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Section 1: 8-K (8-K)

8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

November 16, 2018

 

 

Albertsons Companies, Inc.

(Exact Name of Registrant as Specified in Charter)

 

 

 

Delaware   333-205546   47-5579477

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

250 Parkcenter Blvd, Boise, ID   83706
(Address of Principal Executive Offices)   (Zip Code)

(208) 395-6200

(Registrant’s telephone number, including area code)

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 1.01

Entry into a Material Definitive Agreement

Term Loan Agreement

On November 16, 2018, Albertsons Companies, Inc. (the “Company” or “ACI”) repaid approximately $976 million in aggregate principal amount of the $2,976 million term loan tranche B-4 (the “Term Loan B-4”) along with accrued and unpaid interest on such amount and fees and expenses related to the Term Loan Repayment and the Term Loan B-7 (each as defined below), for which the Company used approximately $610 million of cash on hand and approximately $410 million of borrowings under the Company’s New ABL Facility (as defined below) (such repayment, the “Term Loan Repayment”). Substantially concurrently with the Term Loan Repayment, the Company amended the Company’s Second Amended and Restated Term Loan Agreement, dated as of August 25, 2014 and effective as of January 30, 2015 (as amended, the “Term Loan Agreement”), to establish a new term loan tranche and amend certain provisions of the Term Loan Agreement. The new tranche consists of $2,000 million of new term B-7 loans (the “Term Loan B-7”). The Term Loan B-7, together with cash on hand, was used to repay in full the remaining principal amount outstanding under the Term Loan B-4.

The Term Loan B-7 has a maturity date of November 17, 2025. The Term Loan B-7 amortizes, on a quarterly basis, at a rate of 1% per annum of the original principal amount of the Term Loan B-7 (which payments will be reduced as a result of the application of prepayments in accordance with the terms therewith). The Term Loan B-7 bears interest, at the borrower’s option, at a rate per annum equal to either (a) the base rate plus 2.00% or (b) LIBOR (subject to a 0.75% floor) plus 3.00%.

The other terms of the Term Loan Agreement will remain substantially the same.

The foregoing is a summary of the material provisions of the Term Loan B-7. It does not include all of the provisions of the amendment to the Term Loan Agreement, does not purport to be complete and is qualified in its entirety by reference to the full text of the amendment, which is filed herewith as Exhibit 10.1 and incorporated herein by reference.

New ABL Facility

On November 16, 2018, the Company amended and restated the agreement governing its existing secured asset-based loan facility (such agreement, as amended, the “New ABL Facility”). The following is a summary of the material provisions of the New ABL Facility. It does not include all of the provisions of the New ABL Facility, does not purport to be complete and is qualified in its entirety by reference to the full text of the New ABL Facility, which is filed herewith as Exhibit 10.2 and incorporated herein by reference.

Structure. The New ABL Facility provides for a $4,000 million revolving credit facility (with subfacilities for letters of credit and swingline loans), subject to a borrowing base (described below). In addition, ACI is entitled to increase the commitments under the New ABL Facility by up to $1,500 million.

Maturity. The New ABL Facility matures on November 16, 2023.

Borrowing Base. The amount of loans and letters of credit available under the New ABL Facility is limited to the lesser of the aggregate commitments under the New ABL Facility or an amount determined pursuant to a borrowing base. The borrowing base at any time is equal to 90% of eligible credit card receivables, plus 90% of the net amount of eligible pharmacy receivables, plus 90% (or 92.5% for the three consecutive four-week fiscal accounting periods ending nearest to the end of February, March and April of each year) of the “net recovery percentage” of eligible inventory (other than perishable inventory) multiplied by the book value thereof, plus 90% (or 92.5% for the three consecutive four-week fiscal accounting periods ending nearest to the end of February, March and April of each year) of the “net recovery percentage” of eligible perishable inventory multiplied by the book value thereof (subject to a cap of 25% of the borrowing base), plus 85% of the product of the average per script net orderly liquidation value of the eligible prescription files of the borrowers and the guarantors thereunder (the “ABL Eligible Pharmacy Scripts”), multiplied by the number of such ABL Eligible Pharmacy Scripts (subject to a cap of 30% of the borrowing base), minus eligibility reserves. The eligibility of accounts receivable, inventory and prescription files for inclusion in the borrowing base will be determined in accordance with certain customary criteria specified in the credit agreement that governs the New ABL Facility, including periodic appraisals.

Interest. Amounts outstanding under the New ABL Facility bear interest at a rate per annum equal to, at ACI’s option, (i) the base rate, plus an applicable margin equal to (a) 0.25% (if daily average excess availability during the most recently ended fiscal quarter is greater than or equal to 66% of the aggregate commitments), (b) 0.50% (if daily average


excess availability during the most recently ended fiscal quarter is less than 66% of the aggregate commitments, but greater than or equal to 20% of the aggregate commitments), or (c) 0.75% (if daily average excess availability during the most recently ended fiscal quarter is less than 20% of the aggregate commitments), or (ii) LIBOR, plus an applicable margin equal to (a) 1.25% (if daily average excess availability during the most recently ended fiscal quarter is greater than or equal to 66% of the aggregate commitments), (b) 1.50% (if daily average excess availability during the most recently ended fiscal quarter is less than 66% of the aggregate commitments, but greater than or equal to 20% of the aggregate commitments), or (c) 1.75% (if daily average excess availability during the most recently ended fiscal quarter is less than 20% of the aggregate commitments). If not paid when due, the New ABL Facility bears interest at the rate otherwise applicable to such loans at such time plus an additional 2% per annum during the continuance of such payment event of default and the letter of credit fees increase by 2%. Other overdue amounts bear interest at a rate equal to the rate otherwise applicable to such revolving loans bearing interest at the base rate at such time, plus 2% until such amounts are paid in full.

Guarantees. Subject to certain exceptions as set forth in the definitive documentation for the New ABL Facility, the amounts outstanding under the New ABL Facility are guaranteed by each of ACI’s existing and future direct and indirect wholly-owned domestic subsidiaries that are not borrowers.

Security. Subject to certain exceptions as set forth in the definitive documentation for the New ABL Facility, the obligations under the New ABL Facility are secured by (i) a first-priority security interest in and lien on substantially all of the accounts receivable, inventory, documents of title related to inventory, instruments, general intangibles (excluding any equity interests of ACI or any of its subsidiaries and intellectual property), chattel paper, and supporting obligations of ACI and its subsidiaries that are borrowers or guarantors under the New ABL Facility and (ii) a second-priority security interest in and lien on substantially all other assets (other than real property).

Fees. Certain customary fees are payable to the lenders and the agents under the New ABL Facility, including a commitment fee on the average daily unused amount of the New ABL Facility, in an amount equal to (i) 0.25% per annum if such average daily excess availability amount during the most recently ended fiscal quarter is less than 50% of the aggregate commitments and (ii) 0.375% per annum if such average daily excess availability amount during the most recently ended fiscal quarter is greater than or equal to 50% of the aggregate commitments.

Affirmative and Negative Covenants. The New ABL Facility contains various affirmative and negative covenants (in each case, subject to customary exceptions as set forth in the definitive documentation for the New ABL Facility), including, but not limited to, restrictions on ACI’s ability and the ability of its restricted subsidiaries to: (i) dispose of assets; (ii) incur additional indebtedness, issue preferred stock and guarantee obligations; (iii) prepay other indebtedness; (iv) make certain restricted payments, including the payment of dividends by ACI; (v) create liens on assets or agree to restrictions on the creation of liens on assets; (vi) make investments, loans or advances; (vii) restrict dividends and distributions from ACI’s subsidiaries; (viii) engage in mergers or consolidations; (ix) engage in certain transactions with affiliates; (x) amend the terms of any of ACI’s organizational documents or material indebtedness; (xi) change lines of business; or (xii) make certain accounting changes.

Financial Covenants. The New ABL Facility provides that if (i) excess availability is less than (a) 10% of the lesser of the aggregate commitments and the then-current borrowing base at any time or (b) $250 million at any time or (ii) an event of default is continuing, ACI and its subsidiaries must maintain a fixed charge coverage ratio of 1.0:1.0 from the date such triggering event occurs until such event of default is cured or waived and/or the 30th day that all such triggers under clause (i) no longer exist.

Events of Default. The New ABL Facility contains customary events of default (subject to exceptions, thresholds and grace periods as set forth in the definitive documentation for the New ABL Facility), including, without limitation: (i) nonpayment of principal or interest; (ii) failure to perform or observe covenants; (iii) inaccuracy or breaches of representations and warranties; (iv) cross-defaults and cross-accelerations with certain other indebtedness; (v) certain bankruptcy related events; (vi) impairment of security interests in collateral; (vii) invalidity of guarantees; (viii) material judgments; (ix) certain ERISA matters; and (x) certain change of control events (including after completion of this offering, any person or group (other than (a) Cerberus Capital Management, L.P.; (b) Lubert-Adler Partners, L.P.; (c) Klaff Realty, L.P.; (d) Schottenstein Stores Corp.; and (e) Kimco Realty Corporation, and their affiliates, related funds and managed accounts)).


Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off Balance Sheet Arrangement of a Registrant

The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated into this Item 2.03 by reference.

 

Item 9.01

Financial Statements and Exhibits.

 

(d)

Exhibits

 

10.1    Amendment No. 7, dated as of November 16, 2018, to the Second Amended and Restated Term Loan Agreement, dated as of August 25, 2014 and effective as of January  30, 2015, among Albertsons Companies, Inc., Albertson’s LLC, the co-borrowers party thereto, the guarantors party thereto, the parties thereto from time to time as lenders and Credit Suisse AG, Cayman Islands Branch, in its capacity as administrative agent and collateral agent.
10.2    Third Amended and Restated Asset-Based Revolving Credit Agreement, dated as of November  16, 2018, among Albertsons Companies, Inc., as lead borrower, the subsidiary borrowers and guarantors from time to time party thereto, the lenders from time to time party thereto and Bank of America, N.A. as administrative and collateral agent.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

   

Albertsons Companies, Inc.

(Registrant)

November 16, 2018     By:  

/s/ Robert A. Gordon                                        

    Name:   Robert A. Gordon
    Title:   Executive Vice President and General Counsel
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Section 2: EX-10.1 (EX-10.1)

EX-10.1

Exhibit 10.1

EXECUTION VERSION

AMENDMENT NO. 7

AMENDMENT NO. 7, dated as of November 16, 2018 (this “Amendment”), to the Second Amended and Restated Term Loan Agreement, dated as of August 25, 2014 and effective as of January 30, 2015 (as amended by that certain Amendment No. 1, dated as of December 21, 2015, that certain Amendment No. 2, dated as of December 21, 2015, that certain Amendment No. 3 and Consent, dated as of February 11, 2016, that certain Amendment No. 4, dated as of June 22, 2016, that certain Amendment No. 5, dated as of December 23, 2016, that certain Amendment No. 6, dated as of June 27, 2017 and as the same may be further amended, supplemented, amended and restated or otherwise modified from time to time, the “Existing Term Loan Agreement”, and the Existing Term Loan Agreement as amended by Section 2(a) of this Amendment, the “Amended Term Loan Agreement”) among ALBERTSONS COMPANIES, INC. (as successor to Albertsons Companies, LLC by way of merger) (“ACI” or “Holdings”), ALBERTSON’S LLC, a Delaware limited liability company (the “Parent Borrower”), the co-borrowers party thereto (together with the Parent Borrower, the “Borrowers” and each, a “Borrower”), the guarantors party thereto, the parties thereto from time to time as lenders (each individually, a “Lender” and collectively, “Lenders”) and CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, in its capacity as administrative agent and collateral agent (in such capacities, “Agent” as further defined in the Existing Term Loan Agreement).

W I T N E S S E T H

Replacement 2018 Term B-7 Loans

WHEREAS, immediately prior to the effectiveness of this Amendment, the Borrowers have, together with any accrued and unpaid interest thereon $2,975,950,243.75 in aggregate principal amount of 2017-1 Term B-4 Loans (as defined in the Existing Term Loan Agreement) outstanding;

WHEREAS, immediately prior to the effectiveness of this Amendment, the Borrowers will repay $975,950,243.75, together with any accrued and unpaid interest, of the 2017-1Term B-4 Loans (the “Paydown”);

WHEREAS, after giving effect to the Paydown, the aggregate principal amount of the 2017-1 Term B-4 Loans will be $2,000,000,000;

WHEREAS, pursuant to Section 2.9 and/or Section 12.3(i) of the Existing Term Loan Agreement, the Borrowers may obtain Credit Agreement Refinancing Indebtedness (as defined in the Existing Term Loan Agreement) by, among other things, entering into a Refinancing Amendment (as defined in the Existing Term Loan Agreement) pursuant to the terms and conditions of the Existing Term Loan Agreement with each person agreeing to provide such Credit Agreement Refinancing Indebtedness;

WHEREAS, each 2017-1 Term B-4 Lender (as defined in the Existing Term Loan Agreement) that shall have executed and delivered a consent to this Amendment substantially in the form of Exhibit B hereto (a “Consent”) and checks the “2017-1 Term B-4 Cashless Settlement Option” on such Consent will thereby (i) agree to the terms of this Amendment, (ii) be deemed, upon effectiveness of this Amendment, to have exchanged all of its 2017-1 Term B-4 Loans (or such lesser amount allocated to it by the Agent) for Replacement 2018 Term B-7 Loans (as defined below) and shall be deemed a Replacement 2018 Term B-7 Lender (as defined below) and (iii) agree to the terms of that certain 2018 Term B-7 Cashless Roll Letter dated as of the date hereof among the Borrowers, the Additional 2018 Term B-7 Lender (as defined below) party thereto and the Agent (the “2018 Term B-7 Cashless Roll Letter”), and shall be deemed a party to the 2018 Term B-7 Cashless Roll Letter and be bound thereby for all purposes hereof and thereof;

 

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WHEREAS, the Borrowers have requested a borrowing of Credit Agreement Refinancing Indebtedness (such loans, the “Replacement 2018 Term B-7 Loans” and the lenders thereto, including any Lenders who have executed Consents or any Additional 2018 Term B-7 Lenders who have executed Joinders, the “Replacement 2018 Term B-7 Lenders” (for the avoidance of doubt, such term includes any assignees of the Replacement 2018 Term B-7 Lenders)), together with other financing and cash on hand, to finance the repayment in full of the amounts outstanding under the 2017-1 Term B-4 Loans as of the Amendment No. 7 Effective Date;

WHEREAS, each lender that executes and delivers a joinder agreement, substantially in the form of Exhibit A to this Amendment (a “Joinder”), as an “Additional Lender” thereto (an “Additional 2018 Term B-7 Lender”) (i) shall be deemed to be a Replacement 2018 Term B-7 Lender and (ii) will make Replacement 2018 Term B-7 Loans in the amount set forth on the signature page of such lender’s Joinder on the Amendment No. 7 Effective Date to the Borrowers, the proceeds of which will be used by the Borrowers to repay in full the outstanding principal amount of Non-Exchanged 2017-1 Term B-4 Loans (as defined in Amended Existing Term Loan Agreement) and to repay in full any outstanding principal amount of 2017-1 Term B-4 Loans as of the Amendment No. 7 Effective Date;

WHEREAS, solely for purposes of this Amendment and the transactions contemplated herein (including, but not limited to, the Paydown), the parties hereto agree (i) that the prepayment notice requirements in Section 2.3(a) of the Existing Term Loan Agreement are hereby satisfied and (ii) that the Borrowers shall not be obligated to pay any “breakage” fees to any of the parties hereto pursuant to Section 3.3 of the Existing Term Loan Agreement in connection with this Amendment and the transactions contemplated hereby;

WHEREAS, on the Amendment No. 7 Effective Date after giving effect to the transactions contemplated herein, the outstanding aggregate principal amount of 2018 Term B-7 Loans (as defined in the Amended Term Loan Agreement) will be $2,000,000,000;

Proposed Amendments

WHEREAS, Section 12.3 of the Existing Term Loan Agreement provides that the Borrowers may, with consent of the Required Lenders (as defined in the Existing Term Loan Agreement) and/or each Lender directly affected thereby, amend certain provisions of the Existing Term Loan Agreement or any other Financing Agreements (as defined in the Existing Term Loan Agreement), including the Proposed Amendments (as defined below) provided for herein;

WHEREAS, the Borrowers are hereby requesting consents to the Proposed Amendments from the Replacement 2018 Term B-7 Lenders;

WHEREAS, each Replacement 2018 Term B-7 Lender, either by the execution of a Consent or a Joinder, desires to grant a continuing consent to the Proposed Amendments; and

WHEREAS, upon receipt of consents from Lenders (which include the Replacement 2018 Term B-7 Lenders) comprising (i) at least the Required Lenders, the Proposed Amendments (other than with respect to the LIBOR Discontinuation Amendment (as defined below)) shall become effective and (ii) all Lenders, the LIBOR Discontinuation Amendment shall become effective.

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

 

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SECTION 1. Defined Terms. Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Existing Term Loan Agreement.

SECTION 2. Amendments.

(a) Replacement 2018 Term B-7 Loans. Subject to the satisfaction of the conditions set forth in Section 3 below, the Existing Term Loan Agreement is hereby amended to delete the stricken text (indicated textually in the same manner as the following examples: stricken text or stricken text) and to add the double-underlined text (indicated textually in the same manner as the following examples: double-underlined text or double-underlined text) as set forth in the pages of the Existing Term Loan Agreement attached as Exhibit C hereto.

(b) Proposed Amendments. Each of the parties hereto (i) agrees (and provides a continuing consent) that the Amended Term Loan Agreement shall be amended in the manner set forth in Exhibit D hereto (the “Proposed Amendments”) and (ii) acknowledges and agrees that each Replacement 2018 Term B-7 Lender, either by the execution of a Consent or a Joinder, shall be deemed to have provided a continuing consent to the Proposed Amendments pursuant to this Amendment. The Proposed Amendments (other than the proposed amendments with respect to Section 2.11 and Section 3.4 as set forth in Exhibit D hereto, the “LIBOR Discontinuation Amendment”) shall automatically become effective and operative on the earlier of (x) the date on which the Agent (or its counsel) shall have received executed counterparts to an amendment, consent or other agreement implementing the Proposed Amendments signed on behalf of the Borrowers, the Agent and additional Lenders that, when taken together with the Replacement 2018 Term B-7 Lenders consenting to such Proposed Amendments pursuant to this Amendment, constitute the Required Lenders as of such date or (y) the date on which the Replacement 2018 B-7 Lenders constitute the Required Lenders (such date, the “Amendment No. 7 Proposed Amendments Effective Date”; provided that solely with respect to the LIBOR Discontinuation Amendment, the “Amendment No. 7 Proposed Amendments Effective Date” shall mean the date on which each Lender directly affected thereby has provided its consent regarding such amendment). The parties hereto further acknowledge and agree that any assignee of any Replacement 2018 Term B-7 Loan, shall take such Replacement 2018 Term B-7 Loan subject to, and such assignee shall be bound by, the consent to the Proposed Amendments provided by such Replacement 2018 Term B-7 Lender pursuant to this Amendment.

SECTION 3. Conditions to Effectiveness of Amendment. This Amendment shall become effective on the date (the “Amendment No. 7 Effective Date”) that the following conditions have been satisfied:

(a) the Agent shall have received a counterpart of this Amendment, executed and delivered by a duly authorized officer of each Loan Party (as defined in the Existing Term Loan Agreement);

(b) the Agent shall have received (i) Consents from Lenders constituting Replacement 2018 Term B-7 Lenders and/or (ii) executed Joinders, each entered into by an Additional 2018 Term B-7 Lender, Holdings and the Borrowers, and acknowledged by the Agent;

(c) the Agent shall have received a customary legal opinion (including no conflicts with all indentures and other material debt documents of the Parent Borrower and its subsidiaries) (i) from Schulte Roth & Zabel LLP, counsel to the Loan Parties and (ii) from Greenberg Traurig LLP, California, Illinois, Massachusetts, and Texas counsel to the Loan Parties, in each case addressed to the Agent and the Lenders;

 

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(d) the Agent shall have received (i) a copy of the certificate or articles of incorporation or organization, including all amendments thereto, of each Loan Party, certified, if applicable, as of a recent date by the Secretary of State of the state of its organization, and a certificate as to the good standing (where relevant) of each Loan Party as of a recent date, from such Secretary of State or similar Governmental Authority (as defined in the Existing Term Loan Agreement) and (ii) a certificate of a duly authorized officer of each Loan Party dated the Amendment No. 7 Effective Date and certifying (A) that attached thereto is a true and complete copy of the by-laws or operating (or limited liability company) agreement of such Loan Party as in effect on the Amendment No. 7 Effective Date or, if applicable, that no modifications have been made to such documents since June 27, 2017, (B) that attached thereto is a true and complete copy of resolutions duly adopted by the board of directors (or equivalent governing body) of such Loan Party authorizing the execution, delivery and performance of this Amendment and, in the case of the Borrowers, the borrowings hereunder, and that such resolutions have not been modified, rescinded or amended and are in full force and effect, and (C) as to the incumbency and specimen signature of each officer executing this Amendment on behalf of such Loan Party and countersigned by another officer as to the incumbency and specimen signature of a duly authorized officer executing the certificate pursuant to clause (ii) above;

(e) the Agent shall have received a certificate of an authorized officer of the Parent Borrower dated the Amendment No. 7 Effective Date certifying that (i) each of the representations and warranties made by any Loan Party in or pursuant to the Financing Agreements shall be, after giving effect to this Amendment, true and correct in all material respects as if made on and as of the Amendment No. 7 Effective Date, except to the extent such representations and warranties expressly relate to an earlier time, in which case such representations and warranties were true and correct in all material respects as of such earlier time; provided that to the extent any such representation or warranty is already qualified by materiality or material adverse effect, such representation or warranty is true and correct in all respects; provided, further, that each reference to the Existing Term Loan Agreement therein shall be deemed to be a reference to the Existing Term Loan Agreement after giving effect to this Amendment; (ii) after giving effect to this Amendment, no Default or Event of Default (each as defined in the Existing Term Loan Agreement) shall have occurred and be continuing and (iii) no event shall have occurred and no condition shall exist that has or may be reasonably to be likely to have a Material Adverse Effect (as defined in the Existing Term Loan Agreement);

(f) the Parent Borrower shall have paid (or have caused to be paid), (i) to the Amendment No. 7 Arrangers (as defined below) in immediately available funds, all fees owing to the Amendment No. 7 Arrangers in connection with arranging Term Loans (as defined in the Existing Term Loan Agreement) as separately agreed to in writing by Holdings and the Amendment No. 7 Arrangers and (b) to the extent invoiced, all reasonable and documented out-of-pocket expenses of the Amendment No. 7 Arrangers and the Agent in connection with this Amendment and the transactions contemplated hereby (but limited, in the case of legal fees and expenses, to the reasonable and documented fees and expenses of Cahill Gordon & Reindel LLP);

(g) subject to subsection (e) above, the conditions precedent set forth in Section 4.2 of the Existing Term Loan Agreement shall have been satisfied both before and after giving effect to the borrowing of Replacement 2018 Term B-7 Loans;

(h) the Agent shall have received a solvency certificate signed by the Chief Financial Officer of Holdings substantially in the form attached as Exhibit O to the Existing Term Loan Agreement;

(i) if requested by the Agent, the Agent shall have received results of searches or other evidence reasonably satisfactory to the Agent (in each case dated as of a date reasonably satisfactory to the Agent) indicating the absence of Liens (as defined in the Existing Term Loan Agreement) on the

 

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assets of the Loan Parties, except for Permitted Liens (as defined in the Existing Term Loan Agreement) and Liens for which termination statements and releases, satisfactions and releases or subordination agreements satisfactory to the Agent are being tendered concurrently with the Amendment No. 7 Effective Date or other arrangements satisfactory to the Agent for the delivery of such termination statements and releases, satisfactions and discharges have been made;

(j) the Agent shall have received a Committed Loan Notice (as defined in the Existing Term Loan Agreement) for the Replacement 2018 Term B-7 Loans;

(k) the Agent shall have received, at least five (5) Business Days (as defined in the Existing Term Loan Agreement) prior to the Amendment No. 7 Effective Date, all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations including, without limitation, the PATRIOT Act, that has been reasonably requested by the Lenders at least ten (10) Business Days prior to the Amendment No. 7 Effective Date;

(l) to the extent any Borrower qualifies as a “legal entity customer” under 31 C.F.R. § 1010.230 (the “Beneficial Ownership Regulation”) and at least five (5) Business Days prior to the Amendment No. 7 Effective Date, such Borrower shall deliver to each Lender that so requests (which request is made through the Agent), a certification regarding beneficial ownership required by the Beneficial Ownership Regulation (the “Beneficial Ownership Certification”) in relation to such Borrower; provided that the Agent has provided such Borrower a list of each such Lender and its electronic delivery requirements at least ten (10) Business Days prior to the Amendment No. 7 Effective Date;

(m) a completed “life of loan” Federal Emergency Management Agency Standard Flood Hazard Determination with respect to each Mortgaged Property (as defined in the Existing Term Loan Agreement), and to the extent any Mortgaged Property is located in a special flood hazard area, (i) a notice about special flood hazard area status and flood disaster assistance duly executed by the Parent Borrower and each Loan Party relating thereto, and (ii) evidence of flood insurance as required by Section 9.4 of the Existing Term Loan Agreement and the applicable provisions of the Collateral Documents (as defined in the Existing Term Loan Agreement); and

(n) the Paydown shall have been consummated prior to or substantially concurrently with the effectiveness of this Amendment.

SECTION 4. [Reserved].

SECTION 5. Post-Closing Obligations. The Parent Borrower and Holdings shall or shall cause to be delivered to the Agent within 180 days after the Amendment No. 7 Effective Date (or such later date as the Agent in its reasonable discretion may agree) each of the items listed on Schedule I attached hereto.

SECTION 6. Representations and Warranties. The Borrowers hereby represent and warrant that:

(a) before and after giving effect to the borrowing of Replacement 2018 Term B-7 Loans, (i) each of the representations and warranties made by any Loan Party in or pursuant to the Financing Agreements shall be, after giving effect to this Amendment, true and correct in all material respects as if made on and as of the Amendment No. 7 Effective Date, except to the extent such representations and warranties expressly relate to an earlier time, in which case such representations and warranties were true and correct in all material respects as of such earlier time; provided that to the extent any such representation or warranty is already qualified by materiality or material adverse effect, such

 

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representation or warranty is true and correct in all respects; provided, further, that each reference to the Existing Term Loan Agreement therein shall be deemed to be a reference to the Existing Term Loan Agreement after giving effect to this Amendment; (ii) after giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing and (iii) no event shall have occurred and no condition shall exist that has or may reasonably be likely to have a Material Adverse Effect; and

(b) As of the Amendment No. 7 Effective Date, the information included in any Beneficial Ownership Certification is true and correct in all material respects.

SECTION 7. Extension of Loan. The parties hereto hereby acknowledge and agree that, subject to Section 3 above, the Replacement 2018 Term B-7 Lenders shall make the Replacement 2018 Term B-7 Loans available to the Parent Borrower on the date specified therefor in the related Committed Loan Notice in accordance with instructions provided by the Parent Borrower to (and reasonably acceptable to) the Agent.

SECTION 8. Effects on Financing Agreements. Except as specifically amended herein, all Financing Agreements shall continue to be in full force and effect and are hereby in all respects ratified and confirmed. Except as otherwise expressly provided herein, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of any Lender or the Agent under any of the Financing Agreements, nor constitute a waiver of any provision of the Financing Agreements.

SECTION 9. GOVERNING LAW; WAIVER OF JURY TRIAL. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK. EACH PARTY HERETO HEREBY AGREES AS SET FORTH FURTHER IN SECTION 12.1 OF THE EXISTING TERM LOAN AGREEMENT AS IF SUCH SECTION WAS SET FORTH IN FULL HEREIN.

SECTION 10. Financing Agreement. This Amendment shall constitute a “Financing Agreement” for all purposes of the Existing Term Loan Agreement and the other Financing Agreements.

SECTION 11. Amendments; Execution in Counterparts; Notice. This Amendment shall not constitute an amendment of any other provision of the Existing Term Loan Agreement not referred to herein and shall not be construed as a waiver or consent to any further or future action on the part of the Loan Parties that would require a waiver or consent of the Required Lenders or the Agent. Except as expressly amended hereby, the provisions of the Existing Term Loan Agreement are and shall remain in full force and effect. This Amendment may be executed in any number of counterparts and by the different parties hereto on separate counterparts, including by means of facsimile or electronic transmission, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument.

SECTION 12. Roles. The parties hereto acknowledge and agree that each of Credit Suisse Loan Funding LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., Morgan Stanley Senior Funding, Inc., Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Barclays Bank PLC and Wells Fargo Securities, LLC shall act as joint lead arrangers and joint lead bookrunners for the Replacement 2018 Term B-7 Loans (collectively, the “Joint Lead Arrangers”). The parties hereto further acknowledge and agree that each of U.S. Bank National Association, MUFG Union Bank, N.A., Royal Bank of Canada, SunTrust Robinson Humphrey, Inc. and TD Securities (USA) LLC shall act as co-managers for the Replacement 2018 Term B-7 Loans (collectively and together with the Joint Lead Arrangers, the “Amendment No. 7 Arrangers”). The parties

 

6


hereto agree that Section 12.5 of the Existing Term Loan Agreement is incorporated herein mutatis mutandis as if set forth herein in full.

SECTION 13. Acknowledgement and Reaffirmation. Holdings, each Borrower and each Subsidiary Guarantor hereby (i) expressly acknowledges the terms of the Existing Term Loan Agreement as amended hereby, (ii) to the extent party thereto or covered thereunder, ratifies and affirms after giving effect to this Amendment its obligations under the Financing Agreements (including guarantees, security agreements, mortgages and deeds of trusts) executed by Holdings, the Borrowers and/or such Subsidiary Guarantor and (iii) to the extent applicable, after giving effect to this Amendment, acknowledges, renews and extends its continued liability under all such Financing Agreements and agrees such Financing Agreements remain in full force and effect.

[Remainder of page intentionally left blank]

 

7


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

 

ALBERTSONS COMPANIES, INC.
By:  

/s/ Robert Dimond                                        

  Name:   Robert Dimond
  Title:   Executive Vice President and Chief Financial Officer
ALBERTSON’S LLC
By:  

/s/ Robert A. Gordon

  Name:   Robert A. Gordon
  Title:   Executive Vice President, General Counsel & Secretary
NEW ALBERTSONS L.P.
By:  

/s/ Robert Dimond

  Name:   Robert Dimond
  Title:   Executive Vice President & Chief Financial Officer
SAFEWAY INC.
By:  

/s/ Robert A. Gordon                                        

  Name:   Robert A. Gordon
 

Title:

 

Executive Vice President, General

Counsel & Secretary

UNITED SUPERMARKETS, L.L.C.
By:  

/s/ Bradley R. Beckstrom

  Name:   Bradley R. Beckstrom
  Title:   Group Vice President, Real Estate & Business Law & Assistant Secretary

 

[Signature Page to Amendment No. 7]


SPIRIT ACQUISITION HOLDINGS LLC
By:  

/s/ Bradley R. Beckstrom                    

  Name:   Bradley R. Beckstrom
  Title:   Group Vice President, Real Estate & Business Law & Assistant Secretary
NAI HOLDINGS GP LLC
By:  

/s/ Robert Dimond                                        

  Name:   Robert Dimond
  Title:   Executive Vice President & Chief Financial Officer
ALBERTSON’S STORES SUB HOLDINGS LLC
By:  

/s/ Bradley R. Beckstrom

  Name:   Bradley Beckstrom
  Title:   Group Vice President, Real Estate & Business Law & Assistant Secretary
AB ACQUISITION LLC
By:  

/s/ Bradley R. Beckstrom

  Name:   Bradley Beckstrom
  Title:   Group Vice President, Real Estate & Business Law & Assistant Secretary
ALBERTSON’S STORES SUB LLC
By:  

/s/ Bradley R. Beckstrom

  Name:   Bradley Beckstrom
  Title:   Group Vice President, Real Estate & Business Law & Assistant Secretary

 

[Signature Page to Amendment No. 7]


AB MANAGEMENT SERVICES CORP.
By:  

/s/ Robert Dimond                                        

  Name:   Robert Dimond
  Title:   Executive Vice President & Chief Financial Officer
ABS REAL ESTATE COMPANY LLC
By:  

/s/ Robert A. Gordon

  Name:   Robert A. Gordon
  Title:   Executive Vice President, General Counsel & Secretary

 

[Signature Page to Amendment No. 7]


ABS FINANCE CO., INC.
ACME MARKETS, INC.
APLC PROCUREMENT, INC.
ASC MEDIA SERVICES, INC.
ASP REALTY, LLC
CLIFFORD W. PERHAM, INC.
JEWEL COMPANIES, INC.
JEWEL FOOD STORES, INC.
OAKBROOK BEVERAGE CENTERS, INC.
SHAW’S SUPERMARKETS, INC.
SSM HOLDINGS COMPANY
STAR MARKETS COMPANY, INC.
STAR MARKETS HOLDINGS, INC.
AMERICAN STORES COMPANY, LLC
AMERICAN DRUG STORES LLC
AMERICAN PROCUREMENT AND LOGISTICS COMPANY LLC
LUCKY STORES LLC
AMERICAN PARTNERS, L.P.
JETCO PROPERTIES, INC.
SHAW’S REALTY CO.
WILDCAT MARKETS OPCO LLC
NAI SATURN EASTERN LLC
GIANT OF SALISBURY, INC.
COLLINGTON SERVICES LLC
ALBERTSONS COMPANIES SPECIALTY CARE, LLC
MEDCART SPECIALTY CARE, LLC
By:  

/s/ Gary Morton

  Name:   Gary Morton
  Title:   Vice President, Treasurer & Assistant Secretary
SHAW’S REALTY TRUST
By:  

/s/ Gary Morton

  Name:   Gary Morton
  Title:   Trustee

 

[Signature Page to Amendment No. 7]


FRESH HOLDINGS LLC
GOOD SPIRITS LLC
AMERICAN FOOD AND DRUG LLC
EXTREME LLC
NEWCO INVESTMENTS, LLC
NHI INVESTMENT PARTNERS, LP
AMERICAN STORES PROPERTIES LLC
JEWEL OSCO SOUTHWEST LLC
SUNRICH MERCANTILE LLC
ABS REAL ESTATE HOLDINGS LLC
ABS REAL ESTATE INVESTOR HOLDINGS LLC
ABS REAL ESTATE OWNER HOLDINGS LLC
ABS MEZZANINE I LLC
ABS FLA INVESTOR LLC
ABS SW INVESTOR LLC
ABS RM INVESTOR LLC
ABS DFW INVESTOR LLC
ASP SW INVESTOR LLC
ABS REALTY INVESTOR LLC
ABS FLA LEASE INVESTOR LLC
ABS SW LEASE INVESTOR LLC
ABS RM LEASE INVESTOR LLC
ASP SW LEASE INVESTOR LLC
AFDI NOCAL LEASE INVESTOR LLC
ABS NOCAL LEASE INVESTOR LLC
ABS REALTY LEASE INVESTOR LLC
ABS TX INVESTOR GP LLC
ASR TX INVESTOR GP LLC
ABS TX INVESTOR LP
ABS TX LEASE INVESTOR GP LLC
ABS TX LEASE INVESTOR LP
ASR TX INVESTOR LP
ASR LEASE INVESTOR LLC
By:  

/s/ Bradley R. Beckstrom                    

  Name:   Bradley R. Beckstrom
  Title:   Group Vice President, Real Estate & Business Law & Assistant Secretary

 

[Signature Page to Amendment No. 7]


ABS MEZZANINE II LLC
ABS FLA OWNER LLC
ABS SW OWNER LLC
ABS SW LEASE OWNER LLC
LUCKY (DEL) LEASE OWNER LLC
SHORTCO OWNER LLC
ABS NOCAL LEASE OWNER LLC
LSP LEASE LLC
ABS RM OWNER LLC
ABS RM LEASE OWNER LLC
ABS DFW OWNER LLC
ABS DFW LEASE OWNER LLC
ASP SW OWNER LLC
ASP SW LEASE OWNER LLC
EXT OWNER LLC
SUNRICH OWNER LLC
EXT LEASE OWNER LLC
NHI TX OWNER GP LLC
NHI TX OWNER LP
NHI TX LEASE OWNER GP LLC
NHI TX LEASE OWNER LP
ASR OWNER LLC
ASR TX LEASE OWNER GP LLC
ASR TX LEASE OWNER LP
ABS TX OWNER GP LLC
ABS TX OWNER LP
ABS TX LEASE OWNER GP LLC
ABS TX LEASE OWNER LP
ABS MEZZANINE III LLC
ABS CA-O LLC
ABS CA-GL LLC
ABS ID-O LLC
ABS ID-GL LLC
ABS MT-O LLC
ABS MT-GL LLC
ABS NV-O LLC
ABS NV-GL LLC
By:  

/s/ Bradley R. Beckstrom

  Name:   Bradley R. Beckstrom
  Title:   Group Vice President, Real Estate & Business Law & Assistant Secretary

 

[Signature Page to Amendment No. 7]


ABS OR-O LLC
ABS OR-GL LLC
ABS UT-O LLC
ABS UT-GL LLC
ABS WA-O LLC
ABS WA-GL LLC
ABS WY-O LLC
ABS WY-GL LLC
ABS CA-O DC1 LLC
ABS CA-O DC2 LLC
ABS ID-O DC LLC
ABS OR-O DC LLC
ABS UT-O DC LLC
By:  

/s/ Bradley R. Beckstrom

  Name:   Bradley R. Beckstrom
  Title:   Group Vice President, Real Estate & Business Law & Assistant Secretary

 

[Signature Page to Amendment No. 7]


USM MANUFACTURING L.L.C.
LLANO LOGISTICS, INC.
By:  

/s/ Bradley R. Beckstrom

  Name:   Bradley R. Beckstrom
  Title:   Group Vice President, Real Estate & Business Law & Assistant Secretary

 

[Signature Page to Amendment No. 7]


CAYAM ENERGY, LLC
DIVARIO VENTURES LLC
DOMINICK’S SUPERMARKETS, LLC
DOMINICK’S FINER FOODS, LLC
GFM HOLDINGS I, INC.
GFM HOLDINGS LLC
LUCERNE FOODS, INC.
EATING RIGHT LLC
LUCERNE DAIRY PRODUCTS LLC
LUCERNE NORTH AMERICA LLC
O ORGANICS LLC
RANDALL’S HOLDINGS, INC.
RANDALL’S FOOD MARKETS, INC.
SAFEWAY AUSTRALIA HOLDINGS, INC.
SAFEWAY CANADA HOLDINGS, INC.
SAFEWAY NEW CANADA, INC.
SAFEWAY CORPORATE, INC.
SAFEWAY STORES 67, INC.
SAFEWAY DALLAS, INC.
AVIA PARTNERS, INC.
SAFEWAY STORES 78, INC.
SAFEWAY STORES 79, INC.
SAFEWAY STORES 80, INC.
SAFEWAY STORES 85, INC.
SAFEWAY STORES 86, INC.
SAFEWAY STORES 87, INC.
SAFEWAY STORES 88, INC.
SAFEWAY STORES 89, INC.
SAFEWAY STORES 90, INC.
SAFEWAY STORES 91, INC.
SAFEWAY STORES 92, INC.
SAFEWAY STORES 96, INC.
SAFEWAY STORES 97, INC.
SAFEWAY STORES 98, INC.
SAFEWAY DENVER, INC.
SAFEWAY STORES 44, INC.
SAFEWAY STORES 45, INC.
SAFEWAY STORES 46, INC.
SAFEWAY STORES 47, INC.
SAFEWAY STORES 48, INC.
SAFEWAY STORES 49, INC.
By:  

/s/ Laura A. Donald

  Name:   Laura A. Donald
  Title:   Vice President & Assistant Secretary

 

[Signature Page to Amendment No. 7]


SAFEWAY GIFT CARDS, LLC
SAFEWAY HOLDINGS I, LLC
GROCERYWORKS.COM, LLC
GROCERYWORKS.COM OPERATING COMPANY, LLC
SAFEWAY PHILTECH HOLDINGS, INC.
SAFEWAY STORES 58, INC.
SAFEWAY SOUTHERN CALIFORNIA, INC.
SAFEWAY STORES 28, INC.
THE VONS COMPANIES, INC.
SAFEWAY STORES 42, INC.
CONSOLIDATED PROCUREMENT SERVICES, INC.
SAFEWAY STORES 71, INC.
SAFEWAY STORES 72, INC.
SSI – AK HOLDINGS, INC.
CARR-GOTTSTEIN FOODS CO.
SAFEWAY HEALTH INC.
STRATEGIC GLOBAL SOURCING, LLC
By:  

/s/ Laura A. Donald

  Name:   Laura A. Donald
  Title:   Vice President & Assistant Secretary

 

[Signature Page to Amendment No. 7]


GENUARDI’S FAMILY MARKETS LP
By: GFM HOLDINGS LLC, its general partner
By:  

/s/ Laura A. Donald

  Name:   Laura A. Donald
  Title:   Vice President & Assistant Secretary

 

[Signature Page to Amendment No. 7]


RANDALL’S FOOD & DRUGS LP
By: RANDALL’S FOOD MARKETS, INC., its general partner
By:  

/s/ Laura A. Donald

  Name:   Laura A. Donald
  Title:   Vice President & Assistant Secretary

 

[Signature Page to Amendment No. 7]


RANDALL’S MANAGEMENT COMPANY, INC.
RANDALL’S BEVERAGE COMPANY, INC.
By:  

/s/ Gary Owen

  Name:   Gary Owen
  Title:   Vice President

 

[Signature Page to Amendment No. 7]


RANDALL’S INVESTMENTS, INC.
By:  

/s/ Elizabeth A. Harris

  Name:   Elizabeth A. Harris
  Title:   Vice President & Secretary

 

[Signature Page to Amendment No. 7]


DINEINFRESH, INC.
By:  

/s/ Laura A. Donald

  Name:   Laura A. Donald
  Title:   Group Vice President, Corporate Law & Assistant Secretary

 

[Signature Page to Amendment No. 7]


CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as Agent
By:  

/s/ William O’Daly

  Name:   William O’Daly
  Title:   Authorized Signatory
By:  

/s/ D. Andrew Maletta

  Name:   D. Andrew Maletta
  Title:   Authorized Signatory

 

[Signature Page to Amendment No. 7]


EXHIBIT A

JOINDER AGREEMENT

JOINDER AGREEMENT, dated as of [            ], 2018 (this “Agreement”), by and among [                    ] (the “Additional Lender”), ALBERTSON’S LLC, a Delaware limited liability company (the “Parent Borrower”), SAFEWAY INC., NEW ALBERTONS L.P., UNITED SUPERMARKETS, L.L.C., SPIRIT ACQUISITION HOLDINGS LLC (the “Co-Borrowers”, and together with the Parent Borrower, the “Borrowers” and each, a “Borrower”), ALBERTSONS COMPANIES, INC. (“Holdings”), and CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH (the “Administrative Agent”).

RECITALS:

WHEREAS, reference is hereby made to the Second Amended and Restated Term Loan Agreement, dated as of August 25, 2014 and effective as of January 30, 2015 (as amended by that certain Amendment No. 1, dated as of December 21, 2015, that certain Amendment No. 2, dated as of December 21, 2015, that certain Amendment No. 3 and Consent, dated as of February 11, 2016, that certain Amendment No. 4, dated as of June 22, 2016, that certain Amendment No. 5, dated as of December 23, 2016, that certain Amendment No. 6, dated as of June 27, 2017 and that certain Amendment No. 7, to be dated as of the date hereof (“Amendment No. 7”) and as the same may be further amended, supplemented, amended and restated or otherwise modified from time to time, the “Term Loan Agreement”), among Holdings, the Borrowers, the guarantors from time to time party thereto, each lender from time to time party thereto (collectively, the “Lenders” and individually, a “Lender”), Credit Suisse AG, Cayman Islands Branch, as administrative agent and the other agents named therein (capitalized terms used and not otherwise defined herein shall have the meanings assigned to them in the Term Loan Agreement);

WHEREAS, subject to the terms and conditions of the Term Loan Agreement, the Borrowers desire to establish Credit Agreement Refinancing Indebtedness (as defined in the Term Loan Agreement) that it shall designate as 2018 Term B-7 Loans with existing 2017-1 Term B-4 Lenders and/or Additional 2018 Term B-7 Lenders (each as defined in the Term Loan Agreement);

WHEREAS, subject to the terms and conditions of Amendment No. 7, the Additional Lender shall consent to Amendment No. 7, including the Proposed Amendments (as defined in Amendment No. 7) therein; and

WHEREAS, subject to the terms and conditions of the Term Loan Agreement, the Additional Lender shall become a Lender (as defined in the Term Loan Agreement) pursuant a joinder agreement;

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

The Additional Lender hereby agrees to provide the Additional 2018 Term B-7 Commitment (as defined in the Term Loan Agreement) set forth on its signature page hereto pursuant to and in accordance with Section 2.1(k) of the Term Loan Agreement. The Additional 2018 Term B-7 Commitments provided pursuant to this Agreement shall be subject to all of the terms and conditions in the Term Loan Agreement and shall be entitled to all the benefits afforded by the Term Loan Agreement and the other Financing Agreements (as defined in the Term Loan Agreement) and shall, without limiting the foregoing, benefit equally and ratably from the Guarantees (as defined in the Term Loan Agreement) and security interests created by the Collateral Documents (as defined in the Term Loan Agreement).


The Additional Lender, Holdings, the Borrowers and the Administrative Agent acknowledge and agree that the Additional 2018 Term B-7 Commitments provided pursuant to this Agreement shall constitute 2018 Term B-7 Commitments (as defined in the Term Loan Agreement) for all purposes of the Term Loan Agreement and the other applicable Financing Agreements. Each Additional Lender hereby agrees to make a 2018 Term B-7 Loan to the Borrowers in an amount equal to its Additional 2018 Term B-7 Commitment on the Amendment No. 7 Effective Date (as defined in Amendment No. 7) in accordance with Section 2.1(k) of the Term Loan Agreement.

The Additional Lender (i) confirms that it has received a copy of the Term Loan Agreement and the other Financing Agreements, together with copies of the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement; (ii) agrees that it will, independently and without reliance upon the Administrative Agent, the Amendment No. 7 Arrangers (as defined in Amendment No. 7) or any other Additional 2018 Term B-7 Lender or any other Lender or Agent Party (as defined in the Term Loan Agreement) 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 Term Loan Agreement; (iii) appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers and discretion under the Term Loan Agreement and the other Financing Agreements as are delegated to the Administrative Agent by the terms thereof, together with such powers and discretion as are reasonably incidental thereto; and (iv) agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Term Loan Agreement are required to be performed by it as a Lender.

Upon (i) the execution of a counterpart of this Agreement by the Additional Lender, the Administrative Agent, Holdings and the Borrowers and (ii) the delivery to the Administrative Agent of a fully executed counterpart (including by way of telecopy or other electronic transmission) hereof, the undersigned Additional Lenders shall become an Additional 2018 Term B-7 Lender and a Lender under the Term Loan Agreement and shall have the Additional 2018 Term B-7 Commitment set forth on its signature page hereto, effective as of the Amendment No. 7 Effective Date.

The Additional Lender shall deliver to the Administrative Agent such forms, certificates or other evidence with respect to United States federal income tax withholding matters as such Additional Lender may be required to deliver to the Administrative Agent pursuant to Section 6.1 of the Term Loan Agreement.

The Additional Lender hereto agrees (and provides a continuing consent) to the Proposed Amendments. Each of the parties hereto acknowledge and agree that the Additional Lender and its assignees, if any, shall be deemed to have provided such continuing consent under Amendment No. 7.

This Agreement may not be amended, modified or waived except by an instrument or instruments in writing signed and delivered on behalf of each of the parties hereto.

This Agreement shall constitute a Financing Agreement for all purposes under the Term Loan Agreement and each of the other Financing Agreements.

This Agreement, the Term Loan Agreement and the other Financing Agreements constitute the entire agreement among the parties with respect to the subject matter hereof and thereof and supersede all other prior agreements and understandings, both written and verbal, among the parties or any of them with respect to the subject matter hereof.


THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as would be enforceable.

This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement.

[remainder of page intentionally left blank]


IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute and deliver this Agreement as of the date first written above.

 

[                     ]

By:  

                                                              

  Name:
  Title:

[If a second signature is necessary:

By:  

 

  Name:
  Title:]

Additional 2018 Term B-7 Commitments:

$                                                                                  

 

[Signature Page to Joinder to Amendment No. 7]


ALBERTSONS COMPANIES, INC.

By:  

 

  Name:
  Title:

ALBERTSON’S LLC

By:  

 

  Name:
  Title:

SAFEWAY INC.

By:  

 

  Name:
  Title:

NEW ALBERTSONS L.P.

By:  

 

  Name:
 

Title:

SPIRIT ACQUISITION HOLDINGS LLC

By:  

                                          

 

Name:

 

Title:

UNITED SUPERMARKETS, L.L.C.

