the obligations under such Refinancing of the Uncommitted Loan Document shall automatically
be treated as Uncommitted Credit Agreement Obligations for all purposes of this Agreement, including for purposes of the Lien priorities
and rights in respect of Collateral set forth herein, and the Uncommitted Collateral Agent under such Uncommitted Loan Documents
shall be the Uncommitted Collateral Agent for all purposes of this Agreement. Upon receipt of a notice (the “New Uncommitted
Credit Agreement Debt Notice”) stating that the Company has entered into a new Uncommitted Loan Document (which notice
shall include the identity of the new Uncommitted Collateral Agent, such agent, the “New Uncommitted Credit Agreement
Agent”), the Committed Collateral Agent agrees that the New Uncommitted Credit Agreement Agent shall be a party hereto
with all rights of the Uncommitted Collateral Agent hereunder. The New Uncommitted Credit Agreement Agent shall agree in a writing
addressed to the Committed Collateral Agent to be bound by the terms of this Agreement.
5.4 Notice
of Default.
(a) The
Committed Collateral Agent hereby agrees that it shall deliver to the Uncommitted Collateral Agent prompt written notice of the
occurrence and continuance of any Event of Default under and as defined in the Committed Loan Documents of which it has actual
knowledge.
(b) The
Uncommitted Collateral Agent hereby agrees that it shall deliver prompt written notice to the Committed Collateral Agent of the
occurrence and continuance of any Event of Default under and as defined in the Uncommitted Loan Documents or any demand for payment
or cash collateral thereunder of which it has actual knowledge.
SECTION 6. Insolvency or Liquidation
Proceedings.
6.1 Finance
and Sale Issues.
Until the termination
of this Agreement in accordance with Section 8.2, if the Company shall be subject to any Insolvency or Liquidation Proceeding and
the Committed Collateral Agent or Uncommitted Collateral Agent shall desire to permit the use of “Cash Collateral”
(as such term is defined in Section 363(a) of the Bankruptcy Code) in respect of such Person’s Priority Collateral, or to
permit the Company to obtain financing, whether from the Committed Collateral Agent and the Committed Credit Agreement Claimholders,
or the Uncommitted Collateral Agent and the Uncommitted Credit Agreement Claimholders, under Section 364 of the Bankruptcy Code
or any similar Bankruptcy Law (the “DIP Financing”); then each of the Committed Collateral Agent (on behalf
of itself and the Committed Credit Agreement Claimholders) and the Uncommitted Collateral Agent (on behalf of itself and the Uncommitted
Credit Agreement Claimholders) agrees that it will raise no objection to such Cash Collateral use or DIP Financing so long as in
respect of such Cash Collateral use or DIP Financing: (a) each of the Committed Collateral Agent and the Uncommitted Collateral
Agent (as applicable) retains the right to object to any ancillary agreements or arrangements regarding the Cash Collateral use
or the DIP Financing that are materially prejudicial to its interests, (b) each of the Uncommitted Collateral Agent and the Committed
Collateral Agent retains a Lien on the Collateral (including proceeds thereof arising after the commencement of such Insolvency
or Liquidation Proceeding) which was subject to its prior or equal Lien hereunder with the same priority as existed prior to the
commencement of such Insolvency or Liquidation Proceeding in accordance with the terms of this Agreement, (c) to the extent that
the Committed Collateral Agent and the Committed Credit Agreement Claimholders on the one hand or the Uncommitted Collateral Agent
and the Uncommitted Credit Agreement Claimholders on the other hand, do not provide DIP Financing, the Committed Collateral Agent
or the Uncommitted Collateral Agent, as applicable, receives a replacement Lien on post-petition assets to the same extent granted
in connection with such DIP Financing with the same priority as existed prior to the commencement of such Insolvency or Liquidation
Proceeding in accordance with the terms of this Agreement, and (d) the DIP Financing (i) does not compel the Company to seek confirmation
of a specific plan of reorganization for which all or substantially all of the material terms are set forth in the DIP Financing
documentation or a related document or (ii) the DIP Financing documentation or Cash Collateral order does not expressly require
the liquidation of the Collateral prior to a default under the DIP Financing documentation or Cash Collateral order.
6.2 Relief
from the Automatic Stay.
(a) Until
the Discharge of Committed Credit Agreement Obligations has occurred, the Uncommitted Collateral Agent, on behalf of itself and
the Uncommitted Credit Agreement Claimholders, agrees that none of them shall seek (or support any other Person seeking) relief
from the automatic stay or any other stay in any Insolvency or Liquidation Proceeding in respect of the Committed Credit Agreement
Priority Collateral, without the prior written consent of the Committed Collateral Agent.
(b) Until
the Discharge of Uncommitted Credit Agreement Obligations has occurred, the Committed Collateral Agent on behalf of itself and
the Committed Credit Agreement Claimholders agrees that it shall not seek (or support any other Person seeking) relief from the
automatic stay or any other stay in any Insolvency or Liquidation Proceeding in respect of the Uncommitted Credit Agreement Priority
Collateral, without the prior written consent of the Uncommitted Collateral Agent.
6.3 Adequate
Protection.
(a) The
Uncommitted Collateral Agent, on behalf of itself and the Uncommitted Credit Agreement Claimholders, agrees that none of them shall
contest (or support any other Person contesting):
(1) any
request by the Committed Collateral Agent or the Committed Credit Agreement Claimholders for adequate protection; or
(2) any
objection by the Committed Collateral Agent or the Committed Credit Agreement Claimholders to any motion, relief, action or proceeding
based on the Committed Collateral Agent or the Committed Credit Agreement Claimholders claiming a lack of adequate protection.
(b) The
Committed Collateral Agent agrees that it shall not contest (or support any other Person contesting):
(1) any
request by the Uncommitted Collateral Agent or the Uncommitted Credit Agreement Claimholders for adequate protection; or
(2) any
objection by the Uncommitted Collateral Agent or the Uncommitted Credit Agreement Claimholders to any motion, relief, action or
proceeding based on the Uncommitted Collateral Agent or the Uncommitted Credit Agreement Claimholders claiming a lack of adequate
protection.
