Exhibit  10.8


  


Execution Version


 


$54,000,000 REVOLVING CREDIT FACILITY

 


CREDIT AGREEMENT


 


by and among


 


PARK ELECTROCHEMICAL CORP., as Borrower,


 


THE GUARANTORS PARTY HERETO,


 


and


 


PNC BANK, NATIONAL ASSOCIATION, as Lender


 


Dated: as of January 30, 2013


 




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TABLE
OF CONTENTS


  


	 	 	Page
	 	 	 
	1.	DEFINED TERMS	1
	 	1.1	Certain Definitions.	1
	 	1.2	Construction.	17
	 	1.3	Accounting Principles; Changes in GAAP.	18
	 	 	 	 
	2.	REVOLVING CREDIT FACILITY	18
	 	2.1	Revolving Credit Commitment.	18
	 	2.2	Nature of Lender's Obligations with Respect to Revolving Credit Loans.	19
	 	2.3	Commitment Fees.	19
	 	2.4	Revolving Credit Loan Requests.	19
	 	2.5	Repayment of Revolving Credit Loans.	19
	 	2.6	Use of Proceeds.	20
	 	2.7	Letter of Credit Subfacility.	20
	 	 	2.7.1	Issuance of Letters of Credit.	20
	 	 	2.7.2	Letter of Credit Fees.	20
	 	 	2.7.3	Disbursements, Reimbursement.	21
	 	 	2.7.4	Documentation.	21
	 	 	2.7.5	Determinations to Honor Drawing Requests.	21
	 	 	2.7.6	Nature of Reimbursement Obligations.	21
	 	 	2.7.7	Indemnity.	22
	 	 	2.7.8	Liability for Acts and Omissions.	23
	 	 	 
	3.	RESERVED	24
	 	 	 
	4.	INTEREST RATES	24
	 	4.1	Interest Rate Options.	24
	 	 	4.1.1	Revolving Credit Interest Rate Options.	25
	 	 	4.1.2	Rate Quotations.	25
	 	4.2	Interest Periods.	25
	 	4.3	Interest After Default.	25
	 	 	4.3.1	Letter of Credit Fees, Interest Rate.	25
	 	 	4.3.2	Other Obligations.	25
	 	 	4.3.3	Acknowledgment.	26
	 	4.4	LIBOR Rate Unascertainable; Illegality; Increased Costs; Deposits Not Available.	26
	 	 	4.4.1	Unascertainable.	26
	 	 	4.4.2	Illegality; Increased Costs; Deposits Not Available.	26
	 	 	4.4.3	Lender's Rights.	26
	 	4.5	Selection of Interest Rate Options.	27



  



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	5.	PAYMENTS	27
	 	5.1	Payments.	27
	 	5.2	Interest Payment Dates.	27
	 	5.3	Voluntary Prepayments or Revolving Credit Commitment Reductions.	27
	 	5.4	Reserved.	27
	 	5.5	Increased Costs; Yield Protection.	28
	 	5.6	No Offsets.	28
	 	5.7	Indemnity.	28
	 	5.8	Interbank Market Presumption.	29
	 	 	 	 
	6.	REPRESENTATIONS AND WARRANTIES	29
	 	 	6.1.1	Organization and Qualification; Power and Authority; Compliance With Laws; Title to Properties; Event of Default.	29
	 	 	6.1.2	Subsidiaries and Owners; Investment Companies.	29
	 	 	6.1.3	Validity and Binding Effect.	30
	 	 	6.1.4	No Conflict; Material Agreements; Consents.	30
	 	 	6.1.5	Litigation.	30
	 	 	6.1.6	Financial Statements.	31
	 	 	6.1.7	Margin Stock.	31
	 	 	6.1.8	Full Disclosure.	32
	 	 	6.1.9	Taxes.	32
	 	 	6.1.10	Patents, Trademarks, Copyrights, Licenses, Etc.	32
	 	 	6.1.11	Liens in the Collateral.	32
	 	 	6.1.12	Insurance.	32
	 	 	6.1.13	ERISA Compliance.	32
	 	 	6.1.14	Environmental Matters.	33
	 	 	6.1.15	Solvency.	33
	 	 	 	 	 