By:  

 

 

Name:

 

Title:

 

[Signature Page to Joinder to Amendment No. 7]


Accepted:

 

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
as Administrative Agent

By:  

                                          

  Name:
  Title:
By:  

 

  Name:
  Title:

 

[Signature Page to Joinder to Amendment No. 7]


EXHIBIT B

CONSENT TO AMENDMENT NO. 7

CONSENT TO AMENDMENT NO. 7 (this “Consent”) to Amendment No. 7 (the “Amendment”) to that certain Second Amended and Restated Term Loan Agreement, dated as of August 25, 2014 and effective as of January 30, 2015 (as amended by that certain Amendment No. 1, dated as of December 21, 2015, that certain Amendment No. 2, dated as of December 21, 2015, that certain Amendment No. 3 and Consent, dated as of February 11, 2016, that certain Amendment No. 4, dated as of June 22, 2016, that certain Amendment No. 5, dated as of December 23, 2016, that certain Amendment No. 6, dated as of June 27, 2017 and as the same may be further amended, supplemented, amended and restated or otherwise modified from time to time, the “Term Loan Agreement”), among ALBERTSON’S COMPANIES, INC. (“Holdings”), ALBERTSON’S LLC, a Delaware limited liability company (“Parent Borrower”), the co-borrowers party thereto (together with Parent Borrower, the “Borrowers” and each, a “Borrower”), the guarantors party thereto, the parties thereto from time to time as lenders (each individually, a “Lender” and collectively, “Lenders”) and CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, in its capacity as administrative agent and collateral agent (in such capacities, the “Agent”) and the other agents parties thereto. Capitalized terms used and not otherwise defined herein shall have the meanings assigned to them in the Term Loan Agreement or the Amendment, as applicable.

2017-1 Term B-4 Lenders

The undersigned Lender hereby irrevocably and unconditionally (i) approves the Amendment, (ii) provides a continuing consent to the Proposed Amendments (as defined in the Amendment) and acknowledges and agrees that such continuing consent shall be binding upon any of its assignees and (iii) consents as follows:

2017-1 Term B-4 Cashless Settlement Option

 

 

to convert 100% of the aggregate outstanding principal amount of the 2017-1 Term B-4 Loans (as defined in the Term Loan Agreement) held by such Lender (or such lesser amount as notified to such Lender in writing by the Agent) into Replacement 2018 Term B-7 Loans (as defined in the Amendment) in a like principal amount. By selecting this option, the undersigned Lender agrees to (i) the terms of the 2018 Term B-7 Cashless Roll Letter (as defined in the Amendment) and (ii) be deemed a party to such 2018 Term B-7 Cashless Roll Letter and be bound thereby for all purposes hereof and thereof.

2017-1 Term B-4 Assignment Settlement Option

 

 

to have 100% of the outstanding principal amount of the 2017-1 Term B-4 Loans held by such Lender repaid on the Amendment No. 7 Effective Date (as defined in the Amendment) and to purchase by assignment a like principal amount of Replacement 2018 Term B-7 Loans committed to separately by the undersigned (or such lesser amount as notified to such Lender in writing by the Agent).


IN WITNESS WHEREOF, the undersigned has caused this Consent to be executed and delivered by a duly authorized officer.

 

                                                                                  ,
(Name of Institution)
By:  

                                                              

  Name:
  Title:
[If a second signature is necessary:
By:  

 

  Name:
  Title:]

[Signature Page to Consent to Amendment No. 7]


EXHIBIT C

[See attached]


EXHIBIT C

SECOND AMENDED AND RESTATED

TERM LOAN AGREEMENT

by and among

ALBERTSONS COMPANIES, LLCINC.,

as Holdings,

ALBERTSON’S LLC,

as Parent Borrower,

SAFEWAY INC., NEW ALBERTSONS, INCALBERTSONS L.P., UNITED SUPERMARKETS, L.L.C. and SPIRIT ACQUISITION HOLDINGS LLC

as Co-Borrowers,

THE OTHER CO-BORROWERS FROM TIME TO TIME PARTY HERETO

THE GUARANTORS NAMED HEREIN

THE LENDERS FROM TIME TO TIME PARTY HERETO

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH

as Agent

and

CREDIT SUISSE SECURITIES (USA) LLC

CITIGROUP GLOBAL MARKETS INC.

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

MORGAN STANLEY SENIOR FUNDING, INC.

BARCLAYS BANK PLC

and

DEUTSCHE BANK SECURITIES INC.

as Joint Lead Arrangers and Joint Bookrunners

and

PNC CAPITAL MARKETS LLC

and

SUNTRUST ROBINSON HUMPHREY, INC.

as Co-Documentation Agents

Dated: August 25, 2014

Effective: January 30, 2015

As Amended on December 21, 2015

As Amended on February 11, 2016

As Amended on June 22, 2016

As Amended on December 23, 2016

As Amended on June 27, 2017


As Amended on November 16, 2018

Deal CUSIP # 01310TAA7

Term B-2 Loan CUSIP # 01310TAC3

Term B-3 Loan CUSIP # 01310TAG4

Term B-4 Loan CUSIP # 01310TAH2

Term B-5 Loan CUSIP # 01310TAK5

2016-1 Term B-4 Loan CUSIP # 01310TAN9

2016-1 Term B-5 Loan CUSIP # 01310TAM1

Term B-6 Loan CUSIP # 01310TAL3

2016-2 Term B-4 Loan CUSIP # 01310TAP4

2016-2 Term B-5 Loan CUSIP # 01310TAQ2

2016-1 Term B-6 Loan CUSIP # 01310TAR0

2017-1 Term B-4 Loan CUSIP # 01310TAS8

2017-1 Term B-5 Loan CUSIP # 01310TAT6

2017-1 Term B-6 Loan CUSIP # 01310TAU3

2018 Term B-7 Loan CUSIP # 01310TAV1


TABLE OF CONTENTS

 

         Page  

SECTION 1.

 

DEFINITIONS

     2  

SECTION 2.

 

CREDIT FACILITIES

     7274  

2.1

 

Loans

     7274  

2.2

 

Repayment of Loans

     7982  

2.3

 

Prepayments

     8183  

2.4

 

Termination or Reduction of Commitments

     8790  

2.5

 

Evidence of Indebtedness

     8790  

2.6

 

Payments Generally

     8891  

2.7

 

Sharing of Payments

     8992  

2.8

 

Incremental Credit Extensions

     9093  

2.9

 

Refinancing Amendments

     9194  

2.10

 

Extension of Term Loans

     9295  

SECTION 3.

 

INTEREST AND FEES

     9497  

3.1

 

Interest

     9497  

3.2

 

Fees

     9598  

3.3

 

Changes in Laws and Increased Costs of Loans

     9598  

SECTION 4.

 

CONDITIONS PRECEDENT

     97100  

4.1

 

[Reserved]

     97100  

4.2

 

Conditions Precedent to All Loans

     97100  

4.3

 

Conditions to the Escrow Release Date

     98101  

SECTION 5.

 

[RESERVED]

     100103  

SECTION 6.

 

TAXES

     100103  

6.1

 

Taxes

     100103  

6.2

 

Replacement of Lenders under Certain Circumstances

     103106  

SECTION 7.

 

[RESERVED]

     103106  

SECTION 8.

 

REPRESENTATIONS AND WARRANTIES

     103106  

8.1

 

Existence, Qualification and Power

     104106  

8.2

 

Authorization; No Contravention

     104107  

8.3

 

Financial Statements

     104107  

8.4

 

Ownership of Property; Liens

     105108  

8.5

 

Taxes

     105108  

8.6

 

Litigation

     106108  

8.7

 

Compliance with Laws

     106109  

8.8

 

Environmental Compliance

     106109  

8.9

 

ERISA Compliance

     107109  

8.10

 

Governmental Authorization; Other Consents

     107110  

8.11

 

Intellectual Property; Licenses, Etc.

     107110  

8.12

 

Subsidiaries; Equity Interests

     107110  

8.13

 

Labor Matters

     108111  

8.14

 

Anti-Money Laundering

     108111  

8.15

 

Material Contracts

     109111  

 

-i-


         Page  

 

8.16

 

 

Solvency

  

 

 

 

109112

 

 

8.17

 

Investment Company Act; Margin Regulations

     109112  

8.18

 

Disclosure

     109112  

8.19

 

FCPA

     109112  

8.20

 

Office of Foreign Assets Control

     110112  

8.21

 

USA PATRIOT Act Notice

     110113  

8.22

 

Use of Proceeds

     110113  

8.23

 

Deposit Accounts; Credit Card Arrangements

     110113  

8.24

 

Binding Effect

     110113  

8.25

 

No Material Adverse Effect

     111113  

8.26

 

No Default

     111114  

8.27

 

Collateral Documents

     111114  

8.28

 

Pharmaceutical Laws

     112115  

8.29

 

HIPAA Compliance

     112115  

8.30

 

Compliance With Health Care Laws

     112115  

8.31

 

Notices from Farm Products Sellers, etc.

     1131156  

SECTION 9.

 

AFFIRMATIVE COVENANTS

     114117  

9.1

 

Preservation of Existence

     114117  

9.2

 

Compliance with Laws

     114117  

9.3

 

Payment of Obligations

     114117  

9.4

 

Insurance

     114117  

9.5

 

Financial Statements

     115118  

9.6

 

Certificates; Other Information

     116119  

9.7

 

Notices

     118121  

9.8

 

Further Assurances

     118121  

9.9

 

Additional Loan Parties

     119123  

9.10

 

Maintenance of Ratings

     119123  

9.11

 

Use of Proceeds

     119123  

9.12

 

Maintenance of Properties

     120123  

9.13

 

Environmental Laws and Insurance

     120123  

9.14

 

Books and Records; Accountants

     120124  

9.15

 

Inspection Rights

     121125  

9.16

 

Information Regarding the Collateral

     121125  

9.17

 

[Reserved]

     121125  

9.18

 

ERISA

     121125  

9.19

 

Quarterly Lender Meetings

     121125  

9.20

 

[Reserved]

     121125  

9.21

 

Post-Closing Requirements

     121125  

SECTION 10.

 

NEGATIVE COVENANTS

     121125  

10.1

 

Liens

     122126  

10.2

 

Investments

     126130  

10.3

 

Indebtedness; Disqualified Stock

     130134  

10.4

 

Fundamental Changes

     133137  

10.5

 

Dispositions

     134138  

10.6

 

Restricted Payments

     137141  

10.7

 

Change in Nature of Business

     140145  

10.8

 

Transactions with Affiliates

     141145  

10.9

 

Burdensome Agreements

     146150  

10.10

 

Accounting Changes

     146150  

 

-ii-


         Page  

 

10.11

 

 

Prepayments Etc., of Indebtedness

  

 

 

 

146150

 

 

10.12

 

Permitted Activities

     148152  

10.13

 

Amendments of Organization Documents

     148152  

10.14

 

Designation of Subsidiaries

     148152  

SECTION 11.

 

EVENTS OF DEFAULT AND REMEDIES

     149153  

11.1

 

Events of Default

     149153  

11.2

 

Remedies

     150154  

11.3

 

Application of Proceeds

     151155  

SECTION 12.

 

JURY TRIAL WAIVER; OTHER WAIVERS AND CONSENTS; GOVERNING LAW

     152156  

12.1

 

Governing Law; Choice of Forum; Service of Process; Jury Trial Waiver

     152156  

12.2

 

Waiver of Notices

     153157  

12.3

 

Amendments and Waivers

     153157  

12.4

 

Waiver of Counterclaims

     156160  

12.5

 

Indemnification

     156160  

12.6

 

Costs and Expenses

     157161  

SECTION 13.

 

THE AGENT

     158162  

13.1

 

Appointment and Authority

     158162  

13.2

 

Rights as a Lender

     158162  

13.3

 

Exculpatory Provisions

     158162  

13.4

 

Reliance by Agent

     159164  

13.5

 

Delegation of Duties

     159164  

13.6

 

Resignation of Agent

     160164  

13.7

 

Non-Reliance on Agent and Other Lenders

     160165  

13.8

 

No Other Duties, Etc.

     160165  

13.9

 

Agent May File Proofs of Claim

     160165  

13.10

 

Collateral and Guaranty Matters

     161165  

13.11

 

Withholding Tax Indemnity

     162167  

13.12

 

Notice to Agent

     167  

13.13

 

Intercreditor Agreements

     167  

SECTION 14.

 

TERM OF AGREEMENT; MISCELLANEOUS

     163167  

14.1

 

Term

     163167  

14.2

 

Interpretative Provisions

     163168  

14.3

 

Notices

     164169  

14.4

 

Partial Invalidity

     166171  

14.5

 

Confidentiality

     166171  

14.6

 

Successors

     168173  

14.7

 

Assignments; Participations

     168173  

14.8

 

Entire Agreement

     173178  

14.9

 

USA PATRIOT Act

     173178  

14.10

 

Counterparts, Etc.

     174179  

14.11

 

Payments Set Aside

     174179  

14.12

 

Guarantee

     174179  

14.13

 

Pro Forma Calculations

     180185  

14.14

 

Setoff

     182187  

14.15

 

No Waiver; Cumulative Remedies

     182187  

14.16

 

Interest Rate Limitation

     182187  

 

-iii-


         Page  

 

14.17

 

 

Survival of Representations and Warranties

  

 

 

 

183188

 

 

14.18

 

No Advisory or Fiduciary Responsibility

     183188  

14.19

 

Binding Effect

     183188  

14.20

 

Amendment and Restatement

     183188  

14.21

 

Acknowledgement and Consent to Bail-In of EEA Financial Institutions

     184189  

 

-iv-


INDEX

TO

EXHIBITS AND SCHEDULES

 

Exhibit A    Form of Assignment and Acceptance
Exhibit B    Form of Compliance Certificate
Exhibit C    Form of Committed Loan Notice
Exhibit D    Form of Term Note
Exhibit E    Form of Security Agreement
Exhibit F    [Reserved]
Exhibit G    [Reserved]
Exhibit H-1    Form of United States Tax Compliance Certificate For Foreign Lenders That Are Not Treated As Partnerships For U.S. Federal Income Tax Purposes
Exhibit H-2    Form of United States Tax Compliance Certificate For Foreign Lenders That Are Treated As Partnerships For U.S. Federal Income Tax Purposes
Exhibit H-3    Form of United States Tax Compliance Certificate For Foreign Participants That Are Not Treated As Partnerships For U.S. Federal Income Tax Purposes
Exhibit H-4    Form of United States Tax Compliance Certificate For Foreign Participants That Are Treated As Partnerships For U.S. Federal Income Tax Purposes
Exhibit I    Form of Discounted Prepayment Option Notice
Exhibit J    Form of Lender Participation Notice
Exhibit K    Form of Discounted Voluntary Prepayment Notice
Exhibit L    Form of Affiliated Lender Assignment and Acceptance
Exhibit M    [Reserved]
Exhibit N-1    Form of ABL Intercreditor Agreement
Exhibit N-2    Form of Term Loan Intercreditor Agreement
Exhibit O    Form of Solvency Certificate
Exhibit P    Form of Escrow Agreement
Schedule I    Subsidiary Guarantors
Schedule 1.01    Commitments
Schedule 1.02    Accounting Period
Schedule 1.03    Real Estate Subsidiaries
Schedule 1.04    Unrestricted Subsidiaries
Schedule 1.05    Debt Refinancing
Schedule 8.1    Loan Parties
Schedule 8.4(b)(1)    Owned Real Estate
Schedule 8.4(b)(2)    Leased Real Estate
Schedule 8.6    Litigation
Schedule 8.8    Environmental Matters
Schedule 8.11    Intellectual Property
Schedule 8.12    Subsidiaries; Other Equity Investments
Schedule 8.13    Labor Matters
Schedule 8.15    Material Contracts
Schedule 8.23(a)    Deposit Accounts
Schedule 8.23(b)    Credit Card Agreements
Schedule 8.26    Defaults
Schedule 8.30    Participation Agreements
Schedule 9.6    Financial Reporting
Schedule 9.21    Post-Closing Matters
Schedule 10.1    Existing Liens

 

-v-


Schedule 10.2   

Existing Investments

Schedule 10.3   

Existing Indebtedness

Schedule 10.8   

Transactions with Affiliates

Schedule 10.9   

Certain Contractual Obligations

Schedule 10.14   

Designation of Unrestricted Subsidiaries

 

-vi-


SECOND AMENDED AND RESTATED TERM LOAN AGREEMENT

This Second Amended and Restated Term Loan Agreement dated as of August 25, 2014 and effective as of January 30, 2015 (as amended, amended and restated, modified or supplemented from time to time, this “Agreement”) is entered into by and among ALBERTSONS LLC, a Delaware limited liability company (“Parent Borrower”), ALBERTSONS COMPANIES, LLCINC. (“Holdings”), the parties hereto from time to time as Co-Borrowers, the other Guarantors party hereto, the parties hereto from time to time as lenders, whether by execution of this Agreement or an Assignment and Acceptance (each individually, a “Lender” and collectively, “Lenders” as hereinafter further defined) and CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, in its capacity as administrative agent and collateral agent (in such capacity, “Agent” as hereinafter further defined).

PRELIMINARY STATEMENTS

WHEREAS, the Parent Borrower, Holdings, certain of the Lenders and Citibank, N.A., as agent for such lenders, are parties to the Existing Debt Facility (defined below) pursuant to which certain term loans have been made available to the Parent Borrower and the Parent Borrower has requested to amend and restate the Existing Debt Facility in its entirety;

WHEREAS, Parent Borrower and Guarantors have requested that Agent and Lenders enter into financing arrangements with Parent Borrower pursuant to which Lenders may make loans to Parent Borrower;

WHEREAS, each Lender is willing to agree severally and not jointly to make such loans to Parent Borrower on a pro rata basis according to such Lender’s Commitment as defined below on the terms and conditions set forth herein and in the other Financing Agreements and Agent is willing to act as agent for Lenders on the terms and conditions set forth herein;

WHEREAS, AB Acquisition, LLC, a Delaware limited liability company (“AB LLC”), Parent Borrower, Holdings, Saturn Acquisition Merger Sub, Inc., a newly formed, wholly owned subsidiary of Holdings (“Merger Sub”), and Safeway Inc., a Delaware corporation (“Safeway”) are parties to the Agreement and Plan of Merger dated as of March 6, 2014 (the “Safeway Merger Agreement”) pursuant to which Holdings will, directly or indirectly, acquire Safeway and its Subsidiaries (the “Safeway Acquisition”);

WHEREAS, Safeway will enter into the Membership Interest Purchase Agreement contemporaneously with the closing of the Safeway Acquisition, by and between NAI and Safeway (the “Eastern Division Sale Agreement”), pursuant to which Safeway will sell the assets, operations and real estate relating to the stores constituting the Eastern Division of Safeway (including the Equity Interests of NAI Saturn Eastern LLC, the Subsidiary of Safeway that owns such assets, the “Eastern Division Assets”) to NAI (the “Eastern Division Sale”).

WHEREAS, in connection therewith, it is intended that (a) the Sponsor will make the Equity Contribution; (b) the Parent Borrower and certain of its Affiliates will obtain Commitments in an initial aggregate principal amount of $6,000,000,000 pursuant to this Agreement; (c) the Parent Borrower and certain of its Affiliates will obtain an initial aggregate principal amount of $3,000,000,000 of loans pursuant to the ABL Credit Agreement (the “ABL Loans”); (d) Holdings and Merger Sub (to be merged with and into Safeway) will issue $1,625,000,000 of Senior Secured Notes due 2022 (the “Senior Secured Notes”) and (e) the proceeds of (i) the Equity Contribution, (ii) the proceeds of the Borrowings released from the Escrow Account, (iii) the ABL Loans, (iv) the Senior Secured Notes and (v) the Eastern Division Sale will be used to finance the Transactions.

 

-1-


WHEREAS, the Parent Borrower and the Escrow Agent entered into an Escrow Agreement, pursuant to which the proceeds of the Term B-3 Loans and the Term B-4 Loans were deposited in the Escrow Account on the Lender Funding Dates (as defined in Amendment No. 5);

NOW, THEREFORE, in consideration of the mutual conditions and agreements set forth herein, and for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

SECTION 1. DEFINITIONS

For purposes of this Agreement the following terms shall have the respective meanings given to them below:

2016-1 Term B-4 Borrowing” shall mean a borrowing consisting of 2016-1 Term B-4 Loans of the same Type and, in the case of Eurodollar Rate Loans, have the same Interest Period made by each of the 2016-1 Term B-4 Lenders pursuant to Section 2.1(b).

2016-1 Term B-4 Commitment” shall mean any Exchange 2016-1 Term B-4 Commitment or Additional 2016-1 Term B-4 Commitment, as such commitment may be (a) reduced from time to time pursuant to Section 2.4 and (b) reduced or increased from time to time pursuant to (i) assignments by or to such Lender pursuant to an Assignment and Acceptance, (ii) an Incremental Amendment or (iii) an Extension Election.

2016-1 Term B-4 Lenders” shall mean, collectively, the Term Lenders with 2016-1 Term B-4 Commitments on the Amendment No. 1 (B-5) Effective Date.

2016-1 Term B-4 Loan” shall mean any Exchange 2016-1 Term B-4 Commitment or Additional 2016-1 Term B-4 Commitment.

2016-1 Term B-4 Maturity Date” shall mean August 25, 2021 or, if such date is not a Business Day, the first Business Day thereafter.

2016-1 Term B-4 Repricing Event” shall mean (i) any prepayment or repayment of 2016-1 Term B-4 Loans with the proceeds of, or any conversion of such 2016-1 Term B-4 Loans into, any new or replacement tranche of any new or additional term loans under the this Agreement that is broadly marketed or syndicated to banks and other institutional investors in similar financings (excluding indebtedness incurred in connection with a change of control or acquisition (or similar investment) not otherwise permitted under this Agreement) and bearing interest at an effective interest rate less than the effective “yield” applicable to the 2016-1 Term B-4 Loans then in effect, and excluding for the avoidance of doubt, any prepayment or repayment of the 2016-1 Term B-4 Loans made with cash on hand or the proceeds of any revolving loans under the ABL Facility and (ii) any amendment to this Agreement that reduces the effective applicable margin for the 2016-1 Term B-4 Loans.

2016-1 Term B-5 Borrowing” shall mean a borrowing consisting of 2016-1 Term B-5 Loans of the same Type and, in the case of Eurodollar Rate Loans, have the same Interest Period made by each of the 2016-1 Term B-5 Lenders pursuant to Section 2.1(c).

2016-1 Term B-5 Commitment” shall means any Exchange 2016-1 Term B-5 Commitment or Additional 2016-1 Term B-5 Commitment, as such commitment may be (a) reduced from time to time pursuant to Section 2.4 and (b) reduced or increased from time to time pursuant to (i) assignments by or

 

-2-


to such Lender pursuant to an Assignment and Acceptance, (ii) an Incremental Amendment or (iii) an Extension Election.

2016-1 Term B-5 Lenders” shall mean, collectively, the Term Lenders with 2016-1 Term B-5 Commitments on the Amendment No. 1 (B-5) Effective Date.

2016-1 Term B-5 Loan” shall mean any Exchange 2016-1 Term B-5 Commitment or Additional 2016-1 Term B-5 Commitment.

2016-1 Term B-5 Maturity Date” shall mean December 21, 2022 or, if such date is not a Business Day, the first Business Day thereafter.

2016-1 Term B-5 Repricing Event” shall mean (i) any prepayment or repayment of 2016-1 Term B-5 Loans with the proceeds of, or any conversion of such 2016-1 Term B-5 Loans into, any new or replacement tranche of any new or additional term loans under the this Agreement that is broadly marketed or syndicated to banks and other institutional investors in similar financings (excluding indebtedness incurred in connection with a change of control or acquisition (or similar investment) not otherwise permitted under this Agreement) and bearing interest at an effective interest rate less than the effective “yield” applicable to the 2016-1 Term B-5 Loans then in effect, and excluding for the avoidance of doubt, any prepayment or repayment of the 2016-1 Term B-5 Loans made with cash on hand or the proceeds of any revolving loans under the ABL Facility and (ii) any amendment to this Agreement that reduces the effective applicable margin for the 2016-1 Term B-5 Loans.

2016-1 Term B-6 Borrowing” shall mean a borrowing consisting of 2016-1 Term B-6 Loans of the same Type and, in the case of Eurodollar Rate Loans, have the same Interest Period made by each of the 2016-1 Term B-6 Lenders pursuant to Section 2.1(g).

2016-1 Term B-6 Commitment” shall means any Exchange 2016-1 Term B-6 Commitment or Additional 2016-1 Term B-6 Commitment, as such commitment may be (a) reduced from time to time pursuant to Section 2.4 and (b) reduced or increased from time to time pursuant to (i) assignments by or to such Lender pursuant to an Assignment and Acceptance, (ii) an Incremental Amendment or (iii) an Extension Election.

2016-1 Term B-6 Lenders” shall mean, collectively, the Term Lenders with 2016-1 Term B-6 Commitments on the Amendment No. 5 (2016-2) Effective Date.

2016-1 Term B-6 Loan” shall mean any Exchange 2016-1 Term B-6 Commitment or Additional 2016-1 Term B-6 Commitment.

2016-1 Term B-6 Maturity Date” shall mean June 22, 2023, or if such date is not a Business Day, the first Business Day thereafter.

2016-1 Term B-6 Repricing Event” shall mean (i) any prepayment or repayment of 2016-1 Term B-6 Loans with the proceeds of, or any conversion of such 2016-1 Term B-6 Loans into, any new or replacement tranche of any new or additional term loans under the this Agreement that is broadly marketed or syndicated to banks and other institutional investors in similar financings and bearing interest at an effective interest rate less than the effective “yield” applicable to the 2016-1 Term B-6 Loans then in effect, and excluding for the avoidance of doubt, any prepayment or repayment of the 2016-1 Term B-6 Loans made with cash on hand or the proceeds of any revolving loans under the ABL Facility and (ii) any amendment to this Agreement that reduces the effective applicable margin for the

 

-3-


2016-1 Term B-6 Loans (in each case in clauses (i) and (ii) other than in connection with a Change of Control, an initial public offering, or any acquisition or investment not otherwise permitted hereby).

2016-2 Term B-4 Borrowing” shall mean a borrowing consisting of 2016-2 Term B-4 Loans of the same Type and, in the case of Eurodollar Rate Loans, have the same Interest Period made by each of the 2016-2 Term B-4 Lenders pursuant to Section 2.1(e).

2016-2 Term B-4 Commitment” shall mean any Exchange 2016-2 Term B-4 Commitment or Additional 2016-2 Term B-4 Commitment, as such commitment may be (a) reduced from time to time pursuant to Section 2.4 and (b) reduced or increased from time to time pursuant to (i) assignments by or to such Lender pursuant to an Assignment and Acceptance, (ii) an Incremental Amendment or (iii) an Extension Election.

2016-2 Term B-4 Lenders” shall mean, collectively, the Term Lenders with 2016-2 Term B-4 Commitments on the Amendment No. 5 (2016-2) Effective Date.

2016-2 Term B-4 Loan” shall mean any Exchange 2016-2 Term B-4 Commitment or Additional 2016-2 Term B-4 Commitment.

2016-2 Term B-4 Maturity Date” shall mean August 25, 2021 or, if such date is not a Business Day, the first Business Day thereafter.

2016-2 Term B-4 Repricing Event” shall mean (i) any prepayment or repayment of 2016-2 Term B-4 Loans with the proceeds of, or any conversion of such 2016-2 Term B-4 Loans into, any new or replacement tranche of any new or additional term loans under the this Agreement that is broadly marketed or syndicated to banks and other institutional investors in similar financings and bearing interest at an effective interest rate less than the effective “yield” applicable to the 2016-2 Term B-4 Loans then in effect, and excluding for the avoidance of doubt, any prepayment or repayment of the 2016-2 Term B-4 Loans made with cash on hand or the proceeds of any revolving loans under the ABL Facility and (ii) any amendment to this Agreement that reduces the effective applicable margin for the 2016-2 Term B-4 Loans (in each case in clauses (i) and (ii) other than in connection with a Change of Control, an initial public offering, or any acquisition or investment not otherwise permitted hereby).

2016-2 Term B-5 Borrowing” shall mean a borrowing consisting of 2016-2 Term B-5 Loans of the same Type and, in the case of Eurodollar Rate Loans, have the same Interest Period made by each of the 2016-2 Term B-5 Lenders pursuant to Section 2.1(f).

2016-2 Term B-5 Commitment” shall means any Exchange 2016-2 Term B-5 Commitment or Additional 2016-2 Term B-5 Commitment, as such commitment may be (a) reduced from time to time pursuant to Section 2.4 and (b) reduced or increased from time to time pursuant to (i) assignments by or to such Lender pursuant to an Assignment and Acceptance, (ii) an Incremental Amendment or (iii) an Extension Election.

2016-2 Term B-5 Lenders” shall mean, collectively, the Term Lenders with 2016-2 Term B-5 Commitments on the Amendment No. 5 (2016-2) Effective Date.

2016-2 Term B-5 Loan” shall mean any Exchange 2016-2 Term B-5 Commitment or Additional 2016-2 Term B-5 Commitment.

2016-2 Term B-5 Maturity Date” shall mean December 21, 2022 or, if such date is not a Business Day, the first Business Day thereafter.

 

-4-


2016-2 Term B-5 Repricing Event” shall mean (i) any prepayment or repayment of 2016-2 Term B-5 Loans with the proceeds of, or any conversion of such 2016-2 Term B-5 Loans into, any new or replacement tranche of any new or additional term loans under the this Agreement that is broadly marketed or syndicated to banks and other institutional investors in similar financings and bearing interest at an effective interest rate less than the effective “yield” applicable to the 2016-2 Term B-5 Loans then in effect, and excluding for the avoidance of doubt, any prepayment or repayment of the 2016-2 Term B-5 Loans made with cash on hand or the proceeds of any revolving loans under the ABL Facility and (ii) any amendment to this Agreement that reduces the effective applicable margin for the 2016-2 Term B-5 Loans (in each case in clauses (i) and (ii) other than in connection with a Change of Control, an initial public offering, or any acquisition or investment not otherwise permitted hereby).

2017-1 Term B-4 Borrowing” shall mean a borrowing consisting of 2017-1 Term B-4 Loans of the same Type and, in the case of Eurodollar Rate Loans, have the same Interest Period made by each of the 2017-1 Term B-4 Lenders pursuant to Section 2.1(h).

2017-1 Term B-4 Commitment” shall means any Exchange 2017-1 Term B-4 Commitment or Additional 2017-1 Term B-4 Commitment, as such commitment may be (a) reduced from time to time pursuant to Section 2.4 and (b) reduced or increased from time to time pursuant to (i) assignments by or to such Lender pursuant to an Assignment and Acceptance, (ii) an Incremental Amendment or (iii) an Extension Election.

2017-1 Term B-4 Lenders” shall mean, collectively, the Term Lenders with 2017-1 Term B-4 Commitments on the Amendment No. 6 (2017-1) Effective Date.

2017-1 Term B-4 Loan” shall mean any Exchange 2017-1 Term B-4 Commitment or Additional 2017-1 Term B-4 Commitment.

2017-1 Term B-4 Maturity Date” shall mean August 25, 2021 or, if such date is not a Business Day, the first Business Day thereafter.

2017-1 Term B-4 Repricing Event” shall mean, other than in connection with a change of control or acquisition (or similar investment) not otherwise permitted under this Agreement, (i) any prepayment or repayment of 2017-1 Term B-4 Loans with the proceeds of, or any conversion of such 2017-1 Term B-4 Loans into, any new or replacement tranche of any new or additional term loans under this Agreement that is broadly marketed or syndicated to banks and other institutional investors in similar financings and bearing interest at an effective interest rate less than the effective “yield” applicable to the 2017-1 Term B-4 Loans then in effect, and excluding for the avoidance of doubt, any prepayment or repayment of the 2017-1 Term B-4 Loans made with cash on hand, the proceeds of any revolving loans under the ABL Facility or any loans incurred or assumed (or to be assumed) by one or more non-Guarantors and (ii) any amendment to this Agreement that reduces the effective applicable margin for the 2017-1 Term B-4 Loans.

2017-1 Term B-5 Borrowing” shall mean a borrowing consisting of 2017-1 Term B-5 Loans of the same Type and, in the case of Eurodollar Rate Loans, have the same Interest Period made by each of the 2017-1 Term B-5 Lenders pursuant to Section 2.1(i).

2017-1 Term B-5 Commitment” shall means any Exchange 2017-1 Term B-5 Commitment or Additional 2017-1 Term B-5 Commitment, as such commitment may be (a) reduced from time to time pursuant to Section 2.4 and (b) reduced or increased from time to time pursuant to (i) assignments by or to such Lender pursuant to an Assignment and Acceptance, (ii) an Incremental Amendment or (iii) an Extension Election.

 

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2017-1 Term B-5 Lenders” shall mean, collectively, the Term Lenders with 2017-1 Term B-5 Commitments on the Amendment No. 6 (2017-1) Effective Date.

2017-1 Term B-5 Loan” shall mean any Exchange 2017-1 Term B-5 Commitment or Additional 2017-1 Term B-5 Commitment.

2017-1 Term B-5 Maturity Date” shall mean December 21, 2022 or, if such date is not a Business Day, the first Business Day thereafter.

2017-1 Term B-5 Repricing Event” shall mean, other than in connection with a change of control or acquisition (or similar investment) not otherwise permitted under this Agreement (i) any prepayment or repayment of 2017-1 Term B-5 Loans with the proceeds of, or any conversion of such 2017-1 Term B-5 Loans into, any new or replacement tranche of any new or additional term loans under the this Agreement that is broadly marketed or syndicated to banks and other institutional investors in similar financings and bearing interest at an effective interest rate less than the effective “yield” applicable to the 2017-1 Term B-5 Loans then in effect, and excluding for the avoidance of doubt, any prepayment or repayment of the 2017-1 Term B-5 Loans made with cash on hand, the proceeds of any revolving loans under the ABL Facility or any loans incurred or assumed (or to be assumed) by one or more non-Guarantors and (ii) any amendment to this Agreement that reduces the effective applicable margin for the 2017-1 Term B-5 Loans.

2017-1 Term B-6 Borrowing” shall mean a borrowing consisting of 2017-1 Term B-6 Loans of the same Type and, in the case of Eurodollar Rate Loans, have the same Interest Period made by each of the 2017-1 Term B-6 Lenders pursuant to Section 2.1(j).

2017-1 Term B-6 Commitment” shall means any Exchange 2017-1 Term B-6 Commitment or Additional 2017-1 Term B-6 Commitment, as such commitment may be (a) reduced from time to time pursuant to Section 2.4 and (b) reduced or increased from time to time pursuant to (i) assignments by or to such Lender pursuant to an Assignment and Acceptance, (ii) an Incremental Amendment or (iii) an Extension Election.

2017-1 Term B-6 Lenders” shall mean, collectively, the Term Lenders with 2017-1 Term B-6 Commitments on the Amendment No. 6 (2017-1) Effective Date.

2017-1 Term B-6 Loan” shall mean any Exchange 2017-1 Term B-6 Commitment or Additional 2017-1 Term B-6 Commitment.

2017-1 Term B-6 Maturity Date” shall mean June 22, 2023 or, if such date is not a Business Day, the first Business Day thereafter.

2017-1 Term B-6 Repricing Event” shall mean, other than in connection with a change of control or acquisition (or similar investment) not otherwise permitted under this Agreement, (i) any prepayment or repayment of 2017-1 Term B-6 Loans with the proceeds of, or any conversion of such 2017-1 Term B-6 Loans into, any new or replacement tranche of any new or additional term loans under the this Agreement that is broadly marketed or syndicated to banks and other institutional investors in similar financings and bearing interest at an effective interest rate less than the effective “yield” applicable to the 2017-1 Term B-6 Loans then in effect, and excluding for the avoidance of doubt, any prepayment or repayment of the 2017-1 Term B-6 Loans made with cash on hand, the proceeds of any revolving loans under the ABL Facility or any loans incurred or assumed (or to be assumed) by one or more non-Guarantors and (ii) any amendment to this Agreement that reduces the effective applicable margin for the 2017-1 Term B-6 Loans.

 

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2018 Term B-7 Borrowing shall mean a borrowing consisting of 2018 Term B-7 Loans of the same Type and, in the case of Eurodollar Rate Loans, have the same Interest Period made by each of the 2018 Term B-7 Lenders pursuant to Section 2.1(k).

2018 Term B-7 Commitment shall means any Exchange 2018 Term B-7 Commitment or Additional 2018 Term B-7 Commitment, as such commitment may be (a) reduced from time to time pursuant to Section 2.4 and (b) reduced or increased from time to time pursuant to (i) assignments by or to such Lender pursuant to an Assignment and Acceptance, (ii) an Incremental Amendment or (iii) an Extension Election.

2018 Term B-7 Lenders shall mean, collectively, the Term Lenders with 2018 Term B-7 Commitments on the Amendment No. 7 (2018) Effective Date.

2018 Term B-7 Loan shall mean any Exchange 2018 Term B-7 Commitment or Additional 2018 Term B-7 Commitment.

2018 Term B-7 Maturity Date shall mean November 17, 2025 or, if such date is not a Business Day, the first Business Day thereafter.

2018 Term B-7 Repricing Event shall mean, other than in connection with (x) a change of control, (y) an acquisition (or similar investment) not otherwise permitted under this Agreement or (z) a Transformative Acquisition, (i) any prepayment or repayment of 2018 Term B-7 Loans with the proceeds of, or any conversion of such 2018 Term B-7 Loans into, any new or replacement tranche of any new or additional term loans under this Agreement that is broadly marketed or syndicated to banks and other institutional investors in similar financings and bearing interest at an effective interest rate less than the effective yield applicable to the 2018 Term B-7 Loans then in effect, and excluding for the avoidance of doubt, any prepayment or repayment of the 2018 Term B-7 Loans made with cash on hand, the proceeds of any revolving loans under the ABL Facility or any loans incurred or assumed (or to be assumed) by one or more non-Guarantors and (ii) any amendment to this Agreement that reduces the effective applicable margin for the 2018 Term B-7 Loans.

AB LLC” shall have the meaning set forth in the Preamble hereto.

ABL Agent” shall mean Bank of America, N.A., in its capacity as administrative agent and collateral agent under the ABL Facility Documentation, or any successor agent or under the ABL Facility Documentation.

ABL Credit Agreement” shall mean the Credit Agreement, dated as of Original Closing Date, among the Parent Borrower, the other borrowers party thereto, the guarantors party thereto, Bank of America, N.A., as agent and the lenders and issuing banks from time to time party thereto, as such agreement may be amended, amended and restated, supplemented, waived or otherwise modified from time to time or refunded, refinanced, restructured, replaced, renewed, repaid, increased or extended from time to time.

ABL Facility” shall mean that credit facility made available to the Parent Borrower and certain of its Affiliates pursuant to the ABL Credit Agreement.

ABL Facility Documentation” shall mean the ABL Credit Agreement and all security agreements, guarantees, pledge agreements and other agreements or instruments executed in connection therewith, as the same may be amended, amended and restated, supplemented, waived or otherwise

 

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modified from time to time or refunded, refinanced, restructured, replaced, renewed, repaid, increased or extended from time to time.

ABL Facility Indebtedness” shall mean (i) Indebtedness of Holdings, the Parent Borrower or any Restricted Subsidiary outstanding under the ABL Facility Documentation, (ii) any Swap Contract permitted pursuant to Article 10 hereof that is entered into by and between the Parent Borrower or any Restricted Subsidiary and any Person that is a lender under the ABL Credit Agreement or an Affiliate of a lender under the ABL Credit Agreement at the time such Swap Contract is entered into and (iii) any agreement with respect to Cash Management Obligations permitted under Article 10 that is entered into by and between the Parent Borrower or any Restricted Subsidiary and any Person that is a lender under the ABL Credit Agreement or an Affiliate of a lender under the ABL Credit Agreement at the time such agreement is entered into.

ABL Intercreditor Agreement” shall mean the intercreditor agreement dated the Original Closing Date, among the Agent, the ABL Agent, the Parent Borrower and the Guarantors, substantially in the form attached as Exhibit N-1, as amended as of the Escrow Release Date in a manner reasonably satisfactory to the Agent and as the same may be further amended, amended and restated, supplemented, waived or otherwise modified from time to time in accordance with the terms hereof and thereof.

ABL Loans” shall have the meaning set forth in the Preamble hereto.

Acceptable Price” shall have the meaning set forth in Section 2.3(c)(iii) hereto.

Acceptance Date” shall have the meaning set forth in Section 2.3(c)(ii) hereto.

Account” shall mean “accounts” as defined in the UCC, and also shall mean a right to payment of a monetary obligation, whether or not constituting “accounts” as defined in the UCC, whether or not earned by performance, (a) for property that, has been or is to be sold, leased, licensed, assigned, or otherwise disposed of, (b) for services rendered or to be rendered, or (c) arising out of the use of a credit or charge card or information contained on or for use with the card. The term “Account” includes Health-Care-Insurance Receivables (as defined in the UCC).

Accounting Period” shall mean, subject to Section 10.10, Holdings’ four (4) week accounting periods as set forth on Schedule 1.02 hereto.

ACH” shall mean automated clearing house transfers.

Acquisition” shall mean, with respect to any Person (a) a purchase of a Controlling interest in, the Equity Interests of any other Person, (b) a purchase or other acquisition of all or substantially all of the assets or properties of, another Person or of any business unit of another Person, (c) any merger or consolidation of such Person with any other Person or other transaction or series of transactions resulting in the acquisition of all or substantially all of the assets, or a Controlling interest in the Equity Interests, of any Person, or (d) any acquisition of any Store locations or other operating assets of any Person (other than Stores received in an exchange or acquired with the proceeds of a Disposition described in Section 10.5 (q)), in each case, for which the aggregate consideration payable in connection with such acquisition or group of transactions which are part of a common plan is $75,000,000 or more.

Additional 2016-1 Term B-4 Commitment” means, with respect to each Additional 2016-1 Term B-4 Lender, the obligation of such Additional 2016-1 Term B-4 Lender to make an Additional 2016-1 Term B-4 Loan on the Amendment No. 4 (B-6) Effective Date, in the amount set forth on the Additional 2016-1 Term B-4 Lender Joinder Agreement. The aggregate amount of the Additional 2016-1

 

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Term B-4 Commitments of all Additional 2016-1 Term B-4 Lenders on the Amendment No. 4 (B-6) Effective Date shall equal to the outstanding principal amount of all Non-Exchanged Term B-4 Loans.

Additional 2016-1 Term B-4 Lender” means a Person with an Additional 2016-1 Term B-4 Commitment to make Additional 2016-1 Term B-4 Loans to the Borrowers on the Amendment No. 4 (B-6) Effective Date, which for the avoidance of doubt may be an existing Lender.

Additional 2016-1 Term B-4 Lender Joinder Agreement” means the joinder agreement, dated as of the Amendment No. 4 (B-6) Effective Date, between the Additional 2016-1 Term B-4 Lender, Holdings, the Borrowers and the Agent.

Additional 2016-1 Term B-4 Loan” means a 2016-1 Term B-4 Loan that is made pursuant to Section 2.1(db) on the Amendment No. 4 (B-6) Effective Date.

Additional 2016-1 Term B-5 Commitment” means, with respect to each Additional 2016-1 Term B-5 Lender, the obligation of such Additional 2016-1 Term B-5 Lender to make an Additional 2016-1 Term B-5 Loan on the Amendment No. 4 (B-6) Effective Date, in the amount set forth on the Additional 2016-1 Term B-5 Lender Joinder Agreement. The aggregate amount of the Additional 2016-1 Term B-5 Commitments of all Additional 2016-1 Term B-5 Lenders on the Amendment No. 4 (B-6) Effective Date shall equal to the outstanding principal amount of all Non-Exchanged Term B-5 Loans.

Additional 2016-1 Term B-5 Lender” means a Person with an Additional 2016-1 Term B-5 Commitment to make Additional 2016-1 Term B-5 Loans to the Borrowers on the Amendment No. 4 (B-6) Effective Date, which for the avoidance of doubt may be an existing Lender.

Additional 2016-1 Term B-5 Lender Joinder Agreement” means the joinder agreement, dated as of the Amendment No. 4 (B-6) Effective Date, between the Additional 2016-1 Term B-5 Lender, Holdings, the Borrowers and the Agent.

Additional 2016-1 Term B-5 Loan” means a 2016-1 Term B-5 Loan that is made pursuant to Section 2.1(dc) on the Amendment No. 4 (B-6) Effective Date.

Additional 2016-1 Term B-6 Commitment” means, with respect to each Additional 2016-1 Term B-6 Lender, the obligation of such Additional 2016-1 Term B-6 Lender to make an Additional 2016-1 Term B-6 Loan on the Amendment No. 5 (2016-2) Effective Date, in the amount set forth on the Additional 2016-1 Term B-6 Lender Joinder Agreement. The aggregate amount of the Additional 2016-1 Term B-6 Commitments of all Additional 2016-1 Term B-6 Lenders on the Amendment No. 5 (2016-2) Effective Date shall equal to the outstanding principal amount of all Non-Exchanged Term B-6 Loans.

Additional 2016-1 Term B-6 Lender” means a Person with an Additional 2016-1 Term B-6 Commitment to make Additional 2016-1 Term B-6 Loans to the Borrowers on the Amendment No. 5 (2016-2) Effective Date, which for the avoidance of doubt may be an existing Lender.

Additional 2016-1 Term B-6 Lender Joinder Agreement” means the joinder agreement, dated as of the Amendment No. 5 (2016-2) Effective Date, between the Additional 2016-1 Term B-6 Lender, Holdings, the Borrowers and the Agent.

Additional 2016-1 Term B-6 Loan” means a 2016-1 Term B-6 Loan that is made pursuant to Section 2.1(dg) on the Amendment No. 5 (2016-2) Effective Date.

 

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Additional 2016-2 Term B-4 Commitment” means, with respect to each Additional 2016-2 Term B-4 Lender, the obligation of such Additional 2016-2 Term B-4 Lender to make an Additional 2016-2 Term B-4 Loan on the Amendment No. 5 (2016-2) Effective Date, in the amount set forth on the Additional 2016-2 Term B-4 Lender Joinder Agreement. The aggregate amount of the Additional 2016-2 Term B-4 Commitments of all Additional 2016-2 Term B-4 Lenders on the Amendment No. 5 (2016-2) Effective Date shall equal to the outstanding principal amount of all Non-Exchanged 2016-1 Term B-4 Loans.

Additional 2016-2 Term B-4 Lender” means a Person with an Additional 2016-2 Term B-4 Commitment to make Additional 2016-2 Term B-4 Loans to the Borrowers on the Amendment No. 5 (2016-2) Effective Date, which for the avoidance of doubt may be an existing Lender.

Additional 2016-2 Term B-4 Lender Joinder Agreement” means the joinder agreement, dated as of the Amendment No. 5 (2016-2) Effective Date, between the Additional 2016-2 Term B-4 Lender, Holdings, the Borrowers and the Agent.

Additional 2016-2 Term B-4 Loan” means a 2016-2 Term B-4 Loan that is made pursuant to Section 2.1(be) on the Amendment No. 5 (2016-2) Effective Date.

Additional 2016-2 Term B-5 Commitment” means, with respect to each Additional 2016-2 Term B-5 Lender, the obligation of such Additional 2016-2 Term B-5 Lender to make an Additional 2016-2 Term B-5 Loan on the Amendment No. 5 (2016-2) Effective Date, in the amount set forth on the Additional 2016-2 Term B-5 Lender Joinder Agreement. The aggregate amount of the Additional 2016-2 Term B-5 Commitments of all Additional 2016-2 Term B-5 Lenders on the Amendment No. 5 (2016-2) Effective Date shall equal to the outstanding principal amount of all Non-Exchanged 2016-1 Term B-5 Loans.

Additional 2016-2 Term B-5 Lender” means a Person with an Additional 2016-2 Term B-5 Commitment to make Additional 2016-2 Term B-5 Loans to the Borrowers on the Amendment No. 5 (2016-2) Effective Date, which for the avoidance of doubt may be an existing Lender.

Additional 2016-2 Term B-5 Lender Joinder Agreement” means the joinder agreement, dated as of the Amendment No. 5 (2016-2) Effective Date, between the Additional 2016-2 Term B-5 Lender, Holdings, the Borrowers and the Agent.

Additional 2016-2 Term B-5 Loan” means a 2016-2 Term B-5 Loan that is made pursuant to Section 2.1(cf) on the Amendment No. 5 (2016-2) Effective Date.

Additional 2017-1 Term B-4 Commitment” means, with respect to each Additional 2017-1 Term B-4 Lender, the obligation of such Additional 2017-1 Term B-4 Lender to make an Additional 2017-1 Term B-4 Loan on the Amendment No. 6 (2017-1) Effective Date, in the amount set forth on the Additional 2017-1 Term B-4 Lender Joinder Agreement. The aggregate amount of the Additional 2017-1 Term B-4 Commitments of all Additional 2017-1 Term B-4 Lenders on the Amendment No. 6 (2017-1) Effective Date shall equal to the outstanding principal amount of all Non-Exchanged 2016-2 Term B-4 Loans.

