RECEIVABLES PURCHASE AND SALE AGREEMENT
EXECUTION VERSION
This RECEIVABLES PURCHASE AND SALE AGREEMENT (as amended, restated, supplemented or otherwise modified from time to time,
this “Agreement”), dated as of July 19, 2019, is entered into by and among VOLT CONSULTING GROUP LIMITED (registered number 01739576) (“VCG”) and VOLT EUROPE LIMITED (registered number 03369051) (“VEL”),
each of whose registered office is at Volt House, 0 Xxxxxx Xxxx, Xxxxxxx, Xxxxxx, Xxxxxxx, XX0 0XX, VOLT INFORMATION SCIENCES, INC., a New York corporation (“Volt”),
and VOLT FUNDING II, LLC, a Delaware limited liability company (the “Buyer”). VCG and VEL each sometimes is referred to in this Agreement as an “Originator”.
BACKGROUND
1. The Buyer was formed on
January 5, 2018, as a special purpose limited liability company wholly owned directly by Volt (its sole member).
2. Each Originator is a
pre-existing operating company that is indirectly, wholly owned by Volt and that generates Receivables in the ordinary course of its business.
3. To finance its
respective operations, each Originator wishes to sell Receivables it originates (and the Related Rights) to the Buyer, and the Buyer is willing to purchase such Receivables (and the Related Rights) from each such Originator, on the terms and
subject to the conditions set forth herein.
4. The Originators and the
Buyer intend each such transaction to be a true sale of such Receivables (and Related Rights) by each Originator to the Buyer, with each such transaction thereby providing the Buyer with the full benefits of ownership of the Receivables so sold.
5. The Buyer intends to
pledge all of the Receivables (and the Related Rights) to be sold (or purported to be sold) to the Buyer under this Agreement to the Agent pursuant to the RLSA, and in the RLSA the Buyer is engaging Volt to act as the servicer thereunder. Pursuant
to that certain Sub-Servicing Agreement, dated as of the date hereof, among VEL, VCG, Volt, the Agent and the Buyer, Volt is engaging VCG and VEL to act as sub-servicers thereunder.
6. The parties hereto are
entering into this Agreement in furtherance of the foregoing.
NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:
ARTICLE I
DEFINITIONS
SECTION 1.1 RLSA Definition.
(a) As used in this
Agreement, “RLSA” means that certain Amended and Restated Receivables Loan and Security Agreement, dated as of the date hereof, among the Buyer (as
Borrower), Volt (as Servicer), the Persons from time to time party thereto as Lenders and LC Participants, Autobahn Funding Company LLC (as Initial LC Issuer), DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main, New York Branch (“DZ Bank”) (as Final LC Issuer), and DZ Bank (as Agent).
(b) References in this
Agreement to the RLSA include such agreement as amended, restated, supplemented or otherwise modified from time to time.
(c) Unless otherwise
indicated in this Agreement, capitalised terms used and not otherwise defined in this Agreement are used as defined in the RLSA.
(d) The Buyer hereby
covenants and agrees not to consent to any amendment, restatement, supplement or other modification of or to the RLSA, in each case which may impact an Originator, directly or indirectly, without the consent of such Originator.
SECTION 1.2 Other Definitions and Construction.
(a) All accounting terms not
specially defined herein shall be construed in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) (“UK GAAP”).
All terms used in Article 9 of the UCC of the State of New York, and not specifically defined herein, are used in Sections 2.5(d), 5.4, 6.3 and 7.3 as defined in such Article 9. All hourly references herein shall refer to London time.
(b) “Insolvency Official” means, in respect of any company, a liquidator, provisional liquidator, administrator (whether appointed by the court or otherwise), administrative receiver,
receiver or manager, nominee, supervisor, trustee in bankruptcy, conservator, guardian or other similar official in respect of such company or in respect of all (or substantially all) of the company’s assets or in respect of any arrangement or
composition with creditors or any equivalent or analogous officer under the law of any jurisdiction.
(c) “Insolvency Proceeding” means the winding-up, dissolution, company voluntary arrangement or administration of a company or corporation and shall be construed so as to include any
equivalent or analogous proceedings under the law of the jurisdiction in which such company or corporation is incorporated or of any jurisdiction in which such company or corporation carries on business including the seeking of liquidation,
winding-up, reorganisation, dissolution, administration, arrangement, adjustment, protection or relief from creditors or the appointment of an Insolvency Official.
(d) “Payment Date” means (i) the Amendment Effective Date and (ii) each London Business Day thereafter
that the Originators are open for business.
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(e) “Purchase and Sale Termination Date” means the earlier to occur of: (a) the date the Purchase Facility is terminated pursuant to Section 9.2(a); and (b) the date of the final
payment to the Buyer under RLSA Section 6.07.
(f) For purposes of this
Agreement (and unless the context otherwise requires): (i) the words “hereof,” “herein” and “hereunder” and words of similar import refer to this Agreement as a whole and not to any particular provision of this Agreement; (ii) references to any
Article, Section, Subsection, Schedule or Exhibit are references to those of or to this Agreement; (iii) the term “including” means “including without limitation” (whether or not so stated in the particular instance); (iv) the Article, Section and
other headings in this Agreement are for purposes of reference only and shall not otherwise affect the meaning or interpretation of any provision hereof; (v) unless otherwise provided, in the calculation of time from a specified date to a later
specified date, the term “from” means “from and including,” and the terms “to” and “until” each means “to but excluding”; (vi) terms in one gender include the parallel terms in the neuter and opposite gender; (vii) the term “or” is not exclusive;
and (viii) references to any asset or to any property, and like references, mean all applicable property (whether personalty or realty or mixed, and whether tangible or intangible).
(e) For purposes of this
Agreement, a “Material Adverse Effect” means a material adverse effect (as to any referenced Person) on any of the following: (i) the condition (financial or
otherwise), business, operations, results of operations, or properties of such referenced Person or the ability of such referenced Person to carry out its obligations under this Agreement (and any other Basic Document to which such referenced
Person is a party); (ii) the validity, or enforceability by or against such referenced Person, of this Agreement or any other Basic Document; (iii) the validity, enforceability, collectability or value of any material portion of the
then-outstanding Receivables owned or sold (or purported to be sold) by such referenced Person pursuant to this Agreement prior to the Purchase and Sale Termination Date; (iv) the status, perfection, enforceability or priority of the Agent’s
security interest in the Receivables owned or sold (or purported to be sold) by such referenced Person pursuant to this Agreement prior to the Purchase and Sale Termination Date; or (v) the rights and remedies of any Affected Party under the Basic
Documents related to, or associated with its respective interest in, the Receivables owned or sold (or purported to be sold) by such referenced Person pursuant to this Agreement prior to the Purchase and Sale Termination Date.
ARTICLE II
AGREEMENT TO PURCHASE AND SELL
SECTION 2.1 Agreement to Purchase and Sell.
(a) On the terms and subject
to the conditions set forth in this Agreement, each Originator, severally and for itself, agrees to sell and assign (with full title guarantee) to the Buyer, and the Buyer agrees to purchase from such Originator, from time to time on or after the
Amendment Effective Date, but before the Purchase and Sale Termination Date, all of such Originator’s right, title and interest in, to and under:
(i) each
Receivable of such Originator (other than any Receivable with respect to an Obligor listed on Schedule VI) that existed and was owing to such Originator at the opening of such Originator’s business on the Amendment Effective Date;
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(ii) each
Receivable (other than any Receivable with respect to an Obligor listed on Schedule VI) generated by such Originator from and including the Amendment Effective Date to but excluding the Purchase and Sale Termination Date;
(iii) all
of such Originator’s interest in any goods (including returned goods), and documentation of title evidencing the shipment or storage of any goods (including returned goods), the sale of which gave rise to such Receivable;
(iv) all
other security interests or liens and property subject thereto from time to time purporting to secure payment of such Receivable, whether pursuant to the Contract related to such Receivable or otherwise, together with all UCC financing statements
or similar filings relating thereto;
(v) solely
to the extent applicable to such Receivable, all of such Originator’s rights, interests and claims under the related Contracts and all guaranties, indemnities, insurance and other agreements (including the related Contracts) or arrangements of
whatever character from time to time supporting or securing payment of such Receivable or otherwise relating to such Receivable, whether pursuant to the Contract related to such Receivable or otherwise;
(vi) all
books and records of such Originator to the extent related to any of the foregoing; and
(vii) all
Collections and other proceeds (including, for the avoidance of doubt, within the meaning of Article 9 of the UCC) of any of the foregoing, including all funds which are (x) received by such Originator, the Buyer, the Servicer or any Sub-Servicer
from or on behalf of the Obligors in payment of any amounts owed (including invoice price, finance charges, interest and all other charges) in respect of any of the above Receivables, or (y) applied to such amounts owed by the Obligors (including
any insurance payments that such Originator, the Buyer, the Servicer or any Sub-Servicer applies in the ordinary course of its business to amounts owed in respect of any of the above Receivables, and net proceeds of sale or other disposition of
repossessed goods or other collateral or property of the Obligors in respect of any of the above Receivables or any other parties directly or indirectly liable for payment of such Receivables).
(b) In addition, on the terms
and subject to the conditions set forth in this Agreement, each Originator, severally and for itself, agrees to sell to the Buyer, and the Buyer agrees to purchase from such Originator, on the Amendment Effective Date (such Originator having
acquired the same from Volt Funding Corp., a Delaware corporation (“Old Volt Funding”) on the Amendment Effective Date), all of such Originator’s right,
title and interest in, to and under any and all funds (whether available or unavailable) then held on deposit in the UK Lockbox Accounts (which bank accounts are being assigned from Old Volt Funding to the Buyer on or before the Amendment Effective
Date). Such funds are referred to as the “Amendment Effective Date Assigned Funds.”
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(c) All purchases hereunder
shall be made without recourse but shall be made pursuant to (and in reliance upon) the representations, warranties and covenants of the Originators set forth in (or deemed made under) this Agreement. No obligation or liability to any Obligor on
any Receivable is intended to be assumed by the Buyer hereunder, and any such assumption is expressly disclaimed. The property, proceeds and rights described in clauses (iii) through (vii) of Subsection (a) above are referred to in this Agreement
as the “Related Rights.” The agreement under Subsection (a) above for the purchase and sale of the referenced Receivables and Related Rights is referred to
in this Agreement as the “Purchase Facility.”
(d) On or prior to each
Payment Date, each applicable Originator shall deliver to the Servicer (on behalf of the Buyer and any assignee thereof) each document and other agreement then in effect relating to the ownership, purchase, servicing or processing of, and any other
instruments and chattel paper (as each term is defined in the UCC) representing or evidencing, any of the Receivables (and the Related Rights) being sold to the Buyer in accordance with Section 2.2 on such Payment Date. If any such document,
agreement, instrument or chattel paper (as each term is defined in the UCC) shall come into effect subsequent to such Payment Date, such Originator shall deliver the same to the Servicer (on behalf of the Buyer and any assignee thereof) as promptly
as practicable thereafter.
SECTION 2.2 Timing of Purchases.
(a) Amendment Effective Date Purchases. Effective on the Amendment Effective Date, each Originator hereby sells and assigns to the Buyer, and the Buyer hereby purchases from such
Originator, such Originator’s entire right, title and interest in, to and under: (i) each Receivable described in clause (i) of Section 2.1(a); (ii) all Related Rights with respect thereto; and (iii) the Amendment Effective Date Assigned Funds.
(b) Subsequent Purchases. From and after the Amendment Effective Date, until the Purchase and Sale Termination Date, each Originator hereby agrees that all of such Originator’s full
beneficial title to and right and interest in, and all other property rights, claims, interest and benefits (both present and future) held by it in respect of each Receivable described in clause (ii) of Section 2.1(a), and the Related Rights with
respect thereto, shall be, and shall be deemed to have been, hereby sold and assigned by such Originator to the Buyer immediately (and without further action) upon the creation of such Receivable.
SECTION 2.3 Consideration for Purchases.
On the terms and subject to the conditions set forth in this Agreement, the Buyer agrees to make Purchase Price payments
to the Originators in accordance with Article IV.
SECTION 2.4 Transfer of Records.
(a) Each sale (or purported
sale) of Receivables hereunder shall include the transfer to the Servicer on behalf of the Buyer and any assignee thereof of all of the applicable Originator’s right, title and interest in and to the records relating to such Receivables (and the
Related Rights).
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(b) The applicable Originator
shall take such actions reasonably requested from time to time by the Buyer or the Servicer that may be necessary or appropriate to ensure that the Servicer (on behalf of the Buyer and any assignee thereof) has an enforceable ownership interest in
such Originator’s records relating to the Receivables (and the Related Rights) sold (or purported to be sold) to it hereunder.
(c) In recognition of the
applicable Originator’s need to have access to the records transferred to the Servicer on behalf of the Buyer and any assignee thereof hereunder, the Servicer hereby grants to such Originator an irrevocable licence to access such records in
connection with any activity arising in the ordinary course of such Originator’s business, provided that (i) such Originator shall not disrupt or otherwise materially interfere with the Servicer’s use of and access to such records during such
licence period and (ii) such Originator consents to the assignment and delivery of the records (including any information contained therein relating to such Originator or its operations) to the Buyer and any assignee or transferee thereof provided
they agree to hold such records confidential.