	7.	CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT	33
	 	7.1	First Loans and Letters of Credit.	34
	 	 	7.1.1	Deliveries.	34
	 	 	7.1.2	Payment of Fees.	35
	 	7.2	Each Loan or Letter of Credit.	35
	 	 	 	 
	8.	COVENANTS	35
	 	8.1	Affirmative Covenants.	35
	 	 	8.1.1	Preservation of Existence, Etc.	35
	 	 	8.1.2	Payment of Liabilities, Including Taxes, Etc.	35
	 	 	8.1.3	Maintenance of Insurance.	36
	 	 	8.1.4	Maintenance of Properties and Leases.	36
	 	 	8.1.5	Visitation Rights.	36
	 	 	8.1.6	Keeping of Records and Books of Account.	36
	 	 	8.1.7	Compliance with Laws; Use of Proceeds.	36
	 	 	8.1.8	Further Assurances.	36
	 	 	8.1.9	Depository Accounts and Cash Management.	36



  



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	 	8.2	Negative Covenants.	37
	 	 	8.2.1	Indebtedness.	37
	 	 	8.2.2	Liens.	38
	 	 	8.2.3	Guaranties.	38
	 	 	8.2.4	Loans and Investments.	38
	 	 	8.2.5	Dividends and Related Distributions.	39
	 	 	8.2.6	Liquidations, Mergers, Consolidations, Acquisitions.	40
	 	 	8.2.7	Dispositions of Assets or Subsidiaries.	41
	 	 	8.2.8	Affiliate Transactions.	42
	 	 	8.2.9	Subsidiaries.	42
	 	 	8.2.10	Continuation of or Change in Business.	43
	 	 	8.2.11	Fiscal Year.	43
	 	 	8.2.12	Changes in Organizational Documents.	44
	 	 	8.2.13	Maximum Funded Debt Ratio.	44
	 	 	8.2.14	Minimum Interest Coverage Ratio.	44
	 	 	8.2.15	Negative Pledges.	44
	 	8.3	Reporting Requirements.	44
	 	 	8.3.1	Quarterly Financial Statements.	44
	 	 	8.3.2	Annual Financial Statements.	45
	 	 	8.3.3	Certificates of the Borrowers.	45
	 	 	8.3.4	Notices.	45
	 	 	 	 	 
	9.	DEFAULT	46
	 	9.1	Events of Default.	46
	 	 	9.1.1	Payments Under Loan Documents.	46
	 	 	9.1.2	Breach of Warranty.	47
	 	 	9.1.3	Breach of Negative Covenants or Visitation Rights.	47
	 	 	9.1.4	Breach of Other Covenants.	47
	 	 	9.1.5	Defaults in Other Agreements or Indebtedness.	47
	 	 	9.1.6	[reserved];	47
	 	 	9.1.7	Final Judgments or Orders.	47
	 	 	9.1.8	Loan Document Unenforceable.	47
	 	 	9.1.9	Uninsured Losses; Proceedings Against Assets.	48
	 	 	9.1.10	Events Relating to Plans and Benefit Arrangements.	48
	 	 	9.1.11	Change in Control.	48
	 	 	9.1.12	Relief Proceedings.	48
	 	9.2	Consequences of Event of Default.	48
	 	 	9.2.1	Events of Default Other Than Bankruptcy, Insolvency or Reorganization Proceedings.	48
	 	 	9.2.2	Bankruptcy, Insolvency or Reorganization Proceedings.	48
	 	 	9.2.3	Set-off.	49
	 	 	9.2.4	Application of Proceeds.	49
	 	 	 	 	 
	10.	MISCELLANEOUS	50
	 	10.1	Modifications, Amendments or Waivers.	50



  



