Exhibit 10.4

EXECUTION COPY

CONTRIBUTION DEFERRAL AGREEMENT

dated as of June 17, 2009

by and between

YRC, INC.,

USF HOLLAND, INC.,

NEW PENN MOTOR EXPRESS, INC.,

USF REDDAWAY INC.,

and

the TRUSTEES for the

CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION FUND

and the other Funds (as defined herein) from time to time a party hereto

and

WILMINGTON TRUST COMPANY,

as Agent

TABLE OF CONTENTS

 

 

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CONTRIBUTION DEFERRAL AGREEMENT

This Contribution Deferral Agreement (this “ Agreement ”) is entered into as of June 17, 2009 (the “ Agreement Date ”), by and between (i) YRC, INC., a Delaware corporation (“ YRC ”); USF HOLLAND, INC., a Michigan corporation (“ Holland ”); NEW PENN MOTOR EXPRESS INC., a Pennsylvania corporation (“ New Penn ”) USF REDDAWAY INC., an Oregon corporation (“ Reddaway ”) (each of YRC, Holland, New Penn and Reddaway a “ Primary Obligor ”, and collectively, the “ Primary Obligors ”); (ii) the TRUSTEES for the CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION FUND (the “ CS Pension Fund ”), and each other pension fund which executes a joinder substantially in the form of Exhibit A attached hereto (each a “ Joinder ”) (each of the CS Pension Fund and such other pension funds a “ Fund ”, and collectively, the “ Funds ”) and (iii) Wilmington Trust Company, as agent for the Funds (together with its successors and assigns, in such capacity, the “ Agent ”). The Obligors, the Funds and the Agent are herein individually each referred to as a “ Party ” and together referred to as the “ Parties ”.

RECITALS

WHEREAS, the Primary Obligors and certain of their employees who are represented by the International Brotherhood of Teamsters (the “ Teamsters ”) have previously entered into the 2008-2013 National Master Freight Agreement and its Supplements (as amended, modified and supplemented from time to time, the “ CBA ”), which, among other things, provides that the Primary Obligors will generally make certain contributions to the Funds based on hours worked by covered employees;

WHEREAS, the Primary Obligors and the CS Pension Fund have previously entered into a deferral agreement, pursuant to which such Parties agreed that contributions otherwise due to the CS Pension Fund from the Primary Obligors under the CBA on or about February 15, 2009 (with respect to service rendered by employees during January 2009 the terms and conditions of employment of which are subject to the CBA and as further described on Schedule 1.01(h) , the “ February Pension Payment ”) would be paid to the CS Pension Fund by the Primary Obligors on May 15, 2009 (or such later date as mutually agreed) rather than on the date otherwise required pursuant to the applicable participation agreement between each Primary Obligor and the CS Pension Fund;

WHEREAS, the Primary Obligors have provided the Funds with certain information regarding their financial status, ongoing projected cash flow and their resulting ability to make certain of the contributions required under the CBA;

WHEREAS, the Primary Obligors and the Funds each desire to enter into this Agreement to defer the time of payment required of the Primary Obligors of certain contributions due to the Funds from the Primary Obligors under the CBA (such deferral, in accordance with the terms and conditions set forth herein, the “ Payment Deferral ”); and

NOW, THEREFORE, in consideration of the premises and the mutual covenants of the parties hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:

ARTICLE I

Definitions

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

“ Adjusted Gross Book Value ” means 50% percent of the Gross Book Value of the Second Priority Collateral as determined at the time and from time to time such Second Priority Collateral is provided to the Agent, on behalf of the Funds.

“ Affiliate ” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.

“ Agreement ” has the meaning given to that term in the introductory paragraph hereof.

“ Agreement Date ” has the meaning given to that term in the introductory paragraph of this Agreement.

“ April Pension Payment ” means the payment required of each of the applicable Primary Obligors to the applicable Funds and in the amounts separately identified on Schedule 1.01(a) (as amended or supplemented from time to time pursuant to a Joinder Agreement) on April 15, 2009 pursuant to the CBA and the applicable participation agreement between the applicable Primary Obligor and the applicable Fund with respect to hours worked by collectively bargained employees of the Obligors during March 2009.

“ Asset Sale ” means any sale, transfer or other disposition by an Obligor to any Person of any real property set forth on Schedule 1.01(b) other than sales, transfers or other dispositions of any such property by an Obligor to another Obligor (so long as all actions necessary to maintain the perfection of the Agent’s first-priority Lien on such First Priority Collateral are taken).

“ Business Day ” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City, New York or Wilmington, Delaware are authorized or required by law to remain closed.

“ CBA ” has the meaning given to that term in the recitals of this Agreement.

“ Code ” means the Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated thereunder.

“ Collateral ” means collectively the First Priority Collateral and the Second Priority Collateral.

“ Collateral Documents ” means, collectively, the Mortgages and all other agreements, instruments and documents executed in connection with this Agreement that are

 

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intended to create, evidence or perfect Liens to secure the Obligations, including all other mortgages, deeds of trust, collateral trust agreements, intercreditor agreements or collateral sharing agreements, guarantees, subordination agreements, powers of attorney, consents, assignments, contracts, notices, financing statements and all other written matter whether heretofore, now, or hereafter executed by an Obligor and delivered to the Agent, in each case as the same may be amended, restated, supplemented or otherwise modified from time to time.

“ Control ” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto.

“ CS Health and Welfare Fund ” means Central States, Southwest and Southwest Areas Health and Welfare Fund.

“ CS Pension Fund ” has the meaning set forth in the recitals hereto.

“ Default ” means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

“ Deferred Pension Payment ” means with respect to the CS Pension Fund, the February Pension Payment, and with respect to the CS Pension Fund and the other Funds, the April Pension Payment, the May Pension Payment, the June Pension Payment and each Other Deferred Pension Payment (collectively, such payments, the “ Deferred Pension Payments ”).

“ Effective Date ” means, with respect to each of the Deferred Pension Payments, the date such payment is due under the terms of the applicable participation agreement between the applicable Primary Obligor and the applicable Fund absent this Agreement, and therefore, subject to the satisfaction of the conditions to deferral set forth herein for such payment, such date is the effective date of the Payment Deferral with respect to such payment hereunder. The Effective Date of each Deferred Pension Payment shall be set forth on Schedules 1.01(a), (c), (d), (f) and (h) (as amended or supplemented from time to time by a Joinder Agreement).