SECTION 2.5 Intention of the Parties.
(a) It is the express intent
of each Originator and the Buyer that each sale (or purported sale) by such Originator to the Buyer pursuant to this Agreement of Receivables, and all Related Rights, be construed as a valid sale and absolute assignment (without recourse, except as
provided herein) of such Receivables and Related Rights by such Originator to the Buyer and that the right, title and interest in and to such Receivables and Related Rights to be sold (or purported to be sold) to the Buyer be prior to the rights of
and enforceable against all other Persons (including lien creditors, secured lenders and purchasers) now or at any time hereafter claiming through such Originator.
(b) [Deleted.]
(c) The express intent of
each Originator and the Buyer as described in Subsection (a) above with respect to the Receivables and Related Rights shall apply with equal effect with respect to the assignment of the Amendment Effective Date Assigned Funds.
(d) It is the express intent
of each Originator and the Buyer that each sale (or purported sale) by such Originator to the Buyer pursuant to this Agreement of Receivables, and all Related Rights, be construed as a perfected (within the meaning of Article 9 of the UCC) sale of
such Receivables and Related Rights by such Originator to the Buyer.
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ARTICLE III
PURCHASE REPORT; CALCULATION OF PURCHASE PRICE
SECTION 3.1 Purchase Report.
On the Amendment Effective Date (or within one Business Day thereafter), and on each Report Date, the Servicer shall
deliver a report (each such report being herein called a “Purchase Report”) to the Buyer, each Originator, the Agent (as the Buyer’s assignee) and the
Administrator (to the extent involved in the generation of such report). The Purchase Report: (x) shall include all information required for the Buyer and Servicer to comply with RLSA Section 5.02(a)(i); (y) shall detail, among other things: (i)
Receivables purchased by the Buyer from each Originator on the Amendment Effective Date (in the case of the Purchase Report to be delivered with respect to the Amendment Effective Date); (ii) Receivables purchased by the Buyer from each Originator
during the Fiscal Month immediately preceding such Report Date (in the case of each subsequent Purchase Report); and (iii) the calculations of reductions of the Purchase Price for any Receivables as provided in Section 4.5; and (z) otherwise shall
be in form and substance reasonably acceptable to the parties hereto.
SECTION 3.2 Calculation of Purchase Price.
(a) The “Purchase Price” to be paid to each Originator in accordance with the terms of Article IV for the Receivables and the Related Rights that are purchased hereunder
from such Originator shall be determined in accordance with the following formula:
| PP | = | OB – [OB x FMVD] |
where:
| PP | = | Purchase Price for each Receivable, as calculated on the relevant Payment Date. |
| OB | = | The Outstanding Balance of such Receivable on the relevant Payment Date. |
| FMVD | = | Fair Market Value Discount, as measured on the relevant Payment Date. |
As used herein, “Fair Market Value Discount” means
an amount equal to the quotient (expressed as a percentage) of: (a) one; divided by (b) the sum of (i) one, plus (ii) the product of (A) the Prime Rate on such Payment Date, times (B) a fraction, the numerator of which is the Days’ Sales
Outstanding (calculated as of the last day of the Fiscal Month immediately preceding such Payment Date) and the denominator of which is 365 or 366, as applicable.
(b) The purchase price to be
paid by the Buyer for the Amendment Effective Date Assigned Funds assigned by an Originator shall be equal to the total Reserve Currency amount thereof. Such Originator shall promptly reimburse the Buyer in the event any Amendment Effective Date
Assigned Funds that were assigned subject to collection shall fail to be collected.
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ARTICLE IV
PAYMENT OF PURCHASE PRICE
SECTION 4.1 Initial Purchase Price Payment.
(a) On the terms and
subject to the conditions set forth in this Agreement, the Buyer agrees to pay to each Originator the Purchase Price for the purchase to be made from such Originator on the Amendment Effective Date in accordance with Section 2.2(a)(i) and (ii): (i)
to the extent the Buyer has cash available therefor (and such payment is not prohibited by the RLSA), in cash (in an amount to be agreed between the Buyer and such Originator and set forth in the initial Purchase Report); and (ii) the remainder by
issuing a subordinated promissory note (in the form of Exhibit A) to such Originator (each such promissory note, as it may be amended, supplemented, endorsed or otherwise modified from time to time, together with all promissory notes issued from
time to time in substitution therefor or renewal thereof, an “RPSA Subordinated Note”) with an initial principal amount equal to that remainder.
(b) On the terms and
subject to the conditions set forth in this Agreement, the Buyer agrees to pay to each Originator the purchase price for the purchase of Amendment Effective Date Assigned Funds to be made from such Originator on the Amendment Effective Date in
accordance with Section 2.2(a)(iii) by addition to the principal amount then to be outstanding under such Originator’s RPSA Subordinated Note.
(c) If precise information is
not available on the Amendment Effective Date, the payments under this Section 4.1 may be made on a provisional basis, subject to reconciliation and true-up on the immediately following London Business Day.
SECTION 4.2 Subsequent Purchase Price Payments.
(a) On each Payment Date
subsequent to the Amendment Effective Date, on the terms and subject to the conditions set forth in this Agreement, the Buyer shall pay to each Originator the Purchase Price for the Receivables and the Related Rights generated by such Originator on
and since the immediately preceding Payment Date and sold to the Buyer in accordance with Section 2.2(b), as follows:
(i) [deleted;]
(ii) in
cash, to the extent the Buyer has cash available therefor (and such payment is not prohibited under the RLSA); and
(iii) to
the extent any portion of the Purchase Price remains unpaid after giving effect to the transactions contemplated by clause (ii) above, by an automatic increase in the principal amount outstanding under such Originator’s RPSA Subordinated Note by an
amount equal to such unpaid portion.
(b) [Deleted.]
(c) If, on any Payment
Date, amounts are owed to more than one Originator, then the Buyer shall make any such cash payments among the Originators in such a way as to minimise, to the greatest extent practicable, the respective principal amounts outstanding under the RPSA
Subordinated Notes.
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(d) If precise information
is not available on a Payment Date, the payment under Subsection (a) above may be made on a provisional basis, subject to reconciliation and true-up on the next succeeding London Business Day.
SECTION 4.3 Payments Deemed Made.
(a) The issuance of an RPSA
Subordinated Note to an Originator, and any subsequent increase in the principal amount outstanding thereunder, shall constitute an advance from the Originator to the Buyer to finance the concurrent payment of a corresponding amount of Purchase
Price with the proceeds of such advance.
(b) [Deleted.]
(c) All amounts paid by the
Buyer to any Originator and to be applied toward the RPSA Subordinated Note of such Originator shall be allocated first to the payment of accrued and unpaid interest on the RPSA Subordinated Note of such Originator and second to the repayment of
the principal outstanding on the RPSA Subordinated Note of such Originator to the extent of such outstanding principal thereof as of the date of such payment, before such amounts may be allocated for any other purpose. The Servicer shall make all
appropriate recordkeeping entries with respect to each RPSA Subordinated Note to reflect the foregoing payments and payments, increases and reductions made pursuant to this Agreement, and the Servicer’s books and records shall constitute rebuttable
presumptive evidence of the principal amount of, and accrued interest on, each RPSA Subordinated Note at any time. Each Originator hereby irrevocably authorises the Servicer to xxxx the RPSA Subordinated Note of such respective Originator
“CANCELED” and to return such RPSA Subordinated Notes to the Buyer upon the final payment thereof after the occurrence of the Purchase and Sale Termination Date.
SECTION 4.4 [Deleted].
SECTION 4.5 Settlement as to Specific Receivables and Dilution.
(a) If, (i) on the day of
purchase of any Receivable from an Originator hereunder, any of the representations or warranties set forth in Subsections (p), (t) or (x) of Section 6.1 are not true with respect to such Receivable or (ii) as a result of any action or inaction
(other than solely as a result of the failure to collect such Receivable due to a discharge in any Insolvency Proceeding or other credit-related reasons with respect to the relevant Obligor) of such Originator, on any subsequent day, any of such
representations or warranties set forth in any of those Subsections is no longer true with respect to such Receivable, then the Purchase Price for such Receivable shall be reduced by an amount equal to the Outstanding Balance of such Receivable and
shall be accounted to such Originator as provided in Subsection (c) below. If the Buyer thereafter receives payment on account of Collections due with respect to such Receivable, then the amount of such payment (not exceeding the amount of the
Purchase Price adjustment made under the preceding sentence) shall constitute a Purchase Price adjustment for the benefit of such Originator and shall be paid by the Buyer in the manner provided in Section 4.2(a) as though applicable thereto.
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(b) If, on any day, the
Outstanding Balance of any Receivable sold (or purported to be sold) by an Originator hereunder is either (i) reduced or cancelled as a result of (A) any defective, rejected or returned goods or services, any cash or other discount, or any failure
by such Originator to deliver any goods or perform any services or otherwise perform under the underlying Contract or invoice, (B) any change in or cancellation of any of the terms of such Contract or invoice or any other adjustment requested by an
Originator (it being understood and agreed that the Originators have no right to effect the same with respect to any Receivable upon the sale of such Receivable hereunder) which reduces the amount payable by the Obligor on the related Receivable,
(C) any rebates, warranties, allowances or charge-backs or (D) any setoff or credit in respect of any claim by the Obligor thereof (whether such claim arises out of the same or a related transaction or an unrelated transaction), or (ii) subject to
any specific dispute, offset, counterclaim or defence whatsoever (except the discharge in an Insolvency Proceeding of the Obligor thereof), then the Purchase Price with respect to such Receivable shall be reduced by the amount of such net reduction
or dispute and shall be accounted to such Originator as provided in Subsection (c) below.
(c) Any reduction in the
Purchase Price of any Receivable pursuant to Subsections (a) or (b) above shall be applied as a credit for the account of the Buyer against the Purchase Price of Receivables subsequently purchased by the Buyer from such Originator hereunder; provided, however, that if there have been no purchases of
Receivables from such Originator (or insufficiently large purchases of Receivables) to create a Purchase Price sufficient to so apply such credit against, the amount of such credit:
(i) to the extent of any
outstanding principal balance under the RPSA Subordinated Note payable to such Originator, shall be deemed to be a payment under, and shall be deducted from the principal amount outstanding under, the RPSA Subordinated Note payable to such
Originator; and
(ii) after making any
deduction and/or reduction pursuant to clause (i) above, shall be paid in cash to the Buyer by such Originator in the manner and for application as described in the following proviso;
provided, further, that at any time so required under the RLSA (and, in any event, on or after the Purchase and Sale Termination Date), the amount of any such credit shall be paid by such
Originator to the Buyer in cash by deposit of immediately available funds into the UK Lockbox Account designated for such Originator for application to the same extent as if Collections of the applicable Receivable in such amount had actually been
received on such date.
SECTION 4.6 Direction as to VCG Payments.
Anything in this Agreement to the contrary notwithstanding, VEL and VCG hereby direct that any and all payments to be made
by the Buyer to VCG under this Agreement or under the RPSA Subordinated Note payable to VCG be paid to VEL for the benefit of VCG, unless and to the extent VCG prospectively directs, from time to time by notice (which need not be written notice) to
the Buyer, that any or all such payments be made to VCG or to another Originator.
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ARTICLE V
CONDITIONS OF PURCHASES; ADDITIONAL ORIGINATORS
SECTION 5.1 Conditions Precedent to Initial Purchases.
The initial purchases hereunder on the Amendment Effective Date shall be conditional upon the Buyer and the Agent (as the
Buyer’s assignee) having received, on or before the Amendment Effective Date, the following, each (unless otherwise indicated) dated the Amendment Effective Date, and each in form and substance satisfactory to the Buyer and the Agent (as the
Buyer’s assignee):
(a) a copy of the resolutions
of the board of directors of each Originator authorising the execution and delivery of this Agreement and the other Basic Documents to be executed and delivered by such Originator and approving the transactions contemplated hereby and thereby,
certified by a duly authorised signatory of such Originator;
(b) [deleted];
(c) a certificate of a duly
authorised signatory of each Originator certifying the names and true signatures of the officers authorised on such Originator’s behalf to sign this Agreement and the other Basic Documents to be executed and delivered by such Originator (on which
certificate the Servicer, the Buyer and the Agent (as the Buyer’s assignee) may conclusively rely until such time as the Servicer, the Buyer and the Agent (as the Buyer’s assignee) shall receive from such Originator a revised certificate meeting
the requirements of this clause (c));
(d) the certificate of
incorporation of each Originator (as amended to date), duly certified by the Secretary of State (or similar official) of the jurisdiction of such Originator’s organisation as of a recent date, together with a copy of the bylaws of such Originator
as amended to date, each duly certified by a duly authorised signatory of such Originator;
(e) [deleted];
(f) [deleted];
(g) favourable opinions of
counsel to the Originators, in form and substance reasonably satisfactory to the Buyer and the Agent (as the Buyer’s assignee);
(h) a copy of an RPSA
Subordinated Note in favour of each Originator, each duly executed by the Buyer;
(i) evidence (A) of the
execution and delivery by each of the parties thereto of each of the other Basic Documents to be executed and delivered by it in connection herewith and (B) that each of the conditions precedent to the execution, delivery and effectiveness of such
other Basic Documents has been satisfied to the Buyer’s and the Agent’s (as the Buyer’s assignee) satisfaction;
(j) [deleted;]
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(k) a proper certificate of
non-crystallisation, dated the Amendment Effective Date and signed by a duly authorised officer, of each relevant floating charge holder certifying that no events have happened and that no action has been taken whereby such floating charge has
crystallised;
(l) certified true copies of
such authorisations, consents and approvals referred to in the legal opinions delivered in accordance with Subsection (g) above; and
(m) an executed power of
attorney of each Originator in the form of Schedule V.
