EX-10.1 2 ck0002000178-ex10_1.htm EX-10.1 EX-10.1

Execution Version

SIXTEENTH AMENDMENT
TO CREDIT AGREEMENT

This SIXTEENTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), is entered into as of August 26, 2024, among Loar Holdings Inc., a Delaware corporation (f/k/a Loar Holdings, LLC, “Holdings”), the other Guarantors party hereto, Loar Group Inc., a Delaware corporation (as successor by merger to Loar Merger Sub, Inc., the “Borrower”), the Additional Lenders (as defined below), and First Eagle Alternative Credit, LLC (as successor by merger to First Eagle Private Credit, LLC (f/k/a NewStar Financial, Inc.)), as administrative agent for the Lenders (in such capacity, the “Administrative Agent”) and as collateral agent for the Secured Parties (in such capacity, the “Collateral Agent” and, together with the Administrative Agent, the “Specified Agents”).

WITNESSETH:

WHEREAS, Holdings, the Borrower, the Guarantors party thereto from time to time, the Lenders party thereto from time to time, the Specified Agents and Citibank, N.A., as administrative agent for the Revolving Lenders and as an Issuing Bank, are parties to that certain Credit Agreement, dated as of October 2, 2017 (as amended by the First Amendment to Credit Agreement, dated as of August 10, 2018, the Second Amendment to Credit Agreement, dated as of October 26, 2018, the Third Amendment to Credit Agreement, dated as of December 21, 2018, the Fourth Amendment to Credit Agreement, dated as of May 17, 2019, the Fifth Amendment to Credit Agreement, dated as of October 16, 2019, the Sixth Amendment to Credit Agreement, dated as of April 2, 2020, the Seventh Amendment to Credit Agreement, dated as of April 17, 2020, the Eighth Amendment to Credit Agreement, dated as of December 28, 2020, the Ninth Amendment to Credit Agreement, dated as of April 1, 2022, the Tenth Amendment to Credit Agreement, dated as of May 20, 2022, the Eleventh Amendment to Credit Agreement, dated as of July 28, 2022, the Twelfth Amendment to Credit Agreement, dated as of June 30, 2023, the Thirteenth Amendment to Credit Agreement, dated as of March 26, 2024, the Fourteenth Amendment to Credit Agreement, dated as of April 10, 2024, the Fifteenth Amendment to Credit Agreement and First Amendment to Security Agreement, dated as of May 10, 2024, and as otherwise amended, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement” and, as amended by this Amendment, the “Amended Credit Agreement”; capitalized terms used herein (including in the preamble hereto) that are not otherwise defined herein shall have the respective meanings assigned to such terms in the Amended Credit Agreement);

WHEREAS, the Loan Parties intend to consummate the Applied Avionics Acquisition (as defined below);

WHEREAS, pursuant to Section 2.17 of the Credit Agreement, the Borrower has requested Incremental Term Loans in an aggregate principal amount equal to $360,000,000 (collectively, the “Sixteenth Amendment Incremental Term Loans”, and each, a “Sixteenth Amendment Incremental Term Loan”) under the Ratio-Based Incremental Basket, and each Person party hereto and listed on the signature pages hereto as an “Additional Lender” (each, an “Additional Lender”) is willing to provide a Sixteenth Amendment Incremental Term Loan on the Sixteenth Amendment Effective Date (as defined below) equal to the amount set forth opposite such Additional Lender’s name in the column titled “Sixteenth Amendment Incremental Term Loan Commitment” on Annex A hereto (collectively, the “Sixteenth Amendment Incremental Term Commitment”), subject to the terms and conditions of this Amendment and the Amended Credit Agreement, and, if not an existing Lender under the Credit Agreement, to become a Lender under the Credit Agreement;

WHEREAS, the proceeds of the Sixteenth Amendment Incremental Term Loans will be used, directly or indirectly, to (i) pay a portion of the consideration payable pursuant to the terms and conditions of the Applied Avionics Acquisition Agreement (the transactions contemplated thereby, the “Applied

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Avionics Acquisition”), (ii) pay fees and expenses incurred in connection with the foregoing and the transactions related thereto and (iii) otherwise fund working capital and general corporate purposes of the Loan Parties;

WHEREAS, the Applied Avionics Acquisition is a Limited Condition Transaction; and

WHEREAS, the Additional Lenders and the Specified Agents are willing to amend the Credit Agreement as set forth in Section 2 of this Amendment subject to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained herein, the parties hereto agree as follows:

SECTION 1.
Sixteenth Amendment Incremental Term Loans. Pursuant to Section 2.17 of the Credit Agreement, subject to the satisfaction (or waiver by the Additional Lenders) of the conditions set forth in Section 3 hereof, and relying upon the representations and warranties set forth herein:
(a)
Each Additional Lender agrees to make a Sixteenth Amendment Incremental Term Loan to the Borrower in Dollars on the Sixteenth Amendment Effective Date in an aggregate principal amount not to exceed its Sixteenth Amendment Incremental Term Loan Commitment.
(b)
The Sixteenth Amendment Incremental Term Loan Commitment shall automatically and irrevocably terminate on the Sixteenth Amendment Effective Date after the funding of the Sixteenth Amendment Incremental Term Loans. Amounts paid or prepaid in respect of the Sixteenth Amendment Incremental Term Loans may not be reborrowed.
(c)
Each party hereto acknowledges and agrees that (i) the Sixteenth Amendment Incremental Term Loan Commitment shall constitute “Incremental Term Loan Commitments” under the Credit Agreement and (ii) the Sixteenth Amendment Incremental Term Loans shall, immediately upon the incurrence thereof, constitute “Incremental Term Loans” under the Amended Credit Agreement, shall be deemed to be part of the same Class of Term Loans as the Initial Term Loans and, except as specifically provided for otherwise in this Amendment or the Amended Credit Agreement, the terms and provisions applicable thereto shall be identical to those of the Initial Term Loans (after giving effect to this Amendment and the Amended Credit Agreement), and in connection therewith shall be subject to all of the terms and provisions of the Amended Credit Agreement and the other Loan Documents pertaining thereto. Without limiting the foregoing, the Sixteenth Amendment Incremental Term Loans (and all interest and other amounts payable thereon or with respect thereto) (v) shall constitute “Obligations” under and as defined in the Amended Credit Agreement, (w) shall be guaranteed in the same manner and to the same extent by the Guarantors as the Initial Term Loans, (x) shall be secured on a pari passu basis by the Liens granted pursuant to the Security Documents to secure the Obligations, (y) shall share ratably in right of prepayment with the Initial Term Loans pursuant to Section 2.09(b) of the Amended Credit Agreement and (z) shall be fungible with the Initial Term Loans under the Amended Credit Agreement.
(d)
Each Additional Lender acknowledges and agrees that (i) from and after the Sixteenth Amendment Effective Date, it shall be bound by the provisions of the Amended Credit Agreement as a Lender thereunder and, to the extent of its Sixteenth Amendment Incremental Term Loan Commitment (or the outstanding principal amount of its Sixteenth Amendment Incremental Term Loans in respect thereof), shall have the obligations of a Lender thereunder, (ii)(x) it has received a copy of the Credit Agreement and has received or been afforded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 5.01 thereof and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Amendment, (y) it has agreed to provide its portion of the Sixteenth Amendment Incremental Term Loan Commitment and

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Sixteenth Amendment Incremental Term Loans in respect thereof and (z) it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, (iii) it will, independently and without reliance on the Administrative Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (iv) it will perform in accordance with their terms all of the obligations that by the terms of the Loan Documents are required to be performed by it as a Lender.
(e)
Each party hereto hereby agrees that this Amendment shall constitute the notice to elect to request the establishment of new Term Loan Commitments under the existing term facility required by Section 2.17 of the Credit Agreement and hereby waives any advance notice requirement required thereby.
SECTION 2.
Amendments to Credit Agreement. Upon satisfaction (or waiver by the Additional Lenders) of the conditions set forth in Section 3 hereof, the Credit Agreement is hereby amended as follows:
(a)
the Credit Agreement (except as expressly referenced in this Amendment, excluding the annexes, schedules and exhibits thereto, which shall remain in full force and effect) is hereby amended as set forth in Annex B attached hereto such that all of the newly inserted double underlined text (indicated textually in the same manner as the following example: double-underlined text) and any formatting changes attached hereto shall be deemed to be inserted and all stricken text (indicated textually in the same manner as the following example: stricken text) shall be deemed to be deleted therefrom.
(b)
Schedule 2.01 of the Credit Agreement is hereby amended and restated in its entirety as set forth on Annex A hereto.
SECTION 3.
Conditions to Effectiveness of this Amendment. This Amendment shall become effective on the date (the “Sixteenth Amendment Effective Date”) by which there shall have occurred, and the obligation of each Additional Lender to make its Sixteenth Amendment Incremental Term Loan to the Borrower in accordance with Section 1 hereof shall be subject to, the prior or concurrent fulfillment of each of the conditions precedent set forth in this Section 3.
(a)
Amendment Documents. There shall have been delivered (i) to the Specified Agents, a counterpart of this Amendment, duly executed by the Borrower, each Additional Lender and each other person contemplated to be a party hereto and (ii) to Blackstone, a counterpart of the Sixteenth Amendment Fee Letter, duly executed by the Borrower.
(b)
Applied Avionics Acquisition. The Applied Avionics Acquisition shall have been consummated, or shall be consummated substantially concurrently with the Borrowing of the Sixteenth Amendment Incremental Term Loans on the Sixteenth Amendment Effective Date, in all material respects in accordance with the terms of the Applied Avionics Acquisition Agreement.
(c)
Corporate Documents. There shall have been delivered to the Specified Agents: (i) customary certificates of the secretary or assistant secretary of each Loan Party organized in the United States dated the Sixteenth Amendment Effective Date, certifying: (1) that attached thereto is a true, correct and complete copy of each Organizational Document of such Loan Party, certified (to the extent applicable) as of a recent date by the Secretary of State of the state of its organization (or other applicable Governmental Authority of its jurisdiction of organization) (or, with respect to any Loan Party, certifying that there has been no change since the most recent Organizational Document of such Loan Party delivered to the Administrative Agent); (2) that attached thereto is a true, correct and complete copy of resolutions duly

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adopted by the Board of Directors of such Loan Party authorizing the execution, delivery and performance of this Amendment, and that such resolutions have not been modified, rescinded or amended and are in full force and effect; and (3) as to the incumbency and specimen signature of each officer executing this Amendment or any other document delivered in connection therewith on behalf of such Loan Party; and (ii) a certificate as to the good standing of each Loan Party (other than a Loan Party organized under the laws of Germany) as of a recent date, from the Secretary of State (or other applicable Governmental Authority) of the jurisdiction of its organization.
(d)
Borrowing Request. There shall have been delivered to the Administrative Agent a Borrowing Request requesting the borrowing of the Sixteenth Amendment Incremental Term Loans in accordance with the requirements of Section 2.03 of the Amended Credit Agreement.
(e)
Opinions of Counsel. There shall have been delivered to the Specified Agents, a customary written opinion of each of (i) Ropes & Gray LLP, counsel to the Loan Parties; (ii) Benesch, Friedlander, Coplan & Aronoff, Ohio counsel and (iii) Cozen O’Connor, Pennsylvania counsel, in each case, in form and substance reasonably satisfactory to the Specified Agents.
(f)
Personal Property Requirements. There shall have been delivered to the Specified Agents copies of customary UCC, tax and judgment lien searches or equivalent reports or searches, each of a recent date.
(g)
Fees & Expenses. All fees, costs and expenses (in the case of expenses, to the extent invoiced at least three (3) Business Days prior to the Sixteenth Amendment Effective Date (except as otherwise reasonably agreed by the Borrower)), required to be paid to Blackstone and the Specified Agents on the Sixteenth Amendment Effective Date (including without limitation, such fees payable on the Sixteenth Amendment Effective Date pursuant to the Sixteenth Amendment Fee Letter) shall have been paid, or shall be paid substantially concurrently with the Borrowing of the Sixteenth Amendment Incremental Term Loans on the Sixteenth Amendment Effective Date.
(h)
Solvency Certificate. There shall have been delivered to the Specified Agents a solvency certificate substantially in the form of Exhibit I to the Credit Agreement, mutatis mutandis, dated the Sixteenth Amendment Effective Date and signed by a Financial Officer of Holdings.
(i)
Officer’s Certificate. There shall have been delivered to the Specified Agents an Officer’s Certificate, dated as of the Sixteenth Amendment Effective date, (w) attaching a true and complete copy of the Applied Avionic Acquisition Agreement, (x) confirming compliance with the conditions precedent set forth in clauses (b), (j) and (k) of this Section 3, (y) confirming that the Applied Avionics Acquisition constitutes a “Permitted Acquisition” under the Credit Agreement and (z) confirming that, as of the date of the Applied Avionics Acquisition Agreement, on a Pro Forma Basis determined on the basis of the financial statements then most recently required to be delivered to the Administrative Agent pursuant to Section 5.01(a) or (b) of the Credit Agreement, as the case may be, and after giving effect to the incurrence of the Sixteenth Amendment Incremental Term Loans and the use of proceeds thereof, the Total Net Leverage Ratio did not exceed 5.50:1.00.
(j)
No Default or Event of Default. (i) No (i) Default or Event of Default occurred at the date of the Applied Avionics Acquisition Agreement and (ii) Event of Default pursuant to Section 8.01(a), (b), (g) or (h) shall have occurred and be continuing after giving effect to the Sixteenth Amendment Incremental Term Loans on the Sixteenth Amendment Effective Date.
(k)
Specified representations. The Specified Representations shall be true and correct in all material respect on the Sixteenth Amendment Effective Date (other than those Specified

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Representations that are expressly qualified by Material Adverse Effect or other materiality, in which case such Specified Representations shall be true and correct in all respects after giving effect to such qualification and other than those Specified Representations that are expressly made as of an earlier specified date, in which case such Specified Representation shall be true and correct in all material respects as of such earlier specified date).
(l)
USA Patriot Act. The Specified Agents shall have received all documentation and other information about the Loan Parties required by bank regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation, the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) at least three (3) Business Days prior to the Sixteenth Amendment Effective Date (to the extent such documentation and information has been requested by any Specified Agent and/or Additional Lender (as applicable) not less than eight (8) Business Days prior to the Sixteenth Amendment Effective Date).
SECTION 4.
Representations and Warranties. On and as of the Sixteenth Amendment Effective Date, each Loan Party represents and warrants to each of the Specified Agents and each of the Additional Lenders:
(a)
Authorization; Enforceability. The entering into of the Amendment by each Loan Party is within such Loan Party’s powers and has been duly authorized by all necessary limited liability company, partnership or corporate action on the part of such Loan Party. The Amendment has been duly executed and delivered by each Loan Party and constitutes a legal, valid and binding obligation of such Loan Party, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.
(b)
No Conflicts. The entering into of the Amendment by each Loan Party (i) does not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except (1) such as have been obtained or made and are in full force and effect, (2) filings necessary to perfect Liens created by the Loan Documents and (3) consents, approvals, registrations, filings, permits or actions the failure to obtain or perform which could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect; (ii) will not violate the Organizational Documents of any Loan Party; (iii) will not violate any Requirement of Law; (iv) will not violate or result in a default or require any consent or approval under any indenture, agreement or other instrument binding upon any Company or its property, or give rise to a right thereunder to require any payment to be made by any Company; (v) will not violate any order, judgment or decree of any court or other agency of government binding on any Company and (vi) will not result in the creation or imposition of any Lien on any property of any Company, except Liens created by the Loan Documents and Permitted Liens; except in the case of clauses (i), (iii), (iv), and (v) to the extent such violation, conflict, breach or default could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.
SECTION 5.
Ratification of Liability. As of the Sixteenth Amendment Effective Date, the Borrower and the other Loan Parties, as debtors, grantors, pledgors, guarantors, assignors, or in other similar capacities in which such parties grant liens or security interests in their properties or otherwise act as accommodation parties or guarantors, as the case may be, under the Loan Documents to which they are a party, hereby ratify and reaffirm all of their payment and performance obligations and obligations to indemnify, contingent or otherwise, under each of such Loan Documents to which they are a party, and ratify and reaffirm their grants of liens on or security interests in their properties pursuant to such Loan Documents to which they are a party, respectively, as security for the Obligations, and as of the Sixteenth Amendment Effective Date, each such Person hereby confirms and agrees that such liens and security interests hereafter secure all of the Obligations, including, without limitation, all additional Obligations

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hereafter arising or incurred pursuant to or in connection with the Amendment, the Amended Credit Agreement or any other Loan Document. As of the Sixteenth Amendment Effective Date, the Borrower and the other Loan Parties further agree and reaffirm that the Loan Documents to which they are parties now apply to all Obligations as defined in the Amended Credit Agreement (including, without limitation, all additional Obligations hereafter arising or incurred pursuant to or in connection with this Amendment, the Amended Credit Agreement or any other Loan Document). As of the Sixteenth Amendment Effective Date, the Borrower and the other Loan Parties (a) further acknowledge receipt of a copy of the Amendment, (b) consent to the terms and conditions of same, and (c) agree and acknowledge that each of the Loan Documents to which they are a party remain in full force and effect and is hereby ratified and confirmed.
SECTION 6.
Reference to and Effect upon the Credit Agreement.
(a)
Except as specifically amended hereby, all terms, conditions, covenants, representations and warranties contained in the Amended Credit Agreement and other Loan Documents, and all rights of the Secured Parties and all of the Obligations, shall remain in full force and effect. As of the Sixteenth Amendment Effective Date, the Borrower and the other Loan Parties hereby confirm that the Amended Credit Agreement and the other Loan Documents are in full force and effect and that neither the Borrower nor any other Loan Party has any right of setoff, recoupment or other offset or any defense, claim or counterclaim with respect to any of the Obligations, the Amended Credit Agreement or any other Loan Document.
(b)
Except as specifically set forth herein, the execution, delivery and effectiveness of this Amendment shall not directly or indirectly (i) constitute a consent or waiver of any past, present or future violations of any provisions of the Credit Agreement or any other Loan Documents nor constitute a novation of any of the Obligations under the Credit Agreement or other Loan Documents or (ii) constitute a course of dealing or other basis for altering any Obligations or any other contract or instrument.
(c)
From and after the Sixteenth Amendment Effective Date, (i) the term “Agreement” in the Credit Agreement, and all references to the Credit Agreement in any other Loan Document, shall mean the Credit Agreement, as amended by this Amendment, (ii) the term “Loan Documents” in the Credit Agreement and the other Loan Documents shall include, without limitation, the Amendment and any agreements, instruments and other documents executed and/or delivered in connection herewith and (iii) this Amendment shall for all purposes constitute an “Incremental Amendment” under and as defined in the Amended Credit Agreement.
(d)
This Amendment shall not be deemed or construed to be a satisfaction, reinstatement, novation or release of the Credit Agreement or any other Loan Document.
SECTION 7.
Governing Law; Jurisdiction; Consent to Service of Process. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK. THE PROVISIONS OF SECTION 10.09(b), (c) and (d) OF THE AMENDED CREDIT AGREEMENT ARE INCORPORATED HEREIN BY REFERENCE, MUTATIS MUTANDIS, AS IF FULLY SET FORTH HEREIN.
SECTION 8.
Counterparts; Integration. This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Amendment and any separate letter agreements with respect to fees payable to the Agents or the Lenders listed on the signature pages hereto, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Delivery

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of an executed counterpart of a signature page of this Amendment by telecopier or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Amendment.
SECTION 9.
Severability. Any provision of this Amendment 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.
SECTION 10.
Headings. Article and Section headings used herein are for convenience of reference only, are not part of this Amendment and shall not affect the construction of, or be taken into consideration in interpreting, this Amendment.
SECTION 11.
Notices. All notices, requests, and demands to or upon the respective parties hereto shall be given in accordance with the Amended Credit Agreement.
SECTION 12.
Expenses. The Borrower agrees to pay all reasonable documented out-of-pocket expenses of Paul Hastings LLP, counsel to the Administrative Agent and the Collateral Agent, and Willkie Farr & Gallagher LLP, counsel to the Additional Lenders, in connection with the negotiation, preparation, execution and delivery of this Amendment, as well as ongoing reasonable documented out-of-pocket expenses incurred after the Sixteenth Amendment Effective Date in connection herewith, in each case in accordance with Section 10.03 of the Amended Credit Agreement.
SECTION 13.
Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE REQUIREMENTS OF LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AMENDMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 13.
SECTION 14.
Agent Authorization. Each of the undersigned Lenders hereby authorizes the Specified Agents to execute and deliver this Amendment and the other documents entered into in connection herewith on its behalf, and by its execution below, each of the undersigned Lenders agrees to be bound by the terms and conditions of this Amendment and such other documents.

[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officers as of the day and year first above written.

 

LOAR GROUP INC.,

as Borrower

By: /s/ Glenn D’Alessandro

Name: Glenn D’Alessandro
Title: Chief Financial Officer

LOAR HOLDINGS INC.,
as Holdings

By: /s/ Glenn D’Alessandro

Name: Glenn D’Alessandro
Title: Chief Financial Officer

XPEDITION HOLDINGS, INC.
AGC ACQUISITION LLC
FREEMAN COMPOSITES COMPANY LLC
AVIATION MANUFACTURING GROUP, LLC
SAF INDUSTRIES LLC
TERRY’S PRECISION PRODUCTS LLC
GENERAL ECOLOGY, INC.
APPLIED ENGINEERING, INC.
MAVERICK MODLING CO.
SMR ACQUISITION LLC
BAM INC.
HYDRA-ELECTRIC COMPANY
PACIFIC PISTON RING CO., INC.
SAFE FLIGHT INSTRUMENT, LLC,
DAC ENGINEERED PRODUCTS, LLC
AOG-SEGINUS HOLDING COMPANY, LLC
SEGINUS AEROSPACE LLC
AOG AVIATION SPARES LLC,
CAV ICE PROTECTION, INC.
as Guarantors
 

By: /s/ Glenn D’Alessandro

Name: Glenn D’Alessandro
Title: Chief Financial Officer

 

[Signature Page to Sixteenth Amendment to Credit Agreement]

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ST. JULIAN MATERIALS, LLC, as a Guarantor

By: /s/ Glenn D’Alessandro

Name: Glenn D’Alessandro

Title: Manager

SCHROTH ACQUISITION GMBH, as a Guarantor

By: /s/ Martin Nadol

Name: Martin Nadol

Title: Managing Director

SCHROTH SAFETY PRODUCTS GMBH, as a Guarantor

By: /s/ Martin Nadol

Name: Martin Nadol

Title: Managing Director

 

SCHROTH SAFETY PRODUCTS LLC, as a Guarantor

By: /s/ Glenn D’Alessandro

Name: Glenn D’Alessandro

Title: Chief Financial Officer

 

 

[Signature Page to Sixteenth Amendment to Credit Agreement]

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First Eagle ALTernative Credit, LLC (as successor by merger to FIRST EAGLE PRIVATE CREDIT, LLC (f/k/a NEWSTAR FINANCIAL, INC.)), as Administrative Agent and Collateral Agent

 

 

By: /s/ Renee Cedorchuk

Name: Renee Cedorchuk
Title: Authorized Signor

 

[Signature Page to Sixteenth Amendment to Credit Agreement]

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BLACKSTONE PRIVATE CREDIT FUND, as an Additional Lender

 

By: Blackstone Credit BDC Advisors LLC, as investment advisor

 

 

 

By: /s/ Marisa Beeney

Name: Marisa Beeney
Title: Authorized Signatory

[Signature Page to Sixteenth Amendment to Credit Agreement]

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Annex A

Schedule 2.01

Lender Commitments

Lender

2024 Incremental Revolving Credit Commitment

LC Commitment

Initial Term Loans

Delayed Draw Term Loan Commitment

Sixteenth Amendment Incremental Term Loan Commitment

BCRED DENALI PEAK FUNDING LLC

$0.00

$0.00

$14,787,436.31

$0.00

-

BCRED CLO 2023-1 LLC

$0.00

$0.00

$4,493,997.41

$0.00

-

BCRED MML CLO 2022-1 LLC

$0.00

$0.00

$5,083,400.37

$0.00

-

BCRED MML CLO 2021-1 LLC

$0.00

$0.00

$4,728,542.92

$0.00

-

BCRED MML CLO 2022-2 LLC

$0.00

$0.00

$3,818,699.70

$0.00

-

Blackstone Private Credit Fund

$0.00

$0.00

$30,206,638.23

$100,000,000.00

$360,000,000

BCRED Bushnell Peak Funding LLC

$0.00

$0.00

$18,965,409.13

$0.00

 

BCRED Middle Peak Funding LLC

$0.00

$0.00

$10,268,207.90

$0.00

 

BCRED Bison Peak Funding LLC

$0.00

$0.00

$9,451,281.77

$0.00

 

BCRED SUMMIT PEAK FUNDING LLC

$0.00

$0.00

$66,208,302.11

$0.00

 

BCRED Windom Peak Funding LLC

$0.00

$0.00

$11,094,303.77

$0.00

-

BCRED Granite Peak Funding LLC

$0.00

$0.00

$56,707,690.59

$0.00

-

BCRED Haydon Peak Funding LLC

$0.00

$0.00

$17,084,688.24

$0.00

-

Citibank, N.A.

$30,000,000.00

$15,000,000

$0.00

$0.00

-

Royal Bank of Canada

$20,000,000.00

$10,000,000

$0.00

$0.00

-

Total

$50,000,000.00

$25,000,000

$252,898,598.45

$100,000,000.00

$360,000,000

 

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Annex B

Amended Credit Agreement

See attached

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Annex AB

Conformed through the FifteenthSixteenth Amendment to Credit Agreement, dated as of May 10August 26, 2024

 

 

CREDIT AGREEMENT

dated as of October 2, 2017

among

LOAR HOLDINGS INC.,

as Holdings,

Loar Merger Sub, Inc.,

as the Initial Borrower,

(to be merged with and into LOAR GROUP INC. pursuant to the Closing Date Merger, with LOAR GROUP INC. as the surviving person and the Borrower hereunder upon and following the consummation of the Closing Date Merger),
 

THE GUARANTORS PARTY HERETO,
as Guarantors,

THE LENDERS PARTY HERETO,

FIRST EAGLE ALTERNATIVE CREDIT, LLC (as successor by merger to FIRST EAGLE PRIVATE CREDIT, LLC (f/k/a NEWSTAR FINANCIAL, INC.)),
as Administrative Agent and Collateral Agent,

and

CITIBANK, N.A.,
as Revolving Administrative Agent

 

 

 

 

 

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TABLE OF CONTENTS

Page

ARTICLE I DEFINITIONS 28

SECTION 1.01 Defined Terms 28

SECTION 1.02 Classification of Loans 6469

SECTION 1.03 Terms Generally 6469

SECTION 1.04 Accounting Terms; GAAP 6570

SECTION 1.05 Time Reference 6570

SECTION 1.06 Limited Condition Transactions 6570

SECTION 1.07 Resolution of Drafting Ambiguities 6671

SECTION 1.08 German Terms 6671

SECTION 1.09 Calculations 6672

SECTION 1.10 Agents 6772

SECTION 1.11 Revolver Payment Priority Principles 6873

ARTICLE II THE CREDITS 7075

SECTION 2.01 Commitments 7075

SECTION 2.02 Letters of Credit 7075

SECTION 2.03 Borrowing Procedure 7782

SECTION 2.04 Evidence of Debt; Repayment of Loans 7883

SECTION 2.05 Fees 7984

SECTION 2.06 Interest on Loans 7984

SECTION 2.07 Termination and Reduction of Commitments 8186

SECTION 2.08 Scheduled Repayment of Loans 8287

SECTION 2.09 Prepayments of Loans 8388

SECTION 2.10 Alternate Rate of Interest 8691

SECTION 2.11 Yield Protection 8893

SECTION 2.12 Breakage Payments 8994

SECTION 2.13 Payments Generally; Pro Rata Treatment; Sharing of Setoffs 8994

SECTION 2.14 Taxes 9196

SECTION 2.15 Mitigation Obligations; Replacement of Lenders 9499

SECTION 2.16 Extension Amendments 95100

SECTION 2.17 Incremental Credit Extensions 97102

SECTION 2.18 Defaulting Lenders 101106

ARTICLE III REPRESENTATIONS AND WARRANTIES 103108

SECTION 3.01 Organization; Powers 103108

SECTION 3.02 Authorization; Enforceability 104109

SECTION 3.03 No Conflicts 104109

SECTION 3.04 Financial Statements; Projections 104109

SECTION 3.05 Properties 105110

SECTION 3.06 Intellectual Property 105110

SECTION 3.07 Equity Interests and Subsidiaries 106111

SECTION 3.08 Litigation; Compliance with Laws 106111

SECTION 3.09 Federal Reserve Regulations 107112

SECTION 3.10 Investment Company Act 107112

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SECTION 3.11 Use of Proceeds 107112