“ ERISA ” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated thereunder.

“ ERISA Affiliate ” means any trade or business (whether or not incorporated) that, together with any Obligor, is treated as a single employer under Section 414(b), (c), (m) or (o) of the Code.

“ Event of Default ” has the meaning set forth in Article VIII .

“ Excess Cash Amount ” means, at any time, an amount equal to the positive difference between the actual Liquidity of Parent and its Subsidiaries as of such date and Liquidity in an amount equal to $250,000,000.

 

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“ February Pension Payment ” has the meaning given to that term in the recitals of this Agreement.

“ First Priority Collateral ” means any and all real property owned, by an Obligor covered by the Collateral Documents and any and all other property of any Obligor, now existing or hereafter acquired, that may at any time be or become subject to a first priority security interest or Lien (subject to Permitted Liens and subordinate Liens created under the Senior Credit Facility) in favor of or for the benefit of the Agent, on behalf of itself and the Funds, to secure the Obligations. The First Priority Collateral shall be limited to the real property described on Schedule 1.01(b) (and the property described in the Mortgages encumbering such real property), in each case subject to the terms herein and the Intercreditor Agreement.

“ First Priority Title Policies ” has the meaning ascribed to such term in Section 6.01(a)(iii).

“ Fund ” and “ Funds ” have the meanings assigned to such terms in the heading of this Agreement; provided, that a pension fund shall only be permitted to join this Agreement pursuant to the terms of the Joinder Agreement(s) on or before August 15, 2009.

“ Fund Documents ” means this Agreement, the Guarantee, the Intercreditor Agreement, the Joinders and the Collateral Documents.

“ GAAP ” means generally accepted accounting principles in the United States of America as in effect from time to time.

“ Gross Book Value ” shall have the meaning assigned to such term by GAAP.

“ Guarantee ” means that (i) certain Non-Recourse Guarantee, by and among each Guarantor party thereto from time to time and the Agent, on behalf of itself and the Funds and (ii) any other non-recourse guarantee, by and among a Guarantor and the Agent on behalf of itself and the Funds and any other party thereto. It is understood and agreed that (x) only Affiliates of the Primary Obligors executing a Mortgage shall be required to execute the Guarantee and (y) recourse under the Guarantee with respect to any Guarantor shall be limited to its owned real property subject to any Mortgage (and the property described in such Mortgage). The Guarantee shall be substantially in the form attached hereto as Exhibit D hereto or such other form as is reasonably acceptable to the Primary Obligors, Agent and CS Pension Fund.

“ Guarantors ” means each Affiliate of the Primary Obligors who executes the Guarantee.

“ Holland ” has the meaning assigned to such term in the heading of this Agreement.

“ Indemnitee ” has the meaning assigned to such term in Section 11.02.

“ Intercreditor Agreement ” mean an intercreditor agreement by and among the Agent, on behalf of the Funds, and the Senior Administrative Agent.

 

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“ June Pension Payment ” means the payment required of each of the applicable Primary Obligors to the applicable Funds and in the amounts separately identified on Schedule 1.01(c) (as amended or supplemented from time to time pursuant to a Joinder Agreement) on or about June 15, 2009 pursuant to the CBA and the applicable participation agreement between the applicable Primary Obligor and the applicable Fund with respect to hours worked by collectively bargained employees of the Primary Obligors during May 2009.

“ Lien ” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset and (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset.

“ Liquidity ” shall have the meaning set forth in the Senior Credit Facility as of the Agreement Date.

“ Majority Funds ” means, at any time, Funds having outstanding Deferred Pension Payments representing at least 50.1% of the sum of the total outstanding Deferred Pension Payments for all Funds at such time.

“ Material Adverse Effect ” means (a) a material adverse effect on (i) the business, assets, operations or condition, financial or otherwise, of the Parent and its subsidiaries taken as a whole, (ii) the ability of the Obligors to perform any of their respective obligations under the Fund Documents or (iii) the rights of or benefits available to the Funds (or the Agent, on behalf of the Funds) under this Agreement and the other Fund Documents or (b) a material impairment of a material portion of the Collateral or of any Lien on any material portion of the Collateral in favor of or for the benefit of the Agent and/or the Funds or the priority of such Liens.

“ May Pension Payment ” means the payment required of each of the applicable Primary Obligors to the applicable Funds and in the amounts separately identified on Schedule 1.01(d) (as amended or supplemented pursuant to a Joinder Agreement) on or about May 15, 2009 pursuant to the CBA and the applicable participation agreement between the applicable Primary Obligors and the applicable Funds with respect to hours worked by collectively bargained employees of the Obligors during April 2009.

“ Mortgage ” means each mortgage, deed of trust or other agreement which conveys or evidences a Lien in favor of or for the benefit of the Agent, on behalf of itself and the Funds, on real property owned by an Obligor. The form of mortgage for each of the First Priority Collateral and Second Priority Collateral is attached hereto as Exhibit B-1 and B-2, respectively.

“ Multiemployer Plan ” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA with respect to which the Company or any of its ERISA Affiliates has or may have any liability, contingent or otherwise.

“ Net Cash Proceeds ” means, with respect to any event, (a) the cash proceeds received in respect of such event including any cash received in respect of any non-cash proceeds (including any cash payments received by way of deferred payment of principal

 

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pursuant to a note or installment receivable or purchase price adjustment receivable or otherwise, but excluding any interest payments), but only as and when received, net of (b) the sum of (i) all reasonable fees and out-of-pocket expenses paid to third parties (other than Affiliates) in connection with such event and (ii) except in the case of the real property set forth on Schedule 1.01(b), the amount of all payments required to be made as a result of such event to repay Indebtedness (other than Deferred Pension Payments) secured by such asset or otherwise subject to mandatory prepayment as a result of such event.

“ New Penn ” has the meaning assigned to such term in the heading of this Agreement.