(c) Notwithstanding
the foregoing provisions in this Section 6.3, in any Insolvency or Liquidation Proceeding:
(1) if
the Committed Collateral Agent or the Committed Credit Agreement Claimholders (or any subset thereof) are granted adequate protection
in the form of additional collateral (acquired by the Company post-petition) in connection with any Cash Collateral use in respect
of the Committed Credit Agreement Priority Collateral or DIP Financing, then the Uncommitted Collateral Agent, on behalf of itself
or any of the Uncommitted Credit Agreement Claimholders, may seek or request adequate protection in the form of a Lien on such
additional collateral, which Lien will be subordinated to the Liens securing the Committed Credit Agreement Obligations and such
Cash Collateral use or DIP Financing (and all Committed Credit Agreement Obligations relating thereto) on the same basis as the
other Liens on Committed Credit Agreement Priority Collateral that secure the Uncommitted Credit Agreement Obligations are so subordinated
to the Liens on Committed Credit Agreement Priority Collateral that secure Committed Credit Agreement Obligations under this Agreement;
and
(2) if
the Uncommitted Collateral Agent or the Uncommitted Credit Agreement Claimholders (or any subset thereof) are granted adequate
protection in the form of additional collateral (acquired by the Company post-petition) in connection with any Cash Collateral
use in respect of the Uncommitted Credit Agreement Priority Collateral or DIP Financing, then the Committed Collateral Agent, on
behalf of itself or any of the Committed Credit Agreement Claimholders, may seek or request adequate protection in the form of
a Lien on such additional collateral, which Lien will be subordinated to the Liens securing the Uncommitted Credit Agreement Obligations
and such Cash Collateral use or DIP Financing (and all Uncommitted Credit Agreement Obligations relating thereto) on the same basis
as the other Liens on Uncommitted Credit Agreement Priority Collateral that secure the Committed Credit Agreement Obligations are
so subordinated to the Liens on Uncommitted Credit Agreement Priority Collateral that secure Uncommitted Credit Agreement Obligations
under this Agreement.
6.4 No
Waiver.
Subject to Sections 3.1(a),
3.1(d), 3.2(a) and 3.2(d), nothing contained herein shall prohibit or in any way limit the Committed Collateral Agent, any Committed
Credit Agreement Claimholder, the Uncommitted Collateral Agent or any Uncommitted Credit Agreement Claimholder from objecting in
any Insolvency or Liquidation Proceeding or otherwise to any action taken by the Committed Collateral Agent, any Committed Credit
Agreement Claimholder, the Uncommitted Collateral Agent or any of the Uncommitted Credit Agreement Claimholders, including the
seeking by the Committed Collateral Agent, any Committed Credit Agreement Claimholder, Uncommitted Collateral Agent or any Uncommitted
Credit Agreement Claimholders of adequate protection or the asserting by the Committed Collateral Agent, any Committed Credit Agreement
Claimholder, Uncommitted Collateral Agent or any Uncommitted Credit Agreement Claimholders of any of its rights and remedies under
the Committed Loan Document, Uncommitted Loan Documents or otherwise.
6.5 Avoidance
Issues.
If any Committed Credit
Agreement Claimholder or any Uncommitted Credit Agreement Claimholder is required in any Insolvency or Liquidation Proceeding or
otherwise to turn over or otherwise pay to the estate of the Company any amount paid in respect of Committed Credit Agreement Obligations
or Uncommitted Credit Agreement Obligations, as applicable (a “Recovery”), then such Committed Credit Agreement
Claimholders or Uncommitted Credit Agreement Claimholders, as applicable, shall be entitled to a reinstatement of Committed Credit
Agreement Obligations or Uncommitted Credit Agreement Obligations, as applicable, to the extent of all such recovered amounts.
If this Agreement shall have been terminated prior to such Recovery, this Agreement shall be reinstated in full force and effect,
and such prior termination shall not diminish, release, discharge, impair or otherwise affect the obligations of the parties hereto
from such date of reinstatement.
6.6 Reorganization
Securities.
If, in any Insolvency
or Liquidation Proceeding, debt obligations of the reorganized debtor secured by Liens upon any property of the reorganized debtor
are distributed pursuant to a plan of reorganization or similar dispositive restructuring plan, both on account of Committed Credit
Agreement Obligations and on account of Uncommitted Credit Agreement Obligations, then, to the extent the debt obligations distributed
on account of the Committed Credit Agreement Obligations and on account of the Uncommitted Credit Agreement Obligations are secured
by Liens upon the same property, the provisions of this Agreement will survive the distribution of such debt obligations pursuant
to such plan and will apply with like effect to the Liens securing such debt obligations.
6.7 Post-Petition
Interest.
None of the Uncommitted
Collateral Agent, any Uncommitted Credit Agreement Claimholder, the Committed Collateral Agent or any Lender shall oppose or seek
to challenge any claim by the Committed Collateral Agent, any Committed Credit Agreement Claimholder, the Uncommitted Collateral
Agent or any Uncommitted Credit Agreement Claimholder for allowance in any Insolvency or Liquidation Proceeding of Committed Credit
Agreement Obligations or Uncommitted Credit Agreement Obligations consisting of post-petition interest, fees or expenses, without
regard to the existence of the Lien of the Uncommitted Collateral Agent on behalf of the Uncommitted Credit Agreement Claimholders
or the Lien of the Committed Collateral Agent on behalf of the Lenders, as applicable, on the applicable Priority Collateral.
6.8 Waiver.
The Uncommitted Collateral
Agent, for itself and on behalf of the Uncommitted Credit Agreement Claimholders, and the Committed Collateral Agent, for itself
and on behalf of the Committed Credit Agreement Claimholders, waives any claim it may hereafter have against any Committed Credit
Agreement Claimholder or Uncommitted Credit Agreement Claimholder arising out of the election of any Committed Credit Agreement
Claimholder or Uncommitted Credit Agreement Claimholder, as applicable, of the application of Section 1111(b)(2) of the Bankruptcy
Code, and/or out of any cash collateral or financing arrangement or out of any grant of a security interest in connection with
the Priority Collateral in any Insolvency or Liquidation Proceeding.
