UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________________________________________________________________________

FORM 8-K

__________________________________________________________________________________

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): September 24, 2018

__________________________________________________________________________________

DXC TECHNOLOGY COMPANY

(Exact name of Registrant as specified in its charter)

__________________________________________________________________________________

 

Nevada   001-38033   61-1800317

 

(State or Other Jurisdiction

of Incorporation)

 

 

(Commission

File Number)

 

 

(I.R.S. Employer

Identification No.)

 

1775 Tysons Boulevard  

 

Tysons, Virginia

  22102

 

(Address of Principal Executive Offices)

 

 

(Zip Code)

Registrant’s telephone number, including area code (703) 245-9675

Not Applicable

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

__________________________________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see  General Instruction A.2. below):

 

  ☐

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

  ☐

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

  ☐

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

  ☐

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

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

Emerging growth company ☐

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

 

 


Item 1.01 Entry into a Material Definitive Agreement.

U.S Accounts Receivables Securitization Facility

On September 24, 2018, DXC Technology Company (the “Company”) amended its committed receivables securitization program (the “Securitization”) with PNC Bank, National Association, as administrative agent (the “Administrative Agent”) and the purchasers party thereto (the “Purchasers”).

Pursuant to the amendments, (i) several originators (all of whom were CSC subsidiaries) repurchased their receivables under the Securitization and exited the facility (the “Exiting Originators”), leaving DXC Technology Services LLC (“DXC Technology Services”) as the sole Originator, (ii) the Company became the new Servicer (in such capacity, the “Servicer”), (iii) Computer Sciences Corporation (“CSC”) sold its membership interests in CSC Receivables LLC to DXC Technology Services, (iv) CSC Receivables LLC changed its name to “DXC Receivables LLC” (the “SPE”) and (v) the Company amended and reaffirmed its guaranty of certain obligations of DXC Technology Services (the “Performance Guaranty”).

The Securitization program agreements contain certain customary representations and warranties and affirmative covenants, including as to the eligibility of the receivables being sold and contributed, and contain customary program termination events and non-reinvestment events. Certain obligations of DXC Technology Services under the Securitization are guaranteed by the Company under the Performance Guaranty. However, the Performance Guaranty does not cover the SPE’s obligations to pay any yield, fees or invested amounts to the Administrative Agent or any of the Purchasers.

DXC Technology Services is obligated to: (i) repurchase any Receivables that were not eligible as represented when sold or contributed and (ii) fund any short-falls in collections for specified non-credit related reasons after sale or contribution. Apart from these obligations, any recourse to the Company or DXC Technology Services for credit-related losses under the Securitization will be limited to the deferred portion of the purchase price for the receivables that is payable by the SPE to DXC Technology Services under the subordinated note issued by the SPE to DXC Technology Services.

The Company uses the proceeds from receivables sales under the Securitization for general corporate purposes.

The foregoing description of the Securitization is qualified in its entirety by reference to (i) the Second Amendment to the Purchase and Sale Agreement, dated as of September 24, 2018, among the Exiting Originators, the Exiting Servicer, DXC Technology Services, the Company and the SPE, (ii) the Fourth Amendment to the Receivables Purchase Agreement, dated as of September 24, 2018, among the Exiting Servicer, the Company, the SPE, the Purchasers and the Administrative Agent, and (iii) the Amended and Restated Performance Guaranty, dated as of September 24, 2018, made by the Company, which are filed as Exhibits 10.1, 10.2 and 10.3 respectively, and incorporated herein by reference.

Revolving Credit Facility

On September 26, 2018, the Company received $190 million of incremental commitments (the “Incremental Revolving Commitments”) under its existing Revolving Credit Facility (as defined below). As a result of the incurrence of the Incremental Revolving Commitments, the aggregate outstanding commitments under the Revolving Credit Facility increased from $3.81 billion to $4.00 billion. There are no borrowings outstanding under the Revolving Credit Facility.


As a result of the incurrence of the Incremental Revolving Commitments, there are $3.43 billion commitments under the Tranche A Facility (as defined in the Revolving Credit Agreement (as defined below)), which are available to be drawn in US dollars, Euro and Sterling, and $570 million commitments under the Tranche B Facility (as defined in the Revolving Credit Agreement), which are available to be drawn in US dollars, Euro, Sterling, Yen, Singapore Dollars and Australian Dollars.

On September 26, 2018, the Company received consents from lenders under the existing Revolving Credit Agreement to extend the maturity of the commitments under the Revolving Credit Facility, including the Incremental Revolving Commitments (the “Extension”). The Extension will become effective on the anniversary of the closing date of the Revolving Credit Agreement on October 11, 2018. As a result of the Extension and the incurrence of the Incremental Revolving Commitments, $3.965 billion of the commitments under the Revolving Credit Agreement will mature on January 15, 2024 and $35 million of the commitments under the Revolving Credit Agreement will mature on January 15, 2021.

Terms and conditions of the Company’s existing revolving credit agreement (as amended, supplemented or otherwise modified from time to time, the “Revolving Credit Agreement”; and the unsecured revolving credit facility thereunder, the “Revolving Credit Facility”) by and among the Company (as successor to CSC), the subsidiary borrowers from time to time party thereto, the lenders from time to time party thereto, Citibank, N.A. (“Citibank”), as administrative agent, Citicorp International Limited, as tranche B sub-agent, and Citibank International PLC, London Branch, as swing line sub-agent, remain as previously described in (i) CSC’s current reports on Form 8-K filed with the Securities and Exchange Commission on October 17, 2013, June 21, 2016, September 29, 2016, February 23, 2017 and April 6, 2017 and (ii) the Company’s current report on Form 8-K filed with the Securities and Exchange Commission on April 6, 2017 and October 2, 2017.

The foregoing description of the Incremental Revolving Commitments is qualified in its entirety by reference to the Sixth Incremental Assumption Agreement, dated September 26, 2018, by and among the Company and the incremental lenders party thereto and consented to, with respect to the New Lender (as defined therein) only, by the Swing Line Banks (as defined in the Revolving Credit Agreement) party thereto and consented to, with respect to the New Lender only, and accepted by Citibank, as administrative agent, which is filed herewith as Exhibit 10.4 and incorporated herein by reference.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant.

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

Item 9.01.    Financial Statements and Exhibits

(d) The following exhibits are filed herewith.


 

Exhibit No.    

 

 

Description

 

10.1

 

 

Second Amendment to the Purchase and Sale Agreement dated as of September  24, 2018, among Computer Sciences Corporation, as Exiting Originator and Exiting Servicer, Alliance-One Services, Inc., CSC Agility Platform, Inc., CSC Consulting, Inc., CSC Cybertek Corporation, Mynd Corporation and PDA Software Services LLC, as Exiting Originators, DXC Technology Services LLC, as Originator, DXC Technology Company, as Servicer, and DXC Receivables LLC (f/k/a CSC Receivables LLC), as Buyer.

 

 

10.2

 

 

Fourth Amendment to the Receivables Purchase Agreement dated as of September  24, 2018, among Computer Sciences Corporation, as Exiting Servicer, DXC Receivables LLC (f/k/a CSC Receivables LLC), as seller, DXC Technology Company, as Servicer, the persons from time to time party thereto as Purchasers and group agents, and PNC Bank, National Association, as Administrative Agent.

 

 

10.3

 

 

Amended and Restated Performance Guaranty dated as of September  24, 2018, made by DXC Technology Company as Performance Guarantor in favor of PNC Bank, National Association, as Administrative Agent, for the benefit of the Secured Parties.

 

 

10.4

 

 

Sixth Incremental Assumption Agreement dated September  26, 2018, by and among the DXC Technology Company and the incremental lenders party thereto and consented to, with respect to the New Lender (as defined therein) only, by the Swing Line Banks (as defined in the Revolving Credit Agreement) party thereto and consented to, with respect to the New Lender only, and accepted by Citibank, as administrative agent.

 


SIGNATURES

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

 

         DXC TECHNOLOGY COMPANY

Dated:  September 27, 2018

     

By:

  

 /s/ Paul N. Saleh

     

 

Name:

  

 

 Paul N. Saleh

     

Title:

  

 Executive Vice President and Chief Financial Officer

Exhibit 10.1

SECOND AMENDMENT TO THE

PURCHASE AND SALE AGREEMENT

This SECOND AMENDMENT TO THE PURCHASE AND SALE AGREEMENT (this “ Amendment ”), dated as of September 24, 2018 (such date, the “ Second Amendment Effective Date ”), is entered into by and among the following parties:

 

  (i)

DXC TECHNOLOGY COMPANY, as Servicer (the “ Servicer ”);

 

  (ii)

COMPUTER SCIENCES CORPORATION, as Exiting Servicer (in such capacity, the “ Exiting Servicer ”) and an Exiting Originator;

 

  (iii)

DXC TECHNOLOGY SERVICES LLC, as remaining Originator under the Agreement described below (the “ Remaining Originator ”);

 

  (iv)

THE VARIOUS PARTIES LISTED ON THE SIGNATURE PAGES HERETO AS EXITING ORIGINATORS, as Exiting Originators (collectively, the “ Exiting Originator ” and each, an “ Exiting Originator ”, and together with the Remaining Originators, the “ Originators ”); and

 

  (v)

DXC RECEIVABLES LLC (F/K/A CSC RECEIVABLES LLC), as Buyer under the Agreement described below (the “ Buyer ”).

Capitalized terms used but not otherwise defined herein (including such terms used above) have the respective meanings assigned thereto in the Agreement described below.

BACKGROUND

A.        The Originators, the Servicer and the Buyer entered into that certain Purchase and Sale Agreement, dated as of December 21, 2016 (as amended, restated, supplemented or otherwise modified through the date hereof, the “ Agreement ”).

B.        Concurrently herewith, the Servicer, the Buyer, as seller, the Committed Purchasers, the Group Agents and the Administrative Agent are entering into that certain Fourth Amendment to the Receivables Purchase Agreement, dated as of the date hereof (the “ Receivables Purchase Agreement Amendment ”).

C.        The Exiting Originators desire to no longer be party to the Agreement as Originators on the Second Amendment Effective Date.

D.        The parties hereto desire to amend the Agreement as set forth herein.

NOW, THEREFORE, with the intention of being legally bound hereby, and in consideration of the mutual undertakings expressed herein, each party to this Amendment hereby agrees as follows:


SECTION 1.     Amendments to the Agreement . The Agreement is hereby amended as follows:

(a)        Each reference to “CSC Receivables LLC” (however defined or referenced) in the Agreement and its exhibits and in any related document or agreement shall be deemed to be a reference to “DXC Receivables LLC (f/k/a CSC Receivables LLC)”.

(b)        Each reference to “Computer Sciences Corporation” or “CSC” (however defined or referenced) in the Agreements and its exhibits and in any related document or agreement shall be deemed to be a reference to “DXC Technology Company” or “DXC”, as applicable.

(c)         Schedule I of the Agreement is hereby replaced in its entirety with the schedule attached hereto as Schedule I .

(d)         Schedule II of the Agreement is hereby replaced in its entirety with the schedule attached hereto as Schedule II .

(e)         Schedule III of the Agreement is hereby replaced in its entirety with the schedule attached hereto as Schedule III .

SECTION 2.     Release of Exiting Servicer; Joinder of Servicer .

(a)         Release of Exiting Servicer . The parties hereto hereby agree that upon the effectiveness of this Amendment, the Exiting Servicer shall no longer be a party to the Agreement or any other Transaction Document and shall no longer have any obligations or rights thereunder (other than such obligations which by their express terms survive termination of the Agreement or such other Transaction Document).

(b)         Delegation and Assumption of Exiting Servicer’s Obligations . Effective immediately prior to the removal of the Exiting Servicer as a party to the Agreement pursuant to clause (a)  above, the Exiting Servicer hereby delegates to the Servicer, and the Servicer hereby assumes, all of the Exiting Servicer’s duties, obligations and liabilities under the Agreement and each of the other Transaction Documents.

(c)         Joinder of Servicer. Effective as of the date hereof, the Servicer hereby becomes a party to the Agreement as the Servicer thereunder with all the rights, interests, duties and obligations of the Servicer set forth therein.

(d)         Consent . Each of the parties hereto acknowledges, consents and agrees to the joinder of the Servicer as a party to the Agreement pursuant to clause (c)  and waives any otherwise applicable conditions precedent thereto under the Agreement and the other Transactions Documents (other than as set forth herein).

SECTION 3.     Release of Exiting Originators . The parties hereto hereby agree that upon the effectiveness of this Amendment, each Exiting Originator shall no longer be a party to the Agreement or any other Transaction Document and shall no longer have any obligations or rights thereunder (other than such obligations which by their express terms survive termination of the Agreement or such other Transaction Document).

 

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SECTION 4.     Delegation and Assumption of Exiting Originators’ Obligations . Effective immediately prior to the removal of the Exiting Originators as parties to the Agreement pursuant to Section  3 above, each Exiting Originator hereby delegates to the Remaining Originator, and the Remaining Originator hereby assumes all of the Exiting Originators’ duties, obligations and liabilities, to the extent if any, under the Agreement and each of the other Transaction Documents.

SECTION 5.     Cancellation of Subordinated Notes . Each Exiting Originator represents and warrants to the other parties hereto that it (a) currently holds the Subordinated Note made by the Buyer to the Exiting Originator (collectively, the “ Exiting Originator Notes ” and each, an “ Exiting Originator Notes ”) and (b) has not sold, pledged, assigned, or otherwise transferred its respective Exiting Originator Note or any interest therein. Each Exiting Originator acknowledges and agrees that all the Buyer’s outstanding obligations (including, without limitation, any payment obligations) under its respective Exiting Originator Note have been finally and fully paid and performed on or prior to the Second Amendment Effective Date. The Exiting Originator Notes are hereby cancelled and shall have no further force or effect.

SECTION 6.     Representations and Warranties of the Remaining Originator and Servicer . The Remaining Originator and the Servicer hereby represent and warrant to each of the parties hereto as of the date hereof as follows:

(a)         Representations and Warranties . The representations and warranties made by such Person in the Agreement and each of the other Transaction Documents to which it is a party are true and correct as of the date hereof (unless such representations or warranties relate to an earlier date, in which case as of such earlier date).

(b)         Enforceability . The execution and delivery by it of this Amendment, and the performance of its obligations under this Amendment, the Agreement (as amended hereby) and the other Transaction Documents to which it is a party are within its organizational powers and have been duly authorized by all necessary action on its part, and this Amendment, the Agreement (as amended hereby) and the other Transaction Documents to which it is a party are (assuming due authorization and execution by the other parties thereto) its valid and legally binding obligations, enforceable in accordance with its terms, except (x) the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws from time to time in effect relating to creditors’ rights, and (y) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.

(c)         No Event of Default; No Purchase and Sale Termination Event . No Event of Termination, Unmatured Event of Termination, Non-Reinvestment Event, Unmatured Non-Reinvestment Event, Purchase and Sale Termination Event or Unmatured Purchase and Sale Termination Event has occurred and is continuing, or would occur as a result of this Amendment or the transactions contemplated hereby.

SECTION 7.     Effect of Amendment; Ratification . All provisions of the Agreement and the other Transaction Documents, as expressly amended and modified by this Amendment, shall remain in full force and effect. After this Amendment becomes effective, all references in the

 

3


Agreement (or in any other Transaction Document) to “this Purchase and Sale Agreement”, “this Agreement”, “hereof”, “herein” or words of similar effect referring to the Agreement shall be deemed to be references to the Agreement as amended by this Amendment. This Amendment shall not be deemed, either expressly or impliedly, to waive, amend or supplement any provision of the Agreement other than as set forth herein. The Agreement, as amended by this Amendment, is hereby ratified and confirmed in all respects.

SECTION 8.     Effectiveness . This Amendment shall become effective as of the Second Amendment Effective Date, concurrently with the effectiveness to the Receivables Purchase Agreement Amendment, upon the Administrative Agent’s receipt of counterparts to this Amendment executed by each of the parties hereto.

SECTION 9.     Severability . Any provisions of this Amendment 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 10.     Transaction Document . This Amendment shall be a Transaction Document for purposes of the Receivables Purchase Agreement.

SECTION 11.     Counterparts . This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute but one and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment by facsimile or e-mail transmission shall be effective as delivery of a manually executed counterpart hereof.

SECTION 12.     GOVERNING LAW AND JURISDICTION .

(a)        THIS AMENDMENT, INCLUDING THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT WITHOUT REGARD TO ANY OTHER CONFLICTS OF LAW PROVISIONS THEREOF).

(b)        EACH PARTY HERETO HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY NEW YORK STATE OR FEDERAL COURT SITTING IN NEW YORK CITY, NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AMENDMENT, AND EACH PARTY HERETO HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. THE PARTIES HERETO HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT THEY MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING. THE PARTIES HERETO AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL

 

4


BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.

SECTION 13. Section Headings . The various headings of this Amendment are included for convenience only and shall not affect the meaning or interpretation of this Amendment, the Agreement or any provision hereof or thereof.

[S IGNATURE P AGES F OLLOW ]

 

5


IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first written above.