“ Obligations ” means the due and punctual payment of (a) all Deferred Pension Payments, and interest (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Deferred Pension Payments when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise and (b) all other indemnities, fees, costs, and expenses (including, without limitation, the fees and expenses of the Agent, Agent’s sub-agents and legal counsel reimbursable hereunder), whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), of the Obligors under this Agreement and the other Fund Documents.

“ Other Deferred Pension Payments ” means the payment required of each of the applicable Primary Obligors to the applicable Funds and in the amounts and as of the dates separately identified on Schedule 1.01(f), in each case as amended by each Joinder Agreement, as applicable; provided, that in the absence of consent by the Majority Funds, in no event shall any Fund defer more than three (3) monthly pension payments owed by the Primary Obligors to such Fund or their Affiliates (or four (4) monthly pension payments in the case of CS Pension Fund).

“ Obligor ” and “ Obligors ” shall mean the Primary Obligors and the Guarantors.

“ Parent ” means YRC Worldwide Inc.

“ Party ” and “ Parties ” have the meanings assigned to such terms in the heading of this Agreement.

“ Payment Deferral ” has the meaning set forth in the recitals hereto.

“ Pension Interest Rate ” means, with respect to any Fund and such Fund’s Deferred Pension Payments, the rate of interest per annum set forth in such Fund’s Pension Trust as set forth on Schedule 1.01(g) (as supplemented or amended by a Joinder Agreement).

“ Pension Trust ” means with respect to any Fund, trust documentation that creates and governs the Fund.

 

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“ Permitted Lien ” shall mean (a) Liens described in (i) clauses (a), (b), (e), and (f) of the definition of “Permitted Encumbrances” and (ii) Sections 6.02(i) in each case in the Senior Credit Facility as of the date hereof, (b) as to any property comprising Collateral, exceptions set forth in the Title Policy for such property, (c) Liens granted pursuant to the Bank Group Security Documents (as defined in the Intercreditor Agreement) subject to the terms of the Intercreditor Agreement and (d) Liens arising in the ordinary course of business securing obligations (other than debt for borrowed money) in an amount not to exceed $1,000,000 at any time.

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

“ Primary Obligor ” and “ Primary Obligors ” shall have the meanings assigned to such terms in the heading of this Agreement.

“ Promissory Note ” means a promissory note evidencing the Deferred Pension Payments owed to any Fund by the applicable Primary Obligor. Each Promissory Note shall be substantially in the form of Exhibit C attached hereto.

“ Projections ” shall have the meaning set forth in Section 3.05 .

“ Reddaway ” has the meaning assigned to such term in the heading of this Agreement.

“ Release Event ” shall have the meaning set forth in Section 11.17 .

“ Related Parties ” means, with respect to any specified Person, such Person’s Affiliates and the respective directors, officers, trustees, employees, agents and advisors of such Person and such Person’s Affiliates.

“ Responsible Officer ” means the chief financial officer, principal accounting officer, treasurer, controller or any vice president whose duties include monitoring compliance with this Agreement by the Obligors, and when used with respect to the Agent, the officer in the Corporate Capital Markets division at the Corporate Trust Office of the Agent having direct responsibility for the administration of this Agreement.

“ Second Priority Collateral ” means any and all real property owned by an Obligor covered by the Collateral Documents and any and all other property of any Obligor now existing or hereafter acquired, that may at any time be or become subject to a second priority security interest or Lien (subject to Permitted Liens and subordinate to Liens created under the Senior Credit Facility pursuant to the Intercreditor Agreement) in favor of or for the benefit of the Agent, on behalf of itself and the Funds, to secure the Obligations. The Second Priority Collateral shall be limited to the real property described on Schedule 1.01(e)(and the property described in the Mortgages encumbering such real property), subject in each case to the terms herein and the Intercreditor Agreement.

“ Section Priority Title Policies” shall have the meaning set forth in Section 6.01(b)(iii).

 

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“ Senior Administrative Agent ” means the administrative agent (including any successor or assign thereof) under the Senior Credit Facility.

“ Senior Credit Facility ” means that certain Credit Agreement, dated as of August 17, 2007 among YRC Worldwide Inc., a Delaware corporation, the Canadian Borrowers (as defined therein), the UK Borrowers (as defined therein), the Lenders party thereto from time to time, JPMorgan Chase Bank, National Association, Toronto Branch, as Canadian Agent, J.P. Morgan Europe Limited, as UK Agent, and JPMorgan Chase Bank, National Association, as Administrative Agent, as amended, modified, supplemented, restated, renewed, replaced, refinanced or extended from time to time.

“ Senior Credit Facility Event of Default ” shall have the meaning set forth in Article VIII(d) .

“ Taxes ” means any and all present or future taxes, penalties, levies, imposts, duties, deductions, charges or withholdings imposed by any governmental authority.

“ Title Policy ” or “ Title Policies ” shall have the meaning set forth in Section 6.01(b)(iii).

“ 13-Week Cash Flow Projections ” shall have the meaning set forth in Section 6.02(e).

“ Transactions ” means the execution, delivery and performance by the Obligors and Funds of this Agreement and the execution, delivery and performance by the Obligors of the other Fund Documents (including the granting of the Liens to the Agent, for the benefit of itself and the Funds, granted thereby).

“ US Dollars ” or “$” means the lawful money of the United States of America.

“ Withdrawal Liability ” means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.

“ YRC ” has the meaning assigned to such term in the heading of this Agreement.

SECTION 1.02. Terms Generally . The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. References to the plural include the singular, and references to the singular include the plural. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context expressly requires otherwise:

(a) Except where expressly stated otherwise herein, any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, amended and restated, restated, supplemented, otherwise modified, renewed, refinanced, replaced or extended (subject to any restrictions on such amendments, restatements, supplements or modifications set forth herein);

 

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(b) any reference herein to any Person shall be construed to include such Person’s successors and permitted assigns;

(c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof;

(d) all references herein to articles, sections, exhibits and schedules shall be construed to refer to Articles and Sections of, and exhibits and schedules to, this Agreement;

(e) any capitalized terms used in any schedule or exhibit attached hereto and not otherwise defined therein shall have the meanings set forth in this Agreement; and

(f) the term “knowledge” or “aware” shall mean the actual knowledge of a Responsible Officer.