6.9 Separate
Grants of Security and Separate Classification.
The Uncommitted Collateral
Agent, for itself and on behalf of the Uncommitted Credit Agreement Claimholders, and the Committed Collateral Agent for itself
and on behalf of the Committed Credit Agreement Claimholders, acknowledges and agrees that:
(a) the
grants of Liens in the Collateral pursuant to the Committed Credit Agreement Collateral Documents and the Uncommitted Credit Agreement
Collateral Documents constitute two separate and distinct grants of Liens; and
(b) because
of, among other things, their differing rights in the Collateral, the Uncommitted Credit Agreement Obligations are fundamentally
different from the Committed Credit Agreement Obligations and must be separately classified in any plan of reorganization proposed
or adopted in an Insolvency or Liquidation Proceeding.
To further effectuate the intent of the
parties as provided in the immediately preceding sentence, if it is held that the claims of the Committed Credit Agreement Claimholders
and the Uncommitted Credit Agreement Claimholders in respect of the Committed Credit Agreement Priority Collateral or the Uncommitted
Credit Agreement Priority Collateral constitute only one secured claim (rather than separate classes of senior and junior secured
claims), then each of the parties hereto hereby acknowledges and agrees that, subject to Sections 2.1 and 4.1, all distributions
shall be made as if there were separate classes of senior and junior secured claims against the Company in respect of such Collateral
with the effect being that:
(i) to the extent that
the aggregate value of the Committed Credit Agreement Priority Collateral is sufficient (for this purpose ignoring all claims held
by the Uncommitted Credit Agreement Claimholders), the Committed Credit Agreement Claimholders shall be entitled to receive (and
the Uncommitted Collateral Agent and the Uncommitted Credit Agreement Claimholders shall not object to such entitlement), in addition
to amounts otherwise distributed to them in respect of principal, pre-petition interest and other claims, all amounts owing in
respect of post-petition interest, including any additional interest payable pursuant to the Committed Credit Agreement, arising
from or related to a default, which is disallowed as a claim in any Insolvency or Liquidation Proceeding before any distribution
is made in respect of the claims held by the Uncommitted Credit Agreement Claimholders with respect to the Committed Credit Agreement
Priority Collateral, with the Uncommitted Collateral Agent, for itself and on behalf of the Uncommitted Credit Agreement Claimholders,
hereby acknowledging and agreeing to turn over to the Committed Collateral Agent, for itself and on behalf of the Committed Credit
Agreement Claimholders, amounts otherwise received or receivable by them to the extent necessary to effectuate the intent of this
sentence (with respect to the payment of post-petition interest), even if such turnover has the effect of reducing the claim or
recovery of the Uncommitted Credit Agreement Claimholders; and
(ii) to the extent
that the aggregate value of the Uncommitted Credit Agreement Priority Collateral is sufficient (for this purpose ignoring all claims
held by the Committed Credit Agreement Claimholders), the Uncommitted Credit Agreement Claimholders shall be entitled to receive
(and the Committed Collateral Agent and the Committed Credit Agreement Claimholders shall not object to such entitlement), in addition
to amounts otherwise distributed to them in respect of principal, pre-petition interest and other claims, all amounts owing in
respect of post-petition interest, including any additional interest payable pursuant to the Uncommitted Credit Agreement, arising
from or related to a default, which is disallowed as a claim in any Insolvency or Liquidation Proceeding before any distribution
is made in respect of the claims held by the Committed Credit Agreement Claimholders with respect to the Uncommitted Credit Agreement
Priority Collateral, with the Committed Collateral Agent, for itself and on behalf of the Committed Credit Agreement Claimholders,
hereby acknowledging and agreeing to turn over to the Uncommitted Collateral Agent, for itself and on behalf of the Uncommitted
Credit Agreement Claimholders, amounts otherwise received or receivable by them to the extent necessary to effectuate the intent
of this sentence (with respect to the payment of post-petition interest), even if such turnover has the effect of reducing the
claim or recovery of the Committed Credit Agreement Claimholders).
SECTION 7. Reliance; Waivers; Etc.
7.1 No
Implied Duty.
The Uncommitted Collateral
Agent and the Uncommitted Credit Agreement Claimholders shall have no duty to the Committed Collateral Agent or any of the Committed
Credit Agreement Claimholders, and the Committed Collateral Agent and the Committed Credit Agreement Claimholders shall have no
duty to the Uncommitted Collateral Agent or any of the Uncommitted Credit Agreement Claimholders, to act or refrain from acting
in a manner which allows, or results in, the occurrence or continuance of an event of default or default under any agreements with
the Company (including the Committed Loan Documents and the Uncommitted Loan Documents), regardless of any knowledge thereof which
they may have or be charged with.
7.2 No
Waiver of Lien Priorities.
(a) No
right of the Committed Credit Agreement Claimholders, the Committed Collateral Agent, the Uncommitted Collateral Agent, the Uncommitted
Credit Agreement Claimholders or any of them to enforce any provision of this Agreement or any Committed Loan Document or any Uncommitted
Loan Document shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of the Company or
by any act or failure to act by any Committed Credit Agreement Claimholder, the Committed Collateral Agent, the Uncommitted Collateral
Agent, or any Uncommitted Credit Agreement Claimholder, or by any noncompliance by any Person with the terms, provisions and covenants
of this Agreement, any of the Committed Loan Documents or any of the Uncommitted Loan Documents, regardless of any knowledge thereof
which the Committed Collateral Agent, the Committed Credit Agreement Claimholders, the Uncommitted Collateral Agent, the Uncommitted
Credit Agreement Claimholders or any of them, may have or be otherwise charged with.