 

DXC RECEIVABLES LLC,

as Buyer

By:   /s/ H.C. Charles Diao
      Name: H.C. Charles Diao
      Title: President and Treasurer

 

DXC TECHNOLOGY COMPANY,

as Servicer

By:   /s/ H.C. Charles Diao
      Name: H.C. Charles Diao
 

    Title: Vice President, Finance and

    Corporate Treasurer

 

DXC TECHNOLOGY SERVICES LLC,

as the Remaining Originator

By:   /s/ H.C. Charles Diao
      Name: H.C. Charles Diao
      Title: President and Treasurer

 

6


ALLIANCE-ONE SERVICES, INC.,

as an Exiting Originator

By:   /s/ Phillip Ratcliff
      Name: Phillip Ratcliff
      Title: President

 

MYND CORPORATION,

as an Exiting Originator

By:   /s/ H.C. Charles Diao
      Name: H.C. Charles Diao
      Title: President and Treasurer

 

PDA SOFTWARE SERVICES LLC,

as an Exiting Originator

By:   /s/ H.C. Charles Diao
      Name: H.C. Charles Diao
      Title: President and Treasurer

 

7


CSC CYBERTEK CORPORATION,

as an Exiting Originator

By:   /s/ H.C. Charles Diao
      Name: H.C. Charles Diao
      Title: President and Treasurer

 

CSC AGILITY PLATFORM, INC.,

as an Exiting Originator

By:   /s/ H.C. Charles Diao
      Name: H.C. Charles Diao
      Title: President and Treasurer

 

CSC CONSULTING, INC.,

as an Exiting Originator

By:   /s/ H.C. Charles Diao
      Name: H.C. Charles Diao
      Title: President and Treasurer

 

8


COMPUTER SCIENCES CORPORATION,

as the Exiting Servicer and an Exiting Originator

By:   /s/ H.C. Charles Diao
      Name: H.C. Charles Diao
      Title: President and Treasurer

 

9


Acknowledged by:

PNC BANK, NATIONAL ASSOCIATION

as Administrative Agent

By:   /s/ Christopher Blaney
Name:   Christopher Blaney
Title:   Senior Vice President

PNC BANK, NATIONAL ASSOCIATION,

as Group Agent for its Purchaser Group

By:   /s/ Christopher Blaney
Name:   Christopher Blaney
Title:   Senior Vice President

 

10


WELLS FARGO, NATIONAL ASSOCIATION,

as Group Agent for its Purchaser Group

 

By:   /s/ Eero Maki
Name:   Eero Maki
Title:   Managing Director

 

11


MUFG BANK, LTD.,

as Group Agent for its Purchaser Group

By:   /s/ Eric Williams
Name:   Eric Williams
Title:   Managing Director

 

12


FIFTH THIRD BANK,

as Group Agent for its Purchaser Group

By:     /s/ Patrick Berning
Name:   Patrick Berning
Title:   Principal

 

13


MIZUHO BANK, LTD.,

as Group Agent for its Purchaser Group

By:     /s/ Richard A. Burke
Name:   Richard A. Burke
Title:   Managing Director

 

14


THE TORONTO DOMINION BANK,

as Group Agent for its Purchaser Group

By:     /s/ Bradley Purkis
Name:   Bradley Purkis
Title:   Managing Director

 

 

15


Schedule I

LIST AND LOCATION OF EACH ORIGINATOR

 

Originator

 

 

Location

 

  DXC Technology Services LLC

  Delaware

 

 

16


Schedule II

LOCATION OF BOOKS AND RECORDS OF ORIGINATORS

 

Originator   Location of Books and Records

  DXC Technology Services LLC

  1775 Tysons Boulevard, Tysons, VA 22102

 

 

17


Schedule III

TRADE NAMES

DXC Technology Services LLC

None

 

 

18

Exhibit 10.2

FOURTH AMENDMENT TO THE

RECEIVABLES PURCHASE AGREEMENT

This FOURTH AMENDMENT TO THE RECEIVABLES PURCHASE AGREEMENT (this “ Amendment ”), dated as of September 24, 2018, is entered into by and among the following parties:

 

  (i)

DXC RECEIVABLES LLC (F/K/A CSC RECEIVABLES LLC), a Delaware limited liability company, as Seller (the “ Seller ”);

 

  (ii)

DXC TECHNOLOGY COMPANY, a Nevada corporation, as Servicer (the “ Servicer ”);

 

  (iii)

COMPUTER SCIENCES CORPORATION, a Nevada corporation, as Exiting Servicer (the “ Exiting Servicer ”);

 

  (iv)

PNC BANK, NATIONAL ASSOCIATION, as a Committed Purchaser, as Group Agent for its Purchaser Group and as Administrative Agent (in such capacity, the “ Administrative Agent ”);

 

  (v)

WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Committed Purchaser and as Group Agent for its Purchaser Group;

 

  (vi)

MUFG BANK, LTD. (F/K/A THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.), as a Committed Purchaser and as Group Agent for its Purchaser Group;

 

  (vii)

FIFTH THIRD BANK, as a Committed Purchaser and as Group Agent for its Purchaser Group;

 

  (viii)

MIZUHO BANK, LTD., as a Committed Purchaser and as Group Agent for its Purchaser Group; and

 

  (ix)

THE TORONTO DOMINION BANK, as a Committed Purchaser and as Group Agent for its Purchaser Group.

Capitalized terms used but not otherwise defined herein (including such terms used above) have the respective meanings assigned thereto in the Receivables Purchase Agreement described below.

BACKGROUND

A.    The parties hereto (other than the Servicer) have entered into a Receivables Purchase Agreement, dated as of December 21, 2016 (as amended, restated, supplemented or otherwise modified through the date hereof, the “ Receivables Purchase Agreement ”).

B.    Concurrently herewith, the Seller, as buyer, the Servicer, the originators that are party thereto, the Exiting Servicer and Alliance-One Services, Inc., CSC Agility Platform, Inc., CSC Consulting, Inc., CSC Cybertek Corporation, Mynd Corporation and PDA Software


Services LLC (collectively, the “ Exiting Originators ”), are entering into that certain Second Amendment to the Purchase and Sale Agreement, dated as of the date hereof (the “ Purchase and Sale Agreement Amendment ”).

C.      Concurrently herewith, DXC Technology Company, a Nevada corporation, as Performance Guarantor, is entering into that certain Amended and Restated Performance Guaranty, dated as of the date hereof (the “ Amended Performance Guaranty ”).

D.      Concurrently herewith, the parties hereto (other than the Exiting Servicer) and PNC Capital Markets LLC, as Structuring Agent, are entering into that certain Fourth Amended and Restated Fee Letter, dated as of the date hereof (the “ Amended Fee Letter ”).

E.      Concurrently herewith, the Seller, the Servicer, the Administrative Agent and PNC Bank, National Association, as blocked account bank, are entering into that certain Amended and Restated Deposit Account Control Agreement, dated as of the date hereof (the “ Amended Deposit Account Control Agreement ”).

F.      Concurrently herewith, the Exiting Originators and the Seller, are entering into that certain Assignment Agreement, dated as of the date hereof (the “ Assignment Agreement ”), whereby the Seller agrees to sell outstanding Receivables originated by the Exiting Originators to the Exiting Originators.

G.      Concurrently herewith, DXC Technology Services LLC, a Delaware limited liability company (“ DXC Technology Services ”), as purchaser, and the Exiting Servicer, as seller, are entering into that certain Membership Interest Purchase Agreement, dated as of the date hereof (the “ Membership Interest Purchase Agreement ”) whereby the Exiting Servicer agrees to sell to DXC Technology Services, and DXC Technology Services has agreed to purchase from the Exiting Servicer all of the issued and outstanding membership interest of the Seller.

H.      Concurrently herewith, DXC Technology Services, as member, and the board of directors of the Seller are entering into that certain Amended and Restated Limited Liability Company Agreement, dated as of the date hereof (the “ Amended LLC Agreement ”, together with the Member Interest Purchase Agreement, Purchase and Sale Agreement Amendment, Amended Performance Guaranty, Amended Fee Letter, Amended Deposit Account Control Agreement and Assignment Agreement, the “ Amended Documents ”).

I.       Effective as of the date hereof (such date, the “ Subject Name Change Date ”), the Seller amended its name from “CSC Receivables LLC” to “DXC Receivables LLC” (such name change, the “ Subject Name Change ”).

J.       The parties hereto desire to amend the Receivables Purchase Agreement as set forth herein.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

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SECTION 1.     Release of Exiting Servicer; Joinder of Servicer .

(a)       Release of Exiting Servicer . The parties hereto hereby agree that upon the effectiveness of this Amendment, the Exiting Servicer shall no longer be a party to the Receivables Purchase Agreement or any other Transaction Document and shall no longer have any obligations or rights thereunder (other than such obligations which by their express terms survive termination of the Receivables Purchase Agreement or such other Transaction Document).

(b)       Delegation and Assumption of Exiting Servicer’s Obligations . Effective immediately prior to the removal of the Exiting Servicer as a party to the Receivables Purchase Agreement pursuant to clause (a)  above, the Exiting Servicer hereby delegates to the Servicer, and the Servicer hereby assumes, all of the Exiting Servicer’s duties, obligations and liabilities under the Receivables Purchase Agreement and each of the other Transaction Documents.

(c)       Joinder of Servicer. Effective as of the date hereof, the Servicer hereby becomes a party to the Receivables Purchase Agreement as the Servicer thereunder with all the rights, interests, duties and obligations of the Servicer set forth therein.

(d)       Consent . Each of the parties hereto acknowledges, consents and agrees to the joinder of the Servicer as a party to the Receivables Purchase Agreement pursuant to clause (c)  and waives any otherwise applicable conditions precedent thereto under the Receivables Purchase Agreement and the other Transactions Documents (other than as set forth herein).

SECTION 2.     Notices and Consents .

(a)       Notice of Name Change . The Seller hereby provides notice of the Subject Name Change on the Subject Name Change Date and requests that each of the parties hereto acknowledge and consent to the Subject Name Change effective as of the Subject Name Change Date.

(b)       Consent to Subject Name Change . Each of the parties hereto acknowledges, consents and agrees to the Subject Name Change as of the Subject Name Change Date and waives any otherwise applicable conditions precedent thereto under the Receivables Purchase Agreement and the other Transactions Documents (other than as set forth herein).

(c)       Notice of Amendments to Transaction Documents . The Seller hereby provides notice of its entry into the Amended Documents along with duly executed copies of each Amended Document and requests that each of the parties hereto acknowledge and consent to the execution of the Amended Documents.

(d)       Consent to Amended Documents . Each of the parties hereto acknowledges, consents and agrees to the terms of each of the Amended Documents and waives any otherwise applicable conditions precedent thereto under the Receivables Purchase Agreement and the other Transactions Documents (other than as set forth herein).

 

3


SECTION 3.     Amendments to the Receivables Purchase Agreement .

(a)      The Receivables Purchase Agreement is hereby amended to incorporate the changes shown on the marked pages of the Receivables Purchase Agreement attached hereto as Exhibit A .

(b)       Exhibit F of the Receivables Purchase Agreement is hereby replaced in its entirety with the exhibit attached hereto as Exhibit F .

SECTION 3.     Representations and Warranties of the Seller and Servicer . Each of the Seller and the Servicer hereby represents and warrants, as to itself, to the Administrative Agent, each Purchaser and each Group Agent, as follows:

(a)       Representations and Warranties . Immediately after giving effect to this Amendment, the representations and warranties made by such Person in the Transaction Documents to which it is a party are true and correct as of the date hereof (unless stated to relate solely to an earlier date, in which case such representations or warranties were true and correct as of such earlier date).

(b)       Enforceability . This Amendment and each other Transaction Document to which it is a party, as amended hereby, constitute the legal, valid and binding obligation of such Person enforceable against such Person in accordance with its respective terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity, regardless of whether enforceability is considered in a proceeding in equity or at law.

(c)       No Termination Event . No event has occurred and is continuing, or would result from the transactions contemplated hereby, that constitutes an Event of Termination, Non-Reinvestment Event, Unmatured Event of Termination or Unmatured Non-Reinvestment Event.

SECTION 4.     Effect of Amendment . All provisions of the Receivables Purchase Agreement and the other Transaction Documents, as expressly amended and modified by this Amendment, shall remain in full force and effect. After this Amendment becomes effective, all references in the Receivables Purchase Agreement (or in any other Transaction Document) to “this Receivables Purchase Agreement”, “this Agreement”, “hereof”, “herein” or words of similar effect referring to the Receivables Purchase Agreement shall be deemed to be references to the Receivables Purchase Agreement as amended by this Amendment. This Amendment shall not be deemed, either expressly or impliedly, to waive, amend or supplement any provision of the Receivables Purchase Agreement other than as set forth herein.

SECTION 5.     Effectiveness . This Amendment shall become effective as of the date hereof upon the satisfaction of the following conditions precedent:

(a)       Execution of Amendment . The Administrative Agent shall have received counterparts duly executed by each of the parties hereto.

(b)       Execution of Amended Documents . The Administrative Agent shall have received counterparts of each Amended Document duly executed by each of the parties thereto.

 

4


(c)       Opinions of Counsel; Officer’s Certificates, Etc . The Administrative Agent shall have received such opinions of counsel, documents, officer’s certificates, certificates of good standing, financing statement amendments and lien search results as it may reasonably request.

SECTION 6.     Counterparts . This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute but one and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment by facsimile or e-mail transmission shall be effective as delivery of a manually executed counterpart hereof.

SECTION 7.     GOVERNING LAW . THIS AMENDMENT, INCLUDING THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT WITHOUT REGARD TO ANY OTHER CONFLICTS OF LAW PROVISIONS THEREOF).

SECTION 8.     Section Headings . The various headings of this Amendment are included for convenience only and shall not affect the meaning or interpretation of this Amendment, the Receivables Purchase Agreement or any provision hereof or thereof.

[Signature Pages Follow.]

 

5


IN WITNESS WHEREOF, the parties hereto have executed this Amendment by their duly authorized officers as of the date first above written.

 

DXC RECEIVABLES LLC,

as Seller

By: /s/ H.C. Charles Diao
Name: H.C. Charles Diao
Title:   President and Treasurer

 

DXC TECHNOLOGY COMPANY,

as Servicer

By: /s/ H.C. Charles Diao
Name: H.C. Charles Diao
Title:   Vice President, Finance and Corporate
Treasurer

 

6


PNC BANK, NATIONAL ASSOCIATION,

as Administrative Agent

By: /s/ Christopher Blaney
Name: Christopher Blaney
Title: Senior Vice President

 

PNC BANK, NATIONAL ASSOCIATION,

as a Committed Purchaser

By: /s/ Christopher Blaney
Name: Christopher Blaney
Title: Senior Vice President

 

PNC BANK, NATIONAL ASSOCIATION,

as Group Agent for its Purchaser Group

By: /s/ Christopher Blaney
Name: Christopher Blaney
Title: Senior Vice President

 

7


WELLS FARGO, NATIONAL

ASSOCIATION, as a Committed Purchaser

By: /s/ Eero Maki
Name: Eero Maki
Title: Managing Director

 

WELLS FARGO, NATIONAL

ASSOCIATION,

as Group Agent for its Purchaser Group

By: /s/ Eero Maki
Name: Eero Maki
Title: Managing Director

 

8


MUFG BANK, LTD.,

as a Committed Purchaser

By: /s/ Eric Williams
Name: Eric Williams
Title: Managing Director

 

MUFG BANK, LTD.,
as Group Agent for its Purchaser Group
By: /s/ Eric Williams
Name: Eric Williams
Title: Managing Director

 

9


FIFTH THIRD BANK,

as a Committed Purchaser

By: /s/ Patrick Berning
Name: Patrick Berning
Title: Principal

 

FIFTH THIRD BANK,

as Group Agent for its Purchaser Group

By: /s/ Patrick Berning
Name: Patrick Berning
Title: Principal

 

10


MIZUHO BANK, LTD.,

as a Committed Purchaser

By: /s/ Richard A. Burke
Name: Richard A. Burke
Title: Managing Director

 

MIZUHO BANK, LTD.,

as Group Agent for its Purchaser Group

By: /s/ Richard A. Burke
Name: Richard A. Burke
Title: Managing Director

 

11


THE TORONTO DOMINION BANK,

as a Committed Purchaser

By: /s/ Bradley Purkis
Name: Bradley Purkis
Title: Managing Director

 

THE TORONTO DOMINION BANK,

as Group Agent for its Purchaser Group

By: /s/ Bradley Purkis
Name: Bradley Purkis
Title: Managing Director

 

12


COMPUTER SCIENCES CORPORATION,

as Exiting Servicer

By: /s/ H.C. Charles Diao
Name: H.C. Charles Diao
Title:   President and Treasurer

 

13


Exhibit A

AMENDMENT TO RECEIVABLES PURCHASE AGREEMENT

 

 

14


Exhibit A to the Third Fourth Amendment, dated as of August   22, September 24, 2018

Conformed through the Fourth Amendment, dated as of September 24, 2018

Conformed through the Third Amendment, dated as of August 22, 2018

Conformed through Second Amendment, dated as of September 15, 2017

Conformed through First Amendment, dated as of January 24, 2017

EXECUTION VERSION

RECEIVABLES PURCHASE AGREEMENT

Dated as of December 21, 2016

by and among

CSC DXC RECEIVABLES LLC,

as Seller,

THE PERSONS FROM TIME TO TIME PARTY HERETO,

as Purchasers and as Group Agents,

PNC BANK, NATIONAL ASSOCIATION,

as Administrative Agent,

COMPUTER SCIENCES CORPORATION, DXC TECHNOLOGY COMPANY,

as initial Servicer,

and

PNC CAPITAL MARKETS LLC,

as Structuring Agent


TABLE OF CONTENTS

 

                 Page
ARTICLE I    DEFINITIONS    1

SECTION

   1.01.      Certain Defined Terms    1

SECTION

   1.02.      Other Interpretative Matters    32
ARTICLE II    TERMS OF THE PURCHASES AND INVESTMENTS    33

SECTION

   2.01.      Purchase Facility    33

SECTION

   2.02.      Making Investments; Return of Capital    35

SECTION

   2.03.      Yield and Fees    37

SECTION

   2.04.      Records of Investments and Capital    37

SECTION

   2.05.      Selection of Yield Rates    37

SECTION

   2.06.      Defaulting Purchasers and Exiting Purchasers    38

SECTION

   2.07.      Increase in Facility Limit    39
ARTICLE III    NON-REINVESTMENT EVENTS    39

SECTION

   3.01.      Non-Reinvestment Events    39
ARTICLE IV    SETTLEMENT PROCEDURES AND PAYMENT PROVISIONS    40

SECTION

   4.01.      Settlement Procedures    40

SECTION

   4.02.      Payments and Computations, Etc    43
ARTICLE V    INCREASED COSTS; FUNDING LOSSES; TAXES; ILLEGALITY   
     AND BACK-UP SECURITY INTEREST    44

SECTION

   5.01.      Increased Costs    44

SECTION

   5.02.      Funding Losses    46 45

SECTION

   5.03.      Taxes    46

SECTION

   5.04.      Inability to Determine Adjusted LIBOR or LMIR; Change in Legality    50

SECTION

   5.05.      Back-Up Security Interest    51

SECTION

   5.06.      Successor Adjusted LIBOR or LMIR Index    52
ARTICLE VI    CONDITIONS TO EFFECTIVENESS AND INVESTMENTS    53

SECTION

   6.01.      Conditions Precedent to Effectiveness and the Initial Investment    53

SECTION

   6.02.      Conditions Precedent to All Investments    53

SECTION

   6.03.      Conditions Precedent to All Releases    54
ARTICLE VII    REPRESENTATIONS AND WARRANTIES    55

 

- i-


TABLE OF CONTENTS

(continued)

 

             Page  

SECTION

   7.01.      Representations and Warranties of the Seller      55  

SECTION

   7.02.      Representations and Warranties of the Servicer      60  
ARTICLE VIII    COVENANTS      65  

SECTION

   8.01.      Covenants of the Seller      65  

SECTION

   8.02.      Covenants of the Servicer      73 72  

SECTION

   8.03.      Separate Existence of the Seller      79  
ARTICLE IX    ADMINISTRATION AND COLLECTION OF RECEIVABLES      83 82  