ARTICLE II

Deferred Contributions

SECTION 2.01. Pension Contributions . Subject to the terms and conditions set forth herein, the Funds on a several basis and the Primary Obligors, on a joint and several basis, hereby agree that each of the Deferred Pension Payments shall not be made on their applicable Effective Dates, but instead shall be made by the Primary Obligors to the Funds in (i) one payment of $3,571,405 on or before June 30, 2009 and thereafter (ii) thirty - six equal monthly installments payable on the 15th day of each calendar month commencing January 15, 2010 (or, as to any Deferred Pension Payment owed to any Fund, on such later dates as may be mutually agreed by the applicable Primary Obligors and such Fund directly affected by such extension with prior notice to the Agent).

SECTION 2.02. Interest . Interest shall accrue with respect to each Deferred Pension Payment (or, as applicable, the unpaid portion thereof) at the Pension Interest Rate from its Effective Date until the date such Deferred Pension Payment has been paid to the applicable Fund in full. Accrued interest on each Deferred Payment shall be payable in arrears on the fifteenth day of each calendar month commencing on July 15, 2009 and upon termination of this Agreement; provided, that all interest accruing and unpaid from each applicable Effective Date through the date such Fund becomes a party to this Agreement with respect to such Deferred Pension Payment shall be capitalized, compounded and added to the applicable Deferred Pension Payment, in each case as described on Schedules 1.01(a), (c), (d), (f) and (h). Interest payable pursuant to this Section 2.02 shall be computed on the basis of a 365 day or 366 day year, as the case may be.

 

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SECTION 2.03. Prepayments .

(a) Asset Sales . In the event of receipt of Net Cash Proceeds from any Asset Sale or any casualty or condemnation event with respect to real property described on Schedule 1.01(b), the Obligors shall, within five (5) Business Days after receipt of such Net Cash Proceeds, prepay the Obligations in an aggregate amount equal to 100% of such Net Cash Proceeds.

(b) Excess Cash Proceeds . If the Liquidity of Parent and its subsidiaries is greater than $250,000,000, the Obligors shall, within 5 Business Days, make a prepayment in respect of the Deferred Payments equal to the Excess Cash Amount; provided , that after giving effect to such payment, Liquidity shall be equal to $250,000,000; provided , further, that notwithstanding anything to contrary in this Section 2.03(b) in no event shall the Obligors be required to make such prepayment unless and until the Excess Cash Amount is equal to or greater than $1,000,000 at any time.

(c) Optional . Obligors shall have the right at any time and from time to time, without premium or penalty, to prepay any of the Obligations in whole or in part either with or without prior notice, in the sole discretion of the Obligors.

(d) Application of Prepayments . Any mandatory prepayments pursuant to Sections 2.03(a) or (b) shall be applied ratably to all Deferred Pension Payments and shall be applied pro rata across the remaining installment payments. Any optional prepayment hereunder shall be applied ratably to all Deferred Pension Payments in direct order of scheduled payment.

SECTION 2.04. Payments Generally; Allocations of Proceeds; Pro Rata Treatment .

(a) Each Primary Obligor shall make each payment required to be made by it hereunder or under any other Fund Document (whether of Deferred Pension Payment, interest, fees or otherwise) prior to the time expressly required hereunder or under such other Fund Document for such payment (or, if no such time is expressly required, prior to 3:00 p.m. Central Standard Time), on the date when due, in immediately available funds, without set-off or counterclaim. All such payments shall be made to the Agent to the applicable account specified in Schedule 2.04 or, in any such case, to such other account as the Agent shall from time to time specify in a notice delivered to the Primary Obligors. The Agent shall distribute any such payments received by it to for the account of the appropriate Fund in accordance with such Schedule 2.04 promptly following receipt thereof. If any payment hereunder or under any other Fund Document shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments under any Fund Document shall be made in US Dollars. Any payment required to be made by the Obligors hereunder shall be deemed to have been made by the time required if the Obligors shall, at or before such time, have taken the necessary steps to make such payment in accordance with the regulations or operating procedures of the clearing or settlement system used by the Obligors to make such payment so long as such payment shall be received by the Agent or the Funds, as applicable, within one (1) Business Day of such steps being taken and the Primary Obligors shall have provided written notice to the Agent (for further distribution to the Funds) of such steps on the day such steps were undertaken.

 

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(b) If at any time insufficient funds are received by and available to the Agent to pay fully all amounts of Deferred Pension Payment, interest and fees then due hereunder, such funds shall be applied (i)  first , towards payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii)  second , towards payment of Deferred Pension Payments then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of Deferred Pension Payments then due to such parties.

(c) If at any time a Fund receives amounts in excess of its ratable share of the amount then distributed by the Agent, such Fund shall immediately remit such excess amounts to the Agent for redistribution.

(d) If the Agent shall receive any proceeds of Collateral (i) not constituting a specific payment of Deferred Pension Payments, interest, fees or other sum payable under the Fund Documents (which shall be applied as specified in Section 2.03 ) or (ii) after an Event of Default has occurred and is continuing and the Majority Funds so direct in writing, such funds shall be applied ratably first , to pay any fee or expense reimbursements including amounts then due to the Agent from any Obligor (including, without limitation, the fees and expenses of the Agent’s sub-agents and one legal counsel), second , to pay any expense reimbursements then due to the Funds from any Obligor, third , to pay interest then due and payable on the Deferred Pension Payments ratably, and fourth , to pay Deferred Pension Payments then due and payable ratably or as a court of competent jurisdiction shall direct.

ARTICLE III

Representations and Warranties of the Obligors

Each Primary Obligor represents and warrants to the Agent and each of the Funds that:

SECTION 3.01. Organization; Powers . Each of the Primary Obligors (a) is organized, validly existing and in good standing (to the extent that such concept is applicable in the relevant jurisdiction) under the laws of the jurisdiction of its organization or incorporation as applicable, and (b) has all corporate or organizational requisite corporate power and authority to carry on its business as now conducted.