Additional 2017-1 Term B-4 Lender” means a Person with an Additional 2017-1 Term B-4 Commitment to make Additional 2017-1 Term B-4 Loans to the Borrowers on the Amendment No. 6 (2017-1) Effective Date, which for the avoidance of doubt may be an existing Lender.

 

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Additional 2017-1 Term B-4 Lender Joinder Agreement” means the joinder agreement, dated as of the Amendment No. 6 (2017-1) Effective Date, between the Additional 2017-1 Term B-4 Lender, Holdings, the Borrowers and the Agent.

Additional 2017-1 Term B-4 Loan” means a 2017-1 Term B-4 Loan that is made pursuant to Section 2.1(bh) on the Amendment No. 6 (2017-1) Effective Date.

Additional 2017-1 Term B-5 Commitment” means, with respect to each Additional 2017-1 Term B-5 Lender, the obligation of such Additional 2017-1 Term B-5 Lender to make an Additional 2017-1 Term B-5 Loan on the Amendment No. 6 (2017-1) Effective Date, in the amount set forth on the Additional 2017-1 Term B-5 Lender Joinder Agreement. The aggregate amount of the Additional 2017-1 Term B-5 Commitments of all Additional 2017-1 Term B-5 Lenders on the Amendment No. 6 (2017-1) Effective Date shall equal to the outstanding principal amount of all Non-Exchanged 2016-2 Term B-5 Loans.

Additional 2017-1 Term B-5 Lender” means a Person with an Additional 2017-1 Term B-5 Commitment to make Additional 2017-1 Term B-5 Loans to the Borrowers on the Amendment No. 6 (2017-1) Effective Date, which for the avoidance of doubt may be an existing Lender.

Additional 2017-1 Term B-5 Lender Joinder Agreement” means the joinder agreement, dated as of the Amendment No. 6 (2017-1) Effective Date, between the Additional 2017-1 Term B-5 Lender, Holdings, the Borrowers and the Agent.

Additional 2017-1 Term B-5 Loan” means a 2017-1 Term B-5 Loan that is made pursuant to Section 2.1(bi) on the Amendment No. 6 (2017-1) Effective Date.

Additional 2017-1 Term B-6 Commitment” means, with respect to each Additional 2017-1 Term B-6 Lender, the obligation of such Additional 2017-1 Term B-6 Lender to make an Additional 2017-1 Term B-6 Loan on the Amendment No. 6 (2017-1) Effective Date, in the amount set forth on the Additional 2017-1 Term B-6 Lender Joinder Agreement. The aggregate amount of the Additional 2017-1 Term B-6 Commitments of all Additional 2017-1 Term B-6 Lenders on the Amendment No. 6 (2017-1) Effective Date shall equal to the outstanding principal amount of all Non-Exchanged 2016-1 Term B-6 Loans.

Additional 2017-1 Term B-6 Lender” means a Person with an Additional 2017-1 Term B-6 Commitment to make Additional 2017-1 Term B-6 Loans to the Borrowers on the Amendment No. 6 (2017-1) Effective Date, which for the avoidance of doubt may be an existing Lender.

Additional 2017-1 Term B-6 Lender Joinder Agreement” means the joinder agreement, dated as of the Amendment No. 6 (2017-1) Effective Date, between the Additional 2017-1 Term B-6 Lender, Holdings, the Borrowers and the Agent.

Additional 2017-1 Term B-6 Loan” means a 2017-1 Term B-6 Loan that is made pursuant to Section 2.1(bj) on the Amendment No. 6 (2017-1) Effective Date.

Additional 2018 Term B-7 Commitment means, with respect to each Additional 2018 Term B-7 Lender, the obligation of such Additional 2018 Term B-7 Lender to make an Additional 2018 Term B-7 Loan on the Amendment No. 7 (2018) Effective Date, in the amount set forth on the Additional 2018 Term B-7 Lender Joinder Agreement. The aggregate amount of the Additional 2018 Term B-7 Commitments of all Additional 2018 Term B-7 Lenders on the Amendment No. 7 (2018) Effective Date shall equal to the outstanding principal amount of all Non-Exchanged 2017-1 Term B-4 Loans.

 

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Additional 2018 Term B-7 Lender means a Person with an Additional 2018 Term B-7 Commitment to make Additional 2018 Term B-7 Loans to the Borrowers on the Amendment No. 7 (2018) Effective Date, which for the avoidance of doubt may be an existing Lender.

Additional 2018 Term B-7 Lender Joinder Agreement means the joinder agreement, dated as of the Amendment No. 7 (2018) Effective Date, between the Additional 2018 Term B-7 Lender, Holdings, the Borrowers and the Agent.

Additional 2018 Term B-7 Loan means a 2018 Term B-7 Loan that is made pursuant to Section 2.1(k) on the Amendment No. 7 (2018) Effective Date.

Additional Refinancing Lender” shall mean, at any time, any bank, financial institution or other institutional lender or investor (other than any such bank, financial institution or other institutional lender or investor that is a Lender at such time) that agrees to provide any portion of Refinancing Term Loans pursuant to a Refinancing Amendment in accordance with Section 2.9, provided that each Additional Refinancing Lender shall be subject to the approval of (i) the Agent, such approval not to be unreasonably withheld or delayed, to the extent that such Additional Refinancing Lender is not then an Affiliate of a then existing Lender or an Approved Fund and (ii) the Parent Borrower.

Additional Term B-6 Commitment” means, with respect to each Additional Term B-6 Lender, the obligation of such Additional Term B-6 Lender to make an Additional Term B-6 Loan on the Amendment No. 4 (B-6) Effective Date, in the amount set forth on the Additional Term B-6 Lender Joinder Agreement. The aggregate amount of the Additional Term B-6 Commitments of all Additional Term B-6 Lenders on the Amendment No. 4 (B-6) Effective Date shall equal the sum of (i) the outstanding principal amount of Non-Exchanged Term B-2 Loans and (ii) the outstanding principal amount of Non-Exchanged Term B-3 Loans.

Additional Term B-6 Lender” means a Person with an Additional Term B-6 Commitment to make Additional Term B-6 Loans to the Borrowers on the Amendment No. 4 (B-6) Effective Date, which for the avoidance of doubt may be an existing Lender.

Additional Term B-6 Lender Joinder Agreement” means the joinder agreement, dated as of the Amendment No. 4 (B-6) Effective Date, between the Additional Term B-6 Lender, Holdings, the Borrowers and the Agent.

Additional Term B-6 Loan” means a Term B-6 Loan that is made pursuant to Section 2.1(d) on the Amendment No. 4 (B-6) Effective Date.

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

Affiliate” shall mean, with respect to any Person, (a) 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, (b) any director, officer, managing member, partner, trustee, or beneficiary of that Person, and (c) any Person which beneficially owns or holds ten percent (10%) or more of any class of Voting Stock of such Person; provided that it is understood that SVU shall not be deemed an Affiliate of any Loan Party solely due to the transactions contemplated by the Transition Services Agreement or other relationships, facts or circumstances existing on the Escrow Release Date (including, but not limited to, representation on the board of directors of SVU).

 

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Affiliated Lender Assignment and Acceptance” shall have the meaning set forth in Section 14.7(h)(B) hereto.

Agent” shall mean Credit Suisse AG, Cayman Islands Branch, in its capacity as administrative agent and collateral agent on behalf of Lenders pursuant to the terms hereof and any replacement or successor agent hereunder.

Agent Parties” shall mean the Agent, the Arrangers and each of their respective Related Parties.

Agents Office” shall mean the Agent’s address and, as appropriate, account as set forth in Section 14.3, or such other address or account as the Agent may from time to time notify to the Parent Borrower and the Lenders.

Agreement” shall have the meaning set forth in the introductory paragraph hereto.

Albertsons Credit Card” shall mean any private label credit card issued by any Loan Party to customers or prospective customers.

Albertsons Group” shall mean, collectively, Holdings and its Subsidiaries (but excluding, for all purposes other than the financial statements, Unrestricted Subsidiaries).

Albertsons Private Label Accounts” shall mean all Accounts (including rights to payment of finance charges, interest or fees) due to any Loan Party pursuant to an Albertson’s Credit Card and any revolving charge accounts maintained by any Loan Party for any of its retail customers.

Amendment No. 1” shall mean Amendment No. 1 to the Existing Debt Facility, dated as of May 9, 2013.

Amendment No. 1 (B-5)” shall mean Amendment No. 1 to this Agreement.

Amendment No. 1 (B-5) Effective Date” means the date on which Amendment No. 5 shall have become effective in accordance with its terms.

Amendment No. 1 Effective Date” shall mean the date on which Amendment No. 1 shall have become effective in accordance with its terms.

Amendment No. 4” means Amendment No. 4 to the Existing Debt Facility, dated as of May 5, 2014.

Amendment No. 4 (B-6)” means Amendment No. 4 to this Agreement, dated as of the Amendment No. 4 (B-6) Effective Date.

Amendment No. 4 (B-6) Arrangers” means Credit Suisse Securities (USA) LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., Morgan Stanley Senior Funding, Inc., Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Barclays Bank PLC, Guggenheim Securities, LLC, RBC Capital Markets, LLC, Wells Fargo Securities, LLC and SunTrust Robinson Humphrey, Inc.

Amendment No. 4 (B-6) Effective Date” means June 22, 2016, the date on which all conditions precedent set forth in Section 4 of Amendment No. 4 (B-6) are satisfied.

 

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Amendment No. 4 Effective Date” means the date on which Amendment No. 4 shall have become effective in accordance with its terms.

Amendment No. 5” shall mean Amendment No. 5 to the Existing Debt Facility, dated as of the Restatement Effective Date, by and among Holdings, the Parent Borrower, the Guarantors, each of the lenders party thereto and Citibank, N.A.

Amendment No. 5 (2016-2)” means Amendment No. 5 to this Agreement, dated as of the Amendment No. 5 (2016-2) Effective Date

Amendment No. 5 (2016-2) Arrangers” means Credit Suisse Securities (USA) LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., Morgan Stanley Senior Funding, Inc., Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Barclays Bank PLC, MUFG Union Bank, N.A., RBC Capital Markets, LLC, Wells Fargo Securities, LLC and SunTrust Robinson Humphrey, Inc.

Amendment No. 5 (2016-2) Effective Date” means December 23, 2016, the date on which all conditions precedent set forth in Section 3 of Amendment No. 5 (2016-2) are satisfied.

Amendment No. 6 (2017-1)” means Amendment No. 6 to this Agreement, dated as of the Amendment No. 6 (2017-1) Effective Date.

Amendment No. 6 (2017-1) Arrangers” means Credit Suisse Securities (USA) LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., Morgan Stanley Senior Funding, Inc., Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Barclays Bank PLC, MUFG Union Bank, N.A., Royal Bank of Canada, Wells Fargo Securities, LLC, SunTrust Robinson Humphrey, Inc., U.S. Bank National Association and TD Securities (USA) LLC.

Amendment No. 6 (2017-1) Effective Date” means June 27, 2017, the date on which all conditions precedent set forth in Section 3 of Amendment No. 6 (2017-1) are satisfied.

Amendment No. 7 (2018) means Amendment No. 7 to this Agreement, dated as of the Amendment No. 7 (2018) Effective Date.

Amendment No. 7 (2018) Arrangers means Credit Suisse Loan Funding LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., Morgan Stanley Senior Funding, Inc., Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Barclays Bank PLC, Wells Fargo Securities, LLC, U.S. Bank National Association, MUFG Union Bank, N.A., Royal Bank of Canada, SunTrust Robinson Humphrey, Inc. and TD Securities (USA) LLC.

Amendment No. 7 (2018) Effective Date means November 16, 2018, the date on which all conditions precedent set forth in Section 3 of Amendment No. 7 (2018) are satisfied.

Applicable Discount” shall have the meaning set forth in Section 2.3(c)(iii) hereto.

Applicable Disposition Loan-to-Value Ratio” shall mean, as of any date of receipt of Net Proceeds from any Applicable Disposition, the ratio of (a) the aggregate principal amount of all Term Loans and other Indebtedness that is outstanding and secured by a Lien on the Pari Term Debt Priority Collateral (as defined in the ABL Intercreditor Agreement) (ranking pari passu with the Lien thereon securing the Obligations) on such date to (b) the aggregate amount of the Valuations for each of the Mortgaged Properties that has been completed not earlier than 18 calendar months prior to such date.

 

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Applicable Disposition Percentage” shall mean, as of the date of receipt of any Net Proceeds from any Applicable Disposition, (a) if the Consolidated First Lien Net Leverage Ratio as of the last day of the most recently ended four fiscal quarter period of Holdings for which financial statements have been delivered to the Agent pursuant to Section 9.5 is greater than or equal to 3.50:1.00, 100%, or (b) if the Consolidated First Lien Net Leverage Ratio as of the last day of the most recently ended four fiscal quarter period of Holdings for which financial statements have been delivered pursuant to Section 9.5 is less than 3.50:1.00 and (i) the Applicable Disposition Loan-to-Value Ratio as of such date is greater than 0.40:1.00, 100% or (ii) the Applicable Disposition Loan-to-Value Ratio as of such date is less than or equal to 0.40:1.00, 50%.

Applicable Dispositions” shall mean any Dispositions consummated after the Escrow Release Date, the Net Proceeds of which are required to be applied to prepay any Loans pursuant to Section 2.3(b)(ii)(1) hereto.

Applicable ECF Percentage” shall mean, for any Fiscal Year, (a) 75% if the Consolidated First Lien Net Leverage Ratio as of the last day of the applicable Excess Cash Flow Period is greater than 3.25:1.00, (b) 50% if the Consolidated First Lien Net Leverage Ratio as of the last day of the applicable Excess Cash Flow Period is less than or equal to 3.25:1.00 and greater than 2.75:1:00, (c) 25% if the Consolidated First Lien Net Leverage Ratio as of the last day of the applicable Excess Cash Flow Period is less than or equal to 2:75:1.00 and greater than 2.25:1:00 and (c) 0% if the Consolidated First Lien Net Leverage Ratio as of the last day of the applicable Excess Cash Flow Period is less than or equal to 2.25:1.00.

Applicable Margin” shall mean a percentage per annum equal to (Aa) (i) for Term B-2 Loans which are Eurodollar Rate Loans, 4.500%, (Bii) for Term B-3 Loans which are Eurodollar Rate Loans, 4.125%, (Ciii) for Term B-4 Loans which are Eurodollar Loans, 4.500%, (Div) for the Term B-5 Loans that are Eurodollar Rate Loans, 4.50%, (Ev) for the 2016-1 Term B-4 Loans that are Eurodollar Rate Loans, 3.50%, (Fvi) for the 2016-2 Term B-4 Loans that are Eurodollar Rate Loans, 3.00%, (Gvii) for the 2017-1 Term B-4 Loans that are Eurodollar Rate Loans, 2.75%, (Hviii) for the 2016-1 Term B-5 Loans that are Eurodollar Rate Loans, 3.75%, (Iix) for the 2016-2 Term B-5 Loans that are Eurodollar Rate Loans, 3.25%, (Jx) for the 2017-1 Term B-5 Loans that are Eurodollar Rate Loans, 3.00%, (Kxi) for the Term B-6 Loans that are Eurodollar Rate Loans, 3.75%, (Lxii) for the 2016-1 Term B-6 Loans that are Eurodollar Rate Loans, 3.25%, (Mxiii) for the 2017-1 Term B-6 Loans that are Eurodollar Rate Loans, 3.00%, (Nxiv) for the 2018 Term B-7 Loans that are Eurodollar Rate Loans, 3.00%, (b) (i) for Term B-2 Loans which are Base Rate Loans, 3.50 %, (Oii) for Term B-3 Loans which are Base Rate Loans, 3.125%, (Piii) for Term B-4 Loans which are Base Rate Loans, 3.50%, (Qiv) for Term B-5 Loans which are Base Rate Loans, 3.50%, (Rv) for the 2016-1 Term B-4 Loans that are Base Rate Loans, 2.50%, (Svi) for the 2016-2 Term B-4 Loans that are Base Rate Loans, 2.00%, (Tvii) for the 2017-1 Term B-4 Loans that are Base Rate Loans, 1.75%, (Uviii) for the 2016-1 Term B-5 Loans that are Base Rate Loans, 2.75%, (Vix) for the 2016-2 Term B-5 Loans that are Base Rate Loans, 2.25%, (Wx) for the 2017-1 Term B-5 Loans that are Base Rate Loans, 2.00%, (Xxi) for the Term B-6 Loans that are Base Rate Loans, 2.75%, (Yxii) for the 2016-1 Term B-6 Loans that are Base Rate Loans, 2.25% and, (Zxiii) for the 2017-1 Term B-6 Loans that are Base Rate Loans, 2.00% and (xiv) for the 2018 Term B-7 Loans that are Base Rate Loans, 2.00%.

Appropriate Lender” shall mean, at any time, with respect to Loans of any Class, the Lenders of such Class.

Approved Broker” shall mean any firm nominated by the Parent Borrower and approved by the Agent.

 

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Approved Fund” shall mean any Fund that is administered, advised or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers, advises or manages any Fund that is a Lender.

Arrangers” shall mean, collectively, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley Senior Funding, Inc., Barclays Bank PLC and Deutsche Bank Securities Inc. in their capacities as joint lead arrangers and joint book managers. For purposes of Sections 12.5, 12.6, 13.7, 13.8, 14.18 and 14.22, the reference to “Arrangers” shall include the Amendment No. 4 (B-6) Arrangers and the Amendment No. 7 (2018) Arrangers.

Assignment and Acceptance” shall mean an Assignment and Acceptance substantially in the form of Exhibit A attached hereto (with blanks appropriately completed) delivered to Agent in connection with an assignment of Lender’s interest hereunder in accordance with the provisions of Section 14.7 hereof.

Attributable Indebtedness” shall mean, on any date, in respect of any Capital Lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP.

Audited Financial Statements” shall mean the financial statements of Parent Borrower and Safeway delivered pursuant to Section 4.1(c) of the Existing Debt Facility.

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

Bail-In Legislation” means, 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.

Bank Products” shall mean any services or facilities provided to any Loan Party by the Agent, any Arranger, any Lender, or any of their respective Affiliates (or any Person that was the Agent, an Arranger, a Lender, or an Affiliate of the Agent, an Arranger or a Lender, at the time it entered into such Bank Products or, with respect to Bank Products entered into prior to the Escrow Release Date, on the Escrow Release Date or in connection with the initial syndication of the Loans), including, without limitation, on account of (a) Swap Contracts and (b) purchase cards, but excluding Cash Management Services.

Base Rate” shall mean the highest of (i) the Federal Funds Effective Rate plus 0.50%; provided that in no event shall the Base Rate be less than 1.00% plus the Eurodollar Rate applicable to one month Interest Periods on the date of determination of the Base Rate, (ii) the rate of interest determined by the Agent as its “prime rate,” as established from time to time at its New York office and notified to the Parent Borrower, subject to each increase or decrease in such prime rate, effective as of the day any such change occurs and (iii) the one-month Eurodollar Rate on each day (or, if such day is not a Business Day, the preceding Business Day) plus 1.00% (after taking into account the Eurodollar Rate floor).

Base Rate Loans” shall mean any Loans or portion thereof on which interest is payable based on the Base Rate in accordance with the terms thereof.

Borrower” shall mean the Parent Borrower or a Co-Borrower, as the context may require.

 

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Borrowing” shall mean a borrowing consisting of Term Loans of the same Type and currency and, in the case of Eurodollar Rate Loans, having the same Interest Period made by each of the Term Lenders pursuant to Section 2.1.

Business Day” shall mean any day other than Saturday, Sunday, or other day on which commercial banks are authorized or required to close under the laws of, or are in fact closed in, the state where the Agent’s office is located, except that if determination of Business Day shall relate to any Eurodollar Rate Loans the term Business Day shall also exclude any day on which banks are closed for dealings in dollar deposits in the London interbank market or other applicable Eurodollar Rate market.

Capital Expenditures” shall mean without duplication and with respect to the Albertson’s Group for any period, all expenditures made (whether made in the form of cash or other property) or costs incurred for the acquisition or improvement of fixed or capital assets of the Albertson’s Group (excluding normal replacements and maintenance which are properly charged to current operations), in each case that are (or should be) set forth as capital expenditures in a Consolidated statement of cash flows of the Albertson’s Group for such period, in each case prepared in accordance with GAAP; provided that Capital Expenditures shall not include (i) expenditures by the Albertson’s Group in connection with the Safeway Acquisition and Permitted Acquisitions, (ii) any such expenditure made to restore, replace or rebuild property, to the extent such expenditure is made with (x) Net Proceeds from a Disposition or (y) insurance proceeds, condemnation awards or damage recovery proceeds relating to any such damage, loss, destruction or condemnation and (iii) any such expenditure funded or financed with the proceeds of Permitted Indebtedness (other than any revolving indebtedness).

Capital Lease Obligation” 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) in accordance with GAAP.

Capital Leases” shall mean, as applied to any Person, any lease of (or any agreement conveying the right to use) any property (whether real, personal or mixed) by such Person as lessee which in accordance with GAAP, is required to be reflected as liability on the balance sheet of such Person.

Captive Insurance Subsidiary” means any Restricted Subsidiary of Holdings that is subject to regulation as an insurance company (or any Subsidiary thereof).

Casa Ley” shall mean Casa Ley, S.A. de C.V.

Cash Equivalents” shall mean:

(1) U.S. dollars, pounds sterling, euros, the national currency of any participating member state of the European Union or, in the case of any Foreign Subsidiary that is a Restricted Subsidiary, such local currencies held by it from time to time in the ordinary course of business;

(2) securities issued or directly and fully guaranteed or insured by the government of the United States or any country that is a member of the European Union or any agency or instrumentality thereof in each case with maturities not exceeding two years from the date of acquisition;

(3) certificates of deposit, time deposits and eurodollar time deposits with maturities of one year or less from the date of acquisition, bankers’ acceptances, in each case with maturities not exceeding one year, and overnight bank deposits, in each case with any commercial bank having capital and surplus in excess of $500,000,000, or the foreign currency

 

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equivalent thereof, and whose long-term debt is rated “A” or the equivalent thereof by Moody’s or S&P (or reasonably equivalent ratings of another internationally recognized ratings agency);

(4) repurchase obligations for underlying securities of the types described in clauses (2) and (3) above entered into with any financial institution meeting the qualifications specified in clause (3) above;

(5) commercial paper issued by a corporation (other than an Affiliate of Holdings) rated at least “A-1” or the equivalent thereof by Moody’s or S&P (or reasonably equivalent ratings of another internationally recognized ratings agency) and in each case maturing within one year after the date of acquisition;

(6) readily marketable direct obligations issued by any state of the United States of America or any political subdivision thereof having one of the two highest rating categories obtainable from either Moody’s or S&P (or reasonably equivalent ratings of another internationally recognized ratings agency) in each case with maturities not exceeding two years from the date of acquisition;

(7) Indebtedness issued by Persons (other than the Sponsor or any of its Affiliates) with a rating of “A” or higher from S&P or “A-2” or higher from Moody’s in each case with maturities not exceeding two years from the date of acquisition; and

(8) investment funds investing at least 95% of their assets in securities of the types described in clauses (1) through (7) above.

Cash Management Obligations” shall mean obligations owed by any Borrower or any Restricted Subsidiary in respect of any overdraft and related liabilities arising from treasury, depository and Cash Management Services.

Cash Management Services” shall mean any cash management services or facilities provided to any Loan Party by the Agent, any Arranger or any Lender or any of their respective Affiliates (or any Person that was an Agent, an Arranger, a Lender or an Affiliate of the Agent, an Arranger, or a Lender at the time it entered into Cash Management Services), including, without limitation: (a) ACH transactions, (b) controlled disbursement services, or treasury, depository, overdraft, and electronic funds transfer services, (c) foreign exchange facilities, (d) credit card processing services, and (e) credit or debit cards.

Casualty Event” shall mean any event that gives rise to the receipt by any Borrower or any Restricted Subsidiary of any insurance proceeds or condemnation awards in respect of any equipment, fixed assets or real property (including any improvements thereon) to replace, restore or repair such equipment, fixed assets or real property.

CERCLA” shall mean the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. § 9601 et seq.

CERCLIS” shall mean the Comprehensive Environmental Response, Compensation, and Liability Information System maintained by the United States Environmental Protection Agency.

 

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

Change of Control” shall mean an event or series of events by which:

(a) any Person or group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor provision) including any group acting for the purpose of acquiring, holding or disposing of securities (within the meaning of Rule 13d-5(b)(1) under the Exchange Act), other than any Permitted Holder, acquires directly or indirectly, in a single transaction or in a related series of transactions, by way of merger, consolidation or other business combination or purchase of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act, or any successor provision), directly or indirectly, more than 50% of the total voting power of the voting Equity Interests of Holdings; or

(b) the sale, lease, transfer, conveyance or other disposition (other than by way of merger, consolidation or other business combination transaction), in one or a series of related transactions, of all or substantially all of the assets of Holdings and its Restricted Subsidiaries taken as a whole to a Person, other than a Restricted Subsidiary or any Permitted Holder; or

(c) Holdings fails at any time to own, directly or indirectly, of record and beneficially, 100% of the Equity Interests of any Co-Borrower, free and clear of all Liens other than Permitted Liens; provided that for purposes of this clause (c) a “Change of Control” shall not be deemed to have occurred if (i) either one or more Co-Borrowers consolidate with and into Holdings or (ii) any such Co-Borrower consolidates with and into another Co-Borrower or a Subsidiary Guarantor.

Change of Control Purchase Offer” shall mean any offer to purchase the Existing Safeway Notes upon a “Change of Control Triggering Event” pursuant to the indenture and other documents governing the Existing Safeway Notes.

Class” (a) when used with respect to any Lender, shall refer to whether such Lender has a Loan or Commitment with respect to a particular Class of Loans or Commitments, (b) when used with respect to Commitments, refers to whether such Commitments are Term B-3 Commitments, Term B-4 Commitments, Term B-5 Commitments, 2016-1 Term B-4 Commitments, 2016-1 Term B-5 Commitments, Term B-6 Commitments, 2016-2 Term B-4 Commitments, 2016-2 Term B-5 Commitments, 2016-1 Term B-6 Commitments, 2017-1 Term B-4 Commitments, 2017-1 Term B-5 Commitments, 2017-1 Term B-6 Commitments, 2018 Term B-7 Commitments, Term Commitments, Other Term Loan Commitments or Refinancing Term Commitments of a given Refinancing Series and (c) when used with respect to Loans or a Borrowing, refers to whether such Loans, or the Loans comprising such Borrowing are Term B-2 Loans, Term B-3 Loans, Term B-4 Loans, Term B-5 Loans, 2016-1 Term B-4 Loans, 2016-1 Term B-5 Loans, Term B-6 Loans, 2016-2 Term B-4 Loans, 2016-2 Term B-5 Loans, 2016-1 Term B-6 Loans, 2017-1 Term B-4 Loans, 2017-1 Term B-5 Loans, 2017-1 Term B-6 Loans, 2018 Term B-7 Loans, Incremental Term Loans, Other Term Loans, Refinancing Term Loans of a given Refinancing Series or Extended Term Loans of a given Term Loan Extension Series. Term B-3 Commitments, Term B-4 Commitments, Term B-5 Commitments, 2016-1 Term B-4 Commitments, 2016-1 Term B-5 Commitments, Term B-6 Commitments, 2016-2 Term B-4 Commitments, 2016-2 Term B-5 Commitments, 2016-1 Term B-6 Commitments, 2017-1 Term B-4 Commitments, 2017-1 Term B-5 Commitments, 2017-1 Term B-6 Commitments, 2018 Term B-7 Commitments, Other Term Loan Commitments and Term Commitments (and in each case, the Loans made pursuant to such Commitments) that have different terms and conditions (including, without limitation, different maturity dates and/or interest rates) shall be construed to be in different Classes.

 

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Commitments (and, in each case, the Loans made pursuant to such Commitments) that have the same terms and conditions shall be construed to be in the same Class.

Co-Borrower” shall mean (a) New Albertsons, IncAlbertsons L.P., Safeway Inc., United Supermarkets, L.L.C. and Spirit Acquisition Holdings LLC and (b) any wholly owned Domestic Subsidiary of Holdings that is a Restricted Subsidiary of Holdings and is designated by the Parent Borrower as a “Co-Borrower”; provided that such designation as a “Co-Borrower” is agreed upon in writing between the Parent Borrower and the Agent.

Co-Documentation Agents” shall mean PNC Capital Markets LLC and SunTrust Robinson Humphrey, Inc. in their capacities as co-documentation agents.

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

Collateral” shall mean the “Collateral” as defined in the Security Agreement and all the “Collateral” or “Pledged Assets” or similar term as defined in any other Collateral Document and any other assets pledged pursuant to any Collateral Document.

Collateral and Guarantee Requirement” shall mean, at any time, the requirement that:

(a) the Agent shall have received each Collateral Document required to be delivered (i) on the Escrow Release Date, pursuant to Section 4.3 and (ii) at such time as may be designated therein, pursuant to the Collateral Documents, Section 9.8, Section 9.9 or Section 9.21, in each case, subject to the limitations and exceptions of this Agreement, duly executed by each Loan Party thereto;

(b) all Obligations shall have been unconditionally guaranteed by each Guarantor, including those listed on Schedule I hereto on the Escrow Release Date; provided that, in addition, notwithstanding anything to the contrary contained in this Agreement, any Subsidiary of Holdings that is an obligor under any ABL Facility Indebtedness, any Junior Financing, Incremental Equivalent Debt, Permitted Unsecured Refinancing Debt, Permitted First Priority Refinancing Debt, Permitted Junior Priority Refinancing Debt or any Permitted Refinancing of any thereof, shall be a Guarantor hereunder for so long as it is an obligor under such Indebtedness;

(c) on the Escrow Release Date (or with respect to Safeway and its Restricted Subsidiaries only, within 90 days after the Escrow Release Date (or such longer period as the Agent may agree in its sole discretion) with respect to Equity Interests where a security interest cannot be perfected by the filing of financing statements, delivery of the applicable certificated Equity Interests or notation on the books of the applicable issuer) the Obligations shall have been secured by a first-priority security interest in (i) all the Equity Interests of the Parent Borrower and each Co-Borrower, (ii) all Equity Interests of each Restricted Subsidiary that is not an Excluded Subsidiary and (iii) 65% of the voting Equity Interests and 100% of the nonvoting Equity Interests of each Restricted Subsidiary that is an Excluded Subsidiary described in clause (c) or (d) of the definition thereof directly owned by Parent Borrower, a Co-Borrower or any Guarantor, in each case, subject to exceptions and limitations otherwise set forth in this Agreement and the Collateral Documents (to the extent appropriate in the applicable jurisdiction);

(d) on the Escrow Release Date (or with respect to Safeway and its Restricted Subsidiaries only, within 90 days after the Escrow Release Date (or such longer period as the

 

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Agent may agree in its sole discretion) with respect to assets in which a security interest cannot be perfected by the filing of financing statements under the UCC or appropriate security agreements in the United States Patent and Trademark Office or the United States Copyright Office) the Obligations shall have been secured by a perfected security interest in substantially all tangible and intangible personal property of the Loan Parties (including Equity Interests and intercompany debt, accounts, inventory, machinery and equipment, accounts receivable, chattel paper, insurance proceeds, hedge agreement documents, instruments, indemnification rights, Tax refunds, cash, investment property, contract rights, Intellectual Property in the United States, other general intangibles, and proceeds of the foregoing), in each case with the priority required by the Collateral Documents and in each case, subject to exceptions and limitations otherwise set forth in this Agreement and the Collateral Documents (to the extent appropriate in the applicable jurisdiction); and

(e) (1) within 180 days following the Original Closing Date (or such longer period as the Agent may have agreed in its sole discretion) the Agent shall have received, with respect to each Existing Mortgaged Property, to the extent customary and appropriate (as determined by the Agent in its reasonable discretion) in the applicable jurisdiction, each of the following with respect to each property noted as a mortgaged property on Schedule 7(a)(ii) to the Perfection Certificate dated as of the Original Closing Date, and (2) within 180 days after the Escrow Release Date (or such longer period as the Agent may have agreed in its sole discretion), the Agent shall have received each of the following with respect to each property noted as a mortgaged property on Schedule 7(a)(ii) to the Perfection Certificate dated as of the Escrow Release Date, as such Perfection Certificate may be supplemented in accordance with Section 9.21 and (3) otherwise in accordance with Section 9.8(c), the Agent shall receive with respect to each Material Real Property each of the following in each of the cases set forth in clauses (1), (2) and (3) of this clause (e), subject to the limitations and exceptions of this Agreement and the Collateral Documents: (i) counterparts of a Mortgage with respect to such Mortgaged Property duly executed and delivered by the record owner or leasehold holder of such property in form suitable for filing or recording in all filing or recording offices that the Agent may reasonably deem necessary in order to create a valid and subsisting perfected first-priority Lien (subject only to Permitted Liens and other exceptions reasonably acceptable to the Agent) on the Mortgaged Property and/or rights described therein in favor of the Agent for the benefit of the Secured Parties and otherwise approved by the applicable local counsel for filing in the appropriate jurisdiction (which approval may be provided in the form of an electronic mail acknowledgment in form and substance reasonably satisfactory to the Agent), and evidence that all filing and recording taxes and fees have been paid or otherwise provided for in a manner reasonably satisfactory to the Agent (it being understood that if a mortgage tax will be owed on the entire amount of the indebtedness evidenced hereby, then the amount secured by the Mortgage shall be limited to the Fair Market Value of the property at the time the Mortgage is entered into if such limitation results in such mortgage tax being calculated based upon such Fair Market Value), (ii) in the case of any such Mortgaged Property located in the United States or to the extent customary in the jurisdiction of where such Mortgaged Property is located, fully paid policies of title insurance (or marked-up title insurance commitments having the effect of policies of title insurance) on the Mortgaged Property naming the Agent as the insured for its benefit and that of the Secured Parties and respective successors and assigns (the “Mortgage Policies”) issued by a nationally recognized title insurance company selected by the Parent Borrower and reasonably acceptable to the Agent (it being agreed that Fidelity National Title Company and First American Title Insurance Company are acceptable to the Agent) in form and substance and in an amount reasonably acceptable to the Agent (not to exceed the Fair Market Value of the real properties covered thereby), insuring the Mortgages to be valid subsisting first-priority Liens on the property described therein, free and clear of all Liens other than Permitted Liens and other Liens

 

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reasonably acceptable to the Agent, each of which shall (A) contain a “tie-in” or “cluster” endorsement, if available under applicable law (i.e., policies which insure against losses regardless of location or allocated value of the insured property up to a stated maximum coverage amount) and at commercially reasonable rates and (B) have been supplemented by such endorsements as shall be reasonably requested by the Agent if available in the jurisdiction in which the Mortgaged Property is located and if available on commercially reasonable terms; provided, however, the applicable Loan Party shall not be obligated to obtain a “creditor’s rights” or zoning endorsement; it being understood, however, that a “use verification” from the Planning & Zoning Resource Corporation will be provided in lieu thereof with respect to each Mortgaged Property in form and substance reasonably acceptable to the Agent), (iii) customary, favorable opinions of counsel to the Loan Parties with respect to the valid existence, corporate power and authority of such Loan Parties with respect to the granting of the Mortgages, each in form and substance reasonably satisfactory to the Agent (consistent with those required by Section 4.3(a)(xi)), (iv) (A) in the case of any such Mortgaged Property located in the United States having a Fair Market Value less than $15,000,000, either (i) such documentation required by the title insurance company or (ii) a survey or express map (or an existing survey or express map together with an “affidavit of no change”) of each Mortgaged Property, each sufficient in form to delete the standard survey exception in the title insurance policy insuring the Mortgage and provide the Agent with a “location” endorsement to such policy as shall be reasonably requested by the Agent to the extent customary in the jurisdiction where the Mortgaged Property is located and available at commercially reasonable rates and (B) in the case of any such Mortgaged Property located in the United States having a Fair Market Value equal to or in excess of $15,000,000, a survey or express map (or an existing survey or express map together with an “affidavit of no change”) of each Mortgaged Property, each sufficient in form to delete the standard survey exception in the title insurance policy and provide the Agent with endorsements to such policy as shall be reasonably requested by the Agent to the extent customary in the jurisdiction where the Mortgaged Property is located and available at commercially reasonable rates, (v) a completed “life of loan” Federal Emergency Management Agency Standard Flood Hazard Determination with respect to each Mortgaged Property (together with a notice about special flood hazard area status and flood disaster assistance duly executed by the Parent Borrower and each Loan Party relating thereto), duly executed and acknowledged by the appropriate Loan Parties, and (vi) in the case of any such Mortgaged Property located in the United States or to the extent customary in the jurisdiction of where such Mortgaged Property is located, a copy of a certificate as to coverage under the insurance policies required by Section 9.4, including, without limitation, flood insurance policies and the applicable provisions of the Collateral Documents, each of which shall be endorsed or otherwise amended to include a “Standard” or “New York” lender’s loss payable or mortgage endorsement (as applicable) and shall name the Agent, on behalf of the Secured Parties, as additional insured, and such other evidence of insurance related thereto, in each case, in form and substance reasonably satisfactory to the Agent; and (vii) with respect to any ground leased properties, to the extent they are required by the applicable lease and can be obtained with commercially reasonable efforts, estoppel and consent agreements executed by each of the lessors of the ground leased Material Real Properties along with (1) a memorandum of lease in recordable form with respect to such leasehold interest, executed and acknowledged by the owner of the affected real property, as lessor, or (2) reasonable evidence that the applicable lease with respect to such leasehold interest or a memorandum thereof has been recorded in all places necessary or desirable, in the Agent’s reasonable judgment, to give constructive notice to third party purchasers of such leasehold interest, or (3) if such leasehold interest was acquired or subleased from the holder of a recorded leasehold interest, the applicable assignment or sublease document, executed and acknowledged by such holder, in each case in form sufficient to give such constructive notice upon recordation and otherwise in form satisfactory to the Agent;

 

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provided, however, that the foregoing definition shall not require, and the Financing Agreements shall not contain, any requirements as to the creation or perfection of pledges of, security interests in, Mortgages on, or the obtaining of title insurance, surveys, abstracts or appraisals or taking other actions with respect to any Excluded Property and any real property that does not constitute Material Real Property.

Notwithstanding the foregoing provisions of this definition or anything in this Agreement or any other Financing Agreement to the contrary, the foregoing provisions of this definition shall not require the creation or perfection of pledges of or security interests in, or the delivery of Mortgages, obtaining of title insurance, legal opinions or other deliverables with respect to, particular assets of the Loan Parties, or the provision of Guarantees by any Restricted Subsidiary, if, and for so long as the Agent and the Parent Borrower reasonably agree in writing that the cost of creating or perfecting such pledges or security interests in such assets, or delivery of Mortgages, obtaining such title insurance, legal opinions or other deliverables in respect of such assets, or providing such Guarantees (taking into account any adverse tax consequences to Holdings and its Affiliates (including the imposition of withholding or other material taxes)), shall be excessive or commercially unreasonable in view of the benefits to be obtained by the Lenders therefrom.

The Agent may grant extensions of time for the perfection of security interests in, or the delivery of the Mortgages and the obtaining of title insurance and surveys with respect to, particular assets and the delivery of assets (including extensions beyond the Escrow Release Date for the perfection of security interests in the assets of the Loan Parties on such date) where it reasonably determines, in consultation with the Parent Borrower, that perfection cannot be accomplished without undue effort or expense by the time or times at which it would otherwise be required by this Agreement or the Collateral Documents.

No actions in any non-U.S. jurisdiction or required by the Laws of any non-U.S. jurisdiction shall be required in order to create any security interests in assets located, titled, registered or filed outside of the U.S. or to perfect such security interests (it being understood that there shall be no security agreements or pledge agreements governed under the Laws of any non-U.S. jurisdiction).

Collateral Documents” shall mean, collectively, the Escrow Agreement, the Security Agreement, each of the Mortgages, the Intercreditor Agreements, collateral assignments, security agreements, pledge agreements, intellectual property security agreements or other similar agreements delivered to the Agent pursuant to Section 4.3, Section 9.8, Section 9.9 or Section 9.21, and each of the other agreements, instruments or documents that creates or purports to create a Lien in favor of the Agent for the benefit of the Secured Parties.

Committed Loan Notice” shall mean a notice of (a) a Borrowing, (b) a conversion of Loans from one Type to the other, or (c) a continuation of Eurodollar Rate Loans, pursuant to Section 2.1(a), which, if in writing, shall be substantially in the form of Exhibit C hereto.

Commitment” shall mean an Incremental Term Loan Commitment, Term B-3 Commitment, Term B-4 Commitment, Term B-5 Commitment, 2016-1 Term B-4 Commitment, 2016-2 Term B-4 Commitment, 2017-1 Term B-4 Commitment, 2016-1 Term B-5 Commitment, 2016-2 Term B-5 Commitment, 2017-1 Term B-5 Commitment, Term B-6 Commitment, 2016-1 Term B-6 Commitment, 2017-1 Term B-6 Commitment, 2018 Term B-7 Commitment, Term Commitment, Other Term Loan Commitment, Refinancing Term Commitment of a given Refinancing Series or Extended Term Loan of a given Term Loan Extension Series, as the context may require.

Company Material Adverse Effect” shall mean (with each capitalized term other than “Safeway Merger Agreement” in this definition being defined pursuant to its definition in the Safeway

 

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Merger Agreement) any change, event, occurrence, development, effect, condition, circumstance or matter that, individually or in the aggregate, (i) has materially and adversely affected the assets, properties, business, financial condition or results of operation of the Company and Company Subsidiaries, taken as a whole, or (ii) would reasonably be expected to prevent or materially impair or delay the performance by the Company prior to the Effective Time of its obligations to consummate the transactions contemplated by the Safeway Merger Agreement; provided, however, that any change, event, occurrence, development, effect, condition, circumstance or matter resulting from or relating to any of the following shall not be considered, or taken into account in determining whether there has been a Company Material Adverse Effect: (a) except as it relates to clause (ii) above, the pendency, negotiation, consummation or public announcement of the Merger, including the impact thereof on relationships, contractual or otherwise, with customers, suppliers, distributors, Governmental Entities or employees; (b) global or national economic, monetary or financial conditions, including changes or developments in credit markets (including changes in prevailing interest or exchange rates), financial or securities markets (including the disruption thereof and any decline in the price of any security or market index), or economic, business or regulatory conditions anywhere in the world; (c) national or international political or social conditions; (d) the commencement, continuation or escalation of a war, armed hostilities or other international or national emergency, calamity or act of terrorism or any weather-related or other force majeure event or natural disaster or act of God or other comparable events or the worsening thereof; (e) any change in applicable Laws, GAAP, applicable stock exchange listing requirements, accounting principles or in the interpretation or enforcement thereof, in each case, after the date of the Safeway Merger Agreement; (f) the industries in which the Company and the Company Subsidiaries operate; (g) any failure to meet any internal or external projections, forecasts, guidance, estimates, milestones, budgets or internal or published financial or operating predictions of revenue, earnings, cash flow or cash position (except that the underlying cause of any such failure may be considered and taken into account in determining whether there has been a Company Material Adverse Effect); (h) any action taken or not taken by the Company or the Company Subsidiaries pursuant to the Safeway Merger Agreement (except as it relates to clause (ii) above) or at Ultimate Parent’s written request; (i) the identity of, or any facts or circumstances relating to, the Parent Entities or their respective Subsidiaries or (j) any change, event, occurrence, development, effect, condition, circumstance or matter arising out of or relating to any action taken in compliance with Section 5.9 of the Safeway Merger Agreement; provided, that the incremental extent of any disproportionate change, event, occurrence, development, effect, condition, circumstance or matter described in clauses (b), (c), (d), (e) or (f) with respect to the Company and the Company Subsidiaries, taken as a whole, relative to other similarly situated Persons in the food and drug retail business may be considered and taken into account in determining whether there has been a Company Material Adverse Effect.

Compensation Period” shall have the meaning set forth in Section 2.6(c)(ii) hereto.

Compliance Certificate” shall mean a compliance certificate in the form of Exhibit B hereto.

Consolidated” shall mean, when used to modify a financial term, test, statement, or report of a Person, the application or preparation of such term, test, statement or report (as applicable) based upon the consolidation, in accordance with GAAP, of the financial condition or operating results of such Person and its Subsidiaries.

Consolidated First Lien Net Leverage Ratio” shall mean, as of any date of determination, the ratio of (a) Consolidated Total Debt as of such date that is then secured by Liens on property or assets of the Albertson’s Group but excluding any such Indebtedness (other than obligations under the ABL Facility) in which the applicable Liens are expressly subordinated or junior to the Liens securing the Obligations, as of any date of determination to (b) EBITDA of the Albertson’s Group for the most recently ended Test Period on or prior to such date.

 

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Consolidated Interest Expense” shall mean, for any Test Period, the sum of (a) all interest, premium payments, debt discount, fees, charges and related expenses in connection with borrowed money (including capitalized interest) or in connection with the deferred purchase price of assets, in each case to the extent treated as interest in accordance with GAAP, including, without limitation, all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing and net costs under Swap Contracts, but excluding any non-cash or deferred interest or Swap Contract costs and (b) the portion of rent expense with respect to such period under Capital Lease Obligations that is treated as interest in accordance with GAAP, in each case of or by the Albertson’s Group for the most recently completed Test Period, all as determined on a Consolidated basis in accordance with GAAP.

Consolidated Net Income” shall mean for any Test Period, the aggregate of the Net Income of the Albertson’s Group for such period, determined on a Consolidated basis in accordance with GAAP; provided, however, that:

(1) any net after-tax extraordinary, nonrecurring or unusual gains or losses shall be excluded;

(2) the Net Income for such period shall not include the cumulative effect of a change in accounting principles during such period;

(3) any net after-tax gains or losses (less all fees and expenses or charges relating thereto) attributable to business dispositions or asset dispositions other than in the ordinary course of business (as determined in good faith by the Parent Borrower) shall be excluded;

(4) any net after-tax gains or losses (less all fees and expenses or charges relating thereto) attributable to the early extinguishment of indebtedness shall be excluded;

(5) the Net Income for such period of any Person that is not a Subsidiary of such Person, or is an Unrestricted Subsidiary, or that is accounted for by the equity method of accounting, shall be included only to the extent of the amount of dividends or distributions or other payments paid in cash (or to the extent converted into cash) to the referent Person or a Restricted Subsidiary thereof in respect of such period;

(6) an amount equal to the maximum amount of tax distributions permitted to be made to the holders of Equity Interests of such Person or any parent company of such Person in respect of such period in accordance with Section 10.6(i) shall be included as though such amounts had been paid as income taxes directly by such Person for such period;

(7) (a) the non-cash portion of “straight-line” rent expense shall be excluded and (b) the cash portion of “straight-line” rent expense which exceeds the amount expensed in respect of such rent expense shall be included;

(8) unrealized gains and losses relating to hedging transactions and mark-to-market of Indebtedness denominated in foreign currencies resulting from the application of ASC 830 shall be excluded;

(9) the income (or loss) of any non-consolidated entity during such Test Period in which any other Person has a joint interest shall be excluded, except to the extent of the amount of cash dividends or other distributions actually paid in cash to any of Albertson’s Group during such period; and

 

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(10) the income (or loss) of a Subsidiary during such Test Period and accrued prior to the date it becomes a Subsidiary of any of Albertson’s Group or is merged into or consolidated with any of Albertson’s Group or that Person’s assets are acquired by any of Albertson’s Group shall be excluded.

Consolidated Non-cash Charges” shall mean, with respect to Albertson’s Group for any period, the aggregate depreciation, amortization, impairment, compensation, rent and other non-cash expenses of such Person and its Subsidiaries reducing Consolidated Net Income of such Person for such period on a consolidated basis and otherwise determined in accordance with GAAP (including non-cash charges resulting from purchase accounting in connection with the Original Closing Transactions, the Transactions or with any Acquisition or Disposition that is consummated after the Original Closing Date), but excluding (i) any such charge which consists of or requires an accrual of, or cash reserve for, anticipated cash charges for any future period and (ii) the non-cash impact of recording the change in fair value of any embedded derivatives under ASC 815 and related interpretations as a result of the terms of any agreement or instrument to which such Consolidated Non-cash Charges relate.

Consolidated Taxes” shall mean, with respect to Albertson’s Group on a consolidated basis for any period, provision for taxes based on income, profits or capital, including, without limitation, state franchise and similar taxes and including, without duplication, an amount equal to the amount of tax distributions actually made to the holders of Equity Interests of such Person or any direct or indirect parent of such Person in respect of such period in accordance with Section 10.6(i), which shall be included as though such amounts had been paid as income taxes directly by such Person.

Consolidated Total Debt” shall mean, as of any date of determination, (x) the aggregate principal amount of Indebtedness, including, without limitation, Capital Lease Obligations, of the Albertson’s Group outstanding on such date (with respect to the ABL Facility, the principal amount of Indebtedness of the Albertson’s Group outstanding on such date shall be based upon the amount drawn thereunder as of the applicable date of determination) minus (y) unrestricted cash and Cash Equivalents of the Albertson’s Group of up to $500,000,000 in aggregate principal amount (including cash restricted in favor of the Lenders and/or the lenders under the ABL Facility); provided that Consolidated Total Debt shall not include Indebtedness in respect of letters of credit, except to the extent of unreimbursed amounts thereunder.