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	 	10.2	No Implied Waivers; Cumulative Remedies.	50
	 	10.3	Expenses; Indemnity; Damage Waiver.	50
	 	 	10.3.1	Costs and Expenses.	50
	 	 	10.3.2	Indemnification by the Borrowers.	50
	 	 	10.3.3	Waiver of Consequential Damages, Etc.	51
	 	 	10.3.4	Payments.	52
	 	10.4	Holidays.	52
	 	10.5	Notices; Effectiveness; Electronic Communication.	52
	 	 	10.5.1	Notices Generally.	52
	 	 	10.5.2	Electronic Communications.	52
	 	 	10.5.3	Change of Address, Etc.	53
	 	10.6	Severability.	53
	 	10.7	Duration; Survival.	53
	 	10.8	Successors and Assigns.	53
	 	 	10.8.1	Successors and Assigns Generally.	53
	 	 	10.8.2	Assignments by Lender.	54
	 	 	10.8.3	Participations.	54
	 	 	10.8.4	Certain Pledges.	54
	 	10.9	Confidentiality.	54
	 	 	10.9.1	General.	54
	 	 	10.9.2	Sharing Information With Affiliates of the Lender.	55
	 	10.10	Counterparts; Integration; Effectiveness.	55
	 	 	10.10.1	Counterparts; Integration; Effectiveness.	55
	 	10.11	CHOICE OF LAW; SUBMISSION TO JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS; WAIVER OF JURY TRIAL.	55
	 	 	10.11.1	Governing Law.	55
	 	 	10.11.2	SUBMISSION TO JURISDICTION.	56
	 	 	10.11.3	WAIVER OF VENUE.	56
	 	 	10.11.4	SERVICE OF PROCESS.	56
	 	 	10.11.5	WAIVER OF JURY TRIAL.	57
	 	10.12	USA Patriot Act Notice.	57
	 	10.13	Anti-Money Laundering/International Trade Law Compliance.	57





  




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LIST OF SCHEDULES AND EXHIBITS


 


	SCHEDULES	 	 
	 	 	 
	SCHEDULE 1.1(A)	-	COMMITMENT OF LENDER AND ADDRESSES FOR NOTICES
	SCHEDULE 1.1(P)	-	EXISTING PERMITTED LIENS; INVESTMENT POLICY
	SCHEDULE 6.1.2	-	SUBSIDIARIES, EQUITY INTERESTS AND OPTIONS, WARRANTS AND OTHER RIGHTS
	SCHEDULE 6.1.13	-	PENSION PLANS
	SCHEDULE 8.2.4	-	LOANS
	SCHEDULE 8.2.7	-	FACILITY CLOSURES
	 	 	 
	EXHIBITS	 	 
	 	 	 
	EXHIBIT 1.1(G)(1)	-	FORM OF GUARANTOR JOINDER
	EXHIBIT 1.1(G)(2)	-	FORM OF GUARANTY AGREEMENT
	EXHIBIT 1.1(N)	-	FORM OF REVOLVING CREDIT NOTE
	EXHIBIT 1.1(P)	-	FORM OF PLEDGE AGREEMENT
	EXHIBIT 2.4	-	FORM OF LOAN REQUEST
	EXHIBIT 8.3.3.1	-	FORM OF COMPLIANCE CERTIFICATE


 




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CREDIT AGREEMENT


 


THIS CREDIT AGREEMENT (as hereafter amended,
modified, supplemented or restated, this “Agreement”) is dated as of January 30, 2013 and is made by and among
PARK ELECTROCHEMICAL CORP., a New York corporation (the “Parent Company”), and any of its Subsidiaries
that hereafter join this Agreement as Borrowers (with the Parent Company, each a “Borrower” and collectively,
the “Borrowers”), each of the GUARANTORS (as hereinafter defined) party hereto, and PNC BANK, NATIONAL
ASSOCIATION (the “Lender”).


 


RECITALS


 


The Borrowers have requested the Lender
to provide a revolving credit facility to the Borrowers in an aggregate principal amount not to exceed $54,000,000, on the
terms and subject to the conditions set forth in this Agreement. In consideration of their mutual covenants and agreements hereinafter
set forth and intending to be legally bound hereby, the parties hereto covenant and agree as follows:


 


1.          DEFINED
TERMS


 


1.1           Certain
Definitions.  In addition to words and terms defined elsewhere in this Agreement,
the following words and terms shall have the following meanings, respectively, unless the context hereof clearly requires otherwise:


 


Affiliate shall mean, with respect
to any Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or
is under common Control with the Person specified.