SECTION

   9.01.      Appointment of the Servicer      83 82  

SECTION

   9.02.      Duties of the Servicer      84  

SECTION

   9.03.      Blocked Account Arrangements      85 84  

SECTION

   9.04.      Enforcement Rights      85  

SECTION

   9.05.      Responsibilities of the Seller      86  

SECTION

   9.06.      Servicing Fee      87  
ARTICLE X    EVENTS OF TERMINATION      87  

SECTION

   10.01.      Events of Termination      87  
ARTICLE XI    THE ADMINISTRATIVE AGENT      91 90  

SECTION

   11.01.      Authorization and Action      91 90  

SECTION

   11.02.      Administrative Agent’s Reliance, Etc      91  

SECTION

   11.03.      Administrative Agent and Affiliates      91  

SECTION

   11.04.      Indemnification of Administrative Agent      92 91  

SECTION

   11.05.      Delegation of Duties      92  

SECTION

   11.06.      Action or Inaction by Administrative Agent      92  

SECTION

   11.07.      Notice of Events of Termination or Non-Reinvestment   
        Events; Action by Administrative Agent      92  

SECTION

   11.08.      Non-Reliance on Administrative Agent and Other Parties      93 92  

SECTION

   11.09.      Successor Administrative Agent      93  

SECTION

   11.10.      Structuring Agent      94 93  
ARTICLE XII    THE GROUP AGENTS      94  

SECTION

   12.01.      Authorization and Action      94  

SECTION

   12.02.      Group Agent’s Reliance, Etc      94  

 

- ii-


TABLE OF CONTENTS

(continued)

 

             Page  

SECTION

   12.03.      Group Agent and Affiliates      95 94  

SECTION

   12.04.      Indemnification of Group Agents      95  

SECTION

   12.05.      Delegation of Duties      95  

SECTION

   12.06.      Notice of Events of Termination and Non-Reinvestment   
        Events      95  

SECTION

   12.07.      Non-Reliance on Group Agent and Other Parties      96 95  

SECTION

   12.08.      Successor Group Agent      96  

SECTION

   12.09.      Reliance on Group Agent      96  
ARTICLE XIII    INDEMNIFICATION      96  

SECTION

   13.01.      Indemnities by the Seller      96  

SECTION

   13.02.      Indemnification by the Servicer      99  
ARTICLE XIV    MISCELLANEOUS      101 100  

SECTION

   14.01.      Amendments, Etc      101 100  

SECTION

   14.02.      Notices, Etc      102 101  

SECTION

   14.03.      Assignability; Addition of Purchasers      102  

SECTION

   14.04.      Costs and Expenses      105  

SECTION

   14.05.      No Proceedings; Limitation on Payments      106 105  

SECTION

   14.06.      Confidentiality      106  

SECTION

   14.07.      GOVERNING LAW      108  

SECTION

   14.08.      Execution in Counterparts      108  

SECTION

   14.09.      Integration; Binding Effect; Survival of Termination      108  

SECTION

   14.10.      CONSENT TO JURISDICTION      109 108  

SECTION

   14.11.      WAIVER OF JURY TRIAL      109  

SECTION

   14.12.      Ratable Payments      109  

SECTION

   14.13.      Limitation of Liability      110 109  

SECTION

   14.14.      Intent of the Parties      110  

SECTION

   14.15.      USA Patriot Act      110  

SECTION

   14.16.      Right of Setoff      111 110  

SECTION

   14.17.      Severability      111  

SECTION

   14.18.      Mutual Negotiations      111  

 

-iii-


This RECEIVABLES PURCHASE AGREEMENT (as amended, restated, supplemented or otherwise modified from time to time, this “ Agreement ”) is entered into as of December 21, 2016 by and among the following parties:

(i)     CSC DXC RECEIVABLES LLC, a Delaware limited liability company, as Seller (together with its successors and assigns, the “ Seller ”);

(ii)    the Persons from time to time party hereto as Purchasers and as Group Agents;

(iii)     PNC BANK, NATIONAL ASSOCIATION (“ PNC ”), as Administrative Agent;

(iv)     COMPUTER SCIENCES CORPORATION DXC TECHNOLOGY COMPANY , a Nevada corporation, in its individual capacity (“ CSC DXC ”) and as initial Servicer (in such capacity, together with its successors and assigns in such capacity, the “ Servicer ”); and

(v)    PNC CAPITAL MARKETS LLC, a Pennsylvania limited liability company, as Structuring Agent.

PRELIMINARY STATEMENTS

The Seller has acquired, and will acquire from time to time, Receivables from the Originator(s) pursuant to the Purchase and Sale Agreement. The Seller desires to sell the Receivables to the Purchasers and, in connection therewith, has requested that the Purchasers make Investments from time to time, on the terms, and subject to the conditions, set forth herein.

In consideration of the mutual agreements, provisions and covenants contained herein, the sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

SECTION 1.01. Certain Defined Terms . As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):

Account Control Agreement ” means each agreement, in form and substance satisfactory to the Administrative Agent, among the Seller, the Servicer (if applicable), the Administrative Agent and a Blocked Account Bank, governing the terms of the related Blocked Accounts, that (i) provides the Administrative Agent with control within the meaning of the UCC over the deposit accounts subject to such agreement and (ii) by its terms, may not be terminated or canceled by the related Blocked Account Bank without the written consent of the Administrative Agent or upon no less than thirty (30) days prior written notice to the Administrative Agent.


Capital ” means, with respect to any Purchaser, the aggregate amounts paid to, or on behalf of, the Seller in connection with all Investments made by such Purchaser pursuant to Article II , as reduced from time to time by Collections distributed and applied on account of reducing, returning or repaying such Capital pursuant to Section  2.02(d) or Section  4.01 ; provided , that if such Capital shall have been reduced by any distribution and thereafter all or a portion of such distribution is rescinded or must otherwise be returned for any reason, such Capital shall be increased by the amount of such rescinded or returned distribution as though it had not been made.

Capital Coverage Amount ” means, at any time of determination, the amount equal to (a) the Net Receivables Pool Balance at such time minus (b) the Total Reserves at such time.

Capital Coverage Deficit ” means, at any time of determination, the amount, if any, by which (a) the Aggregate Capital at such time exceeds (b) the Capital Coverage Amount at such time.

Capital Stock ” means, with respect to any Person, any and all common shares, preferred shares, interests, participations, rights in or other equivalents (however designated) of such Person’s capital stock, partnership interests, limited liability company interests, membership interests or other equivalent interests and any rights (other than debt securities convertible into or exchangeable for capital stock), warrants or options exchangeable for or convertible into such capital stock or other equity interests.

Change in Control ” means the occurrence of any of the following:

(a)     CSC DXC Technology Services LLC ceases to own, directly, 100% of the issued and outstanding Capital Stock of the Seller free and clear of all Adverse Claims;

(b)    Parent ceases to own, directly or indirectly, 100% of the issued and outstanding Capital Stock of any Originator (except with respect to any senior participating preferred shares issued by CSC Consulting, Inc.) free and clear of all Adverse Claims;

(c)    any Subordinated Note shall at any time cease to be owned by an Originator, free and clear of all Adverse Claims; or

(d)    with respect to Parent, the acquisition by any Person or two or more Persons acting in concert of beneficial ownership (within the meaning of Rule 13d-3 of the SEC under the Securities Exchange Act of 1934, as amended), directly or indirectly, of securities of Parent (or other securities convertible into such securities) representing 35% or more of the combined voting power of all securities of Parent entitled to vote in the election of directors, other than securities having such power only by reason of the happening of a contingency; provided that if Parent shall become a wholly owned Subsidiary of a publicly owned Person whose beneficial ownership is, immediately after Parent shall become such a wholly owned subsidiary of such Person, substantially identical to that of Parent immediately prior to such circumstance (a “ Holding Company ”), such circumstance shall not be a Change in Control as defined herein unless

 

5


the beneficial ownership of such Holding Company shall be acquired as set forth in this clause (d) .

provided , that the Subject HP Merger shall not constitute a Change in Control pursuant to this clause (d) .

Change in Law ” means the occurrence, after the Closing Date, of any of the following: (a)    the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (w) the final rule titled Risk-Based Capital Guidelines; Capital Adequacy Guidelines; Capital Maintenance: Regulatory Capital; Impact of Modifications to Generally Accepted Accounting Principles; Consolidation of Asset-Backed Commercial Paper Programs; and Other Related Issues , adopted by the United States bank regulatory agencies on December 15, 2009, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to the agreements reached by the Basel Committee on Banking Supervision in “Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems” (as amended, supplemented or otherwise modified or replaced from time to time), shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.

Closing Date ” means December 21, 2016.

Code ” means the Internal Revenue Code of 1986, as amended, reformed or otherwise modified from time to time.

Collection Account ” means each account listed on Schedule II-A to this Agreement (as such schedule may be modified from time to time in connection with the closing or opening of any Collection Account in accordance with the terms hereof) (in each case, in the name of the applicable Originator identified on Schedule II-A ) and maintained at a bank or other financial institution acting as a Collection Account Bank for the purpose of receiving Collections.

Collection Account Bank ” means any of the banks or other financial institutions holding one or more Collection Accounts.

Collections ” means, with respect to any Pool Receivable: (a) all funds that are received by any Originator, the Seller, the Servicer or any other Person on their behalf in payment of any amounts owed in respect of such Pool Receivable (including purchase price for goods or services under the related Contract, finance charges, interest and all other charges), or applied to amounts owed in respect of such Pool Receivable (including insurance payments and net proceeds of the sale or other disposition of repossessed goods or other collateral or property of the related Obligor or any other Person directly or indirectly liable for the payment of such Pool Receivable

 

6


and available to be applied thereon), (b) all Deemed Collections, (c) all proceeds of all Related Security with respect to such Pool Receivable and (d) all other proceeds of such Pool Receivable.

Commitment ” means, with respect to any Committed Purchaser (including a Related Committed Purchaser), the maximum aggregate amount of Capital which such Person is obligated to pay hereunder on account of all Investments, on a combined basis, as set forth on Schedule I or in the Assumption Agreement or other agreement pursuant to which it became a Purchaser, as such amount may be modified in connection with any subsequent assignment pursuant to Section  14.03 or in connection with a reduction in the Facility Limit pursuant to Section  2.02(e) . If the context so requires, “Commitment” also refers to a Committed Purchaser’s obligation to fund Investments hereunder in accordance with this Agreement.

Committed Purchasers ” means PNC and each other Person that is or becomes a party to this Agreement in the capacity of a “Committed Purchaser”.

Concentration Percentage ” means (i) for any Group A Obligor, 15.00%, (ii) for any Group B Obligor, 12.50%, (iii) for any Group C Obligor, 7.50%, (iv) for the Group D Obligor (together with its Affiliates) with the largest Obligor Percentage of all Group D Obligors, 7.00% and (v) for any other Group D Obligor, 4.00%.

Concentration Reserve Percentage ” means the largest of: (a) the sum of the four (4) largest Obligor Percentages of the Group D Obligors, (b) the sum of the two (2) largest Obligor Percentages of the Group C Obligors and (c) the largest Obligor Percentage of the Group B Obligors.

Conduit Purchaser ” means each commercial paper conduit that is or becomes a party to this Agreement in the capacity of a “Conduit Purchaser”.

Contract ” means, with respect to any Receivable, any and all contracts, instruments, agreements, leases, invoices, notes or other writings (including an agreement evidenced by a purchase order or similar document) pursuant to which such Receivable arises or that evidence such Receivable or under which an Obligor becomes or is obligated to make payment in respect of such Receivable.

Controlled Group ” means all members of a controlled group of corporations or other business entities and all trades or businesses (whether or not incorporated) under common control which, together with Parent or any of its Subsidiaries, are treated as a single employer under Section 414 of the Code.

Credit Agreement ” means that certain Amended and Restated Credit Agreement, dated as of October 11, 2013, by and among CSC Computer Sciences Corporation, as borrower , the financial institutions listed therein as lenders and Citibank, N.A., as administrative agent for the lenders thereunder, as amended by Amendment No. 1 to the Credit Agreement, dated as of April 21, 2016 and Amendment No. 2 to the Credit Agreement, dated as of June 21, 2016, as supplemented by Incremental Assumption Agreement, dated as of June 15, 2016, Second Incremental Assumption Agreement, dated as of July 25, 2016 and Third Incremental Assumption Agreement, dated as of December 30, 2016, as further amended and assigned by

 

7


CSC Computer Sciences Corporation to DXC by Waiver and Amendment No. 3 to the Credit Agreement, dated as of February 17, 2017, and as further amended, restated, supplemented or otherwise modified prior to the date hereof, as further supplemented by that certain Fourth Incremental Assumption Agreement, dated as of April 3, 2017, and as further supplemented by that certain Fifth Incremental Assumption Agreement, dated as of September 27, 2017 (and as further amended, restated, supplemented or otherwise modified from time to time).

Credit and Collection Policy ” means, as the context may require, those receivables credit and collection policies and practices of the Originators in effect on the Closing Date and described in Exhibit E , as modified in compliance with this Agreement.

Credit Risk Retention Rules ” means (i) Section 15G of the Securities Exchange Act of 1934, as amended, and (ii) Articles 404-410 of the EU Capital Requirements Regulation (including Article 122a of the Banking Consolidation Directive), in each case, together with the rules and regulations thereunder.

Days’ Sales Outstanding ” means, for any Fiscal Month, an amount computed as of the last day of such Fiscal Month equal to: (a) the average of the Outstanding Balance of all Pool Receivables (other than Unbilled Receivables) as of the last day of each of the three most recent Fiscal Months ended on the last day of such Fiscal Month, divided by (b) (i) the aggregate initial Outstanding Balance of all Pool Receivables (other than Unbilled Receivables) generated by the Originators during the three most recent Fiscal Months ended on the last day of such Fiscal Month, divided by (ii) 90.

Debt ” means, as to any Person at any time of determination, any and all indebtedness, obligations or liabilities (whether matured or unmatured, liquidated or unliquidated, direct or indirect, absolute or contingent, or joint or several) of such Person for or in respect of: (i) borrowed money, (ii) amounts raised under or liabilities in respect of any bonds, debentures, notes, note purchase, acceptance or credit facility, or other similar instruments or facilities, (iii) reimbursement obligations (contingent or otherwise) under any letter of credit, (iv) any other transaction (including production payments (excluding royalties), installment purchase agreements, forward sale or purchase agreements, capitalized leases and conditional sales agreements) having the commercial effect of a borrowing of money entered into by such Person to finance its operations or capital requirements (but not including accounts payable incurred in the ordinary course of such Person’s business payable on terms customary in the trade), (v) all net obligations of such Person in respect of interest rate or currency hedges or (vi) any Guaranty of any such Debt; provided , that “Debt” shall not include borrowings against the cash surrender value of life insurance policies covering employees of any Person so long as (A) recourse of such borrowings is limited to such policies and the proceeds thereof and (B) any value assigned to such policies on the consolidated financial statements of such Person is net of the amount of such borrowings.

Deemed Collections ” has the meaning set forth in Section  4.01(d) .

Default Ratio ” means the ratio (expressed as a percentage and rounded to the nearest 1/100 of 1%, with 5/1000th of 1% rounded upward) computed as of the last day of each Fiscal Month by dividing :            (a) the aggregate Outstanding Balance of all Pool Receivables that first

 

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Event of Termination ” has the meaning specified in Section  10.01 . For the avoidance of doubt, any Event of Termination that occurs shall be deemed to be continuing at all times thereafter unless and until waived in accordance with Section  14.01 .

Everett means Everett Spinco, Inc., a Delaware corporation with Federal Employer Identification Number 61-1800317.

Excess Concentration ” means the sum of the following amounts, without duplication:

(a)     the sum of the amounts calculated for each of the Obligors equal to the excess (if any) of (i) aggregate Outstanding Balance of the Eligible Receivables of such Obligor, over (ii) the product of (x) such Obligor’s Concentration Percentage, multiplied by (y) the aggregate Outstanding Balance of all Eligible Receivables; plus

(b)     the excess (if any) of (i) the aggregate Outstanding Balance of all Eligible Receivables that are Unbilled Receivables, over (ii) the product of (x) 50.00%, multiplied by (y) the aggregate Outstanding Balance of all Eligible Receivables; plus

(c)     the excess (if any) of (i) the aggregate Outstanding Balance of all Eligible Receivables that have a due date which is more than 60 days but not more than 90 days after the original invoice date of such Receivable, over (ii) the product of (x) 7.50%, multiplied by (y) the aggregate Outstanding Balance of all Eligible Receivables; plus

(d)     the excess (if any) of (i) the aggregate Outstanding Balance of all Eligible Receivables that have a due date which is more than 90 days after the original invoice date of such Receivable, over (ii) the product of (x) 7.50%, multiplied by (y) the aggregate Outstanding Balance of all Eligible Receivables; plus

(e)     the excess (if any) of (i) the aggregate Outstanding Balance of all Eligible Receivables due from a state or local governmental entity, over (ii) the product of (x) 7.50%, multiplied by (y) the aggregate Outstanding Balance of all Eligible Receivables; plus

(f)     the excess (if any) of (i) the aggregate Outstanding Balance of all Eligible Receivables owing from the four (4) Group D Obligors (each, together with its respective Affiliates) with the four (4) largest Obligor Percentages of all Group D Obligors, over (ii) the product of (x) 16.00%, multiplied by (y) the aggregate Outstanding Balance of all Eligible Receivables; plus

(g)     the excess (if any) of (i) the aggregate Outstanding Balance of all Eligible Receivables, the Obligors of which are Eligible Foreign Obligors, over (ii) the product of (x) 5.00%, multiplied by (y) the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool.

Exchange Act ” means the Securities Exchange Act of 1934, as amended or otherwise modified from time to time.

 

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Notes ” means short-term promissory notes issued, or to be issued, by any Conduit Purchaser to fund its investments in accounts receivable or other financial assets.

Obligor ” means, with respect to any Receivable, the Person obligated to make payments pursuant to the Contract relating to such Receivable.

Obligor Percentage ” means, at any time of determination, for each Obligor, a fraction, expressed as a percentage, (a) the numerator of which is the aggregate Outstanding Balance of the Eligible Receivables of such Obligor and its Affiliates less the amount (if any) then included in the calculation of the Excess Concentration with respect to such Obligor and its Affiliates and (b) the denominator of which is the aggregate Outstanding Balance of all Eligible Receivables at such time.

OFAC ” means the U.S. Department of Treasury’s Office of Foreign Assets Control.