SECTION 3.02. Authorization; Enforceability . The Payment Deferral and entry into the Transactions each are within each Primary Obligor’s corporate or organizational powers and have been duly authorized by all necessary organizational and, if required, stockholder or shareholder action. Each Primary Obligor has all requisite corporate or organizational power to carry out and perform its obligations under the terms of this Agreement. The Fund Documents to which each Primary Obligor is a party have been duly executed and delivered by such Primary Obligor. This Agreement and each of the Fund Documents to which any Primary Obligor is a party constitutes the legal, valid and binding obligation of each Primary Obligor, enforceable

 

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against the Primary Obligor in accordance with its terms subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

SECTION 3.03. No Violation . The Transactions:

(a) do not require any consent or approval of, registration or filing with, or any other action by, any governmental authority, except such as have been obtained or made and are in full force and effect and except for (i) filings and other actions necessary to perfect Liens created pursuant to the Fund Documents and (ii) filings and other actions necessary to release or subordinate any existing Liens;

(b) will not violate any applicable law or regulation applicable to the Obligors or any order of any governmental authority;

(c) will not violate the charter, by-laws or other organizational or constitutional documents of the Obligors; or

(d) will not violate or result in a default under the Senior Credit Facility,

except in each case (other than clause (d)), such consents, approvals, registrations, filings or other actions the failure of which to obtain or make, or, in the case of clause (b) at any time after the date hereof, to the extent such violations, could not reasonably be expected to have a Material Adverse Effect.

SECTION 3.04. Inability to Make Certain Limited Payments . Solely with respect to the February Pension Payment, the April Pension Payment and the May Pension Payment, each Primary Obligor was unable to make such Deferred Pension Payments as of the applicable Effective Date and remains unable to do so as of the date hereof. Solely with respect to the June Pension Payment, each Primary Obligor is unable to make such Deferred Pension Payments as of the applicable Effective Date.

SECTION 3.05. Financial Condition . As of the Agreement Date, the Parent has furnished to the Funds its consolidated balance sheet and statements of income, stockholders equity and cash flows (a) as of and for the fiscal year ended December 31, 2008, reported on by KPMG LLP, independent public accountants, and (b) as of and for the fiscal quarter ended March 31, 2009. Such financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of the Parent and its consolidated subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year-end audit adjustments and the absence of footnotes in the case of the statements referred to in clause (b) above. As of the Agreement Date, the written projected financial information, dated as of May 29, 2009, delivered by the Obligors (or their advisors) to the CS Pension Fund and their advisors (the “Projections”) was prepared in good faith based upon assumptions believed to be reasonable by senior management at the time, it being recognized by the Funds and Agent that the Projections are not to be viewed as facts and that the actual results during the period or periods covered by such Projections may differ from the projected results and such differences may be material. Based on the Projections, as of the Agreement Date, the Obligors do not expect to be able to repay the Deferred Pension Payments on a date earlier than is required by this Agreement.

 

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SECTION 3.06. Covenants . The Obligors have performed all of the conditions precedent specified in Article V that are required to be performed by the Obligors hereunder prior to the date hereof.

ARTICLE IV

Representations and Warranties of the Funds

Each Fund severally represents and warrants to the Agent and each of the Obligors, as to itself, that:

SECTION 4.01. Authority and Enforceability . The Trustees of such Fund have full power, right and authority to enter into this Agreement in the name of and on behalf of such Fund and to perform its obligations under the terms of this Agreement. This Agreement has been duly executed and delivered by the Trustees of such Fund and constitutes the legal, valid and binding obligation of such Fund, enforceable against such Fund in accordance with its terms subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

SECTION 4.02. Acknowledgment . Except as expressly set forth herein or in the Fund Documents, each Fund acknowledges that no Obligor has made in connection with this Agreement, and is not making in this Agreement or any of the other Fund Documents, any representation or warranty as to the business, properties, condition (financial or otherwise), risks, results of operations, prospects or any other aspect of the operations of the Obligor or its subsidiaries. Each Fund also acknowledges that it has adequate information and has made its own independent investigation concerning the business, properties, condition (financial or otherwise), risks, results of operations and prospects of each Obligor and its subsidiaries taken as a whole to make an informed decision regarding its Payment Deferral.

ARTICLE V

Conditions Precedent

SECTION 5.01. Effective Date . The agreement of the Funds to allow deferral of the Deferred Pension Payments hereunder to such dates specified in Article II shall not become effective until the date on which each of the following conditions is satisfied (or waived):

(a) The Agent (or its counsel) and CS Pension Fund (or its counsel) shall have received from each Primary Obligor and, if applicable, each Guarantor either (i) a counterpart of this Agreement, the Guarantee (to the extent any such Guarantor is executing a Mortgage in favor of the Agent as of such date), if then required in connection with providing the First Priority Collateral, the Intercreditor Agreement and, to the extent then available, each Mortgage

 

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signed on behalf of such party or (ii) written evidence satisfactory to the Agent and the CS Pension Fund (which may include telecopy transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement, the Guarantee, the Intercreditor Agreement and each Mortgage, then available.

(b) With respect to the June Pension Payment, deferral of such payments pursuant to this Agreement by the applicable Fund shall be subject to (i) the Primary Obligors representation and warranty that such Primary Obligors are unable to make such Deferred Pension Payments as of the applicable Effective Dates and (ii) a determination by the Trustees of the such Fund that such deferral is consistent with their fiduciary obligations under ERISA.

(c) (i) The Agent shall have received payment for all invoiced fees and reasonable out-of-pocket expenses earned, due and payable on or before the Agreement Date, and (ii) the Funds shall have received payment for all invoiced reasonable out-of-pocket expenses due and payable on or prior to the Agreement Date.

ARTICLE VI

Affirmative Covenants

Until the Obligations shall have been paid in full (other than contingent obligations not due and owing), the Primary Obligors covenant and agree with the Agent and the Funds that:

SECTION 6.01. Conditions Subsequent .