(b) (i) Without
in any way limiting the generality of the Section 7.2(a) (but subject to the rights of the Company under the Committed Loan
Documents), the Committed Credit Agreement Claimholders, the Committed Collateral Agent and any of them may, at any time and from
time to time in accordance with the Committed Loan Documents and/or applicable law, without the consent of, or notice to, the Uncommitted
Collateral Agent or any Uncommitted Credit Agreement Claimholders, without incurring any liabilities to the Uncommitted Collateral
Agent or any Uncommitted Credit Agreement Claimholders and without impairing or releasing the Lien priorities and other benefits
provided in this Agreement (even if any right of subrogation or other right or remedy of the Uncommitted Collateral Agent or any
Uncommitted Credit Agreement Claimholders is affected, impaired or extinguished thereby) do any one or more of the following:
(1) Subject
to Section 5.2(c), change the manner, place or terms of payment or change or extend the time of payment of, or amend, renew,
exchange, increase or alter, the terms of any of the Committed Credit Agreement Obligations or any Lien on any Committed Credit
Agreement Priority Collateral or guaranty thereof or any liability of the Company, or any liability incurred directly or indirectly
in respect thereof (including any increase in or extension of the Committed Credit Agreement Obligations, without any restriction
as to the tenor or terms of any such increase or extension) or otherwise amend, renew, exchange, extend, modify or supplement in
any manner any Liens held by the Committed Collateral Agent or any of the Committed Credit Agreement Claimholders, the Committed
Credit Agreement Obligations or any of the Committed Loan Documents;
(2) sell,
exchange, release, surrender, realize upon, enforce or otherwise deal with in any manner and in any order any part of the Committed
Credit Agreement Priority Collateral or any liability of the Company to the Committed Credit Agreement Claimholders or the Committed
Collateral Agent, or any liability incurred directly or indirectly in respect thereof;
(3) settle
or compromise any Committed Credit Agreement Obligation or any other liability of the Company or any security therefor or any liability
incurred directly or indirectly in respect thereof and apply any sums by whomsoever paid and however realized to any liability
(including the Committed Credit Agreement Obligations) in any manner or order; and
(4) exercise
or delay in or refrain from exercising any right or remedy against the Company or any security or any other Person, elect any remedy
and otherwise deal freely with the Company or any Committed Credit Agreement Priority Collateral and any security and any guarantor
or any liability of the Company to the Committed Credit Agreement Claimholders or any liability incurred directly or indirectly
in respect thereof.
(ii) Without
in any way limiting the generality of the Section 7.2(a) (but subject to the rights of the Company under the Uncommitted Loan
Documents), the Uncommitted Credit Agreement Claimholders, the Uncommitted Collateral Agent and any of them may, at any time and
from time to time in accordance with the Uncommitted Loan Documents and/or applicable law, without the consent of, or notice to,
the Committed Collateral Agent or any Committed Credit Agreement Claimholders, without incurring any liabilities to the Committed
Collateral Agent or any Committed Credit Agreement Claimholders and without impairing or releasing the Lien priorities and other
benefits provided in this Agreement (even if any right of subrogation or other right or remedy of the Committed Collateral Agent
or any of the Committed Credit Agreement Claimholders is affected, impaired or extinguished thereby) do any one or more of the
following:
(1) subject
to Section 5.2(b), change the manner, place or terms of payment or change or extend the time of payment of, or amend, renew,
exchange, increase or alter, the terms of any of the Uncommitted Credit Agreement Obligations or any Lien on any Uncommitted Credit
Agreement Priority Collateral or guaranty thereof or any liability of the Company, or any liability incurred directly or indirectly
in respect thereof (including any increase in or extension of the Uncommitted Credit Agreement Obligations, without any restriction
as to the tenor or terms of any such increase or extension) or otherwise amend, renew, exchange, extend, modify or supplement in
any manner any Liens held by the Uncommitted Collateral Agent or any of the Uncommitted Credit Agreement Claimholders, the Uncommitted
Credit Agreement Obligations or any of the Uncommitted Loan Documents;
(2) sell,
exchange, release, surrender, realize upon, enforce or otherwise deal with in any manner and in any order any part of the Uncommitted
Credit Agreement Priority Collateral or any liability of the Company to the Uncommitted Collateral Agent or any of the Uncommitted
Credit Agreement Claimholders, or any liability incurred directly or indirectly in respect thereof;
(3) settle
or compromise any Uncommitted Credit Agreement Obligation or any other liability of the Company or any security therefor or any
liability incurred directly or indirectly in respect thereof and apply any sums by whomsoever paid and however realized to any
liability (including the Uncommitted Credit Agreement Obligations) in any manner or order; and
(4) exercise
or delay in or refrain from exercising any right or remedy against the Company or any security or any other Person, elect any remedy
and otherwise deal freely with the Company or any Uncommitted Credit Agreement Priority Collateral and any security and any guarantor
or any liability of the Company to the Uncommitted Credit Agreement Claimholders or any liability incurred directly or indirectly
in respect thereof.
(c) (i) Except
as otherwise provided herein, the Uncommitted Collateral Agent, on behalf of itself and the Uncommitted Credit Agreement Claimholders,
also agrees that the Committed Credit Agreement Claimholders and the Committed Collateral Agent shall have no liability to the
Uncommitted Collateral Agent or any Uncommitted Credit Agreement Claimholder, and the Uncommitted Collateral Agent, on behalf of
itself and the Uncommitted Credit Agreement Claimholders, hereby waives any claim against any Committed Credit Agreement Claimholder
or the Committed Collateral Agent, arising out of any and all actions which the Committed Credit Agreement Claimholders or the
Committed Collateral Agent may take or permit or omit to take with respect to:
(1) the
Committed Loan Documents (other than this Agreement);
(2) the
collection of the Committed Credit Agreement Obligations; or
(3) the
foreclosure upon, or sale, liquidation or other disposition of, any Committed Credit Agreement Priority Collateral. The Uncommitted
Collateral Agent, on behalf of itself and the Uncommitted Credit Agreement Claimholders, agrees that the Committed Credit Agreement
Claimholders and the Committed Collateral Agent have no duty to them in respect of the maintenance or preservation of the Committed
Credit Agreement Priority Collateral, the Committed Credit Agreement Obligations or otherwise.