Offset Reserve Amount ” means, at any time during any Fiscal Month, an amount equal to (a) if Performance Guarantor then has both a long-term issuer credit rating of BBB- or better by S&P and a senior unsecured long-term rating of Baa3 or better by Moody’s, the sum of (i)  the product of (x) 50.00%, times (y) the Deferred Revenue Amount with respect to DXC Technology Services LLC for the immediately preceding Fiscal Month, plus (ii)  the product of (x) 20.00%, times (y)  the Deferred Revenue Amount with respect to each Originator other than DXC Technology Services LLC for the immediately preceding Fiscal Month or (b) if Performance Guarantor lacks either such debt rating, the Deferred Revenue Amount for the immediately preceding Fiscal Month; provided , however , that clause (b) shall exclude any such liability or portion thereof that is not owed to or related to Obligors on Eligible Receivables and (ii) the amount (if any) by which (x) any such liability or portion thereof owed to or related to an Obligor on Eligible Receivables, exceeds (y) the aggregate Outstanding Balance of the Eligible Receivables owing by such Obligor. The Administrative Agent with the written consent of the Majority Group Agents may, from time-to-time and in their discretion by written notice to the Seller, increase or decrease the percentages specified in clause (a) above to any percentage not exceeding 100%, which increase or decrease shall be effective on and after the Monthly Settlement Date occurring in the Fiscal Month immediately following the Fiscal Month in which such notice is delivered to the Seller, and such increased or decreased percentages shall be used in calculating the Offset Reserve Amount (and the resulting Net Receivables Pool Balance) for the Fiscal Month immediately preceding such Monthly Settlement Date (including in the Information Package related to such Monthly Settlement Date); provided , however , that any decrease in such percentages shall not be effective without the prior written consent of all Group Agents.

Originator ” and “ Originators ” have the meaning set forth in the Purchase and Sale Agreement, as the same may be modified from time to time by adding new Originators or removing Originators, in each case in accordance with the terms and conditions of the Purchase and Sale Agreement.

Other Connection Taxes ” means, with respect to any Affected Person, Taxes imposed as a result of a present or former connection between such Affected Person and the jurisdiction imposing such Tax (other than connections arising from such Affected Person having    executed,

 

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Purchase and Sale Agreement ” means the Purchase and Sale Agreement, dated as of the Closing Date, among the Servicer, the Originators and the Seller, as amended by the First Amendment to the Purchase and Sale Agreement, dated as of August 22, 2018, as further amended by the Second Amendment to the Purchase and Sale Agreement, dated as of September 24 , 2018.

Purchase and Sale Termination Event ” has the meaning set forth in the Purchase and Sale Agreement.

Purchaser Designated Reference Rate ” is defined in Section  2.05 .

Purchaser Party ” means each Purchaser, the Administration Agent and each Group Agent.

Purchasers ” means the Conduit Purchasers and the Committed Purchasers.

Rating Agency ” mean each of S&P, Fitch and Moody’s (and/or each other rating agency then rating the Notes of any Conduit Purchaser).

Rating Agency Condition ” means, when applicable, with respect to any Conduit Purchaser and any event or occurrence, receipt by the Administrative Agent (or the applicable Group Agent) of written confirmation from each Rating Agency then rating the Notes of such Conduit Purchaser that such event or occurrence shall not cause the rating on the then outstanding Notes of such Conduit Purchaser to be downgraded or withdrawn.

Ratings Event ” means, at any time of determination, one or more of the following events has occurred and is continuing: (i) Performance Guarantor’s long-term issuer credit rating by S&P is below BB+; (ii) Performance Guarantor’s senior unsecured long-term rating by Moody’s is below Ba1 or (iii) Performance Guarantor does not have a senior unsecured long-term rating by Moody’s or a long-term issuer credit rating by S&P.

Receivable ” means any right to payment of a monetary obligation, whether or not earned by performance, owed to any Originator or the Seller (as assignee of an Originator), whether constituting an account, chattel paper, payment intangible, instrument or general intangible, in each instance arising in connection with the sale of goods that have been or are to be sold or for services rendered or to be rendered, and includes, without limitation, the obligation to pay any finance charges, fees and other charges with respect thereto; provided , however , that “Receivable” shall not include any such right to payment of a monetary obligation that is an Excluded Receivable. Any such right to payment arising from any one transaction, including, without limitation, any such right to payment represented by an individual invoice or agreement, shall constitute a Receivable separate from a Receivable consisting of any such right to payment arising from any other transaction.

Receivables Pool ” means, at any time of determination, all of the then outstanding Receivables transferred (or purported to be transferred) to the Seller pursuant to the Purchase and Sale Agreement prior to the Termination Date (other than a Receivable that has been repurchased or retransferred to an Originator pursuant to, and in accordance with, the Transaction Documents).

 

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Solvent ” means, with respect to any Person and as of any particular date, (i) the present fair market value (or present fair saleable value) of the assets of such Person is not less than the total amount required to pay the probable liabilities of such Person on its total existing debts and liabilities (including contingent liabilities) as they become absolute and matured, (ii) such Person is able to realize upon its assets and pay its debts and other liabilities, contingent obligations and commitments as they mature and become due in the normal course of business, (iii) such Person is not incurring debts or liabilities beyond its ability to pay such debts and liabilities as they mature and (iv) such Person is not engaged in any business or transaction, and is not about to engage in any business or transaction, for which its property would constitute unreasonably small capital after giving due consideration to the prevailing practice in the industry in which such Person is engaged. The amount of contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

Structuring Agent ” means PNC Capital Markets LLC, a Pennsylvania limited liability company.

Subordinated Note ” has the meaning set forth in the Purchase and Sale Agreement.

Sub-Servicer ” has the meaning set forth in Section  9.01(d) .

Subject HP Merger means the implementation by CSC of a merger transaction in accordance with the Form S-4 filed by Everett with the SEC on November  2, 2016, which results in CSC being a wholly-owned subsidiary of Everett.

Subsidiary ” means, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture or other business entity of which more than 50% of the total voting power of shares of stock or other ownership interests entitled (without regard to the occurrence of any contingency) to vote in the election of the Person or Persons (whether directors, managers, trustees or other Persons performing similar functions) having the power to direct or cause the direction of the management and policies thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof; provided , in determining the percentage of ownership interests of any Person controlled by another Person, no ownership interest in the nature of a “qualifying share” of the former Person shall be deemed to be outstanding.

Support Assets ” has the meaning set forth in Section  5.05(a) . For the avoidance of doubt, the Support Assets include all Sold Assets.

Taxes ” means any and all present or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed by any Governmental Authority and all interest, penalties, additions to tax and any similar liabilities with respect thereto.

Termination Date ” means the earliest to occur of (a) the Scheduled Termination Date, (b) the date on which the “Termination Date” is declared or deemed to have occurred under Section  3.01 or Section  10.01 , (c) the occurrence of a Purchase and Sale Termination Event

 

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Seller not later than 11:00 a.m. (New York City time), one (1) Business Day prior to the beginning of any Yield Period. As of August   22, September 24, 2018: (a) Adjusted LIBOR is the Purchaser Designated Reference Rate for each Purchaser in the Group for which MUFG Bank, Ltd. is the Group Agent and (b) LMIR is the Purchaser Designated Reference Rate for each Purchaser in the Group for which PNC Bank, National Association is the Group Agent, for each Purchaser in the Group for which Wells Fargo Bank, National Association is the Group Agent, for each Purchaser in the Group for which Fifth Third Bank is the Group Agent, for each Purchaser in the Group for which Mizuho Bank, Ltd. is the Group Agent and for each Purchaser in the Group for which The Toronto Dominion Bank is the Group Agent.

SECTION 2.06.     Defaulting Purchasers and Exiting Purchasers . Notwithstanding any provision of this Agreement to the contrary, if any Purchaser becomes a Defaulting Purchaser or an Exiting Purchaser, then the following provisions shall apply for so long as such Purchaser is a Defaulting Purchaser or an Exiting Purchaser; provided , however , that only clause (d)  below shall apply to an Exiting Purchaser that is not also a Defaulting Purchaser:

(a)     Commitment Fees (as defined in the Fee Letter) shall cease to accrue on the unfunded portion of the Commitment of such Defaulting Purchaser.

(b)     The Commitment and Capital of such Defaulting Purchaser shall not be included in determining whether the Majority Group Agents have taken or may take any action hereunder (including any consent to any amendment, waiver or other modification pursuant to Section  14.01 ); provided , that, except as otherwise provided in Section  14.01 , this clause (b)  shall not apply to the vote of a Defaulting Purchaser in the case of an amendment, waiver or other modification requiring the consent of such Purchaser or each Purchaser directly affected thereby (if such Purchaser is directly affected thereby).

(c)     In the event that the Administrative Agent, the Seller and the Servicer each agrees in writing that a Defaulting Purchaser has adequately remedied all matters that caused such Purchaser to be a Defaulting Purchaser, then on such date such Purchaser shall purchase at par such of the Investments of the other Purchaser as the Administrative Agent shall determine may be necessary in order for such Purchaser to hold such Investments in accordance with its ratable share; provided , that no adjustments shall be made retroactively with respect to fees accrued or payments made by or on behalf of the Seller while such Purchaser was a Defaulting Purchaser, and provided, further, that except to the extent otherwise agreed by the affected parties, no change hereunder from Defaulting Purchaser to Purchaser that is not a Defaulting Purchaser will constitute a waiver or release of any claim of any party hereunder arising from that Purchaser having been a Defaulting Purchaser.

(d)     At any time there is more than one Purchaser, the Seller shall be permitted to replace any Purchaser that becomes a Defaulting Purchaser or an Exiting Purchaser; provided , however , that the Seller shall be permitted to replace any Purchaser which is the Administrative Agent or an Affiliate thereof only if, in either case, the Administrative Agent is also replaced contemporaneously, pursuant to documents reasonably satisfactory to the Administrative Agent and the Administrative Agent has received payment of an amount equal to all amounts payable to the Administrative Agent hereunder and under each of the other Transaction Document; provided further that (i) such replaced Purchaser shall have received payment of an amount equal to the

 

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ARTICLE III

NON-REINVESTMENT EVENTS

SECTION 3.01.      Non-Reinvestment Events . If any of the following events (each a “ Non-Reinvestment Event ”) shall occur:

(a)    as of the end of any Fiscal Month, the average for three consecutive Fiscal Months of: (A) the Default Ratio shall exceed 4.00%, (B) the Delinquency Ratio shall exceed 16.00 12.00 % or (C) the Dilution Ratio shall exceed 12.00%;

(b)    as of the end of any Fiscal Month, the Days’ Sales Outstanding shall exceed 65 days; or

(c)    the occurrence of a Ratings Event;

then, and in any such event, the Administrative Agent may (or, at the direction of the Majority Group Agents shall) by notice to the Seller declare the Termination Date to have occurred (in which case the Termination Date shall be deemed to have occurred).

ARTICLE IV

SETTLEMENT PROCEDURES AND PAYMENT PROVISIONS

SECTION 4.01. Settlement Procedures .

(a)    The Servicer shall hold in trust for the benefit of the Secured Parties (or, if so requested by the Administrative Agent during the continuance of an Event of Termination or a Non-Reinvestment Event, segregate in a separate account designated by the Administrative Agent, which shall be an account maintained and controlled by the Administrative Agent unless the Administrative Agent otherwise instructs in its sole discretion), for application in accordance with the priority of payments set forth below, all Collections on Pool Receivables that are received by the Servicer or the Seller or received in any Blocked Account, Lock-Box or Collection Account; provided , however , that so long as each of the conditions precedent set forth in Section  6.03 are satisfied on such date, the Servicer may release to the Seller from such Collections the amount (if any) necessary to pay (i) the purchase price for Receivables purchased by the Seller on such date in accordance with the terms of the Purchase and Sale Agreement or (ii) amounts owing by the Seller to the Originators under the Subordinated Notes (each such release, a “ Release ”), which Release constitutes payment of the Deferred Purchase Price with respect to such Receivables. On each Settlement Date, the Servicer (or, following its assumption of control of the Blocked Account, the Administrative Agent) shall, distribute such Collections in the following order of priority:

(i)     first , prior to the occurrence of the Termination Date, to the Servicer for the payment of the accrued Servicing Fees payable for the immediately preceding Yield Period (plus, if applicable, the amount of Servicing Fees payable for any prior Yield Period to the extent such amount has not been distributed to the Servicer);

 

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documents or any indenture, sale agreement, credit agreement, loan agreement, security agreement, mortgage, deed of trust, or other material agreement or instrument to which the Seller is a party, (ii) result in the creation or imposition of any Adverse Claim (other than Permitted Adverse Claims) upon any of the Support Assets pursuant to the terms of any such indenture, credit agreement, loan agreement, security agreement, mortgage, deed of trust, or other material agreement or instrument other than this Agreement and the other Transaction Documents or (iii) conflict with or violate any Applicable Law.

(e)      Litigation and Other Proceedings . (i) There is no action, suit, proceeding or investigation pending or, to the actual knowledge of the Seller, threatened, against the Seller before any Governmental Authority and (ii) the Seller 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 Transaction Document to which the Seller is a party or any of the transactions contemplated hereby or thereby, (B) seeks to prevent the grant of a security interest in any Support Assets by the Seller to the Administrative Agent, the ownership or acquisition by the Seller of any Pool Receivables or other Support Assets or the consummation of any of the transactions contemplated by this Agreement or any other Transaction Document or (C) individually or in the aggregate for all such actions, suits, proceedings and investigations could reasonably be expected to have a Material Adverse Effect.

(f)      Governmental Approvals . Except where the failure to obtain or make such authorization, consent, order, approval or action could not reasonably be expected to have a Material Adverse Effect and filings with the SEC to the extent required by Applicable Law, all authorizations, consents, orders and approvals of, or other actions by, any Governmental Authority that are required to be obtained by the Seller in connection with the grant of a security interest in the Support Assets to the Administrative Agent hereunder or the due execution, delivery and performance by the Seller of this Agreement or any other Transaction Document to which it is a party and the consummation by the Seller of the transactions contemplated by this Agreement and the other Transaction Documents to which it is a party have been obtained or made and are in full force and effect.

(g)      Margin Regulations . No proceeds of any Investment will be used by the Seller to purchase or carry any margin stock or extend credit to others for the purpose of purchasing or carrying any margin stock in any matter that violates or would cause a violation of Regulations T, U or X of the Board of Governors of the Federal Reserve System.

(h)      Solvency . After giving effect to the transactions contemplated by this Agreement and the other Transaction Documents, the Seller is Solvent.

(i)      Offices; Legal Name . The Seller’s sole jurisdiction of organization is the State of Delaware and such jurisdiction has not changed within four months prior to the date of this Agreement. The office of the Seller is located at 1775 Tysons Boulevard, Tysons, Virginia 22102. The legal name of the Seller is CSC DXC Receivables LLC.

(j)      Investment Company Act; Volcker Rule . The Seller (i) is not, and is not controlled by, an “investment company” registered or required to be registered under the

 

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Investment Company Act and (ii) is not a “covered fund” under the Volcker Rule. In determining that the Seller is not a “covered fund” under the Volcker Rule, the Seller relies on, and is entitled to rely on, the exemption from the definition of “investment company” set forth in Section 3(c)(5) of the Investment Company Act.

(k)     Accuracy of Information . All Information Packages, Investment Requests, certificates, reports, statements, documents and other information furnished to the Administrative Agent or any other Purchaser Party by or on behalf of the Seller pursuant to any provision of this Agreement or any other Transaction Document, or in connection with or pursuant to any amendment or modification of, or waiver under, this Agreement or any other Transaction Document, taken together with any information contained in the public filings made by Parent with the SEC pursuant to the 1934 Act, is, at the time the same are so furnished (or with respect to each Information Package and Investment Request, as of its date), complete and correct in all material respects on the date the same are furnished (or with respect to each Information Package and Investment Request, as of its date) to the Administrative Agent or such other Purchaser Party, and does 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 materially misleading in light of the circumstances under which such statements were made; provided , that, with respect to projected financial information provided by or on behalf of the Seller, the Seller represents only that such information was prepared in good faith by management of the Seller on the basis of assumptions believed by such management to be reasonable as of the time made.

(l)     Transaction Information . None of the Seller, any Affiliate of the Seller or any third party with which the Seller or any Affiliate thereof has contracted, has delivered, in writing or orally, to any Rating Agency, any Transaction Information without providing such Transaction Information to the applicable Group Agent prior to delivery to such Rating Agency and has not participated in any oral communications with respect to Transaction Information with any Rating Agency without the participation of such Group Agent.

(m)     Anti-Corruption Laws and Sanctions . The Seller has implemented and maintains in effect policies and procedures designed to promote and achieve compliance by Seller and its directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and Seller and to the knowledge of the Seller its directors, officers, employees and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects. None of (i) the Seller or to the knowledge of the Seller any of the directors or officers of the Seller or (ii) to the knowledge of the Seller, any employee or agent of the Seller that will act in any capacity in connection with or benefit from the facility established hereby, is a Sanctioned Person. The Seller will provide to the Administrative Agent and each Purchaser such information and documentation as may reasonably be requested by the Administrative Agent and each Purchaser from time to time for purposes of compliance by the Administrative Agent and each Purchaser with applicable laws (including without limitation the USA Patriot Act and other “know your customer” and anti-money laundering rules and regulations), and any policy or procedure implemented by the Administrative Agent and each Purchaser to comply therewith. As of August  22, September  24, 2018, the Seller is an entity that is organized under the laws of the United States or of any state and at least 51% of whose common stock or analogous equity interest is owned directly or indirectly by a company listed on the New York Stock Exchange or the American Stock Exchange or designated as a NASDAQ National Market Security listed on

 

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Receivables and (ii) has complied with all Applicable Laws in connection with servicing the Pool Receivables, except to the extent the failure to maintain such qualifications or comply with such Applicable Laws could not reasonably be expected to have a Material Adverse Effect.

(h)     Accuracy of Information. All Information Packages, Investment Requests, certificates, reports, statements, documents and other information furnished to the Administrative Agent or any other Purchaser Party by the Servicer pursuant to any provision of this Agreement or any other Transaction Document, or in connection with or pursuant to any amendment or modification of, or waiver under, this Agreement or any other Transaction Document, taken together with any information contained in the public filings made by Parent with the SEC pursuant to the 1934 Act, is, at the time the same are so furnished (or with respect to each Information Package and Investment Request, as of its date), complete and correct in all material respects on the date the same are furnished (or with respect to each Information Package and Investment Request, as of its date) to the Administrative Agent or such other Purchaser Party, and does 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 materially misleading in light of the circumstances under which such statements were made; provided , that, with respect to projected financial information provided by or on behalf of the Servicer, the Servicer represents only that such information was prepared in good faith by management of the Servicer on the basis of assumptions believed by such management to be reasonable as of the time made.

(i)     Location of Records. The offices where the initial Servicer keeps all of its records relating to the servicing of the Pool Receivables are located at 1775 Tysons Boulevard, Tysons, Virginia 22102.

(j)     Credit and Collection Policy.      The Servicer has complied in all material respects with the Credit and Collection Policy with regard to each Pool Receivable and the related Contracts.