 


Approved Fund shall mean any fund that
is engaged in making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course of
business and that is administered or managed by (a) the Lender, (b) an Affiliate of the Lender or (c) an entity or an
Affiliate of an entity that administers or manages the Lender.


 


Authorized Officer shall mean, with
respect to any Loan Party, the Chief Executive Officer, President, Chief Financial Officer, Secretary or Treasurer of such Loan
Party or such other individuals, designated by written notice to the Lender from the Borrowers, authorized to execute notices,
reports and other documents on behalf of the Loan Parties required hereunder. The Borrowers may amend such list of individuals
from time to time by giving written notice of such amendment which shall be acknowledged by the Lender.


 


Base Rate shall mean, for any day,
a fluctuating per annum rate of interest equal to the highest of (a) the Federal Funds Open Rate, plus 0.5%, (b) the
Prime Rate, and (c) the Daily LIBOR Rate plus 100 basis points (1.0%). Any change in the Base Rate (or any component
thereof) shall take effect at the opening of business on the day such change occurs.


 




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Base Rate Option shall mean the option
of the Borrowers to have Loans bear interest at the rate and under the terms set forth in Section 4.1.1(i) [Revolving Credit
Base Rate Option].


 


Borrower shall mean individually and
Borrowers shall mean collectively the Parent Company and any of its Subsidiaries who hereafter join this Agreement as Borrowers.


 


Borrowing Date shall mean, with respect
to any Loan, the date for the making thereof or the renewal or conversion thereof at or to the same or a different Interest Rate
Option, which shall be a Business Day.


 


Borrowing Tranche shall mean specified
portions of Loans outstanding as follows: (a) any Loans to which a LIBOR Rate Option applies which become subject to the same
Interest Rate Option under the same Loan Request by the Borrowers shall constitute one Borrowing Tranche, and (b) all Loans
to which a Base Rate Option applies shall constitute one Borrowing Tranche.


 


Business Day shall mean any day other
than a Saturday or Sunday or a legal holiday on which commercial banks are authorized or required to be closed for business in
Pittsburgh, Pennsylvania and if the applicable Business Day relates to any Loan to which the LIBOR Rate Option applies, such day
must also be a day on which dealings are carried on in the London interbank market.


 


Capital Lease shall mean, at any time,
a lease with respect to which the lessee is required concurrently to recognize the acquisition of an asset and the incurrence of
a liability in accordance with GAAP.


 


Cash Collateralize shall mean to pledge
and deposit with or deliver to the Lender, as collateral for the Letter of Credit Obligations, cash or deposit account balances
pursuant to documentation satisfactory to the Lender. Such cash collateral shall be maintained in blocked, non-interest bearing
deposit accounts at the Lender.


 


Cash Flow shall mean the sum of net
income, interest expense, depreciation, amortization and other non-cash losses, minus distributions of the Parent Company
to its shareholders (other than distributions paid by the Parent Company from proceeds of the Loans in calendar year 2013), and
minus non-cash gains, in each case of the Borrowers and their Subsidiaries for such period determined
and consolidated in accordance with GAAP.


 


Change in Control shall mean:


 


(a)          any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act
of 1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity
as trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial owner” (as defined
in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial
ownership” of all securities that such person or group has the right to acquire, whether such right is exercisable immediately
or only after the passage of time (such


 




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right, an “option right”)), directly or indirectly, of 50% or more of
the equity securities of the Parent Company entitled to vote for members of the board of directors or equivalent governing body
of the Parent Company on a fully-diluted basis (and taking into account all such securities that such person or group has the right
to acquire pursuant to any option right); or


 


(b)          any
Person or two or more Persons acting in concert shall have acquired by contract or otherwise the power to exercise, directly or
indirectly, a controlling influence over the management or policies of the Parent Company, or control over the equity securities
of the Parent Company entitled to vote for members of the board of directors or equivalent governing body of the Parent Company
on a fully-diluted basis (and taking into account all such securities that such Person or group has the right to acquire pursuant
to any option right) representing 50% or more of the combined voting power of such securities.