SECTION 3.12 Taxes 107112

SECTION 3.13 No Material Misstatements 107112

SECTION 3.14 Labor Matters 108113

SECTION 3.15 Solvency 108113

SECTION 3.16 Employee Benefit Plans 108113

SECTION 3.17 Environmental Matters 109113

SECTION 3.18 Insurance 109114

SECTION 3.19 Security Documents 110115

SECTION 3.20 USA PATRIOT Act and Sanctions 110115

SECTION 3.21 Anti-Corruption Laws 110115

ARTICLE IV CONDITIONS TO CLOSING 111116

SECTION 4.01 Conditions to Closing 111116

SECTION 4.02 Conditions to each Delayed Draw Term Loan Funding Date 114119

SECTION 4.03 Conditions to Revolving Credit Extensions 115120

ARTICLE V AFFIRMATIVE COVENANTS 115120

SECTION 5.01 Financial Statements, Reports, etc 115120

SECTION 5.02 Notices 117122

SECTION 5.03 Existence; Properties and Intellectual Properties 118123

SECTION 5.04 Insurance 118123

SECTION 5.05 Taxes 119124

SECTION 5.06 Employee Benefits 119124

SECTION 5.07 Maintaining Records; Access to Properties and Inspections 119124

SECTION 5.08 Use of Proceeds 120124

SECTION 5.09 Compliance with Environmental Laws 120124

SECTION 5.10 Additional Collateral; Additional Guarantors 120125

SECTION 5.11 Security Interests; Further Assurances 121126

SECTION 5.12 Information Regarding Collateral 122127

SECTION 5.13 Compliance with Law; Regulations; Etc 122127

SECTION 5.14 [Reserved] 122127

SECTION 5.15 Post-Closing Matters 122127

SECTION 5.16 [Reserved] 122127

SECTION 5.17 Post-Schroth Acquisition Requirements Regarding the Schroth German Subsidiaries 122127

ARTICLE VI NEGATIVE COVENANTS 122127

SECTION 6.01 Indebtedness 123127

SECTION 6.02 Liens 126131

SECTION 6.03 Restrictions on Fundamental Changes 129133

SECTION 6.04 Disposal of Assets 129134

SECTION 6.05 Nature of Business 130135

SECTION 6.06 Amendments 130135

SECTION 6.07 Restricted Payments; Investments 130135

SECTION 6.08 Limitation on Certain Restrictive Agreements 132137

SECTION 6.09 Financial Covenants 134139

SECTION 6.10 Change in Fiscal Year 134139

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SECTION 6.11 Transactions with Affiliates 134139

SECTION 6.12 Holdings 136140

SECTION 6.13 Compliance with Anti-Terrorism Laws; Anti-Corruption Laws; OFAC 136141

ARTICLE VII GUARANTEE 137142

SECTION 7.01 The Guarantee 137142

SECTION 7.02 Obligations Unconditional 138143

SECTION 7.03 Reinstatement 139144

SECTION 7.04 Subrogation; Subordination 139144

SECTION 7.05 Remedies 140144

SECTION 7.06 [Reserved] 140145

SECTION 7.07 Continuing Guarantee 140145

SECTION 7.08 General Limitation on Guarantee Obligations 140145

SECTION 7.09 Release of Guarantors 140145

SECTION 7.10 Keepwell 140145

SECTION 7.11 Right of Contribution 141145

SECTION 7.12 German Guarantee Limitation 141146

ARTICLE VIII EVENTS OF DEFAULT 144148

SECTION 8.01 Events of Default 144148

SECTION 8.02 Rescission 147151

SECTION 8.03 Application of Proceeds 147152

SECTION 8.04 Right to Cure 148153

ARTICLE IX THE REVOLVING ADMINISTRATIVE AGENT, ADMINISTRATIVE AGENT AND THE COLLATERAL AGENT 150154

SECTION 9.01 Appointment and Authority 150154

SECTION 9.02 Rights as a Lender or the Issuing Bank 151156

SECTION 9.03 Exculpatory Provisions 151156

SECTION 9.04 Reliance by Agent 152157

SECTION 9.05 Delegation of Duties 153157

SECTION 9.06 Replacement or Resignation of Agent 153157

SECTION 9.07 Non-Reliance on Agent and Other Lenders 154158

SECTION 9.08 No Reliance on Administrative Agent’s Customer Identification Program 154158

SECTION 9.09 Withholding Tax 154159

SECTION 9.10 Enforcement 155159

SECTION 9.11 Collateral Matters 155159

SECTION 9.12 Agency for Perfection 156161

SECTION 9.13 [Reserved] 156161

SECTION 9.14 Collateral Agent May File Proofs of Claim 156161

SECTION 9.15 Knowledge 157162

SECTION 9.16 Reliance 157162

SECTION 9.17 Parallel Debt 157162

SECTION 9.18 Intercreditor Agreements 158163

SECTION 9.19 Erroneous Payments 159163

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ARTICLE X MISCELLANEOUS 160165

SECTION 10.01 Notices 160165

SECTION 10.02 Waivers; Amendment 163168

SECTION 10.03 Expenses; Indemnity; Damage Waiver 166171

SECTION 10.04 Successors and Assigns 168173

SECTION 10.05 Survival of Agreement 172177

SECTION 10.06 Counterparts; Integration; Effectiveness; Electronic Execution 172177

SECTION 10.07 Severability 173178

SECTION 10.08 Right of Setoff 173178

SECTION 10.09 Governing Law; Jurisdiction; Consent to Service of Process 173178

SECTION 10.10 Waiver of Jury Trial 174179

SECTION 10.11 Headings 174179

SECTION 10.12 Treatment of Certain Information; Confidentiality 174179

SECTION 10.13 USA PATRIOT Act Notice and Customer Verification 175180

SECTION 10.14 Interest Rate Limitation 175180

SECTION 10.15 Requirement for Further Actions 176180

SECTION 10.16 Acknowledgement and Consent to Bail-In of Affected Financial Institutions 176181

SECTION 10.17 Acknowledgement Regarding Any Supported QFCs 176181

 

 

 

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SCHEDULES

Schedule 1.01(a) Subsidiary Guarantors

Schedule 2.01 Lender Commitments

Schedule 3.05 Real Property

Schedule 3.06(b) Intellectual Property - Registrations

Schedule 3.06(c) Intellectual Property - No Violations or Proceedings

Schedule 3.07(a) Equity Interests

Schedule 3.07(b) Organizational Chart

Schedule 3.17 Environmental Matters

Schedule 3.18 Insurance

Schedule 3.19 Filing Offices

Schedule 5.15 Post-Closing Matters

Schedule 5.17 Post-Schroth Acquisition Requirements Regarding the
Schroth German Subsidiaries

Schedule 6.01(b) Existing Indebtedness

Schedule 6.02(c) Existing Liens

Schedule 6.07(a) Existing Investments
Schedule 6.11 Affiliate Transactions

EXHIBITS

Exhibit A Form of Assignment and Assumption

Exhibit B Form of Borrowing Request

Exhibit C Form of Compliance Certificate

Exhibit D Form of Interest Election Request

Exhibit E Form of Joinder Agreement

Exhibit F Form of Note

Exhibit G-1 Form of Perfection Certificate

Exhibit G-2 Form of Perfection Certificate Supplement

Exhibit H Form of U.S. Tax Compliance Certificate

Exhibit I Form of Solvency Certificate

Exhibit J Agreed Security Principles

Exhibit K Form of LC Request

 

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CREDIT AGREEMENT

CREDIT AGREEMENT (this “Agreement”) dated as of October 2, 2017 among LOAR MERGER SUB, INC., a Delaware corporation (the “Initial Borrower”) (to be merged with and into LOAR GROUP INC., a Delaware corporation (“Loar Group”), pursuant to the Closing Date Merger (such term and each other capitalized term used but not defined herein or in the Recitals below having the meaning given to it in Article I), with Loar Group as the survivor of such Closing Date Merger; the Initial Borrower or Loar Group, as applicable, in its capacity as the borrower hereunder being referred to herein as the “Borrower”), Loar Holdings, INC., a Delaware corporation and the direct parent of the Borrower (“Holdings”), the other Guarantors party hereto from time to time, the lending institutions party hereto from time to time as lenders (the “Lenders”), FIRST EAGLE ALTERNATIVE CREDIT, LLC (as successor by merger to FIRST EAGLE PRIVATE CREDIT, LLC (f/k/a NEWSTAR FINANCIAL, INC.), as administrative agent for the Lenders (in such capacity, the “Administrative Agent”) and as collateral agent for the Secured Parties (in such capacity, the “Collateral Agent”) and CITIBANK, N.A. (“Citibank”), as administrative agent for the Revolving Lenders (in such capacity, the “Revolving Administrative Agent”) and as an Issuing Bank.

WITNESSETH:

WHEREAS, the Closing Date Investors acquired indirectly all of the issued and outstanding Equity Interests of each of Loar Group and Xpedition Holdings, Inc., a Delaware corporation (“Xpedition” and, together with Loar Group, the “Loar Target”), pursuant to the Stock Purchase Agreement and Agreement and Plan of Merger, dated as of September 8, 2017 (the “Loar Acquisition Agreement”), among the Initial Borrower, Holdings, Loar Group and the Seller;

WHEREAS, pursuant to the Loar Acquisition Agreement, prior to the Closing Date, (a) the Seller and its direct and indirect parents distributed shares of capital stock of Loar Group (the “Distributed Shares”) to the Rollover Investors, (b) the Rollover Investors contributed the Distributed Shares to Parent in exchange for equity interests of Parent and (c) Parent contributed the Distributed Shares to Holdings (the “Contribution”);

WHEREAS, pursuant to the Loar Acquisition Agreement, Holdings acquired (together with the Contribution, the “Loar Acquisition”) all of the issued and outstanding Equity Interests of the Loar Target that are not Distributed Shares by (a) the merger (the “Closing Date Merger”) of the Initial Borrower with and into Loar Group with Loar Group as the surviving person and (b) the acquisition by Holdings of the issued and outstanding Equity Interests of Xpedition;

WHEREAS, to fund, in part, the Loar Acquisition, the Closing Date Investors provided an equity investment (the “Equity Contribution”) in Holdings or its direct or indirect parent company of at least 50% of an amount equal to the sum of (a) the Equity Contribution and (b) the aggregate principal amount of the Initial Term Loans incurred on the Closing Date, with all of such equity investment to be made in cash in exchange for common Equity Interests (or, solely in the case of the Rollover Investors, rollover into common Equity Interests), the cash proceeds of which were applied to consummate the Transactions or, to the extent not so applied, contributed to the Borrower in cash in respect of common Equity Interests;

WHEREAS, to also fund, in part, the Loar Acquisition and for the other purposes set forth in Section 3.11, the Borrower requested the Lenders to extend credit to the Borrower, in each case on the Closing Date, in the form of (a) Initial Term Loans in an aggregate principal amount of $160,000,000, (b) Delayed Draw Term Loan Commitments in an aggregate principal amount of $40,000,000, and (c) Revolving Credit Commitments in an aggregate principal amount of $20,000,000; and

 


 

WHEREAS, (a) the Borrower has agreed to secure all of its Obligations by granting to the Collateral Agent, for the benefit of the Secured Parties, a Lien on substantially all of its assets pursuant to the Security Documents (subject to exceptions noted herein and therein) and (b) the Guarantors have agreed to guarantee the Obligations of the Borrower hereunder and to secure their respective Obligations by granting to the Collateral Agent, for the benefit of the Secured Parties, a Lien on substantially all of their respective assets pursuant to the Security Documents (subject to exceptions noted herein and therein).

NOW, THEREFORE, on the basis of the foregoing and the mutual covenants and other agreements set forth herein, the Lenders are willing to extend such credit to the Borrower and each Issuing Bank is willing to issue letters of credit for the account of the Borrower and its Subsidiaries, in each case, on the terms and subject to the conditions set forth herein. Accordingly, the parties hereto hereby agree as follows:

ARTICLE I


DEFINITIONS
SECTION 1.01
Defined Terms. As used in this Agreement, the following terms shall have the meanings specified below:

ABR Loan” shall mean any Loan bearing interest at a rate determined by reference to the Alternate Base Rate in accordance with the provisions of Article II.

Acceptable Intercreditor Agreement” means an intercreditor agreement, the terms of which are reasonably satisfactory to the Collateral Agent and the Borrower; provided, however, that no intercreditor agreement shall be an Acceptable Intercreditor Agreement unless the terms thereof satisfy the Revolver Payment Priority Principles.

Account” shall mean an account (as that term is defined in the UCC).

Acquired EBITDA” shall mean, with respect to any Acquired Entity or Business for any period, the amount for such period of Consolidated EBITDA of such Acquired Entity or Business (determined as if references to Holdings and the Subsidiaries in the definition of “Consolidated EBITDA” were references to such Acquired Entity or Business and its Subsidiaries), all as determined on a consolidated basis for such Acquired Entity or Business.

Acquired Entity or Business” shall have the meaning assigned to such term in the definition of “Consolidated EBITDA.”

Acquisition” shall mean any transaction or series of related transactions, consummated on or after the Closing Date, by which the Borrower directly, or indirectly through one or more Subsidiaries, (a) acquires any business, division thereof or line of business, or all or substantially all of the assets, of any person, whether through purchase of assets, merger or otherwise, or (b) acquires Equity Interests of any person having at least a majority of the ordinary voting power of the then outstanding Equity Interests of such person (any such business, division, line of business, assets or person so acquired, a “Target”).

Additional Lenders” shall have the meaning assigned to such term in Section 2.17(b).

Administrative Agent” shall have the meaning assigned to such term in the preamble hereto and includes each other person appointed as the successor thereof pursuant to Article IX.

 


 

Administrative Questionnaire” shall mean an Administrative Questionnaire in the form provided by the Administrative Agent.

Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK Financial Institution.

Affiliate” shall mean, when used 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. Notwithstanding the foregoing, in no event shall Blackstone, any Blackstone Designees or any Affiliate of Blackstone or of any Blackstone Designee constitute an Affiliate of Holdings and its Subsidiaries for purposes of this Agreement and the other Loan Documents.

Affiliated Lender” shall mean a Lender that is a Closing Date Investor pursuant to any of clauses (a), (b), (c) or (d) of the definition thereof, or any Affiliate of the foregoing. In no event shall Blackstone, any Blackstone Designees or any Affiliate of Blackstone or any Blackstone Designee constitute an Affiliated Lender for purposes of this Agreement and the other Loan Documents.

Affiliate Transaction” shall have the meaning assigned to such term in Section 6.11(a).

Agency Fee Letter” shall mean that certain Fee Letter, dated as of even date herewith, by and between the Borrower, the Administrative Agent and the Collateral Agent.

Agents” shall mean the Revolving Administrative Agent, the Administrative Agent and the Collateral Agent; and “Agent” shall mean either of them, in each case, as the context may require.

Aggregate Commitments” shall mean the Commitments of all the Lenders.

Agreement” shall have the meaning assigned to such term in the preamble hereto.

Agreed Security Principles” shall mean the security principles set forth on Exhibit J.

All-In Yield” shall mean, with respect to any Indebtedness, the effective yield on such Indebtedness determined in a manner consistent with generally accepted financial practices, taking into account the applicable interest rate margins, any interest rate floors (the effect of which floors shall be determined in a manner set forth in the proviso below), or similar devices and upfront or similar fees or original issue discount (amortized over the shorter of (i) the remaining weighted average life to maturity of such Indebtedness and (ii) the four years following the date of incurrence thereof) payable generally to Lenders or other institutions providing such Indebtedness, but excluding any arrangement, underwriting, structuring, ticking, commitment or other fees payable in connection therewith that are not generally shared with the relevant lenders providing such Indebtedness and, if applicable, consent fees for an amendment paid generally to consenting Lenders; provided that with respect to any Indebtedness that includes an interest rate floor, (a) to the extent that Term SOFR (with an Interest Period of three months) (without giving effect to any floors in such definitions) on the date that the All-In Yield is being calculated is less than such floor, the amount of such difference shall be deemed added to the interest rate margin for such Indebtedness for the purpose of calculating the All-In Yield, and (b) to the extent that Term SOFR (with an Interest Period of three months) (without giving effect to any floors in such definitions) on the date that the All-In Yield is being calculated is greater than such floor, then the floor shall be disregarded in calculating the All-In Yield.

Alternate Base Rate” shall mean, for any day, a fluctuating rate per annum (rounded upward, if necessary, to the nearest 1/100th of 1%) equal to the greatest of (a) the Base Rate in effect on

 


 

such day, (b) the Federal Funds Effective Rate in effect on such day, plus 0.50% and (c) Term SOFR for an Interest Period of one (1) month commencing on such day, plus 1.00%, in each instance, as of such date of determination. If the Revolving Administrative Agent or Administrative Agent, as applicable, shall have determined (which determination shall be conclusive absent manifest error) that it is unable to ascertain the Federal Funds Effective Rate for any reason, including the inability or failure of such Agent to obtain sufficient quotations in accordance with the terms of the definition thereof, the Alternate Base Rate shall be determined without regard to clause (b) of the preceding sentence until the circumstances giving rise to such inability no longer exist. Any change in the Alternate Base Rate due to a change in the Base Rate or the Federal Funds Effective Rate shall be effective on the effective date of such change in the Base Rate or the Federal Funds Effective Rate, respectively.

Anti-Corruption Laws” shall mean any and all Requirements of Law concerning or relating to bribery or corruption applicable to Holdings or its Subsidiaries by virtue of such Person being organized or operating in any applicable jurisdiction.

Anti-Terrorism Laws shall mean any and all Requirements of Law related to terrorism financing or money laundering issued or promulgated by a Governmental Authority that are applicable to Holdings or its Subsidiaries by virtue of such Person being organized or operating in the applicable jurisdiction of such Governmental Authority, including OFAC and the Trading with the Enemy Act.

Applicable Loan Margin” shall mean, as of any day:

(I) with respect to Initial Term Loans (including, for the avoidance of doubt, the Sixteenth Amendment Incremental Term Loans) and Delayed Draw Term Loans, (a) until delivery of a Compliance Certificate with respect to the first full fiscal quarter ending after the Fifteenth Amendment Effective Date pursuant to Section 5.01(d), (i) 4.75% per annum for Term SOFR Loans and (ii) 3.75% per annum for ABR Loans and (b) thereafter, the following percentages per annum, based upon the Total Net Leverage Ratio as specified in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 5.01(d):

Pricing Level

Total Net Leverage Ratio

Term SOFR Loans

ABR Loans

1

> 6.25:1.00

5.25%

4.25%

2

< 6.25:1.00 and > 5.50:1.00

5.00%

4.00%

3

< 5.50:1.00

4.75%

3.75%

 

(II) with respect to Revolving Credit Loans and unused Revolving Credit Commitments under the Revolving Facility and Letter of Credit fees, 2.75% per annum for Term SOFR Loans and Letter of Credit fees, (ii) 1.75% per annum for Base Rate Loans and (iii) 0.375% per annum for the Commitment Fee Rate for unused Revolving Credit Commitments.

Any increase or decrease in the Applicable Loan Margin resulting from a change in the Total Net Leverage Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 5.01(d)); provided that, in the case of clause (I) above, “Pricing Level 1” (as set forth above) shall automatically apply to the applicable Class as of (x) the first Business Day after the date on which a Compliance Certificate was required to have been delivered but was not delivered, and shall continue to so apply to and including the date on which such Compliance Certificate is so delivered (and thereafter the pricing level otherwise determined in accordance with this definition shall apply) or (y) the first Business Day after an Event of Default under Section 8.01(a) or (b) shall have occurred and be continuing, and shall continue to so apply to but excluding the date on which

 


 

such Event of Default is cured or waived (and thereafter the pricing level otherwise determined in accordance with this definition shall apply); provided, however, that notwithstanding anything to the contrary contained in this definition, the determination of the Applicable Loan Margin for any period shall be subject to Section 2.06(f).

Notwithstanding the foregoing, (x) the Applicable Loan Margin in respect of any Class of (I) Extended Revolving Credit Loans and Extended Revolving Credit Commitments or (II) Extended Term Loans, in each case, established pursuant to an Extension Amendment, shall be the applicable percentages per annum set forth in the relevant Extension Amendment, (y) the Applicable Loan Margin in respect of any Class of Incremental Term Loans or any Class of Incremental Revolving Credit Commitments (and the Incremental Revolving Credit Loans in respect thereof) shall be the applicable percentages per annum set forth in the relevant Incremental Amendment and (z) in the case of the Initial Term Loans and the Delayed Draw Term Loans, the Applicable Loan Margin shall be increased as, and to the extent, necessary to comply with the provisions of Section 2.17(d)(i)(E).

Applied Avionics Acquisition” shall mean the acquisition by the Borrower, directly or indirectly, of 100% of the Equity Interests of Applied Avionics, LLC, a Delaware limited liability company, formerly Applied Avionics, Inc., a Texas corporation) pursuant to the Applied Avionics Acquisition Agreement and the transactions related thereto.

Applied Avionics Acquisition Agreement” shall mean that certain Purchase Agreement, dated as of July 18, 2024, by and among AAI Holdings, Inc., Shareholder Representative Services LLC, Applied Avionics, Inc. and the Borrower (as amended, supplemented or otherwise modified from time to time).

Approved Fund” shall mean, with respect to any Lender, any person (other than a natural person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person)) that is engaged in making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course of its business and that is managed, administered, advised or sub-advised by (a) such Lender, (b) an Affiliate of such Lender or (c) an entity or an Affiliate of an entity that administers or manages such Lender.

Asset Sale” shall mean any conveyance, sale, lease, sublease, assignment, transfer or other disposition (including by way of merger or consolidation and including any Sale and Leaseback Transaction) of any property, excluding (a) sales of inventory and dispositions of cash and Cash Equivalents, in each case, in the ordinary course of business, by Holdings or any of its Subsidiaries and in a manner not otherwise prohibited hereunder; (b) fundamental changes permitted by Section 6.03(a), (b) and (d)(ii); (c) dispositions of obsolete, worn out or permanently retired assets or the disposition in the ordinary course of business of assets no longer used or useful in the conduct of the Companies’ business; (d) Equity Issuances by Holdings; (e) any conveyance, sale, lease, sublease, assignment, transfer, or other disposition by (i) any Loan Party to any other Loan Party or (ii) any Subsidiary that is not a Loan Party to any Loan Party or any other Subsidiary that is not a Loan Party; (f) any trade-in of an asset in the ordinary course of business, or sale or other disposition of property to the extent exchanged for credit against the purchase price of similar replacement property or the proceeds of such sale or disposition are promptly applied to the purchase price of similar replacement property; (g) the incurrence of Permitted Liens, (h) the making of Permitted Investments; (i) the making of Restricted Payments permitted hereunder; (j) to the extent allowable under Section 1031 of the Code, any exchange of like property (excluding any boot thereon) for other property used or useful in the conduct of the Companies’ business; (k) (i) the lease, assignment or sublease, license or sublicense of any real or personal property in the ordinary course of business and (ii) the exercise of termination rights with respect to any lease, sublease, license or sublicense or other agreement in the ordinary course of business; (l) improvements made to leased real property

 


 

disposed of to landlords pursuant to customary terms of leases entered into in the ordinary course of business; (m) any disposition of Receivables Assets in connection with any Receivables Facility permitted hereunder; (n) the conversion of accounts receivable to notes receivable or other dispositions of accounts receivable in the ordinary course of business in connection with the collection thereof; (o) the unwinding of any Hedging Obligations; (p) the intentional lapse or abandonment of intellectual property rights in the ordinary course of business or consistent with past practice, which in the reasonable good faith determination of the Borrower, are not material to the conduct of the business of Holdings and its Subsidiaries taken as a whole; and (q) any other conveyance, sale, lease, sublease, assignment, transfer or other disposition for an aggregate fair market value not to exceed the greater of (I) $12.0 million and (II) 10.0% of Consolidated EBITDA of Holdings and its Subsidiaries for the most recently ended Test Period per fiscal year.

Assignment and Assumption” shall mean an assignment and assumption entered into by a Lender and an assignee in substantially the form of Exhibit A or such other form as may be reasonably acceptable to the applicable Agent, in each case, that is provided to the applicable Agent.

Auction” shall have the meaning assigned to such term in Section 10.04(f)(ii).

Auction Manager” shall mean (a) the Administrative Agent or (b) any other financial institution or advisor engaged by the Borrower (whether or not an Affiliate of the Administrative Agent), reasonably acceptable to the Administrative Agent (acting at the direction of the Required Lenders), to act as an arranger in connection with any Auction pursuant to Section 10.04(f)(ii); provided, that the Administrative Agent shall not be designated as the Auction Manager without the written consent of the Administrative Agent (it being understood and agreed that the Administrative Agent shall be under no obligation to agree to act as the Auction Manager); provided, further, that none of Holdings or its Subsidiaries or Affiliates or any Affiliated Lender may act as the Auction Manager.

Auditors’ Determination” shall have the meaning assigned to such term in Section 7.12(b)(vi)(F).

Auto-Renewal Letter of Credit” shall have the meaning assigned to such term in Section 2.02(c)(ii).

Available Incremental Amount” shall mean, at any time from and after the Fifteenth Amendment Effective Date, the sum of (A) the greater of $116,000,000 and 100% of Consolidated EBITDA of Holdings and its Subsidiaries for the most recently ended Test Period (calculated on a Pro Forma Basis) (the “Incremental Starter Basket”), plus (B) the aggregate amount of all voluntary prepayments and repurchases of the Initial Term Loans, other Term Loans, Incremental Equivalent Debt and any other Indebtedness, in each case, to the extent (x) incurred in reliance on clause (A) above or this clause (B) or (y) secured on a pari passu basis with the Initial Term Loans (including, in each case, repurchases at or below par), in each case, in the principal amount of indebtedness prepaid or repurchased, and voluntary reductions of Revolving Credit Commitments, Incremental Revolving Credit Commitments and Incremental Equivalent Debt in the form of revolving credit commitments, in each case, to the extent (x) incurred in reliance on clause (A) above or this clause (B) or (y) secured on a pari passu basis with the Initial Term Loans and, in each case, made prior to the date of any such incurrence; provided that the relevant prepayment or assignment and purchase is not funded with long-term indebtedness (other than revolving indebtedness) (the “Prepayment Basket”) plus (C) an unlimited amount (the “Ratio-Based Incremental Basket”) so long as, on a Pro Forma Basis determined on the basis of the financial statements most recently required to be delivered to the Administrative Agent pursuant to Section 5.01(a) or (b), as the case may be (and assuming in the case of any Incremental Revolving Credit Commitment that is then being established, that any such Incremental Revolving Credit Commitments are drawn in full) and after giving

 


 

effect to the use of proceeds thereof, (1) in the case of Incremental Revolving Credit Commitments and Incremental Term Loan Commitments secured on a pari passu or junior lien basis with the Term Loans, the Total Net Leverage Ratio shall not exceed 5.50:1.00 and (2) in the case of Incremental Revolving Credit Commitments and Incremental Term Loan Commitments that are unsecured, the Total Net Leverage Ratio shall not exceed 6.50:1.00 (provided that to the extent the proceeds of any Incremental Facility are intended to be applied to finance a Limited Condition Transaction, the Total Net Leverage Ratio shall be tested as of the applicable Limited Conditionality Test Date), plus (D) in each case without duplication of the replaced or refinanced Loan or terminated Commitment (1) in the case of an Incremental Facility that serves to effectively extend the maturity of any Term Loans (or the Revolving Credit Loans and/or Revolving Credit Commitments) that are secured on a pari passu basis with the Initial Term Loans (or Revolving Loans), an amount equal to the portion of such Term Loans (or Revolving Credit Loans and/or Revolving Credit Commitments) to be concurrently replaced with such Incremental Facility and (2) in the case of any Incremental Facility that effectively replaces any Revolving Credit Commitment terminated pursuant to Section 2.15, an amount equal to the portion of the relevant Revolving Credit Commitments being concurrently terminated plus (E) the amount of Incremental Revolving Credit Commitments established on the Fifteenth Amendment Effective Date in a committed amount of $50,000,000 plus (F) $100,000,000 to establish Delayed Draw Term Loan Commitments on the Fifteenth Amendment Effective Date; provided, that, (w) the Borrower shall not be required to comply with the applicable Total Net Leverage Ratio in connection with the establishment of any Incremental Facility in the form of a delayed draw term loan facility under the Ratio-Based Incremental Basket as long as compliance with such Total Net Leverage Ratio, as applicable, is required in connection with any borrowing thereunder, (x) any Incremental Facility may be incurred under the Ratio-Based Incremental Basket regardless of whether there is capacity under the Incremental Starter Basket or the Prepayment Basket, (y) any substantially concurrent utilization of the Incremental Starter Basket or the Prepayment Basket (or any Revolving Credit Loans) shall be disregarded in calculating the Total Net Leverage Ratio for purposes of the Ratio-Based Incremental Basket and (z) any portion of any Incremental Facilities incurred in reliance on clause (A) or (B) shall automatically be reclassified as incurred under clause (C) at any time the Borrower satisfies the applicable Total Net Leverage Ratio under clause (C) on a Pro Forma Basis.

Available Tenor” shall mean, as of any date of determination and with respect to the then-current Benchmark, as applicable, (x) if the then-current Benchmark is a term rate or is based on a term rate, any tenor for such Benchmark or payment period for interest calculated with reference to such Benchmark, as applicable, that is or may be used for determining the length of an Interest Period pursuant to this Agreement as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of “Interest Period” pursuant to Section 2.10(f) or (y) if the then current Benchmark is not a term rate nor based on a term rate, any payment period for interest calculated with reference to such Benchmark pursuant to this Agreement as of such date.

Bail-In Action” shall mean the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

Bail-In Legislation” shall mean, (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

 


 

Base Rate” shall mean, for any day, a rate per annum equal to (x) in the case of the Revolving Credit Loans, the rate of interest in effect for such day as announced from time to time by the Revolving Administrative Agent as its “prime rate” and (y) in the case of any Term Loans, the rate last quoted by The Wall Street Journal as the “base rate on corporate loans posted by at least 70% of the nation’s largest banks” in the United States or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the Administrative Agent (which determination shall be conclusive absent manifest error)) or any similar release by the Federal Reserve Board (as determined by the Administrative Agent (which determination shall be conclusive absent manifest error)). Any change in the Base Rate due to a change in any of the foregoing shall be effective on the effective date of such change in the base rate for corporate loans or the “bank prime loan” rate, as the case may be.