(k)     Eligible Receivables . Each Receivable included as an Eligible Receivable in the calculation of the Net Receivables Pool Balance as of any date is an Eligible Receivable as of such date.

(l)     Other Transaction Documents . Each representation and warranty made by the Servicer under each other Transaction Document to which it is a party (including, without limitation, the Purchase and Sale Agreement) is true and correct in all material respects as of the date when made.

(m)     Investment Company Act . The Servicer is not an “investment company,” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act.

(n)     Anti-Corruption Laws and Sanctions . CSC DXC has implemented and maintains in effect policies and procedures designed to promote and achieve compliance by CSC DXC , its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and CSC DXC , its Subsidiaries and to the knowledge of CSC DXC its directors, officers, employees and agents, are in compliance with

 

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Anti-Corruption Laws and applicable Sanctions in all material respects. None of (i)  CSC DXC , any Subsidiary of CSC DXC or to the knowledge of CSC DXC any of the directors or officers of CSC DXC , (ii) to the knowledge of CSC DXC or such Subsidiary, any director or officer of any Subsidiary of CSC DXC or (iii) to the knowledge of CSC DXC , any employee or agent of CSC DXC or any Subsidiary that will act in any capacity in connection with or benefit from the facility established hereby, is a Sanctioned Person. CSC DXC will provide to the Administrative Agent and each Purchaser such information and documentation as may reasonably be requested by the Administrative Agent and each Purchaser from time to time for purposes of compliance by the Administrative Agent and each Purchaser with applicable laws (including without limitation the USA Patriot Act and other “know your customer” and anti-money laundering rules and regulations), and any policy or procedure implemented by the Administrative Agent and each Purchaser to comply therewith.

(o)      Transaction Information . None of the Servicer, any Affiliate of the Servicer or any third party with which the Servicer or any Affiliate thereof has contracted, has delivered, in writing or orally, to any Rating Agency, or monitoring a rating of, any Notes, any Transaction Information without providing such Transaction Information to the applicable Group Agent prior to delivery to such Rating Agency and has not participated in any oral communications with respect to Transaction Information with any Rating Agency without the participation of such Group Agent.

(p)      Financial Condition . The audited consolidated balance sheet of the Servicer and its consolidated Subsidiaries as of April 1, 2016 and the related audited statements of income and shareholders’ equity of the Servicer and its consolidated Subsidiaries for the fiscal year then ended, copies of which have been furnished to the Administrative Agent and the Group Agents, present fairly in all material respects the consolidated financial position of the Servicer and its consolidated Subsidiaries for the period ended on such date, all in accordance with GAAP consistently applied.

(q)      Bulk Sales Act .    No transaction contemplated by this Agreement requires compliance by it with any bulk sales act or similar law to which the Servicer is subject.

(r)      Taxes .    Except as disclosed in reports filed under the Exchange Act prior to the Closing Date, the Servicer has filed or caused to be filed all material tax returns (federal, state and local) required to be filed and paid all amounts of taxes shown thereon to be due, including interest and penalties, except (i) for such taxes as are being contested in good faith and by proper proceedings and with respect to which appropriate reserves are being maintained by the Servicer in accordance with GAAP as reasonably determined by the Servicer or (ii) to the extent that the failure to file such returns or pay such taxes would not reasonably be expected to have a Material Adverse Effect.

(s)      Opinions . The facts regarding the Seller, the Servicer, each Originator, the Performance Guarantor, the Receivables, 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 Transaction Documents are true and correct in all material respects.

 

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(t)     Other Transaction Documents . Each representation and warranty made by the Servicer under each other Transaction Document to which it is a party is true and correct in all material respects as of the date when made.

(u)     Collection Accounts . Each Collection Account and Lock-Box is in     the name of the applicable Originator identified on Schedule II-A , and such Originator owns and has good and marketable title to the applicable Collection Account and Lock-Box free and clear of any Adverse Claim (except for Permitted Adverse Claims).

(v)     Reaffirmation of Representations and Warranties . On the date of each Investment, on the date of each Release, on each Settlement Date and on the date each Information Package is delivered to the Administrative Agent or any Group Agent hereunder, the Servicer shall be deemed to have certified that (i) all representations and warranties of the Servicer hereunder are 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) on and as of such day as though made on and as of such day, except for representations and warranties which apply as 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 or warranty shall be true and correct as made) as of such date) and (ii) no Event of Termination, Non-Reinvestment Event, Unmatured Event of Termination or Unmatured Non-Reinvestment Event has occurred and is continuing or will result from such Investment or Release.

(w)     ERISA . Except as disclosed in the Exchange Act Reports filed prior to the Closing Date:

(i)     no ERISA Event has occurred or is reasonably expected to occur (other than premiums payable under Title IV of ERISA), that would reasonably be expected to result in a liability to Parent or its ERISA Affiliates of more than $250,000,000 over the amount previously reflected for any such liabilities, in accordance with GAAP, on the financial statements delivered pursuant to Section  8.02(b)(v) ;

(ii)     Schedule B (Actuarial Information) to the most recently completed annual report (Form 5500 Series) for each Pension Plan, copies of which have been filed with the Internal Revenue Service and furnished to the Administrative Agent, is complete and, to the best knowledge of CSC DXC , accurate and since the date of such Schedule B there has been no change in the funding status of any such Pension Plan except any change that would not reasonably be expected to have a material adverse effect on the business, financial condition or operations of Parent and its Subsidiaries, taken as a whole;

(iii)     as of the most recent valuation date for each Multiemployer Plan for which the actuarial report is available, the potential liability to Parent or any of its ERISA Affiliates for a complete withdrawal from such Multiemployer Plan, when aggregated with such potential liability for a complete withdrawal for all    Multiemployer

 

64


Plans, based on information available pursuant to Section 4221(e) of ERISA, does not exceed $250,000,000;

(iv) Parent and each of its ERISA Affiliates are in compliance with all applicable provisions and requirements of ERISA and the regulations and published interpretations thereunder with respect to each Employee Benefit Plan, and have performed all their obligations under each Employee Benefit Plan except for any such failure to perform or comply that would not reasonably be expected to have a material adverse effect on the business, financial condition or operations of Parent and its Subsidiaries, taken as a whole;

(v) each Employee Benefit Plan that is intended to qualify under Section 401(a) of the Code has received a determination letter from the Internal Revenue Service that the Employee Benefit Plan is so qualified (or a timely application for such a determination letter is pending), and to the best of CSC DXC ’s knowledge, the Employee Benefit Plan has not been operated in any way that would result in the Employee Benefit Plan no longer being so qualified except as would not reasonably be expected to have a material adverse effect on the business, financial condition or operations of Parent and its Subsidiaries, taken as a whole; and

(vi) neither Parent nor any ERISA Affiliate has been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is insolvent or has been terminated or has been determined to be in “endangered” or “critical” status, within the meaning of Title IV or ERISA, and, to the best knowledge of the Company, no Multiemployer Plan is reasonably expected to be insolvent, in reorganization or to be terminated or to be determined to be in “endangered” or “critical” status within the meaning of Title IV of ERISA, in each case, resulting in a liability to Parent or its ERISA Affiliates of more than $250,000,000.

Notwithstanding any other provision of this Agreement or any other Transaction Document, the representations contained in this Section shall continue to be made on the dates specified herein, and remain in full force and effect until the Final Payout Date.

ARTICLE VIII

COVENANTS

SECTION 8.01. Covenants of the Seller .        At all times from the Closing Date until the Final Payout Date:

(a)     Payment of Principal and Yield . The Seller shall duly and punctually pay Capital, Yield, Fees and all other amounts payable by the Seller hereunder in accordance with the terms of this Agreement.

(b)     Existence .    The Seller shall keep in full force and effect its existence and rights as a limited liability company under the laws of the State of Delaware, and shall obtain and preserve its qualification to do business in each jurisdiction in which such qualification is or shall

 

65


the other hand, have offices in the same location, there shall be a fair and appropriate allocation of overhead costs between them, and the Seller shall bear its fair share of such expenses, which may be paid through the Servicing Fee or otherwise.

ARTICLE IX

ADMINISTRATION AND COLLECTION

OF RECEIVABLES

SECTION 9.01. Appointment of the Servicer .

(a) The servicing, administering and collection of the Pool Receivables shall be conducted by the Person so designated from time to time as the Servicer in accordance with this Section  9.01 . Until the Administrative Agent gives notice to CSC DXC (in accordance with this Section  9.01 ) of the designation of a new Servicer, CSC DXC is hereby designated as, and hereby agrees to perform the duties and obligations of, the Servicer pursuant to the terms hereof. Upon the occurrence of an Event of Termination, the Administrative Agent may (with the consent of the Majority Group Agents) and shall (at the direction of the Majority Group Agents) designate as Servicer any Person (including itself) to succeed CSC DXC or any successor Servicer, on the condition in each case that any such Person so designated shall agree to perform the duties and obligations of the Servicer pursuant to the terms hereof.

(b) Upon the designation of a successor Servicer as set forth in clause (a) above, CSC DXC agrees that it will terminate its activities as Servicer hereunder in a manner that the Administrative Agent reasonably determines will facilitate the transition of the performance of such activities to the new Servicer, and CSC DXC shall cooperate with and assist such new Servicer. Such cooperation shall include access to and transfer of records (including all Contracts) related to Pool Receivables and use by the new Servicer of all licenses (or the obtaining of new licenses), hardware or software necessary or reasonably desirable to collect the Pool Receivables and the Related Security. The Servicer shall not be required, to the extent it has an ownership interest in any hardware, software or licenses, to transfer, assign, set-over or otherwise convey such ownership interests to the Administrative Agent. In recognition of the Servicer’s need to have access to any records that may be transferred to the Administrative Agent (or its designee), whether as a result of its continuing responsibility as a servicer of accounts receivable that are not sold under the Transaction Documents or otherwise, the Administrative Agent (or its designee) shall provide to the Servicer reasonable access to such records in connection with any activity arising in the ordinary course of the Servicer’s business; provided , that the Servicer shall not disrupt or otherwise interfere with the Administrative Agent’s (or its designee’s) use of and access to such records.

(c) CSC DXC acknowledges that, in making its decision to execute and deliver this Agreement, the Administrative Agent and each member in each Group have relied on CSC DXC ’s agreement to act as Servicer hereunder. Accordingly, CSC DXC agrees that it will not voluntarily resign as Servicer without the prior written consent of the Administrative Agent and the Majority Group Agents.

 

83


same extent as if interests in such Pool Receivables had not been transferred hereunder, and the exercise by the Administrative Agent, or any other Purchaser Party of their respective rights hereunder shall not relieve the Seller from such obligations and (ii) pay when due any taxes, including any sales taxes payable in connection with the Pool Receivables and their creation and satisfaction. None of the Purchaser Parties shall have any obligation or liability with respect to any Support Assets, nor shall any of them be obligated to perform any of the obligations of the Seller, the Servicer or any Originator thereunder.

(b)     CSC DXC hereby irrevocably agrees that if at any time it shall cease to be the Servicer hereunder, it shall act (if the then-current Servicer so requests) as the data-processing agent of the Servicer and, in such capacity, CSC DXC shall conduct the data-processing functions of the administration of the Receivables and the Collections thereon in substantially the same way that CSC DXC conducted such data-processing functions while it acted as the Servicer. In connection with any such processing functions, the Seller shall pay to CSC DXC its reasonable out-of-pocket costs and expenses from the Seller’s own funds (subject to the priority of payments set forth in Section  4.01 ).

SECTION 9.06. Servicing Fee .

(a)     Subject to clause (b)  below, the Seller shall pay the Servicer a fee     (the “ Servicing Fee ”) equal to 1.00% per annum (the “ Servicing Fee Rate ”) of the daily average aggregate Outstanding Balance of the Pool Receivables. Accrued Servicing Fees shall be payable from Collections to the extent of available funds in accordance with Section  4.01 .

(b)     If the Servicer ceases to be CSC DXC or an Affiliate thereof, the Servicing Fee shall be the greater of: (i) the amount calculated pursuant to clause (a)  above and (ii) an alternative amount specified by the successor Servicer not to exceed 110% of the aggregate reasonable costs and expenses incurred by such successor Servicer in connection with the performance of its obligations as Servicer hereunder.

ARTICLE X

EVENTS OF TERMINATION

SECTION 10.01. Events of Termination . If any of the following events (each an “ Event of Termination ”) shall occur:

(a)    (i) the Seller, any Originator, the Performance Guarantor or the Servicer shall fail to perform or observe any term, covenant or agreement under this Agreement or any other Transaction Document (other than any such failure which would constitute an Event of Termination under clause (ii)  or (iii) of this paragraph (a) ), and such failure, solely to the extent capable of cure, shall continue for thirty (30) days after the earlier to occur of (A) written notice thereof having been given to the Seller, any Originator, the Performance Guarantor or the Servicer by the Administrative Agent or any Purchaser or (B) actual knowledge thereof by the Seller, any Originator, the Performance Guarantor or the Servicer of such failure; (ii) the Seller, any Originator, the Performance Guarantor or the Servicer shall fail to make when due (x) any payment or deposit to be made by it under this Agreement or any other Transaction Document

 

87


(including, for the avoidance of doubt, any remittance required to be made from a Collection Account or Lock-Box to a Blocked Account pursuant to Section  8.01(h) or 8.02(f) ) and such failure shall continue unremedied for two (2) Business Days or (iii)  CSC DXC shall resign as Servicer, and no successor Servicer reasonably satisfactory to the Administrative Agent shall have been appointed;

(b)     any representation or warranty made or deemed made by the Seller, any Originator, the Performance Guarantor or the Servicer (or any of their respective officers) under or in connection with this Agreement or any other Transaction Document or any information or report delivered by the Seller, any Originator, the Performance Guarantor or the Servicer pursuant to this Agreement or any other Transaction Document (unless such representation or warranty relates solely to one or more specific Pool Receivables and Seller makes a Deemed Collection payment with respect to such Pool Receivable in accordance with Section  4.01(d) ), shall prove to have been incorrect or untrue in any material respect when made or deemed made or delivered; provided , however , that such circumstance shall not constitute an Event of Termination pursuant to this clause (b)  if, solely to the extent capable of cure, such breach is cured promptly (but not later than fifteen (15) days);

(c)     the Seller or the Servicer shall fail to deliver an Information Package pursuant to this Agreement, and such failure shall remain unremedied for two (2) Business Days;

(d)     this Agreement or any security interest granted pursuant to this Agreement or any other Transaction Document shall for any reason cease to create, or for any reason cease to be, a valid and enforceable first priority perfected security interest in favor of the Administrative Agent with respect to the Support Assets, free and clear of any Adverse Claim (other than Permitted Adverse Claims);

(e)     the Seller, any Originator, the Performance Guarantor or the Servicer shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any Insolvency Proceeding shall be instituted by or against the Seller, any Originator, the Performance Guarantor or the Servicer and, in the case of any such proceeding instituted against such Person (but not instituted by such Person), either such proceeding shall remain undismissed or unstayed for a period of sixty (60) consecutive days, or any of the actions sought in such proceeding (including the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for, it or for any substantial part of its property) shall occur; or the Seller, any Originator, the Performance Guarantor or the Servicer shall take any corporate or organizational action to authorize any of the actions set forth above in this paragraph;

(f)     a Change in Control shall occur;

(g)     a Capital Coverage Deficit shall occur, and shall not have been cured within three (3) Business Days;

(h)     (i) the Seller shall fail to pay any principal of or premium or interest on any of its Debt when the same becomes due and payable (whether by scheduled maturity,

 

88


IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.

 

     CSC DXC RECEIVABLES LLC

 

  By:    
  Name:
  Title:
 

      COMPUTER SCIENCES CORPORATION DXC       TECHNOLOGY COMPANY ,

     as the Servicer

  By:    
  Name:
  Title:

 

S- 1    Receivables Purchase Agreement


EXHIBIT A

Form of Investment Request

[Letterhead of Seller]

[Date]

[Administrative Agent]

[Group Agents]

Re:    Investment Request

Ladies and Gentlemen:

Reference is hereby made to that certain Receivables Purchase Agreement, dated as of December 21, 2016 among CSC DXC Receivables LLC (the “ Seller ”), Computer Sciences Corporation DXC Technology Company , as Servicer (the “ Servicer ”), the Purchasers party thereto, the Group Agents party thereto and PNC Bank, National Association, as Administrative Agent (in such capacity, the “ Administrative Agent ”) (as amended, supplemented or otherwise modified from time to time, the “ Agreement ”). Capitalized terms used in this Investment Request and not otherwise defined herein shall have the meanings assigned thereto in the Agreement.

This letter constitutes an Investment Request pursuant to Section  2.02(a) of the Agreement.    The Seller hereby requests an Investment of Capital in the aggregate amount of[$              ] to be made on [                , 20    ] (of which $[        ] of Capital will be funded by the PNC Group and $[     ] of Capital will be funded by the [ ] Group. Such Capital should be deposited to [Account number], at [Name, Address and ABA Number of Bank]. After giving effect to such Investment, the Aggregate Capital will be [$              ].

The Seller hereby represents and warrants as of the date hereof, and after giving effect to such Investment, as follows:

(i)     the representations and warranties of the Seller and the Servicer contained in Sections 7.01 and 7.02 of the Agreement are true and correct in all material respects on and as of the date of such Investment as though made on and as of such date unless such representations and warranties by their terms refer to an earlier date, in which case they shall be true and correct in all material respects on and as of such earlier date;

(ii)     no Event of Termination, Non-Reinvestment Event, Unmatured Event of Termination or Unmatured Non-Reinvestment Event has occurred and is continuing, and no Event of Termination, Non-Reinvestment Event, Unmatured Event of Termination or Unmatured Non-Reinvestment Event would result from such Investment;

 

Exhibit A- 1


IN WITNESS WHEREOF, the undersigned has executed this letter by its duly authorized officer as of the date first above written.

 

    Very truly yours,
     CSC DXC Receivables LLC

 

  By:    
  Name:
  Title:

 

Exhibit A- 3


EXHIBIT B

Form of Reduction Notice

[LETTERHEAD OF SELLER]

[Date]

[Administrative Agent]

[Group Agents]

Re:                                                         Reduction Notice

Ladies and Gentlemen:

Reference is hereby made to that certain Receivables Purchase Agreement, dated as of December 21, 2016 among CSC DXC Receivables LLC, as seller (the “ Seller ”), Computer Sciences Corporation DXC Technology Company , as Servicer (the “ Servicer ”), the Purchasers party thereto, and PNC Bank, National Association, as Administrative Agent (in such capacity, the “ Administrative Agent ”) (as amended, supplemented or otherwise modified from time to time, the “ Agreement ”). Capitalized terms used in this Reduction Notice and not otherwise defined herein shall have the meanings assigned thereto in the Agreement.