(ii) Except
as otherwise provided herein and in the Committed Credit Agreement, the Committed Collateral Agent, on behalf of itself and the
Committed Credit Agreement Claimholders, also agrees that the Uncommitted Credit Agreement Claimholders and the Uncommitted Collateral
Agent shall have no liability to the Committed Collateral Agent or any Committed Credit Agreement Claimholders, and the Committed
Collateral Agent, on behalf of itself and the Committed Credit Agreement Claimholders, hereby waives (subject to the terms of the
Credit Agreement) any claim against any Uncommitted Credit Agreement Claimholder or the Uncommitted Collateral Agent, arising out
of any and all actions which the Uncommitted Credit Agreement Claimholders or the Uncommitted Collateral Agent may take or permit
or omit to take with respect to:
(1) the
Uncommitted Loan Documents (other than this Agreement);
(2) the
collection of the Uncommitted Credit Agreement Obligations; or
(3) the
foreclosure upon, or sale, liquidation or other disposition of, any Uncommitted Credit Agreement Priority Collateral. The Committed
Collateral Agent, on behalf of itself and the Committed Credit Agreement Claimholders, agrees that the Uncommitted Credit Agreement
Claimholders and the Uncommitted Collateral Agent have no duty to them in respect of the maintenance or preservation of the Uncommitted
Credit Agreement Priority Collateral, the Uncommitted Credit Agreement Obligations or otherwise.
(d) Until
the Discharge of Committed Credit Agreement Obligations, the Uncommitted Collateral Agent, on behalf of itself and the Uncommitted
Credit Agreement Claimholders, agrees not to assert and hereby waives, to the fullest extent permitted by law, any right to demand,
request, plead or otherwise assert or otherwise claim the benefit of, any marshalling, appraisal, valuation or other similar right
that may otherwise be available under applicable law with respect to the Committed Credit Agreement Priority Collateral or any
other similar rights a junior secured creditor may have in respect of the Committed Credit Agreement Priority Collateral under
applicable law. Until the Discharge of Uncommitted Credit Agreement Obligations, the Committed Collateral Agent, on behalf of itself
and the Committed Credit Agreement Claimholders, agrees not to assert and hereby waives, to the fullest extent permitted by law,
any right to demand, request, plead or otherwise assert or otherwise claim the benefit of, any marshalling, appraisal, valuation
or other similar right that may otherwise be available under applicable law with respect to the Uncommitted Credit Agreement Priority
Collateral or any other similar rights a junior secured creditor may have in respect of the Uncommitted Credit Agreement Priority
Collateral under applicable law.
7.3 Obligations
Unconditional.
All rights, interests,
agreements and obligations of the Committed Collateral Agent and the Committed Credit Agreement Claimholders and the Uncommitted
Collateral Agent and the Uncommitted Credit Agreement Claimholders, respectively, hereunder shall remain in full force and effect
irrespective of:
(a) any
lack of validity or enforceability of any Committed Loan Documents or any Uncommitted Loan Documents;
(b) except
as otherwise expressly set forth in this Agreement, any change in the time, manner or place of payment of, or in any other terms
of, all or any of the Committed Credit Agreement Obligations or Uncommitted Credit Agreement Obligations, or any permitted amendment
or waiver or other modification, including any increase in the amount thereof, whether by course of conduct or otherwise, of the
terms of any Committed Loan Document or any Uncommitted Loan Document;
(c) except
as otherwise expressly set forth in this Agreement, any exchange of any security interest in any Collateral or any other collateral,
or any amendment, waiver or other modification, whether in writing or by course of conduct or otherwise, of all or any of the Committed
Credit Agreement Obligations or Uncommitted Credit Agreement Obligations or any guaranty thereof;
(d) the
commencement of any Insolvency or Liquidation Proceeding in respect of the Company; or
(e) any
other circumstances which otherwise might constitute a defense available to, or a discharge of, the Company in respect of the Committed
Collateral Agent, the Committed Credit Agreement Obligations, any Committed Credit Agreement Claimholder, the Uncommitted Collateral
Agent, the Uncommitted Credit Agreement Obligations or any Uncommitted Credit Agreement Claimholder in respect of this Agreement.
SECTION 8. Miscellaneous.
8.1 Conflicts.
In the event of any
conflict between the provisions of this Agreement and the provisions of the Committed Loan Documents or the Uncommitted Loan Documents,
the provisions of this Agreement shall govern and control.
8.2 Effectiveness;
Continuing Nature of this Agreement; Severability.
This Agreement shall
become effective when executed and delivered by the parties hereto. This is a continuing agreement of lien subordination and the
Committed Credit Agreement Claimholders and the Uncommitted Credit Agreement Claimholders may continue, at any time and without
notice to the Uncommitted Collateral Agent or any Uncommitted Credit Agreement Claimholder or to the Committed Collateral Agent
or any Committed Credit Agreement Claimholder, to extend credit and other financial accommodations and lend monies to or for the
benefit of the Company constituting Committed Credit Agreement Obligations or Uncommitted Credit Agreement Obligations in reliance
hereof. The Uncommitted Collateral Agent, on behalf of itself and the Uncommitted Credit Agreement Claimholders, hereby waives
any right it may have under applicable law to revoke this Agreement or any of the provisions of this Agreement. The Committed Collateral
Agent, on behalf of itself and the Committed Credit Agreement Claimholders, hereby waives any right it may have under applicable
law to revoke this Agreement or any of the provisions of this Agreement. The terms of this Agreement shall survive, and shall continue
in full force and effect, in any Insolvency or Liquidation Proceeding. Any provision of this Agreement that is prohibited or unenforceable
in any jurisdiction shall not invalidate the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in any other jurisdiction. All references to the Company shall include
the Company as debtor and debtor-in-possession and any receiver or trustee for the Company in any Insolvency or Liquidation Proceeding.
This Agreement shall terminate and be of no further force and effect:
(a) with
respect to the Committed Collateral Agent, the Committed Credit Agreement Claimholders and the Committed Credit Agreement Obligations,
on the date of Discharge of Committed Credit Agreement Obligations, subject to the rights of the Committed Credit Agreement Claimholders
under Section 6.5; and
(b) with
respect to the Uncommitted Collateral Agent, the Uncommitted Credit Agreement Claimholders and the Uncommitted Credit Agreement
Obligations, on the date of Discharge of Uncommitted Credit Agreement Obligations, subject to the rights of the Uncommitted Credit
Agreement Claimholders under Section 6.5.