SECTION 5.2 Certification as to Representations and Warranties.
(a) Each Originator, by
accepting the Purchase Price related to each purchase of Receivables generated by such Originator, shall be deemed to have certified that the representations and warranties of such Originator contained in Article VI, as from time to time amended in
accordance with the terms hereof, and each of the representations and warranties set forth in the RLSA concerning such Originator or the Receivables sold by such Originator under this Agreement, are true and correct in all material respects (unless
such representation or warranty contains a materiality qualification and, in such case, such representation and warranty shall be true and correct as made) on and as of such day, with the same effect as though made on and as of such day (except for
representations and warranties which apply to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (unless such representation or warranty contains a materiality qualification and, in
such case, such representation and warranty shall be true and correct as made) as of such earlier date).
(b) The representations
referenced in the immediately preceding paragraph shall be continuing and shall remain in full force and effect until the date of the final payment to the Buyer under RLSA Section 6.07.
SECTION 5.3 Additional Originators.
Additional Persons may be added as Originators hereunder, with the prior written consent of the Buyer and the Agent (as
the Buyer’s assignee), which consents may be granted or withheld in their sole discretion (any such Person so added, an “Additional Originator”); provided, that the following conditions are satisfied or waived in writing by the Agent (as the Buyer’s assignee) on or before the date of such addition:
(a) the Servicer shall have
given the Buyer and the Agent (as the Buyer’s assignee) prior written notice of such proposed addition and the identity of the proposed Additional Originator and shall have provided such other information with respect to such proposed addition as
the Buyer or the Agent (as the Buyer’s assignee) may require;
(b) such proposed Additional
Originator shall have executed and delivered to the Buyer and the Agent (as the Buyer’s assignee) a Joinder Agreement in such form as the Buyer and the Agent (as the Buyer’s assignee) reasonably may require (each such Joinder Agreement, a “UK Joinder Agreement”);
(c) such proposed Additional
Originator shall have delivered to the Buyer and the Agent (as the Buyer’s assignee) each of the documents with respect to such Originator described in Section 5.1, in each case in form and substance satisfactory to the Buyer and the Agent (as the
Buyer’s assignee); and
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(d) no Event of Default,
Potential Event of Default or Amortization Event shall have occurred and be continuing.
Section 5.4 US Ownership Filings.
The initial purchases hereunder on the Amendment Effective Date shall be further conditional upon the Buyer and the Agent
(as the Buyer’s assignee) having received, on or before the Amendment Effective Date, the following, each (unless otherwise indicated) dated the Amendment Effective Date, and each in form and substance satisfactory to the Buyer and the Agent (as
the Buyer’s assignee):
(i) proper
financing statements (Form UCC1) that have been duly authorised and name each Originator as the debtor/seller and the Buyer as the buyer/assignor (and the Agent, for the benefit of the Lenders, as secured party/assignee) of the Receivables
generated by such Originator as may be necessary or, in the Buyer’s or the Agent’s opinion, desirable under the UCC of all appropriate jurisdictions to perfect the Buyer’s ownership interest in such Receivables and the Related Rights in which an
ownership interest has been assigned to the Buyer hereunder;
(ii) a written report of the result of UCC and such other
searches conducted against such Persons, in such names, and in such jurisdictions as the Buyer or the Agent (as the Buyer’s assignee) reasonably may require.
ARTICLE VI
REPRESENTATIONS AND WARRANTIES OF THE ORIGINATORS
SECTION 6.1 Representations and Warranties.
In order to induce the Buyer to enter into this Agreement and to make purchases hereunder, as described in Section 5.2,
each Originator hereby represents and warrants with respect to itself that each representation and warranty contained in the RLSA concerning such Originator or the Receivables sold by such Originator hereunder is true and correct, and hereby makes
the further representations and warranties set forth in this Section 6.1:
(a) Incorporation and Good Standing. Such Originator is duly incorporated with limited liability and validly existing under English law and has full power and authority under the
documents which contain or establish its constitution and under applicable law to own its property and to conduct its business as such property is currently owned and such business is currently conducted.
(b) Due Qualification. Such Originator is duly qualified to do business, is in good standing as a foreign entity and has obtained all necessary licences and approvals in all
jurisdictions in which the conduct of its business requires such qualification, licences or approvals, except where the failure to be so qualified would not reasonably be expected to have a Material Adverse Effect with respect to such Originator or
the Buyer.
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(c) Power and Authority; Due Authorisation. Such Originator has all necessary power and authority to (A) execute and deliver this Agreement and the other Basic Documents to which it
is a party, (B) perform its obligations under this Agreement and the other Basic Documents to which it is a party and (C) convey an absolute true sale of the Receivables and the Related Rights to the Buyer on the terms and subject to the conditions
herein provided. Such Originator has duly authorised by all necessary action such conveyance and the execution, delivery and performance of, and the consummation of the transactions provided for in, this Agreement and the other Basic Documents to
which such Originator is a party.
(d) Binding Obligations. This Agreement and each of the other Basic Documents to which such Originator is a party constitute legal, valid and binding obligations of such Originator,
enforceable against such Originator in accordance with their respective terms, except as such enforceability may be limited as described in the transaction legal opinions delivered by Xxxxxxx Xxxxxx on the Amendment Effective Date. Such
Originator’s financial obligations hereunder and thereunder are direct, unconditional and general obligations which rank equally with all its other unsecured obligations and liabilities, present or future, actual or contingent, save for unsecured
obligations and liabilities accorded preference over its other unsecured obligations and liabilities pursuant to any provision under English law.
(e) No Conflict or Violation. The execution, delivery and performance of, and the consummation of the transactions contemplated by, this Agreement and the other Basic Documents to
which such Originator is a party, and the fulfilment of the terms hereof and thereof, will not: (i) conflict with, result in any breach of any of the terms or provisions of, or constitute (with or without notice or lapse of time or both) a default
under the documents which contain or establish the constitution of such Originator or any indenture, agreement, mortgage, deed of trust, bond or other instrument or obligation to which such Originator is a party or by which such Originator or any
of its property is bound or affected (including the Contracts related to the Receivables originated by such Originator and to be sold (or purposed to be sold) by such Originator hereunder); (ii) result in the creation or imposition of any Adverse
Claim upon any of the Receivables or the Related Rights pursuant to the terms of any such indenture, agreement, mortgage, deed of trust, or other instrument (other than this Agreement and the other Basic Documents); or (iii) conflict with or
violate any applicable law, statute, decree, rule, regulation or licence to which it or any of its assets or revenues is subject or of any order, judgment, injunction, decree, resolution, determination or award of any court or any judicial,
administrative or governmental authority or organisation which applies to it or any of its assets or revenues.
(f) Litigation and Other Proceedings. (i) There is no action, suit, proceeding or investigation pending or, to the best knowledge of such Originator, threatened, against such
Originator before any Governmental Authority and (ii) such Originator is not subject to any order, judgment, decree, injunction, stipulation or consent order of or with any Governmental Authority that, in the case of either of the foregoing clauses
(i) and (ii): (A) asserts the invalidity of this Agreement or any other Basic Document; (B) seeks to prevent the sale of any Receivable or Related Right by such Originator to the Buyer, the ownership or acquisition by the Buyer of any Receivables
or Related Right or the consummation of any of the transactions contemplated by this Agreement or any other Basic Document; (C) seeks any determination or ruling that could materially and adversely affect the performance by such Originator of its
obligations under, or the validity or enforceability of, this Agreement or any other Basic Document; or (D) individually or in the aggregate for all such actions, suits, proceedings and investigations could reasonably be expected to have a Material
Adverse Effect with respect to such Originator or the Buyer.
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(g) No Consents. Except where the failure to obtain or make such authorisation, consent, order, approval or action could not reasonably be expected to have a Material Adverse Effect
with respect to such Originator or the Buyer, all consents of any other party (including of any Obligor with respect to any Receivable to be sold (or purported to be sold) by such Originator hereunder), and all authorisations, consents, orders and
approvals of, or other actions by, any Governmental Authority, that are required to be obtained by such Originator in connection with the sale of the Receivables and Related Rights to the Buyer hereunder or the due execution, delivery and
performance by such Originator of this Agreement or any other Basic Document to which it is a party and the consummation by such Originator of the transactions contemplated by this Agreement and the other Basic Documents to which it is a party have
been obtained or made and are in full force and effect.
(h) Margin Regulations. Neither such Originator nor any of its Affiliates is engaged, principally or as one of its important activities, in the business of extending credit for the
purpose of purchasing or carrying margin stock (within the meanings of Regulations T, U and X of the Board of Governors of the Federal Reserve System). No proceeds of any sale (or purported sale) of Receivables hereunder will be used by such
Originator, directly or indirectly, to purchase or carry any margin stock (other than repurchases by Volt from time to time of its outstanding common stock).
(i) Taxes. Such Originator has (i) timely filed all tax returns required to be filed by it and (ii) paid, or caused to be paid, all taxes, assessments and other governmental charges
(“Taxes”), if any, other than Taxes being contested in good faith by appropriate proceedings and as to which adequate reserves have been provided in
accordance with UK GAAP, except where the failure to file or pay could not reasonably be expected to result in a Material Adverse Effect with respect to such Originator or the Buyer.
(j) Solvency. Such Originator is solvent and able to pay its debts within the meaning of Section 123 of the Insolvency Xxx 0000 (or any statutory modification or re-enactment
thereof) and will not be rendered insolvent by the transactions contemplated by this Agreement and the other Basic Documents, and, after giving effect to such transactions: (i) such Originator will not have intended to incur, or be incurring, debts
or liabilities beyond its ability to pay such debts and liabilities as they mature; and (ii) such Originator will be able to realise upon its property and pay its debts and other liabilities, contingent obligations and commitments as they mature
and become due in the normal course of business.
(k) Names and Location. Except as described in Schedule III, such Originator has not used any corporate names, trade names or assumed names since the date occurring five calendar
years prior to the Amendment Effective Date (five calendar years prior to the date of its UK Joinder Agreement, in the case of any Additional Originator), other than its name set forth on the signature pages hereto (or on the signature page to its
UK Joinder Agreement, in the case of any such Additional Originator). Such Originator has its “centre of main interests,” as that term is used in Article 3(1) of the EU Insolvency Regulation, in England and Wales, is a company which is and has,
since incorporation, been resident for tax purposes solely in England and Wales and is and has been within the charge to United Kingdom corporation tax at all relevant times with respect to the transactions contemplated in the Basic Documents.
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(l) Investment Company Act. Such Originator (i) is not, and is not controlled by, an “investment company” registered or required to be registered under the Investment Company Act of
1940, as amended, and (ii) is not a “covered fund” under Section 619 of the Xxxx-Xxxxx Xxxx Street Reform and Consumer Protection Act and the regulations promulgated thereunder.
(m) No Material Adverse Effect. Since October 31, 2017, there has been no Material Adverse Effect with respect to such Originator.
(n) Accuracy of Information. All certificates, reports, Purchase Reports, statements, documents and other information furnished to the Buyer, the Agent (as the Buyer’s assignee) or
any other Affected Party by or on behalf of such Originator pursuant to any provision of this Agreement or any other Basic Document, or in connection with or pursuant to any amendment or modification of, or waiver under, this Agreement or any other
Basic Document, are complete and correct in all material respects on the date the same are furnished to the Buyer, Agent (as the Buyer’s assignee) or other such Affected Party and, taken as a whole, do not contain any material misstatement of fact
or omit to state a material fact or any fact necessary to make the statements contained therein not misleading.
(o) Anti-Money Laundering/International Trade Law Compliance. To such Originator’s knowledge, no Obligor was an individual person, group, regime, entity or thing listed or otherwise
recognised as a specially designated, prohibited, sanctioned or debarred person, group, regime, entity or thing, or subject to any limitations or prohibitions (including but not limited to the blocking of property or rejection of transactions),
under any anti-terrorism law (“Sanctioned Person”) at the time of the origination of any Receivable owing by such Obligor and sold (or purported to be sold)
by such Originator pursuant to this Agreement prior to the Purchase and Sale Termination Date. Such Originator, whether in its own right or through any third party, (i) does not have any of its property in any country subject to a sanctions
program maintained under any anti-terrorism law (each a “Sanctioned Country”) or in the possession, custody or control of a Sanctioned Person in violation of
any anti-terrorism law; (ii) does no business in or with, and does not derive any of its income from investments in or transactions with, any Sanctioned Country or Sanctioned Person in violation of any anti-terrorism law; and (iii) does not engage
in any dealings or transactions prohibited by any anti-terrorism law.