This letter constitutes a Reduction Notice pursuant to Section  2.02(d) of the Agreement. The Seller hereby notifies the Administrative Agent and the Purchasers that it shall reduce the outstanding Capital of the Purchasers in the amount of [$                  ] to be made on [                    , 201_]. After giving effect to such reduction, the Aggregate Capital will be [$                  ].

The Seller hereby represents and warrants as of the date hereof, and after giving effect to such reduction, as follows:

(i)    the representations and warranties of the Seller and the Servicer contained in Sections 7.01 and 7.02 of the Agreement are true and correct in all material respects on and as of the date of such reduction as though made on and as of such date unless such representations and warranties by their terms refer to an earlier date, in which case they shall be true and correct in all material respects on and as of such earlier date;

(ii)    no Event of Termination, Non-Reinvestment Event, Unmatured Event of Termination or Unmatured Non-Reinvestment Event has occurred and is continuing, and no Event of Termination, Non-Reinvestment Event, Unmatured Event of Termination or Unmatured Non-Reinvestment Event would result from such reduction;

(iii)    no Capital Coverage Deficit exists or would exist after giving effect to such reduction;

 

Exhibit C-1


IN WITNESS WHEREOF, the undersigned has executed this letter by its duly authorized officer as of the date first above written.

 

    Very truly yours,
     CSC DXC RECEIVABLES LLC

 

  By:    
  Name:
  Title:

 

Exhibit C-3


EXHIBIT C

[Form of Assignment and Acceptance Agreement]

Dated as of                          , 20     

Section  1 .

 

Commitment assigned:

     $[               ]  

Assignor’s remaining Commitment:

     $[              ]  

Capital allocable to Commitment assigned:

     $[              ]  

Assignor’s remaining Capital:

     $[              ]  

Yield (if any) allocable to Capital assigned:

     $[              ]  

Yield (if any) allocable to Assignor’s remaining Capital:

     $[              ]  

Section  2 .

Effective Date of this Assignment and Acceptance Agreement: [                  ]

Upon execution and delivery of this Assignment and Acceptance Agreement by the assignee and the assignor and the satisfaction of the other conditions to assignment specified in Section  14.03(b) of the Agreement (as defined below), from and after the effective date specified above, the assignee shall become a party to, and, to the extent of the rights and obligations thereunder being assigned to it pursuant to this Assignment and Acceptance Agreement, shall have the rights and obligations of a Committed Purchaser under that certain Receivables Purchase Agreement, dated as of December 21, 2016 among CSC DXC Receivables LLC, Computer Sciences Corporation DXC Technology Company , as Servicer, the Purchasers party thereto, the Group Agents party thereto and PNC Bank, National Association, as Administrative Agent (as amended, supplemented or otherwise modified from time to time, the “ Agreement ”).

(Signature Pages Follow)

 

Exhibit C-1


ASSIGNOR:     [                  ]  
    By:      
    Name:  
    Title  

 

ASSIGNEE:     [                  ]  
    By:      
    Name:  
    Title  
    [Address]  

 

Accepted as of date first above
written:

 

PNC BANK, NATIONAL ASSOCIATION,
as Administrative Agent
By:    
Name:  
Title:  

 

CSC DXC RECEIVABLES LLC, as Seller
By:    
Name:  
Title:  

 

COMPUTER SCIENCES CORPORATION, DXC TECHNOLOGY COMPANY ,

as Servicer

By:    
Name:  
Title:  

 

Exhibit C-2


EXHIBIT D

[Form of Assumption Agreement]

THIS ASSUMPTION AGREEMENT (this “ Agreement ”), dated as of [                  ,         ], is among CSC DXC Receivables LLC (the “ Seller ”), [              ], as conduit purchaser (the “[                ] Conduit Purchaser ”), [              ], as the Related Committed Purchaser (the “[              ] Committed Purchaser ” and together with the Conduit Purchaser, the “[                ] Purchasers ”), and    [              ], as group agent for the [                  ] Purchasers (the “[          ] Group Agent ” and together with the [                ] Purchasers, the “[              ] Group ”).

BACKGROUND

The Seller and various others are parties to a certain Receivables Purchase Agreement, dated as of December 21, 2016 (as amended through the date hereof and as the same may be amended, amended and restated, supplemented or otherwise modified from time to time, the “ Receivables Purchase Agreement ”). Capitalized terms used and not otherwise defined herein have the respective meaning assigned to such terms in the Receivables Purchase Agreement .

NOW, THEREFORE, the parties hereto hereby agree as follows:

SECTION 1. This letter constitutes an Assumption Agreement pursuant to Section  14.03(i) of the Receivables Purchase Agreement.    The Seller desires [the [                  ] Purchasers] [the [              ] Committed Purchaser] to [become a Group] [increase its existing Commitment] under the Receivables Purchase Agreement, and upon the terms and subject to the conditions set forth in the Receivables Purchase Agreement, the [[              ] Purchasers] [[              ] Committed Purchaser] agree[s] to [become Purchasers within a Group thereunder] [increase its Commitment to the amount set forth as its “Commitment” under the signature of such [          ] Committed Purchaser hereto].

The Seller hereby represents and warrants to the [                  ] Purchasers and the [              ] Group Agent as of the date hereof, as follows:

(i)    the representations and warranties of the Seller contained in Section  7.01 of the Receivables Purchase Agreement are true and correct in all material respects on and as of such date as though made on and as of such date unless such representations and warranties by their terms refer to an earlier date, in which case they shall be true and correct in all material respects on and as of such earlier date;

(ii)    no Event of Termination, Non-Reinvestment Event, Unmatured Event of Termination or Unmatured Non-Reinvestment Event has occurred and is continuing, or would result from the assumption contemplated hereby; and

(iii) the Termination Date shall not have occurred.

SECTION 2. Upon execution and delivery of this Agreement by the Seller and each member of the [                  ] Group, satisfaction of the other conditions with respect to the addition of a Group specified in Section  14.03(i) of the Receivables Purchase Agreement (including the

 

Exhibit D-1


CSC DXC RECEIVABLES LLC
as Seller
By:    
Name Printed:    
Title:    

 

COMPUTER SCIENCES CORPORATION DXC TECHNOLOGY COMPANY
as Servicer
By:    
Name Printed:    
Title:    

 

Exhibit D-4


EXHIBIT F

Form of Information Package

(Attached)

 

Exhibit E


EXHIBIT G

Form of Compliance Certificate

To: PNC Bank, National Association, as Administrative Agent

This Compliance Certificate is furnished pursuant to that certain Receivables Purchase Agreement, dated as of December 21, 2016 among CSC DXC Receivables LLC (the “ Seller ”), Computer Sciences Corporation DXC Technology Company , as Servicer (the “ Servicer ”), the Purchasers party thereto, the Group Agents party thereto and PNC Bank, National Association, as Administrative Agent (in such capacity, the “ Administrative Agent ”) (as amended, supplemented or otherwise modified from time to time, the “ Agreement ”). Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Agreement.

THE UNDERSIGNED HEREBY CERTIFIES THAT:

1.      I am the duly elected                          of the Servicer and am delivering this certificate in such capacity as                          of the Servicer and not in my individual capacity.

2.      I have reviewed the terms of the Agreement and each of the other Transaction Documents and I have made, or have caused to be made under my supervision, a detailed review of the transactions and condition of the Seller during the accounting period covered by the attached financial statements.

3.      The examinations described in paragraph 2 above did not disclose, and I have no knowledge of, the existence of any condition or event which constitutes an Event of Termination, Non-Reinvestment Event, Unmatured Event of Termination or Unmatured Non-Reinvestment Event, as each such term is defined under the Agreement, during or at the end of the accounting period covered by the attached financial statements or as of the date of this Certificate[, except as set forth in paragraph 5 below].

4.       Schedule I attached hereto sets forth financial statements of the Parent and its Subsidiaries for the period referenced on such Schedule I .

[5.      Described below are the exceptions, if any, to paragraph 3 above by listing, in    detail, the nature of the condition or event, the period during which it has existed and the action which Seller has taken, is taking, or proposes to take with respect to each such condition or event:]

 

Exhibit G-1


SCHEDULE I TO COMPLIANCE CERTIFICATE

A.    Schedule of Compliance as of                                      , 20            with Section 8.02(a)(i) of the Agreement. Unless otherwise defined herein, the terms used in this Compliance Certificate have the meanings ascribed thereto in the Agreement.

This schedule relates to the month ended:                              .

B.    The following financial statements of the Parent and its Subsidiaries for the period ending on          , 20    , are attached hereto:

 

Exhibit G-3


EXHIBIT H

Closing Memorandum

(Attached)

 

Exhibit H


EXHIBIT I

DPP Report

(Attached)

 

Exhibit H


SCHEDULE I

Groups And Commitments

 

Group of PNC Bank, National Association

     

Party

 

  

Capacity

 

  

Commitment

 

     

PNC Bank, National Association

  

Committed Purchaser

  

$150,000,000

     

PNC Bank, National Association

  

Group Agent

  

N/A

 

Group of Wells Fargo Bank, National Association

     

Party

 

  

Capacity

 

  

Commitment

 

     

Wells Fargo Bank, National Association

  

Committed Purchaser

  

$75,000,000

     

Wells Fargo Bank, National Association

  

Group Agent

  

N/A

 

Group of MUFG Bank, Ltd.

     

Party

 

  

Capacity

 

  

Commitment

 

     

MUFG Bank, Ltd.

  

Committed Purchaser

  

$150,000,000

     

MUFG Bank, Ltd.

  

Group Agent

  

N/A

 

Group of Fifth Third Bank

     

Party

 

  

Capacity

 

  

Commitment

 

     

Fifth Third Bank

  

Committed Purchaser

  

$75,000,000

     

Fifth Third Bank

  

Group Agent

  

N/A

 

Group of Mizuho Bank, Ltd.

     

Party

 

  

Capacity

 

  

Commitment

 

     

Mizuho Bank, Ltd.

  

Committed Purchaser

  

$75,000,000

     

Mizuho Bank, Ltd.

  

Group Agent

  

N/A

 

Schedule I- 1


SCHEDULE II-A

Lock-Boxes, Collection Accounts and Collection Account Banks

[Information Redacted]

 

Schedule II-A- 1


SCHEDULE II-B

Blocked Account and Blocked Account Bank

[Information Redacted]

 

Schedule II-B- 1


SCHEDULE III

Notice Addresses

 

  (A)

in the case of the Seller, at the following address:

[Information Redacted]

 

  (B)

in the case of the Servicer, at the following address:

[Information Redacted]

 

  (C)

in the case of the Administrative Agent, at the following address:

[Information Redacted]

Schedule III- 1

Exhibit 10.3

AMENDED AND RESTATED PERFORMANCE GUARANTY

This AMENDED AND RESTATED PERFORMANCE GUARANTY, dated as of September 24, 2018 (this “ Performance Guaranty ”), is made by DXC TECHNOLOGY COMPANY, a Nevada corporation (“ Performance Guarantor ” or “ DXC ”), in favor of PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent (as defined below) (the “ Guaranteed Party ”) for the benefit of the Secured Parties.

WITNESSETH

WHEREAS, DXC Receivables LLC (f/k/a CSC Receivables LLC), a Delaware limited liability company (the “ Seller ”), as buyer, Computer Sciences Corporation, a Nevada corporation (“ CSC ), as exiting servicer (in such capacity, the “ Exiting Servicer ”), and Alliance-One Services, Inc., a Delaware corporation (“ Alliance-One ”), CSC Agility Platform, Inc., a Delaware corporation (“ CSC Agility ”), CSC Consulting, Inc., a Massachusetts corporation (“ CSC Consulting ”), CSC Cybertek Corporation, a Texas corporation (“ CSC Cybertek ”), Mynd Corporation, a South Carolina corporation (“ Mynd ”), PDA Software Services LLC, a Delaware limited liability company (“ PDA Software ”, and together with CSC, Alliance-One, CSC Agility, CSC Consulting, CSC Cybertek and Mynd, the “ Exiting Originators ”), DXC Technology Services LLC, a Delaware limited liability company (“ DXC Technology Services ”), and CSC, as originators (collectively, the “ Current Originators ”), have entered into that certain Purchase and Sale Agreement, dated as of December 21, 2016, as amended by that certain First Amendment to the Purchase and Sale Agreement, dated as of August 22, 2018, as further amended by that certain Second Amendment to the Purchase and Sale Agreement, dated as of the date hereof (the “ Second PSA Amendment ”) (and as may be further amended, restated, supplemented or otherwise modified from time to time, the “ Purchase and Sale Agreement ”). Each entity from time to time party to the Purchase and Sale Agreement as an originator thereunder, including DXC Technology Services, is herein referred to as an “ Originator ” and, collectively, as the “ Originators .” Pursuant to the Purchase and Sale Agreement, the Originators have sold and will from time to time continue to sell Receivables and Related Rights to the Seller;

WHEREAS, the Seller, as seller, CSC, as Exiting Servicer, the Persons from time to time party thereto as Purchasers (the “ Purchasers ”) and the Administrative Agent have entered into that certain Receivables Purchase Agreement, dated as of December 21, 2016, as amended by that certain First Amendment to the Receivables Purchase Agreement, dated as of January 24, 2017, as further amended by that certain Second Amendment to the Receivables Purchase Agreement, dated as of September 15, 2017, as further amended by that certain Third Amendment to the Receivables Purchase Agreement, dated as of August 22, 2018, as further amended by that certain Fourth Amendment to the Receivables Purchase Agreement, dated as of the date hereof (the “ Fourth RPA Amendment ”) (and as may be further amended, restated, supplemented or otherwise modified from time to time, the “ Receivables Purchase Agreement ”), pursuant to which (i) the Purchasers have made and may continue to make Investments from time to time, (ii) the Seller has granted to the Administrative Agent (on behalf of the Secured Parties) a security interest in the Support Assets and (iii) CSC, as Exiting Servicer, serviced the Pool Receivables;

WHEREAS, DXC is the performance guarantor under that certain Performance Guaranty, dated as of December 21, 2016, made by CSC in favor of the Guaranteed Party for the benefit of the Secured Parties, as amended by that certain Guarantor Assumption Agreement and Joinder, dated as of April 3, 2017, pursuant to which CSC assigned and the Performance Guarantor assumed all rights, obligations and liabilities as performance guarantor under the Existing Guaranty (as defined below), as further confirmed and acknowledged by DXC pursuant to that certain Confirmation and Acknowledgment, dated as of August 22, 2018 (and as amended, restated or otherwise modified from time to time, the “ Existing Guaranty ”);


WHEREAS, as of the date hereof, Performance Guarantor is the direct or indirect owner of 100% of the issued and outstanding Capital Stock of the Seller and of each Originator;

WHEREAS, concurrently herewith, (i) the Seller, the Exiting Servicer, the Servicer (as defined below), the Purchasers and the Administrative Agent will enter into the Fourth RPA Amendment and (ii) the Seller, the Exiting Servicer, the Servicer (as defined below) and the Current Originators will enter into the Second PSA Amendment;

WHEREAS, concurrently herewith, pursuant to the Fourth RPA Amendment and the Second PSA Amendment, (i) DXC Technology Company, as the new servicer (in such capacity, together with its successors and assigns, the “ Servicer ”) will replace the Exiting Servicer and assume the rights, obligations and liabilities of the Exiting Servicer under the Transaction Documents and (ii) the Exiting Originators will be removed as Originators under the Purchase and Sale Agreement;

WHEREAS, Performance Guarantor’s execution and delivery of this Performance Guaranty are requirements to the continued effectiveness of the Receivables Purchase Agreement;

WHEREAS, Performance Guarantor has determined that its execution and delivery of this Performance Guaranty is in its best interests because, inter alia , Performance Guarantor (individually) and Performance Guarantor and its Affiliates (collectively) will derive substantial direct and indirect benefit from (i) each Originator’s sales of Receivables to the Seller from time to time under the Purchase and Sale Agreement, (ii) the financial accommodations made by the Purchasers to the Seller from time to time under the Receivables Purchase Agreement and (iii) the other transactions contemplated under the Purchase and Sale Agreement and the Receivables Purchase Agreement; and

WHEREAS, the Guaranteed Party, for the benefit of the Secured Parties, and Performance Guarantor desire to amend and restate the Existing Guaranty on the terms and conditions set forth herein.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Performance Guarantor hereby agrees as follows:

1.   Performance Guarantor hereby unconditionally and irrevocably undertakes and assures for the benefit of the Administrative Agent (including, without limitation, as assignee of the Seller’s rights, interests and claims under the Purchase and Sale Agreement), the Purchasers and each of the other Secured Parties the due and punctual performance and observance by each Originator (together with their respective successors and assigns, collectively, the “ Covered Entities ”, and each, a “ Covered Entity ”) of the terms, covenants, indemnities, conditions, agreements, undertakings and obligations on the part of such Covered Entity to be performed or observed by it under the Purchase and Sale Agreement, the Receivables Purchase Agreement and each of the other Transaction Documents to which such Covered Entity is a party, including, without limitation, any agreement or obligation of such Covered Entity to pay any indemnity or make any payment in respect of any applicable dilution adjustment or repurchase obligation under any such Transaction Document, in each case on the terms and subject to the conditions set forth in the applicable Transaction Documents as the same shall be amended, restated, supplemented or otherwise modified and in effect from time to time (all such terms, covenants, indemnities, conditions, agreements, undertakings and obligations on the part of the Covered Entities to be paid, performed or observed by them being collectively called the “ Guaranteed Obligations ”). Without limiting the generality of the foregoing, Performance Guarantor agrees that if any Covered Entity shall fail in any manner whatsoever to perform or observe any of its Guaranteed Obligations when the same shall be required to be performed or observed under any applicable Transaction Document, then Performance Guarantor will itself duly and punctually perform or

 

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observe any of such Guaranteed Obligations capable of performance by Performance Guarantor, or cause to be performed or observed, such Guaranteed Obligations. Performance Guarantor agrees that its obligations under this Performance Guaranty shall be irrevocable. It is expressly acknowledged that this Performance Guaranty is a guarantee of performance only and is not a guarantee of the payment of any Pool Receivables, and there shall be no recourse to Performance Guarantor for any non-payment or delay in payment of any Pool Receivables solely by reason of the bankruptcy, insolvency or lack of creditworthiness of the related Obligor or the uncollectability of any such Pool Receivables or for any Guaranteed Obligations the payment of which could otherwise constitute recourse to Performance Guarantor or any Covered Entity for uncollectible Pool Receivables.

2.   Performance Guarantor absolutely, unconditionally and irrevocably agrees to pay promptly on demand all costs and expenses of the Guaranteed Party, if any (including, without limitation, reasonable and documented counsel fees and out of pocket expenses) in connection with enforcement (whether through negotiation, legal proceedings or otherwise) of its rights under this Performance Guaranty or any other Transaction Document (the “ Expense Obligations ”).