8.3 Amendments;
Waivers.
No amendment, modification
or waiver of any of the provisions of this Agreement by the Uncommitted Collateral Agent or the Committed Collateral Agent shall
be deemed to be made unless the same shall be in writing signed on behalf of each party hereto or its authorized agent and each
waiver, if any, shall be a waiver only with respect to the specific instance involved and shall in no way impair the rights of
the parties making such waiver or the obligations of the other parties to such party in any other respect or at any other time.
Notwithstanding the foregoing, the Company shall not have any right to consent to or approve any amendment, modification or waiver
of any provision of this Agreement except to the extent its rights are directly affected (which includes, but is not limited to
any amendment to the Company’s ability to cause additional obligations to constitute Committed Credit Agreement Obligations
or Uncommitted Credit Agreement Obligations).
8.4 Information
Concerning Financial Condition of the Company.
The Committed Collateral
Agent and the Committed Credit Agreement Claimholders, on the one hand, and the Uncommitted Credit Agreement Claimholders and the
Uncommitted Collateral Agent, on the other hand, shall each be responsible for keeping themselves informed of (i) the financial
condition of the Company and all endorsers and/or guarantors of the Committed Credit Agreement Obligations or the Uncommitted Credit
Agreement Obligations and (ii) all other circumstances bearing upon the risk of nonpayment of the Committed Credit Agreement Obligations
or the Uncommitted Credit Agreement Obligations. The Committed Collateral Agent and the Committed Credit Agreement Claimholders
shall have no duty to advise the Uncommitted Collateral Agent or any Uncommitted Credit Agreement Claimholder of information known
to it or them regarding such condition or any such circumstances or otherwise, and the Uncommitted Collateral Agent and the Uncommitted
Credit Agreement Claimholders shall have no duty to advise the Committed Collateral Agent or any Committed Credit Agreement Claimholder
of information known to it or them regarding such condition or any such circumstances or otherwise. In the event that (x) the Committed
Collateral Agent or any of the Committed Credit Agreement Claimholders, in its or their sole discretion, undertakes at any time
or from time to time to provide any such information to the Uncommitted Collateral Agent or any Uncommitted Credit Agreement Claimholder,
or (y) the Uncommitted Collateral Agent or any Uncommitted Credit Agreement Claimholder, in its or their sole discretion, undertakes
at any time or from time to time to provide any such information to the Committed Collateral Agent or any of the Committed Credit
Agreement Claimholders, it or they shall be under no obligation:
(a) to
make, and such party hereto shall not make, any express or implied representation or warranty, including with respect to the accuracy,
completeness, truthfulness or validity of any such information so provided;
(b) to
provide any additional information or to provide any such information on any subsequent occasion;
(c) to
undertake any investigation; or
(d) to
disclose any information, which pursuant to accepted or reasonable commercial finance practices, such party wishes to maintain
confidential or is otherwise required to maintain confidential.
8.5 Subrogation.
(a) With
respect to the value of any payments or distributions in cash, property or other assets that the Uncommitted Collateral Agent pays
over to the Committed Collateral Agent or the Committed Credit Agreement Claimholders under the terms of this Agreement, the Uncommitted
Credit Agreement Claimholders and the Uncommitted Collateral Agent shall be subrogated to the rights of the Committed Collateral
Agent and the Committed Credit Agreement Claimholders; provided that the Uncommitted Collateral Agent, on behalf of itself
and the Uncommitted Credit Agreement Claimholders, hereby agrees not to assert or enforce all such rights of subrogation it may
acquire as a result of any payment hereunder until the Discharge of Committed Credit Agreement Obligations has occurred. The Company
acknowledges and agrees that the value of any payments or distributions in cash, property or other assets received by the Uncommitted
Collateral Agent or the Uncommitted Credit Agreement Claimholders that are paid over to the Committed Collateral Agent or the Committed
Credit Agreement Claimholders pursuant to this Agreement shall not reduce any of the Uncommitted Credit Agreement Obligations.
(b) With
respect to the value of any payments or distributions in cash, property or other assets that the Committed Collateral Agent pays
over to the Uncommitted Collateral Agent or the Uncommitted Credit Agreement Claimholders under the terms of this Agreement, the
Committed Credit Agreement Claimholders and the Committed Collateral Agent shall be subrogated to the rights of the Uncommitted
Collateral Agent and the Uncommitted Credit Agreement Claimholders; provided that the Committed Collateral Agent, on behalf
of itself and the Committed Credit Agreement Claimholders, hereby agrees not to assert or enforce all such rights of subrogation
it may acquire as a result of any payment hereunder until the Discharge of Uncommitted Credit Agreement Obligations has occurred.
The Company acknowledges and agrees that the value of any payments or distributions in cash, property or other assets received
by the Committed Collateral Agent or the Committed Credit Agreement Claimholders that are paid over to the Uncommitted Collateral
Agent or the Uncommitted Credit Agreement Claimholders pursuant to this Agreement shall not reduce any of the Committed Credit
Agreement Obligations.
8.6 Application
of Payments.
(a) Subject
to the terms of the Committed Loan Documents, all payments received by the Committed Collateral Agent or the Committed Credit Agreement
Claimholders may be applied, reversed and reapplied, in whole or in part, to such part of the Committed Credit Agreement Obligations
provided for in the Committed Loan Documents. The Uncommitted Collateral Agent, on behalf of itself and the Uncommitted Credit
Agreement Claimholders, assents to any extension or postponement of the time of payment of the Committed Credit Agreement Obligations
or any part thereof and to any other indulgence with respect thereto, to any substitution, exchange or release of any security
which may at any time secure any part of the Committed Credit Agreement Obligations and to the addition or release of any other
Person primarily or secondarily liable therefor.