(p) Perfection Representations.
(i) This
Agreement creates a valid assignment of the Originator’s right, title and interest in, to and under the Receivables and Related Rights originated by such Originator that are to be sold (or purported to be sold) by such Originator hereunder, which
assignment, upon the creation of each new Receivable sold or purported to be sold hereunder, and on the Amendment Effective Date (in the case of all then-existing Receivables) (A) has been perfected (subject to the fact that notice of assignment is
not required to be provided to each Obligor until required pursuant to Section 5.01(s) of the RLSA) and is enforceable against creditors of and purchasers from such Originator and (B) will be free of all Adverse Claims of such Originator or Persons
claiming through such Originator.
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(ii) [Deleted.]
(iii) At
the time of such Originator’s sale (or purported sale) hereunder of any Receivable (and Related Rights), such Originator owns and has good and marketable title to such Receivables (and Related Rights), free and clear of any Adverse Claim (other
than Permitted Liens).
(iv) [Deleted.]
(v) Other
than the ownership interest granted to the Buyer pursuant to this Agreement, such Originator has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Receivables originated by such Originator or Related
Rights to be sold (or purported to be sold) by such Originator hereunder except: (A) as permitted by this Agreement and the other Basic Documents; and (B) any such prior conveyances having no continuing effect and as to which any lien or security
interest in the conveyed Receivables and Related Rights, other than any such lien or security interest in favour of the Buyer (or the Agent, as the Buyer’s assignee), has been released. Such Originator is not aware of any judgment lien or tax lien
filings against such Originator.
(vi) The
representations contained in this Section 6.1(p) shall be continuing and shall remain in full force and effect until the date of the final payment to the Buyer under RLSA Section 6.07.
(q) [Deleted].
(r) Compliance with Law. Such Originator has complied with all applicable laws to which it may be subject, except to the extent that any failure to so comply could not reasonably be
expected to have a Material Adverse Effect with respect to such Originator or the Buyer.
(s) [Deleted].
(t) Eligible Receivables. Each Receivable to be sold (or purported to be sold) by such Originator hereunder, other than any Receivable designated as not being an Eligible Receivable
by the applicable Originator (or by the Servicer on behalf of such Originator), is an Eligible Receivable on the date of such sale.
(u) Opinions. The facts regarding such Originator, the Receivables to be sold (or purported to be sold) by it hereunder, the Related Security and the related matters set forth or
assumed in each of the opinions of counsel delivered in connection with this Agreement and the other Basic Documents are true and correct in all material respects.
(v) Other Basic Documents. Each representation and warranty in the RLSA made by or with respect to such Originator or the Receivables to be sold (or purported to be sold) by such
Originator hereunder, or made by such Originator in any other Basic Document to which such Originator is a party, is true and correct in all material respects (unless such representation or warranty contains a materiality qualification and, in such
case, such representation or warranty shall be true and correct as made) as of the date when made or deemed made.
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(w) Servicing Programs. No licence or approval is required for the use by the Buyer, the Agent (as the Buyer’s assignee), the Servicer or any Sub-Servicer of any software or other
computer program used by such Originator or any prior servicer or subservicer in the servicing of the Receivables to be sold (or purported to be sold) by such Originator hereunder, other than: (A) those which have been obtained and are in full
force and effect; and (B) those the failure of which to obtain would not reasonably be expected to have (1) a Servicer Event of Default or a Potential Servicer Event of Default, or (2) a Material Adverse Effect with respect to such Originator or
the Buyer.
(x) Valid Sale. Immediately preceding its sale (or purported sale) of each Receivable (and the Related Rights) hereunder, such Originator was the owner of such Receivable and Related
Rights free and clear of any Adverse Claims (other than Permitted Liens), and each sale (or purported sale) of Receivables (and the Related Rights) made by such Originator pursuant to this Agreement shall constitute a valid sale, transfer and
assignment of all of such Originator’s right, title and interest in, to and under such Receivables and Related Rights to the Buyer, free and clear of any Adverse Claims (other than Permitted Liens), enforceable against creditors of, and purchasers
from, such Originator, except (i) as such enforceability may be limited by applicable bankruptcy, insolvency, reorganisation, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) as such enforceability
may be limited by general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law. In any Insolvency Proceeding of such Originator, the Receivables (and the Related Rights) to be sold (or
purported to be sold) by such Originator hereunder would not constitute property of the bankruptcy estate of such Originator.
(y) Financial Condition. The financial statements of Volt and its consolidated subsidiaries furnished from time to time under the RLSA present fairly in all material respects the
consolidated financial position of such Originator (as contained therein) as at and for the period ended on respective date therein referenced, all in accordance with UK GAAP, subject, in the case of interim financial statements, to (i) adjustments
of the type which would occur as a result of a year-end audit and (ii) the absence of notes.
(z) Reliance on Separate Legal Identity. Such Originator acknowledges that the Agent and each of the Lenders are entering into the Basic Documents to which they are parties in
reliance upon the Buyer’s identity as a legal entity separate from such Originator.
(aa) Credit and Collection Policies and Procedures. Such Originator has complied in all material respects with the Credit and Collection Policies and Procedures with regard to each
Receivable (and related Contract) to be sold (or purported to be sold) by such Originator hereunder.
(bb) Adverse Change in Receivables. At the time of any sale hereunder of Receivables originated by such Originator, and except as otherwise then or theretofore disclosed to the Buyer
or the Servicer, there has been no material adverse change in either the collectability or the payment history of such Receivables.
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(cc) No Fraudulent Conveyance. (i) The value of the consideration, in money or money’s worth, to be received by such Originator for entering into the transactions contemplated by this
Agreement and the other Basic Documents will not be significantly less than the value, in money or money’s worth of the consideration provided by such Originator; (ii) such Originator is entering into the transactions contemplated by this Agreement
and the other Basic Documents in good faith and for the purpose of carrying on its business, and there are reasonable grounds for believing that the transactions contemplated hereby will benefit such Originator; (iii) in entering into the
transactions contemplated hereby, such Originator has not been influenced in approving such transactions by any desire to put any creditor of such Originator, or any surety or guarantor of any of such Originator’s liabilities, into a position
which, in the event of such Originator going into insolvent liquidation, would be better than the position such person would have been in if such transactions, or any Basic Document, had not been entered into or obligation thereunder performed; and
(iv) the Company is not entering into the transactions contemplated hereby for the purpose of putting assets beyond the reach of a person who is making, or may at some time make, a claim against such Originator or of otherwise prejudicing the
interests of such a person in relation to the claim which he is making or may make.
(dd) Nature of Receivables. All Receivables sold or purportedly sold by such Originator hereunder: (i) were originated by such Originator in the ordinary course of its business, (ii)
were sold to Buyer for fair consideration and reasonably equivalent value and (iii) represent all or a portion of the purchase price for merchandise, insurance or services within the meaning of Section 3(c)(5)(A) of the U.S. Investment Company Act
of 1940, as amended.
(ee) Intent of Originator. Such Originator has not sold (or purported to sell) any interest in any Receivable (or the Related Rights) to the Buyer with any intent to hinder, delay or
defraud any of such Originator’s creditors or any other person.
(ff) No Default. No event has occurred which constitutes, or which with the giving of notice and/or the lapse of time and/or a relevant determination would constitute, a contravention
of, or default under, any such law, statute, decree, rule, regulation, order, judgment, injunction, decree, resolution, determination or award or any agreement, document or instrument by which such Originator or any of its assets is bound or
affected, being a contravention or default which could reasonably be expected materially and adversely to affect its ability to observe or perform its obligations under the Basic Documents to which it is a party.
(gg) Insolvency Proceedings. Such Originator does not contemplate the commencement of any Insolvency Proceedings or the appointment of an Insolvency Official in respect of such
Originator or any of its property. No order has been made, no petition has been presented, and no meeting has been convened for the purpose of considering a resolution for its winding up (whether out of court or otherwise). No petition has been
presented for an administration order to be made in relation to it (whether out of court or otherwise). No receiver (including, without limitation, any administrative receiver) has been appointed in respect of the whole or any part of any of its
property, assets and/or undertaking. No composition in satisfaction of its debts, or scheme of arrangement of its affairs, or compromise or arrangement between it and its creditors generally and/or members or any class of its creditors and/or
members, has been proposed, sanctioned or approved by it (other than bona fide settlements of genuine disputes in the ordinary course of business). No distress, distraint, charging order, garnishee order, execution, diligence or other process has
been levied or (so far as it is aware) applied for in respect of the whole or any part of its property, assets and/or undertaking. No steps have been taken by its directors or, so far as it is aware, by any third party, and no circumstances exist
as far as it is aware, which might reasonably be expected to render any of the warranties and representations contained in this subsection (gg) to be no longer true and accurate.
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(hh) Arm’s-Length Terms. The transactions contemplated by the Basic Documents to which such Originator is expressed to be a party are on arm’s-length terms and are being entered into
by it bona fide for the purpose of carrying on its business.
(ii) Data Protection. No Obligor was an individual person at the time of the origination of any Receivable owing by such Obligor and sold (or purported to be sold)
by such Originator pursuant to this Agreement prior to the Purchase and Sale Termination Date.
(jj) Licences. Such Originator has all necessary licences for carrying on the enforcement, collection and origination of the Receivables and the performance of its obligations under
the Basic Documents to which it is expressed as a party.
SECTION 6.2 Reaffirmation of Representations and Warranties by each Originator.
Each Originator shall be deemed to have made the certifications referenced in Section 5.2 at the times, and subject to the
terms and conditions, specified in that section.
SECTION 6.3 Further Representations and Warranties for US Ownership Filings.
In order to induce the Buyer to enter into this Agreement and to make purchases hereunder, as described in Section 5.2,
each Originator hereby makes the further representations and warranties set forth in this Section 6.3:
(a) Location. To the extent such Originator is (or is deemed to be) “located” (as such term is defined in the applicable UCC) in a jurisdiction within the United States, such
Originator is so located (or is deemed to be so located) solely in the jurisdiction specified in Schedule I and, since the date occurring five calendar years prior to the Amendment Effective Date (five calendar years prior to the date of its UK
Joinder Agreement, in the case of any Additional Originator), has not been so located (or deemed to have been so located) in any other jurisdiction within the United States. Such Originator keeps its records concerning the Receivables only at the
address(es) set forth in Schedule II, as such address(es) may be updated from time to time upon prior written notice to the Buyer and the Agent (as the Buyer’s assignee).
(b) Further Perfection Representations.
(i) This
Agreement creates a valid and continuing ownership interest (as defined in the applicable UCC) in the Originator’s right, title and interest in, to and under the Receivables and Related Rights originated by such Originator and to be sold (or
purported to be sold) by such Originator hereunder, which ownership interest, upon the creation of each new Receivable sold or purported to be sold hereunder, and on the Amendment Effective Date (in the case of all then-existing Receivables) has
been perfected (within the meaning of Article 9 of the UCC).
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(ii) The
Receivables originated by such Originator and to be sold (or purported to be sold) by such Originator hereunder constitute “accounts” within the meaning of Article 9 of the UCC.
(iii) All
appropriate financing statements (including any applicable amendments and continuations) have been filed in each filing office in the appropriate jurisdictions necessary under applicable law in order to perfect (and continue the perfection of) the
sale to the Buyer of (and to protect the Buyer’s ownership interest in) the Receivables and Related Rights to be sold (or purported to be sold) by such Originator hereunder against all creditors of and purchasers from such Originator, and all
filing fees and taxes, if any, payable in connection with such filings have been paid in full.
(iv) Such
Originator has not authorised the filing of, and is not aware of, any financing statements filed against such Originator that include a description of collateral covering the Receivables originated by such Originator and Related Rights to be sold
(or purported to be sold) by such Originator hereunder, other than any financing statement (X) in favour of the Buyer (or the Agent, as the Buyer’s assignee), or (Y) that has been terminated or amended (or is being concurrently terminated or
amended) to reflect the release of any security interest in such Receivables and Related Rights.
(v) The
representations contained in this Section 6.3(b) shall be continuing and shall remain in full force and effect until the date of the final payment to the Buyer under RLSA Section 6.07.
ARTICLE VII
COVENANTS OF THE ORIGINATORS
SECTION 7.1 Covenants.
Each Originator will, unless the Buyer or the Agent (as the Buyer’s assignee) shall otherwise consent in writing, perform
the following covenants:
(a) Existence. Such Originator shall remain duly incorporated and validly existing in good standing under the laws of its jurisdiction of incorporation, and shall obtain and preserve
its qualification to do business in each jurisdiction in which such qualification shall be necessary to protect the validity and enforceability of this Agreement, the other Basic Documents to which such Originator is a party, and the Receivables
(and Related Rights) to be sold (or purported to be sold) by such Originator hereunder.
(b) Financial Reporting. Each Originator will maintain a system of accounting established and administered in accordance with UK GAAP, and each Originator shall furnish to the
Servicer such information as the Servicer may from time to time reasonably request relating to such system.
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(c) Notices. Such Originator will notify the Servicer in writing of any of the following events promptly upon a Senior Officer of such Originator learning of the occurrence thereof,
with such notice describing the same, and if applicable, the steps being taken by such Originator with respect thereto:
(i) Termination Event or Potential Termination Event. Notice of the occurrence of any Termination Event or Potential Termination Event that has occurred and is
continuing.