3.   Performance Guarantor agrees to pay the Guaranteed Obligations and Expense Obligations, regardless of any applicable law now or hereafter in effect in any jurisdiction affecting any terms of any Transaction Document or the rights of the Guaranteed Party with respect thereto, and notwithstanding a discharge in bankruptcy of all or any part of the Covered Entities’ obligations under the Transaction Documents. The liability of Performance Guarantor hereunder shall be an absolute and primary obligation of payment and the Guaranteed Party shall not be required to first (i) proceed against any Covered Entity; (ii) proceed against or exhaust any security held from any Covered Entity; or (iii) pursue any other remedies it may have, including remedies against other guarantors.

4.   Performance Guarantor unconditionally and irrevocably waives promptness, diligence, notice of acceptance hereof, and all other notices and demands of any kind to which Performance Guarantor may be entitled as a guarantor (other than as expressly provided in this Performance Guaranty), including, without limitation, demands of payment and notices of nonpayment, default, protest and dishonor to any Covered Entity. Performance Guarantor further hereby waives notice of, consents to, and irrevocably waives any defenses it may now have or hereafter acquire in any way relating to any or all of the following: (a) any agreement or arrangement for payment, extension or subordination, of the whole or any part of any Covered Entity’s obligations under the Transaction Documents, (b) the modification, amendment, waiver or consent to departure of any of the terms of the Transaction Documents, including, without limitation, in the time, place or manner of payment or any increase in the Guaranteed Obligations resulting from the extension of additional credit to any Covered Entity or otherwise, (c) the forbearance by the Guaranteed Party in the exercise of any rights against any Covered Entity, (d) the change in location or release of any collateral of any Covered Entity (if any) or the taking of a security interest in any additional or substituted collateral of any Covered Entity (if any), (e) any lack of validity or enforceability of any Transaction Document or any agreement or instrument relating thereto, (f) any defense arising by reason of any claim or defense based upon an election of remedies by the Guaranteed Party that in any manner impairs, reduces, releases or otherwise adversely affects the subrogation, reimbursement, exoneration, contribution or indemnification rights of Performance Guarantor or other rights of Performance Guarantor to proceed against any Covered Entity, (g) any defense based on the right of set-off or counterclaim against or in respect of the obligations owed by any Covered Entity under the Transaction Documents, or (h) any other circumstance (including, without limitation, any statute of limitations) or any existence of or reliance on any representation by the Guaranteed Party that might otherwise constitute a defense available to, or a discharge of any Covered Entity or any other guarantor or surety. The only

 

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defenses Performance Guarantor shall have under this Performance Guaranty are the defenses described in Section  12 and the payment in full of the Guaranteed Obligations and Expense Obligations.

5.   This Performance Guaranty will continue to be effective or will be reinstated, as the case may be, if at any time any payment made to the Guaranteed Party of any of the Guaranteed Obligations is rescinded or must be returned upon the occurrence of any bankruptcy proceeding of any Covered Entity, as if such payment had not been made.

6.   This Performance Guaranty is a continuing guaranty and shall continue in full force and effect until terminated pursuant to the last sentence of this Section  6 . Upon the Final Payout Date, this Performance Guaranty shall automatically terminate (subject to the reinstatement provisions set forth in Section  5 of this Performance Guaranty).

7.   Performance Guarantor hereby unconditionally and irrevocably agrees not to exercise any rights that it may now have or hereafter acquire against any Covered Entity that arise from the existence, payment, performance or enforcement of this Performance Guaranty, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification and any right to participate in any claim or remedy of the Guaranteed Party against such Covered Entity, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, unless and until all of the Guaranteed Obligations and Expense Obligations shall have been paid in full in cash. If any amount shall be paid to Performance Guarantor in violation of the immediately preceding sentence at any time prior to the payment in full in cash of the Guaranteed Obligations and Expense Obligations, such amount shall be received and held in trust for the benefit of the Guaranteed Party, and shall forthwith be paid or delivered to the Guaranteed Party in the same form as so received (with any necessary endorsement or assignment) to be credited and applied to the Guaranteed Obligations and Expense Obligations, as applicable, and all other amounts payable under this Performance Guaranty.

8.   TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, PERFORMANCE GUARANTOR AND THE GUARANTEED PARTY HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS PERFORMANCE GUARANTY. Any assignee of the Guaranteed Party permitted by the Transaction Documents and all subsequent assignees permitted by the Transaction Documents shall have all of the rights of the Guaranteed Party hereunder and may enforce this Performance Guaranty with the same force and effect as if such Guaranty were given to such assignee in the first instance. The invalidity, illegality or unenforceability of any provision of this Performance Guaranty shall not affect the validity, legality or enforceability of any of its other provisions. THIS PERFORMANCE GUARANTY, INCLUDING THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. This Performance Guaranty shall be binding on Performance Guarantor and its successors and assigns.

9.   PERFORMANCE GUARANTOR AND THE GUARANTEED PARTY HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF ANY NEW YORK STATE OR FEDERAL COURT SITTING IN NEW YORK CITY, NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS PERFORMANCE GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY. PERFORMANCE GUARANTOR AND THE GUARANTEED PARTY WAIVE, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING. THE PARTIES HERETO AGREE

 

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THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. PERFORMANCE GUARANTOR CONSENTS TO THE SERVICE OF ANY AND ALL PROCESS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES OF SUCH PROCESS DIRECTED TO UNDERSIGNED AT ITS ADDRESS SET FORTH BELOW.

10.   Performance Guarantor represents and warrants to each Secured Party as of the date hereof, on each Settlement Date and on the day of each Investment, Release and delivery of an Information Package:

(a)         Organization and Good Standing . Performance Guarantor is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Nevada. Performance Guarantor is duly qualified to do business as a foreign corporation in good standing in all other jurisdictions which require such qualification, except to the extent that failure to so qualify would not have a Material Adverse Effect.

(b)         Power and Authority; Due Authorization. Performance Guarantor has all necessary corporate power and authority to (i) execute and deliver this Performance Guaranty and the other Transaction Documents to which it is a party and (ii) perform its obligations under this Performance Guaranty and the other Transaction Documents to which it is a party and the execution, delivery and performance of, and the consummation of the transactions provided for in, this Performance Guaranty and the other Transaction Documents to which it is a party have been duly authorized by Performance Guarantor by all necessary corporate action.

(c)         Binding Obligations. This Performance Guaranty and each of the other Transaction Documents to which it is a party constitutes legal, valid and binding obligations of Performance Guarantor, enforceable against Performance Guarantor in accordance with their respective terms, except (i) as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, 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.

(d)         No Conflict or Violation. The execution, delivery and performance of, and the consummation of the transactions contemplated by, this Performance Guaranty and each other Transaction Document to which Performance Guarantor is a party, and the fulfillment 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 organizational documents of Performance Guarantor or any material indenture, sale agreement, credit agreement, loan agreement, security agreement, mortgage, deed of trust or other material agreement or instrument to which Performance Guarantor is a party or by which it or any of its property is bound, (ii) result in the creation or imposition of any material Adverse Claim (other than Permitted Adverse Claims) upon any of its properties pursuant to the terms of any such indenture, credit agreement, loan agreement, agreement, mortgage, deed of trust or other material agreement or instrument, other than this Performance Guaranty and the other Transaction Documents or (iii) conflict with or violate any Applicable Law, except in each case to the extent that any such conflict, breach, default, Adverse Claim or violation could not reasonably be expected to have a Material Adverse Effect.

(e)         Litigation and Other Proceedings. There is no action, suit, proceeding or investigation pending, or to Performance Guarantor’s actual knowledge threatened, against Performance Guarantor before any Governmental Authority: (i) asserting the invalidity of this Performance Guaranty or any of the other Transaction Documents to which Performance Guarantor is a party or any of the transactions

 

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contemplated hereby or thereby; or (ii) except as publicly disclosed in reports filed under the Exchange Act prior to the date hereof, which individually or in the aggregate for all such actions, suits, proceedings and investigations, could reasonably be expected to have a Material Adverse Effect.

(f)         No Consents. Performance Guarantor is not required to obtain the consent of any other party or any consent, license, approval, registration, authorization or declaration of or with any Governmental Authority in connection with the execution, delivery, or performance of this Performance Guaranty or any other Transaction Document to which it is a party that has not already been obtained, except (i) where the failure to obtain such consent, license, approval, registration, authorization or declaration could not reasonably be expected to have a Material Adverse Effect or (ii) filings with the SEC to the extent required by Applicable Law.

(g)         Compliance with Applicable Law . Performance Guarantor (i) has maintained in effect all qualifications required under Applicable Law applicable to Performance Guarantor and (ii) has complied with all Applicable Laws applicable to Performance Guarantor, except to the extent the failure to maintain such qualifications or comply with such Applicable Laws could not reasonably be expected to have a Material Adverse Effect.

(h)         Accuracy of Information . All certificates, reports, statements, documents and other information furnished to the Administrative Agent or any other Secured Party by Performance Guarantor pursuant to any provision of this Performance Guaranty or any other Transaction Document, or in connection with or pursuant to any amendment or modification of, or waiver under, this Performance Guaranty or any other Transaction Document, taken together with any information contained in the public filings made by Performance Guarantor with the SEC pursuant to the 1934 Act, is, at the time the same are so furnished, complete and correct in all material respects on the date the same are furnished to the Administrative Agent or such other Secured Party, and does 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 materially misleading in light of the circumstances under which such statements were made; provided , that , with respect to projected financial information provided by or on behalf of Performance Guarantor, Performance Guarantor represents only that such information was prepared in good faith by management of Performance Guarantor on the basis of assumptions believed by such management to be reasonable as of the time made.

(i)         Other Transaction Documents . Each representation and warranty made by Performance Guarantor under each other Transaction Document to which it is a party is true and correct in all material respects as of the date when made.

(j)         Investment Company Act . Performance Guarantor is not an “investment company,” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act.

(k)         Anti-Corruption Laws and Sanctions . Performance Guarantor has implemented and maintains in effect policies and procedures designed to promote and achieve compliance by Performance Guarantor, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and Performance Guarantor, its Subsidiaries and to the knowledge of Performance Guarantor its directors, officers, employees and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects. None of (i) Performance Guarantor, any Subsidiary of Performance Guarantor or to the knowledge of Performance Guarantor any of the directors or officers of Performance Guarantor, (ii) to the knowledge of Performance Guarantor or such Subsidiary, any director or officer of any Subsidiary of Performance Guarantor or (iii) to the knowledge of Performance Guarantor, any employee or agent of Performance Guarantor or any

 

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Subsidiary that will act in any capacity in connection with or benefit from the facility established under the Transaction Documents, is a Sanctioned Person.

(l)         Financial Condition . The audited consolidated balance sheet of Performance Guarantor and its consolidated Subsidiaries as of April 1, 2018 and the related audited statements of income and shareholders’ equity of Performance Guarantor and its consolidated Subsidiaries for the fiscal year then ended, copies of which have been furnished to the Administrative Agent and the Group Agents, present fairly in all material respects the consolidated financial position of Performance Guarantor and its consolidated Subsidiaries for the period ended on such date, all in accordance with GAAP consistently applied.

(m)         Solvency . Performance Guarantor is Solvent.

(n)         Separateness . Performance Guarantor is aware that the Administrative Agent and the other Secured Parties have entered into the Receivables Purchase Agreement in reliance on the Seller being a separate entity from Performance Guarantor and Performance Guarantor’s other Affiliates (including, without limitation, the Covered Entities) and has taken such actions and implemented such procedures as are necessary on its part to ensure that Performance Guarantor and each of its Affiliates (including, without limitation, the Covered Entities) will take all steps necessary to maintain the Seller’s identity as a separate legal entity from Performance Guarantor and its Affiliates (including, without limitation, the Covered Entities) and to make it manifest to third parties that the Seller is an entity with assets and liabilities distinct from those of Performance Guarantor and its Affiliates (including, without limitation, the Covered Entities).

(o)         ERISA . Except as disclosed in reports filed under the Exchange Act by Performance Guarantor prior to the date hereof:

(i)        No ERISA Event has occurred or is reasonably expected to occur (other than for premiums payable under Title IV of ERISA), that would reasonably be expected to result in a liability to Performance Guarantor or its ERISA Affiliates of more than $250,000,000 over the amount previously reflected for any such liabilities, in accordance with GAAP, on the financial statements delivered pursuant to Section  8.02(b)(v) of the Receivables Purchase Agreement;

(ii)        Schedule B (Actuarial Information) to Performance Guarantor’s most recently completed annual report (Form 5500 Series) for each Pension Plan, copies of which have been filed with the Internal Revenue Service and furnished to the Administrative Agent, is complete and, to the best knowledge of Performance Guarantor, accurate, and since the date of such Schedule B there has been no change in the funding status of any such Pension Plan except any change that would not reasonably be expected to have a material adverse effect on the business, financial condition or operations of Performance Guarantor and its Subsidiaries, taken as a whole;

(iii)        As of the most recent valuation date for each Multiemployer Plan for which the actuarial report is available, the potential liability to Performance Guarantor or any of its ERISA Affiliates for a complete withdrawal from such Multiemployer Plan, when aggregated with such potential liability for a complete withdrawal for all Multiemployer Plans, based on information available pursuant to Section 4221(e) of ERISA, does not exceed $250,000,000;

(iv)        Performance Guarantor and each of its ERISA Affiliates are in compliance with all applicable provisions and requirements of ERISA and the regulations and published interpretations thereunder with respect to each Employee Benefit Plan, and have performed all their obligations under each Employee Benefit Plan except for any such failure to perform or

 

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comply that would not reasonably be expected to have a material adverse effect on the business, financial condition or operations of Performance Guarantor and its Subsidiaries, taken as a whole;

(v)        Each Employee Benefit Plan that is intended to qualify under Section 401(a) of the Code has received a determination letter from the Internal Revenue Service that the Employee Benefit Plan is so qualified (or a timely application for such a determination letter is pending), and to the best of Performance Guarantor’s knowledge, the Employee Benefit Plan has not been operated in any way that would result in the Employee Benefit Plan no longer being so qualified except as would not reasonably be expected to have a material adverse effect on the business, financial condition or operations of Performance Guarantor and its Subsidiaries, taken as a whole; and

(vi)        Neither Performance Guarantor nor any ERISA Affiliate has been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is insolvent, in reorganization or has been terminated or has been determined to be in “endangered” or “critical” status, within the meaning of Title IV of ERISA, and, to the best knowledge of Performance Guarantor, no Multiemployer Plan is reasonably expected to be insolvent, in reorganization or to be terminated or to be determined to be in “endangered” or “critical” status within the meaning of Title IV of ERISA, in each case, resulting in liability to Performance Guarantor or its ERISA Affiliates of more than $250,000,000.

(p)         Preliminary Statements . The statements set forth in the preliminary statements to this Performance Guaranty are true and correct.

(q)         Reaffirmation of Representations and Warranties . On the date of each Investment, on the date of each Release, on each Settlement Date and on the date each Information Package is delivered to the Administrative Agent or any Group Agent under the Receivables Purchase Agreement, Performance Guarantor shall be deemed to have certified that (i) all representations and warranties of Performance Guarantor hereunder are 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) on and as of such day as though made on and as of such day, except for representations and warranties which apply as 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 or warranty shall be true and correct as made) as of such date) and (ii) no Event of Termination, Non-Reinvestment Event, Unmatured Event of Termination or Unmatured Non-Reinvestment Event has occurred and is continuing or will result from such Investment or Release.

11.   Performance Guarantor covenants and agrees that, from the date hereof until the Final Payout Date, Performance Guarantor will observe and perform all of the following covenants:

(a)         Ownership and Control . Performance Guarantor shall continue to own, directly or indirectly, 100% of the issued and outstanding Capital Stock and other equity interests of each Originator and the Seller; provided , however , that with respect to CSC Consulting, CSC shall continue to own only CSC Consulting’s common stock and Class B preferred shares but not CSC Consulting’s Class A participating preferred shares. Without limiting the generality of the foregoing, Performance Guarantor shall not permit the occurrence of any Change in Control.

(b)         Existence . Performance Guarantor shall keep in full force and effect its existence and rights as a corporation under the laws of the State of Nevada, and shall obtain and preserve its qualification to do business in each jurisdiction in which such qualification is or shall be necessary to

 

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protect the validity and enforceability of this Performance Guaranty, the other Transaction Documents and the Support Assets except to the extent the failure to maintain such qualification could not reasonably be expected to have a Material Adverse Effect.

(c)         Compliance with Laws . Performance Guarantor will comply with all Applicable Laws to which it may be subject, except to the extent any non-compliance would not reasonably be expected to have a Material Adverse Effect.

(d)         Sale of Assets . Performance Guarantor will not, and will not permit any Covered Entity to, directly or indirectly sell, transfer, assign, convey or lease whether in one or a series of transactions, all or substantially all of its assets (other than in accordance with the Transaction Documents), unless (i) the Guaranteed Party has received 30 days’ prior notice thereof, (ii) no Event of Termination, Unmatured Event of Termination, Non-Reinvestment Event or Unmatured Non-Reinvestment Event has occurred and is continuing or would result immediately after giving effect thereto, (iii) the Guaranteed Party has received executed copies of all documents, certificates and opinions (including, without limitation, opinions relating to bankruptcy and UCC matters) as the Guaranteed Party shall reasonably request, (iv) if Performance Guarantor is not the surviving entity, the surviving entity provides an acknowledgment or reaffirmation of its obligations hereunder and under the other Transaction Documents to which it (or the applicable non-surviving entity) was a party, and (v) Performance Guarantor has promptly executed (if necessary) and delivered all further instruments and documents, and has taken all further actions, that may be necessary or desirable, or that the Guaranteed Party may reasonably request, to enable the Guaranteed Party (on behalf of the Secured Parties) to exercise and enforce their respective rights and remedies under this Performance Guaranty.

(e)         Actions Contrary to Separateness . Performance Guarantor will not take any action inconsistent with the terms of Section  8.03 of the Receivables Purchase Agreement.

12.   Except as otherwise provided in this Performance Guaranty, Performance Guarantor shall be under no greater obligation or greater liability under this Performance Guaranty in relation to any Guaranteed Obligation than Performance Guarantor would have been under the Transaction Documents if Performance Guarantor had been named as an Originator in the Transaction Documents and any defenses available to an Originator in respect of its obligations under the Transaction Documents or otherwise shall be available to Performance Guarantor, and Guaranteed Party may not recover under the Transaction Documents, this Performance Guaranty or otherwise for the same loss more than once. For the avoidance of doubt, this Section shall not be construed as superseding or derogating from the agreements and waivers set forth in Sections 3 or 4 above.

13.   Unless otherwise defined herein, capitalized terms defined in the Receivables Purchase Agreement and used herein shall have the meanings given to them in the Receivables Purchase Agreement.