Base Rate Term SOFR Determination Day” has the meaning set forth in the definition of “Term SOFR”.

Basket” means any amount, threshold, exception or value (including by reference to the First Lien Net Leverage Ratio, Total Net Leverage Ratio, Consolidated EBITDA or Consolidated Total Assets) permitted or prescribed with respect to any Lien, Indebtedness, Asset Sale, Investment, Restricted Payment, transaction, action, judgment or amount under any provision in this Agreement or any other Loan Document.

Benchmark” shall mean initially, Term SOFR Reference Rate; provided that if a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred with respect to the Term SOFR Reference Rate or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to Section 2.10(b) or (c).

Benchmark Replacement” shall mean, with respect to any Benchmark Transition Event or an Early Opt-in Election, as applicable, the sum of: (a) the alternate benchmark rate that has been selected by the Administrative Agent (at the direction of the Required Lenders) and the Borrower giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement to the then-current Benchmark for U.S. dollar-denominated syndicated credit facilities at such time and (b) the related Benchmark Replacement Adjustment; provided that in no event shall Benchmark Replacement be less than the Floor.

Benchmark Replacement Adjustment” shall mean, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent (at the direction of the Required Lenders) and the Borrower for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement Date or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated syndicated credit facilities.

Benchmark Replacement Date” shall mean the earliest to occur of the following events with respect to the then-current Benchmark:

 


 

(1) in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof);

(2) in the case of clause (3) of the definition of “Benchmark Transition Event”, the first date on which such Benchmark (or the published component used in the calculation thereof) has been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be non-representative; provided that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause (3) and even if any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date; or

(3) in the case of an Early Opt-in Election, the sixth (6th) Business Day after the date notice of such Early Opt-in Election is provided to the Lenders, so long as the Administrative Agent has not received, by 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Early Opt-in Election is provided to the Lenders, written notice of objection to such Early Opt-in Election from Lenders comprising the Required Lenders.

For the avoidance of doubt, the “Benchmark Replacement Date” will be deemed to have occurred in the case of clause (1) or (2) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

Benchmark Transition Event” shall mean the occurrence of one or more of the following events with respect to the then-current Benchmark:

(1) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

(2) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the regulatory supervisor for the administrator of such Benchmark (or such component), the Federal Reserve Board, the NYFRB, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or

(3) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are no longer, or as of a specified future date will not be, representative.

 


 

For the avoidance of doubt, a “Benchmark Transition Event” will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

Benchmark Unavailability Period” shall mean the period (if any) (x) beginning at the time that a Benchmark Replacement Date pursuant to clauses (1) or (2) of that definition has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 2.10 and (y) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 2.10.

Blackstone” shall mean Blackstone Alternative Credit Advisors LP.

Blackstone Designees” shall mean (a) Blackstone Holdings Finance Co. LLC and (b) any fund or account managed, advised, or sub-advised by Blackstone or its Affiliates.

Board” shall mean the Board of Governors of the Federal Reserve System of the United States.

Board of Directors” shall mean, with respect to any person, (a) in the case of any corporation, the board of directors of such person, (b) in the case of any limited liability company, the board of managers, board of directors, sole member or managing member, as applicable, of such person, (c) in the case of any partnership, the board of directors (or equivalent governing body) of the general partner of such person, and (d) in any other case, the functional equivalent of the foregoing.

Borrower” shall have the meaning assigned to such term in the preamble hereto.

Borrowing” shall mean a borrowing consisting of simultaneous Loans of the same Class and of the same Type and, in the case of Term SOFR Loans, having the same Interest Period.

Borrowing Request” shall mean a request by the Borrower for a Borrowing of Loans in accordance with Section 2.03, substantially in the form of Exhibit B or such other form as is reasonably acceptable to the applicable Agent.

Business Day” shall mean any day other than a Saturday, Sunday or other day on which banks in New York City are authorized or required by law to close; provided, however, that when used in connection with a Term SOFR Loan, the term “Business Day” shall be a day which is a U.S. Securities Business Day.

Capital Expenditures” shall mean all expenditures which, in accordance with GAAP, would be required to be capitalized and shown on the consolidated balance sheet of Holdings and its Subsidiaries, but excluding expenditures made in connection with the purchase, replacement, substitution or restoration of assets to the extent (a) financed from insurance proceeds (or other similar recoveries) paid on account of the loss of or damage to the assets being replaced or restored, (b) financed with cash awards of compensation arising from Casualty Events, (c) made as a tenant in leasehold improvements to the extent reimbursed by a landlord or reimbursed by a third party, (d) constituting a trade-in of an asset in the ordinary course of business to the extent no cash expenditure was made in connection therewith or (e) purchases of replacement property to the extent financed with a credit from the sale or other disposition of similar property or otherwise paid for with the proceeds of a sale or disposition of similar property that are promptly applied to such purchase price.

 


 

Capital Lease” shall mean, as applied to any Person, any lease of any property (whether real, personal, or mixed) by that Person as lessee that, in conformity with GAAP, is, or is required to be, accounted for as a finance lease on the balance sheet of that Person (for the avoidance of doubt, subject to Section 1.04).

Capital Lease Obligations” shall mean, at the time any determination thereof is to be made, the amount of the liability in respect of a Capital Lease that would at such time be required to be capitalized and reflected as a liability on a balance sheet (excluding the footnotes thereto) prepared in accordance with GAAP (for the avoidance of doubt, subject to Section 1.04); provided that Capital Lease Obligations shall, for the avoidance of doubt, exclude all Non-Finance Lease Obligations.

Cash Equivalents” shall mean, as to any person, (a) (i) Dollars, (ii) Euros, Yen, Canadian Dollars, Sterling or any national currency of any participating member state of the EMU, and (iii) in the case of any Foreign Subsidiary or any jurisdiction in which the Borrower or any Subsidiary conducts business, such other local currencies held by it from time to time in the ordinary course of business; (b) securities issued, or directly, unconditionally and fully guaranteed or insured, by the United States or any agency or instrumentality thereof (provided that the full faith and credit of the United States is pledged in support thereof) having maturities of not more than one year from the date of acquisition by such person; (c) marketable direct obligations issued or fully guaranteed by any state of the United States or any political subdivision of such state or any public instrumentality thereof maturing within one year from the date of acquisition thereof and, at the time of acquisition, having one of the two highest ratings obtainable from either Standard & Poor’s Rating Service or Moody’s Investors Service Inc.; (d) time deposits, overnight bank deposits and certificates of deposit of any Lender or any commercial bank having, or which is the principal banking subsidiary of a bank holding company organized under the laws of the United States, any state thereof or the District of Columbia having, capital and surplus aggregating in excess of $500,000,000 with maturities of not more than one year from the date of acquisition by such person; (e) repurchase obligations with a term of not more than 30 days for underlying securities of the types described in clause (b) above entered into with any bank meeting the qualifications specified in clause (d) above; (f) commercial paper issued by any person incorporated in the United States rated at least A-1 or the equivalent thereof by Standard & Poor’s Rating Service or at least P-1 or the equivalent thereof by Moody’s Investors Service Inc., and in each case maturing not more than one year after the date of acquisition by such person; (g) investments in money market funds substantially all of whose assets are comprised of securities of the types described in clauses (a) through (f) above; and (h) demand deposit accounts maintained in the ordinary course of business.

Cash Management Agreement” shall mean any agreement entered into from time to time by Holdings or any Subsidiary in connection with cash management services for collections, other Cash Management Services and for operating, payroll and trust accounts of such Person, including automatic clearing house services, controlled disbursement services, electronic funds transfer services, information reporting services, lockbox services, stop payment services and wire transfer services.

Cash Management Bank” shall mean any person that enters into a Cash Management Agreement with Holdings or any Subsidiary; provided that, in the case of any Secured Cash Management Agreement, if such person is not a Lender, (a) such person and the Secured Cash Management Agreement between such person and Holdings or its relevant Subsidiary are reasonably acceptable to the Administrative Agent and Collateral Agent (in each case, acting at the direction of the Required Lenders) and (b) such person executes and delivers to the Agents a letter agreement in form and substance reasonably acceptable to the Administrative Agent and the Collateral Agent (in each case, acting at the direction of the Required Lenders) and the Borrower pursuant to which such person (i) appoints such Agents as its agents under the applicable Loan Documents and (ii) agrees to be bound by the provisions of Article IX and Section

 


 

8.03 of this Agreement and corresponding or similar provisions in any Security Document, in each case, as if it were a Lender.

Cash Management Obligations” shall mean obligations owed by Holdings or any Subsidiary to any Cash Management Bank in connection with, or in respect of, any Cash Management Services.

Cash Management Services” shall mean (a) commercial credit cards, merchant card services, purchase or debit cards, including non-card e-payables services; (b) treasury management services (including controlled disbursement, overdraft, automatic clearing house fund transfer services, return items and interstate depository network services); (c) foreign exchange, netting and currency management services and (d) any other demand deposit or operating account relationships or other cash management services, including under any Cash Management Agreements.

Casualty Event” shall mean any involuntary loss of title, any involuntary loss of, damage to or any destruction of, or any condemnation or other taking (including by any Governmental Authority) of, any equipment, fixed assets, or real property of Holdings or any of its Subsidiaries. “Casualty Event” shall include but not be limited to any taking of all or any part of any Real Property of any person or any part thereof, in or by condemnation or other eminent domain proceedings pursuant to any Requirement of Law, or by reason of the temporary requisition of the use or occupancy of all or any part of any Real Property of any person or any part thereof by any Governmental Authority, civil or military, or any settlement in lieu thereof.

CERCLA” shall mean the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. § 9601 et seq., and all implementing regulations.

CFC” shall mean a “controlled foreign corporation” within the meaning of Section 957(a) of the Code.

CFC Holdco” shall mean a direct or indirect Subsidiary that (i) has no material assets other than the capital stock and, if applicable, indebtedness of one or more subsidiaries that are Foreign Subsidiaries that are CFCs or other CFC Holdcos or (ii) is treated as a disregarded entity for U.S. federal income tax purposes and owns capital stock of one or more Foreign Subsidiaries that are CFCs or other CFC Holdcos.

Change in Control” shall be deemed to have occurred if:

(a)
any Person (other than a Permitted Holder) or (2) Persons (other than one or more Permitted Holders) constituting a “group” (as such term is used in Section 13(d) and Section 14(d) of the Exchange Act), but excluding any employee benefit plan of such Person or “group” and any Person acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan, becomes the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act), directly or indirectly, of Voting Stock representing more than 35% of the aggregate voting power of the outstanding Voting Stock of Holdings and the percentage of aggregate voting power so held is greater than the percentage of the aggregate voting power represented by the Voting Stock of Holdings beneficially owned, directly or indirectly, in the aggregate by the Permitted Holders, unless the Permitted Holders have, at such time, the right or the ability by voting power, contract, or otherwise to elect or designate for election at least a majority of the board of directors (or analogous governing body) of Holdings; or
(b)
Holdings fails to directly legally own 100% of the outstanding Equity Interests of the Borrower.

 


 

Notwithstanding anything to the contrary in this definition or any provision of the Exchange Act, (A) if any group includes one or more Permitted Holders, the issued and outstanding Capital Stock of Holdings directly or indirectly owned by the Permitted Holders that are part of such group shall not be treated as being beneficially owned by such group or any other member of such group for purposes of this definition, (B) a Person or group shall be deemed not to beneficially own securities subject to an equity or asset purchase agreement, merger agreement, option agreement, warrant agreement or similar agreement (or voting or option or similar agreement related thereto) until the consummation of the acquisition of the securities in connection with the transactions contemplated by such agreement and (C) a Person or group will be deemed not to beneficially own the Capital Stock of another Person as a result of its ownership of Capital Stock or other securities of such other Person’s parent (or related contractual rights) unless it owns 50% or more of the Voting Stock of such Person’s parent.

 

Change in Law” shall mean the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or effectiveness of any law, treaty, order, policy, rule or regulation; (b) any change in any law, treaty, order, policy, rule or regulation or in the administration, interpretation, implementation or application thereof by any Governmental Authority; or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided, that notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (ii) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities pursuant to Basel III, in each case, shall be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.

Charges” shall have the meaning assigned to such term in Section 10.14.

CIP Regulations” shall have the meaning assigned to such term in Section 9.08.

Class” shall mean, with respect to the Loans and Commitments hereunder, the nature of such Loans and Commitments as (a) Initial Term Loans (including, for the avoidance of doubt, the Sixteenth Amendment Incremental Term Loans) and Initial Term Loan Commitments (including, for the avoidance of doubt, the Sixteenth Amendment Incremental Term Commitments), (b) Delayed Draw Term Loans and Delayed Draw Term Loan Commitments, (c) Extended Revolving Credit Loans and Extended Revolving Credit Commitments established pursuant to an Extension Amendment, (d) Incremental Term Loans and Incremental Term Loan Commitments, in each case, funded on the same date pursuant to the same terms and conditions, (e) Extended Term Loans established pursuant to an Extension Amendment, (f) Revolving Credit Loans and Revolving Credit Commitments or (g) Incremental Revolving Credit Loans and Incremental Revolving Credit Commitments, in each case, funded on the same date pursuant to the same terms and conditions.

Closing Date” shall mean the date on which the Initial Term Loans were funded pursuant to Section 2.01 hereunder.

Closing Date Investors” shall mean (a) the Sponsor and its Controlled Investment Affiliates; (b) Dirkson Charles and Brett Milgrim; (c) Glenn D’Alessandro, Mike Manella, Jim Mullen, Debra Wick, Doris Harms, Jonathan Mark Green, James M. Graham and Timothy S. Rozema; (d) Great Point Ventures, LLC (an investment vehicle of Paul Levy) and (e) Blackstone and/or certain Blackstone Designees designated by Blackstone.

Closing Date Material Adverse Effect” shall have the meaning assigned to “Material Adverse Effect” in the Loar Acquisition Agreement.

 


 

Closing Date Merger” shall have the meaning assigned to such term in the third recital hereto.

Code” shall mean the Internal Revenue Code of 1986, as amended.

Collateral” shall mean, collectively, all of the Security Agreement Collateral, the Mortgaged Property and all other real and personal property of whatever kind and nature subject or purported to be subject from time to time to a Lien under any Security Document.

Collateral Agent” shall have the meaning assigned to such term in the preamble hereto and includes each other person appointed as the successor thereof pursuant to Article X.

Commercial Tort Claims” shall have the meaning assigned to such term in the UCC.

Commitment Fee” shall have the meaning assigned to such term in the Section 2.05(b).

Commitments” shall mean Initial Term Loan Commitments, Delayed Draw Term Loan Commitments, Sixteenth Amendment Incremental Term Loan Commitments, Incremental Term Loan Commitments, Incremental Revolving Credit Commitments, Term Commitments or Revolving Credit Commitments, as the context may require.

Commodity Exchange Act” shall mean the Commodity Exchange Act (7 U.S.C. Section 1 et seq.), as amended from time to time, and any successor statute.

Communications” shall have the meaning assigned to such term in Section 10.01(b).

Companies” shall mean Holdings and its Subsidiaries, including the Borrower; and “Company” shall mean any one of them.

Compliance Certificate” shall mean a certificate of a Financial Officer of Holdings, substantially in the form of Exhibit C or such other form as may be reasonably acceptable to the Administrative Agent (acting at the direction of the Required Lenders).

Conforming Changes” shall mean, with respect to the use or administration of Term SOFR or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Alternate Base Rate,” the definition of “Business Day,” the definition of “U.S. Government Securities Business Day,” the definition of “Interest Period” or any similar or analogous definition (or the addition of a concept of “interest period”), timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the applicability of breakage provisions and other technical, administrative or operational matters) that the Revolving Administrative Agent and the Administrative Agent, as applicable, decides, in consultation with the Borrower, may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the applicable Agent in a manner substantially consistent with market practice (or, if the applicable Agent decides that adoption of any portion of such market practice is not administratively feasible or if the applicable Agent determines, in consultation with the Borrower, that no market practice for the administration of any such rate exists, in such other manner of administration as such Agent decides, in consultation with the Borrower, is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).

 


 

Consolidated Depreciation and Amortization Expense” shall mean, for any Test Period, all depreciation and amortization expense of Holdings and its Subsidiaries and amortization of capitalized software expenditures, all as determined for Holdings and its Subsidiaries on a consolidated basis in accordance with GAAP.

Consolidated EBITDA” shall mean, for any Test Period, Consolidated Net Income for such Test Period, plus (without duplication), in each case (other than in the case of clauses (i) and (s) below), to the extent deducted in the calculation of Consolidated Net Income for such Test Period:

(a) the sum of the amounts for such Test Period included in determining such Consolidated Net Income of (i) Consolidated Interest Expense, (ii) Consolidated Income Tax Expense, and (iii) Consolidated Depreciation and Amortization Expense;

(b) any non-cash charges or losses; provided, that any non-cash charges or losses shall be treated as cash charges or losses in any subsequent Test Period during which cash disbursements attributable thereto are made;

(c) any extraordinary, unusual, non-recurring or exceptional expenses, losses or charges;

(d) reasonable and documented expenses paid to non-Affiliates (or, solely in the case of clauses (i)(x) and (iii) below, Affiliated Lenders in their capacities as Lenders hereunder) relating to (i) (x) the execution, delivery and performance of the Loan Documents and the borrowings of the Initial Term Loans hereunder or (y) the other Transactions, in each case, solely to the extent paid or accrued on or prior to December 31, 2017, (ii) [reserved], (iii) refinancing transactions or amendments or other modifications of the Indebtedness under this Agreement (in each case, whether or not completed) or (iv) Permitted Acquisitions and, to the extent not prohibited hereunder, Investments, recapitalizations, dispositions, issuances or repayments of Indebtedness, issuances of Equity Interests (including, for the avoidance of doubt, the IPO), sale processes, refinancing transactions or amendments or other modifications of any Indebtedness (other than any such refinancing transactions or amendments or other modifications of Indebtedness to the extent covered by clause (iii) above) (in each case, whether or not completed) and any charges or non-recurring merger costs incurred during such period as a result of any such transaction;

(e) any integration expenses, business optimization expenses, operating improvement expenses and other restructuring charges, accruals or reserves (including, for the avoidance of doubt, retention costs, severance costs, systems development and establishment costs, costs associated with office and facility openings, closings and consolidations, and relocation costs, conversion costs, excess pension charges, curtailments and modifications to pension and post-employment employee benefit plan costs or charges, contract termination costs, expenses attributable to the implementation of cost savings initiatives and professional and consulting fees incurred in connection with any of the foregoing) incurred during such Test Period, which costs and expenses are specified in reasonable detail in a certificate signed by a Financial Officer and delivered to the Administrative Agent;

(f) any losses incurred at “de novo” facilities, including certain non-capitalized start-up costs, which losses are directly associated with the opening of any such “de novo” facility and incurred within the twelve-month period following the opening of such “de novo” facility, in an aggregate amount pursuant to this clause (f) not to exceed $7,500,000 in any Test Period;

 


 

(g) Board of Directors fees, indemnities and related expenses paid or reimbursed to the extent permitted to be paid or reimbursed in accordance with this Agreement;

(h) any costs and expenses incurred in connection with the Borrower or any Subsidiary making a borrowing pursuant to the Paycheck Protection Program;

(i) proceeds from business interruption insurance (to the extent not reflected as revenue or income in such statement of Consolidated Net Income);

(j) (i) any loss, expense or charge (including all reasonable fees and expenses or charges relating thereto) from abandoned, closed, disposed or discontinued operations and (ii) any losses on disposal of abandoned, closed or discontinued operations;

(k) any loss, expense or charge (including all reasonable fees and expenses or charges relating thereto) attributable to business dispositions or asset dispositions, other than in the ordinary course of business, as determined in good faith by a Financial Officer;

(l) any non-cash loss attributable to the mark-to-market movement in the valuation of hedging obligations (including hedging obligations entered into for the purpose of hedging against fluctuations in the price or availability of any commodity) or other derivative instruments pursuant to Financial Accounting Standards Board Statement No. 133 “Accounting for Derivative Hedging Instruments”;

(m) any costs or expenses incurred in connection with Restricted Payments made pursuant to Section 6.07(b)(i) or (viii);

(n) except to the extent such Subsidiary income has been paid or otherwise distributed in cash to the relevant third parties, minority interest expense consisting of Subsidiary income attributable to minority equity interests of third parties in any non-wholly owned Subsidiary deducted (and not added back in such period to Consolidated Net Income);

(o) all non-cash expenses resulting from any employee retention plan, employee benefit or management compensation plan or the grant of equity and equity options to employees of such Person or any of its Subsidiaries pursuant to a written plan or agreement (including expenses arising from the grant of equity and equity options prior to the Closing Date or relating to the implementation thereof) or the treatment of such options under variable plan accounting;

(p) any costs or expenses incurred pursuant to any management equity plan or share option plan or any other management or employee benefit plan or agreement or share subscription or shareholder agreement, to the extent such costs or expenses are funded with cash proceeds contributed to the common capital of such Person or the Net Cash Proceeds of any issuance of Equity Interests not constituting Disqualified Capital Stock;

(q) charges, losses, lost profits, expenses (including litigation expenses, fees and charges) or write-offs to the extent indemnified or insured by a third party, including expenses or losses covered by indemnification provisions or by any insurance provider in connection with the Transactions, a Permitted Acquisition or any other Investment, disposition or any Casualty Event, in each case, to the extent not prohibited hereunder and to the extent that coverage has not been denied and so long as such amounts are actually reimbursed in cash within twelve months after the related amount is first added to Consolidated EBITDA pursuant to this clause (r) (and if not so

 


 

reimbursed within twelve months, such amount shall be deducted from Consolidated EBITDA during the next measurement period);

(r) cash receipts (or any netting arrangements resulting in reduced cash expenses) not included in Consolidated EBITDA in any period to the extent non-cash gains relating to such receipts were deducted in the calculation of Consolidated EBITDA pursuant to clauses (v) through (y) below for any previous Test Period and not added back;

(s) the amount of “run‑rate” cost savings, synergies and operating expense reductions resulting from, or related to, mergers and other business combinations, acquisitions, investments, divestitures, dispositions, discontinuance of activities or operations or other Specified Transactions, restructurings, cost savings initiatives, operational changes and other similar initiatives (including, for the avoidance of doubt, acquisitions occurring prior to the Fifteenth Amendment Effective Date) that are reasonably identifiable and projected by the Borrower in good faith to result from actions either taken or with respect to which substantial steps have been taken or are expected to be taken (in the good faith determination of the Borrower) within 24 months after such merger or other business combination, acquisition, investment, divestiture, disposition, discontinuance of activities or operations or other Specified Transaction, restructuring, cost savings initiative, operational change or other similar initiative is consummated (or undertaken or implemented prior to consummation of the acquisition or other applicable transaction (including any actions taken on or prior to the Fifteenth Amendment Effective Date)); provided that such “run‑rate” cost savings, synergies and operating expense reductions added back pursuant to this clause (s) are net of the amount of actual benefits realized from such actions during such period (it is understood and agreed that “run‑rate” means the full recurring benefit that is associated with any action taken or with respect to which substantial steps have been taken or are expected to be taken, whether prior to or following the Fifteenth Amendment Effective Date) (which adjustments may be incremental to (but not duplicative of) pro forma cost savings, synergies or operating expense reduction adjustments made pursuant to the definition of Pro Forma Basis); provided, further that the aggregate amount added back pursuant to this clause (s) in any Test Period, when aggregated with the amount of any increase for such period in Consolidated EBITDA as a result of any “run-rate” cost savings, synergies and operating expense reductions pursuant to the definition of “Pro Forma Basis” in such Test Period, shall not exceed 30.0% of Consolidated EBITDA of Holdings and its Subsidiaries for such Test Period (calculated after giving effect to amounts added back under this clause (s) and all other applicable addbacks);

(t) Public Company Costs; and

(u) adjustments, exclusions and add-backs consistent with Regulation S-X (as in effect immediately prior to giving effect to the amendments thereto that became effective on January 1, 2021) of the Securities and Exchange Commission (or any successor agency);

minus (without duplication), in each case, to the extent included in the calculation of Consolidated Net Income for such Test Period:

(v) non-cash gains or income; provided that any non-cash gains or income shall be treated as cash gains or income in any subsequent Test Period during which cash receipts attributable thereto are received;

(w) any extraordinary or non-recurring income or gain;

 


 

(x) any gain (including all fees and expenses or income relating thereto) attributable to business dispositions or asset dispositions, other than in the ordinary course of business, as determined in good faith by a Financial Officer; and

(y) (i) subject to the proviso in subclause (ii) of the succeeding paragraph, any gain or income (including all reasonable fees and expenses or charges relating thereto) from abandoned, closed, disposed or discontinued operations and (ii) any gains on disposal of abandoned, closed or discontinued operations;

in each case, as determined on a consolidated basis for Holdings and its Subsidiaries in accordance with GAAP; provided, however, that Consolidated EBITDA, subject to the succeeding paragraph, (a) for the fiscal quarter ended June 30, 2023, shall be deemed to be $29,492,000, (b) for the fiscal quarter ended September 30, 2023, shall be deemed to be $29,741,000, (c) for the fiscal quarter ended December 31, 2023, shall be deemed to be $29,492,000, and (d) for the fiscal quarter ended March 31, 2024, shall be deemed to be $33,030,000.

For the avoidance of doubt:

(i)
there shall be included in determining Consolidated EBITDA for any period, without duplication, (A) the Acquired EBITDA of any Person or business, or attributable to any property or asset acquired by Holdings or any of its Subsidiaries during such period (but not the Acquired EBITDA of any related Person or business or any Acquired EBITDA attributable to any assets or property, in each case to the extent not so acquired) to the extent not subsequently sold, transferred, abandoned or otherwise disposed of by Holdings or such Subsidiary (each such Person, business, property or asset acquired and not subsequently so disposed of, an “Acquired Entity or Business”) and (B) an adjustment in respect of each Acquired Entity or Business equal to the amount of the Pro Forma Effect with respect to such Acquired Entity or Business for such period (including the portion thereof occurring prior to such acquisition); and
(ii)
to the extent included in Consolidated Net Income, there shall be excluded in determining Consolidated EBITDA for any period (A) the Disposed EBITDA of any Person, property, business or asset sold, transferred, abandoned or otherwise disposed of, closed or classified as discontinued operations (subject to the proviso of this clause (ii)) by Holdings or any Subsidiary during such period (each such Person, property, business or asset so sold or disposed of, a “Disposed Entity or Business”) based on the Disposed EBITDA of such Disposed Entity or Business for such period and (B) an adjustment in respect of each Disposed Entity or Business equal to the amount of the Pro Forma Effect with respect to such Disposed Entity or Business for such period (including the portion thereof occurring prior to such disposition); provided that, for the avoidance of doubt, notwithstanding any classification under GAAP of any Person or business as discontinued operations as a result of the entry into a definitive agreement for the disposition thereof or as a result of constituting assets held for sale, the Disposed EBITDA of such Person or business shall not be excluded pursuant to this clause (ii) until such disposition has been consummated.

Unless the context otherwise requires, if no applicable Person is referenced, “Consolidated EBITDA” shall be deemed to refer to Consolidated EBITDA of Holdings and its Subsidiaries on a consolidated basis.

Consolidated Income Tax Expense” shall mean, for any Test Period, all provisions for taxes based on the net income, profits or capital, including federal, provincial, territorial, foreign, state, local, franchise, excise and similar taxes and foreign withholding taxes paid or accrued during such period (including in respect of repatriated funds and any penalties and interest related to such taxes), in each case,

 


 

of Holdings or any of its Subsidiaries (including, any additions to such taxes, and any penalties and interest with respect thereto), all as determined for Holdings and its Subsidiaries on a consolidated basis in accordance with GAAP.

Consolidated Indebtedness” shall mean, as at any date of determination, the aggregate amount, without duplication, of all funded Indebtedness pursuant to clauses (a), (b), (c), (d), (f) and (i) of the definition of “Indebtedness” (in the case of clause (i) of the definition of “Indebtedness”, solely to the extent of any unpaid reimbursement obligations in respect of any drawn letters of credit, letters of guaranty, bankers’ acceptances and similar credit transactions) of Holdings and its Subsidiaries, determined on a consolidated basis in accordance with GAAP.

Consolidated Interest Expense” shall mean, with respect to Holdings and its Subsidiaries on a consolidated basis, for any Test Period, interest expense determined in accordance with GAAP, adjusted, (i) to the extent not included, to include, without duplication, (a) interest income; (b) interest expense attributable to Capital Lease Obligations; (c) gains and losses on hedging or other derivatives to hedge interest rate risk; (d) fees and costs related to letters of credit, bankers’ acceptance financing, surety bonds and similar financings and (e) amortization or write-off of deferred financing fees, debt issuance costs, debt discount or premium, terminated hedging obligations and other commissions, financing fees and expenses; and (ii) to the extent included, to exclude, without duplication, any refunds or similar credits received in connection with the purchasing or procurement of goods or services under any purchasing card or similar program.