Consolidated Total Secured Net Leverage Ratio” shall mean, as of any date of determination, the ratio of (a) Consolidated Total Debt as of such date that is then secured by Liens on property or assets of the Albertson’s Group as of any date of determination to (b) EBITDA of the Albertson’s Group for the most recently ended Test Period on or prior to such date.

Consolidated Working Capital” shall mean, with respect to the Albertson’s Group on a consolidated basis at any date of determination, Current Assets at such date of determination minus Current Liabilities at such date of determination; provided that, increases or decreases in Consolidated Working Capital shall be calculated without regard to any changes in Current Assets or Current Liabilities as a result of (a) any reclassification in accordance with GAAP of assets or liabilities, as applicable, between current and noncurrent or (b) the effects of purchase accounting.

Contractual Obligation” shall mean, as to any Person, any provision of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.

 

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Contribution Indebtedness” means Indebtedness, Disqualified Stock or Preferred Stock of Holdings or any of its Subsidiaries in an aggregate principal amount not greater than the aggregate amount of cash contributions made to the capital of the Borrowers or the Guarantors, provided that:

(1) such Contribution Indebtedness shall be Indebtedness with a stated maturity later than the stated maturity of the Term Loans at such time, and

(2) such Contribution Indebtedness (a) is incurred within 210 days after the making of such cash contributions and (b) is so designated as Contribution Indebtedness.

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 ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto.

Credit Agreement Refinancing Indebtedness” shall mean (a) Permitted First Priority Refinancing Debt, (b) Permitted Junior Priority Refinancing Debt or (c) Permitted Unsecured Refinancing Debt, in each case, issued, incurred or otherwise obtained (including by means of the extension or renewal of existing Indebtedness) in exchange for, or to extend, renew, replace, repurchase, retire or refinance, in whole or part, existing Term Loans, or any then-existing Credit Agreement Refinancing Indebtedness (“Refinanced Debt”); provided that (i) such Indebtedness has a maturity no earlier, and a Weighted Average Life to Maturity equal to or greater, than 91 days after the Latest Maturity Date at the time such Indebtedness is incurred, (ii) such Indebtedness shall not have a greater principal amount (or accreted value, if applicable) than the principal amount (or accreted value, if applicable) of the Refinanced Debt plus accrued interest, fees, premiums (if any) and penalties thereon and reasonable fees and expenses associated with the refinancing, (iii) the terms and conditions of such Indebtedness (except as otherwise provided in clause (ii) above and with respect to pricing, rate floors, discounts, premiums and optional prepayment or redemption terms) are substantially identical to, or (taken as a whole) are no more favorable to the lenders or holders providing such Indebtedness, than those applicable to the Refinanced Debt being refinanced (except for covenants or other provisions applicable only to periods after the Latest Maturity Date at the time of incurrence of such Indebtedness) (provided that a certificate of a Responsible Officer delivered to the Agent at least five (5) Business Days prior to the incurrence of such Indebtedness, together with a reasonably detailed description of the material terms and conditions of such Indebtedness or drafts of the documentation relating thereto, stating that the Parent Borrower has determined in good faith that such terms and conditions satisfy the requirement of this clause (iii) shall be conclusive evidence that such terms and conditions satisfy such requirement unless the Agent notifies the Parent Borrower within such five (5) Business Day period that it disagrees with such determination (including a description of the basis upon which it disagrees)), and (iv) such Refinanced Debt shall be repaid, repurchased, retired, defeased or satisfied and discharged, and all accrued interest, fees, premiums (if any) and penalties in connection therewith shall be paid, on the date such Credit Agreement Refinancing Indebtedness is issued, incurred or obtained.

Credit Card Issuer” shall mean any Person (other than a Loan Party) who issues or whose members issue credit cards or debit cards, including, without limitation, MasterCard or VISA bank credit or debit cards or other bank credit or debit cards issued through MasterCard International, Inc., Visa, U.S.A., Inc. or Visa International and American Express, Discover, Diners Club, Carte Blanche and other non-bank credit or debit cards, including, without limitation, credit or debit cards issued by or through American Express Travel Related Services Company, Inc. or Discover Financial Services, Inc.

Credit Card Processor” shall mean any servicing or processing agent or any factor or financial intermediary who facilitates, services, processes or manages the credit authorization, billing transfer

 

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and/or payment procedures with respect to any Loan Party’s sales transactions involving credit card or debit card purchases by customers using credit cards or debit cards issued by any Credit Card Issuer.

Credit Suisse” shall mean Credit Suisse AG, Cayman Islands Branch.

Cumulative Credit” shall mean, at any date, an amount, not less than zero in the aggregate, determined on a cumulative basis equal to, without duplication:

(a) 50% of Consolidated Net Income for the period (treated as one accounting period) beginning the first day of the fiscal quarter after May 31, 2016 to the end of the most recent Test Period; plus

(b) the cumulative amount of cash and Cash Equivalent proceeds from (i) the sale of Qualified Capital Stock of Holdings or of any direct or indirect parent of Holdings after the Escrow Release Date and on or prior to such time (including upon exercise of warrants or options) which proceeds have been contributed as common equity to the capital of Holdings and (ii) the Qualified Capital Stock of a Borrower (or of Holdings or of any direct or indirect parent of Holdings) issued upon conversion of Indebtedness incurred after the Escrow Release Date of Holdings or any Restricted Subsidiary owed to a Person other than Holdings or a Restricted Subsidiary, in the case of each of subclause (i) and subclause (ii), not previously applied for a purpose other than use in the Cumulative Credit; plus

(c) 100% of the aggregate amount of contributions to the common capital of Holdings (other than from a Restricted Subsidiary) received in cash and Cash Equivalents after the Escrow Closing Date;

(d) the Net Proceeds of the sale or other Disposition of any Unrestricted Subsidiary received by Holdings or any Restricted Subsidiary; plus;

(e) Investments of Holdings or any Restricted Subsidiary in any Unrestricted Subsidiary that has been re-designated as a Restricted Subsidiary or that has been merged or consolidated with or into Holdings or any of the Restricted Subsidiaries (up to the greater of (i) the Fair Market Value of the Investments of Holdings and the Restricted Subsidiaries in such Unrestricted Subsidiary at the time of such re-designation or merger or consolidation and (ii) the Fair Market Value of the original Investment by Holdings and its Restricted Subsidiaries in such Unrestricted Subsidiary); plus;

(f) to the extent not included in Consolidated Net Income, dividends or other distributions or returns on capital received from Holdings or any Restricted Subsidiary from an Unrestricted Subsidiary;

(g) returns, profits, distributions and similar amounts received in cash or Permitted Investments by Holdings and the Restricted Subsidiaries made using the Cumulative Credit;

(h) minus any amount of the Cumulative Credit used to make Restricted Payments pursuant to Section 10.6(f) after the Escrow Release Date and prior to such time.

provided that the use of the Cumulative Credit shall be subject to compliance with a minimum Interest Coverage Ratio of at least 2.00 to 1.00, calculated on a Pro Forma Basis.

Cumulative Retained Disposition Amount” shall mean, at any date, an amount, not less than zero in the aggregate, determined on a cumulative basis equal to (a) the aggregate cumulative sum of the Retained Disposition Amounts with respect to all Applicable Dispositions after the Escrow Release Date and prior to such date minus (b) any amount of the Cumulative Retained Disposition Amount used to

 

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make Restricted Payments pursuant to Section 10.6(c) after the Escrow Release Date and prior to such date.

Cumulative Retained Excess Cash Flow Amount” shall mean, at any date, an amount, not less than zero in the aggregate, determined on a cumulative basis equal to the aggregate cumulative sum of the Retained Percentage of Excess Cash Flow for all Excess Cash Flow Periods ending after the Escrow Release Date and prior to such date.

Current Assets” shall mean, with respect to the Albertson’s Group on a consolidated basis at any date of determination, all assets (other than cash and Cash Equivalents) that would, in accordance with GAAP, be classified on a consolidated balance sheet of the Albertson’s Group as current assets at such date of determination, other than amounts related to current or deferred Taxes based on income or profits (but excluding assets held for sale, loans (permitted) to third parties, Pension Plan assets, deferred bank fees and derivative financial instruments).

Current Liabilities” shall mean, with respect to the Albertson’s Group on a consolidated basis at any date of determination, all liabilities that would, in accordance with GAAP, be classified on a consolidated balance sheet of the Albertson’s Group as current liabilities at such date of determination, other than (a) the current portion of any Indebtedness, (b) the current portion of interest, (c) accruals for current or deferred Taxes based on income or profits, (d) accruals of any costs or expenses related to restructuring reserves and (e) deferred revenue.

DDA” shall mean each checking, savings or other demand deposit account maintained by any of the Loan Parties. All funds in each DDA shall be conclusively presumed to be Collateral and proceeds of Collateral and the Agent and the Lenders shall have no duty to inquire as to the source of the amounts on deposit in any DDA.

Debt Fund Affiliate” shall mean any Affiliate of any Sponsor that is primarily engaged in, or advises funds or other investment vehicles that are engaged in, making, purchasing, holding or otherwise investing in commercial loans, bonds and similar extensions of credit or securities in the ordinary course.

Debt Refinancing” means all obligations under any Indebtedness of Safeway and its Subsidiaries other than Indebtedness set forth on Schedule 1.05 hereto shall have been repaid on the Escrow Release Date, and all Liens securing such indebtedness shall have been released.

Debtor Relief Laws” shall mean the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally.

Default” shall mean an act condition or event which with notice or passage of time or both would constitute an Event of Default.

Designated Non-Cash Consideration” means the Fair Market Value of non-cash consideration received by a Borrower or one of its Restricted Subsidiaries in connection with a Disposition that is so designated as Designated Non-Cash Consideration pursuant to an officer’s certificate, setting forth the basis of such valuation, less the amount of cash or Cash Equivalents received in connection with a subsequent payment, redemption, retirement, sale or other disposition of such Designated Non-Cash Consideration. A particular item of Designated Non-Cash Consideration will no longer be considered to

 

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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 10.5.

Discount Range” shall have the meaning set forth in Section 2.3(c)(ii) hereto.

Discounted Prepayment Option Notice” shall have the meaning set forth in Section 2.3(c)(ii) hereto.

Discounted Voluntary Prepayment” shall have the meaning set forth in Section 2.3(c)(i) hereto.

Discounted Voluntary Prepayment Notice” shall have the meaning set forth in Section 2.3(c)(v) hereto.

Disposition” or “Dispose” shall mean the sale, transfer, assignment, exclusive license, lease or other disposition (including any sale and leaseback transaction) (whether in one transaction or in a series of transactions) of any property by any Person, including (i) any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith and (ii) any sale, transfer, assignment, or other disposition of any Equity Interests of another Person, but, for the avoidance of doubt, not the issuance by such Person of its Equity Interests).

Disqualified Stock” shall mean, with respect to any Person, any Equity Interests that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable, in each case at the option of the holder thereof), or upon the happening of any event:

(1) matures or is mandatorily redeemable (other than solely for Equity Interests that do not constitute Disqualified Stock), pursuant to a sinking fund obligation or otherwise,

(2) is convertible or exchangeable for Indebtedness or Disqualified Stock at the option of the holder thereof, or

(3) is redeemable at the option of the holder thereof, in whole or in part,

in each case prior to 91 days after the Latest Maturity Date; provided, however, that only the portion of Equity Interests which so matures or is mandatorily redeemable, is so convertible or exchangeable or is so redeemable at the option of the holder thereof prior to such date shall be deemed to be Disqualified Stock; provided, further, however, that if such Equity Interests is issued to any employee or to any plan for the benefit of employees of Holdings or its Subsidiaries or by any such plan to such employees, such Equity Interests shall not constitute Disqualified Stock solely because it may be required to be repurchased by Holdings in order to satisfy applicable statutory or regulatory obligations or as a result of such employee’s termination, resignation, death or disability; provided, further, that any class of Equity Interests of such Person that by its terms authorizes such Person to satisfy its obligations thereunder by delivery of Equity Interests that is not Disqualified Stock shall not be deemed to be Disqualified Stock. Notwithstanding the preceding sentence, any Equity Interest that would constitute Disqualified Stock solely because the holders thereof have the right to require Holdings or its Subsidiaries to repurchase such Equity Interest upon the occurrence of a change of control or an asset sale shall not constitute Disqualified Stock.

Divested Properties” shall mean the stores required to be divested, transferred or otherwise sold by the Albertson’s Group in connection with the Safeway Acquisition pursuant to an agreement with

 

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or order issued by the Department of Justice, the Federal Trade Commission or similar regulatory authority.

Dollar and $” shall mean lawful money of the United States.

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

Earn-Out Obligations” shall mean, with respect to any Acquisition, all obligations of any Loan Party or any Subsidiary thereof to make any cash earn-out payment, performance payment or similar obligation that is payable only in the event certain future performance goals are achieved with respect to the assets or business acquired pursuant to the documentation relating to such Acquisition, but excluding any working capital adjustments, indemnity obligations or payments for services or licenses provided by such sellers in such Acquisition.

Eastern Division Assets” shall have the meaning given to such term in the recitals to this Agreement.

Eastern Division Sale” shall mean the sale of the Eastern Division Assets to NAI pursuant to the Eastern Division Sale Agreement.

Eastern Division Sale Agreement” shall have the meaning given to such term in the recitals to this Agreement.

EBITDA” shall mean at any date of determination, an amount equal to the Consolidated Net Income of Albertson’s Group for the most recently completed Test Period plus, without duplication, to the extent the same was deducted in calculating such Consolidated Net Income:

(1) Consolidated Taxes; plus

(2) Consolidated Interest Expense; plus

(3) Consolidated Non-cash Charges; plus

(4) the amount of management, monitoring, consulting and advisory fees and related expenses paid to the Sponsor (or any accruals relating to such fees and related expenses) during such period to the extent otherwise permitted under Section 10.8; plus

(5) the Original Closing Date Transaction Payments and the Escrow Release Date Transaction Payments; plus

(6) any expenses or charges (other than Consolidated Non-cash Charges) related to any issuance of Equity Interests, Investment, Acquisition, Disposition, recapitalization or the incurrence or repayment or amendment of Indebtedness permitted to be incurred hereunder (including a refinancing thereof) (whether or not successful or meeting the dollar amount thresholds specified herein), including (i) such fees, expenses or charges related to the issuance of the Term Loans or ABL Facility Indebtedness, (ii) any amendment or other modification of this Agreement or other Indebtedness, and (iii) commissions, discounts, yield or other fees and charges (including any interest expense) related to any Qualified Receivables Financing; plus

 

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(7) the amount of loss on sale of receivables and related assets to a Receivables Subsidiary in connection with a Qualified Receivables Financing; plus

(8) any costs or expense incurred pursuant to any management equity plan or stock option plan or other management or employee benefit plan or agreement or any stock subscription or shareholder agreement, to the extent that such costs or expenses are funded with cash proceeds contributed to the capital of the Parent Borrower or Safeway or the net cash proceeds of an issuance of Equity Interests of the Parent Borrower or Safeway (other than Disqualified Stock); plus

(9) the amount of any minority interest expense consisting of income of a Subsidiary attributable to minority equity interests of third parties in any non-wholly owned Subsidiary deducted in such period in calculating Consolidated Net Income, net of any cash distributions made to such third parties in such period; plus

(10) the amount of “run-rate” cost savings, operating expense reductions, restructuring charges and expenses and cost-saving synergies projected by the Borrower in good faith to be realized as a result of actions taken or expected to be taken during, or expected to be taken within 18 months of the end of, such period (calculated on a Pro Forma Basis as though such cost savings, operating expense reductions, restructuring charges and expenses and cost-saving synergies had been realized on the first day of such period), net of the amount of actual benefits realized during such period from such actions; provided that (1) such cost savings, operating expense reductions, restructuring charges and expenses and cost-saving synergies are reasonably identifiable and factually supportable, (2) no cost savings, operating expense reductions, restructuring charges and expenses and cost-saving synergies may be added pursuant to this clause (10) to the extent duplicative of any expenses or charges relating thereto that are either excluded in computing Consolidated Net Income or included (i.e., added back) in computing EBITDA for such period, (3) such adjustments may be incremental to (but not duplicative of) pro forma adjustments made pursuant to Section 14.13 and (4) the aggregate amount of cost savings, operating expense reductions, restructuring charges and expenses and cost saving synergies added pursuant to this clause (10) shall not exceed (A) 25.0% of EBITDA for such four-quarter period plus (B) the amount of any such cost savings, operating expense reductions, restructuring charges and expenses and cost-savings synergies that would be permitted to be included in financial statements prepared in accordance with Regulation S-X under the Securities Act during such four-quarter period; plus

(11) Public Company Costs; plus

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

less, without duplication, (i) non-cash income or gain increasing Consolidated Net Income for such period, excluding any such items to the extent they represent (1) the reversal in such period of an accrual of, or reserve for, potential cash expense in a prior period, (2) any non-cash gains with respect to cash actually received in a prior period to the extent such cash did not increase Consolidated Net Income in a prior period or (3) items representing ordinary course accruals of cash to be received in future periods; plus (ii) any net gain from discontinued operations or net gains from the disposal of discontinued operations to the extent increasing Consolidated Net Income.

In addition, to the extent not already included in the Consolidated Net Income of Albertson’s Group, notwithstanding anything to the contrary in the foregoing, EBITDA shall include the amount of net cash proceeds received by Albertson’s Group from business interruption insurance.

 

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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.

Effective Yield” shall mean, as to any Loans of any Class, the effective yield on such Loans, taking into account the applicable interest rate margins, any interest rate floors or similar devices and all fees, including upfront or similar fees or original issue discount (amortized over the shorter of (x) the original stated life of such Loans and (y) the four years following the date of incurrence thereof) payable generally to Lenders making such Loans, but excluding any arrangement, structuring or other fees payable in connection therewith that are not generally shared ratably with all relevant Lenders and consent fees paid generally to consenting Lenders.

Eligible Transferee” shall mean (a) a Person that is a Lender, a U.S. based Affiliate of a Lender or an Approved Fund; (b) any other Person with the prior written consent of (i) the Agent (such approval not to be unreasonably withheld) and (ii) unless an Event of Default under Section 11.1(a)(i), 11.1(a)(ii), 11.1(g) or 11.1(h) exists, the Parent Borrower (such approval by the Parent Borrower, when required, not to be unreasonably withheld or delayed and to be deemed given by the Parent Borrower if no objection is received by the assigning Lender and Agent from the Parent Borrower within the earlier to occur of (x) three (3) Business Days after notice of such proposed assignment has been provided by the assigning Lender as set forth in Section 14.7 of this Agreement and acknowledged by the Parent Borrower or (y) five (5) Business Days after such notice has been provided to the Parent Borrower); provided that no consent of the Parent Borrower shall be required prior to the completion of primary syndication settlement of the Term B Loans; provided, further that no Person shall be an Eligible Transferee pursuant to this clause (b) if such Person is a direct competitor of any Loan Party identified in writing to the Agent by the Borrower prior to the effective time of the applicable assignment (unless at the time of assignment there is in process a liquidation of all or substantially all of the assets of the Parent Borrower, whether conducted by the Parent Borrower, Agent, a trustee for the Parent Borrower or a representative of creditors of the Parent Borrower), or is a Person identified as an ineligible transferee on a written list of such Persons that is delivered by the Parent Borrower to Agent prior to the Restatement Effective Date and (c) Sponsor, as provided in Section 14.7(h). Except as set forth in Section 2.3(c) and Section 14.7(h), no Loan Party shall be an Eligible Transferee. No natural person shall be an Eligible Transferee.

Environmental Laws” shall mean any and all applicable Federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution, the protection of the environment or the release of any materials into the environment, including those related to Hazardous Materials, air emissions and waste water discharges.

Environmental Liability” shall mean any liability, obligation, damage, loss, claim, action, suit, judgment, order, fine, penalty, fee, expense, or cost, contingent or otherwise (including any liability for

 

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damages, natural resource damages, costs of environmental remediation, regulatory oversight fees, fines, penalties or indemnities), of any Loan Party or any of their respective Subsidiaries resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

Equipment” shall have the meaning set forth in the UCC.

Equity Contribution” shall mean the new cash contributions (directly or indirectly) by the Sponsor to AB LLC, in an amount equal to $1,250,000,000 which will be contributed to Holdings as common and/or preferred equity of Holdings (provided that any such preferred equity shall be reasonably acceptable to the Arrangers).

Equity Interests” shall mean with respect to any Person, all of the shares of capital stock of (or other ownership interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other ownership interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting.

ERISA” shall mean the Employee Retirement Income Security Act of 1974.

ERISA Affiliate” shall mean any trade or business (whether or not incorporated) under common control with Holdings within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).

ERISA Event” shall mean (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by Holdings or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by a Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is insolvent or in reorganization (within the meaning of Title IV of ERISA); (d) the filing of a notice of intent to terminate, the treatment of a Plan amendment as a termination under Sections 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; (f) with respect to a Pension Plan, a failure to satisfy the minimum funding standard under Section 412 of the Code or Section 302 of ERISA, whether or not waived, a failure to make by its due date a required installment under Section 430(j) of the Code with respect to a Pension Plan or a failure to make a required contribution to a Multiemployer Plan; (g) a determination that a Pension Plan is, or is expected to be, in “at-risk” status (as defined in Section 430(i)(4) of the Code or Section 303(i)(4) of ERISA); or (h) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon a Borrower or any ERISA Affiliate.

Escrow Account” shall mean the escrow account established with the Escrow Agent pursuant to the Escrow Agreement.

 

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Escrow Account Funds” shall mean all cash, securities and other property held in or credited to the Escrow Account.

Escrow Agent” shall mean Wilmington Trust, National Association.

Escrow Agreement” shall mean the Escrow Agreement dated as of the Restatement Effective Date among the Parent Borrower, the Agent and the Escrow Agent, substantially in the form of Exhibit P.

Escrow Collateral” shall mean “Collateral” as defined in the Escrow Agreement.

Escrow Release Date Transaction Payments” shall mean transaction closing fees in an aggregate amount of $35,000,000 payable contemporaneously with the Escrow Release Date to the Sponsor (directly, or indirectly through AB LLC) and to management of the Loan Parties.

Escrow Release Conditions” shall mean, collectively, the conditions set forth in Section 4.3.

Escrow Release Date” shall mean the date on which the conditions set forth in Section 4.3 are satisfied and the proceeds of the Term B-3 Loans and the Term B-4 Loans are released from the Escrow Account to the Parent Borrower.

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

Eurodollar Rate” (a) for any Interest Period with respect to a Eurodollar Rate Loan, the rate per annum equal to (i) the ICE Benchmark Administration LIBOR Rate (“ICE LIBOR”), as published by Reuters (or such other commercially available source providing quotations of ICE LIBOR as may be designated by the Agent from time to time) at approximately 11:00 a.m., London time, two London Banking Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period or (ii) if such rate is not available at such time for any reason, then the “Eurodollar Rate” for such Interest Period shall be the rate per annum determined by the Agent to be the rate at which deposits in Dollars for delivery on the first day of such Interest Period in same day funds in the approximate amount of the Eurodollar Rate Loan being made, continued or converted by Credit Suisse and with a term equivalent to such Interest Period would be offered by Credit Suisse’s London Branch to major banks in the London interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two Business Days prior to the commencement of such Interest Period; and (b) for any interest calculation with respect to a Base Rate Loan on any date, the rate per annum equal to (i) ICE LIBOR, at approximately 11:00 a.m., London time determined on such date for Dollar deposits being delivered in the London interbank market for a term of one month commencing that day or (ii) if such published rate is not available at such time for any reason, the rate per annum determined by the Agent to be the rate at which deposits in Dollars for delivery on the date of determination in same day funds in the approximate amount of the Base Rate Loan being made or maintained and with a term equal to one month would be offered by Credit Suisse’s London Branch to major banks in the London interbank Eurodollar market at their request at the date and time of determination; provided, in each case, that Eurodollar Rate shall not be less than 0.75% per annum.

Eurodollar Rate Loans” shall mean any Loans or portion thereof on which interest is payable based on the Eurodollar Rate in accordance with the terms hereof.

Event of Default” shall mean the occurrence and continuation or existence of any event or condition described in Section 11.1 hereof after giving effect to the giving of any notice or any passage of time or both specified in such section with respect to such event or condition.

 

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Excess Cash Flow” shall mean, for any period, an amount equal to:

(a) the sum, without duplication, of

(i) Consolidated Net Income for such period,

(ii) an amount equal to the amount of all Consolidated Non-cash Charges to the extent deducted in arriving at such Consolidated Net Income,

(iii) decreases in Consolidated Working Capital of the Albertson’s Group for such period (other than any such decreases arising from acquisitions or dispositions by the Albertson’s Group completed during such period including, without limitation, as a result of the Transactions), and

(iv) an amount equal to the aggregate net non-cash loss on Dispositions by the Albertson’s Group during such period (other than sales in the ordinary course of business) to the extent deducted in arriving at such Consolidated Net Income minus

(b) the sum, without duplication, of

(i) an amount equal to the amount of all non-cash credits included in arriving at such Consolidated Net Income and cash charges excluded pursuant to clauses (1) through (10) of the definition of “Consolidated Net Income,”

(ii) without duplication of amounts deducted pursuant to clause (xi) below in prior Fiscal Years, the amount of Capital Expenditures accrued or made in cash during such period, to the extent that such Capital Expenditures or acquisitions were financed with Internally Generated Cash,

(iii) the aggregate amount of all principal payments of Indebtedness of the Albertson’s Group (including (A) the principal component of payments in respect of Capital Leases and (B) the amount of any scheduled repayment of Loans pursuant to Section 2.2 and any mandatory prepayment of Term Loans pursuant to Section 2.3(b)(ii) to the extent required due to a Disposition that resulted in an increase to Consolidated Net Income and not in excess of the amount of such increase, but excluding (X) all other voluntary and mandatory prepayments of Loans and (Y) all payments in respect of the ABL Credit Agreement or any other revolving credit facility made during such period (except to the extent there is an equivalent permanent reduction in commitments thereunder), to the extent financed with Internally Generated Cash,

(iv) an amount equal to the aggregate net non-cash gain on Dispositions by the Albertson’s Group during such period (other than Dispositions in the ordinary course of business) to the extent included in arriving at such Consolidated Net Income,

(v) increases in Consolidated Working Capital of the Albertson’s Group for such period (other than any such increases arising from acquisitions or dispositions by the Albertson’s Group during such period including, without limitation, as a result of the Transactions),

(vi) scheduled cash payments by the Albertson’s Group during such period in respect of long-term liabilities of the Albertson’s Group other than Indebtedness,

 

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(vii) without duplication of amounts deducted pursuant to clause (xi) below in prior Fiscal Years, the amount of Investments and acquisitions made during such period by the Albertson’s Group pursuant to Section 10.2, and any expense for deferred compensation and bonuses, deferred purchase price or earn-out obligations paid in cash in connection with any such Investments or acquisitions, to the extent that such Investments and acquisitions were financed with Internally Generated Cash,

(viii) the amount of Restricted Payments paid during such period pursuant to Sections 10.6(e), 10.6(f)(x), 10.6(g) and 10.6(h) to the extent such Restricted Payments were financed with Internally Generated Cash,

(ix) the aggregate amount of expenditures actually made by the Albertson’s Group with Internally Generated Cash during such period (including expenditures for the payment of financing fees) to the extent that such expenditures are not expensed during such period,

(x) the aggregate amount of any premium, make-whole or penalty payments actually paid in cash by the Albertson’s Group during such period that are required to be made in connection with any prepayment of Indebtedness,

(xi) without duplication of amounts deducted from Excess Cash Flow in prior periods, the aggregate consideration including related fees and expenses required to be paid in cash by the Albertson’s Group pursuant to binding contracts or executed letters of intent (the “Contract Consideration”) entered into prior to or during such period relating to acquisitions and Investments permitted pursuant to Section 10.2, Permitted Acquisitions or Capital Expenditures or acquisitions of intellectual property to be consummated or made to the extent not expensed, plus any restructuring cash expenses, pension payments or tax contingency payments that have been added to Excess Cash Flow pursuant to clause (a)(ii) above required to be made, in each case during the period of four consecutive fiscal quarters of Holdings following the end of such period; provided that to the extent the aggregate amount of Internally Generated Cash actually utilized to finance such acquisitions, Investments, Permitted Acquisitions, Capital Expenditures or acquisitions of Intellectual Property during such period of four consecutive fiscal quarters is less than the Contract Consideration, the amount of such shortfall shall be added to the calculation of Excess Cash Flow at the end of such period of four consecutive fiscal quarters,

(xii) the amount of cash taxes paid in such period to the extent they exceed the amount of tax expense deducted in determining Consolidated Net Income for such period and any cash taxes to be paid within six months after the close of such Excess Cash Flow Period, (xiii) cash expenditures in respect of Swap Contracts during such Fiscal Year to the extent not deducted in arriving at such Consolidated Net Income and

(xiii) any payment of cash to be amortized or expensed over a future period and recorded as a long-term asset.

Notwithstanding anything 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 the Albertson’s Group on a consolidated basis.

 

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Excess Cash Flow Period” shall mean each Fiscal Year of Holdings commencing with and including the Fiscal Year ending February 26, 2015 (but in the case of the Fiscal Year ending February 26, 2015, the period starting on the first day of the first full Quarterly Accounting Period commencing after the Escrow Release Date and ending February 26, 2015).

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

Exchange 2016-1 Term B-4 Commitment” means, with respect to a 2016-1 Term B-4 Lender, the agreement of such 2016-1 Term B-4 Lender to exchange the entire principal amount of its 2016-1 Term B-4 Loans (or such lesser amount allocated to it by the Administrative Agent) for an equal principal amount of Exchange 2016-2 Term B-4 Loans on the Amendment No. 5 (2016-2) Effective Date.

Exchange 2016-1 Term B-4 Lender” means a 2016-1 Term B-4 Lender with an Exchange 2016-1 Term B-4 Commitment to exchange 2016-1 Term B-4 Loans into Exchange 2016-2 Term B-4 Loans on the Amendment No. 5 (2016-2) Effective Date.

Exchange 2016-1 Term B-4 Loan” means a Loan that is deemed made pursuant to Section 2.1(b).

Exchange 2016-1 Term B-5 Commitment” means, with respect to a 2016-1 Term B-5 Lender, the agreement of such 2016-1 Term B-5 Lender to exchange the entire principal amount of its 2016-1 Term B-5 Loans (or such lesser amount allocated to it by the Administrative Agent) for an equal principal amount of Exchange 2016-2 Term B-5 Loans on the Amendment No. 5 (2016-2) Effective Date.

Exchange 2016-1 Term B-5 Lender” means a 2016-1 Term B-5 Lender with an Exchange 2016-1 Term B-5 Commitment to exchange 2016-1 Term B-5 Loans into Exchange 2016-2 Term B-5 Loans on the Amendment No. 5 (2016-2) Effective Date.

Exchange 2016-1 Term B-5 Loan” means a Loan that is deemed made pursuant to Section 2.1(c).

Exchange 2016-1 Term B-6 Commitment” means, with respect to a 2016-1 Term B-6 Lender, the agreement of such 2016-1 Term B-6 Lender to exchange the entire principal amount of its 2016-1 Term B-6 Loans (or such lesser amount allocated to it by the Administrative Agent) for an equal principal amount of Exchange 2017-1 Term B-6 Loans on the Amendment No. 6 (2017-1) Effective Date.

Exchange 2016-1 Term B-6 Lender” means a 2016-1 Term B-6 Lender with an Exchange 2016-1 Term B-6 Commitment to exchange 2016-1 Term B-6 Loans into Exchange 2017-1 Term B-6 Loans on the Amendment No. 6 (2017-1) Effective Date.

Exchange 2016-1 Term B-6 Loan” means a Loan that is deemed made pursuant to Section 2.1(g).

Exchange 2016-2 Term B-4 Commitment” means, with respect to a 2016-2 Term B-4 Lender, the agreement of such 2016-2 Term B-4 Lender to exchange the entire principal amount of its 2016-2 Term B-4 Loans (or such lesser amount allocated to it by the Administrative Agent) for an equal principal amount of Exchange 2017-1 Term B-4 Loans on the Amendment No. 6 (2017-1) Effective Date.

 

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Exchange 2016-2 Term B-4 Lender” means a 2016-2 Term B-4 Lender with an Exchange 2016-2 Term B-4 Commitment to exchange 2016-2 Term B-4 Loans into Exchange 2017-1 Term B-4 Loans on the Amendment No. 6 (2017-1) Effective Date.

Exchange 2016-2 Term B-4 Loan” means a Loan that is deemed made pursuant to Section 2.1(e).

Exchange 2016-2 Term B-5 Commitment” means, with respect to a 2016-2 Term B-5 Lender, the agreement of such 2016-2 Term B-5 Lender to exchange the entire principal amount of its 2016-2 Term B-5 Loans (or such lesser amount allocated to it by the Administrative Agent) for an equal principal amount of Exchange 2017-1 Term B-5 Loans on the Amendment No. 6 (2017-1) Effective Date.

Exchange 2016-2 Term B-5 Lender” means a 2016-2 Term B-5 Lender with an Exchange 2016-2 Term B-5 Commitment to exchange 2016-2 Term B-5 Loans into Exchange 2017-1 Term B-5 Loans on the Amendment No. 6 (2017-1) Effective Date.

Exchange 2016-2 Term B-5 Loan” means a Loan that is deemed made pursuant to Section 2.1(f).

Exchange 2017-1 Term B-4 Commitment means, with respect to a 2017-1 Term B-4 Lender, the agreement of such 2017-1 Term B-4 Lender to exchange the entire principal amount of its 2017-1 Term B-4 Loans (or such lesser amount allocated to it by the Administrative Agent) for an equal principal amount of Exchange 2018 Term B-7 Loans on the Amendment No. 7 (2018) Effective Date.

Exchange 2017-1 Term B-4 Lender means a 2017-1 Term B-4 Lender with an Exchange 2017-1 Term B-4 Commitment to exchange 2017-1 Term B-4 Loans into Exchange 2018 Term B-7 Loans on the Amendment No. 7 (2018) Effective Date.

Exchange 2017-1 Term B-4 Loan” means a Loan that is deemed made pursuant to Section 2.1(h).

Exchange 2017-1 Term B-5 Loan” means a Loan that is deemed made pursuant to Section 2.1(i).

Exchange 2017-1 Term B-6 Loan” means a Loan that is deemed made pursuant to Section 2.1(j).

Exchange 2018 Term B-7 Loan means a Loan that is deemed made pursuant to Section 2.1(k).

Exchange Term B-2/B-3 Commitment” means, with respect to a Term B-2 Lender or a Term B-3 Lender, the agreement of such Term B-2 Lender or Term B-3 Lender to exchange the entire principal amount of its Term B-2 Loans and/or or Term B-3 Loans (or, in each case, such lesser amount allocated to it by the Administrative Agent) for an equal principal amount of Exchange Term B-6 Loans on the Amendment No. 4 (B-6) Effective Date.

Exchange Term B-2 Lender” means a Term B-2 Lender with an Exchange Term B-2/B-3 Commitment to exchange its Term B-2 Loans into Exchange Term B-6 Loans on the Amendment No. 4 (B-6) Effective Date.

 

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Exchange Term B-3 Lender” means a Term B-3 Lender with an Exchange Term B-2/B-3 Commitment to exchange Term B-3 Loans into Exchange Term B-6 Loans on the Amendment No. 4 (B-6) Effective Date.

Exchange Term B-4 Commitment” means, with respect to a Term B-4 Lender, the agreement of such Term B-4 Lender to exchange the entire principal amount of its Term B-4 Loans (or such lesser amount allocated to it by the Administrative Agent) for an equal principal amount of Exchange 2016-1 Term B-4 Loans on the Amendment No. 4 (B-6) Effective Date.

Exchange Term B-4 Lender” means a Term B-4 Lender with an Exchange Term B-4 Commitment to exchange Term B-4 Loans into Exchange 2016-1 Term B-4 Loans on the Amendment No. 4 (B-6) Effective Date.

Exchange Term B-5 Commitment” means, with respect to a Term B-5 Lender, the agreement of such Term B-5 Lender to exchange the entire principal amount of its Term B-5 Loans (or such lesser amount allocated to it by the Administrative Agent) for an equal principal amount of Exchange 2016-1 Term B-5 Loans on the Amendment No. 4 (B-6) Effective Date.

Exchange Term B-5 Lender” means a Term B-5 Lender with an Exchange Term B-5 Commitment to exchange Term B-5 Loans into Exchange 2016-1 Term B-5 Loans on the Amendment No. 4 (B-6) Effective Date.

Exchange Term B-6 Commitment” means, with respect to a Term B-6 Lender, the agreement of such Term B-6 Lender to exchange the entire principal amount of its Term B-6 Loans (or such lesser amount allocated to it by the Administrative Agent) for an equal principal amount of Exchange 2016-1 Term B-6 Loans on the Amendment No. 5 (2016-2) Effective Date.

Exchange Term B-6 Lender” means a Term B-6 Lender with an Exchange Term B-6 Commitment to exchange Term B-6 Loans into Exchange 2016-1 Term B-6 Loans on the Amendment No. 5 (2016-2) Effective Date.

Exchange Term B-6 Loan” means a Loan that is deemed made pursuant to Section 2.1(d).

Exchanged 2016-1 Term B-4 Loan” means each 2016-1 Term B-4 Loan as to which the Lender thereof has consented to exchange into an Exchange 2016-2 Term B-4 Loan and the Administrative Agent has allocated into an Exchange 2016-2 Term B-4 Loan.

Exchanged 2016-1 Term B-5 Loan” means each Term 2016-1 B-5 Loan as to which the Lender thereof has consented to exchange into an Exchange 2016-2 Term B-5 Loan and the Administrative Agent has allocated into an Exchange 2016-2 Term B-5 Loan.

Exchanged 2016-1 Term B-6 Loan” means each 2016-1 Term B-6 Loan as to which the Lender thereof has consented to exchange into an Exchange 2017-1 Term B-6 Loan and the Administrative Agent has allocated into an Exchange 2017-1 Term B-6 Loan.

Exchanged 2016-2 Term B-4 Loan” means each 2016-2 Term B-4 Loan as to which the Lender thereof has consented to exchange into an Exchange 2017-1 Term B-4 Loan and the Administrative Agent has allocated into an Exchange 2017-1 Term B-4 Loan.

 

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Exchanged 2016-2 Term B-5 Loan” means each 2016-2 Term B-5 Loan as to which the Lender thereof has consented to exchange into an Exchange 2017-1 Term B-5 Loan and the Administrative Agent has allocated into an Exchange 2017-1 Term B-5 Loan.

Exchanged 2017-1 Term B-4 Loan means each 2017-1 Term B-4 Loan as to which the Lender thereof has consented to exchange into an Exchange 2018 Term B-7 Loan and the Administrative Agent has allocated into an Exchange 2018 Term B-7 Loan.

Exchanged Term B-2 Loan” means each Term B-2 Loan as to which the Lender thereof has consented to exchange into an Exchange Term B-6 Loan and the Administrative Agent has allocated into an Exchange Term B-6 Loan.

Exchanged Term B-3 Loan” means each Term B-3 Loan as to which the Lender thereof has consented to exchange into an Exchange Term B-6 Loan and the Administrative Agent has allocated into an Exchange Term B-6 Loan.

Exchanged Term B-4 Loan” means each Term B-4 Loan as to which the Lender thereof has consented to exchange into an Exchange 2016-1 Term B-4 Loan and the Administrative Agent has allocated into an Exchange 2016-1 Term B-4 Loan.

Exchanged Term B-5 Loan” means each Term B-5 Loan as to which the Lender thereof has consented to exchange into an Exchange 2016-1 Term B-5 Loan and the Administrative Agent has allocated into an Exchange 2016-1 Term B-5 Loan.

Exchanged Term B-6 Loan” means each Term B-6 Loan as to which the Lender thereof has consented to exchange into an Exchange 2016-1 Term B-6 Loan and the Administrative Agent has allocated into an Exchange 2016-1 Term B-6 Loan.

Excluded Contributions” means the net cash proceeds, property or assets received by Holdings or its Restricted Subsidiaries from:

(1) contributions to its common equity capital, and

(2) the issuance or sale (other than to a Restricted Subsidiary of Holdings or to Holdings or Restricted Subsidiary management equity plan or stock option plan or any other management or employee benefit plan or agreement) of Equity Interests of Holdings.

Excluded Property” has the meaning ascribed to such term in the Security Agreement.

Excluded Subsidiary” shall mean (a) any Immaterial Subsidiary, (b) any Subsidiary acquired following the Original Closing Date that is prohibited from guaranteeing the Obligations by applicable Law or Contractual Obligations that are in existence at the time of acquisition and not entered into in contemplation thereof or if guaranteeing the Obligation would require governmental (including regulatory) consent, approval, license or authorization (unless such consent, approval license or authorization has been obtained), (c) any Foreign Subsidiary, (d) any Domestic Subsidiary that is treated as a disregarded entity for U.S. federal income tax purposes and that has no material assets other than the stock of one or more Foreign Subsidiaries that are CFCs, (e) any Domestic Subsidiary that is a Subsidiary of a Foreign Subsidiary, (f) any non-for-profit Subsidiaries, (g) any Unrestricted Subsidiaries, (h) any special purpose securitization vehicle (or similar entity), including any Receivables Subsidiary, (i) any Real Estate Financing Loan Party, (j) at Parent Borrower’s election, any Domestic Subsidiary that is not a wholly owned Subsidiary of Holdings, (k) any Captive Insurance Subsidiary, and (l) any other

 

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Subsidiary with respect to which, in the reasonable judgment of the Agent and the Parent Borrower, the burden or cost (including any adverse tax consequences) of providing the guarantee shall outweigh the benefits to be obtained by the Lenders therefrom; provided that no Subsidiary that guarantees the ABL Credit Agreement, Permitted Ratio Debt, Incremental Equivalent Debt, Credit Agreement Refinancing Indebtedness or any other Junior Financing shall be deemed to be an Excluded Subsidiary at any time any such guarantee is in effect; provided further that in no event shall any Co-Borrower be an Excluded Subsidiary.

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 under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder (determined after giving any “keepwell, support or other agreement” for the benefit of such Guarantor and any and all guarantees of such Guarantor’s Swap Obligations by other Loan Parties) at the time such guarantee or grant of a security interest by such Guarantor becomes effective with respect to such Swap Obligation. If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such guarantee or security interest is or becomes excluded in accordance with the first sentence of this definition.

Excluded Taxes” shall mean, with respect to any Agent, any Lender, or any other recipient of any payment to be made by or on account of any obligation of any Loan Party hereunder or under any other Financing Agreement, (a) taxes imposed on or measured by such recipient’s net income (however denominated), franchise taxes and branch profits taxes, in each case imposed by a jurisdiction as a result of such recipient being organized or having its principal office located in or, in the case of any Lender, having its applicable Lending Office located in, such jurisdiction or as a result of any other present or former connection between such recipient and such jurisdiction (other than a connection arising from such recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to, and/or enforced, any Financing Agreements, or sold or assigned any interest in any Loan or Financing Agreement), (b) in the case of a Lender (other than any Lender becoming a party hereto pursuant to a request by any Loan Party under Section 6.2), any U.S. federal withholding tax that is imposed on amounts payable to such Lender pursuant to a law in effect at the time such Lender becomes a party hereto (or designates a new Lending Office), except 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 the Loan Parties with respect to such withholding tax pursuant to Section 6.1, (c) any taxes attributable to a Lender’s failure to comply with Section 6.1(d), and (d) any U.S. federal withholding taxes imposed under FATCA.

Executive Order” shall have the meaning set forth in Section 8.20.

Existing Debt Facility” shall mean the Term Loan Agreement, dated as of March 21, 2013, by and among the Parent Borrower, Holdings, the guarantors party thereto, the lenders party thereto and Citibank, N.A., as agent, as amended, restated, amended and restated or otherwise modified before the Escrow Release Date.

Existing Mortgaged Property” shall mean each Mortgaged Property encumbered by a Mortgage as of the date hereof.

 

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Existing Safeway Debentures” shall mean, to the extent not otherwise retired, repaid, redeemed, discharged or defeased, Safeway’s 7.45% Debentures due 2027 and 7.25% Debentures due 2031.

Existing Safeway Notes” shall mean, to the extent not otherwise retired, repaid, redeemed, discharged or defeased, Safeway’s 5.00% Senior Notes due 2019, 3.95% Notes due 2020, 4.75% Senior Notes due 2021 and not more than $80,000,000 in principal amount of Safeway’s 3.40% Senior Notes due 2016 and not more than $100,000,000 in principal amount of Safeway’s 6.35% Senior Notes due 2017.

Existing Term Loan Tranche” shall have the meaning set forth in Section 2.10(a) hereto.

Existing Term Loans” shall have the meaning set forth in Section 2.10(a) hereto.

Extended Term Loan” shall have the meaning set forth in Section 2.10(a) hereto.

Extending Term Lender” shall have the meaning set forth in Section 2.10(b) hereto.

Extension Amendment” shall have the meaning set forth in Section 2.10(c) hereto.

Extension Election” shall have the meaning set forth in Section 2.10(b) hereto.

Facility” shall mean the Term B-2 Loans, the Term B-3 Loans, the Term B-4 Loans, the Term B-5 Loans, the 2016-1 Term B-4 Loans, the 2016-2 Term B-4 Loans, the 2017-1 Term B-4 Loans, the 2016-1 Term B-5 Loans, the 2016-2 Term B-5 Loans, 2017-1 Term B-5 Loans, the Term B-6 Loans, the 2016-1 Term B-6 Loans, 2017-1 Term B-6 Loans, 2018 Term B-7 Loans, a given Refinancing Series of Refinancing Term Loans, a given Term Loan Extension Series of Extended Term Loans or a given Class of Incremental Term Loans, as the context may require.

Fair Market Value” shall mean, with respect to any asset or property, the price which could be negotiated in an arm’s-length, free market transaction, for cash, between a willing seller and a willing and able buyer, neither of whom is under undue pressure or compulsion to complete the transaction as determined by the Parent Borrower in its good faith discretion. Fair Market Value may be (but need not be) conclusively established by means of an officer’s certificate or resolutions of the Board of Directors of the Parent Borrower setting out such Fair Market Value as determined by such Officer or such Board of Directors in good faith.

Farm Products” shall mean crops, livestock, supplies used or produced in a farming operation and products of crops or livestock and including farm products as such term is defined in the Food Security Act and the UCC.

FATCA” shall mean Sections 1471 through 1474 of the Code as in effect on the Original Closing Date (and as amended or successor version thereof that is substantively comparable and not materially more onerous to comply with), any current or future United States Treasury Department regulations or other official administrative interpretations thereof, any agreements entered into pursuant to Section 1471(b) of the current Code (or any amended or successor version described above) and any intergovernmental agreements (and any related laws or official administrative guidance) implementing the foregoing.

Federal Funds Effective Rate” shall mean on any day, the rate per annum (rounded upward, if necessary, to the next higher 1/100th of 1%) equal to the weighted average of the rates on overnight

 

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federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day, provided that (i) if the day for which such rate is to be determined is not a Business Day, the Federal Funds Effective Rate for such day shall be such rate on such transactions on the next succeeding Business Day, and (ii) if such rate is not so published for any day, the Federal Funds Effective Rate for such day shall be the average rate charged to Credit Suisse on such day on such transactions, as determined in good faith by Credit Suisse.

Fee Letter” shall mean the second amended and restated Fee Letter agreement, dated April 3, 2014, as amended on April 24, 2014, by and among Holdings, the Arrangers, the Co-Documentation Agents, Bank of America, N.A., Credit Suisse, Deutsche Bank AG Cayman Islands Branch, Deutsche Bank AG New York Branch, PNC Bank National Association, U.S. Bancorp Investments, Inc., U.S. Bank National Association and SunTrust Bank.

Financing Agreements” shall mean, collectively, this Agreement, the Collateral Documents, and all notes, guarantees, security agreements, deposit account control agreements, investment property control agreements, other intercreditor agreements and all other agreements, documents and instruments now or at any time hereafter executed and/or delivered by any Loan Party in connection with this Agreement.

Fiscal Intermediary” shall mean any qualified insurance company or other Person that has entered into an ongoing relationship with any Governmental Authority to make payments to payees under Medicare, Medicaid or any other federal, state or local public health care or medical assistance program pursuant to any of the Health Care Laws.

Fiscal Month” shall mean any four (4) week Accounting Period of Holdings.

Fiscal Year” shall mean, subject to Section 10.10, any period of 13 consecutive Accounting Periods ending on or about the Thursday closest to the last day of February of each calendar year.

Fixtures” shall have the meaning set forth in the UCC.

Flood Insurance Laws” means, collectively, (i) the National Flood Insurance Act of 1968, (ii) the Flood Disaster Protection Act of 1973, (iii) the National Flood Insurance Reform Act of 1994, (iv) the Flood Insurance Reform Act of 2004, (v) the Biggert-Waters Flood Insurance Reform Act of 2012 and (vi) the Homeowner Flood Insurance Affordability Act of 2014, as now or hereafter in effect, or, in each case, any successor statute thereto.