14.   Performance Guarantor acknowledges that each Secured Party may assign its rights, remedies, powers and privileges under this Performance Guaranty to the extent permitted in the Receivables Purchase Agreement. Performance Guarantor agrees that the Guaranteed Party and the Secured Parties shall have the right to enforce this Performance Guaranty and to exercise directly all of its rights, remedies, powers and privileges under this Performance Guaranty (including the right to give or withhold any consents or approvals to be given or withheld by it under this Performance Guaranty) and Performance Guarantor agrees to cooperate fully with the Guaranteed Party and the Secured Parties in the exercise of such rights, remedies, powers and privileges.

15.   No amendment or waiver of any provision of this Performance Guaranty shall be effective unless the same shall be in writing and signed by the Guaranteed Party and Performance Guarantor, and no consent to any departure by Performance Guarantor herefrom, shall in any event be effective

 

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unless the same shall be in writing and signed by the Guaranteed Party, and then such amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

16.   All notices and other communications hereunder shall, unless otherwise stated herein, be in writing and unless otherwise stated shall be made by email or letter to each party hereto, at its address set forth under its name on Schedule III of the Receivables Purchase Agreement or at such other address as shall be designated by such party in a written notice to the other parties hereto. All notices, requests and demands shall be deemed to have been duly given or made (a) when dispatched by email during the recipient’s normal business hours when the confirmation showing the completed transmission has been received, or (b) if mailed via a reputable international courier, when it has been left at the relevant address or five (5) Business Days after being delivered to such reputable international courier, in an envelope addressed to the applicable person at that address and to the attention of the person(s) set forth above. Each party to this Performance Guaranty shall promptly inform the other parties hereto of any changes in their respective addresses, email address specified herein.

17.   This Performance Guaranty is the product of mutual negotiations by the parties thereto and their counsel, and no party shall be deemed the draftsperson of this Performance Guaranty or any provision hereof or to have provided the same. Accordingly, in the event of any inconsistency or ambiguity of any provision of this Performance Guaranty, such inconsistency or ambiguity shall not be interpreted against any party because of such party’s involvement in the drafting thereof.

18.   The Administrative Agent and the other Secured Parties may at any time during the continuance of an Event of Termination, setoff, appropriate and apply (without presentment, demand, protest or other notice which are hereby waived) any deposits and any other indebtedness held or owing by such Person (including by any branches or agencies of such Person) to, or for the account of, Performance Guarantor against the obligations owing by Performance Guarantor hereunder (even if contingent or unmatured); provided that such Person shall notify Performance Guarantor promptly following such setoff

19.   On the date hereof, the Existing Guaranty shall be amended, restated and superseded in its entirety by this Performance Guaranty. Performance Guarantor acknowledges and agrees that (i) this Performance Guaranty does not constitute a novation or termination of the Existing Guaranty as in effect immediately prior to the effectiveness of this Performance Guaranty and (ii) the obligations of Performance Guarantor under the Existing Guaranty as in effect immediately prior to the effectiveness of this Performance Guaranty are in all respects continuing (as amended and restated hereby) with only the terms thereof being modified as provided in this Performance Guaranty. Each reference to the Existing Guaranty or the “Performance Guaranty” in any Transaction Document shall be deemed to be a reference to this Performance Guaranty as amended and restated hereby.

[Signature page follows.]

 

10


Dated Effective as of the date first written above.

 

DXC TECHNOLOGY COMPANY, a Nevada corporation
By:   /s/ Paul N. Saleh
Name:   Paul N. Saleh
Title:   Executive Vice President and Chief Financial Officer

 

By:   /s/ William L. Deckelman, Jr.
Name:   William L. Deckelman, Jr.
Title:   Executive Vice President, General Counsel and Secretary

 

NOTICE ADDRESS:

DXC TECHNOLOGY COMPANY

1775 Tysons Boulevard

Tysons, VA 22102

USA

Attention: Executive Vice President, General Counsel and Secretary

 

11


PNC BANK, NATIONAL ASSOCIATION
By:   /s/ Christopher Blaney
Name:   Christopher Blaney
Title:   Senior Vice President

 

12

Exhibit 10.4

SIXTH INCREMENTAL ASSUMPTION AGREEMENT

SIXTH INCREMENTAL ASSUMPTION AGREEMENT, dated as of September 26, 2018 (this “ Agreement ”), by and among DXC Technology Company (as successor to Computer Sciences Corporation), a Nevada corporation (the “ Company ”), and the incremental lenders party hereto (in such capacity, collectively, the “ Incremental Lenders ” and each, individually, an “ Incremental Lender ”) and consented to, with respect to the New Lender (as defined below) only, by the Swing Line Banks party hereto and consented to, with respect to the New Lender only, and accepted by Citibank, N.A., as administrative agent (the “ Agent ”) for the Lenders party to the Credit Agreement referred to below.

W I T N E S S E T H:

WHEREAS, the Company, each lender from time to time party thereto (the “ Lenders ”), the Designated Subsidiaries from time to time party thereto and the Agent are parties to that certain Amended and Restated Credit Agreement dated as of October 11, 2013, as amended by Amendment No. 1 to the Credit Agreement dated as of April 21, 2016, Amendment No. 2 to the Credit Agreement dated as of June 21, 2016 and Waiver and Amendment No. 3 to the Amended and Restated Credit Agreement dated as of February 17, 2017 and as supplemented by Incremental Assumption Agreement dated as of June 15, 2016, Second Incremental Assumption Agreement dated as of July 25, 2016, Third Incremental Assumption Agreement dated as of December 30, 2016, Assumption Agreement and Joinder dated as of April 3, 2017, Fourth Incremental Assumption Agreement dated as of April 3, 2017 and Fifth Incremental Assumption Agreement dated as of September 27, 2017 (as further amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the “ Credit Agreement ”) (capitalized terms not otherwise defined in this Agreement have the same meanings assigned thereto in the Credit Agreement); and

WHEREAS, the Company has, by notice to the Agent delivered pursuant to Section 2.20 of the Credit Agreement, requested incremental commitments (the “ Incremental Commitments ”) in an aggregate principal amount of $190,000,000.

WHEREAS, on August 21, 2018, the Company has, by notice to the Agent delivered pursuant to Section 2.16 of the Credit Agreement, requested that the Commitment Termination Date be extended for a period of one year from the Commitment Termination Date now in effect (such extension, the “ Extension ”).

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of all of which are hereby acknowledged, the parties hereto hereby agree as follows:

SECTION 1.     Incremental Lenders and the Incremental Commitments . Pursuant to Section 2.20 of the Credit Agreement and subject to the satisfaction or waiver of the conditions to effectiveness of this Agreement set forth in Section  4 of this Agreement:

(a)        Each Incremental Lender severally agrees to provide Incremental Commitments in the principal amount for such Incremental Lender set forth on Schedule A hereto. The aggregate principal amount of the Incremental Commitments being provided by all of the Incremental Lenders pursuant to this Agreement is $190,000,000.

(b)        The Incremental Commitments set forth on Schedule A hereto shall have terms identical to the terms of the Tranche A Commitments outstanding under the Credit Agreement on the

 

1


Effective Date that have a Commitment Termination Date of January 15, 2023 (including, without limitation, with respect to the maturity date, pricing, mandatory prepayments and voluntary prepayments) and shall otherwise be subject to the provisions of the Credit Agreement and the other Loan Documents. On and after the Effective Date, each reference to (x) a “Tranche A Commitment” or “Tranche A Commitments” or (y) a “Tranche A Advance” or “Tranche A Advances” in the Credit Agreement or herein shall be deemed to include the Incremental Commitments and any Incremental Advances made in respect of the Incremental Commitments established pursuant to this Agreement and all other related terms will have correlative meanings.

(c)        Each Incremental Lender hereby notifies the Company and the Agent of its willingness extend the Commitment Termination Date with respect to its Incremental Commitment for a period of one year and such Commitment Termination Date with respect to its Incremental Commitment will be extended on the date of the effectiveness of the Extension as provided in Section 2.16 of the Credit Agreement.

(d)        Each of the parties hereto hereby agrees that the Agent may take any and all action as may be reasonably necessary, including the effecting of notional assignments between the Incremental Lenders and the other Tranche A Lenders of outstanding Tranche A Advances to ensure that, after giving effect to this Agreement, all Incremental Advances, when originally made, are included in each Borrowing of outstanding Advances under the Tranche A Facility on a pro rata basis.

SECTION 2.     Amendment to the Credit Agreement .

(a)        From and after the Effective Date, Schedule I to the Credit Agreement is hereby replaced in its entirety with Schedule I hereto.

SECTION 3.     Representations and Warranties . By its execution of this Agreement, the Company hereby represents and warrants to the Incremental Lenders that:

(a)        the representations and warranties set forth in Article IV of the Credit Agreement are correct in all material respects (except those representations and warranties qualified by materiality, which shall be true and correct) on and as of the Effective Date, as though made on and as of such date, except to the extent that any such representation or warranty expressly relates only to an earlier date, in which case it was correct in all material respects (except those representations and warranties qualified by materiality, which shall be true and correct) as of such earlier date; and

(b)        on and as of the Effective Date, no Event of Default or Potential Event of Default shall have occurred and be continuing or would result from the effectiveness of the Incremental Commitments.

SECTION 4.     Conditions of Effectiveness of the Incremental Commitments . This Agreement shall become effective on the date (the “ Effective Date ”) when (unless otherwise agreed among the Incremental Lenders and the Company, and consented to by the Agent (such consent not to be unreasonably withheld or delayed)) the Agent shall have received:

(a)        an executed counterpart of this Agreement from the Company, the Agent, each Swing Line Bank and each Incremental Lender;

(b)        copies of the resolutions of the Board of Directors of the Company, approving this Agreement, certified as of the Effective Date by the Secretary or an Assistant Secretary of the Company;

 

2


(c)        a favorable opinion of William L. Deckelman, Jr., Esq., General Counsel of the Company, dated as of the Effective Date;

(d)        a certificate of an authorized officer of the Company, dated the Effective Date, stating that the representations and warranties of the Company contained in Section  3 of this Agreement are correct;

(e)        a notice from the Company requesting the Incremental Commitments and satisfying the requirements set forth in Section 2.20(a) of the Credit Agreement; and

(f)        upon the request of any Incremental Lender, in the case of any Borrower that qualifies as a “legal entity customer” under 31 C.F.R. § 1010.230, a duly executed and completed certification regarding beneficial ownership as required by 31 C.F.R. § 1010.230 in relation to such Borrower.

SECTION 5.     Acknowledgment of New Lender . Bayerische Landesbank, New York Branch (the “ New Lender ”) (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Agreement and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all the requirements to be a Lender under Section 9.07(b)(iii), (v) and (vi) of the Credit Agreement (subject to such consents, if any, as may be required under Section 9.07(b)(iii) of the Credit Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of its Incremental Commitments, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by its Incremental Commitments and either it, or the Person exercising discretion in making its decision to provide its Incremental Commitments, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement, and has received, or has been accorded the opportunity to receive, copies of the most recent financial statements delivered pursuant to Section 5.01(b) thereof and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Agreement and to provide its Incremental Commitments and (vi) it has, independently and without reliance upon the Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement and to provide its Incremental Commitments; and (b) agrees that (i) it will, independently and without reliance on the Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

SECTION 6.     Reference to and Effect on the Credit Agreement and the other Loan Documents .

(a)        On and after the Effective Date, each reference in the Credit Agreement to (i) “this Agreement,” “hereunder,” “hereof” or words of like import referring to the Credit Agreement, and each reference in any other Loan Document to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement, as amended by this Agreement and (ii) each Incremental Lender (x) shall become a “Lender” for all purposes of the Credit Agreement and the other Loan Documents and (y) shall have a “Tranche A Commitment” under the Credit Agreement.

 

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(b)        The Credit Agreement and each of the other Loan Documents, as specifically amended by this Agreement, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed.

(c)        The execution, delivery and effectiveness of this Agreement shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender under the Credit Agreement, nor constitute a waiver of any provision of the Credit Agreement.

(d)        On and after the Effective Date, this Agreement is subject to the provisions of Section 9.01 of the Credit Agreement and constitutes a Loan Document.

SECTION 7.     Costs and Expenses . The Company agrees to pay promptly on demand all reasonable costs and out-of-pocket expenses of the Agent (in its capacity as such) in connection with the preparation, execution, delivery and administration, modification and amendment of this Agreement (including, without limitation, the reasonable fees and out-of-pocket expenses of a single counsel for the Agent with respect thereto and with respect to advising the Agent as to its rights and responsibilities hereunder) in accordance with the terms of Section 9.04 of the Credit Agreement.

SECTION 8.     Execution in Counterparts . This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by telecopier shall be effective as delivery of a manually executed counterpart of this Agreement.

SECTION 9.     Governing Law . This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

SECTION 10.     Headings . Section headings herein are included for convenience of reference only and shall not affect the interpretation of this Agreement.

[Remainder of Page Intentionally Left Blank]

 

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

 

DXC TECHNOLOGY COMPANY , as the Company
By:    

  /s/ H.C. Charles Diao                                               

 

    Name:  H.C. Charles Diao
    Title:    Senior Vice President, Finance and              Corporate Development

 

[Signature Page to DXC Sixth Incremental Assumption Agreement]


KBC BANK N.V. , as an Incremental Lender
By:     /s/ Francis X. Payne
    Name:  Francis X. Payne
    Title:    Managing Director

 

By:     /s/ Jana Sevcikova
    Name:  Jana Sevcikova
    Title:    Director, Corporate Banking, Central              European Desk

 

FIFTH THIRD BANK , as an Incremental Lender
By:     /s/ Will Batchelor
    Name:  Will Batchelor
    Title:    Vice President

 

BAYERISCHE LANDESBANK, NEW YORK BRANCH , as the Incremental Lender
By:     /s/ Varbin Staykoff
    Name:  Varbin Staykoff
    Title:    Senior Director

 

By:     /s/ Elke Videgain
    Name:  Elke Videgain
    Title:    Vice President

 

[Signature Page to DXC Sixth Incremental Assumption Agreement]


Consented to (with respect to the New Lender only) and accepted by:

 

  CITIBANK, N.A. , as Agent and a Swing Line Bank
  By:    

  /s/ Carolyn Kee                                                   

 

      Name:  Carolyn Kee
      Title:    Vice President

 

[Signature Page to DXC Sixth Incremental Assumption Agreement]


Consented to (with respect to the New Lender only) by:

 

    BANK OF AMERICA, N.A. , as a Swing Line Bank

    By:

 

 /s/ Arti Dighe

 

Name:  Arti Dighe

 

Title:    Vice President

 

     Lloyds Bank Corporate Markets plc , as a Swing Line Bank

    By:

 

 /s/ Kamala Basdeo

 

Name:  Kamala Basdeo

 

Title:    Assistant Manager, Transaction Execution

 

    By:      /s/ Tina Wong
    Name:  Tina Wong
    Title:    Assistant Manager, Transaction Execution

 

MUFG BANK, LTD. (FORMERLY KNOWN AS THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.) , as a Swing Line Bank

    By:      /s/ Lillian Kim
    Name:  Lillian Kim
    Title:    Director

 

[Signature Page to DXC Sixth Incremental Assumption Agreement]


ROYAL BANK OF CANADA. , as a Swing Line Bank
By:    /s/ Theodore Brown
  Name:  Theodore Brown
  Title:    Authorized Signatory

 

MIZUHO BANK, LTD. , as a Swing Line Bank
By:    /s/ Donna DeMagistris
  Name:  Donna DeMagistris
  Title:    Authorized Signatory

 

JPMORGAN CHASE BANK, N.A. , as a Swing Line Bank
By:    /s/ Peter B. Thauer
  Name:  Peter B. Thauer
  Title:    Managing Director

 

[Signature Page to DXC Sixth Incremental Assumption Agreement]


SCHEDULE A

INCREMENTAL COMMITMENTS

 

          Name of Incremental Lender             Incremental Commitments  
 

KBC Bank N.V.

  

US$60,000,000.00

 
 

Fifth Third Bank

  

US$60,000,000.00

 
  Bayerische Landesbank, New York Branch   

US$70,000,000.00

 
 

Total

 

  

US$190,000,000.00

 


Schedule I

LENDERS’ COMMITMENTS

 

Lender      Tranche A
Commitment
       Tranche B
Commitment
       Swing Line
Commitment
 

Citibank, N.A.

       US$210,000,000.00          US$55,000,000.00          US$200,000,000.00  

Bank of America, N.A.

       US$210,000,000.00          US$55,000,000.00          US$100,000,000.00  

Lloyds Bank Corporate Markets plc

       US$245,000,000.00          US$20,000,000.00          US$100,000,000.00  

Mizuho Bank, Ltd.

       US$218,333,333.34          US$46,666,666.66          US$100,000,000.00  
MUFG Bank, Ltd. (formerly known as The Bank of Tokyo-Mitsubishi UFJ, Ltd.)        US$210,000,000.00          US$55,000,000.00          US$100,000,000.00  

Royal Bank of Canada

       US$265,000,000.00                     US$100,000,000.00  

Barclays Bank PLC

       US$140,000,000.00          US$35,000,000.00             
Commerzbank AG, New York Branch        US$155,000,000.00          US$20,000,000.00             

PNC Bank, National Association

       US$160,000,000.00          US$15,000,000.00             
Sumitomo Mitsui Banking Corporation        US$175,000,000.00                        

The Royal Bank of Scotland plc

       US$158,666,666.66          US$16,333,333.34             

The Bank of Nova Scotia

       US$140,000,000.00                        

Danske Bank A/S

       US$125,000,000.00                        

Goldman Sachs Bank USA

       US$125,000,000.00                        

JPMorgan Chase Bank, N.A.

       US$98,000,000.00          US$27,000,000.00          US$100,000,000.00  

TD Bank, N.A.

       US$125,000,000.00                        

Wells Fargo Bank, National Association

       US$90,000,000.00          US$35,000,000.00             

Bayerische Landesbank, New York Branch

       US$70,000,000.00                        

BNP Paribas

       US$70,000,000.00                        

Commonwealth Bank of Australia

                  US$70,000,000.00             

DBS Bank Ltd.

                  US$70,000,000.00             

Fifth Third Bank

       US$70,000,000.00                        

ING Bank N.V., Dublin Branch

       US$70,000,000.00                        

KBC Bank N.V.

       US$70,000,000.00                        

Standard Chartered Bank

       US$55,000,000.00          US$15,000,000.00             

The Bank of New York Mellon

       US$70,000,000.00                        

U.S. Bank, National Association

       US$70,000,000.00                        

Capital One

       US$35,000,000.00                        

Scotiabank Europe plc

                  US$35,000,000.00             

Total Commitments:

       US$3,430,000,000.00          US$570,000,000.00          US$800,000,000.00