(b) Subject
to the terms of the Uncommitted Loan Documents, all payments received by the Uncommitted Collateral Agent or the Uncommitted Credit
Agreement Claimholders may be applied, reversed and reapplied, in whole or in part, to such part of the Uncommitted Credit Agreement
Obligations provided for in the Uncommitted Loan Documents. The Committed Collateral Agent, on behalf of itself and the Committed
Credit Agreement Claimholders, assents to any extension or postponement of the time of payment of the Uncommitted Credit Agreement
Obligations or any part thereof and to any other indulgence with respect thereto, to any substitution, exchange or release of any
security which may at any time secure any part of the Uncommitted Credit Agreement Obligations and to the addition or release of
any other Person primarily or secondarily liable therefor.
8.7 SUBMISSION
TO JURISDICTION; WAIVERS.
(a) ALL
JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY PARTY ARISING OUT OF OR RELATING HERETO MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF
COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK. BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH PARTY, FOR ITSELF
AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY:
(1) ACCEPTS
GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS;
(2) WAIVES
ANY DEFENSE OF FORUM NON CONVENIENS; AND
(3) AGREES
THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY ANY MANNER PERMITTED BY APPLICABLE LAW.
(b) EACH
OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING HEREUNDER. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY
COURT AND THAT RELATE TO THE SUBJECT MATTER HEREOF, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER
COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS
RELATIONSHIP THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE TO RELY ON
THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER
WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.
THIS WAIVER IS IRREVOCABLE; MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER
SPECIFICALLY REFERRING TO THIS SECTION 8.7(b) AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL BY THE COURT.
(c) EACH
OF THE PARTIES HERETO WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER COMMITTED LOAN DOCUMENT OR UNCOMMITTED LOAN DOCUMENT, OR ANY COURSE OF CONDUCT,
COURSE OF DEALING, VERBAL OR WRITTEN STATEMENT OR ACTION OF ANY PARTY HERETO.
8.8 Notices.
All notices to the
Uncommitted Credit Agreement Claimholders and the Committed Credit Agreement Claimholders permitted or required under this Agreement
shall also be sent to the Uncommitted Collateral Agent and the Committed Collateral Agent, respectively. Unless otherwise specifically
provided herein, any notice hereunder shall be in writing and may be personally served, or sent by facsimile transmission or United
States mail (certified, return-receipt) or courier service and shall be deemed to have been given when delivered in person or by
courier service and signed for against receipt thereof, upon receipt of facsimile transmission, or three Business Days after depositing
it in the United States mail with postage prepaid and properly addressed. For the purposes hereof, the addresses of the parties
hereto shall be as set forth on Annex I hereto, or, as to each party, at such other address as may be designated by such party
in a written notice to all of the other parties.
8.9 Further
Assurances.
The Committed Collateral
Agent, on behalf of itself and the Committed Credit Agreement Claimholders under the Committed Loan Documents, and the Uncommitted
Collateral Agent, on behalf of itself and the Uncommitted Credit Agreement Claimholders under the Uncommitted Loan Documents, and
the Company, agree that each of them shall take such further action and shall execute and deliver such additional documents and
instruments (in recordable form, if requested) as the Committed Collateral Agent or the Uncommitted Collateral Agent may reasonably
request to effectuate the terms of and the Lien priorities contemplated by this Agreement.
8.10 APPLICABLE
LAW.
THIS AGREEMENT SHALL
BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO NEW
YORK CONFLICTS OF LAWS PRINCIPLES.
8.11 Binding
on Successors and Assigns.
This Agreement shall
be binding upon the Committed Collateral Agent, the Committed Credit Agreement Claimholders, the Uncommitted Collateral Agent,
the Uncommitted Credit Agreement Claimholders and their respective successors and assigns.
8.12 Specific
Performance.
Each of the Committed
Collateral Agent and the Uncommitted Collateral Agent may demand specific performance of this Agreement. The Committed Collateral
Agent, on behalf of itself and the Committed Credit Agreement Claimholders under the Committed Loan Documents, and the Uncommitted
Collateral Agent, on behalf of itself and the Uncommitted Credit Agreement Claimholders under the Uncommitted Loan Documents, hereby
irrevocably waive any defense based on the adequacy of a remedy at law and any other defense which might be asserted to bar the
remedy of specific performance in any action in respect of this Agreement which may be brought by the Committed Collateral Agent
or the Committed Credit Agreement Claimholders or the Uncommitted Collateral Agent or the Uncommitted Credit Agreement Claimholders,
as the case may be.
8.13 Headings.
Section headings in
this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any
other purpose or be given any substantive effect.
8.14 Counterparts.
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. Delivery of an executed counterpart of a signature page
of this Agreement or any document or instrument delivered in connection herewith by telecopy shall be effective as delivery of
a manually executed counterpart of this Agreement or such other document or instrument, as applicable.
8.15 Authorization.
By its signature, each
Person executing this Agreement on behalf of a party hereto represents and warrants to the other parties hereto that it is duly
authorized to execute this Agreement.
8.16 No
Third Party Beneficiaries.
This Agreement and
the rights and benefits hereof shall inure to the benefit of each of the parties hereto and its respective successors and assigns
and shall inure to the benefit of each of the Committed Credit Agreement Claimholders and the Uncommitted Credit Agreement Claimholders.
Other than as expressly set forth in this Agreement, nothing in this Agreement shall impair, as between the Company and the Committed
Collateral Agent and the Committed Credit Agreement Claimholders, or as between the Company and the Uncommitted Collateral Agent
and the Uncommitted Credit Agreement Claimholders, (a) the obligations of the Company and to pay principal, interest, fees and
other amounts as provided in the Committed Loan Documents and the Uncommitted Loan Documents, respectively and (b) the rights of
the Company under the Committed Loan Documents and the Uncommitted Loan Documents, respectively.
8.17 Provisions
Solely to Define Relative Rights.