(ii) Representations and Warranties. The failure of any representation or warranty made or deemed to be made by such Originator under this Agreement or any other
Basic Document to be true and correct in any material respect when made or deemed made.
(iii) Litigation. The institution of any litigation, arbitration proceeding or governmental proceeding against or involving such Originator that could reasonably be
expected to have a Material Adverse Effect with respect to such Originator or the Buyer.
(iv) Adverse Claim. (A) Any Person claiming through such Originator shall obtain an Adverse Claim upon any Receivables (or Related Rights) sold (or purported to be
sold) by such Originator hereunder, or (B) any Obligor shall receive any change in payment instructions (from a Person other than the Servicer or the Agent) with respect to any Receivables sold (or purported to be sold) by such Originator
hereunder.
(v) Name Changes, Etc. At least thirty (30) days’ prior notice (or such shorter period of time as may be agreed by the Agent in its sole discretion) before any
change described in Section 7.3(a).
(vi) Change in Accountants or Accounting Policy. Any change in (i) the external accountants of such Originator or (ii) any material accounting policy of such
Originator that is relevant to the transactions contemplated by this Agreement or any other Basic Document (it being understood that any change to the way such Originator accounts for the Receivables shall be deemed “material” for such purpose).
(vii) Material Adverse Change. Any material adverse change in the business, operations, property or financial or other condition of such Originator, whether or not
the same otherwise would constitute a Material Adverse Effect with respect to such Originator or the Buyer.
(d) Conduct of Business. Such Originator will carry on and conduct its business in substantially the same manner and in substantially the same fields of enterprise as it is currently
conducted and will do all things necessary to remain duly incorporated, validly existing and in good standing as a domestic organisation in its jurisdiction of incorporation and maintain all requisite authority to conduct its business in each
jurisdiction in which its business is conducted if the failure to have such authority could reasonably be expected to have a Material Adverse Effect with respect to such Originator or the Buyer.
(e) Compliance with Laws. Such Originator will comply with all applicable laws to which it may be subject if the failure to comply could reasonably be expected to have a Material
Adverse Effect with respect to such Originator or the Buyer.
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(f) Furnishing of Information and Inspection of Receivables. Such Originator will cooperate with the Buyer and the Servicer in furnishing the information, and permitting the
inspections, required under the RLSA.
(g) Payments on Receivables, UK Lockbox Accounts. Such Originator (or the Servicer or a Sub-Servicer on its behalf) will, at all times, instruct all Obligors (other than those listed
on Schedule VI) to deliver payments on the Receivables sold (or purported to be sold) by such Originator hereunder to the UK Lockbox Account designated for such Originator’s use (or as otherwise directed by the Servicer with the consent of the
Agent (as the Buyer’s assignee)) and shall promptly (or with respect to any Obligor identified in Part B of Schedule VI, within sixty (60) days after the
Amendment Effective Date) direct any Obligor listed on Schedule VI to remit all future payments to a different bank account. Such Originator (or the Servicer or a Sub-Servicer on its behalf) will maintain, at all times, such books and
records as may be necessary to identify Collections received from time to time such Receivables. If, notwithstanding the instructions given to Obligors as described above, any payments or other Collections on any Receivables sold (or purported to
be sold) by such Originator hereunder are received by such Originator, such Originator shall hold such payments in trust for the benefit of the Buyer and the Agent (as the Buyer’s assignee) and shall promptly (and in any event within one (1)
Business Day after receipt (if such Business Day is not also a London Business Day then no later than the next London Business Day thereafter that also is a Business Day)) remit such payments to the UK Lockbox Account designated for such
Originator’s use. Such Originator shall not cause (or direct that) funds other than Collections on Receivables sold (or purported to be sold) by such Originator hereunder be deposited into the UK Lockbox Account designated for such Originator’s
use.
(h) Sales, Liens, Etc. Except as otherwise provided in this Agreement or permitted under the RLSA, such Originator will not sell, assign (by operation of law or otherwise) or
otherwise dispose of, or create or suffer to exist any Adverse Claim (claiming through such Originator) upon or with respect to any Receivable (or Related Rights).
(i) Extension or Amendment of Receivables. Except as otherwise permitted by the RLSA, such Originator will not, directly or indirectly, alter the delinquency status or adjust the
Outstanding Balance or otherwise modify the terms of any Receivable sold (or purported to be sold) by such Originator hereunder or amend, modify or waive any term or condition of any related Contract. Such Originator shall, at its expense, timely
and fully perform and comply in all material respects with all provisions, covenants and other promises required to be observed by it under the Contracts related to the Receivables sold (or purported to be sold) by such Originator hereunder, and
timely and fully comply with the Credit and Collection Policies and Procedures with regard to each such Receivable and the related Contract; and the exercise by the Buyer of its rights under this Agreement shall not relieve either Originator of
such obligations.
(j) Change in Credit and Collection Policies and Procedures. Such Originator will not make any material change in the Credit and Collection Policies and Procedures without prior
written consent of the Agent (as the Buyer’s assignee), except for any such changes otherwise permitted under the RLSA. Promptly following any change in the Credit and Collection Policies and Procedures, such Originator will deliver a copy of the
updated Credit and Collection Policies and Procedures to the Buyer and the Agent (as the Buyer’s assignee), to the extent the Servicer has not already done so.
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(k) Identifying of Records. Such Originator shall identify (or cause the Servicer to identify) its master data processing records relating to Receivables sold (or purported to be
sold) by such Originator hereunder (and, to the extent applicable, related Contracts) with a legend that indicates that such Receivables have been sold to the Buyer in accordance with this Agreement and pledged by the Buyer to the Agent in
accordance with the RLSA.
(l) [Deleted].
(m) Books and Records. Such Originator shall (i) maintain and implement (or cause the Servicer to maintain and implement) administrative and operating procedures (including an
ability to recreate records evidencing Receivables sold (or purported to be sold) by such Originator hereunder (and related Contracts) in the event of the destruction of the originals thereof) and (ii) keep and maintain (or cause the Servicer to
keep and maintain) all documents, books, records, computer tapes and disks and other information reasonably necessary or advisable for the collection of such Receivables (including records adequate to permit, on a daily basis, the clear and
unambiguous identification of such Receivables, and all Collections of and adjustments to such Receivables, in such a manner as to distinguish them from other Receivables, Collections and adjustments).
(n) Ownership Interest, Etc. Such Originator shall (and shall cause the Servicer to), at such Originator’s expense, take all action necessary or reasonably desirable to establish and
maintain a valid and enforceable first priority true sale of the Receivables (and Related Rights) sold (or purported to be sold) hereunder by such Originator to the Buyer, free and clear of any Adverse Claim claiming through such Originator. The
foregoing shall include the taking of such actions as may be necessary or desirable to perfect, protect or more fully evidence the aforesaid interests as the Agent (as the Buyer’s assignee) may reasonably request but shall not need to serve notice
of assignment on each Obligor in respect of each Receivable.
(o) Further Assurances. Such Originator hereby authorises and hereby agrees from time to time, at its own expense, promptly to execute (if necessary) and deliver all such further
instruments and documents, and to take all such further actions, that may be necessary or desirable, or that the Buyer or the Agent (as the Buyer’s assignee) may reasonably request, to perfect, protect or more fully evidence purchases made
hereunder and/or the security interest granted pursuant to the RLSA or any other Basic Document, or to enable the Buyer or the Agent (as the Buyer’s assignee) to exercise and enforce their respective rights and remedies under this Agreement or any
other Basic Document. Without limiting the foregoing, such Originator hereby authorises, and will, upon the request of the Buyer or the Agent (as the Buyer’s assignee), at such Originator’s own expense, execute (if necessary) and file such
financing statements or continuation statements, or amendments thereto, and such other instruments and documents, that may be necessary or desirable, or that the Buyer or Agent (as the Buyer’s assignee) may reasonably request, to perfect, protect
or evidence any of the foregoing.
(p) Mergers, Acquisitions, Sales, Etc. Such Originator shall not (i) be a party to any merger, consolidation or other restructuring that would violate any provision of the RLSA and,
in any event, without having provided the Buyer, the Servicer and the Agent with 30 days’ prior notice thereof (or such shorter period of time as may be agreed by the Agent in its sole discretion) and complied with such Perfection and related
matters as may be required under the RLSA or as the Agent otherwise reasonably may request pursuant to Section 8.3, or (ii) directly or indirectly sell, transfer, assign, convey or lease (A) whether in one or a series of transactions, all or
substantially all of its assets or (B) any Receivables or any interest therein (other than pursuant to this Agreement).
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(q) Frequency of Billing. Such Originator shall prepare and deliver (or cause to be prepared and delivered) invoices with respect to all Receivables sold (or purported to be sold) by
such Originator hereunder in accordance with the Credit and Collection Policies and Procedures, but in any event no less frequently than as required under the Contracts related to such Receivables.
(r) Receivables Not to Be Evidenced by Promissory Notes or Chattel Paper. Such Originator shall take reasonable steps to avoid any Receivable sold (or purported to be sold) by such
Originator hereunder to be or become evidenced by any “instrument” or “chattel paper” (as defined in the applicable UCC). In the event that any such Receivable nevertheless shall be or become so evidenced, then such Originator shall promptly
notify the Buyer and the Agent (as the Buyer’s assignee) and deliver such instrument or chattel paper to the Agent (with such indorsements, if any, as the Agent reasonably may require).
(s) Insurance. Such Originator will maintain in effect, at such Originator’s expense, such casualty and liability insurance as such Originator deems appropriate in its good faith
business judgment.
(t) RPSA Subordinated Notes, Etc. Such Originator will not sell, assign (by operation of law or otherwise) or otherwise dispose of, or grant any option with respect to, or create or
suffer to exist any Adverse Claim upon (including the filing of any financing statement) or with respect to, the RPSA Subordinated Note issued to such Originator.
(u) Accuracy of Information. Such Originator shall use all reasonable endeavours to procure that all information and reports furnished by it or on its behalf under the Basic
Documents are accurate in all material respects with reference to the facts and circumstances then subsisting.
(v) Risk Retention. Such Originator undertakes to acquire on the Amendment Effective Date, and hold on an ongoing basis for so long as any RPSA Subordinated Note remains outstanding,
a material net economic interest of not less than 5.0 percent (5.0%) of the nominal value of the securitised exposures through retention of the first loss tranche in the Receivables sold (or purported to be sold) hereunder by way of deferred
purchase price (the “Risk Retention”). Such Originator further agrees not to sell, hedge or otherwise mitigate its credit risk under or associated with the
Risk Retention, except to the extent permitted by the Securitisation Regulation EU 2017-2402.
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SECTION 7.2 Separateness Covenants.
Each Originator hereby acknowledges that this Agreement and the other Basic Documents are being entered into in reliance
upon the Buyer’s identity as a legal entity separate from such Originator and its other Affiliates. Therefore, from and after the date hereof, each Originator shall take all reasonable steps necessary to make it apparent to third Persons that the
Buyer is an entity with assets and liabilities distinct from those of such Originator and is not a division of such Originator. Without limiting the generality of the foregoing and in addition to and consistent with the other covenants set forth
herein, such Originator shall take such actions as shall be required in order that:
(a) such Originator shall
not be involved in the day to day management of the Buyer;
(b) such Originator shall
maintain separate corporate records and books of account from the Buyer and otherwise will observe corporate formalities and have a separate area from the Buyer for its business (which may be located at the same address as the Buyer and, to the
extent that it and the Buyer have offices in the same location, there shall be a fair and appropriate allocation of overhead costs between them, and each shall bear its fair share of such expenses);
(c) the financial statements
and books and records of such Originator shall be prepared so as to reflect, and shall reflect, the separate existence of the Buyer;
(d) unless (but only to the
extent) otherwise permitted by the RLSA, (i) such Originator shall maintain its property (including deposit accounts) separately from the property (including deposit accounts) of the Buyer and (ii) such Originator’s property, and records relating
thereto, have not been, are not, and shall not be, commingled with those of the Buyer;
(e) such Originator shall
not act as an agent for the Buyer (except in the capacity of a Sub-Servicer, to the extent (if ever) hereafter engaged in such capacity in accordance with the Basic Documents);
(f) such Originator shall not
conduct any of the business of the Buyer in its own name (except in the capacity of a Sub-Servicer, to the extent (if ever) hereafter engaged in such capacity in accordance with the Basic Documents);
(g) such Originator shall
not pay any liabilities of the Buyer out of its own funds or assets;
(h) such Originator shall
maintain an arm’s-length relationship with the Buyer;
(i) such Originator shall
not assume or guarantee or become obligated for the debts of the Buyer or hold out its credit as being available to satisfy the obligations of the Buyer;
(j) such Originator shall
not acquire obligations of the Buyer (other than the RPSA Subordinated Note of such Originator);
(k) such Originator shall
allocate fairly and reasonably overhead or other expenses that are properly shared with the Buyer, including shared office space;
(l) such Originator shall
identify and hold itself out as a separate and distinct entity from the Buyer;
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(m) such Originator shall
correct any known misunderstanding respecting its separate identity from the Buyer;
(n) except under or as
contemplated by the RLSA or this Agreement, such Originator shall not enter into, or be a party to, any transaction with the Buyer, except in the ordinary course of its business and on terms which are intrinsically fair and not less favourable to
the Buyer than would be obtained in a comparable arm’s-length transaction with an unrelated third party;
(o) such Originator shall
not pay the salaries of the Buyer’s employees (if any); and
(p) to the extent not
already covered in paragraphs (a) through (o) above, such Originator shall comply and/or act in accordance with all of the other separateness covenants set forth in the Buyer’s operating agreement or in the RLSA, in each case to the extent
applicable to such Originator.