Food Security Act” shall mean the Food Security Act of 1985, 7 U.S.C. Section 1631 et. seq., as the same now exists or may hereafter from time to time be amended, modified, recodified or supplemented, together with all rules and regulations thereunder.

Foreign Assets Control Regulations” shall have the meaning set forth in Section 8.20 hereto.

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

Foreign Subsidiary” shall mean any Subsidiary of a Borrower which is not a Domestic Subsidiary.

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

 

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Fund” shall mean any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans, bonds and similar extensions of credit in the ordinary course of its business.

Funding Bank” shall have the meaning set forth in Section 3.3(a) hereof.

GAAP” shall mean generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied.

Governmental Authority” shall mean any nation or government, any state, county, provincial, municipal, local or other political subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, and any agency, authority or instrumentality (including any bilateral or multilateral agency authority or instrumentality formed by treaty) exercising executive, legislative, judicial, regulatory, administrative, military, peacekeeping or police powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

Granting Lender” shall have the meaning set forth in Section 14.7(k) hereto.

Guaranteed Obligations” shall have the meaning set forth in Section 14.12(a) hereto.

Guarantor Allocable Percentage” shall have the meaning set forth in Section 14.12(c)(ii) hereof.

Guarantors” shall mean Holdings and the Subsidiaries of Holdings (other than any (i) Restricted Subsidiary that has been designated as a Co-Borrower and (ii) Excluded Subsidiary) and any other Subsidiary that issues a Guarantee of the Obligations after the Escrow Release Date.

Guaranty” shall mean, collectively, the guaranty of the Guaranteed Obligations by the Guarantors pursuant to Section 14.12 of this Agreement.

Hazardous Materials” shall mean all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature which in each case are regulated pursuant to, or which could not reasonably be expected to result in liability under, any Environmental Law.

Health Care Laws” shall mean all federal, state and local laws, rules, regulations, interpretations, guidelines, ordinances and decrees primarily relating to patient healthcare, any health care provider, medical assistance and cost reimbursement program, as now or at any time hereafter in effect, including, but not limited to, the Social Security Act, the Social Security Amendments of 1972, the Medicare-Medicaid Anti-Fraud and Abuse Amendments of 1977, the Medicare and Medicaid Patient and Program Protection Act of 1987, HIPAA, the Federal False Claim Act, the Federal Anti-Kickback Statute, and the Patient Protection and Afford Care Act, as amended.

Hedging Obligations” shall mean, with respect to any Person, the obligations of such Person under (1) currency exchange, interest rate or commodity swap agreements, currency exchange, interest

 

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rate or commodity cap agreements and currency exchange, interest rate or commodity collar agreements and (2) other agreements or arrangements designed to protect such Person against fluctuations in currency exchange, interest rates or commodity prices.

HIPAA” shall mean the Health Insurance Portability and Accountability Act of 1996, as amended by the Health Information, Technology, Economic and Clinical Health Act of 2009 (HITECH), as the same now exists or may hereafter from time to time be amended, modified, recodified or supplemented, together with all rules and regulations thereunder.

HIPAA Compliance Date” has the meaning set forth in Section 8.29 hereto.

HIPAA Compliance Plan” has the meaning set forth in Section 8.29 hereto.

HIPAA Compliant” has the meaning set forth in Section 8.29 hereto.

Holdings” shall have the meaning assigned to such term in the introductory paragraph herein.

Immaterial Subsidiary” means each Restricted Subsidiary designated in writing by the Parent Borrower to the Agent at any time or from time to time as an Immaterial Subsidiary, that, as of the last day of the Fiscal Year of Holdings most recently ended, or, if organized or acquired after the end of such Fiscal Year, at the date of designation, had revenues or total assets for such year in an amount that is less than 2.0% of the consolidated revenues or total assets, as applicable, of Holdings and its Restricted Subsidiaries for such year (which, for any Immaterial Subsidiary or proposed Immaterial Subsidiary organized or acquired since such date, shall be determined on a pro forma basis as if such Subsidiary were in existence or acquired on such date); provided that all such Immaterial Subsidiaries, taken together, as of the last day of the Fiscal Year of Holdings most recently ended, shall not have revenues or total assets for such year in an amount that is equal to or greater than 5.0% of the consolidated revenues or total assets, as applicable, of Holdings and its Restricted Subsidiaries for such year (which, for any Immaterial Subsidiary or proposed Immaterial Subsidiary organized or acquired since such date, shall be determined on a pro forma basis as if such Subsidiary were in existence on such date). Any Restricted Subsidiary that executes a Guarantee of the Obligations shall not be deemed an Immaterial Subsidiary and shall be excluded from the calculations above.

Increased Amount Date” shall have the meaning set forth in Section 2.8(a) hereto.

Incremental Amendment” shall mean an Incremental Amendment among the applicable Borrower, the Agent and one or more Incremental Term Lenders entered into pursuant to Section 2.8.

Incremental Amount” shall mean the sum of (x) (i) $750,000,000 plus voluntary prepayments of the Loans (other than prepayments funded with the proceeds of long-term Indebtedness (other than the prepayment of the Term B-2 Loans and Term B-3 Loans prior to the Amendment No. 4 (B-6) Effective Date)) pursuant to Section 2.3(a) or (c) made on or prior to the date of determination (plus accrued interest, fees, premiums (if any) and penalties thereon and reasonable fees and expenses associated with such voluntary prepayments), plus (y) an unlimited amount as long as, at the time of the incurrence and after giving pro forma effect thereto, the Consolidated First Lien Net Leverage Ratio would be less than 3.75:1.00 (assuming that all Incremental Term Loans are secured on a first-priority basis whether or not so secured and shall be deemed to constitute Consolidated Total Debt and excluding the cash proceeds of any such Incremental Term Loans for the purposes of netting) with the Parent Borrower being permitted to determine whether the Incremental Term Loan Commitments are obtained under clause (x) or (y) of this definition; minus (z) the aggregate outstanding principal amount of Incremental Equivalent Debt; provided that at the time of incurrence in no event shall the aggregate principal amount of Incremental

 

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Term Loans together with the principal amount of Incremental Equivalent Debt exceed such Incremental Amount.

Incremental Equivalent Debt” shall mean secured or unsecured Indebtedness of the Albertsons Group in the form of senior secured first lien term loans or notes or junior lien term loans or notes, subordinated term loans or notes or senior unsecured term loans or notes, or any bridge facility; provided that: (a) the terms of such debt securities do not provide for any scheduled repayment, mandatory redemption or sinking fund obligations prior to the Latest Maturity Date at the time of incurrence of such debt securities (other than customary offers to repurchase upon a change of control, asset sale or event of loss and customary acceleration rights after an event of default), (b) other than with respect to a customary bridge facility, the covenants, events of default, guarantees, collateral and other terms of which (other than interest rate and redemption premiums), taken as a whole, are not more restrictive to the Parent Borrower and its Restricted Subsidiaries than those in this Agreement unless (i) the Term Lenders holding the Term B Loans also receive the benefit of such restrictive terms, (ii) such terms are not effective until the Latest Maturity Date of the then existing Term B Loans or (iii) such other terms are reasonably satisfactory to the Agent; provided that a certificate of a Responsible Officer of the Parent Borrower delivered to the Agent at least three Business Days (or such shorter period as the Agent may reasonably agree) prior to the incurrence of such Incremental Equivalent Debt, stating that the Parent Borrower has determined in good faith that such terms and conditions satisfy the foregoing requirement shall be conclusive evidence that such terms and conditions satisfy the foregoing requirement, (c) no Subsidiary of Holdings (other than the Parent Borrower, a Co-Borrower or Guarantor) shall be an obligor, (d) no Incremental Equivalent Debt shall be secured by any collateral other than the Collateral, (e) such Indebtedness has an aggregate principal amount not to exceed the Incremental Amount as of the date of incurrence and (f) such Incremental Equivalent Debt shall be subject to the requirements set forth in the second proviso of Section 2.8(b) to the extent such Indebtedness is in the form of term loans (other than a customary bridge facility) that are secured on a pari passu basis with the Term Loans.

Incremental Term Lender” shall mean a Lender with an Incremental Term Loan Commitment or an outstanding Incremental Term Loan.

Incremental Term Loan Commitment” shall mean the commitment of any Lender, established pursuant to Section 2.8, to make Incremental Term Loans to a Borrower.

Incremental Term Loans” shall mean Terms Loans made by one or more Lenders to a Borrower pursuant to Section 2.8. Incremental Term Loans may be made in the form of additional Term Loans or, to the extent permitted by Section 2.8 and provided for in the relevant Incremental Amendment, Other Term Loans.

Incur” shall mean issue, assume, guarantee, incur or otherwise become liable for; provided, however, that any Indebtedness or Equity Interests 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.

Indebtedness” shall mean, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

(a) all obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

 

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(b) the maximum amount of all direct or contingent obligations of such Person arising under letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar instruments;

(c) all obligations of such Person to pay the deferred purchase price of property or services (other than trade payables and similar obligations) which purchase price is due more than one year after the later of the date of placing the property in service or taking delivery and title thereto;

(d) indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by such Person (including indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse; provided, however, that the amount of such Indebtedness will be the lesser of the Fair Market Value of such asset at such date of determination, and the amount of such Indebtedness of such other Person;

(e) all Attributable Indebtedness of such Person;

(f) all obligations of such Person in respect of Disqualified Stock; and

(g) to the extent not otherwise included, any obligation of such Person to be liable for, or to pay, as obligor, guarantor or otherwise, on the Indebtedness of another Person of the type described in clauses (a) through (f) (other than by endorsement of negotiable instruments for collection in the ordinary course of business);

; provided, that obligations under or in respect of Receivables Financings or Hedging Obligations shall be deemed not to constitute Indebtedness. The amount of any Indebtedness that has been defeased or for which funds have been irrevocably deposited with the applicable trustee for redemption shall be deemed to be $0. Accrual of interest, the accretion of accreted value, the amortization or accretion of original issue discount, the payment of interest in the form of additional Indebtedness with the same terms, the accretion of liquidation preference and increases in the amount of Indebtedness outstanding solely as a result of fluctuations in the exchange rate of currencies will not be deemed to be Indebtedness. Guarantees of, or obligations in respect of letters of credit bankers’ acceptances or similar instruments relating to, or Liens securing, Indebtedness which is otherwise included in the determination of a particular amount of Indebtedness shall not be included in the determination of such amount of Indebtedness, provided that the Incurrence of the Indebtedness represented by such guarantee or letter of credit, as the case may be, was in compliance with this covenant. Indebtedness that is cash collateralized shall not be deemed to be Indebtedness hereunder to the extent of such cash collateralization.

Indemnified Taxes” shall mean all Taxes other than Excluded Taxes.

Indemnitee” shall have the meaning set forth in Section 12.5 hereof.

Independent Financial Advisor” shall mean an accounting, appraisal or investment banking firm of nationally recognized standing.

Information” shall have the meaning set forth in Section 14.5(a) hereto.

Intellectual Property” shall mean United States and non-United States: (a) patents and patent applications; (b) trademarks, service marks, trade names, trade dress, business names, designs, logos, indicia of origin, and other source and/or business identifiers; (c) Internet domain names and associated

 

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websites; (d) copyrights, including copyrights in computer software; (e) industrial designs, databases, data, trade secrets, know-how, technology, unpatented inventions and other confidential or proprietary information; (f) all registrations or applications for registrations which have heretofore been or may hereafter be issued thereon throughout the world; (g) all tangible and intangible property embodying the copyrights and unpatented inventions (whether or not patentable); (h) license agreements related to any of the foregoing and income therefrom; (i) books, records, writings, computer tapes or disks, flow diagrams, specification sheets, computer software, source codes, object codes, executable code, data, databases and other physical manifestations, embodiments or incorporations of any of the foregoing; (j) all other intellectual property; and (k) all common law and other rights throughout the world in and to all of the foregoing.

Intercreditor Agreements” shall mean the ABL Intercreditor Agreement together with the Term Loan Intercreditor Agreement.

Interest Coverage Ratio” shall mean, as of any date of determination, the ratio of (a) EBITDA to (b) Consolidated Interest Expense, in each case, of the Albertson’s Group for the most recently ended Test Period on or prior to such date.

Interest Period” shall mean, as to each Eurodollar Rate Loan, the period commencing on the date such Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar Rate Loan and ending on the date one week or one, two, three or six months thereafter or, to the extent agreed by each Lender of such Eurodollar Rate Loan, twelve months, as selected by the applicable Borrower in its Committed Loan Notice; provided that, notwithstanding the foregoing, any Interest Period may end on a date that is less than one week from the commencement of such period if mutually agreed upon by the Parent Borrower and Agent; provided further.

(i) any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day;

(ii) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; and

(iii) no Interest Period shall extend beyond the Maturity Date of the Facility under which such Loan was made.

Interest Rate” shall mean,

(a) Subject to clause (b) of this definition below:

(i) as to Base Rate Loans, a rate equal to the then Applicable Margin for Base Rate Loans under the applicable Facility on a per annum basis plus the Base Rate, and

(ii) as to Eurodollar Rate Loans, a rate equal to the then Applicable Margin for Eurodollar Rate Loans under the applicable Facility on a per annum basis plus the Eurodollar Rate.

 

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(b) Notwithstanding anything to the contrary contained herein, Agent may, at its option, and Agent shall, at the direction of the Required Lenders, increase the Applicable Margin otherwise used to calculate the Interest Rate for Base Rate Loans and Eurodollar Rate Loans, by two percent (2%) per annum, with respect to any portion of the Loans and other Obligations outstanding that is not paid on the due date thereof (whether due at stated maturity, on demand, upon acceleration or otherwise) until such amount due is paid in full.

Internally Generated Cash” shall mean, with respect to any Person, cash funds of such Person and its Restricted Subsidiaries not constituting (x) proceeds of the issuance of (or contributions in respect of) Equity Interests of such Person and (y) proceeds of the incurrence of Indebtedness (other than extensions of credit under the ABL Facility or any other revolving credit or similar facility) by such Person or any of its Restricted Subsidiaries.

Inventory” has the meaning given that term in the UCC, and shall also include, without limitation, all: (a) goods which (i) are leased by a Person as lessor, (ii) are held by a Person for sale or lease or to be furnished under a contract of service, (iii) are furnished by a Person under a contract of service, or (iv) consist of raw materials, work in process, or materials used or consumed in a business; (b) goods of said description in transit; (c) goods of said description which are returned, repossessed or rejected; and (d) packaging, advertising, and shipping materials related to any of the foregoing.

Investment” shall mean, as to any Person, any direct or indirect acquisition or investment by such Person in another Person, whether by means of (a) the purchase or other acquisition of Equity Interests of another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition of any other debt or interest in, another Person, (c) any Acquisition, or (d) any other investment of money or capital in another Person in order to obtain a profitable return. For purposes of covenant compliance, the amount of any outstanding Investment shall be the amount actually invested, without adjustment for subsequent increases or decreases in the value of such Investment, net of any repayments thereof.

IPO Reorganization” shall mean the transactions taken in connection with and reasonably related to the consummation of an initial public offering of the common Equity Interests of Holdings or any parent of Holdings so long as that after giving effect to all such transactions the security interests of the Lenders in the Collateral and Guarantees of the Secured Obligations, taken as whole, would not be materially impaired.

Junior Financing” shall have the meaning set forth in Section 10.11(a) hereto.

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

Laws” shall mean, collectively, all international, foreign, federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority.

Lease” shall mean any written agreement, pursuant to which a Loan Party is entitled to the use or occupancy of any real property for any period of time.

 

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Lender Participation Notice” shall have the meaning set forth in Section 2.3(c)(iii) hereto.

Lenders” shall mean the financial institutions who are signatories hereto as Lenders, other persons made a party to this Agreement as a Lender in accordance with Section 14.7 hereof and any other persons made a party to this Agreement as a Lender in accordance with the terms of this Agreement, and their respective successors and assigns.

Lending Office” shall mean, with respect to any Lender, the office of such Lender maintaining such Lender’s Loan.

Lien” shall mean any interest in property securing an obligation owed to, or a claim by, a Person other than the owner of the property, whether such interest is based on common law, statute or contract. The term “Lien” shall also include reservations, exceptions, encroachments, easements, rights-of-way, covenants, conditions, restrictions, leases and other title exceptions and encumbrances affecting property. For the purpose of this Agreement, each Person shall be deemed to be the owner of any property that it has acquired or holds subject to a conditional sale agreement or other arrangement pursuant to which title to the property has been retained by or vested in some other Person for security purposes. In no event shall the term “Lien” be deemed to include any license of Intellectual Property unless such license contains a grant of a security interest in such Intellectual Property.

Liquidity Condition” shall mean, at any time, the sum of (x) unrestricted cash and Cash Equivalents of the Albertson’s Group (including cash restricted in favor of the Lenders and/or the lenders under the ABL Facility) and (y) undrawn and then available amounts under the ABL Facility, to the extent such sum equals or exceeds $450,000,000.

Loan” shall mean an extension of credit under Section 2 by a Lender to a Borrower in the form of a Term Loan.

Loan Component” shall have the meaning assigned to such term in the definition of Loan-to-Value Ratio.

Loan-to-Value Ratio” shall mean, as of any date, the ratio of (a)(x) in the case of Indebtedness to be secured by a Lien ranking pari passu with the Liens securing the Obligations, the total amount of Consolidated Total Debt included in clause (a) of the definition of “Consolidated First Lien Net Leverage Ratio” and (y) in the case of Indebtedness to be secured by a Lien ranking junior to the Liens securing the Obligations, the total amount of Consolidated Total Debt secured by any Liens on assets of Holdings and its Restricted Subsidiaries (in each case, as applicable, the “Loan Component”) to (b) the aggregate amount of the Valuations for each of the Mortgaged Properties that has been completed in the 18 calendar month period immediately prior to such date (the “Value Component”). On the Escrow Release Date, the Value Component shall be an amount to be provided by the Parent Borrower to the Agent pursuant to an officer’s certificate in form and substance reasonably satisfactory to the Agent setting forth the Value Component and the basis of such valuation and, which shall be calculated using the same methodology used to calculate the Value Component under the Existing Debt Facility.

Loan Parties” shall mean collectively the Borrowers and each Guarantor (other than Holdings).

LTIP Agreements” shall mean the AB Acquisition LLC Long Term Incentive Plan, as amended and the AB Acquisition LLC Senior Executive Retention Plan, as amended.

Management Services Agreement” shall mean the Management Services Agreement by and between AB Management Services Corp. and the Parent Borrower, dated as of the Original Closing Date,

 

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as the same may be hereafter amended, modified, supplemented, extended, renewed, restated, or replaced, in each case so long as not materially adverse to the Lenders.

Margin Stock” shall have the meaning set forth in Regulation U.

Material Adverse Effect” shall mean (a) a material adverse change in, or a material adverse effect upon, the operations, business, assets, properties, liabilities, or financial condition of the Loan Parties and their Subsidiaries, taken as a whole; (b) a material impairment of the rights and remedies of the Agent or any Lender under the Financing Agreements, or of the ability of the Loan Parties, taken as a whole, to perform their obligations under the Financing Agreements; or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against the Loan Parties, taken as a whole, of this Agreement or the Collateral Documents.

Material Contract” shall mean with respect to any Person, each contract (other than the Financing Agreements) to which such Person is a party as to which the breach, nonperformance, or cancellation by any party thereto would have a Material Adverse Effect.

Material Indebtedness” shall mean Indebtedness (other than the Obligations) of the Loan Parties in an aggregate principal amount exceeding $150,000,000. For purposes of determining the amount of Material Indebtedness at any time, (a) undrawn committed or available amounts shall be excluded and (b) all amounts owing to all creditors under any combined or syndicated credit arrangement shall be included.

Material Real Property” shall mean (i) any fee owned or ground leased real property, as the case may be, of any Loan Party with a Fair Market Value of $500,000 or greater (at the Original Closing Date or, with respect to real property acquired after the Original Closing Date, at the time of acquisition, in each case, as determined by the most recent appraisal undertaken by an independent appraiser engaged by the Parent Borrower and reasonably acceptable to the Agent) or, (ii) solely in the case of real property acquired following the Amendment No. 4 (B-6) Effective Date, any fee owned or ground leased real property, as the case may be, of any Loan Party with a Fair Market Value of $3,000,000 or greater (determined at the time of acquisition, as determined by the most recent appraisal undertaken by an independent appraiser engaged by the Parent Borrower and reasonably acceptable to the Agent); provided, however, no “surplus property” as determined in good faith by the Parent Borrower or Excluded Property shall constitute Material Real Property.

Maturity Date” shall mean the Term B-2 Maturity Date, Term B-3 Maturity Date, the Term B-4 Maturity Date, the Term B-5 Maturity date, the 2016-1 Term B-4 Maturity Date, the 2016-2 Term B-4 Maturity Date, the 2017-1 Term B-4 Maturity Date, the 2016-1 Term B-5 Maturity Date, the 2016-2 Term B-5 Maturity Date, the 2017-1 Term B-5 Maturity Date, the Term B-6 Maturity Date, the 2016-1 Term B-6 Maturity Date, the 2017-1 Term B-6 Maturity Date, the 2018 Term B-7 Maturity Date or the stated maturity date of any other Facility, as the case may be.

Maximum Rate” shall have the meaning set forth in Section 14.16 hereto.

Medicaid” shall mean the health care program jointly financed and administered by the federal and state governments under Title XIX of the Social Security Act.

Medicare” shall mean the health care program under Title XVIII of the Social Security Act.

Merger Sub” shall have the meaning set forth in the Preamble hereto.

 

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MoneyGram” shall mean MoneyGram Payment Systems, Inc., together with its successors and assigns.

MoneyGram Agreement” shall mean that certain Master Trust Agreement, from time to time in effect, by and between the Parent Borrower and MoneyGram.

Moodys” shall mean Moody’s Investors Services, Inc. and any successor thereto.

Mortgage” shall mean a deed of trust, trust deed, deed to secure debt, mortgage, leasehold mortgage or leasehold deed of trust, in form and substance reasonably satisfactory to the Agent and its counsel and covering a Mortgaged Property (together with the fixture filings and Assignments of Leases and Rents referred to therein), duly executed by the appropriate Loan Party.

Mortgaged Property” shall mean (a) the fee owned and ground leased real property identified on Schedule 8.4(b)(1) and Schedule 8.4(b)(2) hereto and Schedule 7(a)(ii) to the Perfection Certificate, as amended and restated as of the Escrow Release Date and as further supplemented pursuant to Section 9.21 hereto, and (b) each Material Real Property, if any, which shall be subject to a Mortgage delivered after the Escrow Release Date pursuant to Section 9.8 and Section 9.9.

Multiemployer Plan” shall mean any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which Holdings or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions.

NAI” shall mean New Albertson’s, Inc., an Ohio corporation.

NAI Purchase Agreement” shall mean the Stock Purchase Agreement dated as of January 10, 2013 by and among SVU, AB LLC, and NAI.

NAI Services Agreement” shall mean the Services Agreement by and between NAI and Parent Borrower dated as of the Original Closing Date, as the same may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced, in each case so long as not materially adverse to the Lenders.

Net Income” shall mean, with respect to the Albertson’s Group, the net income (loss) of such Person, determined in accordance with GAAP and before any reduction in respect of Preferred Stock dividends.

Net Proceeds” shall mean:

(a) 100% of the cash proceeds actually received by a Borrower or any of their Restricted Subsidiaries (including any cash payments received by way of deferred payment of principal pursuant to a note or installment receivable or purchase price adjustment receivable or otherwise and including casualty insurance settlements and condemnation awards, but in each case only as and when received) from any Disposition or Casualty Event, net of (i) attorneys’ fees, accountants’ fees, investment banking fees, survey costs, title insurance premiums, and related search and recording charges, transfer taxes, deed or mortgage recording taxes, other customary expenses and brokerage, consultant and other customary fees actually incurred in connection therewith, (ii) any amount required to repay (x) Indebtedness (other than pursuant to the Financing Agreements or under any Bank Products or Cash Management Services) that is secured by a Lien on the assets disposed of and which ranks prior to the Lien securing the Obligations or (y) Indebtedness or other obligations of any Restricted Subsidiary that is disposed

 

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of in such transaction, (iii) in the case of any Disposition or Casualty Event by a non-wholly owned Restricted Subsidiary, the pro rata portion of the Net Proceeds thereof (calculated without regard to this clause (iii)) attributable to non-controlling interests or not available for distribution to or for the account of a Borrower or a wholly owned Restricted Subsidiary as a result thereof, (iv) taxes paid or reasonably estimated to be payable as a result thereof, and (v) the amount of any reasonable reserve established in accordance with GAAP against any adjustment to the sale price or any liabilities (other than any taxes deducted pursuant to clause (i) above) (x) related to any of the applicable assets and (y) retained by a Borrower or any of its Restricted Subsidiaries including, without limitation, Pension Plan and other post-employment benefit liabilities and liabilities related to environmental matters or against any indemnification obligations (however, the amount of any subsequent reduction of such reserve (other than in connection with a payment in respect of any such liability) shall be deemed to be Net Proceeds of such Disposition or Casualty Event occurring on the date of such reduction); provided that, if no Specified Default exists at the time of the proposed reinvestment (or such proposed reinvestment is made pursuant to a binding commitment entered into at a time when no Specified Default was continuing), the Borrowers and their Restricted Subsidiaries may reinvest any portion of such proceeds (other than proceeds from any disposition of Divested Properties) in assets (other than current assets) useful for its business within 12 months of such receipt, and such portion of such proceeds shall not constitute Net Proceeds except to the extent such proceeds are not so used or contractually committed to be so used within 12 months of such receipt (it being understood that if any portion of such proceeds are not so used within such 12 month period but within such 12-month period are contractually committed to be used, then upon the termination of such contract or if such Net Proceeds are not so used within 18 months of initial receipt, such remaining portion shall constitute Net Proceeds as of the date of such termination or expiry without giving effect to this proviso; provided, however, that such reinvested amount shall not exceed $750,000,000 in any Fiscal Year); provided, further, that no proceeds realized in a single transaction or series of related transactions shall constitute Net Proceeds unless (x) such proceeds net of the amounts described in clauses (i) through (v) above shall exceed $7,500,000 or (y) the aggregate amount of such net proceeds from dispositions resulting in net proceeds in excess of the threshold set forth in the foregoing clause (x) exceeds $150,000,000 in any Fiscal Year (and thereafter only net cash proceeds in excess of the amount specified in clause (y) of this proviso shall constitute Net Proceeds under this clause (a)), and

(b) 100% of the cash proceeds from the incurrence, issuance or sale by a Borrower or any of its Restricted Subsidiaries of any Indebtedness, net of all taxes paid or reasonably estimated to be payable as a result thereof and fees (including investment banking fees and discounts), commissions, costs and other expenses, in each case incurred in connection with such incurrence, issuance or sale.

For purposes of calculating the amount of Net Proceeds, fees, commissions and other costs and expenses payable to a Borrower or any Restricted Subsidiary shall be disregarded.

Non-Consenting Lender” shall have the meaning set forth in Section 12.3(c).

Non-Debt Fund Affiliate” shall mean an Affiliate of Holdings that is not a Debt Fund Affiliate or a Purchasing Borrower Party.

Non-Exchanged 2016-1 Term B-4 Loan” means each 2016-1 Term B-4 Loan other than an Exchanged 2016-1 Term B-4 Loan.

 

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Non-Exchanged 2016-1 Term B-5 Loan” means each 2016-1 Term B-5 Loan other than an Exchanged 2016-1 Term B-5 Loan.

Non-Exchanged 2016-1 Term B-6 Loan” means each 2016-1 Term B-6 Loan other than an Exchanged 2016-1 Term B-6 Loan.

Non-Exchanged 2016-2 Term B-4 Loan” means each 2016-2 Term B-4 Loan other than an Exchanged 2016-2 Term B-4 Loan.

Non-Exchanged 2016-2 Term B-5 Loan” means each 2016-2 Term B-5 Loan other than an Exchanged 2016-2 Term B-5 Loan.

Non-Exchanged 2017-1 Term B-4 Loan means each 2017-1 Term B-4 Loan other than an Exchanged 2017-1 Term B-4 Loan.

Non-Exchanged Term B-2 Loan” means each Term B-2 Loan other than an Exchanged Term B-2 Loan.

Non-Exchanged Term B-3 Loan” means each Term B-3 Loan other than an Exchanged Term B-3 Loan.

Non-Exchanged Term B-4 Loan” means each Term B-4 Loan other than an Exchanged Term B-4 Loan.

Non-Exchanged Term B-5 Loan” means each Term B-5 Loan other than an Exchanged Term B-5 Loan.

Non-Exchanged Term B-6 Loan” means each Term B-6 Loan other than an Exchanged Term B-6 Loan.

NPL” shall mean the National Priorities List under CERCLA.

Obligations” shall mean (i) any and all Term Loans and all other obligations, liabilities and indebtedness of every kind, nature and description owing by any Loan Party to Agent or any Lender, including principal, interest, charges, fees, costs and expenses, however evidenced, whether as principal, surety, endorser, guarantor or otherwise, arising under this Agreement or any of the other Financing Agreements whether now existing or hereafter arising, whether arising before, during or after the initial or any renewal term of this Agreement or after the commencement of any case with respect to such Loan Party under the United States Bankruptcy Code or any similar statute (including the payment of interest and other amounts which would accrue and become due but for the commencement of such case, whether or not such amounts are allowed or allowable in whole or in part in such case), whether direct or indirect, absolute or contingent, joint or several, due or not due, primary or secondary, liquidated or unliquidated, or secured or unsecured and (ii) the Other Liabilities.

Offered Loans” shall have the meaning set forth in Section 2.3(c)(iii) hereto.

Organization Documents” shall mean (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the certificate or articles of formation or organization and operating agreement; (c) with respect to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable

 

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agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity; and (d) in each case, all shareholder or other equity holder agreements, voting trusts and similar arrangements to which such Person is a party or which is applicable to its Equity Interests and all other arrangements relating to the Control or management of such Person.

Original Closing Date” shall mean March 21, 2013.

Original Closing Date Transaction Payments” shall mean transaction closing fees in aggregate amount of $20,000,000 payable contemporaneously with the Original Closing Date to the Sponsor (directly, or indirectly through AB LLC) and to management of the Parent Borrower.

Original Closing Date Transactions” shall mean “Transactions” as defined in the Existing Debt Facility.

Other Applicable Indebtedness” shall have the meaning set forth in Section 2.3(b)(ii) hereto.

Other Liabilities” means any obligation on account of (a) any Cash Management Services furnished to any of the Loan Parties and/or (b) any Bank Product furnished to any of the Loan Parties, as each may be amended from time to time, but in each case only if and to the extent that the provider of such Bank Product or Cash Management Service has furnished the Agent with notice thereof as required under Section 13.12 hereof.

Other Taxes” shall mean all present or future stamp or documentary Taxes or any other excise or property Taxes, charges or similar levies, arising from any payment made hereunder or under any other Financing Agreement or from the execution, delivery or enforcement of, or otherwise with respect to this Agreement or any other Financing Agreement, excluding, however, any such amounts imposed as a result of an assignment (“Assignment Taxes”), but only to the extent such Assignment Taxes (i) do not relate to an assignment made at the request of the Parent Borrower pursuant to Section 6.2 and (ii) are imposed as a result of a present or former connection between the assignor or assignee and the jurisdiction imposing such Tax (other than a connection arising from such assignor or assignee having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced, any Financing Agreement, or sold or assigned an interest in any Loan or Financing Agreement.

Other Term Loan Commitments” shall mean one or more Classes of term loan commitments hereunder that result from a Refinancing Amendment.

Other Term Loans” shall mean one or more Classes of Term Loans that result from a Refinancing Amendment.

Outstanding Amount” shall mean, on a particular date, the outstanding principal amount of Term Loans after giving effect to any borrowings and prepayments or repayments of Term Loans occurring on such date.

Overnight Rate” shall mean, for any day, the greater of the Federal Funds Effective Rate and an overnight rate determined by the Agent in accordance with banking industry rules on interbank compensation.

 

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PACA” shall mean the Perishable Agriculture Commodities Act, 1930 and all regulations promulgated thereunder, as amended from time to time.

Parent Borrower” shall have the meaning set forth in the introductory paragraph hereto.

Parent Borrower Materials” shall have the meaning set forth in Section 9.6(c) hereto.

Participant” shall mean any financial institution that acquires and holds participation in the interest of any Lender in any of the Loans in conformity with the provisions of Section 14.7 of this Agreement governing participations.

Participant Register” shall have the meaning set forth in Section 14.7(e) hereto.

PASA” shall mean the Packers and Stockyard Act, 1921 and all regulations promulgated thereunder, as amended from time to time.

PATRIOT Act” shall mean the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56).

Paying Guarantor” shall have the meaning set forth in Section 14.12(c).

PBGC” shall mean the Pension Benefit Guaranty Corporation.

PCAOB” shall mean the Public Company Accounting Oversight Board or any successor organization thereto.

PDC” shall mean the subsidiaries of Safeway comprised of (i) Property Development Centers LLC, (ii) PDC I, Inc., (iii) Association of Unit Owners Safeway Beretania, (iv) Eureka Land Management, LLC and (v) Paradise Development, LLC, and each of their respective Subsidiaries.

PEL Policy” shall have the meaning set forth in Section 9.13(b) hereto.

Pension Plan” shall mean any “employee pension benefit plan” (as such term is defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored or maintained by a Borrower or any ERISA Affiliate or to which a Borrower or any ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time during the immediately preceding five plan years.

Perfection Certificate” shall have the meaning set forth in the Security Agreement.

Perishable Inventory” shall mean Inventory included in the following categories as reported by the Loan Parties consistent with then-current industry practices: bakeries, produce, floral, dairy, fresh seafood, meat and deli.

Permitted Acquisition” shall mean an Acquisition of property and assets or businesses of any Person or of assets constituting a business unit, a line of business or division of such Person in which all of the following conditions are satisfied:

 

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(a) no Default or Event of Default shall have occurred and be continuing or would result therefrom (other than in respect of any Permitted Acquisition made pursuant to a legally binding commitment entered into at a time when no Default exists or would result therefrom);

(b) Any acquired or newly formed Subsidiary shall not be liable for any Indebtedness except for Permitted Indebtedness;

(c) Such Acquisition shall have been approved by the board of directors of the Person (or similar governing body if such Person is not a corporation) which is the subject of such Acquisition and such Person shall not have announced that it will oppose such Acquisition or shall not have commenced any action which alleges that such Acquisition shall violate applicable Law; and

(d) If the Person which is the subject of such Acquisition will be maintained as a Restricted Subsidiary of a Loan Party, or if the assets acquired in an Acquisition will be transferred to a Restricted Subsidiary which is not then a Loan Party, such Restricted Subsidiary shall have been joined as a “Borrower” hereunder or as a Guarantor, as the Parent Borrower and the Agent shall agree, and the Agent shall have received a first priority (subject, in each case, to Permitted Liens having priority over the Lien of the Agent by operation of applicable Law) security and/or mortgage interest in such Restricted Subsidiary’s Equity Interests and property of such Restricted Subsidiary and of the same nature as constitutes Collateral under the Collateral Documents.

Notwithstanding anything to the contrary herein, the Safeway Acquisition shall be deemed to be a “Permitted Acquisition”.

Permitted Disposition” shall have the meaning set forth in Section 10.5 hereto.

Permitted First Priority Refinancing Debt” shall mean any secured Indebtedness (including any Registered Equivalent Notes) incurred by the Parent Borrower and, if applicable, any Co-Borrower, in the form of one or more series of senior secured notes or loans; provided that (i) such Indebtedness is secured by the Collateral on a pari passu basis (but without regard to the control of remedies) with the Obligations and is not secured by any property or assets of a Borrower or any Restricted Subsidiary other than the Collateral, (ii) such Indebtedness is not at any time guaranteed by any Subsidiaries other than Subsidiaries that are Co-Borrowers or Guarantors, (iii) such Indebtedness does not mature or have scheduled amortization or payments of principal (other than customary offers to repurchase upon a change of control, asset sale or event of loss and a customary acceleration right after an event of default) prior to the date that is 91 days after the Latest Maturity Date of any Loan outstanding at the time such Indebtedness is incurred or issued, (iv) the security agreements relating to such Indebtedness are substantially the same as or more favorable to the Loan Parties than the Collateral Documents (with such differences as are reasonably satisfactory to the Agent) and (v) a Senior Representative acting on behalf of the holders of such Indebtedness shall have become party to or otherwise subject to the provisions of the Intercreditor Agreements. Permitted First Priority Refinancing Debt will include any Registered Equivalent Notes issued in exchange therefor.

Permitted Holders” means (i) the Sponsors and any other Funds or managed accounts advised or managed by any Sponsor or any of a Sponsor’s Affiliates, (ii) any person that has no material assets other than the Equity Interests of Holdings, a parent of Holdings or Equity Interests of a Person engaged in a Similar Business and, directly or indirectly, holds or acquires 100% of the total voting power of the Voting Stock of Holdings, and of which no other Person or group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor provision), other than any Permitted

 

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Holder specified in clause (i) above, holds more than 50% of the total voting power of the Voting Stock thereof, and (iii) any group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor provision) the members of which include any Permitted Holder specified in clause (i) above and that, directly or indirectly, hold or acquire beneficial ownership of the Voting Stock of Holdings (a “Permitted Holder Group”), so long as (1) each member of the Permitted Holder Group has voting rights proportional to the percentage of ownership interests held or acquired by such member and (2) no Person or other “group” (other than a Permitted Holder specified in clause (i) above) beneficially owns more than 50% on a fully diluted basis of the Voting Stock held by the Permitted Holder Group.

Permitted Indebtedness” shall have the meaning set forth in Section 10.3 hereto.

Permitted Investment” shall have the meaning set forth in Section 10.2 hereto.

Permitted Junior Priority Refinancing Debt” shall mean secured Indebtedness (including any Registered Equivalent Notes) incurred by the Parent Borrower, and if applicable, any Co-Borrower, in the form of one or more series of junior priority secured notes or junior priority secured loans; provided that (i) such Indebtedness is secured by the Collateral on a second priority (or other junior priority) basis to the liens securing the Obligations and the obligations in respect of any Permitted First Priority Refinancing Debt and is not secured by any property or assets of a Borrower or any Restricted Subsidiary other than the Collateral, (ii) such Indebtedness may be secured by a Lien on the Collateral that is junior to the Liens securing the Obligations and the obligations in respect of any Permitted First Priority Refinancing Debt, notwithstanding any provision to the contrary contained in the definition of “Credit Agreement Refinancing Indebtedness,” (iii) a Senior Representative acting on behalf of the holders of such Indebtedness shall have become party to or otherwise subject to the provisions of the Intercreditor Agreements, (iv) such Indebtedness does not mature or have scheduled amortization payments of principal or payments of principal and is not subject to mandatory redemption, repurchase, prepayment or sinking fund obligations (except customary asset sale or change of control provisions that provide for the prior repayment in full of the Loans and all other Obligations), in each case prior to 91 days after the Latest Maturity Date at the time such Indebtedness is incurred, (v) such Indebtedness is not at any time guaranteed by any Subsidiaries other than Subsidiaries that are Co-Borrowers or Guarantors and (vi) the security agreements relating to such Indebtedness are substantially the same as or more favorable to the Loan Parties than the Collateral Documents (with such differences as are reasonably satisfactory to the Agent). Permitted Junior Priority Refinancing Debt will include any Registered Equivalent Notes issued in exchange therefor.

Permitted Liens” shall have the meaning set forth in Section 10.1 hereto.

Permitted Ratio Debt” shall mean Indebtedness of the Albertson’s Group, provided that immediately after giving pro forma effect thereto and to the use of the proceeds thereof, (i) no Event of Default shall be continuing or result therefrom, (ii) the Total Leverage Ratio on a Pro Forma Basis is no greater than 5.00:1.00, (iii) if such Indebtedness is secured by Liens ranking pari passu with the Term Loans, the Loan-to-Value Ratio is no greater than 0.65:1.00, (iv) if such Indebtedness is secured by Liens ranking junior to the Liens securing the Term Loans, the Loan-to-Value Ratio is no greater than 0.75:1.00, (v) such Indebtedness does not mature prior to the date that is ninety-one (91) days after the Latest Maturity Date at the time such Indebtedness is incurred, (vi) such Indebtedness shall not have any financial maintenance covenants, (vii) if such Indebtedness is incurred or guaranteed on a secured basis by a Loan Party, the Liens securing such Indebtedness are subject to the Intercreditor Agreements or another intercreditor agreement in form and substance reasonably satisfactory to the Agent, (viii) if such Indebtedness is subordinated in right of payment with the Term Loans, such Indebtedness shall contain subordination provisions reasonably satisfactory to the Agent and (ix) the aggregate amount of any such

 

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Indebtedness incurred or guaranteed by a Restricted Subsidiary that is not a Loan Party does not exceed the greater of $500,000,000 and 2.25% of Total Assets at such time.

Permitted Refinancing” shall mean, with respect to any Person, any modification, refinancing, refunding, renewal, replacement or extension of any Indebtedness of such Person; provided that (a) the principal amount (or accreted value, if applicable) thereof does not exceed the principal amount (or accreted value, if applicable) of the Indebtedness so modified, refinanced, refunded, renewed, replaced or extended except by an amount equal to unpaid accrued interest and premium (including any customary tender premiums) thereon plus other amounts paid, and fees and expenses reasonably incurred, in connection with such modification, refinancing, refunding, renewal, replacement or extension and by an amount equal to any existing commitments unutilized thereunder, (b) such modification, refinancing, refunding, renewal, replacement or extension has a final maturity date equal to or later than the final maturity date of, and has a Weighted Average Life to Maturity equal to or greater than the Weighted Average Life to Maturity of, the Indebtedness being modified, refinanced, refunded, renewed, replaced or extended, (c) at the time thereof, no Event of Default shall have occurred and be continuing, (d) to the extent such Indebtedness being modified, refinanced, refunded, renewed, replaced or extended is subordinated in right of payment to the Obligations, such modification, refinancing, refunding, renewal, replacement or extension is subordinated in right of payment to the Obligations on terms at least as favorable to the Lenders as those contained in the documentation governing the Indebtedness being modified, refinanced, refunded, renewed, replaced or extended; provided that a certificate of a Responsible Officer delivered to the Agent stating that the Parent Borrower has determined in good faith that such terms and conditions satisfy the foregoing requirement shall be conclusive evidence that such terms and conditions satisfy the foregoing requirement and (e) such modification, refinancing, refunding, renewal, replacement or extension is incurred by the Person who is the obligor or guarantor of the Indebtedness being modified, refinanced, refunded, renewed, replaced or extended (except in the case of the Existing Safeway Notes and the Existing Safeway Debentures).

Permitted Unsecured Refinancing Debt” shall mean unsecured Indebtedness (including any Registered Equivalent Notes) incurred by the Parent Borrower and, if applicable, any Co-Borrower, in the form of one or more series of senior unsecured notes or loans; provided that (i) such Indebtedness constitutes Credit Agreement Refinancing Indebtedness, (ii) such Indebtedness does not mature or have scheduled amortization payments of principal or payments of principal and is not subject to mandatory redemption, repurchase, prepayment or sinking fund obligations (except customary asset sale or change of control provisions that provide for the prior repayment in full of the Loans and all other Obligations), in each case prior to 91 days after the Latest Maturity Date at the time such Indebtedness is incurred and (iii) such Indebtedness is not at any time guaranteed by any Subsidiaries other than Subsidiaries that are Co-Borrowers or Guarantors.

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

Pharmaceutical Laws” shall mean federal, state and local laws, rules or regulations, codes, orders, decrees, judgments or injunctions issued, promulgated, approved or entered, relating to dispensing, storing or distributing prescription medicines or products, including laws, rules or regulations relating to the qualifications of Persons employed to do the same.

Plan” shall mean an “employee benefit plan” (as such term is defined in Section 3(3) of ERISA) established or maintained by a Borrower or, with respect to any such plan that is subject to Section 412 of the Code or Title IV of ERISA, any ERISA Affiliate.

 

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Platform” shall have the meaning set forth in Section 9.6 hereto.

Preferred Stock” shall mean any Equity Interest with preferential right of payment of dividends or upon liquidation, dissolution, or winding up.

Pro Forma Basis” shall mean, with respect to compliance with any test or covenant or the calculation of any ratio hereunder, the determination of such test, covenant or ratio (including in connection with Specified Transactions) in accordance with Section 14.13.

Pro Rata Share” shall mean, with respect to each Lender, at any time a fraction (expressed as a percentage, carried out to the ninth decimal place), the numerator of which is the amount of the Commitments and, if applicable and without duplication, Term Loans of such Lender under the applicable Facility or Facilities at such time and the denominator of which is the amount of the Aggregate Commitments under the applicable Facility or Facilities and, if applicable and without duplication, Term Loans under the applicable Facility or Facilities at such time.

Property” shall mean any interest of any kind in any property or asset, whether real, personal or mixed, or tangible or intangible.

Proposed Discounted Prepayment Amount” shall have the meaning set forth in Section 2.3(c)(ii) hereto.

Public Company Costs shall mean (a) costs, expenses and disbursements associated with, related to or incurred in anticipation of, or preparation for compliance with (x) the requirements of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith, (y) the provisions of the Securities Act and the Exchange Act, as applicable to companies with equity or debt securities held by the public, and (z) the rules of national securities exchange companies with listed equity or debt securities, (b) costs and expenses associated with investor relations, shareholder meetings and reports to shareholders or debtholders and listing fees, and (c) directors’ compensation, fees, indemnification, expense reimbursement (including legal and other professional fees, expenses and disbursements), and directors’ and officers’ insurance.

Public Lender” shall have the meaning set forth in Section 9.6 hereto.

Purchasing Borrower Party” shall mean Holdings, a Borrower or any other Subsidiary of the Borrowers that (x) makes a Discounted Voluntary Prepayment pursuant to Section 2.3(c) or (y) becomes an Eligible Transferee or Participant pursuant to Section 14.7(h).

Qualified Capital Stock” shall mean any Equity Interests that is not Disqualified Stock.

Qualified ECP Guarantor” shall mean, at any time, each Loan Party with total assets exceeding $10,000,000 or that qualifies at such time as an “eligible contract participant” under the Commodity Exchange Act and can cause another person to qualify as an “eligible contract participant” at such time under §1a(18)(A)(v)(II) of the Commodity Exchange Act.

Qualified IPO” means the issuance by Holdings or any direct or indirect parent of Holdings of its common Equity Interests (i) pursuant to an effective registration statement (other than a Form S-8) filed with the U.S. Securities and Exchange Commission in accordance with the Securities Act or (ii) after which the common Equity Interests of Holdings or any direct or indirect parent of Holdings are listed on an internationally recognized securities exchange or dealer quotation system.

 

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Qualified Real Estate Financing Facility” shall mean (i) any credit facility made available to a Real Estate Subsidiary that is non-recourse to a Borrower or any of its other Subsidiaries (other than Real Estate Subsidiaries party to such credit facility) and secured by the Real Property of Real Estate Subsidiaries (or secured by the Equity Interests of a Real Estate Subsidiary) and (ii) any sale and leaseback of Real Property of Real Estate Subsidiaries, as the same may be amended, supplemented, waived or otherwise modified from time to time or refunded, refinanced, restructured, replaced, renewed, repaid, increased or extended from time to time.

Qualified Receivables Financing” shall mean any Receivables Financing of a Receivables Subsidiary that meets the following conditions:

(1) the board of directors of the Parent Borrower shall have determined in good faith that such Qualified Receivables Financing (including financing terms, covenants, termination events and other provisions) is in the aggregate economically fair and reasonable to the Parent Borrower and the Receivables Subsidiary,

(2) all sales of accounts receivable and related assets to and by the Receivables Subsidiary are made at Fair Market Value, and

(3) the financing terms, covenants, termination events and other provisions thereof shall be market terms (as determined in good faith by the Parent Borrower) and may include Standard Securitization Undertakings.

The grant of a security interest in any accounts receivable of Albertson’s Group (other than a Receivables Subsidiary) to secure the ABL Credit Agreement shall not be deemed a Qualified Receivables Financing.

Qualifying Lenders” shall have the meaning set forth in Section 2.3(c)(iv) hereto.

Qualifying Loans” shall have the meaning set forth in Section 2.3(c)(iv) hereto.

Quarterly Accounting Period” shall mean any period of three (3) or four (4) consecutive Accounting Periods designated as a “Quarterly Accounting Period” on Schedule 1.02 hereto.

Ratably Secured Notes” shall mean the Existing Safeway Notes and the Existing Safeway Debentures.

Real Estate Financing Loan Parties” shall mean any Real Estate Subsidiaries that are borrowers or guarantors under a Qualified Real Estate Financing Facility.

Real Estate Subsidiary” shall mean any Restricted Subsidiary of Holdings (i) that does not engage in any business other than owning or leasing real property or (ii) owning directly or indirectly the Equity Interests of its Restricted Subsidiaries described in clause (i) or a holding company of any such Subsidiary. As of the Escrow Release Date, the Persons listed on Schedule 1.03 constitute all of the Real Estate Subsidiaries.

Real Property” shall mean all now owned and hereafter acquired real property of each Loan Party, including leasehold interests, together with all buildings, structures, and other improvements located thereon and all licenses, easements and appurtenances relating thereto, wherever located.