Consolidated Net Income” shall mean, for any Test Period, the net income (or loss) of any Person on a consolidated basis for such period taken as a single accounting period determined in conformity with GAAP, excluding without duplication:

(a) any net after-tax gains or losses (and all fees and expenses or charges relating thereto) attributable to the early extinguishment of Indebtedness or hedging obligations or other derivative instruments;

(b) (i) the net income of any Person that is not a Subsidiary of such Person, or that is accounted for by the equity method of accounting, shall be included only to the extent of the amount of dividends or distributions or other payments paid in cash (or to the extent converted into cash) to the referenced person or a subsidiary thereof in respect of such period and (ii) the net income shall include any ordinary course dividend distribution or other payment in cash received from any Person in excess of the amounts included in clause (b)(i); provided, however, that Holdings’ equity in net loss of any such Person for such period shall be included in determining Consolidated Net Income solely to the extent that Holdings or any other Subsidiary has funded such loss;

(c) solely for the purpose of determining clause (b) of the Cumulative Amount, the net income of any Subsidiary of Holdings that is not a Loan Party during such period to the extent that the declaration or payment of dividends or similar distributions by such Subsidiary of that income (i) is not permitted by operation of the terms of its Organizational Documents or any agreement, instrument or Requirement of Law applicable to such Subsidiary during such period, or (ii) would result in material adverse tax consequences to Holdings and its Subsidiaries, taken as a whole; provided, however, that the net income excluded from Consolidated Net Income pursuant to clause (c)(ii) shall be limited to the amount of any Tax liability that would be incurred upon payment of such dividend or similar distribution;

(d) the cumulative effect of a change in accounting principles during such period to the extent included in net income;

 


 

(e) any increase in amortization or depreciation or any one-time non-cash charges or other effects resulting from purchase accounting (including in the inventory, property and equipment, software, goodwill, intangible assets, in process research and development, deferred revenue and debt line items) in connection with the Transactions, any acquisition or Investment consummated prior to or after the Closing Date;

(f) any impairment charge or asset write-off or write-down, including impairment charges or asset write-offs or write-downs related to intangible assets, long-lived assets, investments in debt and equity securities or as a result of a change in law or regulation, in each case, pursuant to GAAP, and the amortization of intangibles arising pursuant to GAAP, which, without limiting the foregoing, shall include any impairment charges resulting from the application of Financial Accounting Standards Board Statements No. 142 and 144, and the amortization of intangibles arising pursuant to No. 141;

(g) any non-cash expenses realized or resulting from employee benefit plans or post-employment benefit plans, grants of stock appreciation or similar rights, stock options, restricted stock grants or other rights to officers, directors and employees of such Person or any of its Subsidiaries;

(h) any unrealized gain or loss due solely to fluctuations in currency values and the related tax effects, determined in accordance with GAAP; and

(i) earn-out and contingent consideration obligations (including to the extent accounted for as bonuses or otherwise) and adjustments thereof and purchase price adjustments, in each case in connection with Acquisitions consummated prior to the Closing Date and Permitted Acquisitions or, to the extent permitted hereunder, other Investments.

There shall be included in Consolidated Net Income, without duplication, the amount of any cash tax benefits related to the tax amortization of intangible assets in such period. Unless the context otherwise requires, if no applicable Person is referenced, “Consolidated Net Income” shall be deemed to refer to Consolidated Net Income of Holdings and its Subsidiaries on a consolidated basis.

Consolidated Total Assets” shall mean, as of any date of determination, the consolidated total assets of Holdings and its Subsidiaries on a consolidated basis in accordance with GAAP (and, in the case of any determination relating to any Specified Transaction, on a pro forma basis including any property or assets being acquired in connection therewith).

Contingent Obligation” shall mean, as to any person, any obligation, agreement, understanding or arrangement of such person guaranteeing or intended to guarantee any Indebtedness or other obligations (“primary obligations”) of any other person (the “primary obligor”) in any manner, whether directly or indirectly, including any obligation of such person, whether or not contingent, (a) to purchase any such primary obligation or any property constituting direct or indirect security therefor; (b) to advance or supply funds (i) for the purchase or payment of any such primary obligation or (ii) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor; (c) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation; or (d) otherwise to assure or hold harmless the holder of such primary obligation against loss in respect thereof; provided, however, that the term “Contingent Obligation” shall not include endorsements of instruments for deposit or collection in the ordinary course of business or any product warranties. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which such Contingent Obligation is made

 


 

(or, if less, the maximum amount of such primary obligation for which such person may be liable, whether singly or jointly, pursuant to the terms of the instrument evidencing such Contingent Obligation) or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such person is required to perform thereunder) as determined by such person in good faith.

Contract Consideration” shall have the meaning assigned to such term in the definition of “Excess Cash Flow”.

Contribution” shall have the meaning assigned to such term in the second recital hereto.

Control” shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a person, whether through the ownership of voting securities, by contract or otherwise, and the terms “Controlling” and “Controlled” shall have meanings correlative thereto.

Controlled Investment Affiliate” shall mean, as to any person, any other person which directly or indirectly is in Control of, is Controlled by, or is under common Control with, such person and is organized by such person (or any person Controlling such person) primarily for making equity or debt investments in Holdings or other portfolio companies.

Corresponding Debt” shall have the meaning assigned to such term in Section 9.17(b).

Corresponding Tenor” with respect to any Available Tenor shall mean, as applicable, either a tenor (including overnight) or an interest payment period having approximately the same length (disregarding business day adjustment) as such Available Tenor.

Credit Extension” shall mean, as the context may require, (i) the making of a Loan by a Lender or (ii) the issuance of any Letter of Credit, or the amendment, extension or renewal of any existing Letter of Credit, by the Issuing Bank.

Cumulative Amount” shall mean, on any date of determination (the “Reference Date”), the sum of (without duplication):

(c)
the greater of (i) $50,000,000 and (ii) 40.0% of Consolidated EBITDA of Holdings and its Subsidiaries for the most recently ended Test Period (calculated on a Pro Forma Basis); plus
(d)
100% of the amount of Excess Cash Flow of Holdings and its Subsidiaries, determined on a cumulative basis, for all fiscal years of Holdings ending after the Fifteenth Amendment Effective Date (commencing with the fiscal year ending December 31, 2024) that is not required to be applied in accordance with Section 2.09(b)(iv) (which amount shall not be less than zero for any fiscal year); plus
(e)
the cumulative amount of cash and Cash Equivalent proceeds and the fair market value of marketable securities or other property received from (i) the sale of Equity Interests (other than any Disqualified Capital Stock) of Holdings or Equity Interests (other than any Disqualified Capital Stock) of any direct or indirect parent of Holdings, in each case, after the Fifteenth Amendment Effective Date and on or prior to such time (including upon exercise of warrants or options) (other than (x) any Cure Amount, (y) any other amount which has been (or is substantially concurrently being) applied to make Restricted Payments pursuant to Section 6.07(b)(x)) which proceeds have been contributed as common equity to the capital of the Borrower and (ii) the Equity Interests (other than any Disqualified Capital Stock) of Holdings (or Equity Interests (other than any Disqualified Capital Stock) of any direct or indirect parent of Holdings) (other than (x) any Cure Amount, (y) any other amount which has been (or is substantially concurrently

 


 

being) applied to make Restricted Payments pursuant to Section 6.07(b)(x)) issued upon conversion of Indebtedness (other than Indebtedness that is contractually subordinated to the Obligations) of Holdings or any Subsidiary of Holdings owed to a Person other than a Loan Party or a Subsidiary of a Loan Party; plus
(f)
an amount equal to the Declined Proceeds; plus
(g)
to the extent not already reflected as a return of capital or deemed reduction in the amount of such Investment pursuant to the definition thereof or any provision of Section 6.07, the aggregate amount of all cash dividends and other cash distributions received by any Company from any Investment made with the Cumulative Amount during the period from the Business Day immediately following the Fifteenth Amendment Effective Date through and including the Reference Date; provided that any such amount shall not exceed the amount of the Investment originally made with the Cumulative Amount; plus
(h)
to the extent not already reflected as a return of capital or deemed reduction in the amount of such Investment pursuant to the definition thereof or any provision of Section 6.07, the aggregate amount of all Net Cash Proceeds received by any Company in connection with the sale, transfer or other disposition of its ownership interest in any Investment made with the Cumulative Amount during the period from the Business Day immediately following the Fifteenth Amendment Effective Date through and including the Reference Date; provided that any such amount shall not exceed the amount of the Investment originally made with the Cumulative Amount; minus
(i)
(i) the aggregate amount of Investments made pursuant to clause (r) of the definition of “Permitted Investment” using the Cumulative Amount and (ii) the aggregate amount of Restricted Payments made pursuant to Section 6.07(b)(xii) using the Cumulative Amount, in each case during the period from and including the Business Day immediately following the Fifteenth Amendment Effective Date through and including the Reference Date (without taking account of the intended usage of the Cumulative Amount on such Reference Date).

Cure Amount” shall have the meaning assigned to such term in Section 8.04.

Cure Expiration Date” shall have the meaning assigned to such term in Section 8.04.

Cure Quarter” shall have the meaning assigned to such term in Section 8.04.

DDTL Fee Letter” shall mean that certain Fee Letter, dated as of the Fifteenth Amendment Effective Date, by and between the Borrower and Blackstone.

Debt Issuance shall mean the Incurrence by Holdings or any of its Subsidiaries of Indebtedness on or after the Closing Date or the issuance of any Disqualified Capital Stock by the Borrower or any of its Subsidiaries after the Closing Date, in each case not permitted by Section 6.01.

Declined Proceeds” shall have the meaning assigned to such term in Section 2.09(c).

Default” shall mean any event, occurrence or condition which is, or upon notice, lapse of time or both would constitute, an Event of Default.

Default Excess” shall mean, with respect to any Defaulting Lender, the excess, if any, of such Defaulting Lender’s Pro Rata Percentage of the aggregate outstanding principal amount of Loans of all Revolving Lenders (calculated as if all Defaulting Lenders (including such Defaulting Lender) had funded all of their respective defaulted Loans) over the aggregate outstanding principal amount of Revolving Credit Loans of such Defaulting Lender.

 


 

Defaulting Lender” shall mean any Lender, as reasonably determined by the applicable Agent in a manner consistent with similar determinations by the applicable Agent in respect of other Lenders, that (a) has failed to fund any portion of its Loans or participations in Letters of Credit required to be funded by it hereunder within one (1) Business Day of the date required to be funded by it hereunder, (b) has notified the applicable Agent, the Issuing Bank, any Lender and/or the Borrower in writing that it does not intend to comply with any of its funding obligations under this Agreement or has made a public statement to the effect that it does not intend to comply with its funding obligations under this Agreement or under other agreements in which it committed to extend credit, (c) has failed, within three (3) Business Days after request by the applicable Agent or the Borrower, to confirm that it will comply with the terms of this Agreement relating to its obligations to fund prospective Loans and participations in then outstanding Letters of Credit, (d) has otherwise failed to pay over to the applicable Agent or any other Lender any other amount required to be paid by it hereunder within three (3) Business Days of the date when due, unless such payment is the subject of a good faith dispute, or (e) in the case of a Lender that has a Commitment, or LC Exposure outstanding at such time, shall take, or is the Subsidiary of any Person that has taken, any action or be (or is) the subject of any action or proceeding of a type described in Section 8.01(g) or Section 8.01(h) (or any comparable proceeding initiated by a regulatory authority having jurisdiction over such Lender or such Person). For the avoidance of doubt, a Lender shall not be deemed to be a Defaulting Lender solely by virtue of the ownership or acquisition of any Equity Interest in such Lender or its parent by a Governmental Authority.

Delayed Draw Term Loan” shall mean the loans made from time to time after the Closing Date on any Delayed Draw Term Loan Funding Date pursuant to Section 2.01(b).

Delayed Draw Term Loan Commitment” shall mean, with respect to any Lender, its obligation to make Delayed Draw Term Loans to the Borrower on any applicable Delayed Draw Term Loan Funding Date pursuant to Section 2.01(b) in the amount set forth opposite such Lender’s name on Schedule 2.01 under the caption “Delayed Draw Term Loan Commitment”. The aggregate amount of the Delayed Draw Term Loan Commitments on the Fifteenth Amendment Effective Date is $100,000,000.

Delayed Draw Term Loan Funding Date” shall mean one or more dates on which Delayed Draw Term Loans are made.

Delayed Draw Termination Date” shall mean the earlier to occur of (a) the date on which the Delayed Draw Term Loan Commitments have been reduced to $0 as a result of the funding thereof in full or the termination thereof in accordance with Section 2.07 and (b) May 10, 2026.

Designated Noncash Consideration” shall mean the fair market value at the time received (as determined in good faith by the Borrower) of any non-cash consideration received by the Borrower or any Subsidiary in connection with an Asset Sale that is designated as Designated Noncash Consideration pursuant to a certificate of a Responsible Officer of the Borrower, less the amount of cash or Cash Equivalents received in connection with a subsequent payment, redemption, retirement, sale or other disposition of such Designated Noncash Consideration. A particular item of Designated Noncash Consideration will no longer be considered to be outstanding when and to the extent it has been paid, redeemed or otherwise retired or sold or otherwise disposed of in compliance with Section 6.04.

Disposed EBITDA” shall mean, with respect to any Disposed Entity or Business for any period, the amount for such period of Consolidated EBITDA of such Disposed Entity or Business (determined as if references to Holdings and the Subsidiaries in the definition of Consolidated EBITDA were references to such Disposed Entity or Business and its respective Subsidiaries), all as determined on a consolidated basis for such Disposed Entity or Business.

 


 

Disposed Entity or Business” shall have the meaning assigned to such term in the definition of “Consolidated EBITDA.”

Disqualified Capital Stock” shall mean any Equity Interest which, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable), or upon the happening of any event, (a) matures (excluding any maturity as the result of an optional redemption by the issuer thereof) or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the holder thereof, in whole or in part, on or prior to the date 91 days after the earlier of the Maturity Date or the date the Loans are no longer outstanding, (b) is convertible into or exchangeable (unless at the sole option of the issuer thereof) for (i) debt securities or (ii) any Equity Interests referred to in (a) above, in each case at any time on or prior to the date 91 days after the earlier of the Maturity Date or the date the Loans are no longer outstanding, or (c) contains any repurchase obligation which may come into effect prior to Payment in Full of all Obligations; provided, however, that any Equity Interests that would not constitute Disqualified Capital Stock but for provisions thereof giving holders thereof (or the holders of any security into or for which such Equity Interests are convertible, exchangeable or exercisable) the right to require the issuer thereof to redeem such Equity Interests upon the occurrence of a change in control or an asset sale shall not constitute Disqualified Capital Stock if such Equity Interests provide that the issuer thereof will not redeem any such Equity Interests pursuant to such provisions prior to the Payment in Full of the Obligations; and provided, further, that any Equity Interest issued to or by any plan for the benefit of former, current or future employees, directors, officers, members of management or consultants shall not constitute Disqualified Capital Stock solely because it is required to be repurchased in order to satisfy applicable statutory or regulatory obligations or as a result of the termination, death or disability of any such employee, director, officer, member of management or consultant.

Disqualified Lenders” shall mean those banks, financial institutions, and other institutional lenders and investors (a) that have been identified by name in writing by Borrower to the Agents on or prior to the Fifteenth Amendment Effective Date; (b) those persons who are competitors of the Loan Parties or their Subsidiaries that are identified by name in writing by Borrower to the Lender Representative (as defined in this Agreement as in effect prior to the Fifteenth Amendment Effective Date), or, if after the Fifteenth Amendment Effective Date, by the Borrower to the Agents from time to time (which shall not apply to retroactively disqualify any person who (i) previously acquired, and continues to hold, any loans, Commitments or participations in respect of any Loans or Commitments, or (ii) is a party to a pending trade as of the date of such identification); (c) that have been identified by name in writing by Borrower after the Fifteenth Amendment Effective Date and mutually agreed by the Agents (acting at the direction of the Required Lenders); and (d) in the case of each of clauses (a), (b), and (c), any of their Affiliates (excluding bona fide debt fund affiliates in the case of competitors only) that are either (i) identified by name in writing by the Borrower to the Agents from time to time, which shall not apply retroactively to disqualify any person who (x) previously acquired, and continues to hold, any Loans, Commitments, or participations in respect of any Loans or Commitments or (y) is party to a pending trade as of the date of such identification) or (ii) readily identifiable solely on the basis of such Affiliate’s name.

Distributed Shares” shall have the meaning assigned to such term in the second recital hereto.

Dividend” with respect to any person shall mean that such person has declared or paid a dividend or returned any equity capital to the holders of its Equity Interests or made any other distribution, payment or delivery of property (other than Equity Interests of such person) or cash to the holders of its Equity Interests in their capacity as such.

 


 

Division” shall mean the division of a limited liability company into two or more limited liability companies in accordance with the Requirements of Law in the applicable jurisdiction of organization or formation, and the term “Divide” shall have the meaning correlative thereto.

Dollars” or “dollars” or “$” shall mean lawful money of the United States.

Domestic Subsidiary” shall mean any Subsidiary that is organized under the laws of the United States, any state thereof or the District of Columbia.

Early Opt-in Election” shall mean the delivery of a notification by the applicable Agent (at the request of the Borrower) to each of the other parties hereto that (a) U.S. dollar-denominated syndicated credit facilities are being executed or amended, as applicable, at such time, to incorporate or adopt a new benchmark interest rate to replace Term SOFR (and such syndicated credit facilities are identified in such notice and are publicly available for review) and (b) the joint election by the applicable Agent and the Borrower to trigger a fallback from Term SOFR; provided that upon such joint election to trigger a fallback from Term SOFR, the applicable Agent shall deliver a written notice of such election to the applicable Lenders.

EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein and Norway.

EEA Resolution Authority” means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

Eligible Assignee” shall mean (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund of a Lender, (d) each of Holdings and the Borrower, solely in the case of an assignment of Term Loans to Holdings or the Borrower (as applicable) in accordance with Section 10.04(g) and (e) any other Person that, in the case of an assignment of Loans or Commitments pursuant to Section 10.04(a), has been consented to by the applicable Agent and, to the extent required by Section 10.04(a), the Borrower, in each case, in accordance with Section 10.04(a); other than, in each case, (i) a Disqualified Lender, (ii) a Sanctioned Person, (iii) a natural person or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person, other than any holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, any Closing Date Investor, (iv) Holdings and its Subsidiaries, except with respect to assignment of Terms Loans to Holdings and/or the Borrower in accordance with Section 10.04(g), (v) Affiliates of Holdings and its Subsidiaries, except for Affiliated Lenders in accordance with Section 10.04(f) and (vi) a Defaulting Lender.

EMU” means the economic and monetary union as contemplated in the Treaty on European Union.

Environment” shall mean ambient air, surface water and groundwater (including potable water, navigable water and wetlands), the land surface or subsurface strata, natural resources or as otherwise defined in any Environmental Law.

 


 

Environmental Claim” shall mean any written claim, written notice, written demand, order, action, suit, proceeding alleging liability for or obligation with respect to any investigation, remediation, removal, cleanup, response, corrective action, damages to natural resources, personal injury, property damage, fines, penalties or other costs resulting from, related to or arising out of (a) the presence, Release or threatened Release of Hazardous Material at any location or (b) any violation or alleged violation of any Environmental Law, and shall include any claim seeking damages, contribution, indemnification, cost recovery, compensation or injunctive relief resulting from, related to or arising out of the presence, Release or threatened Release of Hazardous Material.

Environmental Law” shall mean any and all present and future applicable treaties, laws, statutes, ordinances, regulations, rules, decrees, orders, judgments, consent orders, consent decrees, code or other legally binding requirements, in each case having the force and effect of law, and the common law, relating to protection of public health as it relates to exposure to Hazardous Materials or the protection of the Environment, the Release or threatened Release of Hazardous Material, the protection of natural resources or natural resource damages, or occupational safety or health as it relates to exposure to Hazardous Materials, and any and all applicable Environmental Permits.

Environmental Lien” shall mean any Lien in favor of any Governmental Authority pursuant to any Environmental Law.

Environmental Permit” shall mean any permit, license, approval, registration, notification, exemption, consent or other authorization required by or from a Governmental Authority under Environmental Law.

Equity Contribution” shall have the meaning assigned to such term in the fourth recital hereto.

Equity Cure Contribution” shall have the meaning assigned to such term in Section 8.04.

Equity Interest” shall mean, with respect to any person, any and all shares, interests, participations or other equivalents, including membership interests (however designated, whether voting or nonvoting), of equity of such person, including, if such person is a partnership, partnership interests (whether general or limited) and any other interest or participation that confers on a person the right to receive a share of the profits and losses of, or distributions of property of, such partnership, whether outstanding on, or issued after, the Closing Date, but excluding debt securities convertible or exchangeable into such equity.

Equity Issuance” shall mean, without duplication, (a) any issuance or sale by Holdings after the Closing Date of any Equity Interests (including any Equity Interests issued upon exercise of any warrant or option (or any warrants or options to purchase Equity Interests)) or (b) any contribution to the capital of Holdings.

ERISA” shall mean the Employee Retirement Income Security Act of 1974, as the same may be amended from time to time, and the rules and regulations promulgated thereunder.

ERISA Affiliate” shall mean, with respect to any person, any entity, trade or business (whether or not incorporated) that, together with such person, is, or at the relevant time was, a member of a group described in Section 414(b), (c), (m) or (o) of the Code or Section 4001(b)(1) of ERISA that includes or included such person, or that is, or was at the relevant time, a member of the same “controlled group” as such person pursuant to Section 4001(a)(14) of ERISA.

 


 

ERISA Event” shall mean (a) any “reportable event”, as defined in Section 4043 of ERISA, with respect to a Plan (other than an event for which the 30-day notice period is waived by regulation), (b) the failure of any Plan to satisfy the minimum funding standard applicable to such Plan within the meaning of Section 412 of the Code or Section 302 of ERISA, whether or not waived, (c) the filing pursuant to Section 412(c) of the Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan, (d) the incurrence by Holdings, the Borrower, any other Subsidiary, or any of their ERISA Affiliates of any liability under Title IV of ERISA (other than for PBGC premiums due but not delinquent under Section 4007 of ERISA) with respect to the termination of any Plan or the withdrawal or partial withdrawal of Holdings, the Borrower, any other Subsidiary, or any of their ERISA Affiliates from any Plan or Multiemployer Plan, (e) the receipt by Holdings, the Borrower, any other Subsidiary, or any of their ERISA Affiliates from the PBGC or the administrator of any Plan or Multiemployer Plan of any written notice of intent to terminate any such Plan or Multiemployer Plan under Sections 4041 or 4041A of ERISA or the commencement of proceedings by the PBGC to appoint a trustee to administer any Plan under Section 4042 of ERISA, (f) the adoption of any amendment to a Plan that would require the provision of security pursuant to Section 436(f) of the Code or Section 206(g) of ERISA, (g) a complete or partial withdrawal by Holdings, the Borrower, any other Subsidiary, or any ERISA Affiliate, from a Multiemployer Plan or written notification that a Multiemployer Plan is insolvent (within the meaning of Section 4245 of ERISA) or in “endangered” or “critical” status (within the meaning of Section 432 of the Code or Section 305 of ERISA), (h) the occurrence of a non-exempt “prohibited transaction” with respect to which Holdings, the Borrower, any other Subsidiary, or any of their ERISA Affiliates is a “disqualified person” (within the meaning of Section 4975 of the Code) and with respect to which any of the Loan Parties or any of their ERISA Affiliates could reasonably be expected to have any liability, (i) a written determination that any Plan is, or is expected to be, in “at risk” status (within the meaning of Section 430 of the Code or Section 303 of ERISA), (j) the failure by Holdings, the Borrower, any other Subsidiary, or any of their ERISA Affiliates to make by its due date, after the expiration of any applicable grace period, a required installment under Section 430(j) of the Code with respect to any Plan, or (k) the failure by Holdings, the Borrower, any other Subsidiary, or any of their ERISA Affiliates to make any required contribution to a Multiemployer Plan, after the expiration of any applicable grace period.

EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.

Events of Default” shall have the meaning assigned to such term in Section 8.01.

Excess Cash Flow” shall mean, for any Excess Cash Flow Period, (a) Consolidated EBITDA for such period (calculated without giving Pro Forma Effect to any Specified Transaction and without giving effect to clauses (j)(i), (s), (u) and (y)(i) of the definition of Consolidated EBITDA), plus (b) any decrease in Working Capital for such period, minus, (c) in each case, without duplication:

(i)
scheduled principal payments (including the principal component of payments under Capital Lease Obligations) in respect of Indebtedness of Holdings or any of its Subsidiaries made during such Excess Cash Flow Period to the extent not funded with the proceeds of Indebtedness (other than revolving Indebtedness); minus
(ii)
without duplication of amounts deducted pursuant to clause (xvi) below in any prior Excess Cash Flow Period, the sum of (A) Capital Expenditures made during such Excess Cash Flow Period to the extent not funded with the proceeds of Equity Issuances or Indebtedness (other than revolving Indebtedness) and (B) expenditures made during such Excess Cash Flow Period from proceeds of Asset Sales and Casualty Events to the extent such proceeds are included in Consolidated EBITDA; minus

 


 

(iii)
cash payments in respect of Consolidated Interest Expense made during such Excess Cash Flow Period; minus
(iv)
amounts added back to Consolidated EBITDA pursuant to clauses (d), (e), (g), (m) and (t) of the definition thereof during such Excess Cash Flow Period, in each case to the extent paid in cash during such Excess Cash Flow Period and not funded with the proceeds of Equity Issuances or Indebtedness (other than revolving Indebtedness); minus
(v)
amounts added back to Consolidated EBITDA pursuant to clauses (b), (c), (f), (i), (j), (k), (n) and (q) of the definition thereof during such Excess Cash Flow Period, in each case (other than with respect to clauses (b) and (n) of the definition of Consolidated EBITDA) solely to the extent the underlying charge, expense or loss does not constitute a non-cash charge, expense or loss;
(vi)
any increase in Working Capital for such period; minus
(vii)
amounts paid in cash for such period in respect of long-term liabilities (other than Indebtedness), to the extent not funded with the proceeds of Indebtedness (other than revolving Indebtedness); minus
(viii)
[reserved];
(ix)
the aggregate amount of any premium, make-whole or penalty payments actually paid in cash during such period that are made in connection with any repayment, early extinguishment or conversion of Indebtedness or hedging obligations or other derivative instruments to the extent such payments are not (x) expensed during such period or are not deducted in calculating Consolidated Net Income or (y) funded with the proceeds of Indebtedness (other than revolving Indebtedness); minus
(x)
Restricted Payments paid in cash during such period to the extent permitted pursuant to Section 6.07(b)(i), (ii), (viii), (ix), (xi), (xii) and (xiii)); minus
(xi)
[reserved];
(xii)
without duplication of the amounts deducted pursuant to clause (xvi) below in any prior Excess Cash Flow Period, the aggregate consideration paid in cash (including Restricted Payments paid in cash during such period to the extent permitted pursuant to Section 6.07(b)(vii) and representing a portion of such consideration) for any Acquisitions consummated prior to the Closing Date, Permitted Acquisitions and other Investments not funded with the proceeds of Equity Issuances or Indebtedness (other than revolving Indebtedness); minus
(xiii)
the amount of Permitted Tax Distributions and cash payments in respect of Consolidated Income Tax Expense of Holdings and its Subsidiaries with respect to such period to the extent added back to Consolidated EBITDA in accordance with this Agreement; minus
(xiv)
cash expenses in respect of Hedging Agreements during such period; minus
(xv)
financing fees, acquisition and development of software and other Intellectual Property and any other cash expenditures, in each case, that are capitalized in accordance with GAAP; minus
(xvi)
the aggregate consideration required to be paid in cash by Holdings or any of its Subsidiaries pursuant to binding contracts (the “Contract Consideration”) entered into prior to or during such period relating to Permitted Acquisitions, Investments or Capital Expenditures to be consummated or

 


 

made during the period of four consecutive fiscal quarters of the Borrower following the end of such period; provided that to the extent (i) the aggregate amount of cash payments actually utilized to finance such Permitted Acquisitions, Investments or Capital Expenditures during such period of four consecutive fiscal quarters is less than the Contract Consideration or (ii) such cash payments are funded with the proceeds of Equity Issuances or Indebtedness (other than revolving Indebtedness), the amount of such shortfall or such portion funded with the proceeds of Equity Issuances or Indebtedness (other than revolving Indebtedness) shall be added to the calculation of Excess Cash Flow at the end of such period of four consecutive fiscal quarters; minus
(xvii)
[reserved];
(xviii)
at the option of the Borrower, any amounts in respect of investments (including Permitted Acquisitions, Investments constituting Permitted Investments and Investments made pursuant to Section 6.07) and Restricted Payments which could have been deducted pursuant to clauses (x), (xii) and (xiii) above if made in such period, but which are made after the end of such period and prior to the date upon which a mandatory prepayment for such period would be required under Section 2.09(b)(i) (which amounts, if so deducted in accordance with this clause (xviii), shall not affect the calculation of Excess Cash Flow in any future period).

Notwithstanding anything herein or in the definition of any term used in the definition of Excess Cash Flow to the contrary, all components of Excess Cash Flow shall be computed for Holdings and its Subsidiaries on a consolidated basis.

 

Excess Cash Flow Percentage” shall mean, with respect to an Excess Cash Flow Period, 50%; provided that (a) if the Total Net Leverage Ratio at the end of the applicable Excess Cash Flow Period is greater than 3.40:1.00 but less than or equal to 4.25:1.00, such percentage shall be 25% and (b) if the Total Net Leverage Ratio at the end of the applicable Excess Cash Flow Period is less than or equal to 3.40:1.00, such percentage shall be 0%.

Excess Cash Flow Period” shall mean each fiscal year of Holdings starting with the fiscal year ending December 31, 2024.

Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

Excluded Account” shall mean any deposit account, securities account or commodities account (a) used solely for payroll, payroll taxes and other employee wage and benefits payments, (b) constitutes a trust, fiduciary, escrow or tax payment account, including sales tax accounts, (c) constitutes a zero balance deposit account, (d) that is designated as an escrow account or that holds funds for the benefit of third parties, (e) [reserved], (f) used primarily for deposits of governmental receivables or (g) that is maintained solely to hold the proceeds of any Receivables Facility that is permitted hereunder (other than any Existing Receivables Facility), is subject to the Lien of the counterparty with respect to such Receivables Facility and is prohibited by the terms of the definitive agreements with respect to such Receivables Facility from being subject to the Lien of the Collateral Agent.