SECTION 7.3. US Filings Covenants.
Each Originator will, unless the Buyer or the Agent (as the Buyer’s assignee) shall otherwise consent in writing, perform
the following additional covenants:
(a) Fundamental Changes. Such Originator shall not make any change in its name or location of organisation or any other change in its identity or corporate structure that could
impair or otherwise render any UCC financing statement filed in connection with this Agreement or the RLSA “seriously misleading” as such term (or similar term) is used in the applicable UCC, in each case unless the Buyer, the Servicer and the
Agent each have received 30 days’ prior notice thereof (or such shorter period of time as may be agreed by the Agent in its sole discretion) and complied with such Perfection and related matters as may be required under the RLSA or as the Agent
otherwise reasonably may request pursuant to Section 8.3.
(b) Ownership Interest, Etc. Such Originator shall (and shall cause the Servicer to), at such Originator’s expense, take all action necessary or reasonably desirable to establish and
maintain a valid and enforceable first priority perfected (within the meaning of Article 9 of the UCC) true sale of the Receivables (and Related Rights) sold (or purported to be sold) hereunder by such Originator to the Buyer, free and clear of any
Adverse Claim claiming through such Originator. The foregoing shall include the taking of such actions as may be necessary or desirable to perfect, protect or more fully evidence the aforesaid interests as the Agent (as the Buyer’s assignee) may
reasonably request but shall not need to serve notice of assignment on each Obligor in respect of each Receivable. Notwithstanding anything to the contrary contained in this Agreement, such Originator shall not have any authority, directly or
indirectly, to file a termination, partial termination, release, partial release or other amendment to any financing statement filed in connection with the transactions contemplated by this Agreement or the RLSA, without the prior written consent
of the Agent.
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ARTICLE VIII
ADDITIONAL RIGHTS AND OBLIGATIONS IN RESPECT OF RECEIVABLES
SECTION 8.1 Rights of the Buyer.
Each Originator hereby authorises the Buyer and the Servicer, and their respective designees or assignees under this
Agreement or the RLSA (including the Agent), to take any and all steps in such Originator’s name necessary or desirable, in their respective determination, to collect all amounts due under any and all Receivables sold (or purported to be sold) by
such Originator hereunder, including endorsing the name of such Originator on checks and other instruments representing Collections and enforcing such Receivables and the provisions of the related Contracts that concern payment and/or enforcement
of rights to payment; provided, however, the Agent shall not
take any of the foregoing actions unless a Termination Event or an Event of Default has occurred and is continuing.
SECTION 8.2 Responsibilities of the Originators.
Anything herein to the contrary notwithstanding:
(a) Each Originator shall
perform its obligations hereunder, and the exercise by the Buyer or its designee of its rights hereunder shall not relieve such Originator from such obligations.
(b) None of the Buyer, the
Servicer, any Sub-Servicer (other than in its capacity as an Originator, if applicable) or the Agent shall have any obligation or liability to any Obligor or any other third Person with respect to any Receivables sold (or purported to be sold) by
the Originators hereunder, any Contracts related thereto or any other related agreements, nor shall any of them be obligated to perform any of the obligations of such Originator thereunder.
(c) [Deleted.]
(d) To the extent that the
sale (or purported sale) of a Receivable to the Buyer does not entitle the Buyer to the entire interest therein, the Originator shall hold that interest as trustee for the Buyer and shall not thereafter deal in any way with any interest in the
relevant Receivable save as expressly permitted under this Agreement.
SECTION 8.3 Further Action Evidencing Purchases.
Each Originator agrees that from time to time, at its expense, it will promptly execute and deliver all further
instruments and documents, and take all further action that the Buyer, the Servicer, any Sub-Servicer or the Agent (as the Buyer’s assignee) may reasonably request in order to perfect, protect or more fully evidence the Receivables sold (or
purported to be sold) by such Originator hereunder (and Related Rights), or to enable the Buyer and the Agent (as the Buyer’s assignee) to exercise or enforce any of its rights hereunder or under any other Basic Document.
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SECTION 8.4 Application of Collections.
Any payment by an Obligor in respect of any indebtedness or other monetary obligation owed by such Obligor to any
Originator shall, except as otherwise specified by such Obligor or required by contract or applicable law and unless otherwise instructed by the Servicer (with the prior written consent of the Agent (as the Buyer’s assignee)) or the Agent, be
applied as a Collection of any Receivable or Receivables of such Obligor sold (or purported to be sold) by such Originator hereunder to the extent of any amounts then due and payable thereunder (such application to be made starting with the oldest
outstanding Receivable or Receivables) before being applied to any other indebtedness or other monetary obligation of such Obligor.
SECTION 8.5 Performance of Obligations.
Each Originator shall (i) perform all of its obligations under the Contracts related to the Receivables to be sold (or
purported to be sold) by such Originator hereunder to the same extent as if interests in such Receivables had not been transferred hereunder, and the exercise by the Buyer or the Agent (as the Buyer’s assignee) of its rights hereunder shall not
relieve any Originator from any such obligations and (ii) pay when due any Taxes, including any sales taxes payable in connection with the Receivables generated by such Originator and their creation and satisfaction.
ARTICLE IX
TERMINATION EVENTS
SECTION 9.1 Termination Events.
Each of the following events or occurrences described in this Section 9.1 shall constitute a “Termination Event” (each event which with notice or the passage of time or both would become a Termination Event being referred to herein as a “Potential Termination Event”):
(a) the Amortization Date
shall have occurred;
(b) any Originator shall fail
to make when due any payment or deposit to be made by such Originator under this Agreement or any other Basic Document to which it is a party and such failure shall remain unremedied for two (2) Business Days;
(c) any representation or
warranty made or deemed to be made by any Originator (or any of its officers) under or in connection with this Agreement or in any other Basic Document to which such Originator is a party or in any other written information or report (insofar as
pertaining to such Originator) by the Buyer or the Servicer to the Agent shall be untrue or incorrect in any material respect when made and, if capable of correction, shall not be corrected within thirty (30) days after any Senior Officer of such
Originator has knowledge thereof or after written notice of such failure shall have been given by the Agent to the Buyer and the Servicer; provided that, if such breach is incapable of being cured, such thirty (30) day grace period shall not apply; and provided, further that if any breach described above is cured in the manner provided in Section 4.5, or by the
Originator’s making of an indemnification payment under Section 10.1 on account of such breach, in each case in accordance with this Agreement (and as and to the extent permitted under the RLSA), such breach shall not constitute a Termination
Event;
(d) any Originator shall fail
to perform or observe any other term, covenant or agreement contained in this Agreement or any other Basic Document to which it is a party on its part to be performed or observed and such continues unremedied for more than thirty (30) days after
any Senior Officer of such Originator has knowledge thereof or after written notice of such failure shall have been given by the Agent to the Buyer and the Servicer;
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(e) any Event of Bankruptcy
shall occur with respect to any Originator; or
(f) the Buyer (and not the
Servicer), upon the occurrence and during the continuation of a “Termination Event” under that certain Amended and Restated Receivables Purchase and Sale Agreement, dated as of the date hereof, among Volt Management Corp., P/S Partner Solutions,
Ltd., Volt and the Buyer (as amended, restated, supplemented or otherwise modified from time to time, the “US RPSA”), shall have declared the Purchase
Facility (as defined in the US RPSA) terminated as provided in Section 9.2(a) of the US RPSA.
SECTION 9.2 Remedies.
(a) Optional Termination. Upon the occurrence and during the continuation of a Termination Event, the Buyer (and not the Servicer), with the prior written consent of the Agent, shall
have the option, by notice to the Originators (with a copy to the Agent and the Lenders), to declare the Purchase Facility terminated.
(b) Remedies Cumulative. Upon any termination of the Purchase Facility pursuant to Section 9.2(a), the Buyer and the Agent (as Buyer’s assignee) shall have, in addition to all other
rights and remedies under this Agreement, all other rights and remedies provided under the UCC of each applicable jurisdiction and other applicable laws, which rights shall be cumulative.
ARTICLE X
INDEMNIFICATION
SECTION 10.1 Indemnities by Originators.
(a) Without limiting any
other rights that the Buyer or the Agent (as the Buyer’s assignee) may have hereunder or under applicable law, and except to the extent of matters addressed in accordance with Section 4.5, each Originator hereby agrees to indemnify the Buyer, the
Agent (as the Buyer’s assignee) and each Lender (as the principals for whom the Agent is acting as agent), and each of their respective officers, directors, employees and agents (each of the foregoing Persons being individually called an “RPSA Indemnified Party”), forthwith on demand by the Borrower (in the case of the Buyer and its officers, directors, employees and agents) or the Agent (as to
each other RPSA Indemnified Party), from and against any and all damages, claims, losses, judgments, liabilities, penalties and related reasonable costs and expenses (including reasonable attorneys’ fees) awarded against or incurred by any of them
arising out of, relating to or in connection with:
(i) the
transfer by such Originator of any interest in any Receivable sold (or purported to be sold) by such Originator hereunder (other than the transfer thereof hereunder);
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(ii) any
representation, warranty or statement made or deemed made by such Originator (or any of its respective officers) under or in connection with this Agreement which shall have been untrue or incorrect when made or deemed made;
(iii) the
failure by such Originator to comply with the terms of any Basic Document to which such Originator is a party or with any applicable law with respect to any Receivable sold (or purported to be sold) by such Originator hereunder or the related
Contract; or the failure of any Receivable sold (or purported to be sold) by such Originator hereunder (or the related Contract) to conform to any such applicable law;
(iv) the
lack of an enforceable ownership interest in the Receivables (and all Related Security) sold (or purported to be sold) by such Originator hereunder against all Persons (including any Insolvency Official), in either case, free and clear of any
Adverse Claim (other than Permitted Liens);
(v) the
failure to have filed, or any delay in filing, financing statements, financing statement amendments, continuation statements or other similar instruments or documents under the UCC of any applicable jurisdiction or other applicable laws with
respect to any Receivable sold (or purported to be sold) by such Originator hereunder;
(vi) any
dispute, claim, offset or defence (other than discharge in an Insolvency Proceeding) of the Obligor to the payment of any Receivable sold (or purported to be sold) by such Originator hereunder (including a defence based on such Receivable or the
related Contract not being a legal, valid and binding obligation of such Obligor enforceable against such Obligor in accordance with its terms) or any other claim resulting from or relating to collection activities with respect to such Receivable;
(vii) any
failure of such Originator (A) to perform any its duties or obligations in accordance with the provisions hereof and of each other Basic Document to which such Originator is a party and related to Receivables sold (or purported to be sold) by such
Originator hereunder or (B) to timely and fully comply with the Credit and Collection Policies and Procedures in regard to each such Receivable;
(viii) any
product liability, environmental or other suit or claim arising out of or in connection with any Receivable or other merchandise, goods or services which are the subject of or related to any Receivable sold (or purported to be sold) by such
Originator hereunder;
(ix) except
if (but only to the extent) otherwise permitted under the RLSA, the commingling by or on behalf of such Originator of Collections of Receivables sold (or purported to be sold) by such Originator hereunder at any time with other funds;
(x) any
investigation, litigation or proceeding (actual or threatened) by or on behalf of or with respect to such Originator and related to this Agreement or any other Basic Document to which such Originator is a party or in respect of any Receivable sold
(or purported to be sold) by such Originator hereunder (or any Related Rights);
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(xi) any
set-off by any Obligor (or any Affiliate thereof) with respect to any Receivable sold (or purported to be sold) by such Originator hereunder;
(xii) any
claim brought by any Person other than an RPSA Indemnified Party arising from any activity by such Originator;
(xiii) the
failure by such Originator to pay when due any Taxes, including sales, excise or personal property taxes; or
(xiv) any
tax or governmental fee or charge, all interest and penalties thereon or with respect thereto, and all reasonable out-of-pocket costs and expenses, including reasonable attorneys’ fees, in defending against all or any part of the foregoing, which
are required to be paid by reason of the purchase or ownership of the Receivables sold (or purported to be sold) by such Originator hereunder (or any Related Rights);
provided that such indemnity shall not be
available to any RPSA Indemnified Party to the extent that such losses, claims, damages, liabilities or related expenses: (x) are determined by a court of competent jurisdiction in a final judgment to have resulted from the gross negligence or
wilful misconduct of (i) such RPSA Indemnified Party, (ii) the Agent (but only in the case of any RPSA Indemnified Party claiming through the Agent), or (iii) any Lender (but only in the case of any RPSA Indemnified Party claiming through such
Lender); or (y) constitute recourse with respect to a Receivable by reason of the bankruptcy or insolvency, lack of creditworthiness or other financial inability to pay of the related Obligor.