The provisions of this
Agreement are and are intended solely for the purpose of defining the relative rights of the Committed Collateral Agent and the
Committed Credit Agreement Claimholders on the one hand and the Uncommitted Collateral Agent and the Uncommitted Credit Agreement
Claimholders on the other hand. None of the Company or any other creditor thereof shall have any rights hereunder and the Company
may not rely on the terms hereof. Nothing in this Agreement is intended to or shall impair the obligations of the Company, which
are absolute and unconditional, to pay the Committed Credit Agreement Obligations and the Uncommitted Credit Agreement Obligations
as and when the same shall become due and payable in accordance with their terms.
8.18 Company
Acknowledgment.
The Company hereby
agrees to and acknowledges its obligations under Sections 2.3(a)(ii), 2.3(a)(iv), 2.3(b)(ii), 2.3(b)(iv) and 5.2 and agrees
that it shall have no right to consent to or approve of any amendment, supplement or modification of or to this Agreement, other
than in respect of any such amendment, supplement or modification (a) to Section 2.3 or this Section 8.18 or (b) that
changes or increases its obligations under this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Intercreditor
Agreement as of the date first written above.
|
Committed Collateral Agent: |
|
|
|
COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”, NEW YORK BRANCH, |
|
as Committed Collateral Agent |
|
|
|
|
|
By: |
/s/ Chan K. Park |
|
|
Name: |
Chan K. Park |
|
|
Title: |
Managing Director |
|
|
|
|
|
By: |
/s/ Xander Willemsen |
|
|
Name: |
Xander Willemsen |
|
|
Title: |
Executive Director |
|
|
|
|
|
Uncommitted Collateral Agent: |
|
|
|
COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”, NEW YORK BRANCH, as Uncommitted Collateral Agent |
|
|
|
|
|
By: |
/s/ Chan K. Park |
|
|
Name: |
Chan K. Park |
|
|
Title: |
Managing Director |
|
|
|
|
|
By: |
/s/ Xander Willemsen |
|
|
Name: |
Xander Willemsen |
|
|
Title: |
Executive Director |
ACCEPTED AND AGREED TO, SOLELY IN
RESPECT OF SECTIONS 2.3(a)(ii),
2.3(a)(iv),
2.3(b)(ii), 2.3(b)(iv), 5.2 and 8.18:
EMPIRE RESOURCES, INC. |
|
|
By: |
/s/ Sandra Kahn |
|
Name: Sandra R. Kahn |
|
Title: Vice President |
Annex I
Notices
Committed Collateral Agent
Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A.,
“Rabobank Nederland”, New York Branch
c/o Rabo Support Services, Inc.
10 Exchange Place
Jersey City, New Jersey 07302
Attention: Corporate Bank Services, Sui Price
Fax No.: 914-304-9327
Uncommitted Collateral Agent
Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A.,
“Rabobank Nederland”, New York Branch
c/o Rabo Support Services, Inc.
10 Exchange Place
Jersey City, New Jersey 07302
Attention: Corporate Bank Services, Sui Price
Fax No.: 914-304-9327
The Company
Empire Resources, Inc.
One Parker Plaza
Fort Lee, New Jersey 07024
Attention: Sandra R. Kahn
Fax: 201-944-2226
Exhibit
99.1
EMPIRE RESOURCES, INC.
EMPIRE RESOURCES COMPLETES NEW, EXPANDED
$225 MILLION WORKING CAPITAL CREDIT AGREEMENT
Fort Lee, NJ, June 23, 2014 — Empire Resources,
Inc. (NASDAQ: ERS), a distributor of value added, semi-finished metal products, announced today that it has entered into a
new $225 million working capital credit facility with an international consortium of banks, led by Rabobank International as Lead
Arranger and Administrative Agent and BNP Paribas as Syndication Agent.
The credit lines consist of two secured, asset-based credit
facilities: a committed credit facility of $150 million, which bears interest on borrowings at 2.35% over Libor, and an uncommitted
facility of $75 million, which bears interest on borrowings at 1.85% over Libor. The committed facility also allows for
an additional increase in the credit facility of $75 million, to a total of $300 million, subject to certain conditions. The committed
facility, which matures on June 19, 2017 and the uncommitted facility, replace the Company's current $200 million three-year secured,
asset-based facility, which bears interest on borrowings at 2.5% above Libor and was scheduled to mature on June 30, 2014. The
financial and other covenants in the new agreements are similar to the current agreement.
Sandra Kahn, Vice President and CFO, commented, “We are
gratified by this new, expanded credit facility with our banks, which lowers our interest costs on working capital borrowing while
supporting our strategy for growth.”
Empire Resources, Inc. is a distributor of a wide range of semi-finished
metal products to customers in the transportation, automotive, housing, appliance and packaging industries in the U.S., Canada,
Latin America, Australia, New Zealand and Europe. It maintains supply contracts with mills in various parts of the world.
This press release contains “forward-looking statements.”
Such statements may be preceded by the words “intends,” “may,” “will,” “plans,”
“expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,”
“believes,” “hopes,” “potential” or similar words. Forward-looking statements are not guarantees
of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many
of which are beyond the Company’s control, and cannot be predicted or quantified and consequently, actual results may differ
materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation,
risks and uncertainties associated with (i) the loss or default of one or more suppliers; (ii) the loss or default of one or more
significant customers; (iii) a default by counterparties to derivative financial instruments; (iv) changes in general, national
or regional economic conditions; (v) an act of war or terrorism that disrupts international shipping; (vi) changes in laws, regulations
and tariffs; (vii) the imposition of anti-dumping duties on products the Company imports; (viii) changes in the size and nature
of the Company’s competition; (ix) changes in interest rates, foreign currencies or spot prices of aluminum; (x) the loss
of one or more key executives; (xi) increased credit risk from customers; (xii) the Company’s failure to grow internally
or by acquisition and (xiii) the Company’s failure to improve operating margins and efficiencies. More detailed information
about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s
filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly
Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s web site
at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result
of new information, future events or otherwise.
Contacts:
Investor Relations:
Comm-Counsellors, LLC
Edward Nebb
+1 203-972-8350
enebb@optonline.net
June Filingeri
+1 203-972-0186
junefil@optonline.net
Shareholders:
David Kronfeld
+1 917-408-1940
dkronfeld@empireresources.com
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