 


Closing Date shall mean the date on
which the conditions specified in Sections 7.1 and 7.2 shall first have been satisfied, as confirmed in writing by (a) the Borrower
pursuant to its certificate delivered under Section 7.1.1(xi), and (b) the Lender (which writing may be from the Lender or its
counsel, and may be in the form of an electronic message). For the sake of clarity, the Closing Date shall occur prior to the funding
of any Loans or issuance of any Letters of Credit.


 


Code shall mean the Internal Revenue
Code of 1986, as the same may be amended or supplemented from time to time, and any successor statute of similar import, and the
rules and regulations thereunder, as from time to time in effect.


 


Collateral shall mean the collateral
under the Pledge Agreement and any cash collateral referred to in the definition of Cash Collateralize.


 


Commercial Letter of Credit shall mean
any letter of credit which is a commercial letter of credit issued in respect of the purchase of goods or services by one or more
of the Loan Parties or any Subsidiary thereof in the ordinary course of their business.


 


Commitment Fee shall have the meaning
specified in Section 2.3 [Commitment Fees].


 


Compliance Certificate shall have the
meaning specified in Section 8.3.3 [Certificates of the Borrowers].


 


Consolidated EBITDA for any period
of determination shall mean the sum of net income, interest expense, income tax expense, depreciation, amortization, non-cash restructuring
charges, accruals and reserves, transaction expenses for closing the Loans, non-cash charges relating to employee equity benefit
plans, non-cash net losses from disposed or discontinued operations and other non-cash losses, minus distributions of the
Parent Company to its shareholders (other than distributions paid by the Parent Company from proceeds of the Loans in calendar
year 2013) and minus non-cash gains, in each case of the Borrowers and their Subsidiaries for such period determined and
consolidated in accordance with GAAP.


 




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


 


Daily LIBOR Rate shall mean, for any
day, the rate per annum determined by the Lender by dividing (x) the Published Rate by (y) a number equal to 1.00 minus
the LIBOR Reserve Percentage on such day.


 


Dollar, Dollars, U.S. Dollars and the
symbol $ shall mean lawful money of the United States of America.


 


Drawing Date shall have the meaning
specified in Section 2.7.3 [Disbursements, Reimbursement].


 


Environmental
Laws shall mean all applicable federal, state, local, tribal, territorial and foreign Laws (including common law), constitutions,
statutes, treaties, regulations, rules, ordinances and codes and any consent decrees, settlement agreements, judgments, orders,
directives, policies or programs issued by or entered into with an Official Body pertaining or relating to: (i) pollution
or pollution control; (ii) protection of human health from exposure to regulated substances;
(iii) protection of the environment and/or natural resources; (iv) employee safety in the workplace; (v) the presence,
use, management, generation, manufacture, processing, extraction, treatment, recycling, refining, reclamation, labeling, packaging,
sale, transport, storage, collection, distribution, disposal or release or threat of release of regulated substances; (vi) the
presence of contamination; (vii) the protection of endangered or threatened species; and (viii) the protection of environmentally
sensitive areas.


 


ERISA shall mean the Employee Retirement
Income Security Act of 1974, as the same may be amended or supplemented from time to time, and any successor statute of similar
import, and the rules and regulations thereunder, as from time to time in effect.


 


ERISA Affiliate shall mean, at any
time, any trade or business (whether or not incorporated) under common Control with any of the Borrowers and treated as a single
employer under Section 414 of the Code.


 


ERISA Event shall mean (a) a reportable
event (under Section 4043 of ERISA and regulations thereunder) with respect to a Pension Plan; (b) a withdrawal by any Borrower
or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer
(as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e)
of ERISA; (c) a complete or partial withdrawal by any Borrower or any ERISA Affiliate from a Multiemployer Plan or notification
that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate, the treatment of a Plan amendment
as a termination under Sections 4041 or 4041A of ERISA of, or the commencement of proceedings by the PBGC to terminate, a Pension
Plan or Multiemployer Plan; (e) an event or condition which constitutes grounds under Section 4042 of ERISA for the termination
of, or the appointment of a trustee to administer, any Pension 


 




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Plan or Multiemployer Plan; or (f) the imposition of any liability
under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA or contributions due but
not delinquent, upon any Borrower or any ERISA Affiliate.