 

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Receivables Financing” shall mean any transaction or series of transactions pursuant to which Albertson’s Group may sell, convey or otherwise transfer to (a) a Receivables Subsidiary (in the case of a transfer by Albertson’s Group), and (b) any other Person (in the case of a transfer by a Receivables Subsidiary), or may grant a security interest in, any accounts receivable (whether now existing or arising in the future) of a Borrower or any of its Subsidiaries, and any assets related thereto including, without limitation, all collateral securing such accounts receivable, all contracts and all guarantees or other obligations in respect of such accounts receivable, proceeds of such accounts receivable and other assets which are customarily transferred or in respect of which security interests are customarily granted in connection with asset securitization transactions involving accounts receivable and any Hedging Obligations pursuant to a Swap Contract entered into by such Borrower or any such Subsidiary in connection with such accounts receivable.

Receivables Repurchase Obligation” shall mean any obligation of a seller of receivables in a Qualified Receivables Financing to repurchase receivables arising as a result of a breach of a representation, warranty or covenant or otherwise, including as a result of a receivable or portion thereof becoming subject to any asserted defense, dispute, off-set or counterclaim of any kind as a result of any action taken by, any failure to take action by or any other event relating to the seller.

Receivables Subsidiary” shall mean a wholly owned Subsidiary of a Borrower (or other Person formed for the purposes of engaging in a Qualified Receivables Financing with a Borrower or its Subsidiaries in which a Borrower or any of its Subsidiaries makes an Investment and to which a Borrower or any of their respective Subsidiaries transfers accounts receivable and related assets) which engages in no activities other than in connection with the Receivables Financing, all proceeds thereof and all rights (contractual or other), collateral and other assets relating thereto, and any business or activities incidental or related to such business and which is designated by the board of directors of the Parent Borrower or Safeway (as provided below) as a Receivables Subsidiary and:

(a) no portion of the Indebtedness or any other obligations (contingent or otherwise) of which (i) is guaranteed by a Borrower or any of its Restricted Subsidiaries (excluding guarantees of obligations (other than the principal of, and interest on, Indebtedness) pursuant to Standard Securitization Undertakings), (ii) is recourse to or obligates a Borrower or any of its Restricted Subsidiaries (other than such Receivables Subsidiary) in any way other than pursuant to Standard Securitization Undertakings, or (iii) subjects any property or asset of a Borrower or any of its Restricted Subsidiaries, directly or indirectly, contingently or otherwise, to the satisfaction thereof, other than pursuant to Standard Securitization Undertakings,

(b) with which neither a Borrower nor any of its Restricted Subsidiaries has any material contract, agreement, arrangement or understanding other than on terms which such Borrower reasonably believes to be no less favorable to such Borrower or such Subsidiary than those that might be obtained at the time from Persons that are not Affiliates of such Borrower or such Subsidiary, and

(c) to which neither a Borrower nor any of its Restricted Subsidiaries has any obligation to maintain or preserve such entity’s financial condition or cause such entity to achieve certain levels of operating results.

Any such designation by the board of directors of the Parent Borrower or such other Person shall be evidenced to the Agent by delivery to the Agent of a certified copy of the resolution of the board of directors of the Parent Borrower or such other Person giving effect to such designation and a certificate executed by a Responsible Officer certifying that such designation complied with the foregoing conditions.

 

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Refinanced Term Loans” shall have the meaning set forth in Section 12.3(i) hereto.

Refinancing Amendment” shall mean an amendment to this Agreement executed by each of (a) the Borrowers, (b) the Agent, (c) each Additional Refinancing Lender and (d) each Lender that agrees to provide any portion of Refinancing Term Loans in accordance with Section 2.9.

Refinancing Series” shall mean all Refinancing Term Loans or Refinancing Term Commitments that are established pursuant to the same Refinancing Amendment (or any subsequent Refinancing Amendment to the extent such Refinancing Amendment expressly provides that the Refinancing Term Loans or Refinancing Term Commitments provided for therein are intended to be a part of any previously established Refinancing Series) and that provide for the same Effective Yield and amortization schedule.

Refinancing Term Commitments” shall mean one or more term loan commitments hereunder that fund Refinancing Term Loans of the applicable Refinancing Series hereunder pursuant to a Refinancing Amendment.

Refinancing Term Loans” shall mean one or more term loans hereunder that result from a Refinancing Amendment.

Register” shall have the meaning set forth in Section 14.7(b) hereto.

Registered Equivalent Notes” shall mean, with respect to any notes originally issued in an offering pursuant to Rule 144A under the Securities Act or other private placement transaction under the Securities Act, substantially identical notes (having the same guarantees) issued in a dollar-for-dollar exchange therefor pursuant to an exchange offer registered with the SEC.

Registered Public Accounting Firm” has the meaning specified by the Securities Laws and shall be independent of the Albertson’s Group as prescribed by the Securities Laws.

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

Reportable Event” shall mean any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30 day notice period has been waived.

Repricing Transaction” shall mean (1) the incurrence by the Parent Borrower or Safeway or any of their respective Restricted Subsidiaries of any Indebtedness (including, without limitation, any new or additional term loans under this Agreement, whether incurred directly or by way of the conversion of Term B Loans into a new tranche of Replacement Term Loans under this Agreement) that is broadly marketed or syndicated to banks and other institutional investors in financings similar to the facilities provided for in this Agreement (i) having an Effective Yield for the respective Type of such Indebtedness that is less than the Effective Yield for Term B Loans of the respective Type (with the comparative determinations to be made in the reasonable judgment of the Agent consistent with generally accepted financial practices, and without taking into account any fluctuations in ICE LIBOR or comparable rate), but excluding Indebtedness incurred in connection with a Change of Control and (ii) the proceeds of which are used to prepay (or, in the case of a conversion, deemed to prepay or replace), in whole or in part, outstanding principal of Term B Loans, excluding, for the avoidance of doubt, any prepayment made with cash on hand or the proceeds of any revolving loans under the ABL Facility or any Qualified Real Estate Financing Facility or (2) any effective reduction in the Applicable Margin for

 

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Term Loans (e.g., by way of amendment, waiver or otherwise) (with such determination to be made in the reasonable judgment of the Agent, consistent with generally accepted financial practices). Any such determination by the Agent as contemplated by preceding clauses (1) and (2) shall be conclusive and binding on all Lenders holding Term B Loans absent manifest error.

Required Lenders” shall mean, as of any date of determination, Lenders having more than 50% of the sum of the Total Outstandings.

Responsible Officer” shall mean the chief executive officer, president, chief financial officer, vice president, treasurer or assistant treasurer of a Loan Party (or any individual performing substantially similar functions regardless of his or her title) or any of the other individuals designated in writing to the Agent by an existing Responsible Officer of a Loan Party as an authorized signatory of any certificate or other document to be delivered hereunder. Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party.

Restatement Effective Date” shall mean August 25, 2014.

Restricted Payment” shall mean the declaration or payment of any dividend or other distribution (whether in cash, securities or other property) on account of any Equity Interests of Holdings or any Restricted Subsidiary, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, defeasance, acquisition, cancellation, termination of, or other acquisition for value of, any such Equity Interests.

Restricted Subsidiary” shall mean, at any time, any direct or indirect Subsidiary of Holdings that is not then an Unrestricted Subsidiary; provided that upon an Unrestricted Subsidiary ceasing to be an Unrestricted Subsidiary, such Subsidiary shall be included in the definition of “Restricted Subsidiary”.

Retained Disposition Amount” shall mean, with respect to any Applicable Disposition, (a) 100% of the Net Proceeds of such Applicable Disposition minus (b) the amount of such Net Proceeds applied to prepay the Loans pursuant to Section 2.3(b)(ii).

Retained Percentage” shall mean, with respect to any Excess Cash Flow Period, (a) 100% minus (b) the Applicable ECF Percentage with respect to such Excess Cash Flow Period.

S&P” shall mean Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and any successor thereto.

Safeway” shall have the meaning set forth in the Preamble hereto.

Safeway Acquisition” shall have the meaning set forth in the Preamble hereto.

Safeway Merger Agreement” shall have the meaning set forth in the Preamble hereto.

Safeway Notes Repurchases” means any purchase, redemption, defeasance, discharge, or retirement of the Existing Safeway Notes pursuant to the Change of Control Purchase Offers or otherwise.

Safeway Services Agreement” shall mean one or more services agreement between Safeway and NAI to be entered into contemporaneously with or subsequent to the Safeway Acquisition.

 

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Same Day Funds” shall mean immediately available funds.

Sarbanes-Oxley” means the Sarbanes-Oxley Act of 2002.

SEC” shall mean the Securities and Exchange Commission, or any Governmental Authority which may be substituted therefor.

Secured Party” or “Secured Parties” shall mean (a) individually, (i) each Lender, (ii) the Agent, any Arranger, any Lender, or any of their respective Affiliates which has provided Bank Products or Cash Management Services to the Loan Parties (or any Person that was the Agent, an Arranger or a Lender, or an Affiliate of the Agent, an Arranger or a Lender, at the time it entered into such Bank Products or Cash Management Services or, with respect to Bank Products or Cash Management Services entered into prior to the Escrow Release Date, on the Escrow Release Date or in connection with the initial syndication of the Loans), (iii) the Agent, (iv) each Arranger, (v) each beneficiary of each indemnification obligation undertaken by any Loan Party under any Financing Agreement, Bank Product or Cash Management Service, (vi) any other Person to whom Obligations under this Agreement and other Financing Agreement are owing, and (vii) the successors and assigns of each of the foregoing, and (b) collectively, all of the foregoing.

Securities Act” shall mean the Securities Act of 1933, together with all rules, regulations and interpretations thereunder or related thereto.

Securities Laws” shall mean the Securities Act of 1933, the Securities Exchange Act of 1934, Sarbanes-Oxley, and the applicable accounting and auditing principles, rules, standards and practices promulgated, approved or incorporated by the SEC or the PCAOB.

Security Agreement” shall mean the Second Amended and Restated Security Agreement, dated as of Escrow Release Date, among the Parent Borrower, the other grantors party thereto and the Agent in the form of Exhibit E hereto.

Senior Safeway Acquisition Debt” means any Indebtedness of the Loan Parties in the form of senior secured notes, senior secured credit facilities, or any combination thereof to be issued in connection with the consummation of the Safeway Acquisition in an aggregate principal amount of up to (x) $1,145,000,000 minus (y) the positive difference, if any, between (i) $645,000,000, and (ii) the aggregate principal amount of the Existing Safeway Notes purchased on (or within 90 days after) the date the Safeway Acquisition is consummated.

Senior Representative” shall mean, with respect to any series of Permitted First Priority Refinancing Debt or Permitted Junior Priority Refinancing Debt, the trustee, Agent, collateral agent, security agent or similar agent under the indenture or agreement pursuant to which such Indebtedness is issued, incurred or otherwise obtained, as the case may be, and each of their successors in such capacities.

Senior Secured Notes” shall have the meaning set forth in the Preamble hereto.

Senior Secured Agent” shall mean Wilmington Trust, National Association, as notes collateral agent under the indenture for the Senior Secured Notes.

Shareholders’ Equity” shall mean, as of any date of determination, consolidated shareholders’ equity of the Albertson’s Group as of that date determined in accordance with GAAP.

 

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Similar Business” means any business conducted or proposed to be conducted by Holdings and its Restricted Subsidiaries on the Escrow Release Date or any business that is similar, reasonably related, incidental, ancillary or complementary thereto, or is a reasonable extension, development or expansion thereof.

Solvent” and “Solvency” shall mean, with respect to any Person on a particular date, that on such date (a) at fair valuation, all of the properties and assets of such Person are greater than the sum of the debts, including contingent liabilities, of such Person, (b) the present fair saleable value of the properties and assets of such Person will be greater than the amount that would be required to pay the probable liability of such Person on its debts and other liabilities, subordinated, contingent or otherwise, as they become absolute and matured, (c) such Person is able to realize upon its properties and assets and pay its debts and other liabilities, contingent obligations and other commitments as they mature in the normal course of business, (d) such Person does not intend to, and does not believe that it will, incur debts beyond such Person’s ability to pay as such debts mature, and (e) such Person is not engaged in a business or a transaction, and is not about to engage in a business or transaction, for which such Person’s properties and assets would constitute unreasonably small capital after giving due consideration to the prevailing practices in the industry in which such Person is engaged. The amount of all guarantees at any time shall be computed as the amount that, in light of all the facts and circumstances existing at the time, can reasonably be expected to become an actual or matured liability.

Solvency Certificate” shall mean a certificate substantially in the form of Exhibit O executed by the chief financial officer of Holdings.

SPC” shall have the meaning set forth in Section 14.7(k) hereto.

Specified Acquisition Agreement Representations” shall mean (i) with respect to the Safeway Acquisition, the representations and warranties covered by the condition in Section 6.2(a) of the Safeway Merger Agreement (but only with respect to the representations and warranties that are material to the interest of the Lenders, and only to the extent that AB LLC (or its applicable Affiliate) has the right to terminate its obligations under the Safeway Merger Agreement or decline to consummate the Safeway Acquisition as a result of a breach of such representations and warranties and (ii) with respect to any Permitted Acquisition or Investment permitted hereunder to be financed in any part by the proceeds of Incremental Term Loan Commitments, the representations and warranties set forth in the definitive agreement therefor that are material to the interest of the Incremental Term Lenders, and only to the extent that the applicable Loan Party has the right to terminate its obligations under such agreement or decline to consummate the Permitted Acquisition or Investment as a result of a breach of such representations and warranties.

Specified Default” shall mean an Event of Default under Section 11.1(a), (g) or (h).

Specified Representations” shall mean the representations set forth in Sections 8.1(a), 8.1(b)(ii), 8.2(a), 8.2(d), 8.16, 8.17, 8.19, 8.20, 8.21, 8.22, 8.24 and 8.27 (subject to the Collateral and Guarantee Requirement).

Specified Transaction” shall mean any incurrence or repayment of Indebtedness (other than for working capital purposes) or Investment or capital contribution that results in a Person becoming a Restricted Subsidiary or an Unrestricted Subsidiary, any acquisition or any disposition that results in a Restricted Subsidiary ceasing to be a Subsidiary of a Borrower, any Investment constituting an acquisition of assets constituting a business unit, line of business or division of another Person, or any Disposition of a business unit, line of business or division of a Borrower or a Restricted Subsidiary, in each case whether by merger, consolidation, amalgamation or otherwise.

 

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Sponsor” shall mean, individually and collectively, (a) Cerberus Capital Management L.P., (b) Lubert-Adler Real Estate Fund V, L.P., (c) Klaff Realty, L.P., (d) Schottenstein Stores Corporation, and (e) Kimco Realty Corporation.

Standard Securitization Undertakings” shall mean representations, warranties, covenants, indemnities and guarantees of performance entered into by Albertson’s Group which the Parent Borrower has determined in good faith to be customary in a Receivables Financing including, without limitation, those relating to the servicing of the assets of a Receivables Subsidiary, it being understood that any Receivables Repurchase Obligation shall be deemed to be a Standard Securitization Undertaking.

Store” shall mean any retail store (which may include any real property, fixtures, equipment, inventory and other property related thereto) operated, or to be operated, by any Loan Party.

Subordinated Indebtedness” means Indebtedness which is expressly subordinated in right of payment to the prior payment in full of the Obligations pursuant to subordination provisions in form and on terms reasonably approved in writing by the Agent.

Subsidiary” or “subsidiary” shall mean, with respect to any Person, any corporation, limited liability company, limited liability partnership or other limited or general partnership, trust, association or other business entity of which an aggregate of at least a majority of the outstanding Equity Interests or other interests entitled to vote in the election of the board of directors of such corporation (irrespective of whether, at the time, Equity Interests of any other class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency), managers, trustees or other controlling persons, or an equivalent controlling interest therein, of such Person is, at the time, directly or indirectly, owned by such Person and/or one or more subsidiaries of such Person.

Subsidiary Guarantor” shall mean each Subsidiary of a Borrower that is a Guarantor hereunder.

Successor Company” shall have the meaning set forth in Section 10.4(d) hereto.

SVU” shall have the meaning set forth in the Existing Debt Facility.

Swap Contract” shall mean (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement.

Swap Obligation” means any obligation under a Swap Contract.

 

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Swap Termination Value” shall mean, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender).

Synthetic Lease Obligation” shall mean the monetary obligation of a Person under (a) a so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or possession of property (including sale and leaseback transactions), in each case, creating obligations that do not appear on the balance sheet of such Person but which, upon the application of any Debtor Relief Laws to such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment).

Target” shall mean any other Person or business unit or asset group of any other Person acquired or proposed to be acquired in a Permitted Acquisition or a Permitted Investment.

Tax Indemnitee” shall have the meaning set forth in Section 6.1(e) hereto.

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

Term B Loans” shall mean, collectively, the Term B-2 Loans, the Term B-3 Loans, the Term B-4 Loans, the Term B-5 Loans, the 2016-1 Term B-4 Loans, the 2016-2 Term B-4 Loans, the 2017-1 Term B-4 Loans, the 2016-1 Term B-5 Loans, the 2016-2 Term B-5 Loans, the 2017-1 Term B-5 Loans, the Term B-6 Loans, the 2016-1 Term B-6 Loans and, the 2017-1 Term B-6 Loans and 2018 Term B-7 Loans.

Term B-2 Lenders” shall mean, collectively, the Term Lenders with Term B-2 Loans on the Restatement Effective Date.

Term B-2 Loans” shall mean, collectively, (i) the term loans made by the Lenders and reclassified and continued on the Amendment No. 1 Effective Date pursuant to Section 2.1 in respect of the amount set forth under the caption “Term B-2 Commitment” in such Lender’s Lender Addendum (as defined in Amendment No. 1) to Amendment No. 1 or in the Assignment and Acceptance pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement (including Section 2.8) or as allocated by the Agent and (ii) the term loans made by the Lenders and reclassified and continued on the Amendment No. 4 Effective Date pursuant to Section 2.1 in respect of the amount set forth under the caption “Term B-2 Commitment” in such Lender’s Lender Addendum (as defined in Amendment No. 4) to Amendment No. 4 or in the Assignment and Acceptance pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement (including Section 2.8) or as allocated by the Agent. The aggregate amount of the Term B-2 Loans on the Restatement Effective Date is $1,437,032,166.71.

Term B-2 Maturity Date” shall mean March 21, 2019.

 

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Term B-3 Commitments” shall mean, as to each Lender, its obligation to make a Term B-3 Loans to the Parent Borrower pursuant to Section 2.1(a) in an aggregate amount not to exceed the amount set forth opposite such Lender’s name in Schedule 1.01 (as in effect on the Escrow Release Date) under the caption “Term B-3 Commitment” or in the Assignment and Acceptance pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement (including Section 2.8). The initial aggregate amount of the Term B-3 Commitments is $950,000,000.

Term B-3 Lenders” shall mean, collectively, the Term Lenders with Term B-3 Commitments on the Restatement Effective Date.

Term B-3 Loans” shall mean, collectively, the Term Loans made by the Term B-3 Lenders pursuant to Section 2.1.

Term B-3 Maturity Date” shall mean the date that is five (5) years from the Restatement Effective Date.

Term B-4 Commitments” shall mean, as to each Lender, its obligation to make a Term B-4 Loans to the Parent Borrower pursuant to Section 2.1(a) in an aggregate amount not to exceed the amount set forth opposite such Lender’s name in Schedule 1.01 (as in effect on the Escrow Release Date) under the caption “Term B-4 Commitment” or in the Assignment and Acceptance pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement (including Section 2.8). The initial aggregate amount of the Term B-4 Commitments is $3,609,000,000.

Term B-4 Lenders” shall mean, collectively, the Term Lenders with Term B-4 Commitments on the Restatement Effective Date.

Term B-4 Loans” shall mean, collectively, the Term Loans made by the Term B-4 Lenders pursuant to Section 2.1.

Term B-4 Maturity Date” shall mean the date that is seven (7) years from the Restatement Effective Date.

Term B-5 Commitments” shall mean, as to each Lender, its obligation to make a Term B-5 Loan to the Parent Borrower pursuant to Section 2.1(a). The initial aggregate amount of the Term B-5 Commitments is $1,145,000,000.

Term B-5 Lenders” shall mean, collectively, the Term Lenders with Term B-5 Commitments on the Amendment No. 1 (B-5) Effective Date.

Term B-5 Loans” shall mean, collectively, the Term Loans made by the Term B-5 Lenders pursuant to Section 2.1(a).

Term B-5 Maturity Date” shall mean December 21, 2022.

Term B-5 Repricing Event” shall mean (i) any prepayment or repayment of Term B-5 Loans with the proceeds of, or any conversion of such Term B-5 Loans into, any new or replacement tranche of any new or additional term loans under the Term Loan Agreement that is broadly marketed or syndicated to banks and other institutional investors in similar financings (excluding indebtedness incurred in connection with a change of control or acquisition (or similar investment) not otherwise permitted under

 

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this Agreement) and bearing interest at an effective interest rate less than the effective “yield” applicable to the Term B-5 Loans then in effect, and excluding for the avoidance of doubt, any prepayment or repayment of the Term B-5 Loans made with cash on hand or the proceeds of any revolving loans under the ABL Facility, and (ii) any amendment to this Agreement that reduces the effective applicable margin for the Term B-5 Loans.

Term B-6 Borrowing” shall mean a borrowing consisting of Term B-6 Loans of the same Type and, in the case of Eurodollar Rate Loans, an Interest Period as determined by the Parent Borrower in consultation with the Administrative Agent, pursuant to Section 2.1(d).

Term B-6 Commitment” shall means any Exchange Term B-6 Commitment or Additional Term B-6 Commitment, as such commitment may be (a) reduced from time to time pursuant to Section 2.4 and (b) reduced or increased from time to time pursuant to (i) assignments by or to such Lender pursuant to an Assignment and Acceptance, (ii) an Incremental Amendment or (iii) an Extension Election.

Term B-6 Loan” shall mean any Exchange Term B-6 Commitment or Additional Term B-6 Commitment.

Term B-6 Maturity Date” shall mean the date that is seven years from the Amendment No. 4 (B-6) Effective Date.

Term B-6 Repricing Event” shall mean (i) any prepayment or repayment of Term B-6 Loans with the proceeds of, or any conversion of such Term B-6 Loans into, any new or replacement tranche of any new or additional term loans under the this Agreement that is broadly marketed or syndicated to banks and other institutional investors in similar financings (excluding indebtedness incurred in connection with a change of control or acquisition (or similar investment) not otherwise permitted under this Agreement) and bearing interest at an effective interest rate less than the effective “yield” applicable to the Term B-6 Loans then in effect, and excluding for the avoidance of doubt, any prepayment or repayment of the Term B-6 Loans made with cash on hand or the proceeds of any revolving loans under the ABL Facility and (ii) any amendment to this Agreement that reduces the effective applicable margin for the Term B-6 Loans.

Term Commitment” shall mean, as to each Lender, its obligation to make a Term Loan to the Parent Borrower hereunder, expressed as an amount representing the maximum principal amount of the Term Loan to be made by such Lender under this Agreement, as such commitment may be (a) reduced from time to time pursuant to Section 2.3 and (b) reduced or increased from time to time pursuant to (i) assignments by or to such Lender pursuant to an Assignment and Acceptance, (ii) an Incremental Amendment, (iii) a Refinancing Amendment or (iv) an Extension Amendment. The initial amount of each Lender’s Commitment is set forth in Schedule 1.01 under the caption “Term B-3 Commitment”, “Term B-4 Commitment” or, otherwise, in the Assignment and Acceptance, Incremental Amendment or Refinancing Amendment pursuant to which such Lender shall have assumed its Commitment, as the case may be.

Term Lender” shall mean any Lender that had a Term Commitment or any Lender that has purchased a Term Loan pursuant to one or more Assignment and Acceptance in accordance with the terms hereof.

Term Loan” shall mean any Term B Loan, Incremental Term Loan, Other Term Loan or Extended Term Loan, as the context may require.

 

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Term Loan Extension Request” shall have the meaning set forth in Section 2.10(a) hereto.

Term Loan Extension Series” shall have the meaning set forth in Section 2.10(a) hereto.

Term Loan Intercreditor Agreement” shall mean the intercreditor agreement to be dated the date of the Escrow Release Date among the Agent, the Senior Secured Agent, the Parent Borrower and the Guarantors, substantially in the form attached as Exhibit N-2 hereto, as the same may be amended, supplemented, waived or otherwise modified from time to time in accordance with the terms hereof and thereof.

Term Note” shall mean a note evidencing Loans in the form of Exhibit D.

Test Period” shall mean, for any date of determination under this Agreement, the latest four consecutive Quarterly Accounting Periods of Holdings for which financial statements have been delivered to the Agent on or prior to the Escrow Release Date and/or for which financial statements are required to be delivered pursuant to Section 9.5, as applicable.

Third Party Payors” shall mean any private health insurance company that is obligated to reimburse or otherwise make payments to pharmacies which sell prescription drugs to eligible patients under Medicare, Medicaid or any insurance contract with such private health insurer.

Total Assets” shall mean the total consolidated assets of the Albertson’s Group, as shown on the most recent financial statements of Holdings that Agent has received in accordance with Section 9.5 hereof (or of the Parent Borrower and Safeway and shown on the Audited Financial Statements delivered pursuant to Section 4.1 of the Existing Debt Facility, as applicable).

Total Leverage Ratio” shall mean, as of any date of determination, the ratio of (a) Consolidated Total Debt as of such date to (b) EBITDA of the Albertson’s Group for the most recently ended Test Period on or prior to such date.

Total Outstandings” shall mean the aggregate Outstanding Amount of all Loans.

Trading with the Enemy Act” shall have the meaning set forth in Section 8.20.

Transactions” shall mean, collectively, (a) the Equity Contribution, (b) the Debt Refinancing and the Safeway Notes Repurchases, (c) the consummation of the Safeway Acquisition and the other transactions contemplated by the Safeway Merger Agreement, (d) the incurrence of the initial Term Loans hereunder (including the entering into of the Escrow Agreement, the funding of the Escrow Account and the release of the funds therefrom), the ABL Facility Indebtedness and Secured Safeway Acquisition Debt incurred on or prior to the Escrow Release Date, (e) the securing of the Ratably Secured Notes on a second lien basis and (f) the payment of the fees and expenses (including OID and upfront fees) incurred in connection with any of the foregoing.

Transformative Acquisition shall mean any merger, investment or acquisition that is either (a) not permitted by the terms of this Agreement immediately prior to the consummation of such transaction or (b) if permitted by the terms of this Agreement immediately prior to the consummation of such transaction, would not provide Holdings, the Borrowers or the Restricted Subsidiaries with adequate flexibility under this Agreement for the continuation and/or expansion of their combined operations following such consummation, as determined by the Parent Borrower acting in good faith.

 

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Transition Services Agreement” shall mean the Transition Services Agreement, dated of the Original Closing Date, by and between the Parent Borrower and SVU, as the same may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced.

Trust Funds” shall have the same meaning assigned to it in the MoneyGram Agreement (as in effect on the Escrow Release Date).

Type” shall mean, with respect to a Loan, its character as a Base Rate Loan or a Eurodollar Rate Loan.

UCC” shall mean the Uniform Commercial Code as in effect in the State of New York, and any successor statute, as in effect from time to time (except that terms used herein which are defined in the Uniform Commercial Code as in effect in the State of New York on the Escrow Release Date shall continue to have the same meaning notwithstanding any replacement or amendment of such statute except as Agent may otherwise determine); provided, however, that at any time, if by reason of mandatory provisions of law, any or all of the perfections or priority of Agent’s security interest in any item or portion of the Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdictions and any successor statute, as in effect from time to time, for purposes of the provisions hereof relating to such perfection or priority or for purposes of definitions relating to such provisions.

United States Tax Compliance Certificate” shall have the meaning set forth in Section 6.1(d)(2)(C) hereto.

Unrestricted Subsidiary” shall mean (i) as of the Escrow Release Date, each Subsidiary of Holdings listed on Schedule 1.04, (ii) any Subsidiary of Holdings (other than the Parent Borrower or Safeway) designated by the Board of Directors of Holdings as an Unrestricted Subsidiary pursuant to Section 10.14 subsequent to the Escrow Release Date, (iii) each Receivables Subsidiary and (iv) any Subsidiary of an Unrestricted Subsidiary.

U.S. Lender” shall mean any Lender that is a “United States person” as defined in Section 7701(a)(30) of the Code.

Valuation” shall mean, in relation to any Mortgaged Property, a valuation of such Mortgaged Property made at any relevant time by an Approved Broker, on the basis of a sale for prompt delivery for cash at arms’ length on customary commercial terms as between a willing seller and a willing buyer. If any Approved Broker shall deliver a Valuation indicating a range of values for a Mortgaged Property, the Valuation for such Mortgaged Property shall be the arithmetic mean of the two endpoints of such range.

Value Component” shall have the meaning assigned to such term in the definition of Loan-to-Value Ratio.

Voting Stock” shall mean with respect to any Person, (a) one (1) or more classes of Equity Interests of such Person having general voting powers to elect at least a majority of the board of directors, managers or trustees of such Person, irrespective of whether at the time Equity Interests of any other class or classes have or might have voting power by reason of the happening of any contingency, and (b) any Equity Interests of such Person convertible or exchangeable without restriction at the option of the holder thereof into Equity Interests of such Person described in clause (a) of this definition.

 

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Weighted Average Life to Maturity” shall mean, when applied to any Indebtedness at any date, the quotient obtained by dividing (i) the sum of the products of the number of years from the date of determination to the date of each successive scheduled principal payment of such Indebtedness multiplied by the amount of such payment, by (ii) the sum of all such payments.

Wellness Center Assets” means the personal property assets comprising the wellness centers of Holdings and its Subsidiaries.

Write-Down and Conversion Powers” means, 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.

SECTION 2. CREDIT FACILITIES

2.1 Loans.

(a) Prior to (i) the Restatement Effective Date, the Lenders made Term B-2 Loans and (ii) the Escrow Release Date, the Lenders made Term B-3 Loans and Term B-4 Loans to the Parent Borrower. Upon the Escrow Release Date, such existing Term B-2 Loans, Term B-3 Loans and Term B-4 Loans shall be deemed to have been made under this Agreement. On the Amendment No. 1 (B-5) Effective Date, the Lenders made the Term B-5 Loans. Amounts borrowed under this Section 2.1(a) and repaid or prepaid may not be reborrowed. Loans may be Base Rate Loans or Eurodollar Rate Loans as further provided herein.

(b) The 2016-1 Term B-4 Borrowings

(i) Subject to the terms and conditions set forth herein and set forth in Amendment No. 4 (B-6), each Exchange Term B-4 Lender severally agrees to exchange its Exchanged Term B-4 Loans for a like principal amount of Exchange 2016-1 Term B-4 Loans on the Amendment No. 4 (B-6) Effective Date. Exchange 2016-1 Term B-4 Loans repaid or prepaid may not be reborrowed. Exchange 2016-1 Term B-4 Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. All Exchange 2016-1 Term B-4 Loans exchanged on the Amendment No. 4 (B-6) Effective Date by Lenders of Exchanged Term B-4 Loans will initially have the same Type of Loan and Interest Period applicable to such Exchanged Term B-4 Loans (which may be an Interest Period ending on the same date as the Interest Period applicable to such Exchanged Term B-4 Loans being refinanced, notwithstanding the required periods set forth in the definition of Interest Period).

(ii) Subject to the terms and conditions set forth herein and set forth in Amendment No. 4 (B-6), each Additional 2016-1 Term B-4 Lender severally agrees to make an Additional 2016-1 Term B-4 Loan to the Borrowers on the Amendment No. 4 (B-6) Effective Date in the principal amount equal to its Additional 2016-1 Term B-4 Commitment on the Amendment No. 4 (B-6) Effective Date. The Borrowers shall prepay the Non-Exchanged Term B-4 Loans with a like amount of the gross proceeds of the Additional 2016-1 Term B-4 Loans, concurrently with the receipt thereof. Amounts borrowed under this clause (ii) and repaid or prepaid may not be reborrowed. Additional 2016-1 Term B-4 Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. All Additional 2016-1 Term B-4 Loans will have the Type of Loan and Interest Period specified in the Committed Loan Notice delivered in connection therewith (which may be an Interest Period ending on the same date as the Interest Period applicable to such Non-Exchanged Term B-4 Loans being refinanced, notwithstanding the required periods set forth in the definition of Interest Period).

 

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(iii) The Borrowers shall pay to each Term B-4 Lender, substantially concurrently with the effectiveness of Amendment No. 4 (B-6), all accrued and unpaid interest on its Term B-4 Loans, as applicable, to, but not including, the Amendment No. 4 (B-6) Effective Date on such Amendment No. 4 (B-6) Effective Date.

(c) The 2016-1 Term B-5 Borrowings

(i) Subject to the terms and conditions set forth herein and set forth in Amendment No. 4 (B-6), each Exchange Term B-5 Lender severally agrees to exchange its Exchanged Term B-5 Loans for a like principal amount of Exchange 2016-1 Term B-5 Loans on the Amendment No. 4 (B-6) Effective Date. Exchange 2016-1 Term B-5 Loans repaid or prepaid may not be reborrowed. Exchange 2016-1 Term B-5 Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. All Exchange 2016-1 Term B-5 Loans exchanged on the Amendment No. 4 (B-6) Effective Date by Lenders of Exchanged Term B-5 Loans will initially have the same Type of Loan and Interest Period applicable to such Exchanged Term B-5 Loans (which may be an Interest Period ending on the same date as the Interest Period applicable to such Exchanged Term B-5 Loans being refinanced, notwithstanding the required periods set forth in the definition of Interest Period).

(ii) Subject to the terms and conditions set forth herein and set forth in Amendment No. 4 (B-6), each Additional 2016-1 Term B-5 Lender severally agrees to make an Additional 2016-1 Term B-5 Loan to the Borrowers on the Amendment No. 4 (B-6) Effective Date in the principal amount equal to its Additional 2016-1 Term B-5 Commitment on the Amendment No. 4 (B-6) Effective Date. The Borrowers shall prepay the Non-Exchanged Term B-5 Loans with a like amount of the gross proceeds of the Additional 2016-1 Term B-5 Loans, concurrently with the receipt thereof. Amounts borrowed under this clause (ii) and repaid or prepaid may not be reborrowed. Additional 2016-1 Term B-5 Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. All Additional 2016-1 Term B-5 Loans will have the Type of Loan and Interest Period specified in the Committed Loan Notice delivered in connection therewith (which may be an Interest Period ending on the same date as the Interest Period applicable to such Non-Exchanged Term B-5 Loans being refinanced, notwithstanding the required periods set forth in the definition of Interest Period).

(iii) The Borrowers shall pay to each Term B-5 Lender, substantially concurrently with the effectiveness of Amendment No. 4 (B-6), all accrued and unpaid interest on its Term B-5 Loans, as applicable, to, but not including, the Amendment No. 4 (B-6) Effective Date on such Amendment No. 4 Effective Date.

(d) The Term B-6 Borrowings

(i) Subject to the terms and conditions set forth herein and set forth in Amendment No. 4 (B-6), each Exchange Term B-2 Lender and Exchange Term B-3 Lender severally agrees to exchange its Exchanged Term B-2 Loans or Exchanged Term B-3 Loans, as applicable, for a like principal amount of Exchange Term B-6 Loans on the Amendment No. 4 (B-6) Effective Date. Exchange Term B-6 Loans repaid or prepaid may not be reborrowed. Exchange Term B-6 Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. All Exchange Term B-6 Loans exchanged on the Amendment No. 4 (B-6) Effective Date by Lenders of Exchanged Term B-2 Loans or Exchanged Term B-3 Loans, as applicable, will initially be a Type and have an Interest Period as determined by the Parent Borrower in consultation with the Administrative Agent (which may be an Interest Period ending on the same date as the Interest Period applicable to the Exchanged Term B-2 Loans or Exchanged Term B-3 Loans being refinanced, notwithstanding the required periods set forth in the definition of Interest Period).

 

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(ii) Subject to the terms and conditions set forth herein and set forth in Amendment No. 4 (B-6), each Additional Term B-6 Lender severally agrees to make an Additional Term B-6 Loan to the Borrowers on the Amendment No. 4 (B-6) Effective Date in the principal amount equal to its Additional Term B-6 Commitment on the Amendment No. 4 (B-6) Effective Date. The Borrowers shall prepay the Non-Exchanged Term B-2 Loans and Non-Exchanged Term B-3 Loans with a like amount of the gross proceeds of the Additional Term B-6 Loans, concurrently with the receipt thereof. Amounts borrowed under this clause (ii) and repaid or prepaid may not be reborrowed. Additional Term B-6 Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. All Additional Term B-6 Loans will have the Type of Loan and Interest Period specified in the Committed Loan Notice delivered in connection therewith (which may be an Interest Period ending on the same date as the Interest Period applicable to the Non-Exchanged Term B-2 Loans or Non-Exchanged Term B-3 Loans being refinanced, notwithstanding the required periods set forth in the definition of Interest Period).

(iii) The Borrowers shall pay to each Term B-2 Lender and Term B-3 Lender, substantially concurrently with the effectives of Amendment No. 4 (B-6), all accrued and unpaid interest on its Term B-2 Loans or Term B-3 Loans, as applicable, to, but not including, the Amendment No. 4 (B-6) Effective Date on such Amendment No. 4 Effective Date.

(e) The 2016-2 Term B-4 Borrowings

(i) Subject to the terms and conditions set forth herein and set forth in Amendment No. 5 (2016-2), each Exchange 2016-1 Term B-4 Lender severally agrees to exchange its Exchanged 2016-1 Term B-4 Loans for a like principal amount of Exchange 2016-2 Term B-4 Loans on the Amendment No. 5 (2016-2) Effective Date. Exchange 2016-2 Term B-4 Loans repaid or prepaid may not be reborrowed. Exchange 2016-2 Term B-4 Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. All Exchange 2016-2 Term B-4 Loans exchanged on the Amendment No. 5 (2016-2) Effective Date by Lenders of Exchanged 2016-1 Term B-4 Loans will initially have the same Type of Loan and Interest Period applicable to such Exchanged 2016-1 Term B-4 Loans (which may be an Interest Period ending on the same date as the Interest Period applicable to such Exchanged 2016-1 Term B-4 Loans being refinanced, notwithstanding the required periods set forth in the definition of Interest Period).

(ii) Subject to the terms and conditions set forth herein and set forth in Amendment No. 5 (2016-2), each Additional 2016-2 Term B-4 Lender severally agrees to make an Additional 2016-2 Term B-4 Loan to the Borrowers on the Amendment No. 5 (2016-2) Effective Date in the principal amount equal to its Additional 2016-2 Term B-4 Commitment on the Amendment No. 5 (2016-2) Effective Date. The Borrowers shall prepay the Non-Exchanged 2016-1 Term B-4 Loans with a like amount of the gross proceeds of the Additional 2016-2 Term B-4 Loans, concurrently with the receipt thereof. Amounts borrowed under this clause (ii) and repaid or prepaid may not be reborrowed. Additional 2016-2 Term B-4 Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. All Additional 2016-2 Term B-4 Loans will have the Type of Loan and Interest Period specified in the Committed Loan Notice delivered in connection therewith (which may be an Interest Period ending on the same date as the Interest Period applicable to such Non-Exchanged 2016-1 Term B-4 Loans being refinanced, notwithstanding the required periods set forth in the definition of Interest Period).

(iii) The Borrowers shall pay to each 2016-1 Term B-4 Lender, substantially concurrently with the effectiveness of Amendment No. 5 (2016-2), all accrued and unpaid interest on its 2016-1 Term B-4 Loans, as applicable, to, but not including, the Amendment No. 5 (2016-2) Effective Date on such Amendment No. 5 (2016-2) Effective Date.

 

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(f) The 2016-2 Term B-5 Borrowings

(i) Subject to the terms and conditions set forth herein and set forth in Amendment No. 5 (2016-2), each Exchange 2016-1 Term B-5 Lender severally agrees to exchange its Exchanged 2016-1 Term B-5 Loans for a like principal amount of Exchange 2016-2 Term B-5 Loans on the Amendment No. 5 (2016-2) Effective Date. Exchange 2016-2 Term B-5 Loans repaid or prepaid may not be reborrowed. Exchange 2016-2 Term B-5 Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. All Exchange 2016-2 Term B-5 Loans exchanged on the Amendment No. 5 (2016-2) Effective Date by Lenders of Exchanged 2016-1 Term B-5 Loans will initially have the same Type of Loan and Interest Period applicable to such Exchanged 2016-1 Term B-5 Loans (which may be an Interest Period ending on the same date as the Interest Period applicable to such Exchanged 2016-1 Term B-5 Loans being refinanced, notwithstanding the required periods set forth in the definition of Interest Period).

(ii) Subject to the terms and conditions set forth herein and set forth in Amendment No. 5 (2016-2), each Additional 2016-2 Term B-5 Lender severally agrees to make an Additional 2016-2 Term B-5 Loan to the Borrowers on the Amendment No. 5 (2016-2) Effective Date in the principal amount equal to its Additional 2016-2 Term B-5 Commitment on the Amendment No. 5 (2016-2) Effective Date. The Borrowers shall prepay the Non-Exchanged 2016-1 Term B-5 Loans with a like amount of the gross proceeds of the Additional 2016-2 Term B-5 Loans, concurrently with the receipt thereof. Amounts borrowed under this clause (ii) and repaid or prepaid may not be reborrowed. Additional 2016-2 Term B-5 Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. All Additional 2016-2 Term B-5 Loans will have the Type of Loan and Interest Period specified in the Committed Loan Notice delivered in connection therewith (which may be an Interest Period ending on the same date as the Interest Period applicable to such Non-Exchanged 2016-1 Term B-5 Loans being refinanced, notwithstanding the required periods set forth in the definition of Interest Period).

(iii) The Borrowers shall pay to each 2016-1 Term B-5 Lender, substantially concurrently with the effectiveness of Amendment No. 5 (2016-2), all accrued and unpaid interest on its 2016-1 Term B-5 Loans, as applicable, to, but not including, the Amendment No. 5 (2016-2) Effective Date on such Amendment No. 5 (2016-2) Effective Date.

(g) The 2016-1 Term B-6 Borrowings

(i) Subject to the terms and conditions set forth herein and set forth in Amendment No. 5 (2016-2), each Exchange Term B-6 Lender severally agrees to exchange its Exchanged Term B-6 Loans for a like principal amount of Exchange 2016-1 Term B-6 Loans on the Amendment No. 5 (2016-2) Effective Date. Exchange 2016-1 Term B-6 Loans repaid or prepaid may not be reborrowed. Exchange 2016-1 Term B-6 Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. All Exchange 2016-1 Term B-6 Loans exchanged on the Amendment No. 5 (2016-2) Effective Date by Lenders of Exchanged Term B-6 Loans will initially be a Type and have an Interest Period as determined by the Parent Borrower in consultation with the Administrative Agent (which may be an Interest Period ending on the same date as the Interest Period applicable to the Exchanged Term B-6 Loans being refinanced, notwithstanding the required periods set forth in the definition of Interest Period).

(ii) Subject to the terms and conditions set forth herein and set forth in Amendment No. 5 (2016-2), each Additional 2016-1 Term B-6 Lender severally agrees to make an Additional 2016-1 Term B-6 Loan to the Borrowers on the Amendment No. 5 (2016-2) Effective Date in the principal amount equal to its Additional 2016-1 Term B-6 Commitment on the Amendment No. 5 (2016-2)

 

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Effective Date. The Borrowers shall prepay the Non-Exchanged Term B-6 Loans with a like amount of the gross proceeds of the Additional 2016-1 Term B-6 Loans, concurrently with the receipt thereof. Amounts borrowed under this clause (ii) and repaid or prepaid may not be reborrowed. Additional 2016-1 Term B-6 Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. All Additional 2016-1 Term B-6 Loans will have the Type of Loan and Interest Period specified in the Committed Loan Notice delivered in connection therewith (which may be an Interest Period ending on the same date as the Interest Period applicable to the Non-Exchanged Term B-6 Loans being refinanced, notwithstanding the required periods set forth in the definition of Interest Period).

(iii) The Borrowers shall pay to each Term B-6 Lender, substantially concurrently with the effectives of Amendment No. 5 (2016-2), all accrued and unpaid interest on its Term B-6 Loans to, but not including, the Amendment No. 5 (2016-2) Effective Date on such Amendment No. 5 (2016-2) Effective Date.

(h) The 2017-1 Term B-4 Borrowings

(i) Subject to the terms and conditions set forth herein and set forth in Amendment No. 6 (2017-1), each Exchange 2016-2 Term B-4 Lender severally agrees to exchange its Exchanged 2016-2 Term B-4 Loans for a like principal amount of Exchange 2017-1 Term B-4 Loans on the Amendment No. 6 (2017-1) Effective Date. Exchange 2017-1 Term B-4 Loans repaid or prepaid may not be reborrowed. Exchange 2017-1 Term B-4 Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. All Exchange 2017-1 Term B-4 Loans exchanged on the Amendment No. 6 (2017-1) Effective Date by Lenders of Exchanged 2016-2 Term B-4 Loans will initially have the same Type of Loan and Interest Period applicable to such Exchanged 2016-2 Term B-4 Loans (which may be an Interest Period ending on the same date as the Interest Period applicable to such Exchanged 2016-2 Term B-4 Loans being refinanced, notwithstanding the required periods set forth in the definition of Interest Period).

(ii) Subject to the terms and conditions set forth herein and set forth in Amendment No. 6 (2017-1), each Additional 2017-1 Term B-4 Lender severally agrees to make an Additional 2017-1 Term B-4 Loan to the Borrowers on the Amendment No. 6 (2017-1) Effective Date in the principal amount equal to its Additional 2017-1 Term B-4 Commitment on the Amendment No. 6 (2017-1) Effective Date. The Borrowers shall prepay the Non-Exchanged 2016-2 Term B-4 Loans with a like amount of the gross proceeds of the Additional 2017-1 Term B-4 Loans, concurrently with the receipt thereof. Amounts borrowed under this clause (ii) and repaid or prepaid may not be reborrowed. Additional 2017-1 Term B-4 Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. All Additional 2017-1 Term B-4 Loans will have the Type of Loan and Interest Period specified in the Committed Loan Notice delivered in connection therewith (which may be an Interest Period ending on the same date as the Interest Period applicable to such Non-Exchanged 2016-2 Term B-4 Loans being refinanced, notwithstanding the required periods set forth in the definition of Interest Period).

(iii) The Borrowers shall pay to each 2016-2 Term B-4 Lender, substantially concurrently with the effectiveness of Amendment No. 6 (2017-1), all accrued and unpaid interest on its 2016-2 Term B-4 Loans, as applicable, to, but not including, the Amendment No. 6 (2017-1) Effective Date on such Amendment No. 6 (2017-1) Effective Date.

(i) The 2017-1 Term B-5 Borrowings

(i) Subject to the terms and conditions set forth herein and set forth in Amendment No. 6 (2017-1), each Exchange 2016-2 Term B-5 Lender severally agrees to exchange its Exchanged

 

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2016-2 Term B-5 Loans for a like principal amount of Exchange 2017-1 Term B-5 Loans on the Amendment No. 6 (2017-1) Effective Date. Exchange 2017-1 Term B-5 Loans repaid or prepaid may not be reborrowed. Exchange 2017-1 Term B-5 Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. All Exchange 2017-1 Term B-5 Loans exchanged on the Amendment No. 6 (2017-1) Effective Date by Lenders of Exchanged 2016-2 Term B-5 Loans will initially have the same Type of Loan and Interest Period applicable to such Exchanged 2016-2 Term B-5 Loans (which may be an Interest Period ending on the same date as the Interest Period applicable to such Exchanged 2016-2 Term B-5 Loans being refinanced, notwithstanding the required periods set forth in the definition of Interest Period).

(ii) Subject to the terms and conditions set forth herein and set forth in Amendment No. 6 (2017-1), each Additional 2017-1 Term B-5 Lender severally agrees to make an Additional 2017-1 Term B-5 Loan to the Borrowers on the Amendment No. 6 (2017-1) Effective Date in the principal amount equal to its Additional 2017-1 Term B-5 Commitment on the Amendment No. 6 (2017-1) Effective Date. The Borrowers shall prepay the Non-Exchanged 2016-2 Term B-5 Loans with a like amount of the gross proceeds of the Additional 2017-1 Term B-5 Loans, concurrently with the receipt thereof. Amounts borrowed under this clause (ii) and repaid or prepaid may not be reborrowed. Additional 2017-1 Term B-5 Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. All Additional 2017-1 Term B-5 Loans will have the Type of Loan and Interest Period specified in the Committed Loan Notice delivered in connection therewith (which may be an Interest Period ending on the same date as the Interest Period applicable to such Non-Exchanged 2016-2 Term B-5 Loans being refinanced, notwithstanding the required periods set forth in the definition of Interest Period).

(iii) The Borrowers shall pay to each 2016-2 Term B-5 Lender, substantially concurrently with the effectiveness of Amendment No. 6 (2017-1), all accrued and unpaid interest on its 2016-2 Term B-5 Loans, as applicable, to, but not including, the Amendment No. 6 (2017-1) Effective Date on such Amendment No. 6 (2017-1) Effective Date.