Excluded Collateral” shall mean (a) any fee-owned real property with a fair market value (as reasonably determined in good faith by the Borrower as of the Closing Date, or, if such real property is acquired after the Closing Date, as of the date of acquisition thereof) of less than $12,500,000, any fee-owned real property located in a special flood hazard area and all leasehold interests in real property (it being understood that there shall be no requirement to obtain any landlord waivers, estoppels or collateral access letters); (b) motor vehicles, aircrafts, and other assets subject to certificates of title, but only to the extent a Lien thereon cannot be perfected by the filing of a financing statement (or equivalent); (c)

 


 

Letter-of-Credit Rights with an individual value of less than $5,000,000, except to the extent constituting Supporting Obligations in respect of other Collateral which may be perfected by the filing of a financing statement (or equivalent) and Commercial Tort Claims with an individual value of less than $5,000,000; (d) Equity Interests of any CFC or CFC Holdco other than 65% of the outstanding Equity Interests of any first-tier CFC or first-tier CFC Holdco, and all direct or indirect assets of any CFC or CFC Holdco; (e) (i) Equity Interests constituting Margin Stock and (ii) any Equity Interests in any person not constituting a Wholly Owned Subsidiary to the extent that (x) such Equity Interests cannot be pledged without the consent of one or more third parties and which consent has not been obtained or to the extent prohibited by such person’s Organizational Documents (to the extent such consent requirement or prohibition exists on the Closing Date or on the date of acquisition of such Equity Interests and was not entered into in contemplation of such acquisition) or (y) the pledge of such Equity Interests (including any exercise of remedies) would result in a change of control, repurchase obligation or other material adverse consequence to any of the Loan Parties or such person not constituting a Wholly Owned Subsidiary; (f) any contract, lease, permit, license, or license agreement covering real or personal property or any rights or interest in any contract, lease, permit, license, or license agreement covering real or personal property of any Loan Party, in each case, to the extent permitted by this Agreement, if under the terms of such contract, lease, permit, license, or license agreement, or applicable law (including rules or regulations of any Governmental Authority) with respect thereto, the grant of a security interest or Lien therein does or would violate or invalidate such contract, lease, permit, license, or license agreement or create a right of termination in favor of any other party thereto (other than in favor of a Loan Party or a Subsidiary thereof); (g) any asset owned by any Loan Party on the Closing Date or hereafter acquired by a Loan Party that is subject to a Lien securing a Purchase Money Obligation (including any Capital Lease Obligations) or similar obligation to the extent such obligation is of the same type as a Purchase Money Obligation (including any Capital Lease Obligations) or similar obligations, only to the extent and for so long as the contract or other agreement pursuant to which such Lien is granted (or the documentation providing for such Purchase Money Obligation (or such Capital Lease Obligation)) prohibits the creation of any other Lien on such asset and its proceeds or such Lien would violate or invalidate such contract or other agreement or create a right of termination in favor of any other party thereto (other than in favor of a Loan Party or a Subsidiary thereof); (h) governmental licenses, state or local franchises, charters and authorizations or any other particular asset or right under contract, to the extent that the grant of a security interest or Lien therein is prohibited under applicable law (including rules or regulations of any Governmental Authority) or the pledge or creation of a security interest in which would require governmental consent, approval, license or authorization (it being agreed that there shall be no requirement to comply with the Federal Assignment of Claims Act or any similar statute) or the consent of a third party (to the extent such consent requirement or prohibition exists on the Closing Date or on the date of acquisition of such license, franchise, charter, authorization or other asset or right under contract and was not entered into in contemplation of such acquisition); (i) any United States intent-to-use trademark applications to the extent that, and solely during the period in which, the grant of a security interest therein would impair the validity or enforceability of such intent-to-use trademark applications under applicable federal law; provided that upon submission and acceptance by the United States Patent and Trademark Office of an amendment to allege use pursuant to 15 U.S.C. Section 1060(a) (or any successor provision), such intent-to-use trademark application shall be considered Collateral; (j) Excluded Accounts and the funds or other property held therein; (k) assets as to which the Collateral Agent and the Borrower reasonably agree in writing that the cost and/or burden of obtaining such a security interest or perfection thereof (including the cost of title insurance, surveys or flood insurance (if necessary)) are excessive in relation to the benefit to the Lenders of the security to be afforded thereby; or (l) any property or assets for which the creation or perfection of pledges of, or security interests in, such property or assets in favor of the Collateral Agent would result in material adverse tax consequences to Holdings and its Subsidiaries, taken as a whole (as reasonably determined in good faith by the Borrower); provided that (A) the foregoing exclusions of clause (f) through (h) shall in no way be construed (1) to apply to the extent that any described prohibition or restriction is ineffective under Section 9-406, 9-407, 9-408, or 9-409 of the New York UCC or other applicable law or (2) to apply to the extent that any consent or waiver has been

 


 

obtained that would permit Collateral Agent’s security interest or Lien to attach notwithstanding the prohibition or restriction on the pledge of such contract, lease, permit, license, or license agreement or governmental licenses, state or local franchises, charters or authorizations, as applicable; and (B) the foregoing exclusions of clauses (a) through (h) shall in no way be construed to limit, impair, or otherwise affect any of Collateral Agent’s continuing security interests in and Liens upon any rights or interests of any Loan Party in or to any proceeds or receivables therefrom, including from the sale, license, lease, or other dispositions of any such contract, lease, permit, license, license agreement, governmental license, state or local franchise, charter or authorization, Accounts or Equity Interests.

 

Excluded Subsidiary” shall mean, with respect to Holdings (provided, that in no event shall the Borrower constitute an Excluded Subsidiary):

(a) any Immaterial Subsidiary that does not own any Material Intellectual Property (provided that, to the extent any such Subsidiary no longer qualifies as an Immaterial Subsidiary, such Subsidiary shall cease to be an Excluded Subsidiary by virtue of this clause (a));

(b) each CFC Holdco (provided that, to the extent any such Subsidiary shall cease to be a CFC Holdco, such Subsidiary shall cease to be an Excluded Subsidiary by virtue of this clause (b));

(c) each Foreign Subsidiary other than the Schroth German Subsidiaries (provided that, to the extent any such Subsidiary shall become a Domestic Subsidiary, it shall cease to be an Excluded Subsidiary by virtue of this clause (c));

(d) each Subsidiary that is not a Wholly Owned Subsidiary (provided that in the case of a Subsidiary that ceases to be a Wholly Owned Subsidiary after the Fifteenth Amendment Effective Date, such Subsidiary qualifies as such as a result of a bona fide transaction with a Person that is not an Affiliate of Holdings; provided, further, that, to the extent any such Subsidiary shall become a Wholly Owned Subsidiary, such Subsidiary shall cease to be an Excluded Subsidiary by virtue of this clause (d));

(e) any Subsidiary existing on or acquired after the Closing Date to the extent that, and for so long as, such Subsidiary is prohibited by any Requirements of Law from guaranteeing the Obligations;

(f) any Subsidiary existing on or acquired after the Closing Date, to the extent and for so long as (but only so long as) (i) the guarantee of the Obligations by such Subsidiary would require the consent, approval, license or authorization of a Governmental Authority which has not been obtained or (ii) solely in the case of Subsidiaries acquired after the Closing Date pursuant to a Permitted Acquisition, by any restriction of contract (to the extent such restriction was not entered into or did not arise in contemplation of such acquisition) (including any requirement to obtain third party consent which has not been obtained);

(g) each Subsidiary that is a direct or indirect Subsidiary of a Foreign Subsidiary (other than any Schroth German Subsidiary) or a CFC Holdco;

(h) any not-for-profit Subsidiaries;

(i) any special purposes entities;

(j) any Subsidiary to the extent that the Collateral Agent and the Borrower reasonably agree in writing that the cost and/or burden of obtaining a guarantee are excessive in relation to the benefit to the Lenders;

 


 

(k) any Subsidiary to the extent the provision of a guarantee by such Subsidiary would result in material adverse tax consequences to Holdings and its Subsidiaries, taken as a whole (as reasonably determined in good faith by the Borrower);

(l) captive insurance companies;

(m) any direct or indirect Subsidiary of a Subsidiary that is excluded pursuant to clauses (a) through (l) above; and

(n) solely in the case of any Hedging Obligations that would otherwise be secured by Collateral, any Subsidiary that is not an “eligible contract participant” as defined in the Commodity Exchange Act;

provided that, notwithstanding the foregoing, “Excluded Subsidiary” shall not include any of the Schroth German Subsidiaries. Upon any such Subsidiary ceasing to be an Excluded Subsidiary pursuant to clauses (a) through (n) above, such Subsidiary shall comply with Section 5.10, to the extent applicable.

Excluded Swap Obligation” shall mean with respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the Guarantee of such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Swap Obligation (or any guarantee thereof) is or becomes illegal or unlawful 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) (a) by virtue of such Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act at the time the guarantee of or the grant of such security interest by such Guarantor would otherwise have become effective with respect to such related Swap Obligation or (b) in the case of a Swap Obligation that is subject to a clearing requirement pursuant to section 2(h) of the Commodity Exchange Act, because such Guarantor is a “financial entity,” as defined in section 2(h)(7)(C) of the Commodity Exchange Act, at the time the guarantee of (or grant of such security interest by, as applicable) such Guarantor becomes or would become 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 interests is or becomes illegal.

Excluded Taxes” shall mean, with respect to any Agent, any Lender, the Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of any Loan Party hereunder or under any other Loan Document, (a) Taxes imposed on or measured by its net income, gross income, net profits or gross profits (in each case, however denominated) and franchise or capital Taxes imposed on it, by a jurisdiction (or any political subdivision thereof) (i) as a result of such recipient being organized or having its principal office (or, in the case of any Lender, applicable lending office) in, such jurisdiction, or (ii) as a result of any other present or former connection between the jurisdiction imposing such Tax and such recipient other than a connection solely as a result of having executed or delivered, become a party to, performed its obligations or received a payment under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document or sold or assigned an interest in any Loan or any Loan Document, (b) any branch profits Taxes imposed under Section 884(a) of the Code or any similar Tax by any jurisdiction described in clause (a), (c) in the case of a Lender, any U.S. federal withholding Tax that is imposed on amounts payable to such Lender pursuant to laws in force at the time such Lender becomes a party hereto (or designates a new lending office), except (x) to the extent that such Lender (or its assignor, if any) was entitled, immediately prior to the designation of a new lending office (or assignment), to receive additional amounts from any Loan Party with respect to such withholding Tax pursuant to Section 2.14(a) or (y) if such Lender is an assignee pursuant to a request by

 


 

the Borrower under Section 2.15, (d) Taxes attributable to a Lender’s failure to comply with Section 2.14(e), and (e) any U.S. federal withholding Tax imposed under FATCA.

Exercise of Remedies” shall have the meaning assigned to such term in Section 1.11.

Existing Receivables Facilities” shall mean (a) the Receivables Facility of AGC Acquisition LLC pursuant to the Supplier Agreement, dated as of May 28, 2013, with Citibank, N.A. and (b) the Receivables Facility of Applied Engineering, Inc. pursuant to the Supplier Agreement, dated as of May 11, 2004, with Citibank, N.A., in each case, as amended, supplemented, modified or restated from time to time in a manner not materially adverse to the Lenders (it being agreed that any amendment, supplement, modification or restatement to any Existing Receivables Facility with the effect of adding or replacing the Buyer (as defined in the applicable Existing Receivables Facility) named therein (other than any replacement of such Buyer with its successors by operation of law) shall be deemed to be materially adverse to the Lenders).

Existing Revolving Tranche” shall have the meaning assigned to it in Section 2.16(b).

Extended Revolving Credit Commitments” shall have the meaning assigned to such term in Section 2.16(b).

Extended Revolving Credit Loans” means one or more Classes of Revolving Credit Loans that result from an Extension Amendment.

Existing Term Loan Tranche” shall have the meaning assigned to it in Section 2.16(a).

Extended Term Loan” shall have the meaning assigned to such term in Section 2.16(a).

Extending Lender” shall have the meaning assigned to such term in Section 2.16(c).

Extension” means the establishment of an Extension Series by amending a Loan or Commitment pursuant to Section 2.16 and the applicable Extension Amendment.

Extension Amendment” shall have the meaning assigned to it in Section 2.16(d).

Extension Election” shall have the meaning assigned to it in Section 2.16(c).

Extension Request” shall have the meaning assigned to it in Section 2.16(b).

Extension Series” shall have the meaning assigned to it in Section 2.16(b).

Fair Market Value” shall mean with respect to any asset or group of assets on any date of determination, the value of the consideration obtainable in a sale of such asset at such date of determination assuming a sale by a willing seller to a willing purchaser dealing at arm’s length and arranged in an orderly manner over a reasonable period of time having regard to the nature and characteristics of such asset, as determined in good faith by the Borrower.

FATCA” shall mean (a) Sections 1471 through 1474 (including, for the avoidance of doubt, any agreement entered into pursuant to Section 1471(b)(1)) of the Code as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), and the U.S. Treasury Regulations and official published guidance with respect thereto, whether in existence on the date hereof or promulgated thereafter and (b) any intergovernmental

 


 

agreement implementing (a) above and including any rules or guidance implementing such intergovernmental agreements.

FCPA” shall mean the United States Foreign Corrupt Practices Act 1977, 18 U.S.C. 78dd-1 et seq., as amended.

Federal Funds Effective Rate” shall mean, for any day, a fluctuating interest rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System of the United States arranged by federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average of the quotations for the day for such transactions received by the applicable Agent from three federal funds brokers of recognized standing selected by it.

Fee Letter” shall mean that certain Fee Letter, dated as of September 8, 2017, by and between the Borrower and Blackstone.

Fifteenth Amendment” shall mean that certain Fifteenth Amendment to Credit Agreement and First Amendment to Security Agreement dated as of the Fifteenth Amendment Effective Date by and among the Borrower, Holdings, the Guarantors party thereto and the Lenders party thereto.

Fifteenth Amendment Effective Date” shall mean May 10, 2024.

Financial Officer” of any person shall mean the chief executive, chief financial officer, principal accounting officer, treasurer, assistant treasurer or controller of such person or such other person reasonably acceptable to the Administrative Agent.

First Lien Net Leverage Ratio” shall mean, at any date of determination, the ratio of (a) Consolidated Indebtedness that is secured by a Lien on the Collateral (other than Consolidated Indebtedness that is secured by a Lien on the Collateral that is junior in priority to the Liens securing the Obligations), net of unrestricted cash and Cash Equivalents of Holdings and its Subsidiaries, in each case, at such time, to (b) Consolidated EBITDA for the Test Period then most recently ended.

Floor” shall mean (x) with respect to Initial Term Loans and Delayed Draw Term Loans, 1.00% per annum and (y) with respect to Revolving Credit Loans, 0% per annum.

Foreign Lender” shall mean any Lender that is not a “United States person” within the meaning of Section 7701(a)(30) of the Code.

Foreign Plan” shall mean, except for each plan, scheme or arrangement to which contributions are mandated by a government or governmental authority other than the United States, any employee benefit plan maintained or contributed to by any Company primarily to provide defined benefit pension benefits to employees employed outside the United States.

Foreign Subsidiary” shall mean a Subsidiary that is not a Domestic Subsidiary.

Fronting Fee” shall have the meaning assigned to it in Section 2.05(d).

GAAP” shall mean generally accepted accounting principles in the United States, applied in accordance with Section 1.04.

 


 

GE Capital Lease” shall mean the Real Property lease pursuant to the Lease Agreement, dated as of April 12, 2017, by and between 151 Sheree Boulevard Partners, LLC and General Ecology, Inc., as amended, restated, supplemented or otherwise modified from time to time.

GE Earn-out” shall mean the future payment(s) of existing earn-out obligations incurred in connection with the acquisition of General Ecology, Inc., a Pennsylvania corporation.

German Security Documents” means, subject to the Agreed Security Principles, the following German law governed security agreements: (a) a share or interest pledge agreement over the shares or partnership interests in any Schroth German Subsidiary; (b) account pledge agreements in respect of all bank accounts held by any Schroth German Subsidiary; (c) an assignment of German law intercompany receivables and third party trade receivables owed to any Schroth German Subsidiary and (d) a pledge agreement over any intellectual property rights owned by any Schroth German Subsidiary.

GmbH Guarantee” shall have the meaning assigned to it in Section 7.12(a).

GmbH Guarantee Obligations” shall have the meaning assigned to it in Section 7.12(a).

GmbH Guarantor” shall have the meaning assigned to it in Section 7.12(a).

GmbHG” shall mean the German Limited Liability Companies Act (Gesetz betreffend Gesellschaften mit beschränkter Haftung).

 

Governmental Authority” shall mean the government of the United States or any other nation, or of any political subdivision thereof, whether state, provincial or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).“Guaranteed Obligations” shall have the meaning assigned to such term in Section 7.01.

Guarantees” shall mean the guarantees issued pursuant to Article VII by the Guarantors.

Guarantors” shall mean (a) Holdings and each Subsidiary of Holdings listed on Schedule 1.01(a) on the Fifteenth Amendment Effective Date and (b) each other Subsidiary that is or becomes a party to this Agreement pursuant to Section 5.10(b).

Hazardous Materials” shall mean the following: hazardous substances; hazardous wastes; polychlorinated biphenyls (“PCBs”) or any substance or compound containing PCBs; asbestos or any asbestos-containing materials in any form or condition; radon or any other radioactive materials; petroleum, crude oil or any fraction thereof; and any other pollutant or contaminant or chemicals, wastes, materials, compounds, constituents or substances, regulated under any Environmental Laws.

Hedge Bank” shall mean any person that enters into a Hedging Agreement with Holdings or any Subsidiary; provided that, in the case of any Secured Hedging Agreement, if such person is not a Lender, (a) such person and the Secured Hedging Agreement between such person and Holdings or its relevant Subsidiary are reasonably acceptable to the Administrative Agent and Collateral Agent (in each case, acting at the direction of the Required Lenders) and (b) such person executes and delivers to the Agents a letter agreement in form and substance reasonably acceptable to the Administrative Agent and Collateral Agent (in each case, acting at the direction of the Required Lenders) and the Borrower pursuant to which such person (i) appoints such Agents as its agents under the applicable Loan Documents and (ii)

 


 

agrees to be bound by the provisions of Article IX and Section 8.03 of this Agreement and corresponding or similar provisions in any Security Document, in each case, as if it were a Lender.

Hedging Agreement” shall mean (i) any swap, cap, collar, forward purchase or similar agreements or arrangements dealing with interest rates, currency exchange rates or commodity prices, either generally or under specific contingencies, whether or not any such transaction is governed by or subject to any master agreement, and (ii) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement.

Hedging Obligations” shall mean obligations under or with respect to Hedging Agreements.

Holdings” shall have the meaning assigned to such term in the preamble hereto.

Immaterial Subsidiary” shall mean any Subsidiary of Holdings (provided, that in no event shall the Borrower constitute an Immaterial Subsidiary) that (a) did not, as of the last day of the fiscal quarter of Holdings most recently ended for which financial statements are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), as applicable (or, as of the Closing Date, the most recent financial statements delivered prior to the Closing Date), have assets (on an individual basis) with a value in excess of 5.0% of Consolidated Total Assets (for Holdings and its Subsidiaries on a consolidated basis) or Consolidated EBITDA (on an individual basis) representing in excess of 5.0% of Consolidated EBITDA (for Holdings and its Subsidiaries on a consolidated basis and calculated on a Pro Forma Basis) as of such date for the Test Period most recently ended, and (b) taken together with all Immaterial Subsidiaries as of the last day of the fiscal quarter of Holdings most recently ended for which financial statements are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), as applicable (or, as of the Closing Date, the most recent financial statements delivered prior to the Closing Date), did not have assets with a value in excess of 10.0% of Consolidated Total Assets or Consolidated EBITDA representing in excess of 10.0% of Consolidated EBITDA (for Holdings and its Subsidiaries on a consolidated basis and calculated on a Pro Forma Basis) as of such date for the Test Period most recently ended (or as of the Closing Date, as applicable); provided that if, as of the last day of the fiscal quarter of Holdings most recently ended for which financial statements are required to be delivered pursuant to Section 5.01(a) or Section 5.01(b), as applicable (or, as of the Closing Date, the most recent financial statements delivered prior to the Closing Date), the Consolidated Total Assets or Consolidated EBITDA of all Subsidiaries so designated by the Borrower as “Immaterial Subsidiaries” shall have, as of the last day of such Test Period, exceeded the limits set forth in clauses (a) or (b) above, then within ten (10) Business Days after the date such financial statements are so delivered (or so required to be delivered), the Borrower shall redesignate one or more Immaterial Subsidiaries in a written notice to the Administrative Agent, such that, as a result thereof, the Consolidated Total Assets and Consolidated EBITDA of all Subsidiaries that are still designated as “Immaterial Subsidiaries” do not exceed such limits. Upon any such Subsidiary ceasing to be an Immaterial Subsidiary pursuant to the preceding sentence, such Subsidiary shall comply with Section 5.10, to the extent applicable.

Increase Effective Date” shall have the meaning assigned to such term in Section 2.17(b).

Incremental Amendment” shall have the meaning assigned to such term in Section 2.17(f).

 


 

Incremental Amendment Date” shall have the meaning assigned to such term in Section 2.17(d).

Incremental Equivalent Debt” means Indebtedness of a Loan Party in the form of senior secured, junior lien, senior unsecured or subordinated loans or notes, or in each case, any bridge financing in lieu of the foregoing, or secured or unsecured “mezzanine” debt or commitments in respect of any of the foregoing issued, incurred or implemented in lieu of loans which would otherwise be permitted to be incurred under an Incremental Facility; provided, that:

(a)
the aggregate outstanding amount thereof incurred after the Fifteenth Amendment Effective Date shall not exceed the Available Incremental Amount (excluding any amount pursuant to clause (E) or (F) of the definition thereof) at the time of such incurrence;
(b)
the Weighted Average Life to Maturity applicable to such Incremental Equivalent Debt is no shorter than the Weighted Average Life to Maturity of the then existing Term Loans; provided, that this requirement shall not apply to Incremental Equivalent Debt in the form of bridge financings, escrow or similar arrangements that automatically extend or are convertible or exchangeable into other instruments meeting the requirements of this clause (b);
(c)
the final maturity date with respect to such Incremental Equivalent Debt is no earlier than the Latest Maturity Date at the time of such incurrence, or if secured on a junior lien basis or unsecured, ninety-one (91) days after the Latest Maturity Date at the time of such incurrence; provided, that this requirement shall not apply to Incremental Equivalent Debt in the form of bridge financings, escrow or similar arrangements that automatically extend or are convertible or exchangeable into other instruments meeting the requirements of this clause (c);
(d)
any Incremental Equivalent Debt shall be secured only by the Collateral (or a portion thereof) on a pari passu or junior lien basis to the then existing Initial Term Loans and shall only be guaranteed by the Guarantors (or a subset thereof) and any such Incremental Equivalent Debt that is secured shall be subject to an Acceptable Intercreditor Agreement; provided, that any Incremental Equivalent Debt may be secured by assets other than the Collateral or guaranteed by a Subsidiary other than the Guarantors, so long as such assets are contemporaneously included as Collateral and such Subsidiary contemporaneously becomes a Guarantor; provided, further, that for the avoidance of doubt, any Incremental Equivalent Debt may also be unsecured;
(e)
any Incremental Equivalent Debt (other than underwritten or syndicated “high yield” notes) that is pari passu in right of payment and secured by a Lien on the Collateral that is pari passu with the Lien securing the Initial Term Loans shall be subject to the MFN Adjustment (as though such Incremental Equivalent Debt were Incremental Term Loans);
(f)
no Event of Default shall have occurred and be continuing at the time of funding or shall immediately result from the incurrence of any Incremental Equivalent Debt; provided, that, with respect to any Incremental Equivalent Debt incurred in connection with a Limited Condition Transaction, the foregoing condition shall not be required to be satisfied and instead (x) no Specified Event of Default shall have occurred and be continuing or would immediately thereafter result therefrom as of the date of such Credit Extension and (y) no Event of Default shall exist on the Limited Conditionality Test Date; and
(g)
the terms and provisions of any Incremental Equivalent Debt shall, except as otherwise set forth herein, at the election of the Borrower (x) be substantially consistent with the terms and provisions applicable to the Term Loans existing on the date of incurrence of such

 


 

Incremental Equivalent Debt or (y) not be materially more favorable (taken as a whole) to the lenders or investors providing such Incremental Equivalent Debt than those applicable to the then-existing Term Loans on such date of incurrence, taken as a whole, unless such terms and provisions are either (1) applicable after the Latest Maturity Date at the time of such incurrence or (2) included in this Agreement for the benefit of the existing Lenders (but excluding any terms and provisions applicable after the final maturity date of the then existing Term Loans in which case no such consent shall be required).

Incremental Facility” shall have the meaning assigned to such term in Section 2.17(a).

Incremental Facility Closing Date” shall have the meaning assigned to such term in Section 2.17(b).

Incremental Loans” shall have the meaning assigned to such term in Section 2.17(d).

Incremental Revolving Credit Commitments” shall have the meaning assigned to such term in Section 2.17(a).

Incremental Revolving Credit Loan” shall have the meaning assigned to such term in Section 2.17(d).

Incremental Term Loan” shall have the meaning assigned to such term in Section 2.17(a).

Incremental Term Loan Commitments” shall have the meaning assigned to such term in Section 2.17(a).

Incur” shall mean issue, assume, guarantee, incur or otherwise become directly, indirectly or contingently liable for any Indebtedness, including by a guaranty, put, purchase agreement or other agreement, contingent or otherwise, to purchase, redeem, retire, defease or otherwise acquire for value such Indebtedness; provided, however, that any Indebtedness of a person existing at the time such person becomes a Subsidiary (whether by merger, consolidation, acquisition or otherwise) shall be deemed to be Incurred by such person at the time it becomes a Subsidiary. The term “Incurrence” when used as a noun shall have a correlative meaning. Solely for purposes of determining compliance with Section 6.01, (a) amortization of debt discount or the accretion of principal with respect to a non-interest bearing or other discount security, (b) the payment of regularly scheduled interest in the form of additional Indebtedness of the same instrument or the payment of regularly scheduled dividends on Equity Interests in the form of additional Equity Interests of the same class and with the same terms and (c) the obligation to pay a premium in respect of Indebtedness arising in connection with the issuance of a notice of redemption or prepayment or making of a mandatory offer to purchase such Indebtedness, in each case shall be deemed not to be the Incurrence of Indebtedness.

Indebtedness” of any person shall mean, without duplication, (a) all obligations of such person for borrowed money; (b) all obligations of such person evidenced by bonds, debentures, notes or similar instruments; (c) all obligations of such person under conditional sale or other title retention agreements relating to property purchased by such person; (d) all obligations of such person issued or assumed as the deferred purchase price of property or services (excluding (i) trade and other ordinary course accounts payable, similar obligations to trade creditors and accruals for payroll and similar liabilities, in each case, incurred or accrued in the ordinary course of business and any reimbursement obligations under any trade or commercial letters of credit and (ii) any earn-out obligation or similar contingent payment obligation, except to the extent that such obligation is not paid when earned and due and payable); (e) all

 


 

Indebtedness of others secured by any Lien on property owned or acquired by such person, whether or not the obligations secured thereby have been assumed, but limited to the fair market value of such property; (f) all Capital Lease Obligations and Purchase Money Obligations; (g) all Hedging Obligations to the extent required to be reflected on a balance sheet of such person; (h) [reserved]; (i) all obligations of such person for the reimbursement of any obligor in respect of letters of credit, letters of guaranty, bankers’ acceptances and similar credit transactions (other than any reimbursement obligations in respect of trade or commercial letters of credit); (j) any Disqualified Capital Stock of such Person; and (k) all Contingent Obligations of such person in respect of Indebtedness of others of the kinds referred to in clauses (a) through (j) above. The Indebtedness of any person shall include the Indebtedness of any other entity (including any partnership in which such person is a general partner) to the extent such person is liable therefor as a result of such person’s ownership interest in or other relationship with such entity, except (other than in the case of general partner liability) to the extent that terms of such Indebtedness expressly provide that such person is not liable therefor.

Indemnified Taxes” shall mean all Taxes other than Excluded Taxes imposed on or with respect to any payment made by or on account of any obligation of any Loan Party under any Loan Document.

Indemnitee” shall have the meaning assigned to such term in Section 10.03(b).

Independent Assets or Operations” shall be deemed to exist with respect to any Parent Company if such Parent Company’s total assets, revenues, income from continuing operations before income taxes and cash flows from operating activities (excluding in each case amounts related to its investment in Holdings and its Subsidiaries), determined in accordance with GAAP and as shown on the most recent balance sheet of such Parent Company, is more than 5.0% of such Parent Company’s corresponding consolidated amount.

Information” shall have the meaning assigned to such term in Section 10.12.

Initial Borrower” shall have the meaning assigned to such term in the preamble hereto.

IPO” shall mean any transaction or series of related transactions (including any merger with any special purpose acquisition company or a Subsidiary thereof) after which the common Equity Interests of Holdings or any Parent Company constitutes publicly traded Equity Interests on any U.S. securities exchange.

Initial Term Loan” shall mean the loans made on the Closing Date pursuant to Section 2.01(a) and all other “Extended Term Loans” (as defined in the Fifteenth Amendment) under and pursuant to the Fifteenth Amendment. The aggregate principal amount of the Initial Term Loans on the Fifteenth Amendment Effective Date is $252,898,598.45.