(a) To the extent not completed on or before the Agreement Date, within 30 days of the Agreement Date (or 45 days in the case of requirements with respect to any First Priority Collateral located in the United Mexican States or such later date as agreed by the Majority Funds), the Obligors shall:

(i) execute and deliver the Collateral Documents necessary (as determined by CS Pension Fund) to provide the Agent, on behalf of itself and the Funds, a perfected first priority security interest (subject to Permitted Liens) in the real property set forth on Schedule 1.01(b);

(ii) deliver an opinion of counsel (which counsel shall be reasonably satisfactory to CS Pension Fund; provided that any counsel that provided an opinion to the Senior Administrative Agent in connection with the creation of Liens securing the Senior Credit Facility shall be deemed to be reasonably satisfactory to CS Pension Fund) in each state in which First Priority Collateral is located with respect to the enforceability of the form(s) of Mortgages to be recorded in such state, in each case in form and substance reasonably satisfactory to the CS Pension Fund;

(iii) deliver ALTA mortgagee title insurance policies (which may be in the form of mark-ups of title commitments executed and otherwise binding by and upon the applicable title insurance company, so long as the final clean copy of such policy is delivered to the Agent within a reasonable time thereafter) issued by Chicago Title Insurance Company or one or more

 

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title companies selected by the Obligors and reasonably satisfactory to CS Pension Fund with respect to each real property constituting First Priority Collateral in accordance with the terms of this Agreement (each, a “ First Priority Title Policy ”), in amounts not less than the Gross Book Value of such property insuring the Agent’s (on behalf of itself and the Funds) security interest in such real property subject only to Liens permitted pursuant to clauses (a) and (c) of the definition of “Permitted Liens” and other exceptions reasonably acceptable to CS Pension Fund; and

(iv) cause any Affiliate, who has not previously executed the Guarantee (or in the case of an Affiliate organized under the laws of the United Mexican States such other documentation required to provide the Agent, on behalf of the Funds, a perfected security interest in the First Priority Collateral owned by such Person), but is executing a Mortgage, to execute and deliver the Guarantee to the Agent, on behalf of the Funds.

(b) The Obligors shall, within 60 days (or such later date as agreed by the Majority Funds) of the later of the applicable Effective Date and the date such requisite lender consent is obtained:

(i) execute and deliver the Collateral Documents necessary to provide the Agent, on behalf of itself and the Funds, a perfected second priority security interest (subject to Permitted Liens and subordinate to Liens created under the Senior Credit Facility pursuant to the terms of the Intercreditor Agreement) in properties listed on Schedule 1.01(e); provided , that in no event shall the Obligors be required to provide the Agent, on behalf of itself and the Funds, a Lien on Second Priority Collateral which has an Adjusted Gross Book Value (as of such date) which exceeds the difference between (A) the outstanding Deferred Pension payments minus (B)(I) the Gross Book Value of the First Priority Collateral and (II) the Adjusted Gross Book Value of the then existing Second Priority Collateral as certified by the Obligors to the Agent;

(ii) deliver an opinion of counsel (which counsel shall be reasonably satisfactory to CS Pension Fund; provided that any counsel that provided an opinion to the Senior Administrative Agent in connection with the creation of Liens securing the Senior Credit Facility shall be deemed to be reasonably satisfactory to CS Pension Fund) in each state in which Second Priority Collateral is located with respect to the enforceability of the form(s) of Mortgages to be recorded in such state, in each case in form and substance reasonably satisfactory to CS Pension Fund; and

(iii) deliver ALTA mortgagee title insurance policies (which may be in the form of mark-ups of title commitments executed and otherwise binding by and upon the applicable title insurance company, so long as the final clean copy of such policy is delivered to the Agent within a reasonable time thereafter) issued by Chicago Title Insurance Company or one or more title companies selected by the Obligors and reasonably satisfactory to CS Pension Fund with respect to each real property constituting Second Priority Collateral in accordance with the terms of this Agreement (each, a “ Second Priority Title Policy ” and collectively with the First Priority Title Policies, the “ Title Policies ” or any of them a “ Title Policy ”), in amounts not less than the Gross Book Value of such properties insuring the Agent’s (on behalf of itself and the Funds) security interest in such real property subject only to Liens permitted pursuant to clauses (a) and (c) of the definition of “Permitted Liens” and other exceptions reasonably acceptable to CS Pension Fund.

 

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SECTION 6.02. Reporting and Notices . The Obligors shall provide the following reporting and notices to the Agent (for further distribution to the Funds) and CS Pension Fund:

(a) on or before the fifth Business Day of each fiscal month, the calculation of Liquidity in respect of each Business Day of the previous fiscal month via e-mail PDF (or other electronic format reasonably acceptable to CS Pension Fund) to the CS Pension Fund;

(b) promptly, but in any event no later than the seventh Business Day following receipt or delivery of the same, a copy of any notice of the occurrence of any Event of Default (as defined in the Senior Credit Facility) under the Senior Credit Facility;

(c) promptly, but in any event no later than the seventh Business Day following any Responsible Officer of the Obligors becoming aware thereof, written notice of any Default or Event of Default hereunder;

(d) promptly, written notice that the 13-Week Cash Flow Projections and related variance reports are not longer required to be delivered to the Senior Administrative Agent (and Agent and Fund may conclusively rely thereon until such time as the Primary Obligors may be required to resume delivery of such 13-Week Cash Flow Projections and related variance reports in accordance herewith);

(e) within 30 days after the end of each fiscal month (of each of the first two months in any fiscal quarter) of the Parent, the Parent’s unaudited consolidated balance sheet and related unaudited statements of operations and cash flows as of the end of and for such fiscal month and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, subject to normal year-end audit adjustments and the absence of footnotes;

(f) on or before the fifth Business Day of each fiscal month, commencing on the fifth business day of July 2009, projections of the weekly cash flows for the 13-week period commencing on the first day of such fiscal month (the “ 13-Week Cash Flow Projections ”) which (i) reflect the Parent’s and its Domestic Subsidiaries’ (as defined in the Senior Credit Facility) consolidated projected cash receipts and cash expenditures for their corporate and other operations and (ii) contain comments of management of the Company and, if then engaged, comments of the Parent’s Financial Advisor (as defined in the Senior Credit Facility); provided that, Primary Obligors only shall be obligated to provide such 13-Week Cash Flow Projection and commentary to the Agent and Funds so long as the Parent is required to deliver such 13-Week Cash Flow Projections and commentary to the Senior Administrative Agent; and

(g) on or before the fifth Business Day of each fiscal month commencing on the fifth Business Day of August 2009, to the extent that the Primary Obligors are providing the 13-Week Cash Flow Projection, a variance report reflecting on a line-item basis the actual disbursements and receipts for the previous calendar month and the percentage variance of such actual results from those projected for such previous calendar month on the most current 13-Week

 

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Cash Flow Projections delivered under the terms of this Agreement prior to such date; provided that, Primary Obligors only shall be obligated to provide such variance report to the Agent and Funds so long as the Parent is required to deliver such variance report to the Senior Administrative Agent.