(j) The 2017-1 Term B-6 Borrowings

(i) Subject to the terms and conditions set forth herein and set forth in Amendment No. 6 (2017-1), each Exchange 2016-1 Term B-6 Lender severally agrees to exchange its Exchanged 2016-1 Term B-6 Loans for a like principal amount of Exchange 2017-1 Term B-6 Loans on the Amendment No. 6 (2017-1) Effective Date. Exchange 2017-1 Term B-6 Loans repaid or prepaid may not be reborrowed. Exchange 2017-1 Term B-6 Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. All Exchange 2017-1 Term B-6 Loans exchanged on the Amendment No. 6 (2017-1) Effective Date by Lenders of Exchanged 2016-1 Term B-6 Loans will initially have the same Type of Loan and Interest Period applicable to such Exchanged 2016-1 Term B-6 Loans (which may be an Interest Period ending on the same date as the Interest Period applicable to such Exchanged 2016-1 Term B-6 Loans being refinanced, notwithstanding the required periods set forth in the definition of Interest Period).

(ii) Subject to the terms and conditions set forth herein and set forth in Amendment No. 6 (2017-1), each Additional 2017-1 Term B-6 Lender severally agrees to make an Additional 2017-1 Term B-6 Loan to the Borrowers on the Amendment No. 6 (2017-1) Effective Date in the principal amount equal to its Additional 2017-1 Term B-6 Commitment on the Amendment No. 6 (2017-1) Effective Date. The Borrowers shall prepay the Non-Exchanged 2016-1 Term B-6 Loans with a like amount of the gross proceeds of the Additional 2017-1 Term B-6 Loans, concurrently with the receipt thereof. Amounts borrowed under this clause (ii) and repaid or prepaid may not be reborrowed. Additional 2017-1 Term B-6 Loans may be Base Rate Loans or Eurodollar Rate Loans, as further

 

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provided herein. All Additional 2017-1 Term B-6 Loans will have the Type of Loan and Interest Period specified in the Committed Loan Notice delivered in connection therewith (which may be an Interest Period ending on the same date as the Interest Period applicable to such Non-Exchanged 2016-1 Term B-6 Loans being refinanced, notwithstanding the required periods set forth in the definition of Interest Period).

(iii) The Borrowers shall pay to each 2016-1 Term B-6 Lender, substantially concurrently with the effectiveness of Amendment No. 6 (2017-1), all accrued and unpaid interest on its 2016-1 Term B-6 Loans, as applicable, to, but not including, the Amendment No. 6 (2017-1) Effective Date on such Amendment No. 6 (2017-1) Effective Date.

(k) The 2018 Term B-7 Borrowings

(i) Subject to the terms and conditions set forth herein and set forth in Amendment No. 7 (2018), each Exchange 2017-1 Term B-4 Lender severally agrees to exchange its Exchanged 2017-1 Term B-4 Loans for a like principal amount of Exchange 2018 Term B-7 Loans on the Amendment No. 7 (2018) Effective Date. Exchange 2018 Term B-7 Loans repaid or prepaid may not be reborrowed. Exchange 2018 Term B-7 Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. All Exchange 2018 Term B-7 Loans exchanged on the Amendment No. 7 (2018) Effective Date by Lenders of Exchanged 2017-1 Term B-4 Loans will initially have the same Type of Loan and Interest Period applicable to such Exchanged 2017-1 Term B-4 Loans (which may be an Interest Period ending on the same date as the Interest Period applicable to such Exchanged 2017-1 Term B-4 Loans being refinanced, notwithstanding the required periods set forth in the definition of Interest Period).

(ii) Subject to the terms and conditions set forth herein and set forth in Amendment No. 7 (2018), each Additional 2018 Term B-7 Lender severally agrees to make an Additional 2018 Term B-7 Loan to the Borrowers on the Amendment No. 7 (2018) Effective Date in the principal amount equal to its Additional 2018 Term B-7 Commitment on the Amendment No. 7 (2018) Effective Date. The Borrowers shall prepay the Non-Exchanged 2017-1 Term B-4 Loans with a like amount of the gross proceeds of the Additional 2018 Term B-4 Loans, concurrently with the receipt thereof. Amounts borrowed under this clause (ii) and repaid or prepaid may not be reborrowed. Additional 2018 Term B-7 Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. All Additional 2018 Term B-7 Loans will have the Type of Loan and Interest Period specified in the Committed Loan Notice delivered in connection therewith (which may be an Interest Period ending on the same date as the Interest Period applicable to such Non-Exchanged 2017-1 Term B-4 Loans being refinanced, notwithstanding the required periods set forth in the definition of Interest Period).

(iii) The Borrowers shall pay to each 2017-1 Term B-4 Lender, substantially concurrently with the effectiveness of Amendment No. 7 (2018), all accrued and unpaid interest on its 2017-1 Term B-4 Loans, as applicable, to, but not including, the Amendment No. 7 (2018) Effective Date on such Amendment No. 7 (2018) Effective Date.

(l) (k) Each Borrowing, each conversion of Term Loans from one Type to the other, and each continuation of Eurodollar Rate Loans shall be made upon the applicable Borrower’s irrevocable written notice, to the Agent. Each such notice must be received by the Agent not later than 11:00 a.m. (New York, New York time) (1) three (3) Business Days prior to the requested date of any Borrowing or continuation of Eurodollar Rate Loans or any conversion of Base Rate Loans to Eurodollar Rate Loans, and (2) on the requested date of any Borrowing of Base Rate Loans. Except as provided in Section 2.8, each Borrowing of, conversion to or continuation of Eurodollar Rate Loans shall be in a minimum principal amount of $1,000,000, or a whole multiple of $100,000, in excess thereof. Except as provided

 

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in Section 2.8, each Borrowing of or conversion to Base Rate Loans shall be in a minimum principal amount of $1,000,000 or a whole multiple of $100,000 in excess thereof. Each Committed Loan Notice shall specify (i) whether the applicable Borrower is requesting a Borrowing, a conversion of Term Loans from one Type to the other or a continuation of Eurodollar Rate Loans, (ii) the requested date of the Borrowing, conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal amount of Loans to be borrowed, converted or continued, (iv) the Type of Loans to be borrowed or to which existing Term Loans are to be converted, (v) if applicable, the duration of the Interest Period with respect thereto and (vi) wire instructions of the account(s) to which funds are to be disbursed (it being understood, for the avoidance of doubt, that the amount to be disbursed to any particular account may be less than the minimum or multiple limitations set forth above so long as the aggregate amount to be disbursed to all such accounts pursuant to such Borrowing meets such minimums and multiples); provided that in the case of the Borrowings on the Restatement Effective Date such accounts were the Escrow Account. If the applicable Borrower fails to specify a Type of Loan in a Committed Loan Notice or fail to give a timely notice requesting a conversion or continuation, then the applicable Term Loans shall be made as, or converted to, Base Rate Loans. Any such automatic conversion to Base Rate Loans shall be effective as of the last day of the Interest Period then in effect with respect to the applicable Eurodollar Rate Loans. If the applicable Borrower requests a Borrowing of, conversion to, or continuation of Eurodollar Rate Loans in any such Committed Loan Notice, but fails to specify an Interest Period, it will be deemed to have specified an Interest Period of one (1) month.

(m) (l) Following receipt of a Committed Loan Notice, the Agent shall promptly notify each Lender of the amount of its Pro Rata Share or other applicable share provided for under this Agreement of the applicable Class of Loans, and if no timely notice of a conversion or continuation is provided by the applicable Borrower, the Agent shall notify each Lender of the details of any automatic conversion to Base Rate Loans or continuation described in Section 2.1(b). In the case of each Borrowing, each Lender shall make the amount of its Loan available to the Agent in Same Day Funds at the Agent’s Office not later than 1:00 p.m. on the Business Day specified in the applicable Committed Loan Notice. The Agent shall make all funds so received available to the applicable Borrower in like funds as received by the Agent either by (i) crediting the account(s) of the applicable Borrower on the books of the Agent with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided by the applicable Borrower to (and reasonably acceptable to) the Agent.

(n) (m) Except as otherwise provided herein, a Eurodollar Rate Loan may be continued or converted only on the last day of an Interest Period for such Eurodollar Rate Loan unless the applicable Borrower pays the amount due, if any, under Section 3.3 in connection therewith. During the occurrence and continuation of an Event of Default, the Agent or the Required Lenders may require that no Loans may be converted to or continued as Eurodollar Rate Loans.

(o) (n) The Agent shall promptly notify the Borrowers and the Lenders of the interest rate applicable to any Interest Period for Eurodollar Rate Loans upon determination of such interest rate. The determination of the Eurodollar Rate by the Agent shall be conclusive in the absence of manifest error. At any time that Base Rate Loans are outstanding, the Agent shall notify the Borrowers and the Lenders of any change in Credit Suisse’s prime rate used in determining the Base Rate promptly following the public announcement of such change.

(p) (o) After giving effect to all Borrowings, all conversions of Term Loans from one Type to the other and all continuations of Term Loans as the same Type, there shall not be more than six (6) Interest Periods in effect; provided that after the establishment of any new Class of Loans pursuant to a Refinancing Amendment or Extension Amendment, the number of Interest Periods otherwise permitted by this Section 2.1(l) shall increase by three (3) Interest Periods for each applicable Class so established.

 

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(q) (p) The failure of any Lender to make the Loan to be made by it as part of any Borrowing shall not relieve any other Lender of its obligation, if any, hereunder to make its Loan on the date of such Borrowing, but no Lender shall be responsible for the failure of any other Lender to make the Loan to be made by such other Lender on the date of any Borrowing.

(r) (q) Unless the Agent shall have received notice from a Lender prior to the date of any Borrowing that such Lender will not make available to the Agent such Lender’s Pro Rata Share or other applicable share provided for under this Agreement of such Borrowing, the Agent may assume that such Lender has made such Pro Rata Share or other applicable share provided for under this Agreement available to the Agent on the date of such Borrowing in accordance with paragraph (b) above, and the Agent may, in reliance upon such assumption, make available to the applicable Borrower on such date a corresponding amount. If the Agent shall have so made funds available, then, to the extent that such Lender shall not have made such portion available to the Agent, each of such Lender and the applicable Borrower severally agree to repay to the Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to the applicable Borrower until the date such amount is repaid to the Agent at (i) in the case of a Borrower, the interest rate applicable at the time to the Loans comprising such Borrowing and (ii) in the case of such Lender, the Overnight Rate plus any administrative, processing, or similar fees customarily charged by the Agent in accordance with the foregoing. A certificate of the Agent submitted to any Lender with respect to any amounts owing under this Section 2.1(qr) shall be conclusive in the absence of manifest error. If the applicable Borrower and such Lender shall pay such interest to the Agent for the same or an overlapping period, the Agent shall promptly remit to such Borrower the amount of such interest paid by such Borrower for such period. If such Lender pays its share of the applicable Borrowing to the Agent, then the amount so paid shall constitute such Lender’s Loan included in such Borrowing. Any payment by a Borrower shall be without prejudice to any claim such Borrower may have against a Lender that shall have failed to make such payment to the Agent.

2.2 Repayment of Loans. The Borrowers jointly and severally agree to repay to the Agent for the ratable account of the Lenders (i) on the last Business Day of each March, June, September and December, commencing on the first full Quarterly Accounting Period of Holdings after the Escrow Release Date, an aggregate amount equal to 0.25% of the aggregate principal amount of all Term B-2 Loans outstanding on the Amendment No. 4 Effective Date (which payments shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.3(b)), (ii) on the last Business Day of each March, June, September and December, commencing on the last day of the first full Quarterly Accounting Period of Holdings after the Escrow Release Date, the respective percentage of the aggregate principal amount of all Term B-3 Loans outstanding on the Restatement Effective Date (which payments shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.3(b)):

 

Date

   Percentage  

1st-4th Quarterly Accounting Periods after Restatement Effective Date

     1.250

5th-8th Quarterly Accounting Periods after Restatement Effective

     1.875

9th-12th Quarterly Accounting Periods after Restatement Effective

     3.125

13th-19th Quarterly Accounting Periods after Restatement Effective

     3.750

(iii) on the last Business Day of each March, June, September and December, commencing on the last day of the first full Quarterly Accounting Period of Holdings after the Escrow Release Date, an aggregate amount equal to 0.25% of the aggregate principal amount of all Term B-4 Loans outstanding on the Restatement Effective Date (which payments shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.3(b)), (iv) on the Term B-2 Maturity Date, the aggregate principal amount of all Term B-2 Loans outstanding on such date, (v) on the

 

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Term B-3 Maturity Date, the aggregate principal amount of all Term B-3 Loans outstanding on such date, (vi) on the Term B-4 Maturity Date, the aggregate principal amount of all Term B-4 Loans outstanding on such date, (vii) on the last Business Day of each March, June, September and December, commencing on March 31, 2016, an aggregate amount equal to 0.25% of the aggregate principal amount of all Term B-5 Loans (which payments shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.3(b)), (viii) on the last Business Day of each March, June, September and December, commencing on the last day of the first full Quarterly Accounting Period after the Amendment No. 4 (B-6) Effective Date, an aggregate amount equal to 0.25% of the aggregate principal amount of all 2016-1 Term B-4 Loans (which payments shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.3(b)); (ix) on the last Business Day of each March, June, September and December, commencing on the last day of the first full Quarterly Accounting Period after the Amendment No. 4 (B-6) Effective Date, an aggregate amount equal to 0.25% of the aggregate principal amount of all 2016-1 Term B-5 Loans (which payments shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.3(b)), (x) on the last Business Day of each March, June, September and December, commencing on the last day of the first full Quarterly Accounting Period after the Amendment No. 4 (B-6) Effective Date, an aggregate amount equal to 0.25% of the aggregate principal amount of all Term B-6 Loans (which payments shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.3(b)), (xi) on the last Business Day of each March, June, September and December, commencing on March 31, 2017, an aggregate amount equal to 0.25% of the aggregate principal amount of all 2016-2 Term B-4 Loans (which payments shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.3(b)), (xii) on the last Business Day of each March, June, September and December, commencing on March 31, 2017, an aggregate amount equal to 0.25% of the aggregate principal amount of all 2016-2 Term B-5 Loans (which payments shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.3(b)), (xiii) on the last Business Day of each March, June, September and December, commencing on March 31, 2017, an aggregate amount equal to 0.25% of the aggregate principal amount of all 2016-1 Term B-6 Loans (which payments shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.3(b)), (xiv) on the last Business Day of each March, June, September and December, commencing on September 29, 2017, an aggregate amount equal to 0.25% of the aggregate principal amount of all 2017-1 Term B-4 Loans (which payments shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.3(b)), (xv) on the last Business Day of each March, June, September and December, commencing on September 29, 2017, an aggregate amount equal to 0.25% of the aggregate principal amount of all 2017-1 Term B-5 Loans (which payments shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.3(b)) and, (xvi) on the last Business Day of each March, June, September and December, commencing on September 29, 2017, an aggregate amount equal to 0.25% of the aggregate principal amount of all 2017-1 Term B-6 Loans (which payments shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.3(b)) and (xvii) on the last Business Day of each March, June, September and December, commencing on March 29, 2019, an aggregate amount equal to 0.25% of the aggregate principal amount of all 2018 Term B-7 Loans (which payments shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.3(b)). To the extent not previously paid, each Class of Term B Loans shall be due and payable on the applicable Term Maturity Date, together with accrued and unpaid interest on the principal amount to the date of payment.

 

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2.3 Prepayments.

(a) Optional.

(i) The Borrowers may, upon notice to the Agent, at any time or from time to time thereafter, without premium or penalty except as provided in clause (d) below, voluntarily prepay the Loans in whole or in part; provided that (1) such notice must be received by the Agent not later than 1:00 p.m. (New York City time) (A) three (3) Business Days prior to any date of prepayment of Eurodollar Rate Loans and (B) on the date of prepayment of Base Rate Loans; (2) any prepayment of Eurodollar Rate Loans shall be in a minimum principal amount of $1,000,000, or a whole multiple of $100,000 in excess thereof; and (3) any prepayment of Base Rate Loans shall be in a minimum principal amount of $500,000 or a whole multiple of $100,000 in excess thereof; or, in the case of clause (2) or (3) of this proviso, if less, the entire principal amount thereof then outstanding. Each such notice shall specify the date and amount of such prepayment and whether such Loan is Eurodollar Rate Loan or a Base Rate Loan and the order of Loan(s) to be prepaid. The Agent will promptly notify each Lender of its receipt of each such notice, and of the amount of such Lender’s Pro Rata Share or, if such prepayment is being made pursuant to Section 2.3(c) or Section 14.7(h), such Lender’s share, of such prepayment. If such notice is given by the Borrowers, the Borrowers shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein. Any prepayment of a Eurodollar Rate Loan shall be accompanied by all accrued interest thereon, together with any additional amounts required pursuant to Section 3.3. In the case of each prepayment of the Loans pursuant to this Section 2.3(a), the Borrowers may in their sole discretion select the Loan or Loans (and the order of maturity of principal payments) to be repaid, and such payment shall be paid to the Appropriate Lenders in accordance with their respective Pro Rata Shares (other than if pursuant to Section 2.3(c) or Section 14.7(h)).

(ii) Notwithstanding anything to the contrary contained in this Agreement, the Borrowers may rescind any notice of prepayment under Section 2.3(a)(i) if such prepayment would have resulted from a refinancing of all of the Facilities or other transaction, which refinancing or other transaction shall not be consummated or shall otherwise be delayed. Each prepayment of Loans pursuant to Section 2.3(a) shall be applied in an order of priority to repayments thereof required pursuant to Section 2.2 as directed by the Parent Borrower and, absent such direction, shall be applied in direct order of maturity to repayments thereof required pursuant to Section 2.2.

(b) Mandatory.

(i) Within five (5) Business Days after financial statements have been delivered pursuant to Section 9.5(a) and the related Compliance Certificate has been delivered, the Parent Borrower shall cause to be prepaid an aggregate amount of Loans in an amount equal to (A) the Applicable ECF Percentage of Excess Cash Flow, if any, for the Excess Cash Flow Period covered by such financial statements (commencing with the Fiscal Year ending February 26, 2015) minus (B) the sum of (1) all voluntary prepayments of Loans during such Fiscal Year pursuant to Section 2.3(a), (2) the amount expended by any Purchasing Borrower Party to prepay any Loans pursuant to Section 2.3(c) or Section 14.7(h), and (3) all voluntary prepayments of loans under the ABL Facility during such Fiscal Year to the extent the commitments under the ABL Facility are permanently reduced by the amount of such payments and, in the case of each of the immediately preceding clauses (1), (2) and (3), to the extent such prepayments are funded with Internally Generated Cash.

(ii) If (1) a Borrower or any Restricted Subsidiary of a Borrower Disposes of any property or assets (other than any Disposition of any property or assets permitted by Section 10.5(a), (b), (c), (e), (f), (g), (h), (i) (to the extent the Disposition is to a Restricted Subsidiary and the property or assets continue

 

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to secure the Obligations with the same priority as prior to such Disposition), (k), (l), (o), (q), (r) or (t)-(v), (x)-(aa)), or (2) any Casualty Event occurs, which results in the realization or receipt by a Borrower or any Restricted Subsidiary of Net Proceeds, the Parent Borrower shall, subject to the terms of the Intercreditor Agreements, cause to be prepaid on or prior to the date which is ten (10) Business Days after the date of the realization or receipt by a Borrower or any Restricted Subsidiary of such Net Proceeds an aggregate principal amount of Loans in an amount equal to (x) in the case of Dispositions described in clause (1) above, an amount equal to the Applicable Disposition Percentage of all Net Proceeds received from such Disposition (excluding the proceeds from the disposition of the Equity Interests in or assets of Casa Ley and (y) in the case of Casualty Events described in clause (2) above, an amount equal to 100% of such Net Proceeds received in connection with such Casualty Events; provided that (x) if any Incremental Equivalent Debt have been issued in compliance with Sections 10.1 and 10.3 with Liens ranking pari passu with the Liens securing the Obligations pursuant to the Intercreditor Agreements, then the Parent Borrower may cause Loans to be prepaid and, to the extent required pursuant to the terms of the documentation governing such Incremental Equivalent Debt, cause such Incremental Equivalent Debt to be purchased (at a purchase price no greater than par plus accrued and unpaid interest) on a pro rata basis in accordance with the respective principal amounts thereof and (y) if at the time that any such prepayment would be required, the Parent Borrower is required to offer to repurchase or to prepay Permitted First Priority Refinancing Debt (or any Permitted Refinancing thereof that is secured on a pari passu basis with the Obligations) pursuant to the terms of the documentation governing such Indebtedness with the net proceeds of such Disposition or Casualty Event (such Permitted First Priority Refinancing Debt (or Permitted Refinancing thereof) required to be offered to be so repurchased or prepaid, “Other Applicable Indebtedness”), then the Parent Borrower may apply such Net Proceeds on a pro rata basis (determined on the basis of the aggregate outstanding principal amount of the Term Loans and Other Applicable Indebtedness at such time; provided that the portion of such Net Proceeds allocated to the Other Applicable Indebtedness shall not exceed the amount of such net proceeds required to be allocated to the Other Applicable Indebtedness pursuant to the terms thereof, and the remaining amount, if any, of such net proceeds shall be allocated to the Term Loans in accordance with the terms hereof) to the prepayment of the Term Loans and to the repurchase or prepayment of Other Applicable Indebtedness, and the amount of prepayment of the Term Loans that would have otherwise been required pursuant to this Section 2.3(b)(ii) shall be reduced accordingly; provided, further, that to the extent the holders of Other Applicable Indebtedness decline to have such Other Applicable Indebtedness repurchased or prepaid, the declined amount shall promptly (and in any event within ten (10) Business Days after the date of such rejection) be applied to prepay the Term Loans in accordance with the terms hereof.

(iii) If a Borrower or any Restricted Subsidiary incurs or issues any Indebtedness after the Escrow Release Date (x) that is intended to be Credit Agreement Refinancing Indebtedness, (y) that is not otherwise permitted to be incurred pursuant to Section 10.3 or (z) notwithstanding clause (y), that is Indebtedness permitted by Section 10.3(v) (other than (A) Indebtedness the proceeds of which are applied to repay Indebtedness previously incurred under Section 10.3(v), (B) Indebtedness incurred under a Qualified Real Estate Financing Facility to finance the acquisition of Material Real Property after the Escrow Release Date so long as such Indebtedness is incurred within 180 days of the acquisition of such Material Real Property and (C) Indebtedness the proceeds of which are used by a Real Estate Subsidiary to pay the purchase price to the Borrower or a Restricted Subsidiary for any Real Property to the extent such proceeds constituted Net Proceeds of a Disposition subject to clause (b) (ii) above), the Parent Borrower shall cause to be prepaid an aggregate principal amount of Loans in an amount equal to 100% of all Net Proceeds received therefrom on or prior to the date which is five (5) Business Days after the receipt by such Borrower or such Restricted Subsidiary of such Net Proceeds.

(iv) Except with respect to Loans incurred in connection with any Refinancing Amendment, Term Loan Extension Request or any Incremental Amendment (to the extent set forth in such

 

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Refinancing Amendment, Term Loan Extension Request or Incremental Amendment as contemplated below), (A) each prepayment of Term Loans pursuant to this Section 2.3(b) shall be applied to the next eight succeeding scheduled principal installments to each Class of Term Loans and then ratably to the remaining installments of each Class of Term Loans then outstanding (provided that (i) any prepayment of Term Loans with the Net Proceeds of Credit Agreement Refinancing Indebtedness shall be applied solely to each applicable Class of Refinanced Debt and (ii) any Class of Incremental Term Loans, Extended Term Loans or Other Term Loans may specify that one or more other Classes of Loans may be prepaid prior to such Class of Incremental Term Loans, Extended Term Loans or Other Term Loans and (B) each such prepayment shall be paid to the applicable Lenders in accordance with their respective Pro Rata Shares of such prepayment.

(c) (i) Notwithstanding anything to the contrary in Section 2.3(a), 2.6(a) or 2.7 (which provisions shall not be applicable to Section 2.3(c)), any Purchasing Borrower Party shall have the right at any time and from time to time to prepay Loans to the Lenders at a discount to the par value of such Loans and on a non pro rata basis (each, a “Discounted Voluntary Prepayment”) pursuant to the procedures described in Section 2.3(c); provided that (A) any Discounted Voluntary Prepayment shall be offered to all Lenders with Loans of a specified Class on a pro rata basis, (B) such Purchasing Borrower Party shall deliver to the Agent a certificate stating that (1) no Default or Event of Default has occurred and is continuing or would result from the Discounted Voluntary Prepayment (after giving effect to any related waivers or amendments obtained in connection with such Discounted Voluntary Prepayment), (2) each of the conditions to such Discounted Voluntary Prepayment contained in Section 2.3(c) has been satisfied, (3) such Purchasing Borrower Party does not have any material non-public information (“MNPI”) with respect to Holdings or any of its Subsidiaries that (a) has not been disclosed to the Lenders (other than Lenders that do not wish to receive MNPI with respect to Holdings, any of its Subsidiaries or Affiliates) prior to such time and (b) could reasonably be expected to have a material effect upon, or otherwise be material, (i) to a Lender’s decision to participate in any Discounted Voluntary Prepayment or (ii) to the market price of the Loans.

(ii) To the extent a Purchasing Borrower Party seeks to make a Discounted Voluntary Prepayment, such Purchasing Borrower Party will provide written notice to the Agent substantially in the form of Exhibit I hereto (each, a “Discounted Prepayment Option Notice”) that such Purchasing Borrower Party desires to prepay Loans of a specified Class in an aggregate principal amount specified therein by the Purchasing Borrower Party (each, a “Proposed Discounted Prepayment Amount”), in each case at a discount to the par value of such Loans as specified below. The Proposed Discounted Prepayment Amount of Loans shall not be less than $10,000,000. The Discounted Prepayment Option Notice shall further specify with respect to the proposed Discounted Voluntary Prepayment: (A) the Proposed Discounted Prepayment Amount of Loans, (B) a discount range (which may be a single percentage) selected by the Purchasing Borrower Party with respect to such proposed Discounted Voluntary Prepayment (representing the percentage of par of the principal amount of Loans to be prepaid) (the “Discount Range”), and (C) the date by which Lenders are required to indicate their election to participate in such proposed Discounted Voluntary Prepayment which shall be at least five Business Days following the date of the Discounted Prepayment Option Notice (the “Acceptance Date”).

(iii) Upon receipt of a Discounted Prepayment Option Notice in accordance with Section 2.3(c)(ii), the Agent shall promptly notify each Lender of the applicable Class thereof. On or prior to the Acceptance Date, each Lender may specify by written notice substantially in the form of Exhibit J hereto (each, a “Lender Participation Notice”) to the Agent (A) a minimum price (the “Acceptable Price”) within the Discount Range (for example, 80% of the par value of the Loans to be prepaid) and (B) a maximum principal amount (subject to rounding requirements specified by the Agent) of Loans with respect to which such Lender is willing to permit a Discounted Voluntary Prepayment at the Acceptable

 

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Price (“Offered Loans”). Based on the Acceptable Prices and principal amounts of Loans of the applicable Class specified by the Lenders in the applicable Lender Participation Notice, the Agent, in consultation with the Purchasing Borrower Party, shall determine the applicable discount for Loans (the “Applicable Discount”), which Applicable Discount shall be (A) the percentage specified by the Purchasing Borrower Party if the Purchasing Borrower Party has selected a single percentage pursuant to Section 2.3(c)(ii) for the Discounted Voluntary Prepayment or (B) otherwise, the lowest Acceptable Price at which the Purchasing Borrower Party can pay the Proposed Discounted Prepayment Amount in full (determined by adding the principal amounts of Offered Loans commencing with the Offered Loans with the lowest Acceptable Price); provided, however, that in the event that such Proposed Discounted Prepayment Amount cannot be repaid in full at any Acceptable Price, the Applicable Discount shall be the highest Acceptable Price specified by the Lenders that is within the Discount Range. The Applicable Discount shall be applicable for all Lenders who have offered to participate in the Discounted Voluntary Prepayment and have Qualifying Loans (as defined below). Any Lender with outstanding Loans of the applicable Class whose Lender Participation Notice is not received by the Agent by the Acceptance Date shall be deemed to have declined to accept a Discounted Voluntary Prepayment of any of its Loans at any discount to their par value within the Applicable Discount.

(iv) The Purchasing Borrower Party shall make a Discounted Voluntary Prepayment by prepaying those Loans of the applicable Class (or the respective portions thereof) offered by the Lenders (“Qualifying Lenders”) that specify an Acceptable Price that is equal to or lower than the Applicable Discount (“Qualifying Loans”) at the Applicable Discount; provided that if the aggregate proceeds required to prepay all Qualifying Loans (disregarding any interest payable at such time) would exceed the amount of aggregate proceeds required to prepay the Proposed Discounted Prepayment Amount, such amounts in each case calculated by applying the Applicable Discount, the Purchasing Borrower Party shall prepay such Qualifying Loans ratably among the Qualifying Lenders based on their respective principal amounts of such Qualifying Loans (subject to rounding requirements specified by the Agent). If the aggregate proceeds required to prepay all Qualifying Loans (disregarding any interest payable at such time) would be less than the amount of aggregate proceeds required to prepay the Proposed Discounted Prepayment Amount, such amounts in each case calculated by applying the Applicable Discount, the Purchasing Borrower Party shall prepay all Qualifying Loans.

(v) Each Discounted Voluntary Prepayment shall be made within five Business Days after the Acceptance Date (or such other date as the Agent shall reasonably agree, given the time required to calculate the Applicable Discount and determine the amount and holders of Qualifying Loans), without premium or penalty (but subject to Section 3.3), upon irrevocable notice substantially in the form of Exhibit K hereto (each a “Discounted Voluntary Prepayment Notice”), delivered to the Agent no later than 11:00 a.m. (New York City time), two Business Days prior to the date of such Discounted Voluntary Prepayment, which notice shall specify the date and amount of the Discounted Voluntary Prepayment and the Applicable Discount determined by the Agent. Upon receipt of any Discounted Voluntary Prepayment Notice the Agent shall promptly notify each relevant Lender thereof. If any Discounted Voluntary Prepayment Notice is given, the amount specified in such notice shall be due and payable to the applicable Lenders, subject to the Applicable Discount on the applicable Loans, on the date specified therein together with accrued interest (on the par principal amount) to but not including such date on the amount prepaid.

(vi) To the extent not expressly provided for herein, each Discounted Voluntary Prepayment shall be consummated pursuant to reasonable procedures (including as to timing, rounding and calculation of Applicable Discount in accordance with Section 2.3(c)(iii) above) established by the Agent in consultation with the Parent Borrower.

 

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(vii) Prior to the delivery of a Discounted Voluntary Prepayment Notice, upon written notice to the Agent, the Purchasing Borrower Party may withdraw its offer to make a Discounted Voluntary Prepayment pursuant to any Discounted Prepayment Option Notice.

(d) Prepayment Premium.

(i) At the time of the effectiveness of any Repricing Transaction that is consummated prior to the date that is one year and 31 days following the Start Dates (as defined in Amendment No. 5), the Borrowers agree to pay to the Agent, for the ratable account of each Lender with outstanding Term B-2 Loans, Term B-3 Loans and/or Term B-4 Loans, as applicable, which are repaid or prepaid pursuant to such Repricing Transaction (including each Lender that withholds its consent to such Repricing Transaction and is replaced as a Non-Consenting Lender under Section 12.3(c)), a fee in an amount equal to 1.0% of (x) in the case of a Repricing Transaction of the type described in clause (1) of the definition thereof, the aggregate principal amount of all Term B Loans prepaid (or converted) in connection with such Repricing Transaction and (y) in the case of a Repricing Transaction described in clause (2) of the definition thereof, the aggregate principal amount of all Term B Loans outstanding on such date that are subject to an effective reduction of the Applicable Margin applicable to the Term B Loans pursuant to such Repricing Transaction. Such fees shall be due and payable upon the date of the effectiveness of such Repricing Transaction.

(ii) If, on or prior to the date that is six months after the Amendment No. 1 (B-5) Effective Date, the Borrowers effect an amendment of the Term Loan Agreement that results in a Term B-5 Repricing Event, the Borrowers shall pay to the Agent, for the ratable account of each Term B-5 Lender with outstanding Term B-5 Loans that are repaid, prepaid or amended pursuant to such Term B-5 Repricing Event, a fee equal to 1.0% of the aggregate principal amount of the affected Term B-5 Loans of such Term B-5 Lender outstanding immediately prior to the date of effectiveness of such Term B-5 Repricing Event.

(iii) If, on or prior to the date that is six months after the Amendment No. 4 (B-6) Effective Date, the Borrowers effect an amendment of this Agreement that results in a 2016-1 Term B-4 Repricing Event, the Borrowers shall pay to the Agent, for the ratable account of each 2016-1 Term B-4 Lender with outstanding 2016-1 Term B-4 Loans that are repaid, prepaid or amended pursuant to such 2016-1 Term B-4 Repricing Event, a fee equal to 1.0% of the aggregate principal amount of the affected 2016-1 Term B-4 Loans of such 2016-1 Term B-4 Lender outstanding immediately prior to the date of effectiveness of such 2016-1 Term B-4 Repricing Event.

(iv) If, on or prior to the date that is six months after the Amendment No. 4 (B-6) Effective Date, the Borrowers effect an amendment of this Agreement that results in a 2016-1 Term B-5 Repricing Event, the Borrowers shall pay to the Agent, for the ratable account of each 2016-1 Term B-5 Lender with outstanding 2016-1 Term B-5 Loans that are repaid, prepaid or amended pursuant to such 2016-1 Term B-5 Repricing Event, a fee equal to 1.0% of the aggregate principal amount of the affected 2016-1 Term B-5 Loans of such 2016-1 Term B-5 Lender outstanding immediately prior to the date of effectiveness of such 2016-1 Term B-5 Repricing Event.

(v) If, on or prior to the date that is six months after the Amendment No. 4 (B-6) Effective Date, the Borrowers effect an amendment of this Agreement that results in a Term B-6 Repricing Event, the Borrowers shall pay to the Agent, for the ratable account of each Term B-6 Lender with outstanding Term B-6 Loans that are repaid, prepaid or amended pursuant to such

 

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Term B-6 Repricing Event, a fee equal to 1.0% of the aggregate principal amount of the affected Term B-6 Loans of such Term B-6 Lender outstanding immediately prior to the date of effectiveness of such Term B-6 Repricing Event.

(vi) If, on or prior to June 23, 2017, the Borrowers effect an amendment of this Agreement that results in a 2016-2 Term B-4 Repricing Event, the Borrowers shall pay to the Agent, for the ratable account of each 2016-2 Term B-4 Lender with outstanding 2016-2 Term B-4 Loans that are repaid, prepaid or amended pursuant to such 2016-2 Term B-4 Repricing Event, a fee equal to 1.0% of the aggregate principal amount of the affected 2016-2 Term B-4 Loans of such 2016-2 Term B-4 Lender outstanding immediately prior to the date of effectiveness of such 2016-2 Term B-4 Repricing Event.

(vii) If, on or prior to June 23, 2017, the Borrowers effect an amendment of this Agreement that results in a 2016-2 Term B-5 Repricing Event, the Borrowers shall pay to the Agent, for the ratable account of each 2016-2 Term B-5 Lender with outstanding 2016-2 Term B-5 Loans that are repaid, prepaid or amended pursuant to such 2016-2 Term B-5 Repricing Event, a fee equal to 1.0% of the aggregate principal amount of the affected 2016-2 Term B-5 Loans of such 2016-2 Term B-5 Lender outstanding immediately prior to the date of effectiveness of such 2016-2 Term B-5 Repricing Event.

(viii) If, on or prior to June 23, 2017, the Borrowers effect an amendment of this Agreement that results in a 2016-1 Term B-6 Repricing Event, the Borrowers shall pay to the Agent, for the ratable account of each 2016-1 Term B-6 Lender with outstanding 2016-1 Term B-6 Loans that are repaid, prepaid or amended pursuant to such 2016-1 Term B-6 Repricing Event, a fee equal to 1.0% of the aggregate principal amount of the affected 2016-1 Term B-6 Loans of such 2016-1 Term B-6 Lender outstanding immediately prior to the date of effectiveness of such 2016-1 Term B-6 Repricing Event.

(ix) If, on or prior to December 26, 2017, the Borrowers effect an amendment of this Agreement that results in a 2017-1 Term B-4 Repricing Event, the Borrowers shall pay to the Agent, for the ratable account of each 2017-1 Term B-4 Lender with outstanding 2017-1 Term B-4 Loans that are repaid, prepaid or amended pursuant to such 2017-1 Term B-4 Repricing Event, a fee equal to 1.00% of the aggregate principal amount of the affected 2017-1 Term B-4 Loans of such 2017-1 Term B-4 Lender outstanding immediately prior to the date of effectiveness of such 2017-1 Term B-4 Repricing Event.

(x) If, on or prior to December 26, 2017, the Borrowers effect an amendment of this Agreement that results in a 2017-1 Term B-5 Repricing Event, the Borrowers shall pay to the Agent, for the ratable account of each 2017-1 Term B-5 Lender with outstanding 2017-1 Term B-5 Loans that are repaid, prepaid or amended pursuant to such 2017-1 Term B-5 Repricing Event, a fee equal to 1.00% of the aggregate principal amount of the affected 2017-1 Term B-5 Loans of such 2017-1 Term B-5 Lender outstanding immediately prior to the date of effectiveness of such 2017-1 Term B-5 Repricing Event.

(xi) If, on or prior to December 26, 2017, the Borrowers effect an amendment of this Agreement that results in a 2017-1 Term B-6 Repricing Event, the Borrowers shall pay to the Agent, for the ratable account of each 2017-1 Term B-6 Lender with outstanding 2017-1 Term B-6 Loans that are repaid, prepaid or amended pursuant to such 2017-1 Term B-6 Repricing Event, a fee equal to 1.00% of the aggregate principal amount of the affected 2017-1 Term B-6 Loans of such 2017-1 Term B-6 Lender outstanding immediately prior to the date of effectiveness of such 2017-1 Term B-6 Repricing Event.

 

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(xii) If, on or prior to the date that is six months after the Amendment No. 7 (2018) Effective Date, the Borrowers effect an amendment of this Agreement that results in a 2018 Term B-7 Repricing Event, the Borrowers shall pay to the Agent, for the ratable account of each 2018 Term B-7 Lender with outstanding 2018 Term B-7 Loans that are repaid, prepaid or amended pursuant to such 2018 Term B-7 Repricing Event, a fee equal to 1.00% of the aggregate principal amount of the affected 2018 Term B-7 Loans of such 2018 Term B-7 Lender outstanding immediately prior to the date of effectiveness of such 2018 Term B-7 Repricing Event.

(e) Funding Losses, Etc. All prepayments under Section 2.3 shall be made together with, in the case of any such prepayment of a Eurodollar Rate Loan on a date other than the last day of an Interest Period therefor, any amounts owing in respect of such Eurodollar Rate Loan pursuant to Section 3.3. Notwithstanding any of the other provisions of Section 2.3(b), so long as no Event of Default shall have occurred and be continuing, if any prepayment of Eurodollar Rate Loans is required to be made under Section 2.3(b) prior to the last day of the Interest Period therefor, the Parent Borrower may, in its sole discretion, deposit the amount of any such prepayment otherwise required to be made thereunder into a cash collateral account until the last day of such Interest Period, at which time the Agent shall be authorized (without any further action by or notice to or from the Parent Borrower or any other Loan Party) to apply such amount to the prepayment of such Loans in accordance with Section 2.3(b). Upon the occurrence and during the continuance of any Event of Default, the Agent shall also be authorized (without any further action by or notice to or from the Parent Borrower or any other Loan Party) to apply such amount to the prepayment of the outstanding Loans in accordance with Section 2.3(b).

 

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2.4 Termination or Reduction of Commitments. (i) The Term B-3 Commitment of each Term B-3 Lender was reduced to $0 upon the funding of Term B-3 Loans made by it pursuant to Amendment No. 5, (ii) the Term B-4 Commitment of each Term B-4 Lender was reduced to $0 upon the funding of Term B-4 Loans made by it pursuant to Amendment No. 5, (iii) the Term B-5 Commitment of each Term B-5 Lender was reduced to $0 upon the funding of Term B-5 Loans made by it pursuant to Section 2.1(a), (iv) the 2016-1 Term B-4 Commitment of each 2016-1 Term B-4 Lender was reduced to $0 upon the making of 2016-1 Term B-4 Loans made by it pursuant to Section 2.1(b), (v) the 2016-1 Term B-5 Commitment of each 2016-1 Term B-5 Lender was reduced to $0 upon the making of 2016-1 Term B-5 Loans made by it pursuant to Section 2.1(c), (vi) the Term B-6 Commitment of each Term B-6 Lender was automatically and permanently reduced to $0 upon the making of Term B-6 Loans pursuant to Section 2.1(d), (vii) the 2016-2 Term B-4 Commitment of each 2016-2 Term B-4 Lender was reduced to $0 upon the making of 2016-2 Term B-4 Loans made by it pursuant to Section 2.1(e), (viii) the 2016-2 Term B-5 Commitment of each 2016-2 Term B-5 Lender was be reduced to $0 upon the making of 2016-2 Term B-5 Loans made by it pursuant to Section 2.01(f), (ix) the 2016-1 Term B-6 Commitment of each 2016-1 Term B-6 Lender was automatically and permanently reduced to $0 upon the making of 2016-1 Term B-6 Loans pursuant to Section 2.1(g), (x) the 2017-1 Term B-4 Commitment of each 2017-1 Term B-4 Lender shall bewas reduced to $0 upon the making of 2017-1 Term B-4 Loans made by it pursuant to Section 2.1(h), (xi) the 2017-1 Term B-5 Commitment of each 2017-1 Term B-5 Lender shall bewas reduced to $0 upon the making of 2017-1 Term B-5 Loans made by it pursuant to Section 2.1(i) and, (xi) the 2017-1 Term B-6 Commitment of each 2017-1 Term B-6 Lender shall bewas automatically and permanently reduced to $0 upon the making of 2017-1 Term B-6 Loans pursuant to Section 2.1(j) and (xii) the 2018 Term B-7 Commitment of each 2018 Term B-7 Lender shall be automatically and permanently reduced to $0 upon the making of 2018 Term B-7 Loans pursuant to Section 2.1(k).

2.5 Evidence of Indebtedness.

(a) The Loans made by each Lender shall be evidenced by one or more entries in the Register maintained by the Agent, acting solely for purposes of Treasury Regulation Section 5f.103-1(c), as non-fiduciary agent for the Borrowers. The accounts or records maintained by the Agent shall be conclusive evidence absent manifest error of the amount of the Loans made by the Lenders to the Borrowers and the interest and payments thereon. Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrowers hereunder to pay any amount owing with respect to the Obligations. In the event of any conflict between the accounts and records maintained by any Lender pursuant to Section 2.5(b) and the accounts and records of the Agent in respect of such matters, the accounts and records of the Agent shall control in the absence of manifest error. Upon the request of any Lender made through the Agent, the applicable Borrower shall execute and deliver to such Lender (through the Agent) a Term Note payable to such Lender, which shall evidence such Lender’s Loans in addition to such accounts or records. Each Lender may attach schedules to its Term Note and endorse thereon the date, Class, Type (if applicable), amount and maturity of its Loans and payments with respect thereto.

(b) Entries made in good faith by the Agent in the Register pursuant to Section 2.5(a), and by each Lender in its account or accounts pursuant to this Section 2.5(b), shall be prima facie evidence of the amount of principal and interest due and payable or to become due and payable from the Borrowers to, in the case of the Register, each Lender and, in the case of such account or accounts, such Lender, under this Agreement and the other Financing Agreements, absent manifest error; provided that the failure of the Agent or such Lender to make an entry, or any finding that an entry is incorrect, in the Register or such account or accounts shall not limit or otherwise affect the obligations of the Borrowers under this Agreement and the other Financing Agreements.

 

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2.6 Payments Generally.

(a) All payments to be made by the Borrowers shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein, all payments by the Borrowers hereunder shall be made to the Agent, for the account of the respective Lenders to which such payment is owed, at the applicable Agent’s Office in Dollars and in Same Day Funds not later than 2:00 p.m. on the date specified herein. The Agent will promptly distribute to each Appropriate Lender its Pro Rata Share (or other applicable share provided for under this Agreement) of such payment in like funds as received by wire transfer to such Lender’s applicable Lending Office. All payments received by the Agent after 2:00 p.m., shall in each case, at the option of the Agent, be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue.

(b) If any payment to be made by a Borrower shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest or fees, as the case may be; provided that, if such extension would cause payment of interest on or principal of Eurodollar Rate Loans to be made in the next succeeding calendar month, such payment shall be made on the immediately preceding Business Day.

(c) Unless the Parent Borrower or any Lender has notified the Agent, prior to the date any payment is required to be made by it to the Agent hereunder, that the applicable Borrower or such Lender, as the case may be, will not make such payment, the Agent may assume that the applicable Borrower or such Lender, as the case may be, has timely made such payment and may (but shall not be so required to), in reliance thereon, make available a corresponding amount to the Person entitled thereto. If and to the extent that such payment was not in fact made to the Agent in Same Day Funds, then:

(i) if the Parent Borrower or applicable Co-Borrower failed to make such payment, each Lender shall forthwith on demand repay to the Agent the portion of such assumed payment that was made available to such Lender in Same Day Funds, together with interest thereon in respect of each day from and including the date such amount was made available by the Agent to such Lender to the date such amount is repaid to the Agent in Same Day Funds at the applicable Overnight Rate from time to time in effect; and

(ii) if any Lender failed to make such payment, such Lender shall forthwith on demand pay to the Agent the amount thereof in Same Day Funds, together with interest thereon for the period from the date such amount was made available by the Agent to the applicable Borrower to the date such amount is recovered by the Agent (the “Compensation Period”) at a rate per annum equal to the applicable Overnight Rate from time to time in effect. When such Lender makes payment to the Agent (together with all accrued interest thereon), then such payment amount (excluding the amount of any interest which may have accrued and been paid in respect of such late payment) shall constitute such Lender’s Loan included in the applicable Borrowing. If such Lender does not pay such amount within one Business Day upon the Agent’s demand therefor, the Agent may make a demand therefor upon the applicable Borrower, and the applicable Borrower shall pay such amount to the Agent, together with interest thereon for the Compensation Period at a rate per annum equal to the rate of interest applicable to the applicable Borrowing. Nothing herein shall be deemed to relieve any Lender from its obligation to fulfill its Commitment or to prejudice any rights which the Agent or the Borrowers may have against any Lender as a result of any default by such Lender hereunder.

A notice of the Agent to any Lender or the applicable Borrower with respect to any amount owing under this Section 2.6(c) shall be conclusive, absent manifest error.

 

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(d) If any Lender makes available to the Agent funds for any Loan to be made by such Lender as provided in the foregoing provisions of this Section 2, and such funds are not made available to the applicable Borrower by the Agent because the conditions to the applicable Loan set forth in Section 4 are not satisfied or waived in accordance with the terms hereof, the Agent shall return such funds (in like funds as received from such Lender) to such Lender, without interest.

(e) Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan in any particular place or manner.

(f) Whenever any payment received by the Agent under this Agreement or any of the other Financing Agreements is insufficient to pay in full all amounts due and payable to the Agent and the Lenders under or in respect of this Agreement and the other Financing Agreements on any date, such payment shall be distributed by the Agent and applied by the Agent and the Lenders in the order of priority set forth in Section 11.3. If the Agent receives funds for application to the Obligations of the Loan Parties under or in respect of the Financing Agreements under circumstances for which the Financing Agreements do not specify the manner in which such funds are to be applied, the Agent may (to the fullest extent permitted by mandatory provisions of applicable Law), but shall not be obligated to, elect to distribute such funds to each of the Lenders in accordance with such Lender’s Pro Rata Share of the Outstanding Amount of all Loans outstanding at such time in repayment or prepayment of such of the outstanding Loans or other Obligations then owing to such Lender.

 

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2.7 Sharing of Payments. If, other than as expressly provided elsewhere herein, any Lender shall obtain payment in respect of any principal or interest on account of the Loans made by it any payment (whether voluntary, involuntary, through the exercise of any right of setoff, or otherwise) in excess of its ratable share (or other share contemplated hereunder) thereof, such Lender shall immediately (a) notify the Agent of such fact, and (b) purchase from the other Lenders such participations in the Loans made by them as shall be necessary to cause such purchasing Lender to share the excess payment in respect of any principal or interest on such Loans or such participations, as the case may be, pro rata with each of them; provided that if all or any portion of such excess payment is thereafter recovered from the purchasing Lender under any of the circumstances described in Section 14.11 (including pursuant to any settlement entered into by the purchasing Lender in its discretion), such purchase shall to that extent be rescinded and each other Lender shall repay to the purchasing Lender the purchase price paid therefor, together with an amount equal to such paying Lender’s ratable share (according to the proportion of (i) the amount of such paying Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered, without further interest thereon. For avoidance of doubt, the provisions of this paragraph shall not be construed to apply to (A) any payment made by the Parent Borrower pursuant to and in accordance with the express terms of this Agreement as in effect from time to time or (B) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant permitted hereunder. The Parent Borrower agrees that any Lender so purchasing a participation from another Lender may, to the fullest extent permitted by applicable Law, exercise all its rights of payment (including the right of setoff, but subject to Section 14.14) with respect to such participation as fully as if such Lender were the direct creditor of the Parent Borrower in the amount of such participation. The Agent will keep records (which shall be conclusive and binding in the absence of manifest error) of participations purchased under this Section 2.7 and will in each case notify the Lenders following any such purchases or repayments. Each Lender that purchases a participation pursuant to this Section 2.7 shall from and after such purchase have the right to give all notices, requests, demands, directions and other communications under this Agreement with respect to the portion of the Obligations purchased to the same extent as though the purchasing Lender were the original owner of the Obligations purchased.