Initial Term Loan Commitment” shall mean, with respect to any Lender, its obligation to make Initial Term Loans to the Borrower on the Closing Date pursuant to Section 2.01(a) in an aggregate principal amount not to exceed the amount set forth opposite such Lender’s name on Schedule 2.01 (as in effect on the Closing Date) under the caption “Initial Term Loan Commitment”. The aggregate principal amount of the Initial Term Loan Commitments on the Closing Date (prior to giving effect to the making of the Initial Term Loans on the Closing Date) was $160,000,000.00.

Intellectual Property” shall have the meaning assigned to such term in the Security Agreement.

 


 

Intercompany Note” shall mean a promissory note by and among Holdings and each of its Subsidiaries in form and substance reasonably satisfactory to the Collateral Agent.

Interest Election Request” shall mean a request by the Borrower to convert or continue a Loan in accordance with Section 2.06, substantially in the form of Exhibit D or such other form as is reasonably acceptable to the applicable Agent.

Interest Payment Date” shall mean (a) with respect to any ABR Loan, the last Business Day of each March, June, September and December to occur during any period in which such Loan is outstanding, commencing December 31, 2017, (b) with respect to any Term SOFR Loan, the last day of the Interest Period applicable to the Loan and, in the case of a Term SOFR Loan with an Interest Period of more than three months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three months’ duration after the first day of such Interest Period and (c) with respect to any Loan, the Maturity Date applicable hereto.

Interest Period” shall mean, with respect to any Term SOFR Loans, the period commencing on the date of the issuance of such Loans and ending on the numerically corresponding day in the calendar month that is one, three or six months (or, if agreed by all Lenders, twelve months or less than one month) thereafter, as the Borrower may elect; provided, that (a) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day, (b) any Interest Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period, (c) no Interest Period shall extend beyond the Maturity Date and (d) at any one time there shall be no more than five different Interest Periods in effect. For purposes hereof, the date of the issuance of a Loan initially shall be the date on which such Loan is made and thereafter shall be the effective date of the most recent conversion or continuation of such Loan.

Investment” shall mean, with respect to any person, any investment by such person in any other person (including Affiliates) in the form of loans, guarantees, advances, or capital contributions (excluding (a) commission, travel, and similar advances to officers and employees of such person made in the ordinary course of business for bona fide business purposes, and (b) bona fide Accounts arising in the ordinary course of business), purchases or other acquisitions of Indebtedness, Equity Interests, or all or substantially all of the assets of such other person (or of any division or business line of such other person).

The amount of any Investment outstanding at any time shall be the original cost of such Investment, reduced by any dividend, distribution, interest payment, return of capital, repayment, or other amount received by Holdings or a Subsidiary in respect of such Investment (provided that, with respect to amounts received other than in the form of cash or Cash Equivalents, such amount shall be equal to the Fair Market Value of such consideration). An Investment will be deemed to have been made at the time of making any such loans, advance or capital contribution, purchase or other acquisition for consideration of Indebtedness, Equity Interests or other securities.

Investment Property” shall have the meaning assigned to such term in the Security Agreement.

ISP” shall mean, with respect to any Letter of Credit, the “International Standby Practices 1998” published by the Institute of International Banking Law & Practice, Inc. (or such later version thereof as may be in effect at the time of issuance).

 


 

Issuing Bank” shall mean, as the context may require, (a) Citibank, N.A. and Royal Bank of Canada; (b) any other Lender that may become an Issuing Bank pursuant to Sections 2.02(j) and (k) with respect to Letters of Credit issued by such Lender; and/or (c) collectively, all of the foregoing. Any Issuing Bank may, at its discretion, arrange for one or more Letters of Credit to be issued by one or more Affiliates of such Issuing Bank (and each such Affiliate shall be deemed to be an “Issuing Bank” for all purposes of the Loan Documents). In the event that there is more than one Issuing Bank at any time, references herein and in the other Loan Documents to the Issuing Bank shall be deemed to refer to the Issuing Bank in respect of the applicable Letter of Credit or to all Issuing Banks, as the context requires.

Joinder Agreement” shall mean a joinder agreement substantially in the form of Exhibit E or such other form as is reasonably acceptable to the Administrative Agent (acting at the direction of the Required Lenders).

Latest Maturity Date” shall mean, at any time, the latest Maturity Date applicable to any Loan hereunder at such time, including the latest maturity date of any Extended Term Loan, as extended in accordance with this Agreement from time to time.

LC Commitment” shall mean the commitment of the Issuing Bank to issue Letters of Credit pursuant to Section 2.02.

LC Disbursement” shall mean a payment or disbursement made by the Issuing Bank pursuant to a drawing under a Letter of Credit.

LC Exposure” shall mean at any time the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at such time plus (b) the aggregate principal amount of all Reimbursement Obligations outstanding at such time. The LC Exposure of any Revolving Lender at any time shall mean its Pro Rata Percentage of the aggregate LC Exposure at such time.

LC Extension” shall have the meaning assigned to such term in Section 2.02(c)(i).

LC Obligations” shall mean, as at any date of determination, the aggregate amount available to be drawn under all outstanding Letters of Credit (including any and all Letters of Credit for which documents have been presented that have not been honored or dishonored) plus the aggregate of all Unreimbursed Amounts, including all L/C Disbursements. For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.13 and Rule 3.14 of the International Standby Practices (ISP98), such Letter of Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn. Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit in effect at such time.

LC Participation Fee” shall have the meaning assigned to such term in Section 2.05(c).

LC Request” shall mean an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by the Issuing Bank in accordance with the terms of Section 2.02(b).

LC Sublimit” shall mean $25,000,000.

Leases” shall mean any and all leases, subleases, tenancies, options, concession agreements, rental agreements, occupancy agreements, franchise agreements, access agreements and any other agreements (including all amendments, extensions, replacements, renewals, modifications and/or

 


 

guarantees thereof), whether or not of record and whether now in existence or hereafter entered into, affecting the use or occupancy of all or any portion of any Real Property.

Lenders” shall have the meaning assigned to such term in the preamble hereto.

Letter of Credit” shall mean any Standby Letter of Credit in each case issued or to be issued by an Issuing Bank for the account of the Borrower or any Subsidiary thereof pursuant to Section 2.02.

Letter-of-Credit Rights” shall mean “letter of credit rights” as such term is defined in the UCC.

Letter of Credit Expiration Date” shall mean the date which is not less than five (5) Business Days prior to the Revolving Maturity Date (or, if such date is not a Business Day, the next succeeding Business Day), or such later date to the extent such Letter of Credit has been cash collateralized in an amount equal to 103% of the LC Exposure or backstopped with another letter of credit for the period after the Revolving Maturity Date in a manner to be mutually and reasonably agreed between the applicable Issuing Bank and the Borrower.

Lien” shall mean, with respect to any property, (a) any mortgage, deed of trust, lien, pledge, encumbrance, claim, charge, collateral assignment, hypothecation, security interest or encumbrance of any kind or any filing of any financing statement under the UCC or any other similar notice of lien under any similar notice or recording statute of any Governmental Authority (other than filings or similar notices which do not evidence a valid lien or which have been filed without authorization), including any easement, right-of-way or other encumbrance on title to Real Property, in each of the foregoing cases whether voluntary or imposed by law; and (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such property.

Limited Condition Transactions” means (1) any Permitted Acquisition or other Investment or similar transaction (whether by merger, amalgamation, consolidation or other business combination or the acquisition of Equity Interests or otherwise), in each case, permitted hereunder by Holdings or one or more of its Subsidiaries whose consummation is not conditioned upon the availability of, or on obtaining, third party financing, (2) any redemption, repurchase, defeasance, satisfaction and discharge or repayment of Indebtedness requiring irrevocable notice in advance thereof (which notice, for the avoidance of doubt, may be conditioned upon the occurrence of refinancing or any other transaction), (3) any Restricted Payment and (4) any Asset Sale or other disposition permitted hereunder by Holdings or one or more of its Subsidiaries.

Limited Conditionality Election” shall have the meaning assigned to such term in Section 1.06.

Limited Conditionality Test Date” shall mean with respect to any Limited Condition Transaction, the date of the execution of the agreement, giving of irrevocable notice or declaration with respect to such Limited Condition Transaction.

Loan Documents” shall mean this Agreement, the Fifteenth Amendment, the Sixteenth Amendment, the Notes, the Agency Fee Letter, the Fee Letter, the Revolving Agency Fee Letter, the DDTL Fee Letter, the Sixteenth Amendment Fee Letter and the Security Documents.

Loan Parties” shall mean the Borrower and the Guarantors.

 


 

Loans” shall mean the loans made by the Lenders to the Borrower pursuant to this Agreement.

Loar Acquisition” shall have the meaning assigned to such term in the third recital hereto.

Loar Acquisition Agreement” shall have the meaning assigned to such term in the first recital hereto.

Loar Group” shall have the meaning assigned to such term in the preamble hereto.

Loar Target” shall have the meaning assigned to such term in the first recital hereto.

Market Capitalization” means an amount equal to (i) the total number of issued and outstanding shares of common Equity Interests of Holdings or any direct or indirect parent of Holdings on the date of declaration of the relevant dividend multiplied by (ii) the arithmetic mean of the closing price per share of such common Equity Interests on the applicable exchange for the 30 consecutive trading days immediately preceding the date of declaration of such dividend

Margin Stock” shall have the meaning assigned to such term in Regulation U.

Master Agreement” shall have the meaning assigned to such term in the definition of “Hedging Agreement”.

Material Adverse Effect” shall mean a material adverse effect on (a) the business, assets, financial condition or results of operations, in each case, of Holdings and its Subsidiaries, taken as a whole; (b) the ability of the Loan Parties (taken as a whole) to perform any of their payment obligations under any Loan Document; or (c) the rights of or benefits or remedies (taken as a whole) available to the Lenders or the Collateral Agent under the Loan Documents (taken as a whole).

Material Indebtedness” shall mean any Indebtedness (other than the Loans or Hedging Obligations) of Holdings or any of its Subsidiaries in an aggregate outstanding principal amount exceeding the greater of (i) $24,000,000 and (ii) 20.0% of Consolidated EBITDA of Holdings and its Subsidiaries for the most recently ended Test Period (calculated on a Pro Forma Basis); provided that the Indebtedness under the GE Capital Lease shall not constitute Material Indebtedness hereunder to the extent the early termination of the GE Capital Lease could not reasonably be expected to result in a Material Adverse Effect.

Material Intellectual Property” means any Intellectual Property that (a) is owned by Holdings or any of its Subsidiaries that is not an Excluded Subsidiary and (b) is material to the business of Holdings and its Subsidiaries (taken as a whole).

Maturity Date” shall mean, (a) with respect to the Initial Term Loans (including, for the avoidance of doubt, the Sixteenth Amendment Incremental Term Loans) and any Delayed Draw Term Loans (other than Extended Term Loans), May 10, 2030 (the “Term Loan Maturity Date”); (b) with respect to the Revolving Credit Commitments and any Revolving Credit Loans, May 10, 2029 (the “Revolving Maturity Date”); (c) with respect to any Incremental Term Loans, Incremental Revolving Credit Commitments and Incremental Revolving Credit Loans the final maturity date as specified in the applicable Incremental Amendment; and (d) with respect to any Extended Term Loans and Extended Revolving Credit Commitments, the final maturity date as specified in the applicable Extension Amendment; provided that, in each case, if such day is not a Business Day, the Maturity Date shall be the Business Day immediately preceding such day.

 


 

Maverick Earn-out” shall mean the future payment(s) of existing earn-out obligations incurred in connection with the acquisition of Maverick Molding Co., an Ohio corporation.

Maximum Rate” shall have the meaning assigned to such term in Section 10.14.

Minimum Borrowing Amount” shall mean:

(a) in the case of Term SOFR Loans that are Initial Term Loans, $500,000;

(b) in the case of Term SOFR Loans that are Revolving Credit Loans, $100,000;

(c) in the case of Term SOFR Loans that are Delayed Draw Term Loans, $1,000,000;

(d) in the case of ABR Loans that are Initial Term Loans, $500,000;

(e) in the case of ABR Loans that are Revolving Credit Loans, the lesser of $100,000 and the Revolving Credit Commitment at such time; and

(f) in the case of ABR Loans that are Delayed Draw Term Loans, $1,000,000.

Mortgage” shall mean an agreement, including a mortgage, deed of trust, assignment of leases and rents or any other document, creating and evidencing a Lien on a Mortgaged Property, which shall be substantially in the form reasonably satisfactory to the Collateral Agent, in each case, with such schedules and including such provisions as shall be necessary to conform such document to applicable local or as shall be customary under applicable local law.

Mortgaged Property” shall mean (a) each owned Real Property identified as a Mortgaged Property on Schedule 3(b) to the Perfection Certificate dated as of the Closing Date and (b) each owned Real Property located in the United States, if any, which shall be subject to a Mortgage delivered after the Closing Date pursuant to Section 5.10.

Multiemployer Plan” shall mean a multiemployer plan within the meaning of Section 4001(a)(3) or Section 3(37) of ERISA (a) to which any Loan Party or any ERISA Affiliate is making or accruing an obligation to make contributions; or (b) to which any Loan Party or any ERISA Affiliate has within the preceding six plan years made contributions and with respect to which any Loan Party or any ERISA Affiliate has any ongoing obligation or could reasonably be expected to incur liability.

Net Asset Determination” shall have the meaning assigned to such term in Section 7.12(b)(vi)(F).

Net Cash Proceeds” shall mean an amount equal to:

(j)
with respect to any Asset Sale, the cash proceeds received by Holdings or any of its Subsidiaries (including cash proceeds subsequently received (as and when received by Holdings or any of its Subsidiaries) in respect of non-cash consideration initially received) net of (i) (A) reasonable and customary expenses paid or payable in connection with such sale by Holdings, any of its Subsidiaries or any of its direct or indirect parent companies to third parties who are not Affiliates of Holdings, including brokers’ fees or commissions, legal, accounting and other professional and transactional fees and (B) transfer and similar Taxes and Holdings’ good faith estimate of Taxes paid or payable in connection with such sale by Holdings, any of its Subsidiaries or any of its direct or indirect parent companies (and, without duplication, any Permitted Tax Distributions, pursuant to Section 6.07(b)(vi) to the extent paid or payable

 


 

in connection with such sale); (ii) amounts provided as a reserve, in accordance with GAAP, against (x) any liabilities under any indemnification obligations associated with such Asset Sale or (y) any other liabilities retained by Holdings or any of its Subsidiaries associated with the properties sold in such Asset Sale (provided that, to the extent and at the time any such amounts are released from such reserve, such amounts shall constitute Net Cash Proceeds); (iii) Holdings’ good faith estimate of payments required to be made with respect to unassumed liabilities relating to the properties sold within one (1) year of such Asset Sale (provided that, to the extent such cash proceeds are not used to make payments in respect of such unassumed liabilities within one (1) year of such Asset Sale, such cash proceeds shall constitute Net Cash Proceeds); (iv) the principal amount, premium or penalty, if any, interest and other amounts on any Indebtedness which is secured by a Lien on the properties sold in such Asset Sale (so long as such Lien was permitted to encumber such properties under the Loan Documents at the time of such sale) and which is repaid with such proceeds (other than (A) any such Indebtedness assumed by the purchaser of such properties and (B) the Loans); (v) in the case of any Asset Sale by a non-Wholly-Owned Subsidiary, the pro rata portion of the Net Cash Proceeds thereof (calculated without regard to this clause (v)) attributable to minority interests and not available for distribution to or for the account of Holdings or a Wholly-Owned Subsidiary as a result thereof and (vi) that are not applied or invested as provided in Section 2.09(b)(vi); provided that (a) no net cash proceeds calculated in accordance with the foregoing realized in a single transaction or series of related transactions shall constitute Net Cash Proceeds unless such net cash proceeds shall exceed the greater of (I) $12,000,000 and (ii) 10.0% of Consolidated EBITDA of Holdings and its Subsidiaries for the most recently ended Test Period (calculated on a Pro Forma Basis) and (b) no net cash proceeds with respect to any other Asset Sale or Casualty Event not excluded from the requirements of this proviso shall constitute Net Cash Proceeds under this proviso in any fiscal year until the aggregate amount of all such net cash proceeds in such fiscal year shall exceed the greater of (I) $24,000,000 and (ii) 20.0% of Consolidated EBITDA of Holdings and its Subsidiaries for the most recently ended Test Period (calculated on a Pro Forma Basis) (and thereafter only net cash proceeds in excess of such amount shall constitute Net Cash Proceeds under this proviso);
(k)
with respect to any issuance or sale of Equity Interests or Debt Issuance by Holdings or any of its Subsidiaries, the cash proceeds thereof, net of reasonable and customary fees, commissions, costs and other expenses incurred in connection therewith to third parties who are not Affiliates of Holdings; and
(l)
with respect to any Casualty Event, the cash insurance proceeds, cash condemnation awards and other cash compensation received in respect thereof, net of (i) all reasonable and customary costs and expenses incurred in connection with the collection of such proceeds, awards or other compensation in respect of such Casualty Event; and (ii) in the case of any Casualty Event of a non-Wholly-Owned Subsidiary, the pro rata portion of the Net Cash Proceeds thereof (calculated without regard to this clause (ii)) attributable to minority interests and not available for distribution to or for the account of Holdings or a Wholly-Owned Subsidiary as a result thereof.

Non-Consenting Lender shall mean any Lender that does not approve any consent, waiver or amendment that (a) requires the approval of all or all affected Lenders of the applicable Class or Classes in accordance with the terms of Section 10.02 and (b) has been approved by the Required Lenders.

Non-Finance Lease Obligation” means, as applied to any Person, any lease of any property (whether real, personal or mixed) by that Person as lessee that, in conformity with GAAP (for the avoidance of doubt, subject to Section 1.04), is not and is not required to be accounted for as a capital lease or finance lease on the balance sheet of that Person. For the avoidance of doubt, a straight-line or operating lease shall be considered a Non-Finance Lease Obligation.

 


 

Notes” shall mean any notes evidencing the Commitments under, or the Loans issued pursuant to, this Agreement, substantially in the form of Exhibit F or such other form as is reasonably acceptable to the applicable Agent.

NYFRB” shall mean the Federal Reserve Bank of New York.

Obligations” shall mean (a) obligations of Holdings, the Borrower and the other Loan Parties from time to time arising under or in respect of the due and punctual payment of (i) the principal of and premium, if any, and interest (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Loans, when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise, each payment required to be made by the Borrower and the other Loan Parties under this Agreement in respect of any Letter of Credit, when and as due, including payments in respect of Reimbursement Obligations with respect to Letters of Credit, interest thereon and obligations to provide cash collateral with respect thereto and (iii) all other monetary obligations, including fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), of Holdings, the Borrower and the other Loan Parties under this Agreement, the other Loan Documents, Secured Cash Management Agreements and Secured Hedging Agreements, and (b) the due and punctual performance of all covenants, agreements, obligations and liabilities of Holdings, the Borrower and the other Loan Parties under or pursuant to this Agreement and the other Loan Documents. Notwithstanding the foregoing, the Obligations shall not include the Excluded Swap Obligations.

OFAC” shall mean the United States Department of Treasury’s Office of Foreign Assets Control.

Officer’s Certificate” shall mean a certificate executed by a Responsible Officer in his or her official (and not individual) capacity.

Open Market Purchase Expiry Date” has the meaning assigned to such term in Section 10.04(g).

Organizational Documents” shall mean, with respect to any person, (a) in the case of any corporation, the certificate of incorporation and by-laws (or similar documents) of such person, (b) in the case of any limited liability company, the certificate of formation and operating agreement (or similar documents) of such person, (c) in the case of any limited partnership, the certificate of formation and limited partnership agreement (or similar documents) of such person, (d) in the case of any general partnership, the partnership agreement (or similar document) of such person and (e) in any other case, the functional equivalent of the foregoing, including, in the case of any entity incorporated or established in Germany, a commercial register extract (Handelsregisterauszug), its articles of association or partnership agreement (Satzung oder Gesellschaftsvertrag), any by-laws (Geschäftsordnung) and a list of shareholders (Gesellschafterliste).

Other Taxes” shall mean all present or future stamp, court or documentary Taxes or any other excise, intangible, recording, filing, property or similar Taxes arising from any payment made hereunder or under any other Loan Document or from the execution, delivery or enforcement of, from the receipt or perfection of a security interest under, or otherwise with respect to, this Agreement or any other Loan Document, except any such Taxes that are described in clause (a)(ii) of the definition of Excluded Taxes imposed with respect to an assignment, grant of a participation, designation of a different lending

 


 

office or other transfer (other than an assignment, grant of a participation, designation of a different lending office or other transfer made pursuant to Section 2.15).

Paid in Full” shall mean the payment in full in cash of (x) the Obligations (other than obligations pursuant to Secured Hedging Agreements and Secured Cash Management Agreements and inchoate or contingent or reimbursable obligations for which no claim has been asserted), (y) the Guaranteed Obligations (other than obligations pursuant to Secured Hedging Agreements and Secured Cash Management Agreements, except to the extent an event of default has occurred thereunder and Section 8.03 is then applicable, and inchoate or contingent or reimbursable obligations for which no claim has been asserted) or (z) the Secured Obligations (as defined in the Security Agreement) (other than obligations pursuant to Secured Hedging Agreements and Secured Cash Management Agreements, except to the extent an event of default has occurred thereunder and Section 8.03 is then applicable, and inchoate or contingent or reimbursable obligations for which no claim has been asserted), as applicable. “Payment in Full” shall have a meaning correlative thereto.

Parallel Debt” shall have the meaning assigned to such term in Section 9.17(b).

Parent” shall mean Loar Acquisition 13, LLC, a Delaware limited liability company and parent company of Holdings.

Parent Company” shall mean any Person of which the Borrower is a direct or indirect Subsidiary.

Participant” shall have the meaning assigned to such term in Section 10.04(c).

Participant Register” shall have the meaning assigned to such term in Section 10.04(c).

Paycheck Protection Program” shall mean the Paycheck Protection Program, Section 1102 of Title I of the Coronavirus Aid, Relief, and Economic Security Act, as the same may be amended from time to time, and the rules and regulations promulgated thereunder.

PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions.

PCBs” shall have the meaning assigned to such term in the definition of “Hazardous Materials.”

Perfection Certificate” shall mean a certificate substantially in the form of Exhibit G-1 or any other form approved by the Collateral Agent, executed by the Borrower and each Guarantor, as the same shall be supplemented from time to time by a Perfection Certificate Supplement or otherwise.

Perfection Certificate Supplement” shall mean a certificate supplement substantially in the form of Exhibit G-2 or any other form approved by the Collateral Agent.

Periodic Term SOFR Determination Day” has the meaning specified in the definition of “Term SOFR”.

Permitted Acquisition” shall mean any Acquisition to the extent that:

(i)
no Event of Default under Sections 8.01(a) or (b) or, with respect to the Borrower, Sections 8.01(g) or (h) shall have occurred and be continuing;

 


 

(ii)
the aggregate amount of Investments made by Loan Parties in connection with Targets that do not become, and assets that will not be held by, Loan Parties shall not exceed, for all Acquisitions in the aggregate, the greater of $60,000,000 and 50.0% of Consolidated EBITDA of Holdings and its Subsidiaries for the most recently ended Test Period (calculated on a Pro Forma Basis); and
(iii)
with respect to such Acquisition, the Loan Parties shall comply with the requirements of Section 5.10, to the extent applicable; provided that, notwithstanding the foregoing provisions of this definition, the Schroth Acquisition shall be deemed to be a Permitted Acquisition.

Permitted Holder” shall mean any of the Closing Date Investors and any of their respective Affiliates (other than any portfolio companies).

Permitted Investment” shall mean any of the following Investments by Holdings or any of its Subsidiaries:

(m)
Investments (i) in Holdings or any Subsidiary that is a Loan Party, (ii) by a Subsidiary that is not a Loan Party in a Subsidiary that is not a Loan Party and (iii) by a Loan Party in a Subsidiary that is not a Loan Party; provided that the aggregate amount of such Investments by Loan Parties in Subsidiaries that are not Loan Parties shall not exceed the greater of $60,000,000 and 50.0% of Consolidated EBITDA of Holdings and its Subsidiaries for the most recently ended Test Period (calculated on a Pro Forma Basis) outstanding at any time;
(n)
a Permitted Acquisition;
(o)
cash and Cash Equivalents;
(p)
extensions of trade credit or accounts receivable credit in the ordinary course of business;
(q)
payroll, travel and similar advances to cover matters that are expected at the time of such advances ultimately to be treated as expenses for accounting purposes and that are made in the ordinary course of business;
(r)
loans and advances in the ordinary course of business to the employees, officers and members of management of Holdings or any of its Subsidiaries, so long as the aggregate principal amount of all such loans and advances not repaid in cash at any time outstanding (determined without regard to any write-downs or write-offs of such loans and advances) shall not exceed the greater of $12,000,000 and 10% of Consolidated EBITDA of Holdings and its Subsidiaries for the most recently ended Test Period (calculated on a Pro Forma Basis);
(s)
any person to the extent such Investment represents the non-cash portion of the consideration received for an Asset Sale as permitted pursuant to Section 6.04 or any other asset disposition not otherwise prohibited hereunder;
(t)
Investments in the form of notes issued by officers, directors and employees of Holdings or any Subsidiary for the sole purpose of purchasing Equity Interests of Holdings or any parent entity thereof;
(u)
Investments arising from Hedging Agreements entered into in the ordinary course of business by Holdings or any of its Subsidiaries and not for the purpose of speculation;

 


 

(v)
any Investment listed on Schedule 6.07(a) and any extension, modification, replacement or renewal of any such Investments existing on the Fifteenth Amendment Effective Date, but only to the extent not involving additional advances, contributions or other Investments of cash or other assets or other increases thereof other than as a result of the accrual or accretion of interest or original issue discount or the issuance of pay-in-kind securities, in each case, pursuant to the terms of such Investment as in effect on the Fifteenth Amendment Effective Date;
(w)
guarantees of Indebtedness permitted under Section 6.01 and performance guarantees and Contingent Obligations incurred in the ordinary course of business;
(x)
(i) bank deposits in the ordinary course of business; and (ii) the endorsement of instruments for collection or deposit in the ordinary course of business;
(y)
increases in Investments reflecting an increase in the value of the Investments;
(z)
any Loan Party may capitalize or forgive any debt owed to it by any other Loan Party;
(aa)
Investments in an aggregate amount not exceeding at any time outstanding the greater of $60,000,000 and 50% of Consolidated EBITDA of Holdings and its Subsidiaries for the most recently ended Test Period (calculated on a Pro Forma Basis);
(bb)
Investments in the form of intercompany Indebtedness permitted pursuant to Section 6.01(k);
(cc)
Investments (including debt obligations) received in connection with the bankruptcy or reorganization of suppliers and customers and in settlement of delinquent obligations, of and other disputes with, customers and suppliers arising in the ordinary course of business;
(dd)
Investments in an aggregate amount not to exceed the Cumulative Amount, so long as in respect of Investments made using clause (b) of the Cumulative Amount only, no Specified Event of Default shall have occurred and be continuing or would otherwise result therefrom; and
(ee)
any Investments if (x) no Specified Event of Default shall have occurred and be continuing or would otherwise result therefrom and (y) on a Pro Forma Basis after giving effect to such Investment, the Total Net Leverage Ratio would be equal to or less than 5.50 to 1.00 as of the last day of the most recently ended Test Period.

Permitted Liens” shall have the meaning assigned to such term in Section 6.02.

Permitted Tax Distributions” shall mean, for any taxable period (or portion thereof) that Holdings (or any other person of which Borrower is a direct or indirect wholly owned Subsidiary) is treated as a corporation for U.S. federal income tax purposes and for which Borrower and/or any of its Subsidiaries are members (or are pass-through entities of such members) of a consolidated, combined, unitary or similar income Tax group for U.S. federal, state, local or foreign income Tax purposes for which Holdings (or such other person of which Borrower is a direct or indirect wholly owned Subsidiary) is the common parent, the Borrower may make Restricted Payments to, or on behalf of, Holdings (or such other person) to pay the portion of any U.S. federal, state, local or foreign income Taxes (as applicable) of Holdings (or such other person) shown to be due (or estimated to be due) on the applicable consolidated, combined, unitary or similar income Tax Return for such taxable period that are attributable to the income of the Borrower and/or its applicable Subsidiaries; provided that the aggregate amount of such distributions shall not exceed the aggregate Taxes the Borrower and/or its Subsidiaries, as applicable, would be required to pay in respect of

 


 

such U.S. federal, state, local and foreign Taxes as a stand-alone consolidated, combined, unitary or similar Tax group for such taxable period. After the end of each taxable year, if the distributions paid to Holdings (or such other person) pursuant to this definition for such taxable year exceeds the amount of distributions permitted pursuant to this definition for such taxable year, any such excess shall reduce any Permitted Tax Distributions paid to Holdings (or such other person) by the Borrower in the following taxable year.

Person” or “person” shall mean any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

Plan” shall mean any “employee pension benefit plan” (other than a Multiemployer Plan) subject to the provisions of Title IV or Section 302 of ERISA or Section 412 or 4971 of the Code which is maintained, sponsored, contributed to, or required to be contributed to by any Loan Party or its ERISA Affiliate or with respect to which any Loan Party could reasonably be expected to incur liability.

Premises” shall have the meaning assigned thereto in the applicable Mortgage.