SECTION 6.03. Financial Advisor . Each Primary Obligor will permit the financial advisor(s) retained by the Funds, upon reasonable prior notice, to visit and inspect its properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers, all at such reasonable times and as often as reasonably requested so long as such inspection does not unduly interfere with such Primary Obligor’s business. Subject to Section 11.01, such reasonable inspections and examinations by or on behalf of any Fund shall be at such Fund’s expense.

SECTION 6.04. Weekly Health and Welfare Payments . So long as Liquidity is greater than $200,000,000, the Obligors shall make weekly payments (estimated to be one week’s payment of health and welfare contributions) in advance of the due date for the payments in respect of the CS Health and Welfare Fund (which payments shall be credited against the actual payment due to the CS Health and Welfare Fund on the due date). Notwithstanding anything to the contrary contained herein, such payments shall be made directly to CS Health and Welfare Fund for its own account (and not to the Agent) by the Obligors.

SECTION 6.05. Maintenance of Properties; Insurance . The Obligors will, (a) keep and maintain all property material to the conduct of their business in good working order and condition (ordinary wear, tear, condemnation and casualty excepted), except in any case where the failure to do so could not reasonably be expected to result in a Material Adverse Effect and (b) maintain, with financially sound and reputable insurance companies (i) insurance in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar businesses operating in the same or similar locations; provided that each of the Obligors may self-insure to the same extent as other companies in similar businesses and owning similar properties in the same general areas in which the Obligors operate and (ii) all insurance required pursuant to the Collateral Documents. The Obligors will furnish to the Funds, promptly following the reasonable request of the Agent, on behalf of the Funds, information in reasonable detail as to the insurance so maintained. The Obligors shall deliver to the Agent and maintain endorsements to all “All Risk” physical damage insurance policies on all of the Collateral naming the Agent as lender loss payee. In the event that the Obligors at any time or times hereafter shall fail to obtain or maintain any of the policies or insurance required herein or to pay any premium in whole or in part relating thereto, then a Fund may, with the prior written consent of the Majority Funds (which shall not be granted if any other Fund has already obtained such insurance or the Obligors have cured the default), without waiving or releasing any obligations or resulting Default hereunder, at any time or times thereafter (but shall be under no obligation to do so) obtain and maintain such policies of insurance and pay such premiums and take any other action with respect thereto which such Fund deems advisable (with the prior consent of the Majority Funds) seven (7) days after notification to the Obligors of such intent. All sums so disbursed by the Funds shall constitute part of the Obligations, payable as provided in this Agreement. The Obligors will furnish to the Agent and the Funds prompt written notice of any casualty or other insured damage to any material portion of the Collateral or the commencement of any action or proceeding for the taking of any material portion of the Collateral or interest therein under power of eminent domain or by condemnation or similar proceeding.

 

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SECTION 6.06. Promissory Note . Promptly following reasonable request from a Fund, the applicable Primary Obligors shall provide such Fund a Promissory Note(s) with respect to the Deferred Pension Payments owed by such Primary Obligor to such Fund.

ARTICLE VII

Negative Covenants

SECTION 7.01. Obligors . Until the Obligations (other than contingent obligations not due and payable) hereunder shall have been paid in full, the Primary Obligors covenant and agree with the Agent and the Funds that:

(a) Asset Sales . No Obligor shall consummate any Asset Sale unless such Asset Sale is approved by the Majority Funds; provided , that such approval shall (i) not be unreasonably withheld, delayed or conditioned and (ii) be deemed automatically granted to the extent the cash consideration received in connection with any such Asset Sale at closing shall be equal to or greater than 100% of the Gross Book Value of the property subject to such Asset Sale. For the avoidance of doubt, to the extent that multiple assets are being sold in an Asset Sale or series of related Asset Sales, the percentage threshold referenced above shall be deemed satisfied so long as the aggregate cash consideration received at the closings of such properties pursuant to such Asset Sale(s) equals or exceeds 100% of the aggregate Gross Book Value of such properties.

(b) No More Favorable Terms . The Obligors shall not (i) provide collateral (other than the Collateral granted pursuant to this Agreement) securing obligations owed by any Obligor to any Teamster pension fund similarly situated to the Funds (including Teamster pensions funds not a party to this Agreement) or (ii) make payments in respect of pension contributions owed to any Teamster pension fund similarly situated to the Funds to the extent such Teamster pension fund does not execute the Deferral Agreement or a Joinder Agreement (other than payments approved by the Majority Funds (such approval not to be unreasonably withheld, delayed or conditioned)).

SECTION 7.02. Funds . Until the Obligations shall have been paid in full (other than contingent obligations not due and owing), unless an Event of Default has occurred and is continuing, each of the Funds covenant severally and agree with the Obligors that:

(a) Absent the continuance of an Event of Default, such Funds shall not deem any of the Obligations owed to it to be delinquent contributions to which Section 515 of ERISA applies.

(b) Absent the continuance of an Event of Default, neither such Funds, nor any trustee or trustees with respect to such Funds, nor any of their successors, agents or assigns shall bring any action or allow any action under applicable law (including, through enforcement of Section 515 of ERISA or based on liability under Section 412 of the Code) to be brought in its

 

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or their name to seek payment of the Obligations (or any portion thereof) owed to it against any of the Obligors or any of their ERISA Affiliates, nor shall any of these Persons bring any action or otherwise seek to recover any of the remedies under applicable law (including, liquidated damages, penalties and other costs, and those remedies specified in Section 502(g) of ERISA) with respect to the Obligations.