(b) Notwithstanding anything
to the contrary in this Agreement, solely for purposes of such Originator’s indemnification obligations in clauses (ii), (iii) and (vii) of Subsection (a) above, any representation, warranty or covenant qualified by the occurrence or non-occurrence
of a material adverse effect (or similar concepts of materiality) shall be deemed to be not so qualified.
SECTION 10.2 Other Indemnification.
If for any reason the foregoing indemnification is unavailable to any RPSA Indemnified Party or insufficient to hold it
harmless, then the Originators, jointly and severally, shall contribute to the amount paid or payable by such RPSA Indemnified Party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect the relative
economic interests of such Originator and its Affiliates (excluding the Buyer) on the one hand and such RPSA Indemnified Party on the other hand in the matters contemplated by this Agreement as well as the relative fault of such Originator and its
Affiliates (excluding the Buyer) and such RPSA Indemnified Party with respect to such loss, claim, damage or liability and any other relevant equitable considerations. The reimbursement, indemnity and contribution obligations of such Originator
under this Article shall be in addition to any liability which such Originator may otherwise have, shall extend upon the same terms and conditions to such RPSA Indemnified Party, and shall be binding upon and inure to the benefit of any successors,
assigns, heirs and personal representatives of such Originator and the RPSA Indemnified Parties.
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SECTION 10.3 Survival of Indemnification.
Any indemnification or contribution under this Article shall survive the termination of this Agreement.
ARTICLE XI
MISCELLANEOUS
SECTION 11.1 Amendments, Etc.
(a) The provisions of this
Agreement may from time to time be amended, modified or waived, if such amendment, modification or waiver is in writing and executed by the Buyer and each Originator; provided in all cases that the prior written consent of the Agent (as the Buyer’s
assignee) shall have been obtained.
(b) No failure or delay on
the part of any party hereto, or of the Agent (as the Buyer’s assignee), in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power or right preclude any other or further
exercise thereof or the exercise of any other power or right. No notice to or demand on any party hereto, or of the Agent (as the Buyer’s assignee), in any case shall entitle it to any notice or demand in similar or other circumstances. No waiver
or approval by any party hereto or by the Agent (as the Buyer’s assignee), shall, except as may otherwise be stated in such waiver or approval, be applicable to subsequent transactions. No waiver or approval under this Agreement shall require any
similar or dissimilar waiver or approval thereafter to be granted hereunder.
(c) This Agreement and the
Basic Documents to which the Originators are party contain a final and complete integration of all prior expressions by the parties hereto and the Agent (as the Buyer’s assignee), with respect to the subject matter hereof and thereof and shall
constitute the entire agreement among the parties hereto or thereto, and the Agent (as the Buyer’s assignee), with respect to the subject matter hereof or thereof, superseding all applicable prior oral or written understandings.
SECTION 11.2 Notices, Etc.
All notices and other communications provided for hereunder shall, unless otherwise stated herein, be in writing
(including facsimile or electronic mail communication) and shall be delivered or sent by facsimile, electronic mail or by overnight mail, to the intended party at the mailing or electronic mail address or facsimile number of such party set forth
under its name on Schedule IV (or at such other address or facsimile number as shall be designated by such party in a written notice to the other parties hereto). In the case of the Agent, notices and other communications provided for hereunder
shall be given to the Agent in the manner provided under the RLSA. All such notices and communications shall be effective (i) if delivered by overnight mail, when received, and (ii) if transmitted by facsimile or electronic mail, when sent,
receipt confirmed by telephone or electronic means.
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SECTION 11.3 No Waiver; Cumulative Remedies.
The remedies herein provided are cumulative and not exclusive of any remedies provided by law. Without limiting the
foregoing, each Originator hereby authorises the Buyer and the Agent (as the Buyer’s assignee), at any time and from time to time, to the fullest extent permitted by law, to set off, against any obligations of such Originator to the Buyer arising
in connection with the Basic Documents (including amounts payable pursuant to Article X) that are then due and payable or that are not then due and payable but have accrued, any and all deposits (general or special, time or demand, provisional or
final) at any time held by, and any and all indebtedness at any time owing to or for the credit or the account of such Originator.
SECTION 11.4 Binding Effect; Assignability.
This Agreement shall be binding upon and inure to the benefit of the Buyer and each Originator and their respective
successors and permitted assigns. No Originator may assign any of its rights hereunder or any interest herein without the prior written consent of the Buyer and the Agent (as the Buyer’s assignee). The Buyer is assigning its rights under this
Agreement to the Agent concurrently with the execution and delivery of this Agreement. This Agreement shall create and constitute the continuing obligations of the parties hereto in accordance with its terms and shall remain in full force and
effect until such time as the parties hereto shall agree. The rights and remedies with respect to any breach of any representation and warranty made by any Originator pursuant to Article VI and the indemnification and payment provisions of Article
X and Section 11.6 shall be continuing and shall survive any termination of this Agreement.
SECTION 11.5 Governing Law.
This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.
SECTION 11.6 Costs, Expenses and Taxes.
In addition to the obligations of the Originators under Article X, each Originator, severally and for itself alone, agrees
to pay on demand:
(a) to the Buyer, all
reasonable out-of-pocket costs and expenses in connection with the preparation, negotiation, execution, delivery and administration of this Agreement;
(b) to the Buyer, all
reasonable out-of-pocket costs and expenses (including reasonable attorneys’ fees) of the Buyer or the Agent (as the Buyer’s assignee) incurred in connection with the enforcement against such Originator of any of their respective rights or remedies
under the provisions of this Agreement and the other Basic Documents; and
(c) all stamp, franchise and
other taxes and fees payable in connection with the execution, delivery, filing and recording of this Agreement or the other Basic Documents to be delivered hereunder, and agrees to indemnify each RPSA Indemnified Party against any liabilities with
respect to or resulting from any delay in paying or omitting to pay such taxes and fees.
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SECTION 11.7 Jurisdiction.
(a) Subject to Subsection (d)
below, the courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute relating to the existence, validity or termination of this Agreement or any non-contractual
obligation arising out of or in connection with this Agreement) (each a “Dispute”).
(b) The parties hereto agree
that the courts of England are the most appropriate and convenient courts to settle Disputes and that, accordingly, no party hereto will argue to the contrary.
(c) Each Originator agrees
not to claim, and hereby irrevocably waives, any immunity from legal process in connection with this Agreement under any law of any applicable jurisdiction which it is entitled to claim or which may be attributed to it in respect of itself or its
assets to the fullest extent permitted by the laws of such jurisdiction.
(d) This Section 11.7 is for
the benefit of the Buyer only. As a result, the Buyer shall not be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction. To the extent allowed by law, the Buyer may take concurrent proceedings in any
number of jurisdictions.
SECTION 11.8 [Deleted].
SECTION 11.9 Execution in Counterparts.
This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an
original and all of which when taken together shall constitute one and the same agreement. Delivery of an executed counterpart hereof by facsimile or other electronic means shall be equally effective as delivery of an originally executed
counterpart.
SECTION 11.10 Acknowledgment and Agreement.
By execution below, each Originator expressly acknowledges and agrees that all of the Buyer’s rights, title, and interests
in, to, and under this Agreement (but not its obligations), shall be assigned by the Buyer to the Agent (for the benefit of the Lenders) pursuant to the RLSA, and each Originator consents to such assignment. Each of the parties hereto acknowledges
and agrees that Agent (on its own behalf and on behalf of the Lenders) shall be a third-party beneficiary of the rights of the Buyer arising hereunder and under any other Basic Documents to which any Originator is a party and, notwithstanding
anything to the contrary contained herein or in any other Basic Document, during the occurrence and continuation of an Event of Default, the Agent, and not the Buyer, shall have the sole right to exercise all such rights and related remedies to the
fullest extent provided under the RLSA.
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SECTION 11.11 Non-Petition.
Each Originator (each acting in any capacity whatsoever) hereby agrees with the Buyer and acknowledges that it will not be
entitled to take any steps:
(a) to enforce either RPSA
Subordinated Note, other than when expressly permitted to do so under the terms thereof;
(b) to take or join any
person in taking steps against the Buyer for the purpose of obtaining payment of any amount due from the Buyer to it;
(c) to initiate or join any
person in initiating any Insolvency Proceedings in relation to the Buyer or the appointment of an Insolvency Official in relation to the Buyer or in relation to the whole or any part of the undertakings or assets of the Buyer; or
(d) that would result in any
amount held by or on behalf of the Buyer being applied, or any Obligations owed to that Originator being met, otherwise than in accordance with the priority of payments set forth in Section 6.03(b) of the RLSA, or to take any proceedings that would
result in the same.
The agreements in this Section 11.11 shall survive any termination of this Agreement.
SECTION 11.12 Mutual Negotiations.
This Agreement and the other Basic Documents to which the Originators are a party are the product of mutual negotiations
by the parties hereto or thereto and their counsel, and no party shall be deemed the draftsperson of this Agreement or any such other Basic Document or any provision hereof or thereof or to have provided the same. Accordingly, in the event of any
inconsistency or ambiguity of any provision of this Agreement or any such other Basic Document, such inconsistency or ambiguity shall not be interpreted against any party because of such party’s relative involvement in the drafting thereof.
SECTION 11.13 Severability.
Any provisions of this Agreement which are prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.
SECTION 11.14 Service of Process.
(a) Without prejudice to any
other mode of service allowed under any relevant law, each of Volt and the Buyer hereby:
(i) irrevocably
appoints Volt Europe Holdings Limited (registered number 01358234) of Volt House, 0 Xxxxxx Xxxx, Xxxxxxx, Xxxxxx, XX0 0XX Xxxxxxx, as its agent to receive on its behalf in England and Wales service of any proceedings under Section 11.7(a) above.
Such service shall be deemed completed on delivery to such agent (whether or not it is forwarded to and received by any other party) and shall be valid until such time as the other parties to this Agreement receive prior written notice that such
agent has ceased to act as agent; and
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(ii) agrees
that failure by a process agent to notify the intended recipient of the process will not invalidate the proceedings concerned.
(b) If any person appointed
as an agent for service of process is unable for any reason to act as agent for service of process, each of Volt and the Buyer must immediately (and in any event within 3 Business Days of such event taking place) appoint another agent on terms
acceptable to the other parties.
[Remainder of Page Intentionally Left Blank]
- 37 -
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto
duly authorised as of the date first above written.
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VOLT FUNDING II, LLC,
as Buyer
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Xxxxx X. Xxxxxx
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Treasurer
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VOLT CONSULTING GROUP LIMITED,
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Xxxx Xxxx
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Director
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VOLT EUROPE LIMITED,
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Xxxx Xxxx
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Director
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as Servicer
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Xxxxx X. Xxxxxx
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VP & Treasurer
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[RPSA Signature Pages]
ACKNOWLEDGED & AGREED:
DZ BANK AG DEUTSCHE ZENTRAL-GENOSSENSCHAFTSBANK,
FRANKFURT AM MAIN, NEW YORK BRANCH,
as Agent
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/s/ Xxxxx Xxxxx |
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Xxxxx Xxxxx |
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Vice President
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Xxx Xxxx
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Assistant Vice President
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[RPSA Signature Pages]
Exhibit A
[FORM OF RPSA SUBORDINATED NOTE]
RPSA SUBORDINATED NOTE
[_____], 20[__]
FOR VALUE RECEIVED, the undersigned, Volt Funding II, LLC, a Delaware limited liability company (the “Buyer”), promises to pay to [______________], a [______________] (the “Originator”),
on the terms and subject to the conditions set forth herein and in the RPSA referred to below, the aggregate unpaid amount advanced from time to time by the Originator to the Buyer to be used to pay all or part of the Purchase Price of Receivables
purchased from time to time by the Buyer from the Originator pursuant to such RPSA, as such unpaid advances are shown in the records of the Servicer.
1. RPSA. This RPSA Subordinated Note is one of the RPSA Subordinated Notes described in, and is subject to the terms and conditions set forth in, that certain Receivables Purchase
and Sale Agreement, dated as of July __, 2019 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “RPSA”), among
the Buyer, Volt Information Sciences, Inc., as Servicer, the Originator, and the other originators from time to time party thereto. Reference is hereby made to the RPSA for a statement of certain other rights and obligations of the Buyer and the
Originator.
2. Definitions. Capitalised terms used (but not defined) herein have the meanings assigned thereto in the RPSA (or, if applicable, the RLSA (as defined in the RPSA)). In addition,
as used herein, the following terms have the following meanings:
(a) “Final Maturity Date” means the first Business Day immediately following the date that falls one year and one day after the date of the final payment to the Buyer
under RLSA Section 6.07.
(b) “Senior Interest Holders” means, collectively, the Agent, the Lenders and the Indemnified Parties.
(c) “Senior Interests” means, collectively, any and all principal, interest, fees, expense reimbursements and other amounts owed to any one or more Senior Interest
Holders under the RLSA or any other Basic Document, in each case, howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter existing, or due or to become due, together with any and all interest
accruing on any such amount after the commencement of any proceeding in respect of an Event of Bankruptcy, whether or not allowed as a claim in any such proceeding.