Pro Forma Basis,” “Pro Forma Compliance” and “Pro Forma Effect” shall mean, as to any Person, for any events as described below that occur subsequent to the commencement of a period for which the effect of such events is being calculated, and giving effect to the events for which such calculation is being made, such calculation will give pro forma effect to such events as if such events occurred on the first day of the four consecutive fiscal quarter period ended on or before the occurrence of such event (the “Reference Period”): (a) in making any determination of Consolidated EBITDA or any component thereof, effect shall be given to (i) any Specified Transaction or restructurings of the business of Holdings or any of the Subsidiaries and (ii) the amount of “run‑rate” cost savings, operating expense reductions and synergies projected by the Borrower in good faith to result from, or relating to, any Specified Transaction (including, for the avoidance of doubt, acquisitions and investments occurring prior to the Fifteenth Amendment Effective Date) which is being given pro forma effect that have been realized or are expected to be realized and for which the actions necessary to realize such cost savings, operating expense reductions and synergies are taken, committed to be taken or with respect to which substantial steps have been taken or are expected to be taken (in the good faith determination of the Borrower) (calculated on a pro forma basis as though such cost savings, operating expense reductions and synergies had been realized in full on the first day of such period and as if such cost savings, operating expense reductions and synergies were realized in full during the entirety of such period and “run‑rate” means the full recurring benefit for a period that is associated with any action taken, committed to be taken or with respect to which substantial steps have been taken or are expected to be taken (including any savings expected to result from the elimination of a public target’s compliance costs with public company requirements), whether prior to or following the Fifteenth Amendment Effective Date , net of the amount of actual benefits realized during such period from such actions, and any such adjustments shall be included in the initial pro forma calculations of such financial ratios or tests and during any subsequent Test Period in which the effects thereof are expected to be realized) relating to such Specified Transaction; provided that (a) such amounts are reasonably identifiable, (b) such actions are taken, committed to be taken or with respect to which substantial steps have been taken or are expected to be taken (in the good faith determination of the Borrower) no later than twenty-four (24) months after the date of such Specified Transaction (or actions undertaken or implemented prior to the consummation of such Specified Transaction), (c) no amounts shall be added to the extent duplicative of any amounts that are otherwise added back in computing Consolidated EBITDA (or any other components thereof), whether through a pro forma adjustment or otherwise, with respect to such period; provided that such “run-rate” cost savings, synergies and operating expense reductions added back pursuant to this clause (ii) in any Test Period, when aggregated with the amount of any increase for such period in Consolidated EBITDA as a result of any “run-rate” cost savings, synergies and operating expense reductions pursuant to clause (s) of the definition of “Consolidated EBITDA”, shall not exceed in the aggregate 30.0% of Consolidated EBITDA for such period (as calculated after giving

 


 

effect to any such “run rate” adjustments); (b) in making any determination on a Pro Forma Basis, or Pro Forma Compliance or of Pro Forma Effect, (i) all Indebtedness (including Indebtedness issued, incurred or assumed as a result of, or to finance, any relevant transactions and for which the financial effect is being calculated, whether incurred under the Loan Documents or otherwise) issued, incurred, assumed or repaid (in each case, other than Indebtedness incurred or repaid under any revolving credit facility or line of credit in the ordinary course of business for working capital purposes) during the Reference Period (or with respect to Indebtedness repaid, during the Reference Period or subsequent to the end of the Reference Period and prior to, or simultaneously with, the event for which the calculation of any such ratio is made) shall be deemed to have been issued, incurred, assumed or repaid at the beginning of such period and (ii) interest expense of such Person attributable to interest on any Indebtedness, for which pro forma effect is being given as provided in preceding clause (i), bearing floating interest rates shall be computed on a pro forma basis as if the rates that would have been in effect during the period for which pro forma effect is being given had been actually in effect during such periods, and (c) notwithstanding anything to the contrary in this definition or in any classification under GAAP of any Person, business, assets or operations in respect of which a definitive agreement for the asset sale, transfer, disposition or lease thereof has been entered into as discontinued operations, no Pro Forma Effect shall be given to the classification thereof as discontinued operations (and the Consolidated EBITDA or any component thereof attributable to any such Person, business, assets or operations shall not be excluded for any purposes hereunder) until such asset sale, transfer, disposition or lease shall have been consummated. If since the beginning of any applicable Reference Period any Person that subsequently became a Subsidiary of Holdings, or was merged, or consolidated with or into a Subsidiary of Holdings since the beginning of such Reference Period, shall have made any Specified Transaction that would have required adjustment pursuant to this definition, then such financial ratio or test shall be calculated to give pro forma effect thereto in accordance with this definition.

Projections” shall have the meaning assigned to such term in Section 3.04(c).

Properties” shall have the meaning assigned to such term in Section 3.17(a)(i).

property” shall mean any right, title or interest in or to property or assets of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible and including Equity Interests or other ownership interests of any person and whether now in existence or owned or hereafter entered into or acquired, including all Real Property.

Pro Rata Percentage” of any Revolving Lender at any time shall mean the percentage of the total Revolving Credit Commitments of all Revolving Lenders represented by such Lender’s Revolving Credit Commitment; provided that for purposes of Section 2.02(d), “Pro Rata Percentage” shall mean the percentage of the total Revolving Credit Commitments (disregarding the Revolving Credit Commitment of any Defaulting Lender to the extent its LC Exposure is reallocated to the non-Defaulting Lenders) represented by such Lender’s Revolving Credit Commitment. If the Revolving Credit Commitments have terminated or expired, the Pro Rata Percentage shall be determined based upon the Revolving Credit Commitments most recently in effect, after giving effect to any assignments.

Public Company Costs” shall mean, as to any Person, reasonable costs associated with compliance with the requirements of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith and costs relating to compliance with the provisions of the Securities Act and the Exchange Act or any other comparable body of laws, rules or regulations, as applicable to companies with equity securities held by the public, the rules of national securities exchange companies with listed equity, as to directors’ compensation, fees and expense reimbursement, costs relating to investor relations, shareholder meetings and reports to shareholders, directors’ and officers’ insurance and other executive costs, legal and other professional fees, and listing fees, in each case to the extent arising solely by virtue of the listing of such Person’s equity securities on a national securities exchange.

 


 

Purchase Money Obligation” shall mean, for any person, the obligations of such person in respect of Indebtedness (including Capital Lease Obligations) incurred for the purpose of financing all or any part of the purchase price of any property or the cost of installation, construction or improvement of any property and any refinancing thereof; provided, however, that (a) such Indebtedness is incurred no later than 270 days after such acquisition, installation, construction or improvement of such property by such person and (b) the amount of such Indebtedness does not exceed 100% of the cost of such acquisition, installation, construction or improvement, as the case may be.

Qualified ECP Guarantor” shall mean, in respect of any Swap Obligation, each Loan Party that has total assets exceeding $10,000,000 at the time the relevant Guarantee or grant of the relevant security interest becomes effective with respect to such Swap Obligation or such other person as constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another person to qualify as an “eligible contract participant” at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

Ratio Debt” shall have the meaning assigned to such term in Section 6.01(x).

Real Property” shall mean, collectively, all right, title and interest (including any leasehold, mineral or other estate) in and to any and all parcels of or interests in real property owned, leased or operated by any person, whether by lease, license or other means, together with, in each case, all easements and appurtenances relating thereto, all improvements and appurtenant fixtures and equipment, all general intangibles and contract rights and other property and rights incidental to the ownership, lease or operation thereof.

Receivables Assets” shall mean (a) any accounts receivable owed to Holdings or any Subsidiary subject to a Receivables Facility and the proceeds thereof and (b) all collateral securing such accounts receivable, all contracts and contract rights, guarantees or other obligations in respect of such accounts receivable, all records with respect to such accounts receivable, any deposit accounts into which payments of such accounts receivable are made by counterparties and any other assets customarily transferred together with accounts receivable in connection with a non-recourse accounts receivable factoring arrangement and which are sold, conveyed, assigned or otherwise transferred or pledged in connection with a Receivables Facility.

Receivables Facility” shall mean any of one or more receivables financing facilities (and any guarantee of such financing facility), the obligations of which are non-recourse (except for customary representations, warranties, covenants, and indemnities made in connection with such facilities) to Holdings and the Subsidiaries pursuant to which Holdings or any Subsidiary sells, directly or indirectly, grants a security interest in or otherwise transfers its Receivables Assets to a Person that is not Holdings or a Subsidiary.

Refinancing Indebtedness” shall mean refinancings, renewals, or extensions of Indebtedness so long as: (a) the terms and conditions (other than pricing and premiums, so long as such pricing and premiums (including related fees) are on market terms consistent with financings of that nature) of such refinancings, renewals, or extensions (taken as a whole) are not materially more onerous to Holdings and its Subsidiaries taken as a whole than the terms and conditions of the Indebtedness being refinanced; (b) such refinancings, renewals, or extensions do not result in an increase in the principal amount of the Indebtedness so refinanced, renewed, or extended, plus the amount of any unused commitments under the refinanced Indebtedness and any accrued interest, fees, defeasance costs and premium (including call and tender premiums), if any, under the refinanced Indebtedness, and underwriting discounts, fees, commissions and expenses (including original issue discount, upfront fees and similar items) in connection with the refinancing of the applicable Indebtedness and the incurrence or issuance of the applicable Refinancing

 


 

Indebtedness; (c) such refinancings, renewals, or extensions (other than any refinancing, renewal or extension of any Purchase Money Obligations or Capital Lease Obligations) do not have a shorter Weighted Average Life to Maturity than the Weighted Average Life to Maturity of the Indebtedness so refinanced, renewed, or extended; (d) if the Indebtedness that is refinanced, renewed, or extended was subordinated in right of payment to the Obligations, then the terms and conditions of the refinancing, renewal, or extension must include subordination terms and conditions that are, taken as a whole, at least as favorable to the Lenders as those that were applicable to the refinanced, renewed, or extended Indebtedness; and (e) the refinancing, renewal or extension is nonrecourse to any Loan Party other than any Loan Parties which were obligated with respect to the Indebtedness that was refinanced, renewed, or extended.

Register” shall have the meaning assigned to such term in Section 10.04(b).

Regulation D” shall mean Regulation D of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

Regulation S-X” shall mean Regulation S-X promulgated under the Securities Act.

Regulation T” shall mean Regulation T of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

Regulation U” shall mean Regulation U of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

Regulation X” shall mean Regulation X of the Board as from time to time in effect and all official rulings and interpretations thereunder or thereof.

Reimbursement Obligations” shall mean the Borrower’s obligations under Section 2.02(e) to reimburse LC Disbursements.

Reinvestment Notice” shall mean a written notice executed by a Responsible Officer of the Borrower stating (a) that no Event of Default has occurred and is continuing at the time of delivery of such Reinvestment Notice and (b) that Holdings (through one of its Subsidiaries) intends and expects to use all or a specified portion of the Net Cash Proceeds subject to such notice to make Capital Expenditures or to acquire replacement assets or assets that will be useful in the business of Holdings or any Subsidiary thereof.

Rejection Notice” shall have the meaning assigned to such term in Section 2.09)(d).

Related Parties” shall mean, with respect to any person, such person’s Affiliates and the partners, directors, officers, employees, agents, controlling persons, advisors and sub-advisors of such person and of such person’s Affiliates.

Release” shall mean any spilling, leaking, seepage, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, disposing, depositing, dispersing, emanating or migrating of any Hazardous Material in, into, onto or through the Environment.

Relevant Governmental Body” shall mean the Board or the NYFRB, or a committee officially endorsed or convened by the Board or the NYFRB, or any successor thereto.

Representatives” shall have the meaning assigned to such term in Section 10.12.

 


 

Required Class Lenders” shall mean, on any date of determination, with respect to any Class, Lenders having Loans and unfunded Commitments in an aggregate principal amount of more than 50% of the aggregate principal amount of all Loans outstanding, and unfunded Commitments existing, with respect to such Class on such date; provided that the Loans, LC Exposure and unused Commitments held or deemed held by any Defaulting Lender shall be excluded for purposes of making a determination of Required Class Lenders.

Required Lenders” shall mean, on any date of determination, Lenders having Loans and unfunded Commitments in an aggregate principal amount of more than 50% of the aggregate principal amount of all Loans outstanding, and unfunded Commitments existing, on such date; provided that the Loans, LC Exposure and unused Commitments held or deemed held by any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders.

Required Revolving Lenders” shall mean Lenders having more than 50% of all Revolving Credit Commitments or, after the Revolving Credit Commitments have terminated, more than 50% of all Revolving Exposure; provided that the Revolving Credit Commitments held or deemed held by any Defaulting Lender shall be excluded for purposes of making a determination of Required Revolving Lenders.

Requirements of Law” shall mean, collectively, any and all requirements of any Governmental Authority including any and all laws, judgments, orders, decrees, ordinances, rules, regulations, statutes or case law.

Resolution Authority” means an with respect to any EEA Financial Institution, a EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

Response” shall mean (a) “response” as such term is defined in CERCLA, 42 U.S.C. § 9601(24), and (b) all other actions required by any Governmental Authority under Environmental Law to (i) clean up, remove, treat or abate any Hazardous Material in the Environment; (ii) prevent the Release or threat of Release, or minimize the further Release, of any Hazardous Material; or (iii) perform studies and investigations in connection with, or as a precondition to, or to determine the necessity of the activities described in, clause (i) or (ii) above.

Responsible Officer” of any person shall mean any executive officer or Financial Officer of such person and any other officer or similar official thereof, so long as and to the extent such officer or official has been duly authorized by the Board of Directors of such person to be responsible for the administration of the obligations of such person in respect of this Agreement.

Restricted Payments” shall have the meaning assigned to such term in Section 6.07(a).

Revolver Payment Priority Principles” means the requirement that (a) with respect to any Loans (other than Revolving Credit Loans), the provisions of Section 8.03 shall at all times be applicable to such Loans and (b) with respect to any other Indebtedness that is secured by Liens on any Collateral, such other Indebtedness shall at all times be subject to an Acceptable Intercreditor Agreement that provides the holders of Revolving Exposure with the right to receive proceeds of, and distributions and payments in respect of, the Collateral (including distributions from any source whatsoever in connection with any insolvency or liquidation proceeding) before the holders of such other Indebtedness receive any of such proceeds, distributions and payments, with such right in favor of the holders of Revolving Exposure being equivalent to the rights of such holders of Revolving Exposure to receive such proceeds, distributions and payments prior to the holders of the Term Loans in accordance with Section 8.03.

 


 

Revolver Payment Priority Trigger Event” shall have the meaning assigned to such term in Section 1.11.

“Revolving Administrative Agent” shall have the meaning assigned to such term in the preamble hereto and includes each other person appointed as the successor thereof pursuant to Article IX.

Revolving Agency Fee Letter” shall mean that certain Fee Letter, dated as of the Fifteenth Amendment Effective Date, by and between the Borrower and the Revolving Administrative Agent.

Revolving Credit Commitment” shall mean, with respect to any Lender, its obligation to make Revolving Credit Loans to the Borrower from time to time after the Closing Date pursuant to Section 2.01(c) in an aggregate principal amount at any time outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 2.01 under the caption “Revolving Credit Commitment”, as such commitment may be (a) reduced from time to time pursuant to Section 2.09 and (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to an Assignment and Assumption. The aggregate principal amount of the Revolving Credit Commitments on the Fifteenth Amendment Effective Date is $50,000,000.00.

Revolving Credit Loans” shall mean the loans made from time to time after the Closing Date pursuant to Section 2.01(c), including, unless the context shall otherwise require, any Incremental Revolving Credit Loans made pursuant to Section 2.17 after the Fifteenth Amendment Effective Date.

Revolving Exposure” shall mean, with respect to any Lender at any time, the aggregate principal amount at such time of all outstanding Revolving Credit Loans of such Lender, plus the aggregate amount of such Lender’s LC Exposure at such time.

Revolving Extension Request” shall have the meaning assigned to it in Section 2.16(b).

Revolving Extension Series” shall have the meaning assigned to it in Section 2.16(b).

Revolving Facility” shall mean, at any time, the aggregate amount of Revolving Credit Commitments at such time.

Revolving Lender” shall mean a Lender with a Revolving Credit Commitment or who holds a Revolving Credit Loan.

Revolving SOFR Loans” shall mean any Revolving Credit Loan bearing interest at a rate based on Term SOFR, other than pursuant to clause (c) of the definition of “Alternate Base Rate”.

Rollover Investors” shall mean each of the Closing Date Investors specified in clauses (b) through (d) of the definition thereof.

Safe Flight” means Safe Flight Instrument Corporation, a New York corporation.

Safe Flight Escrow Account” shall have the meaning assigned to the term “Escrow Account” in the Safe Flight Escrow Agreement.

Safe Flight Escrow Agreement” means that certain Escrow Agreement, dated as of December 28, 2020, by and among Safe Flight, the Safe Flight Seller and the Escrow Agent (as defined in the Safe Flight Purchase Agreement), as amended, supplemented, modified or restated from time to time.

 


 

Safe Flight PPP Indebtedness” means Indebtedness of Safe Flight incurred under, or pursuant to, the Paycheck Protection Program.

Safe Flight Purchase Agreement” means that certain Membership Interest Purchase Agreement, dated as of December 18, 2020, by and among the Borrower, SFIC Holdings, Inc. and Safe Flight, as amended, supplemented, modified or restated from time to time.

Sale and Leaseback Transaction” shall mean an arrangement, directly or indirectly, with any person relating to property, real or personal or mixed, used or useful in the business of Holdings or any of its Subsidiaries, whether now owned or acquired after the Closing Date, whereby Holdings or any Subsidiary thereof sells or transfers such property to a person and thereafter rents or leases such property or other property which it intends to use for substantially the same purpose or purposes as the property being sold or transferred.

Sanctions” shall mean economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by OFAC or the U.S. Department of State, or (b) the European Union or Her Majesty’s Treasury of the United Kingdom.

Sanctioned Country” shall mean, at any time, a country, region or territory which is the subject or target of any comprehensive, country-based Sanctions.

Sanctioned Person” shall mean, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC, the U.S. Department of State, the European Union or Her Majesty’s Treasury of the United Kingdom, (b) any other Person located, organized or ordinarily resident in a Sanctioned Country or (c) any Person 50% or more of the Equity Interests of which are owned by one or more Persons referenced in clause (a) or (b).

Schroth Acquisition” means the acquisition by the Borrower, directly or indirectly, of 100% of the Equity Interests of each of (i) SSP International GmbH, a limited liability company (Gesellschaft mit beschränkter Haftung) under the laws of Germany, and (ii) SSP Management GmbH, a limited liability company (Gesellschaft mit beschränkter Haftung) under the laws of Germany, in each case, pursuant to the Schroth Acquisition Agreement and the transactions related thereto pursuant to the Schroth Acquisition Agreement.

Schroth Acquisition Agreement” means that certain Sale and Purchase Agreement, dated as of May 20, 2022, by and among Schroth Buyer, the Sellers (as defined therein) and the Borrower, as amended, supplemented, modified or restated from time to time; provided that no provision thereof shall be amended or waived, nor shall any consents thereunder be given by the Borrower or any of its Affiliates, in each case in a manner materially adverse to Blackstone (in its capacity as such) without the consent of Blackstone (such consent not to be unreasonably withheld, delayed or conditioned; provided, further, that Blackstone shall be deemed to have consented to such waiver, amendment or consent unless it shall object thereto within 5 business days after receipt of written notice of such waiver, amendment or consent); provided further that (a) any amendment, waiver or consent which results in a reduction in the purchase price for the Schroth Acquisition of less than 15% of the purchase price shall not be deemed to be materially adverse to Blackstone to the extent it is applied to reduce, first, the amount of cash on hand of the Borrower and its Subsidiaries being used to finance the Schroth Acquisition (if any) to $0, and second, the amount of any Incremental Term Loan Commitments incurred to consummate the Schroth Acquisition and (b) any amendment, waiver or consent which results in an increase in purchase price for the Schroth Acquisition shall not be deemed to be materially adverse to Blackstone so long as such increase is funded with an

 


 

increase in such cash contribution by the Borrower and its Subsidiaries, any equity contribution or borrowings of Revolving Credit Loans.

Schroth Buyer” shall mean Stellar Acquisition GmbH, a limited liability company (Gesellschaft mit beschränkter Haftung) under the laws of Germany and registered with the commercial register (Handelsregister) at the local court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 126723.

Schroth German Subsidiaries” means Schroth Buyer and SCHROTH Safety Products GmbH, a limited liability company (Gesellschaft mit beschränkter Haftung) under the laws of Germany and registered with the commercial register (Handelsregister) at the local court (Amtsgericht) of Arnsberg, Germany under registration number 888.

Secured Cash Management Agreement” shall mean any Cash Management Agreement that is entered into by and between Holdings or any Subsidiary and any Cash Management Bank, which is specified in writing by the Borrower to the Administrative Agent as constituting a “Secured Cash Management Agreement” hereunder and with respect to which the requirements of the proviso set forth in the definition of “Cash Management Agreement” have been satisfied.

Secured Hedging Agreement” shall mean any Hedging Agreement that is entered into by and between Holdings or any Subsidiary and any Hedge Bank, which is specified in writing by the Borrower to the Administrative Agent as constituting a “Secured Hedging Agreement” hereunder and with respect to which the requirements of the proviso set forth in the definition of “Hedging Agreement” have been satisfied. For purposes of the preceding sentence, the Borrower may deliver one notice designating all Hedging Agreements entered into pursuant to a specified Master Agreement as “Secured Hedging Agreements”.

Secured Parties” shall mean, collectively, the Administrative Agent, the Revolving Administrative Agent, the Collateral Agent, each Hedge Bank in respect of Secured Hedging Agreements, each Cash Management Bank in respect of Secured Cash Management Agreements and the Lenders.

Securities Account” shall have the meaning assigned to such term under the UCC.

Securities Act” shall mean the Securities Act of 1933.

Security Agreement” shall mean that certain Security Agreement among the Loan Parties and Collateral Agent for the benefit of the Secured Parties dated as of the Closing Date.

Security Agreement Collateral” shall mean all property pledged or granted as collateral (a) pursuant to the Security Agreement on the Closing Date or (b) thereafter pursuant to the Security Agreement, the German Security Documents or Section 5.10.

Security Documents” shall mean the Security Agreement, the German Security Documents, the Mortgages and each other security document or pledge agreement delivered in accordance with applicable law to grant a valid, perfected security interest in any property as collateral for the Obligations, and all UCC financing statements or instruments of perfection required by this Agreement, the Security Agreement, any German Security Document, any Mortgage or any other such security document or pledge agreement to be filed with respect to the security interests in property and fixtures created pursuant to the Security Agreement, any German Security Document or any Mortgage and any other document or instrument utilized to pledge or grant or purport to pledge or grant a security interest or lien on any property as collateral for the Obligations.

 


 

Seller” shall mean Loar Group Acquisition LLC, a Delaware limited liability company.

Share Capital Impairment” shall have the meaning assigned to such term in Section 7.12(b)(i).

Sixteenth Amendment” shall mean that certain Sixteenth Amendment to Credit Agreement, dated as of the Sixteenth Amendment Effective Date, by and among the Borrower, Holdings, the Guarantors party thereto, the Lenders party thereto, the Administrative Agent and the Collateral Agent.

Sixteenth Amendment Effective Date” shall mean August 26, 2024.

Sixteenth Amendment Fee Letter” shall mean that certain Fee Letter, dated as of the Sixteenth Amendment Effective Date, by and among the Borrower and Blackstone.

Sixteenth Amendment Incremental Term Loan” shall have the meaning assigned to such term in the Sixteenth Amendment.

Sixteenth Amendment Incremental Term Loan Commitment” shall have the meaning assigned to such term in the Sixteenth Amendment.

SOFR” shall mean a rate equal to the secured overnight financing rate as administered by the SOFR Administrator.

SOFR Administrator” shall mean the NYFRB (or a successor administrator of the secured overnight financing rate).

SOFR Administrator’s Website” shall mean the NYFRB’s website, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

Specified Acquisition Agreement Representations” shall mean the representations and warranties made with respect to the Loar Target and its Subsidiaries in the Loar Acquisition Agreement as are material to the interests of the Lenders, but only to the extent that the Borrower or Holdings has the right pursuant to the Loar Acquisition Agreement to terminate its or their obligations to consummate the Loar Acquisition (or the right pursuant to the Loar Acquisition Agreement not to consummate the Loar Acquisition) as a result of a breach of such representations and warranties.

Specified Credit Agreement Representations” shall mean the representations and warranties made in (a) Section 3.01(a) solely with respect to the Loan Parties, (b) Section 3.02 solely with respect to the Loan Parties and the Loan Documents entered into by the Loan Parties, (c) Section 3.03(b) solely with respect to the Loan Parties and with respect to the execution, delivery and performance of the Loan Documents, the incurrence of the Loans hereunder by the Borrower, the Guarantees of the Guarantors under Article VII hereof and the granting of the security interests in the Collateral pursuant to the Security Agreement, (d) Section 3.09, (e) Section 3.10, (f) Section 3.15, (g) Section 3.19 solely with respect to Collateral required to be perfected on the Closing Date (subject to Section 5.15) and (h) Section 3.20 and Section 3.21, in each case, solely with respect to the use of the proceeds of the Loans on the Closing Date not violating FCPA, OFAC and the USA PATRIOT Act.

Specified Earn-outs” shall mean the Maverick Earn-Out and the GE Earn-out, collectively.

 


 

Specified Earn-Out Account” shall mean a segregated account of the Borrower, established on or prior to the Closing Date, into which proceeds of the Initial Term Loans in an amount not less than the Specified Earn-Out Amount will be deposited on the Closing Date.

Specified Earn-Out Amount” shall mean an amount equal to the lesser of (a) $4,000,000 and (b) the amount of reserves set aside on the books of the relevant Loan Party in accordance with GAAP to fund obligations in respect of the Maverick Earn-Out.

Specified Event of Default” shall mean an Event of Default arising under Section 8.01(a), Section 8.01(b), Section 8.01(g) or Section 8.01(h).

Specified Schroth Representations” shall mean the representations and warranties made in (a) Section 3.01(a) solely with respect to the Loan Parties, (b) Section 3.02 solely with respect to the Loan Parties and the Loan Documents entered into by the Loan Parties, (c) Section 3.03(b) solely with respect to the Loan Parties and with respect to the execution, delivery and performance of the Loan Documents, the incurrence of the applicable Incremental Terms Loans hereunder by the Borrower, the Guarantees of the Guarantors under Article VII hereof and the granting of the security interests in the Collateral pursuant to the Security Agreement, (d) Section 3.09, (e) Section 3.10, (f) Section 3.15, (g) Section 3.19 solely with respect to Collateral required to be perfected on the date of funding of the applicable Incremental Term Loans (subject to Section 5.15) and (h) Section 3.20 and Section 3.21, in each case, solely with respect to the use of the proceeds of the applicable Incremental Term Loans on the date of funding thereof not violating FCPA, OFAC and the USA PATRIOT Act.

Specified Transaction” shall mean, with respect to any period, any (a) Permitted Acquisition, Investment, sale, transfer or other disposition of assets or property other than in the ordinary course, (b) any merger or consolidation, or any similar transaction, (c) any incurrence, issuance or repayment of Indebtedness, (d) any Restricted Payment or (e) any other event, in each case with respect to which the terms of the Loan Documents permitting such transaction require “Pro Forma Compliance” with a test or covenant hereunder or requires such test or covenant to be calculated on a “Pro Forma Basis” or to be given “Pro Forma Effect.”

Sponsor” shall mean Abrams Capital Management, L.P., a Delaware limited partnership.

Springing Covenant” shall have the meaning assigned to such term in Section 6.09(c)(i).

Springing Covenant Cross Default” shall have the meaning assigned to such term in Section 8.01(d).

Springing Covenant Event of Default” shall have the meaning assigned to such term in Section 8.01(d).

Standby Letter of Credit” shall mean any standby letter of credit or similar instrument.

Subsidiary” shall mean, with respect to any person (the “parent”) at any date, (a) any other corporation, limited liability company, association or other business entity of which securities or other ownership interests representing more than 50% of the voting power of all Equity Interests entitled (without regard to the occurrence of any contingency) to vote in the election of the Board of Directors thereof are, as of such date, owned, controlled or held by the parent and/or one or more subsidiaries of the parent and (b) any partnership (i) the sole general partner or the managing general partner of which is the parent and/or one or more subsidiaries of the parent or (ii) the only general partners of which are the parent and/or one or

 


 

more subsidiaries of the parent. Unless the context requires otherwise, “Subsidiary” refers to a Subsidiary of Holdings.

Supporting Obligation” shall mean a supporting obligation (as that term is defined in the UCC).

Swap Obligations” shall mean with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.

Target” shall have the meaning set forth in the definition of “Acquisition”.

Tax Return” shall mean all returns, statements, filings, reports, attachments and other documents or certifications required to be filed in respect of Taxes.

Taxes” shall mean all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments or other similar fees or charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

Term Commitment” shall mean, with respect to any Lender, its Initial Term Loan Commitment, Delayed Draw Term Loan Commitment, Sixteenth Amendment Incremental Term Loan Commitment or Incremental Term Loan Commitment, as applicable.

Term Lender” shall mean a Lender with a Term Commitment or who holds a Term Loan.

Term Loan” shall mean the Initial Term Loans (including, for the avoidance of doubt, the Sixteenth Amendment Incremental Term Loans), each Delayed Draw Term Loan, each Incremental Term Loan and each Extended Term Loan.

Term Loan Extension Request” shall have the meaning assigned to it in Section 2.16(a).

Term Loan Extension Series” shall have the meaning assigned to it in Section 2.16(a).

Termination Value” shall mean, in respect of any Hedging Obligation, after taking into account the effect of any legally enforceable netting agreement related thereto (a) for any date on or after the date such Hedging Agreement has been closed out and the termination value determined in accordance therewith, such termination value, and (b) for any date prior to the date referenced in clause (a) above, the amount determined as the mark-to-market value for such Hedging Obligation, as determined based upon one or more mid-market or other readily available quotations provided by any nationally recognized dealer in Hedging Agreements).