(c) Under no circumstances shall such Funds determine that the deferral of the Obligations owed to them hereunder, (i) constitutes with respect to the Obligors or any of their ERISA Affiliates (x) a complete withdrawal with respect to any Multiemployer Plan under Section 4203 of ERISA, (y) a partial withdrawal with respect to any Multiemployer Plan under Section 4205 of ERISA, or (ii) otherwise subjects the Obligors or any of their ERISA Affiliates to Withdrawal Liability.

Except as expressly provided in this Agreement to the contrary, the rights of the Funds to seek relief for delinquent contributions, and to assess and collect Withdrawal Liability, are preserved.

ARTICLE VIII

Events of Default

If any of the following events (each an “ Event of Default ”) shall occur and be continuing:

(a) any Primary Obligor shall fail to pay any payment in respect of any Deferred Payments when and as the same shall become due and payable pursuant to this Agreement, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise (including, prepayments required to be made pursuant to the terms and conditions of Section 2.03 ) and such failure shall continue unremedied for a period of five (5) Business Days;

(b) any representation or warranty made or deemed made by or on behalf of any Obligor in or in connection with this Agreement or any other Fund Document or any amendment or modification thereof or waiver thereunder, shall prove to have been incorrect in any material respect when made or deemed made;

(c) any Obligor, as applicable, shall fail to observe or perform any covenant, condition or agreement contained in Sections 6.01 or 7.01;

(d) any Obligor, as applicable, shall fail to observe or perform any covenant, condition or agreement contained in this Agreement or in any other Fund Document (other than those specified in clause (a), (b), (c), (e), (f) or (g) or (h) of this Article), and such failure shall continue unremedied for a period of 30 consecutive days after written notice thereof from the Agent to the Obligors (which notice will be given at the request of any Fund);

(e) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) bankruptcy, winding up, dissolution, liquidation, administration, moratorium, reorganization or other relief in respect of any Obligor or its debts, or of a

 

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substantial part of its assets, under any Federal, or state bankruptcy, insolvency, administrative, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, administrator, administrative receiver, trustee, custodian, sequestrator, conservator or similar official for any Obligor or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for 60 days or an order or decree approving or ordering any of the foregoing shall be entered;

(f) any Obligor shall (i) voluntarily commence any proceeding or file any petition seeking bankruptcy, winding up, dissolution (other than any dissolution to the extent the assets of such Obligor are transferred to another Obligor so long as all actions necessary to maintain the perfection of the Agent’s first-priority Lien on First Priority Collateral are taken), liquidation (other than any liquidation, to the extent the assets of such Obligor are transferred to another Obligor so long as all actions necessary to maintain the perfection of the Agent’s first-priority Lien on First Priority Collateral are taken), administration, moratorium, reorganization or other relief under any Federal or state bankruptcy, insolvency, administrative receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (e) of this Article, (iii) apply for or consent to the appointment of a receiver, administrator, administrative receiver, trustee, custodian, sequestrator, conservator or similar official for any Obligor or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, or (v) make a general assignment or arrangement for the benefit of creditors, or become unable or admit in writing its inability or fail generally to pay its debts as they become due;

(g) any event or condition occurs under the Senior Credit Facility that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of such obligations or any trustee or agent on its or their behalf to cause the obligations under the Senior Credit Facility to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity (in each case after giving effect to any cure or grace period, amendment or waiver); provided that (i) this clause (g) shall not apply to obligations that become due as a result of prepayments required pursuant to Section 2.12 of the Senior Credit Facility (or any similar provision in any extension, renewal, refinancing or replacement of the Senior Credit Facility) and (ii) an Event of Default under and as defined in the Senior Credit Facility (a “ Senior Credit Facility Event of Default ”) shall not in and of itself constitute an Event of Default under this clause until a period of thirty days has elapsed following notice of such Senior Credit Facility Event of Default from the Senior Administrative Agent or any lender under the Senior Credit Facility to Parent, or from Parent to such Senior Administrative Agent or any such lender under the Senior Credit Facility; or

(h) any Collateral Document shall for any reason to fail to create a valid and perfected first priority security interest in any First Priority Collateral with a Gross Book Value of $2,500,000 in the aggregate at any time or shall for any reason fail to create a valid and perfected second priority security interest in any Second Priority Collateral (if then applicable) with a Gross Book Value of $2,500,000 in the aggregate at any time purported to be covered thereby, in each case except as (i) permitted by the terms hereof or (ii) to extent such non-creation or non-perfection is a result of the action or inaction of the Agent;

 

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then, and in every such Event of Default, and at any time thereafter during the continuance of such Event of Default, any Fund, by notice to the Primary Obligors, may: declare the Obligations solely in respect of the Deferred Payments owed to such Fund then outstanding to be due and payable, and thereupon such Obligations so declared to be due and payable, together with all other Obligations accrued hereunder and due to such Fund, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Obligors to the extent permitted by applicable law. Upon the occurrence and during the continuance of an Event of Default, the Agent shall, at the request of the Majority Funds, exercise any rights and remedies provided to the Agent under the Fund Documents or at law or equity, including all remedies provided under the UCC with respect to the Collateral.

ARTICLE IX

The Agent

Each of the Funds hereby irrevocably appoints the Agent as its agent and authorizes the Agent to take such actions delegated to it hereby on its behalf, including execution of the other Fund Documents, and to exercise such powers as are delegated to the Agent by the terms hereof, together with such actions and powers as are reasonably incidental thereto.

The Agent shall not have any duties or obligations except those expressly set forth in the Fund Documents. Without limiting the generality of the foregoing,

(a) Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing,

(b) the Agent shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated by the Fund Documents that the Agent is required to exercise in writing as directed by the Majority Funds (or such other number or percentage of the Funds as shall be necessary under the circumstances as provided in Section 11.04 ), and

(c) except as expressly set forth in the Fund Documents, Agent shall not have any duty to disclose, or shall be liable for the failure to disclose, any information relating to the Obligors or any of their Subsidiaries that is communicated to or obtained by the Person serving as the Agent or any of its Affiliates in any capacity.

Without limiting the foregoing, the Agent shall not be required to act hereunder or to advance its own funds or otherwise incur any financial liability in the performance of its duties or the exercise of its rights hereunder and under any other agreements or documents to which it is a party, and shall in all cases be fully justified in failing or refusing to act hereunder unless it shall rec