2.8 Incremental Credit Extensions.

(a) One or more Borrowers (which shall include all existing Borrowers with respect to an existing Class of Term B Loans for which Incremental Term Commitments are requested) may, by written notice to the Agent (whereupon the Agent shall promptly deliver a copy to each of the Lenders) from time to time after the Escrow Release Date, request Incremental Term Loan Commitments, as applicable, in an aggregate amount not to exceed the Incremental Amount from one or more Incremental Term Lenders (which, in each case, may include any existing Lender) willing to provide such Incremental Term Loans, as the case may be, in their own discretion. Such notice shall set forth (i) the amount of the Incremental Term Loan Commitments being requested (which shall be in minimum increments of $1,000,000 and a minimum amount of $25,000,000 or equal to the remaining Incremental Amount), (ii) the date on which such Incremental Term Loan Commitments are requested to become effective (the “Increased Amount Date”), and (iii) whether such Incremental Term Loan Commitments are to be Term Commitments or commitments to make term loans with interests rates and/or amortization and/or maturity and/or other terms different from the Term B Loans (“Incremental Term Loans”). The proceeds of any Incremental Term Loans shall not be used to make Restricted Payments or prepayments of Subordinated Indebtedness pursuant to Section 10.6, Section 10.11 or otherwise.

(b) The applicable Borrowers and each Incremental Term Lender shall execute and deliver to the Agent an Incremental Amendment and such other documentation as the Agent shall reasonably specify to evidence the Incremental Term Loan Commitment of such Incremental Term Lender. Each

 

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Incremental Amendment shall specify the terms of the applicable Incremental Term Loans; provided that (i) except as to pricing, amortization and final maturity date (which shall, subject to clause (ii) and (iii) of this proviso, be determined by the applicable Borrowers and the Incremental Term Lenders in their sole discretion), the Incremental Term Loans shall have no more restrictive terms, when taken as a whole, than the Term Loans except (x) if the Term Lenders holding the Term Loans also receive the benefit of such restrictive terms, (y) such terms are not effective until the Latest Maturity Date of the then existing Term Loans or (z) such other terms as shall be reasonably satisfactory to the Agent, (ii) the final maturity date of any Incremental Term Loans shall be no earlier than the Latest Maturity Date at the time such Incremental Term Loans are established, and, (iii) the Weighted Average Life to Maturity of any Incremental Term Loans shall be no shorter than the remaining Weighted Average Life to Maturity of the Term B Loans; provided further that, with respect to any Incremental Term Loans, if the Effective Yield in respect of any such Incremental Term Loan exceeds the Applicable Margin of any Term B Loans by more than 25 basis points, such Applicable Margin shall be increased so that the Effective Yield in respect of such Incremental Term Loan is no more than 25 basis points higher than the Effective Yield for such Term B Loans and if the lowest permissible Eurodollar Rate is greater than 1.00% or the lowest permissible Base Rate is greater than 2.00% for such Incremental Term Loan, the difference between such “floor” and 1.00% in the case of Eurodollar Rate Incremental Term Loans (or 2.00% in the case of Base Rate Incremental Term Loans, shall be equated to interest rate margin for purposes of this proviso. The Incremental Term Loans shall have the same guarantees as and rank pari passu in right of payment and security with the Term B Loans.

(c) Notwithstanding the foregoing, but subject to the last paragraph of Section 4.2 and Section 14.13(e), no Incremental Term Loan Commitment shall become effective under this Section 2.8 unless (i) both at the time of any such request and upon the effectiveness of any Incremental Amendment, no Event of Default shall exist and at the time that any such Incremental Term Loan is made (and after giving effect thereto) no Event of Default shall be continuing; (ii) after giving effect to such Incremental Term Loan Commitments, the conditions of Section 4.2(a) shall be satisfied (it being understood that all references to “the date of the making of such Loan” or similar language in such Section 4.2(a) shall be deemed to refer to the effective date of such Incremental Amendment) (except, to the extent the proceeds of the Incremental Term Loans are to be used to finance an Acquisition, such representations shall be limited to the Specified Representations and Specified Acquisition Agreement Representations) and (iii) the Agent shall have received customary legal opinions, board resolutions and officers’ certificates consistent with those delivered on the Original Closing Date other than changes to such legal opinion resulting from a change in law, change in fact or change to counsel’s form of opinion reasonably satisfactory to the Agent. The Agent shall promptly notify each Lender as to the effectiveness of each Incremental Amendment. Each of the parties hereto hereby agrees that, upon the effectiveness of any Incremental Amendment, this Agreement shall be amended to the extent (but only to the extent) necessary to reflect the existence and terms of the Incremental Term Loan Commitments evidenced thereby. Any such deemed amendment may be memorialized in writing by the Agent with the applicable Borrower’s consent (not to be unreasonably withheld) and furnished to the other parties hereto.

(d) The Incremental Amendment may, without the consent of Parent Borrower, or any other Loan Party, Agent or Lenders, effect such amendments to this Agreement and the other Financing Agreements as may be necessary or appropriate, in the reasonable opinion of the Agent and the Parent Borrower, to effect the provisions of this Section 2.8. The applicable Borrowers will use the proceeds of the Incremental Term Loans for any purpose not prohibited by this Agreement. Incremental Term Loans may be made by any existing Lender (but each existing Lender will not have an obligation to make a portion of any Incremental Term Loan) or by any other bank or other financial institution; provided that any such bank or financial institution shall be reasonably satisfactory to the Agent and the Parent Borrower. No Lender shall be obligated to provide any Incremental Term Loans unless it so agrees.

 

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This Section 2.8 shall supersede any provisions in Section 2.7 or 12.3 to the contrary.

2.9 Refinancing Amendments.

(a) On one or more occasions after the Escrow Release Date, the Borrowers may obtain, from any Lender or any Additional Refinancing Lender, Credit Agreement Refinancing Indebtedness in respect of all or any portion of the Term Loans then outstanding under this Agreement (which for purposes of this clause (a) will be deemed to include any then outstanding Other Term Loans or Incremental Term Loans) in the form of Other Term Loans or Other Term Loan Commitments pursuant to a Refinancing Amendment.

(b) The effectiveness of any Refinancing Amendment shall be subject to the satisfaction on the date thereof of each of the conditions set forth in Section 4.2 and, to the extent reasonably requested by the Agent, receipt by the Agent of (i) customary legal opinions, board resolutions and officers’ certificates consistent with those delivered on the Original Closing Date other than changes to such legal opinion resulting from a change in law, change in fact or change to counsel’s form of opinion reasonably satisfactory to the Agent and (ii) reaffirmation agreements and/or such amendments to the Collateral Documents as may be reasonably requested by the Agent in order to ensure that such Credit Agreement Refinancing Indebtedness is provided with the benefit of the applicable Financing Agreements.

(c) Each issuance of Credit Agreement Refinancing Indebtedness under Section 2.9(a) shall be in an aggregate principal amount that is (x) not less than $25,000,000 and (y) an integral multiple of $1,000,000 in excess thereof.

(d) Each of the parties hereto hereby agrees that this Agreement and the other Financing Agreements may be amended pursuant to a Refinancing Amendment, without the consent of any other Lenders, to the extent (but only to the extent) necessary to (i) reflect the existence and terms of the Credit Agreement Refinancing Indebtedness incurred pursuant thereto, (ii) make such other changes to this Agreement and the other Financing Agreements consistent with the provisions and intent of Section 12.3(g) (without the consent of the Required Lenders called for therein) and (iii) effect such other amendments to this Agreement and the other Financing Agreements as may be necessary or appropriate, in the reasonable opinion of the Agent and the Parent Borrower, to effect the provisions of this Section 2.9, and the Required Lenders hereby expressly authorize the Agent to enter into any such Refinancing Amendment.

(e) Notwithstanding anything to the contrary in this Agreement, the 2016-1 Term B-4 Loans, 2016-2 Term B-4 Loans, the 2017-1 Term B-4 Loans, 2016-1 Term B-5 Loans, 2016-2 Term B-5 Loans, the 2017-1 Term B-5 Loans, the 2016-1 Term B-6 Loans and, the 2017-1 Term B-6 Loans and the 2018 Term B-7 Loans shall be permitted under this Agreement.

2.10 Extension of Term Loans.

(a) Extension of Term Loans. The applicable Borrowers may at any time and from time to time request that all or a portion of the Term Loans of a given Class (each, an “Existing Term Loan Tranche”) be amended to extend the scheduled maturity date(s) with respect to all or a portion of any principal amount of such Term Loans (any such Term Loans which have been so amended, “Extended Term Loans”) and to provide for other terms consistent with this Section 2.10. In order to establish any Extended Term Loans, the Parent Borrower shall provide a notice to the Agent (who shall provide a copy of such notice to each of the Lenders under the applicable Existing Term Loan Tranche) (each, a “Term Loan Extension Request”) setting forth the proposed terms of the Extended Term Loans to be established, which shall (x) be identical as offered to each Lender under such Existing Term Loan

 

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Tranche (including as to the proposed interest rates and fees payable) and offered pro rata to each Lender under such Existing Term Loan Tranche and (y) be identical to the Term Loans under the Existing Term Loan Tranche from which such Extended Term Loans are to be amended, except that: (i) all or any of the scheduled amortization payments of principal of the Extended Term Loans may be delayed to later dates than the scheduled amortization payments of principal of the Term Loans of such Existing Term Loan Tranche, to the extent provided in the applicable Extension Amendment; (ii) the Effective Yield with respect to the Extended Term Loans (whether in the form of interest rate margin, upfront fees, original issue discount or otherwise) may be different than the Effective Yield for the Term Loans of such Existing Term Loan Tranche, in each case, to the extent provided in the applicable Extension Amendment; (iii) the Extension Amendment may provide for other covenants and terms that apply solely to any period after the Latest Maturity Date that is in effect on the effective date of the Extension Amendment (immediately prior to the establishment of such Extended Term Loans); and (iv) Extended Term Loans may have call protection as may be agreed by the Parent Borrower and the Lenders thereof; provided that no Extended Term Loans may be optionally prepaid prior to the date on which all Term Loans with an earlier final stated maturity (including Term Loans under the Existing Term Loan Tranche from which they were amended) are repaid in full, unless such optional prepayment is accompanied by a pro rata optional prepayment of such other Term Loans; provided, however, that (A) no Default shall have occurred and be continuing at the time a Term Loan Extension Request is delivered to Lenders, (B) in no event shall the final maturity date of any Extended Term Loans of a given Term Loan Extension Series at the time of establishment thereof be earlier than the then Latest Maturity Date of any other Term Loans hereunder, (C) the Weighted Average Life to Maturity of any Extended Term Loans of a given Term Loan Extension Series at the time of establishment thereof shall be no shorter (other than by virtue of amortization or prepayment of such Indebtedness prior to the time of incurrence of such Extended Term Loans) than the remaining Weighted Average Life to Maturity of any Existing Term Loan Tranche, (D) any such Extended Term Loans (and the Liens securing the same) shall be permitted by the terms of the Intercreditor Agreements, (E) all documentation in respect of such Extension Amendment shall be consistent with the foregoing and (F) any Extended Term Loans may participate on a pro rata basis or less than a pro rata basis (but not greater than a pro rata basis) in any voluntary or mandatory repayments or prepayments hereunder, in each case as specified in the respective Term Loan Extension Request. Any Extended Term Loans amended pursuant to any Term Loan Extension Request shall be designated a series (each, a “Term Loan Extension Series”) of Extended Term Loans for all purposes of this Agreement; provided that any Extended Term Loans amended from an Existing Term Loan Tranche may, to the extent provided in the applicable Extension Amendment, be designated as an increase in any previously established Term Loan Extension Series with respect to such Existing Term Loan Tranche. Each Term Loan Extension Series of Extended Term Loans incurred under this Section 2.10 shall be in an aggregate principal amount that is not less than $25,000,000.

(b) Extension Request. The Parent Borrower shall provide the applicable Term Loan Extension Request at least five (5) Business Days prior to the date on which Lenders under the Existing Term Loan Tranche are requested to respond, and shall agree to such procedures, if any, as may be established by, or acceptable to, the Agent, in each case acting reasonably to accomplish the purposes of this Section 2.10. No Lender shall have any obligation to agree to have any of its Term Loans of any Existing Term Loan Tranche amended into Extended Term Loans pursuant to any Term Loan Extension Request. Any Lender holding a Loan under an Existing Term Loan Tranche (each, an “Extending Term Lender”) wishing to have all or a portion of its Term Loans under the Existing Term Loan Tranche subject to such Term Loan Extension Request amended into Extended Term Loans shall notify the Agent (each, an “Extension Election”) on or prior to the date specified in such Term Loan Extension Request of the amount of its Term Loans under the Existing Term Loan Tranche which it has elected to request be amended into Extended Term Loans (subject to any minimum denomination requirements imposed by the Agent). In the event that the aggregate principal amount of Term Loans under the Existing Term Loan Tranche in respect of which applicable Term Lenders shall have accepted the relevant Term Loan

 

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Extension Request exceeds the amount of Extended Term Loans requested to be extended pursuant to the Term Loan Extension Request, Term Loans subject to Extension Elections shall be amended to Extended Term Loans on a pro rata basis (subject to rounding by the Agent, which shall be conclusive) based on the aggregate principal amount of Term Loans included in each such Extension Election.

(c) Extension Amendment. Extended Term Loans shall be established pursuant to an amendment (each, a “Extension Amendment”) to this Agreement among Holdings, the Loan Parties, the Agent and each Extending Term Lender providing an Extended Term Loan thereunder, which shall be consistent with the provisions set forth in Section 2.10(a) above, respectively (but which shall not require the consent of any other Lender). The effectiveness of any Extension Amendment shall be subject to the satisfaction on the date thereof of each of the conditions set forth in Section 4.2 and, to the extent reasonably requested by the Agent, receipt by the Agent of (i) legal opinions, board resolutions and officers’ certificates consistent with those delivered on the Original Closing Date other than changes to such legal opinion resulting from a change in law, change in fact or change to counsel’s form of opinion reasonably satisfactory to the Agent and (ii) reaffirmation agreements and/or such amendments to the Collateral Documents as may be reasonably requested by the Agent in order to ensure that the Extended Term Loans are provided with the benefit of the applicable Financing Agreements. The Agent shall promptly notify each Lender as to the effectiveness of each Extension Amendment. Each of the parties hereto hereby agrees that this Agreement and the other Financing Agreements may be amended pursuant to an Extension Amendment, without the consent of any other Lenders, to the extent (but only to the extent) necessary to (i) reflect the existence and terms of the Extended Term Loans incurred pursuant thereto, (ii) modify the scheduled repayments set forth in Section 2.2 with respect to any Existing Term Loan Tranche subject to an Extension Election to reflect a reduction in the principal amount of the Term Loans thereunder in an amount equal to the aggregate principal amount of the Extended Term Loans amended pursuant to the applicable Extension Amendment (with such amount to be applied ratably to reduce scheduled repayments of such Term Loans required pursuant to Section 2.2), (iii) modify the prepayments set forth in Section 2.3 to reflect the existence of the Extended Term Loans and the application of prepayments with respect thereto, (iv) make such other changes to this Agreement and the other Financing Agreements consistent with the provisions and intent of Section 12.3(g) (without the consent of the Required Lenders called for therein) and (v) effect such other amendments to this Agreement and the other Financing Agreements as may be necessary or appropriate, in the reasonable opinion of the Agent and the Parent Borrower, to effect the provisions of this Section 2.10, and the Required Lenders hereby expressly authorize the Agent to enter into any such Extension Amendment.

(d) No conversion of Loans pursuant to any Extension Amendment in accordance with this Section 2.10 shall constitute a voluntary or mandatory payment or prepayment for purposes of this Agreement.

SECTION 3. INTEREST AND FEES

3.1 Interest.

(a) The Borrowers shall pay to Agent, for the benefit of Lenders, interest on the outstanding principal amount of the Loans at the Interest Rate. All interest accruing hereunder shall be payable on demand: (i) on and after the date of any Event of Default, following the Agent’s election to increase the Interest Rate pursuant to clause (b) of the definition thereof and from time to time thereafter, and (ii) on and after the date of termination hereof.

(b) Interest shall be payable by the Borrowers to Agent, for the account of Lenders, with respect to Base Rate Loans on the last Business Day of each March, June, September and December and the Latest Maturity Date of the Facility under which such Loan was made, which shall be calculated on

 

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the basis of three hundred sixty-five (365) or three hundred sixty-six (366) day year, as applicable, and actual days elapsed. Interest shall be payable by the Borrowers to Agent, for the account of Lenders, with respect to any Eurodollar Rate Loans on the last day of each applicable Interest Period with respect to such Loans, or, in the case of Interest Periods longer than three months, on the date that is three months after the commencement of such Interest Period, which shall be calculated on the basis of a three hundred sixty (360) day year and actual days elapsed. The interest rate on non-contingent Obligations (other than Eurodollar Rate Loans) shall increase or decrease by an amount equal to each increase or decrease in the Base Rate effective on the date any change in such Base Rate is effective. In no event shall charges constituting interest payable by the Borrowers to Agent and Lenders exceed the maximum amount or the rate permitted under any applicable law or regulation, and if any such part or provision of this Agreement is in contravention of any such law or regulation, such part or provision shall be deemed amended to conform thereto.

3.2 Fees. The Parent Borrower shall pay to Agent and Credit Suisse the other fees and amounts set forth in the Fee Letter in the amounts and at the times specified therein or as has otherwise been agreed by or on behalf of Parent Borrower. To the extent payment in full of the applicable fee is received by Agent from Parent Borrower on or about the Escrow Release Date, Agent shall pay to each Lender its share of such fees in accordance with the terms of the arrangements of Agent with such Lender.

3.3 Changes in Laws and Increased Costs of Loans.

(a) If after the Escrow Release Date, either (i) with respect to Eurodollar Rate Loans, any change in, or in the interpretation of, any Law is introduced, including, without limitation, with respect to reserve requirements, applicable to any Lender or any banking or financial institution from whom any Lender borrows funds or obtains credit (a “Funding Bank”), or (ii) with respect to Eurodollar Rate Loans, a Funding Bank or any Lender complies with any future guideline or request from any central bank or other Governmental Authority or (iii) a Funding Bank or any Lender determines that the adoption of any applicable law, rule or regulation regarding capital adequacy, or any change therein, or any change in the interpretation or administration thereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or administration thereof has or would have the effect described below, or a Funding Bank or any Lender complies with any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank or comparable agency, and in the case of any event set forth in this clause (iii), such adoption, change or compliance has or would have the direct or indirect effect of reducing the rate of return on any Lender’s capital as a consequence of its obligations hereunder to a level below that which such Lender could have achieved but for such adoption, change or compliance (taking into consideration the Funding Bank’s or Lender’s policies with respect to capital adequacy) by an amount deemed by such Lender to be material, or (iv) a Funding Bank or any Lender determines that any change in, or in the interpretation of, any law or regulation shall subject such Funding Bank or such Lender to any Tax of any kind whatsoever with respect to this Agreement or any Loan made by it, or change the basis in Taxation of payments to such Funding Bank or such Lender in respect thereof (except for any Excluded Taxes, or Indemnified Taxes or Other Taxes indemnifiable under Section 6.1); and the result of any of the foregoing events described in clauses (i), (ii), (iii) or (iv) is an increase in the cost to any Lender of funding or maintaining the Loans, then Parent Borrower and Guarantors shall from time to time upon demand by Agent pay to Agent additional amounts sufficient to indemnify such Lender, as the case may be, against such increased cost on an after-Tax basis (after taking into account applicable deductions and credits in respect of the amount indemnified). A certificate as to the amount of such increased cost shall be submitted to the Parent Borrower by Agent or the applicable Lender and shall be conclusive, absent manifest error. Notwithstanding anything herein to the contrary, for all purposes under this Agreement (including Section 3.3(a)), (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests,

 

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rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a change in Law after the Escrow Release Date, regardless of the date enacted, adopted or issued.

(b) If prior to the first day of any Interest Period, (i) Agent shall have determined in good faith (which determination shall be conclusive and binding upon Parent Borrower and Guarantors) that, by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining the Eurodollar Rate for such Interest Period, or (ii) Agent has received notice from the Required Lenders that the Eurodollar Rate determined or to be determined for such Interest Period will not adequately and fairly reflect the cost to Lenders of making or maintaining Eurodollar Rate Loans during such Interest Period, Agent shall give telecopy or telephonic notice thereof to the Parent Borrower as soon as practicable thereafter, and will also give prompt written notice to the Parent Borrower when such conditions no longer exist. If such notice is given (A) any Eurodollar Rate Loans requested to be made on the first day of such Interest Period shall be made as Base Rate Loans, (B) any Loans that were to have been converted on the first day of such Interest Period to or continued as Eurodollar Rate Loans shall be converted to or continued as Base Rate Loans and (C) each outstanding Eurodollar Rate Loan shall be converted, on the last day of the then-current Interest Period thereof, to Base Rate Loans. Until such notice has been withdrawn by Agent, no further Eurodollar Rate Loans shall be made or continued as such, nor shall the Parent Borrower have the right to convert Base Rate Loans to Eurodollar Rate Loans.

(c) Notwithstanding any other provision herein, if the adoption of or any change in any law, treaty, rule or regulation or final, non-appealable determination of an arbitrator or a court or other Governmental Authority or in the interpretation or application thereof occurring after the Escrow Release Date shall make it unlawful for Agent or any Lender to make or maintain Eurodollar Rate Loans as contemplated by this Agreement (i) Agent or such Lender shall promptly give written notice of such circumstances to the Parent Borrower (which notice shall be withdrawn whenever such circumstances no longer exist), (ii) the commitment of such Lender hereunder to make Eurodollar Rate Loans, continue Eurodollar Rate Loans as such and convert Base Rate Loans to Eurodollar Rate Loans shall forthwith be canceled and, until such time as it shall no longer be unlawful for such Lender to make or maintain Eurodollar Rate Loans, such Lender shall then have a commitment only to make a Base Rate Loan when a Eurodollar Rate Loan is requested and (iii) such Lender’s Loans then outstanding as Eurodollar Rate Loans, if any, shall be converted automatically to Base Rate Loans on the respective last days of the then current Interest Periods with respect to such Loans or within such earlier period as required by law. If any such conversion of a Eurodollar Rate Loan occurs on a day which is not the last day of the then current Interest Period with respect thereto, Parent Borrower and Guarantors shall pay to such Lender such amounts, if any, as may be required pursuant to Section 3.3(d) below.

(d) Parent Borrower and Guarantors shall indemnify Agent and each Lender and hold Agent and each Lender harmless from any loss or expense which Agent or such Lender may sustain or incur as a consequence of (i) default by the Parent Borrower in making a borrowing of, conversion into or extension of Eurodollar Rate Loans after Parent Borrower has given a notice requesting the same in accordance with the provisions of this Agreement, (ii) default by the Parent Borrower in making any prepayment of a Eurodollar Rate Loan after Parent Borrower has given a notice thereof in accordance with the provisions of this Agreement, and (iii) the making of a prepayment of Eurodollar Rate Loans on a day which is not the last day of an Interest Period with respect thereto. With respect to Eurodollar Rate Loans, such indemnification may include an amount equal to the excess, if any, of (A) the amount of interest which would have accrued on the amount so prepaid, or not so borrowed, converted or extended, for the period from the date of such prepayment or of such failure to borrow, convert or extend to the last

 

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day of the applicable Interest Period (or, in the case of a failure to borrow, convert or extend, the Interest Period that would have commenced on the date of such failure) in each case at the applicable rate of interest for such Eurodollar Rate Loans provided for herein (excluding the Applicable Margin) over (B) the amount of interest (as determined by such Agent or such Lender) which would have accrued to Agent or such Lender on such amount by placing such amount on deposit for a comparable period with leading banks in the interbank Eurodollar market. This covenant shall survive the termination or non-renewal of this Agreement and the payment of the Obligations.

(e) Any Agent or any Lender claiming compensation under this Section 3 shall deliver a certificate to the Parent Borrower setting forth the additional amount or amounts to be paid to it hereunder which shall be conclusive in the absence of manifest error. In determining such amount, such Agent or such Lender may use any reasonable averaging and attribution methods.

(f) With respect to any Lender’s claim for compensation under Section 3.3(a), (b) or (c), the Parent Borrower shall not be required to compensate such Lender for any amount incurred more than one hundred and eighty (180) days prior to the date that such Lender notifies the Parent Borrower of the event that gives rise to such claim; provided that, if the circumstance giving rise to such claim is retroactive, then such 180-day period referred to above shall be extended to include the period of retroactive effect thereof.

(g) If any Lender requests compensation under Section 3.3(a), (b) or (c), then such Lender will, if requested by the Parent Borrower, use commercially reasonable efforts to designate another Lending Office for any Loan affected by such event; provided that such efforts are made on terms that, in the reasonable judgment of such Lender, cause such Lender and its Lending Office(s) to suffer no material economic, legal or regulatory disadvantage, and provided, further, that nothing in this Section 3.3(g) shall affect or postpone any of the Obligations of the Parent Borrower or the rights of such Lender pursuant to Section 3.3(a), (b) or (c).

SECTION 4. CONDITIONS PRECEDENT

4.1 [Reserved].

4.2 Conditions Precedent to All Loans. The obligation of Lenders to make Loans (other than the initial Term B Loans, the Term B-3 Loans, the Term B-4 Loans, the Term B-5 Loans, the 2016-1 Term B-4 Loans, the 2016-1 Term B-5 Loans, the Term B-6 Loans, the 2016-2 Term B-4 Loans, the 2016-2 Term B-5 Loans, the 2016-1 Term B-6 Loans, the 2017-1 Term B-4 Loans, the 2017-1 Term B-5 Loans and, the 2017-1 Term B-6 Loans and the 2018 Term B-7 Loans) is subject to the further satisfaction of, or waiver of, immediately prior to or concurrently with the making of each such Loan of each of the following conditions precedent:

(a) all representations and warranties contained herein and in the other Financing Agreements shall be true and correct in all material respects (except where qualified by materiality, in which case such representations and warranties that are qualified by materiality shall be true and correct in all respects) with the same effect as though such representations and warranties had been made on and as of the date of the making of each such Loan and after giving effect thereto, except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and accurate on and as of such earlier date);

(b) no event shall have occurred and no condition shall exist that has or may be reasonably be likely to have a Material Adverse Effect; and

 

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(c) no Default or Event of Default shall exist or have occurred and be continuing on and as of the date of the making of such Loan and after giving effect thereto.

Notwithstanding anything in this Section 4.2 and in Section 2.8 to the contrary, to the extent that the proceeds of Incremental Term Loans are to be used to finance a Permitted Acquisition or Investment permitted hereunder, the only conditions precedent to the funding of such Incremental Term Loan shall be (i) the conditions precedent set forth in the related Incremental Amendment, (ii) that the Specified Representations and the Specified Acquisition Agreement Representations with respect to the Target of such Permitted Acquisition or Investment permitted hereunder shall be true and correct and (iii) no Event of Default under Section 11.1(a)(i), (a)(ii), (g) or (h) shall have occurred and be continuing or would result therefrom.

4.3 Conditions to the Escrow Release Date. The Parent Borrower agrees that it shall not direct the Escrow Agent to release the Escrow Account Funds, and the Escrow Release Date shall not occur, until satisfaction of, or waiver of, each of the following conditions precedent on or prior to the earliest of:

(a) The Agent’s receipt of the following, each of which shall be originals, telecopies or other electronic image scan transmission (e.g., “pdf” or “tif” via e-mail) (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing Loan Party or the Lenders, as applicable, each dated the Escrow Release Date (or, in the case of certificates of governmental officials, a recent date before the Escrow Release Date) and each in form and substance reasonably satisfactory to the Agent:

(i) executed counterparts of Amendment No. 5;

(ii) a Note executed by the Parent Borrower in favor of each Lender requesting a Note;

(iii) such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as the Agent may require evidencing (A) the authority of each Loan Party to enter into this Agreement and the other Financing Agreements to which such Loan Party is a party or is to become a party and (B) the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Financing Agreements to which such Loan Party is a party or is to become a party;

(iv) copies of each Loan Party’s Organization Documents (or a certification that such Organization Documents have not been amended since the date such Organization Documents were previously delivered to the Agent under the Existing Debt Facility) and such other documents and certifications as the Agent may reasonably require to evidence that each Loan Party is duly organized or formed, and that each Loan Party is validly existing, in good standing and qualified to engage in business in each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification, except to the extent that failure to so qualify in such jurisdiction could not reasonably be expected to have a Material Adverse Effect;

(v) evidence that, on the Escrow Release Date (or within 120 days after the Escrow Release Date) pursuant to arrangements reasonably satisfactory to the Agent, all principal and accrued interest and fees have been paid in full so that (x) no more than $80,000,000 of principal amount remains outstanding thereafter with respect to

 

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Safeway’s 3.40% Senior Notes due 2016 and (y) no more than $100,000,000 of principal amount remains outstanding thereafter with respect to Safeway’s 6.35% Senior Notes due 2017;

(vi) a solvency certificate signed by the Chief Financial Officer of the Parent Borrower substantially in the form attached hereto as Exhibit O;

(vii) the Security Agreement and certificates evidencing any stock being pledged thereunder, together with undated stock powers executed in blank, each duly executed by the applicable Loan Parties (provided, that with respect to Security Agreement to be executed by Safeway and its Subsidiaries, such Security Agreement may be executed and delivered after the release of the Term B-3 Loans and the Term B-4 Loans from the Escrow Account but not later than 5:00 p.m. New York City time on the Escrow Release Date);

(viii) a certificate signed by a Responsible Officer of Safeway certifying that Safeway has assumed, or concurrently with the Escrow Release Date shall assume, all the obligations of Merger Sub under the Financing Agreements;

(ix) results of searches or other evidence reasonably satisfactory to the Agent (in each case dated as of a date reasonably satisfactory to the Agent) indicating the absence of Liens on the assets of the Loan Parties, except for Permitted Liens and Liens for which termination statements and releases, satisfactions and releases or subordination agreements reasonably satisfactory to the Agent are being tendered concurrently with the Escrow Release Date or other arrangements reasonably satisfactory to the Agent for the delivery of such termination statements and releases, satisfactions and discharges have been made;

(x) Uniform Commercial Code financing statements required by Law or reasonably requested by the Agent to be filed, registered or recorded to create or perfect the first priority Liens intended to be created under the Financing Agreements and all such documents and instruments shall have been (or have been authorized by the Loan Parties to be) so filed, registered or recorded to the satisfaction of the Agent;

(xi) a customary legal opinion (including no conflicts with all indentures and other material debt documents of the Parent Borrower) (A) from Schulte Roth & Zabel LLP, counsel to the Loan Parties, (B) from Greenberg Traurig LLP, California, Illinois and Texas counsel to the Loan Parties and (C) from Bodman PLC, Michigan counsel to the Loan Parties, in each case addressed to the Agent and each Lender;

(xii) a certificate signed by a Responsible Officer of the Parent Borrower substantially in form and substance of Exhibit A to the Escrow Agreement, certifying as to the conditions set forth therein;

(xiii) a completed “Life-of-Loan” Federal Emergency Management Agency Standard Flood Hazard Determination with respect to each Existing Mortgaged Property (together with a notice about special flood hazard area status and flood disaster assistance duly executed by the Parent Borrower and each Loan Party relating thereto) and evidence of flood insurance as set forth in Section 9.4 hereof;

 

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(xviii) a certificate signed by a Responsible Officer of the Parent Borrower certifying as to the conditions set forth in clauses (h) and (i) of this Section 4.3; and

(xiv) the amended and restated Perfection Certificate, dated as of the Escrow Release Date, in form and substance reasonably acceptable to the Agent.

(b) Prior to or substantially simultaneously with the release of funds from the Escrow Account on the Escrow Release Date, Holdings shall have received the Equity Contribution.

(c) The Safeway Acquisition shall have been or, substantially concurrently with the initial borrowing under this Agreement, shall be consummated in accordance with the terms of the Safeway Merger Agreement.

(d) All fees required to be paid on the Escrow Release Date pursuant to the Fee Letter and this Agreement and reasonable and documented out-of-pocket expenses required to be paid on the Escrow Release Date pursuant to this Agreement, in each case to the extent invoiced at least two Business Days prior to the Escrow Release Date, shall have been paid (which amounts may be offset against the proceeds of the Loans).

(e) The Specified Acquisition Agreement Representations shall be true and correct in all material respects.

(f) The ABL Facility Documentation shall have been duly executed and delivered by each party thereto, and shall be in full force and effect.

(g) The ABL Intercreditor Agreement and the Term Loan Intercreditor Agreement shall have been duly executed and delivered by each party thereto and shall be in full force and effect.

(h) Since December 28, 2013, there shall not have occurred any Company Material Adverse Effect.

(i) The Specified Representations shall be true and correct in all material respects.

SECTION 5. [RESERVED]

SECTION 6. TAXES

6.1 Taxes.

Any and all payments by or on account of any Loan Party hereunder or under any other Financing Agreement shall (except to the extent required by applicable Laws) be made free and clear of, and without any deduction or withholding on account of, any Taxes.

(a) If any Loan Party, the Agent or any other applicable withholding agent shall be required by applicable law to deduct or withhold any Tax from or in respect of any sum paid or payable by any Loan Party under any of the Financing Agreements, then (i) the applicable Loan Party or other applicable withholding agent shall make such deduction or withholding and pay to the relevant Governmental Authority in accordance with applicable Laws any such Tax before the date on which penalties attach thereto, (ii) if the Tax in question is an Indemnified Tax or Other Tax, the sum payable by the applicable Loan Party shall be increased as necessary so that after all required deductions or withholdings have been

 

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made (including deductions or withholdings applicable to additional sums payable under this Section 6.1), each Lender (or, in the case of a payment made to an Agent for its own account, such Agent) receives an amount equal to the sum it would have received had no such deductions or withholdings been made, and (iii) within thirty days after paying any sum from which it is required by applicable Laws to make any deduction or withholding, if a Loan Party is the applicable withholding agent, the Parent Borrower shall deliver to the Agent evidence reasonably satisfactory to the Agent of such deduction or withholding and of the timely remittance thereof to the relevant Governmental Authority.

(b) Without limiting the provisions of Sections 6.1(a) and (b), the Parent Borrower shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable Laws.

(c) Each Lender shall, at such times as are reasonably requested by the Parent Borrower or the Agent, provide the Parent Borrower and the Agent with any documentation prescribed by applicable Laws or reasonably requested by the Parent Borrower or the Agent certifying as to any entitlement of such Lender to an exemption from, or reduction in, any applicable withholding Tax with respect to any payments to be made to such Lender under any Financing Agreement. Each such Lender shall, whenever a lapse in time or change in circumstances renders any such documentation (including any specific documentation required below in this Section 6.1(d)) obsolete, expired or inaccurate in any respect, deliver promptly to the Parent Borrower and the Agent updated or other appropriate documentation (including any new documentation reasonably requested by the Parent Borrower or the Agent) or promptly notify the Parent Borrower and the Agent in writing of its legal ineligibility to do so.

Without limiting the foregoing:

(1) Each U.S. Lender shall deliver to the Parent Borrower and the Agent on or before the date on which it becomes a party to this Agreement two properly completed and duly signed original copies of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding.

(2) Each Foreign Lender shall deliver to the Parent Borrower and the Agent on or before the date on which it becomes a party to this Agreement whichever of the following is applicable:

(A) two properly completed and duly signed original copies of IRS Form W-8BEN or W-8BEN-E (or any successor forms) claiming eligibility for the benefits of an income tax treaty to which the United States is a party,

(B) two properly completed and duly signed original copies of IRS Form W-8ECI (or any successor forms),

(C) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 871(h) or Section 881(c) of the Code, (A) two properly completed and duly signed certificates substantially in the form of Exhibit H-1, Exhibit H-2, Exhibit H-3 or Exhibit H-4 (any such certificate, a “United States Tax Compliance Certificate”) and (B) two properly completed and duly signed original copies of IRS Form W-8BEN or W-8BEN-E (or any successor forms),

(D) to the extent a Foreign Lender is not the beneficial owner (for example, where the Foreign Lender is a partnership or a participating Lender), IRS Form W-8IMY (or any successor forms) of the Foreign Lender, accompanied by a Form W-8ECI, W-8BEN, W-8BEN-E, United States Tax Compliance Certificate, Form W-9, Form

 

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W-8IMY or any other required information (or any successor forms) from each beneficial owner that would be required under this Section 6.1(d) if such beneficial owner were a Lender, as applicable (provided that if the Foreign Lender is a partnership (and not a participating Lender) and one or more direct or indirect partners are claiming the portfolio interest exemption, the United States Tax Compliance Certificate may be provided by such Foreign Lender on behalf of such direct or indirect partner(s)), or

(E) two properly completed and duly signed original copies of any other form prescribed by applicable U.S. federal income tax laws (including the Treasury Regulations) as a basis for claiming a complete exemption from, or a reduction in, United States federal withholding Tax on any payments to such Lender under the Financing Agreements.

(3) If a payment made to a Lender under any Financing Agreement would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Sections 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Parent Borrower and the Agent at the time or times prescribed by law and at such time or times reasonably requested by the Parent Borrower or the Agent such documentation prescribed by applicable Laws (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Parent Borrower or the Agent as may be necessary for the Parent Borrower and the Agent to comply with their FATCA obligations, to determine whether such Lender has or has not complied with such Lender’s FATCA obligations and, if necessary, to determine the amount to deduct and withhold from such payment. Solely for purposes of this Section 6.1(d)(3), “FATCA” includes any amendments made to FATCA after the date of this Agreement.

Notwithstanding any other provision of this Section 6.1(d), a Lender shall not be required to deliver any documentation that such Lender is not legally eligible to deliver.

(d) The Loan Parties shall, within ten (10) days after written demand therefor, jointly and severally, indemnify the Agent and each Lender (each a “Tax Indemnitee”) for the full amount of any Indemnified Taxes and Other Taxes (including any Indemnified Taxes and Other Taxes imposed or asserted on or attributable to amounts payable under this Section 6.1) paid or payable by such Tax Indemnitee, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability prepared in good faith and delivered by a Tax Indemnitee (or by Agent on behalf of a Tax Indemnitee), shall be conclusive absent manifest error.

(e) If and to the extent that a Tax Indemnitee determines, in its sole discretion exercised in good faith, that it has received a refund of any Indemnified Taxes or Other Taxes as to which it has been indemnified pursuant to this Section 6.1, then such Tax Indemnitee shall pay to the relevant Loan Party an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, under this Section 6.1 with respect to the Indemnified Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses (including any Taxes) of the Tax Indemnitee and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided that the applicable Loan Party, upon the request of the Tax Indemnitee, agrees to promptly repay the amount paid over pursuant to this Section 6.1(f) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to such Tax Indemnitee in the event that such Tax Indemnitee is required to repay such refund to such Governmental Authority. This Section 6.1(f)

 

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shall not be construed to require any Tax Indemnitee to make available its Tax returns (or any other information relating to its Taxes which it deems confidential) to any Loan Party or any other Person.

(f) Without prejudice to the survival of any other agreements of any Loan Party hereunder or under any other Financing Agreement, the agreements and obligations of Loan Parties contained in this Section 6.1 shall survive the termination of this Agreement, the payment in full of the Obligations, resignation of the Agent and any assignment of rights by, or replacement of, any Lender.

(g) Upon the written request of Parent Borrower, any Lender or Agent claiming any additional amounts or indemnification payments payable pursuant to this Section 6.1 shall use its reasonable efforts to mitigate or reduce the additional amounts payable, which reasonable efforts may include a change in the jurisdiction of its Lending Office (or any other measures reasonably requested by the Parent Borrower) if such a change or other measures would reduce any such additional amounts (or any similar amount that may thereafter accrue) and would not, in the sole determination of such Lender, result in any unreimbursed cost or expense or be otherwise disadvantageous to such Lender.

6.2 Replacement of Lenders under Certain Circumstances.

(a) If at any time a Borrower becomes obligated to pay additional amounts or indemnity payments described in Section 6.1 or 3.3 as a result of any condition described in such Sections or any Lender ceases to make any Eurocurrency Rate Loans as a result of any condition described in Section 3.3, then the Parent Borrower may, on ten (10) Business Days’ prior written notice to the Agent and such Lender, (x) replace such Lender by causing such Lender to (and such Lender shall be obligated to) assign pursuant to Section 14.7(a) (with the assignment fee to be paid by the Parent Borrower in such instance) all of its rights and obligations under this Agreement (in respect of any applicable Facility) to one or more Eligible Transferees; provided that neither the Agent nor any Lender shall have any obligation to the Parent Borrower to find a replacement Lender or other such Person; and provided, further, that in the case of any such assignment resulting from a claim for compensation under Section 3.3 or payments required to be made pursuant to Section 6.1, such assignment will result in a reduction in such compensation or payments; or (y) terminate the Commitment of such Lender and repay or cause to be repaid all Obligations of the Borrowers owing to such Lender relating to the Loans and participations held by such Lender as of such termination date.

(b) Any Lender being replaced pursuant to Section 6.2(a) above shall (i) execute and deliver an Assignment and Acceptance with respect to such Lender’s applicable Commitment and outstanding Loans in respect thereof, and (ii) deliver any Term Notes evidencing such Loans to the Parent Borrower or Agent. Pursuant to such Assignment and Acceptance, (A) the assignee Lender shall acquire all or a portion, as the case may be, of the assigning Lender’s Commitment and outstanding Loans, (B) all obligations of the Borrowers owing to the assigning Lender relating to the Loans, Commitments and participations so assigned shall be paid in full by the assignee Lender to such assigning Lender concurrently with such Assignment and Acceptance and (C) upon such payment and, if so requested by the assignee Lender, delivery to the assignee Lender of the appropriate Term Note or Term Notes executed by the applicable Borrowers, the assignee Lender shall become a Lender hereunder and the assigning Lender shall cease to constitute a Lender hereunder with respect to such assigned Loans, Commitments and participations, except with respect to indemnification provisions under this Agreement, which shall survive as to such assigning Lender. In connection with any such replacement, if any such Non-Consenting Lender does not execute and deliver to the Agent a duly executed Assignment and Assumption reflecting such replacement within five (5) Business Days of the date on which the assignee Lender executes and delivers such Assignment and Acceptance to such Non-Consenting Lender, then such Non-Consenting Lender shall be deemed to have executed and delivered such Assignment and Acceptance without any action on the part of the Non-Consenting Lender.

 

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SECTION 7. [RESERVED]

SECTION 8. REPRESENTATIONS AND WARRANTIES

To induce the Agent and the Lenders to enter into this Agreement and to make Loans, each Loan Party represents and warrants to the Agent and the Lenders that:

8.1 Existence, Qualification and Power. Each Loan Party and each Restricted Subsidiary thereof (a) is a corporation, limited liability company, partnership or limited partnership, duly incorporated, organized or formed, validly existing and, where applicable, in good standing under the Laws of the jurisdiction of its incorporation, organization or formation, (b) has all requisite power and authority and all requisite governmental licenses, permits, authorizations, consents and approvals to (i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its obligations under the Financing Agreements to which it is a party, and (c) is duly qualified and is licensed and, where applicable, in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license; except in each case referred to in clause (b)(i) or (c), to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect. Schedule 8.1 annexed hereto sets forth, as of the Escrow Release Date, each Loan Party’s name as it appears in official filings in its state of incorporation or organization, its state of incorporation or organization, organization type, organization number, if any, issued by its state of incorporation or organization, and its federal employer identification number.

8.2 Authorization; No Contravention. The execution, delivery and performance by each Loan Party of each Financing Agreement to which such Person is or is to be a party, has been duly authorized by all necessary corporate or other organizational action, and does not and will not (a) contravene the terms of any of such Person’s Organization Documents; (b) conflict with or result in any breach, termination, or contravention of, or constitute a default under, or require any payment to be made under (i) any Material Contract or any Material Indebtedness to which such Person is a party or affecting such Person or the properties of such Person or any of its Restricted Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its property is subject; (c) result in or require the creation of any Lien upon any asset of any Loan Party (other than Liens in favor of the Agent under the Collateral Documents); or (d) violate any Law.

8.3 Financial Statements.

(a) The Audited Financial Statements (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; (ii) fairly present in all material respects the financial condition of the Parent Borrower and its Subsidiaries and Safeway and its Subsidiaries as of the date thereof and their results of operations for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; and (iii) to the extent required by GAAP, show all Material Indebtedness and other liabilities, direct or contingent, of the Parent Borrower and its Subsidiaries and Safeway and its Subsidiaries, respectively, as of the dates thereof, including liabilities for taxes, material commitments and Indebtedness.

(b) The unaudited Consolidated balance sheet of Parent Borrower and its Subsidiaries, dated as of November 27, 2014 and Safeway and its Subsidiaries, dated as of November 27, 2014, and the related Consolidated statements of income or operations, Shareholders’ Equity and cash flows for the Quarterly Accounting Period ended on those dates (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, and (ii) fairly present in all material respects the financial condition of the Parent Borrower and its

 

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Subsidiaries and Safeway and its Subsidiaries as of the dates thereof and their results of operations for the period covered thereby, subject, in the case of clauses (i) and (ii), to the absence of footnotes and to normal year-end audit adjustments.

(c) The Consolidated forecasted balance sheets and statements of income and cash flows of the Albertson’s Group delivered pursuant to Section 9.5(e) were prepared in good faith on the basis of the assumptions stated therein, which assumptions were reasonable in light of the conditions existing at the time of delivery of such forecasts, and represented, at the time of delivery, the Loan Parties’ good faith estimate of its future financial performance (it being understood that such forecasted financial information is subject to significant uncertainties and contingencies, many of which are beyond the control of the Loan Parties, that no assurance is given that any particular forecasts will be realized, that actual results may differ and that such differences may be material).

8.4 Ownership of Property; Liens.

(a) Each of the Loan Parties and each Restricted Subsidiary thereof has good record and valid title in fee simple to or valid leasehold interests in, all real property necessary or used in the ordinary conduct of its business, except for Permitted Liens and such defects in title or failure to have such title or other interest as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each of the Loan Parties and each Restricted Subsidiary has good and valid title to, valid leasehold interests in, or valid licenses or other rights to use all personal property and assets material to the ordinary conduct of its business, except for Permitted Liens or as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

(b) To the knowledge of the Loan Parties, Schedule 8.4(b)(1) sets forth the address of all Material Real Property that is owned by the Loan Parties and each of their Restricted Subsidiaries on the Escrow Release Date. Each Loan Party has good and valid fee simple title to the real property owned by such Loan Party, free and clear of all Liens, other than Permitted Liens and such defects in title as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. To the knowledge of the Loan Parties, Schedule 8.4(b)(2) sets forth the address of all Leases of Material Real Property of the Loan Parties and each of their Restricted Subsidiaries on the Escrow Release Date, together with the name of each lessor with respect to each such Lease as of the Escrow Release Date. Each of such Leases is in full force and effect and, to the knowledge of the Loan Parties, the Loan Parties are not in default of the terms thereof, except, in each case, as could not individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

(c) The property of each Loan Party and each of its Subsidiaries is subject to no Liens, other than Permitted Liens and such defects in title as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

(d) Schedule 10.2 sets forth a complete and accurate list of all Investments of the type under Section 10.2(b) held by any Loan Party or any Subsidiary of a Loan Party on the Escrow Release Date, showing as of the Escrow Release Date the amount, obligor or issuer and maturity, if any, thereof.

(e) Schedule 10.3 sets forth a complete and accurate list of all Material Indebtedness of the type under Section 10.3(a) of each Loan Party or any Restricted Subsidiary of a Loan Party on the Escrow Release Date, showing as of the Escrow Release Date the amount, obligor or issuer and maturity thereof.

8.5 Taxes. Except for failures that could not reasonably be expected, either individually or in the aggregate, to result in a Material Adverse Effect, the Loan Parties and each of their Restricted

 

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Subsidiaries have filed all Tax returns and reports required to be filed, and have paid all Taxes levied or imposed upon them or their properties, income or assets or otherwise due and payable (including in the capacity of withholding agent), except those which are being contested in good faith by appropriate proceedings being diligently conducted, for which adequate reserves have been provided in accordance with GAAP, as to which Taxes no Liens (other than Permitted Liens on account thereof) have been filed and which contest effectively suspends the collection of the contested obligation and the enforcement of any Lien securing such obligation. There is no current, pending or proposed Tax audit, deficiency, assessment or other claim or proceeding with respect to any Loan Party or any of their Subsidiaries that, individually, or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.

8.6 Litigation. There are no actions, suits,