(d) “Subordination Provisions” means, collectively, the subordination provisions set forth in paragraph 9 of this RPSA Subordinated Note.
Exh. A-1
3. Interest. Subject to the Subordination Provisions, the Buyer promises to pay interest on the aggregate unpaid amount advanced from time to time under this RPSA Subordinated Note,
from (and including) the date of advance and to (but excluding) the date of payment or prepayment, at a rate per annum equal to the Prime Rate.
4. Interest Payment Dates. Subject to the Subordination Provisions, the Buyer shall pay accrued interest on this RPSA Subordinated Note: (x) on each Settlement Date; and (y) on each
other day (if any) on which any payment of principal shall be made (on the amount of principal then being paid.
5. Basis of Computation. Interest accrued hereunder shall be computed for the actual number of days elapsed on the basis of a 365- or 366-day year, as the case may be.
6. Principal Payment Dates. Subject to the Subordination Provisions, payments of the principal amount of this RPSA Subordinated Note shall be made as follows:
(a) the
principal amount of this RPSA Subordinated Note shall be reduced by an amount equal to each payment deemed made pursuant to the RPSA; and
(b) the
entire outstanding principal amount of this RPSA Subordinated Note shall be paid on the Final Maturity Date.
(c) the
principal amount of (and accrued interest on this RPSA Subordinated Note) may be prepaid (in whole or in part) by the Buyer, and in the sole discretion of the Buyer, on any Business Day without premium or penalty.
7. Payment Mechanics. All payments of principal and interest hereunder are to be made in lawful money of the United Kingdom (or the Dollar Equivalent thereof, based on a conversion
to Dollars at the Spot Rate at such time) in the manner specified in Article IV of the RPSA.
8. Enforcement Expenses. In addition to and not in limitation of the foregoing, but subject to the Subordination Provisions set forth below and to any limitation imposed by
applicable law, the Buyer agrees to pay all reasonable expenses, including reasonable attorneys’ fees, incurred by the Originator in seeking to collect any amounts payable hereunder which are not paid when due.
9. Subordination Provisions. The Buyer covenants and agrees, and the Originator and any other holder of this RPSA Subordinated Note (collectively, the Originator and any such other
holder are called the “Holder”), by its acceptance of this RPSA Subordinated Note, likewise covenants and agrees on behalf of itself and any Holder, that the
payment of the principal amount of and interest on this RPSA Subordinated Note is hereby expressly subordinated in right of payment to the payment and performance of the Senior Interests to the extent and in the manner set forth in the following
clauses (a)–(l) of this paragraph 9:
(a) No
payment or other distribution of the Buyer’s property of any kind or character, whether in cash, securities or other rights or property, shall be made on account of this RPSA Subordinated Note except to the extent such payment or other distribution
is (i) permitted under the RLSA or (ii) made pursuant to this RPSA Subordinated Note.
Exh. A-2
(b) In the
event of any Event of Bankruptcy relating to the Buyer, the Senior Interests shall first be paid and performed in full and in cash before the Originator shall be entitled to receive and to retain any further payment or distribution in respect of
this RPSA Subordinated Note. In order to implement the foregoing: (i) all payments and distributions of any kind or character in respect of this RPSA Subordinated Note to which the Holder would be entitled except for this clause (b) shall be made
directly to the Agent (for the benefit of the Senior Interest Holders); (ii) the Holder shall promptly file a claim or claims, in the form required in any proceedings applicable to such Event of Bankruptcy (“Bankruptcy Proceedings”), for the full outstanding amount of this RPSA Subordinated Note, and shall use commercially reasonable efforts to cause said claim or claims to be approved and
all payments and other distributions in respect thereof to be made directly to the Agent (for the benefit of the Senior Interest Holders) until the Senior Interests shall have been paid and performed in full and in cash; and (iii) the Holder hereby
irrevocably agrees that the Agent (acting on behalf of the Lenders), may in the name of the Holder or otherwise, demand, xxx for, collect, receive and receipt for any and all such payments or distributions, and file, prove and vote or consent in
any such Bankruptcy Proceedings with respect to any and all claims of the Holder relating to this RPSA Subordinated Note, in each case until the Senior Interests shall have been paid and performed in full and in cash.
(c) In the
event that the Holder receives any payment or other distribution of any kind or character from the Buyer or from any other source whatsoever, in respect of this RPSA Subordinated Note, other than as expressly permitted by the terms of this RPSA
Subordinated Note, such payment or other distribution shall be received in trust for the Senior Interest Holders and shall be turned over by the Holder to the Agent (for the benefit of the Senior Interest Holders) forthwith. The Holder will xxxx
its books and records so as clearly to indicate that this RPSA Subordinated Note is subordinated in accordance with the terms hereof. All payments and distributions received by the Agent in respect of this RPSA Subordinated Note, to the extent
received in or converted into cash, may be applied by the Agent (for the benefit of the Senior Interest Holders) first to the payment of any and all expenses (including reasonable attorneys’ fees) paid or incurred by the Senior Interest Holders in
enforcing these Subordination Provisions, or in endeavouring to collect or realise upon this RPSA Subordinated Note, and any balance thereof shall, solely as between the Originator and the Senior Interest Holders, be applied by the Agent (in the
order of application set forth in the RLSA) toward the payment of the Senior Interests; but as between the Buyer and its creditors, no such payments or distributions of any kind or character shall be deemed to be payments or distributions in
respect of the Senior Interests.
(d) Notwithstanding
any payments or distributions received by the Senior Interest Holders in respect of this RPSA Subordinated Note, while any Bankruptcy Proceedings are pending the Holder shall not be subrogated to the then-existing rights of the Senior Interest
Holders in respect of the Senior Interests until the Senior Interests have been paid and performed in full and in cash. If no Bankruptcy Proceedings are pending, the Holder shall only be entitled to exercise any subrogation rights that it may
acquire (by reason of a payment or distribution to the Senior Interest Holders in respect of this RPSA Subordinated Note) to the extent that any payment arising out of the exercise of such rights would be permitted under the RLSA.
Exh. A-3
(e) These
Subordination Provisions are intended solely for the purpose of defining the relative rights of the Holder (on the one hand) and the Senior Interest Holders (on the other hand). Nothing contained in these Subordination Provisions or elsewhere in
this RPSA Subordinated Note is intended to or shall impair, as between the Buyer, its creditors (other than the Senior Interest Holders) and the Holder, the Buyer’s obligation, which is unconditional and absolute, to pay the Holder the principal of
and interest on this RPSA Subordinated Note as and when the same shall become due and payable in accordance with the terms hereof or to affect the relative rights of the Holder and creditors of the Buyer (other than the Senior Interest Holders).
(f) The
Holder shall not, until the Senior Interests have been paid and performed in full and in cash, (i) cancel, waive, forgive, transfer or assign, or commence legal proceedings to enforce or collect, or subordinate to any obligation of the Buyer,
howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, or now or hereafter existing, or due or to become due, other than the Senior Interests, this RPSA Subordinated Note or any rights in respect hereof or (ii)
convert this RPSA Subordinated Note into an equity interest in the Buyer, unless the Holder shall, in either case, have received the prior written consent of the Agent.
(g) The
Holder shall not, without the advance written consent of the Agent, commence, or join with any other Person in commencing, any Bankruptcy Proceedings with respect to the Buyer until at least one year and one day shall have passed since the Senior
Interests shall have been paid and performed in full and in cash.
(h) If, at
any time, any payment (in whole or in part) of any Senior Interest is rescinded or must be restored or returned by a Senior Interest Holder (whether in connection with Bankruptcy Proceedings or otherwise), these Subordination Provisions shall
continue to be effective or shall be reinstated, as the case may be, as though such payment had not been made.
(i) Each
of the Senior Interest Holders may, from time to time, at its sole discretion, without notice to the Holder, and without waiving any of its rights under these Subordination Provisions, take any or all of the following actions: (i) retain or obtain
an interest in any property to secure any of the Senior Interests; (ii) retain or obtain the primary or secondary obligations of any other obligor or obligors with respect to any of the Senior Interests; (iii) extend or renew for one or more
periods (whether or not longer than the original period), alter or exchange any of the Senior Interests, or release or compromise any obligation of any nature with respect to any of the Senior Interests; (iv) amend, supplement, amend and restate,
or otherwise modify any Basic Document; and (v) release its security interest in, or surrender, release or permit any substitution or exchange for all or any part of any rights or property securing any of the Senior Interests, or extend or renew
for one or more periods (whether or not longer than the original period), or release, compromise, alter or exchange any obligations of any nature of any obligor with respect to any such rights or property.
Exh. A-4
(j) The
Holder hereby waives: (i) notice of acceptance of these Subordination Provisions by any of the Senior Interest Holders; (ii) notice of the existence, creation, non-payment or non-performance of all or any of the Senior Interests; and (iii) all
diligence in enforcement, collection or protection of, or realisation upon, the Senior Interests, or any thereof, or any security therefor.
(k) Each
of the Senior Interest Holders may, from time to time, on the terms and subject to the conditions set forth in the Basic Documents to which such Persons are party, but without notice to the Holder, assign or transfer any or all of the Senior
Interests, or any interest therein; and, notwithstanding any such assignment or transfer or any subsequent assignment or transfer thereof, such Senior Interests shall be and remain Senior Interests for the purposes of these Subordination
Provisions, and every immediate and successive assignee or transferee of any of the Senior Interests or of any interest of such assignee or transferee in the Senior Interests shall be entitled to the benefits of these Subordination Provisions to
the same extent as if such assignee or transferee were the assignor or transferor.
(l) These
Subordination Provisions constitute a continuing offer from the Holder to all Persons who become the holders of, or who continue to hold, Senior Interests; and these Subordination Provisions are made for the benefit of the Senior Interest Holders,
and the Agent may proceed to enforce such provisions on behalf of each of such Persons.
10. General. No failure or delay on the part of the Originator in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise
of any such power or right preclude any other or further exercise thereof or the exercise of any other power or right. No amendment, modification or waiver of, or consent with respect to, any provision of this RPSA Subordinated Note shall in any
event be effective unless (i) the same shall be in writing and signed and delivered by the Buyer and the Holder and (ii) all consents required for such actions under the Basic Documents shall have been received by the appropriate Persons.
11. Maximum Interest. Notwithstanding anything in this RPSA Subordinated Note to the contrary, the Buyer shall never be required to pay unearned interest on any amount outstanding
hereunder and shall never be required to pay interest on the principal amount outstanding hereunder at a rate in excess of the maximum nonusurious interest rate that may be contracted for, charged or received under applicable federal or state law
(such maximum rate being herein called the “Highest Lawful Rate”). If the effective rate of interest which would otherwise be payable under this RPSA
Subordinated Note would exceed the Highest Lawful Rate, or if the holder of this RPSA Subordinated Note shall receive any unearned interest or shall receive monies that are deemed to constitute interest which would increase the effective rate of
interest payable by the Buyer under this RPSA Subordinated Note to a rate in excess of the Highest Lawful Rate, then (i) the amount of interest which would otherwise be payable by the Buyer under this RPSA Subordinated Note shall be reduced to the
amount allowed by applicable law, and (ii) any unearned interest paid by the Buyer or any interest paid by the Buyer in excess of the Highest Lawful Rate shall be refunded to the Buyer. Without limitation of the foregoing, all calculations of the
rate of interest contracted for, charged or received by the Originator under this RPSA Subordinated Note that are made for the purpose of determining whether such rate exceeds the Highest Lawful Rate applicable to the Originator (such Highest
Lawful Rate being herein called the “Originator’s Maximum Permissible Rate”) shall be made, to the extent permitted by usury laws applicable to the
Originator (now or hereafter enacted), by amortizing, prorating and spreading in equal parts during the actual period during which any amount has been outstanding hereunder all interest at any time contracted for, charged or received by the
Originator in connection herewith. If at any time and from time to time (i) the amount of interest payable to the Originator on any date shall be computed at the Originator’s Maximum Permissible Rate pursuant to the provisions of the foregoing
sentence and (ii) in respect of any subsequent interest computation period the amount of interest otherwise payable to the Originator would be less than the amount of interest payable to the Originator computed at the Originator’s Maximum
Permissible Rate, then the amount of interest payable to the Originator in respect of such subsequent interest computation period shall continue to be computed at the Originator’s Maximum Permissible Rate until the total amount of interest payable
to the Originator shall equal the total amount of interest which would have been payable to the Originator if the total amount of interest had been computed without giving effect to the provisions of the foregoing sentence.
Exh. A-5
12. No Negotiation. This RPSA Subordinated Note is not negotiable.
13. Governing Law. This RPSA Subordinated Note and any non-contractual obligations arising out of or in connection with it are governed by English law.
14. Captions. Paragraph captions used in this RPSA Subordinated Note are for convenience only and shall not affect the meaning or interpretation of any provision of this RPSA
Subordinated Note.
[Remainder of Page Intentionally Left Blank]
Exh. A-6
IN WITNESS WHEREOF, the Buyer has caused this RPSA Subordinated Note to be executed as of the date first written above.
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VOLT FUNDING II, LLC
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[Signature Page to RPSA Subordinated Note]