Term SOFR” shall mean:

(1) for any calculation with respect to a Term SOFR Loan, the Term SOFR Reference Rate for a tenor comparable to the applicable Interest Period on the day (such day, the “Periodic Term SOFR Determination Day”) that is two (2) U.S. Government Securities Business Days prior to the first day of such Interest Period, as such rate is published by the Term SOFR Administrator; provided however that if as of 5:00 p.m. (New York City time) on any Periodic Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term

 


 

SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Periodic Term SOFR Determination Day, and

(2) for any calculation with respect to an ABR Loan on any day, the Term SOFR Reference Rate for a tenor of one month on the day (such day, the “Base Rate Term SOFR Determination Day”) that is two (2) U.S. Government Securities Business Days prior to such day, as such rate is published by the Term SOFR Administrator; provided however that if as of 5:00 p.m. (New York City time) on any Base Rate Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Base Rate Term SOFR Determination Day;

provided that, in no event shall Term SOFR be less than the Floor.

Term SOFR Administrator” shall mean CME Group Benchmark Administration Limited as administrator of the Term SOFR Reference Rate (or a successor administrator of the Term SOFR Reference Rate selected by the Administrative Agent in its reasonable discretion and in consultation with the Borrower).

Term SOFR Loan” shall mean any Loan bearing interest at a rate based on Term SOFR, other than pursuant to clause (c) of the definition of “Alternate Base Rate”.

Term SOFR Reference Rate” shall mean the forward-looking term rate based on SOFR.

Test Period” shall mean, at any time, the four consecutive fiscal quarters of Holdings then most recently ended (in each case taken as one accounting period) for which financial statements have been delivered (or were required to be delivered) pursuant to Section 5.01(a) or (b).

Third Amendment” shall mean that certain Third Amendment to Credit Agreement dated as of the Third Amendment Effective Date by and among the Borrower, Holdings, the Guarantors party thereto and the Lenders party thereto.

Third Amendment Effective Date” shall mean December 21, 2018.

Title Policy” shall mean a policy of title insurance (or marked up title insurance commitment having the effect of a policy of title insurance) insuring the Lien of such Mortgage described therein.

Total Net Leverage Ratio” shall mean, at any date of determination, the ratio of (a) Consolidated Indebtedness, net of unrestricted cash and Cash Equivalents of Holdings and its Subsidiaries, in each case, at such time, to (b) Consolidated EBITDA for the Test Period then most recently ended.

 


 

Trading with the Enemy Act” shall mean the Trading with the Enemy Act (50 U.S.C. § 1 et seq., as amended).

Transactions” shall mean, collectively, the transactions to occur on or immediately prior to or after the Closing Date pursuant to the Loan Documents, including (a) the Loar Acquisition, (b) the execution, delivery and performance of the Loan Documents and the borrowings of the Initial Term Loans hereunder, (c) the refinancing of certain existing Indebtedness of Holdings and its Subsidiaries, and (d) the payment of the fees and expenses incurred in connection with the consummation of the foregoing.

Transferred Guarantor” shall have the meaning assigned to such term in Section 7.09.

Type,” when used in reference to any Loans refers to whether the rate of interest on such Loans is determined by reference to Term SOFR or the Alternate Base Rate.

UCC” shall mean the Uniform Commercial Code as in effect from time to time (except as otherwise specified) in any applicable state or jurisdiction.

UK Financial Institution” means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

UK Resolution Authority” means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

Unadjusted Benchmark Replacement” shall mean the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

United States” or “U.S.” shall mean the United States of America.

Unreimbursed Amount” shall have the meaning assigned to such term in Section 2.02(d).

Up-stream and/or Cross-stream Guarantee” shall have the meaning assigned to such term in Section 7.12(a).

U.S. Government Securities Business Days” means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

U.S. Tax Compliance Certificate” shall have the meaning assigned to such term in Section 2.14(e)(ii)(B)(III).

USA PATRIOT Act” shall mean the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act.

 


 

Voting Stock” shall mean, with respect to any person, any class or classes of Equity Interests pursuant to which the holders thereof have the general voting power under ordinary circumstances to elect members of the Board of Directors (or analogous governing body) of such person.

Weighted Average Life to Maturity” shall mean, when applied to any Indebtedness at any date, the number of years obtained by dividing: (i) the sum of the products obtained by multiplying (a) the amount of each then remaining installment, sinking fund, serial maturity or other required scheduled payments of principal, including payment at final maturity, in respect thereof, by (b) the number of years (calculated to the nearest one‑twelfth) that will elapse between such date and the making of such payment by (ii) the then outstanding principal amount of such Indebtedness; provided that for purposes of determining the Weighted Average Life to Maturity of any Indebtedness, the effects of any amortization or prepayments made on such Indebtedness prior to the date of such determination will be disregarded.

Wholly Owned Domestic Subsidiary” shall mean a Domestic Subsidiary that is a Wholly Owned Subsidiary.

Wholly Owned Subsidiary” shall mean, as to any person, (a) any corporation 100% of whose capital stock (other than (x) directors’ qualifying shares and (y) Equity Interests of Foreign Subsidiaries issued to foreign nationals in accordance with Requirements of Law) is at the time owned by such person and/or one or more Wholly Owned Subsidiaries of such person and (b) any partnership, association, joint venture, limited liability company or other entity in which such person and/or one or more Wholly Owned Subsidiaries of such person have a 100% equity interest at such time.

Working Capital” shall mean, at any date, the excess of (i) the sum of all amounts (other than cash and Cash Equivalents) that would, in conformity with GAAP, be set forth opposite the caption “total current assets” (or any like caption) on a consolidated balance sheet of Holdings and its Subsidiaries at such date excluding the current portion of current and deferred income taxes over (ii) the sum of all amounts that would, in conformity with GAAP, be set forth opposite the caption “total current liabilities” (or any like caption) on a consolidated balance sheet of Holdings and its Subsidiaries on such date, but excluding, without duplication, (a) the current portion of any Indebtedness of Holdings and its Subsidiaries outstanding on such date on the consolidated balance sheet of Holdings, determined on a consolidated basis in accordance with GAAP (but excluding the effects of any discounting of Indebtedness resulting from the application of purchase accounting in connection with the Transactions or any Permitted Acquisition or other Permitted Investment) consisting only of (x) Indebtedness for borrowed money, (y) the principal component of all Capital Lease Obligations and (z) debt obligations evidenced by bonds, promissory notes, debentures or debt securities; (b) all Indebtedness consisting of Loans, reimbursement obligations under any letters of credit and Capital Lease Obligations to the extent otherwise included therein; (c) the current portion of interest; (d) the current portion of current and deferred income taxes; (e) any liabilities that are not Indebtedness and will not be settled in cash or Cash Equivalents during the next succeeding twelve-month period after such date; (f) the effects from applying purchase accounting; (g) any accrued professional liability risks; (h) restricted marketable securities and (i) the current portion of deferred revenue.

Write-Down and Conversion Powers” means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that Person or any other Person, to provide that any such contract or instrument is to have effect as if a right had been

 


 

exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

Xpedition” shall have the meaning assigned to such term in the first recital hereto.

SECTION 1.02
Classification of Loans. For purposes of this Agreement, Loans may be classified and referred to by Type (e.g., a “Term SOFR Loan”).
SECTION 1.03
Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.” The word “will” shall be construed to have the same meaning and effect as the word “shall.” Unless the context requires otherwise (a) any definition of or reference to any Loan Document, 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 modifications set forth herein), (b) any reference herein to any person shall be construed to include such person’s successors and permitted 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 Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e) any reference to any law or regulation herein shall refer to such law or regulation as amended, modified or supplemented from time to time, (f) 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 and (g) “on,” when used with respect to the Mortgaged Property or any property adjacent to the Mortgaged Property, means “on, in, under, above or about.” Except as otherwise expressly provided herein, in the event that performance of any obligation is due on a day that is not a Business Day, then the time for such performance shall be extended to the next Business Day.
SECTION 1.04
Accounting Terms; GAAP. Except as otherwise expressly provided herein, all financial statements to be delivered pursuant to this Agreement shall be prepared in accordance with GAAP as in effect from time to time and all terms of an accounting or financial nature shall be construed and interpreted in accordance with GAAP; provided, however, that notwithstanding the foregoing, if at any time any change occurs after the Closing Date in GAAP or in the application thereof on the computation of any financial ratio or financial requirement, or compliance with any covenant, set forth in any Loan Document, and Holdings shall so request (regardless of whether any such request is given before or after such change), the Required Lenders, Holdings and the Borrower will negotiate in good faith to amend such ratio, requirement or covenant to preserve the original intent thereof in light of such change in GAAP; provided, further, that until so amended, such ratio, requirement or covenant shall continue to be computed in accordance with GAAP prior to such change therein. Notwithstanding the foregoing, for purposes of determining compliance with any covenant (including the computation of any financial covenant) contained herein, Indebtedness of Holdings and its Subsidiaries shall be deemed to be carried at 100% of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470-20 on financial liabilities shall be disregarded. It is hereby understood and agreed by the Loan Parties, Agents and the Lenders that any forgiveness of any loan incurred pursuant to the Paycheck Protection Program shall not result in any increase to Consolidated Net Income or Consolidated EBITDA under the Loan Documents. Notwithstanding anything in this Agreement to the contrary, unless the Borrower has notified the Administrative Agent in writing that this sentence shall not apply with respect to an applicable Test Period on or prior to the delivery of financial statements for such Test Period pursuant to Section 5.01, the determination of whether a lease is a Capital Lease or a Non-Finance Lease, shall, in each case, be

 


 

determined without giving effect to ASC 842 (Leases), except that financial statements delivered pursuant to Section 5.01 may be prepared in accordance with GAAP (including giving effect to ASC 842 (Leases)) as in effect at the time of such delivery).
SECTION 1.05
Time Reference. Unless otherwise specified, all references herein to times of day shall be references to Eastern time (daylight or standard, as applicable).
SECTION 1.06
Limited Condition Transactions. Notwithstanding anything herein to the contrary, for purposes of determining compliance with (i) any provision of this Agreement (other than actual compliance with the financial covenants set forth in Section 6.09(a) and (c)) which requires the calculation of any financial ratio, test or basket (including the Total Net Leverage Ratio, the First Lien Net Leverage Ratio and baskets with respect to the incurrence of any Indebtedness (including any Incremental Facilities), Liens or the Cumulative Amount or the making of any acquisitions or other Investments, Restricted Payments, Asset Sales or fundamental changes) or (ii) any representations and warranties or the occurrence of any Default or Event of Default, in each case, in connection with any Limited Condition Transaction, at the option of the Borrower (the Borrower’s election to exercise such option, a “Limited Conditionality Election”), the date of determination of whether any such action is permitted hereunder shall be the Limited Conditionality Test Date, and if, after giving pro forma effect to the Limited Condition Transaction and the other transactions to be entered into in connection therewith as if they had occurred at the beginning of the most recent test period ending prior to the Limited Conditionality Test Date, the Borrower could have taken such action on the relevant Limited Conditionality Test Date in compliance with such ratio, test, basket, representation or warranty, such ratio, test, basket, representation or warranty shall be deemed to have been complied with. For the avoidance of doubt, (i) if, following the Limited Conditionality Test Date, any of such ratios, tests or amounts are not satisfied as a result of fluctuations in such ratio, test or amount (including due to fluctuations in Consolidated EBITDA of the Borrower or the Person subject to such Limited Condition Transaction), at or prior to the consummation of the relevant transaction or action, such ratios, tests and amounts will be deemed to not have been unsatisfied as a result of such fluctuations solely for purposes of determining whether the relevant transaction or action is permitted to be consummated or taken; provided that if the Borrower makes such election, then in connection with any calculation of any ratio, test or basket availability with respect to any transaction following the relevant Limited Conditionality Test Date and prior to the earlier of the date on which such Limited Condition Transaction is consummated or the date that the definitive agreement or irrevocable notice for such Limited Condition Transaction is terminated or expires without consummation of such Limited Condition Transaction, for purposes of determining whether such subsequent transaction is permitted under the Loan Documents, any such ratio, test or basket shall be required to be satisfied on a Pro Forma Basis assuming such Limited Condition Transaction and other transactions or actions in connection therewith (including any incurrence of Indebtedness and the use of proceeds thereof) have been consummated and (ii) such financial ratios, tests or baskets shall not be tested at the time of consummation of such Limited Condition Transaction, unless the Borrower elects in its sole discretion to test such ratio, test or basket on the date such Limited Condition Transaction is consummated instead of the Limited Conditionality Test Date.
SECTION 1.07
Resolution of Drafting Ambiguities. Each Loan Party acknowledges and agrees that it was represented by counsel in connection with the execution and delivery of the Loan Documents to which it is a party, that it and its counsel reviewed and participated in the preparation and negotiation hereof and thereof and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in the interpretation hereof or thereof.
SECTION 1.08
German Terms.

 


 

In this Agreement, where a translation of a word or phrase into the German language appears in the text of this Agreement, such translation of a word or phrase shall prevail and, furthermore, where it relates to a German entity or other applicable term, a reference to:

(a)
a compulsory manager, receiver, administrator includes an Insolvenzverwalter, a Vorläufiger Insolvenzverwalter, a Zwangsverwalter or a custodian or creditor's trustee (Sachwalter);
(b)
secretary or director includes any statutory legal representative(s) (organschaftlicher Vertreter) of a person pursuant to the laws of its jurisdiction of incorporation, including but not limited to, in relation to a person incorporated or established in Germany, a managing director (Geschäftsführer) or member of the board of directors (Vorstand);
(c)
a disposal includes a Verfügung;
(d)
filing for insolvency or to file for insolvency includes the meaning Antrag auf Eröffnung des Insolvenzverfahrens; and
(e)
a winding up, administration or dissolution (and each of those terms) includes insolvency proceedings (Insolvenzverfahren).
SECTION 1.09
Calculations.
(a)
Notwithstanding anything in this Agreement or any Loan Document to the contrary, in the event any Lien, Indebtedness (including any Incremental Loans, Incremental Commitments or Incremental Equivalent Debt) (but excluding Indebtedness incurred in reliance on clauses (E) or (F) of the Available Incremental Amount), Disqualified Capital Stock, Asset Sale, Investment, Restricted Payment, or other transaction, action, judgment or amount incurred under any provision in this Agreement or any other Loan Document (or any of the foregoing in concurrent transactions, a single transaction or a series of related transactions) meets the criteria of one or more than one of the categories of Baskets under this Agreement (including within any defined terms), including any Fixed Basket or Non-Fixed Basket, as applicable, the Borrower shall be permitted, in its sole discretion, to divide and classify and to later, at any time and from time to time, re-divide and re-classify (including to re-classify utilization of any Fixed Basket as being incurred under any Non-Fixed Basket or other Fixed Basket or utilization of any Non-Fixed Basket as being incurred under any Fixed Basket or other Non-Fixed Basket), on one or more occasions (based on circumstances existing on the date of any such re-division and re-classification), any such Lien, Indebtedness, Disqualified Capital Stock, Asset Sale, Investment, Restricted Payment, or other transaction, action, judgment or amount, in whole or in part, among one or more than one applicable Baskets under this Agreement. For the avoidance of doubt, the amount of any Lien, Indebtedness, Disqualified Capital Stock, Asset Sale, Investment, Restricted Payment or other transaction, action, judgment or amount that shall be allocated to each such Basket shall be determined by the Borrower at the time of such division, classification, re-division or re-classification, as applicable. If any Lien, Indebtedness (including any Incremental Loans, Incremental Commitments or Incremental Equivalent Debt) (but excluding Indebtedness incurred in reliance on clauses (E) or (F) of the Available Incremental Amount), Disqualified Capital Stock, Asset Sale, Investment, Restricted Payment, or other transaction, action, judgment or amount incurred under any provision in this Agreement or any other Loan Document (or any portion of the foregoing) previously divided and classified (or re-divided and re-classified) as set forth above under any Fixed Basket, could subsequently be re-divided and re-classified under a Non-Fixed Basket, such re-division and re-classification shall be deemed to occur automatically, in each case, unless otherwise elected by the Borrower. For all purposes hereunder, (x) “Fixed Basket” shall mean any Basket that is subject to a fixed-dollar limit (including Baskets based on a percentage of Consolidated EBITDA or Consolidated Total Assets) and (y) “Non-Fixed Basket” shall mean any Basket that is subject to compliance with a

 


 

financial ratio or test (including the Total Net Leverage Ratio and the First Lien Net Leverage Ratio) (any such ratio or test, a “Financial Incurrence Test”).
(b)
Notwithstanding anything in this Agreement or any Loan Document to the contrary, in calculating any Non-Fixed Basket, (a) any amounts incurred under the Revolving Facility (or any other revolving facility) funded at or substantially concurrently at the time of such calculation and (b) any amounts incurred, or transactions entered into or consummated, in reliance on a Fixed Basket in a concurrent transaction, a single transaction or a series of related transactions with the amount incurred, or transaction entered into or consummated, under an applicable Non-Fixed Basket, in each case of the foregoing clauses (a) and (b), shall be disregarded in the calculation of such Non-Fixed Basket; provided that full pro forma effect shall be given to all applicable and related transactions (including the use of proceeds of all applicable Indebtedness incurred and any repayments, repurchases and redemptions of Indebtedness) and all other adjustments as to which pro forma effect may be given on a Pro Forma Basis.
SECTION 1.10
Agents. Each Lender, Agent, Issuing Bank and any other party hereto agree that (i) the Administrative Agent shall be the administrative agent with respect to the Term Loans and the Term Lenders and shall exercise such duties, rights and responsibilities set forth herein applicable to the Term Loans and the Term Lender, unless this Agreement or any other Loan Document provides that the Administrative Agent is exercising duties, rights and responsibilities with respect to the Revolving Credit Commitments and Revolving Credit Loans and (ii) the Revolving Administrative Agent shall be the administrative agent with respect to Revolving Credit Loans, Revolving Credit Commitments, Revolving Lenders, Letters of Credit and Issuing Banks and shall exercise such duties, rights and responsibilities set forth herein applicable to the Revolving Credit Loans, Revolving Credit Commitments, Revolving Lenders, Letters of Credit and Issuing Banks. References to “applicable” Administrative Agent shall mean, when referring to a Term Loan or Term Lender, the Administrative Agent and when referring to the Revolving Credit Loans, Revolving Credit Commitments, Revolving Lenders, Letters of Credit and Issuing Banks, the Revolving Administrative Agent.
SECTION 1.11
Revolver Payment Priority Principles.
(a)
Notwithstanding anything to the contrary herein or in any other Loan Document, without the prior written consent of the Required Revolving Lenders (and, solely with respect to Sections 1.11(a)(i) and (c), the Required Term Lenders): (i) the Revolving Facility may not at any time exceed $100,000,000 (even if the other provisions of this Agreement would permit a larger Revolving Facility at such time and, for the avoidance of doubt, subject to Section 2.17(a)), (ii) no Loan Party may incur any Indebtedness that is secured by Liens on any Collateral unless, with respect to such Indebtedness, the Revolver Payment Priority Principles are satisfied, (iii) no party hereto may enter into any Incremental Amendment, any Extension Amendment or any other amendment or instrument modifying this Agreement or any other Loan Document that is inconsistent with the Revolver Payment Priority Principles, (iv) if, prior to any Exercise of Remedies, a Revolver Payment Priority Trigger Event has occurred and is continuing and any Revolving Exposure is then outstanding, Holdings, any direct or indirect parent company of Holdings and any direct or indirect Subsidiary of any such parent company may not, directly or indirectly, voluntarily prepay any Term Loans or purchase or otherwise acquire by any means any Term Loans; provided, however, that this clause (iv) shall not limit any such prepayment, purchase or acquisition with the proceeds of Refinancing Indebtedness (or with such Refinancing Indebtedness) or Indebtedness incurred pursuant to any Extension Amendment, Incremental Amendment or other similar amendment the proceeds of which are (or the applicable Indebtedness is) used to prepay, purchase or acquire such Term Loans, (v) the earliest Maturity Date applicable to any Term Loan shall be no earlier than ninety-one (91) days after the Revolving Maturity Date (as in effect on the Fifteenth Amendment Effective Date) and (vi) except as otherwise set forth herein on the Fifteenth Amendment Effective Date, the schedule of amortization payments applicable to any Term Loan shall not be amended in any way to increase any amortization payment applicable to such Term Loan.

 


 

(b)
Each Lender acknowledges and agrees that the Obligations in respect of the Revolving Facility are entitled to first priority distributions of proceeds of Collateral subject to and in accordance with this Section 1.11 and Section 8.03 (including distributions from any source whatsoever in connection with any insolvency or liquidation proceeding) prior to any such distributions being applied to the obligations of any other outstanding Loans. Notwithstanding anything in this Agreement or any other Loan Document to the contrary, the Term Lenders shall be entitled to receive and retain reorganization securities of Holdings (or any direct or indirect Parent Company), the Borrower or its Subsidiaries in any insolvency or liquidation proceeding; provided that any payments received pursuant to any such debt reorganization securities shall be subject to the payment priorities set forth herein.
(c)
If, prior to any Exercise of Remedies, a Revolver Payment Priority Trigger Event has occurred and is continuing and any Revolving Exposure is then outstanding, the Borrower shall apply any amount that would otherwise be required to prepay Term Loans pursuant to Section 2.09(b) to first repay in full the Obligations in respect of the Revolving Facility (other than inchoate or contingent or reimbursable obligations for which no claim has been asserted).
(d)
If any Lender collects or receives any amounts received on account of the Obligations to which it is not entitled as a result of the application of this Section 1.11, such Lender shall hold the same in trust for the Secured Parties and shall forthwith deliver the same to the Revolving Administrative Agent, for the account of the applicable Secured Parties, to be applied in accordance with this Section 1.11.
(e)
If any Revolving Exposure is then outstanding, neither the Administrative Agent nor any Term Lender may, directly or indirectly, provide, offer to provide, support or participate in any debtor in possession financing that the Revolving Credit Lenders have not provided or otherwise participated in under Section 364 of the Bankruptcy Code secured by a Lien senior to or pari passu with the Liens securing the Obligations in respect of the Revolving Facility, in each case unless either (i) the proceeds of such debtor in possession financing are not used to refinance, repay or “roll-up” any Term Loans unless all Obligations in respect of any such Revolving Exposure are repaid or refinanced in the same priority of payment as set forth herein or (ii) the initial borrowings from such financing are used to repay in full the Obligations in respect of the Revolving Facility (other than inchoate or contingent or reimbursable obligations for which no claim has been asserted).
(f)
Notwithstanding anything in this Agreement or the Security Agreement to the contrary, if any Revolving Exposure is then outstanding, in connection with any sale, disposition or enforcement action with respect to the Collateral (whether in or outside of any insolvency or liquidation proceeding), neither the Administrative Agent nor any Term Lender may “credit bid” (pursuant to Section 363(k), Section 1129(b)(2)(a)(ii) or otherwise of the Bankruptcy Code or similar statutory provision) and offset against the purchase price for all or any portion of the Collateral unless the Obligations in respect of the Revolving Facility are paid in full in cash (other than inchoate or contingent or reimbursable obligations for which no claim has been asserted) in connection with the initial closing of such sale, disposition or enforcement action.
(g)
Notwithstanding anything in this Agreement to the contrary, neither the Administrative Agent nor any Term Lender shall propose, vote in favor of, or otherwise support any plan of reorganization, arrangement, adjustment or composition in respect of Holdings, the Borrower or any other Loan Party in contravention of the payment priorities set forth in Section 8.03 and this Section 1.11 unless, prior to making any such proposal, so voting in favor of or otherwise supporting, more than two-thirds in amount and more than one-half in number of all claims held by the Revolving Administrative Agent and the Revolving Lenders have agreed in writing to vote in favor of or otherwise support any such plan.

 


 

(h)
Without limiting the generality of the foregoing provisions of this Section 1.11, this Section 1.11 is intended to constitute and shall be deemed to constitute a “subordination agreement” within the meaning of Section 510(a) of the Bankruptcy Code and is intended to be and shall be interpreted to be enforceable to the maximum extent permitted pursuant to applicable non-bankruptcy law.

In this Section 1.11:

 

Exercise of Remedies” means, subject to any Acceptable Intercreditor Agreement, the exercise of remedies hereunder or under any other Loan Document by any Agent (or after the Loans (or any portion thereof) or any other Obligations have automatically become due and payable in accordance with Section 8.01).

 

Revolver Payment Priority Trigger Event” means an Event of Default pursuant to Sections 8.01(a), (b), (d) (solely with respect to a failure to comply with the Springing Covenant), (e) (solely with respect to a failure to deliver financial statements pursuant to Sections 5.01(a) or (b)), (f)(i)(A), (g), (h) or (i) has occurred and is continuing).

 

ARTICLE II


THE CREDITS
SECTION 2.01
Commitments.
(a)
The Initial Term Loans. Subject to the satisfaction (or waiver in accordance with the terms hereof) of the conditions set forth in Section 4.01 and subject to the other terms hereof, and relying upon the representations and warranties set forth herein, each Lender with an Initial Term Loan Commitment agrees to make an Initial Term Loan to the Borrower in Dollars on the Closing Date in a principal amount not to exceed its Initial Term Loan Commitment. The Initial Term Loan Commitments shall automatically and irrevocably terminate on the Closing Date after the funding of the Initial Term Loans. Amounts paid or prepaid in respect of Initial Term Loans may not be reborrowed.
(b)
The Delayed Draw Term Loans. Subject to the satisfaction (or waiver in accordance with the terms hereof) of the conditions set forth in Section 4.02 at the time of the required funding thereof, and subject to the other terms hereof, and relying upon the representations and warranties set forth herein, each Lender with a Delayed Draw Term Loan Commitment agrees to make one or more Delayed Draw Term Loans to the Borrower in Dollars from time to time from the Business Day immediately following the Closing Date until the Delayed Draw Termination Date, with a principal amount for all Delayed Draw Term Loans in the aggregate not to exceed its Delayed Draw Term Loan Commitment. The Delayed Draw Term Loan Commitments shall automatically and irrevocably terminate on the Delayed Draw Termination Date after the funding of any Delayed Draw Term Loans to the extent the Delayed Draw Termination Date occurs pursuant to clause (a) of the definition thereof and shall otherwise terminate as provided for in clauses (b) and (c) of the definition thereof. Amounts paid or prepaid in respect of Delayed Draw Term Loans may not be reborrowed.
(c)
The Revolving Credit Loans. Subject to the satisfaction (or waiver in accordance with the terms hereof) of the conditions set forth in Section 4.03 at the time of the required funding thereof and subject to the other terms hereof, and relying upon the representations and warranties set forth herein, each Lender with a Revolving Credit Commitment agrees to make one or more Revolving Credit Loans to the Borrower in Dollars from time to time from the Business Day immediately following Closing Date until and including the Business Day immediately preceding the applicable Maturity Date in an aggregate principal amount such that its Revolving Exposure at any time does not exceed its Revolving Credit

 


 

Commitment. The Revolving Credit Commitments shall automatically and irrevocably terminate on the applicable Maturity Date. Within the limits of each Lender’s Revolving Credit Commitment, and subject to the other terms hereof, the Borrower may borrow under this Section 2.01(c), prepay under Section 2.09 and reborrow under this Section 2.01(c), from time to time until the applicable Maturity Date.
(d)
Sixteenth Amendment Incremental Term Loans. On the Sixteenth Amendment Effective Date, the Sixteenth Amendment Incremental Term Loans shall be made to the Borrower in accordance with the Sixteenth Amendment.
SECTION 2.02
Letters of Credit.
(a)
General. Subject to the terms and conditions set forth herein, the Borrower may request the Issuing Bank, and the Issuing Bank agrees, to issue Letters of Credit denominated in Dollars for the account of the Borrower or any Subsidiary of the Borrower (provided that the Borrower shall be a co‑applicant, and be jointly and severally liable, with respect to each Letter of Credit issued for the account of any Subsidiary of the Borrower) upon delivery to the relevant Issuing Bank and the Revolving Administrative Agent (at least three (3) Business Days in advance of the requested date of issuance, amendment, renewal or extension) of an LC Request requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or extended, and specifying the requested date of issuance of such Letter of Credit (which shall be a Business Day) and, as applicable, specifying the date of amendment, renewal or extension (which shall be a Business Day), the date on which such Letter of Credit is to expire, the amount of such Letter of Credit, the name and address of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit. The Issuing Bank shall have no obligation to issue, and the Borrower shall not request the issuance of, any Letter of Credit at any time if after giving effect to such issuance the LC Exposure would exceed the LC Sublimit or the total Revolving Exposure would exceed the total Revolving Credit Commitments. If requested by the Issuing Bank, the Borrower also shall submit a letter of credit application on the Issuing Bank’s standard form in connection with any request for a Letter of Credit; provided that in the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted by the Borrower to, or entered into by the Borrower with, the Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control.
(b)
Request for Issuance, Amendment, Renewal, Extension; Certain Conditions and Notices. To request the issuance of a Letter of Credit or the amendment, renewal or extension of an outstanding Letter of Credit, the Borrower shall deliver (by hand, email or other electronic transmission (including “.pdf” or “.tif”)) an LC Request to the Issuing Bank and the Revolving Administrative Agent not later than 1:00 p.m. (New York, New York time) three (3) Business Days preceding the requested date of issuance, amendment, renewal or extension (or such later date and time as is acceptable to the Issuing Bank).

A request for an initial issuance of a Letter of Credit shall specify, in form and detail reasonably satisfactory to the Issuing Bank:

(i)
the proposed issuance date of the requested Letter of Credit (which shall be a Business Day);