 


Event of Default shall mean any of
the events described in Section 9.1 [Events of Default] and referred to therein as an “Event of Default.”


 


Evergreen Letter of Credit shall mean
a Letter of Credit having an automatic renewal feature (subject to Lender’s annual right to not renew such Letter of Credit
on terms acceptable to the Lender) and a final expiration date prior to the Expiration Date.


 


Exchange Act shall mean the Securities
Exchange Act of 1934, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.


 


Expiration Date shall mean, with respect
to the Revolving Credit Commitment, January 30, 2018.


 


Federal Funds Open Rate for any day
shall mean the rate per annum (based on a year of 360 days and actual days elapsed) which is the daily federal funds open rate
as quoted by ICAP North America, Inc. (or any successor) as set forth on the Bloomberg Screen BTMM for that day opposite the caption
“OPEN” (or on such other substitute Bloomberg Screen that displays such rate), or as set forth on such other recognized
electronic source used for the purpose of displaying such rate as selected by the Lender (for purposes of this definition, an “Alternate
Source”) (or if such rate for such day does not appear on the Bloomberg Screen BTMM (or any substitute screen) or on
any Alternate Source, or if there shall at any time, for any reason, no longer exist a Bloomberg Screen BTMM (or any substitute
screen) or any Alternate Source, a comparable replacement rate determined by the Lender at such time (which determination shall
be conclusive absent manifest error); provided however, that if such day is not a Business Day, the Federal Funds Open Rate for
such day shall be the “open” rate on the immediately preceding Business Day. If and when the Federal Funds Open Rate
changes, the rate of interest hereunder with respect to any advance to which the Federal Funds Open Rate applies will change automatically
without notice to the Borrowers, effective on the date of any such change.


 


Funded Debt shall mean, without duplication,
all Indebtedness for borrowed money, capitalized lease obligations, reimbursement obligations in respect of letters of credit (that
are not fully collateralized by cash or cash equivalents, which is held by PNC), and guaranties of any such Indebtedness.


 


GAAP shall mean generally accepted
accounting principles as are in effect from time to time, subject to the provisions of Section 1.3 [Accounting Principles],
and applied on a consistent basis both as to classification of items and amounts.


 


Guarantor shall mean each of the parties
to this Agreement which is designated as a “Guarantor” on the signature page hereof and each other Person which joins
this Agreement as a Guarantor after the date hereof. As of the Closing Date, Nelco Products, Inc., a Delaware 


 




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corporation, Neltec,
Inc., a Delaware corporation and Park Aerospace Technologies Corp., a Kansas corporation, are Guarantors.


 


Guarantor Joinder shall mean a joinder
by a Person as a Guarantor under the Loan Documents in the form of Exhibit 1.1(G)(1).


 


Guaranty of any Person shall mean any
obligation of such Person guaranteeing or in effect guaranteeing any liability or obligation of any other Person in any manner,
whether directly or indirectly, including any agreement to indemnify or hold harmless any other Person, any performance bond or
other suretyship arrangement and any other form of assurance against loss, except endorsement of negotiable or other instruments
for deposit or collection in the ordinary course of business, including without limitation such Person’s liabilities under
agreements to indemnify that are (a) characterized as debt or guarantied debt, (b) the subject of footnotes in the Borrowers’
financial statements, or (c) if paid, could result in a Material Adverse Change, but excluding other agreements to indemnify in
the ordinary course of business.


 


Guaranty Agreement shall mean the Guaranty
and Suretyship Agreement of even date herewith in substantially the form of Exhibit 1.1(G)(2) executed and delivered by
each of the Guarantors, as the same may be amended, restated or otherwise modified.


 


Immaterial Domestic Subsidiary shall
mean, as of the Closing Date, any domestic Subsidiary of the Parent Company other than a Guarantor. In
accordance with Section 8.2.9, the Borrowers and Lender may agree in writing to designate (or remove the designation of) domestic
Subsidiaries of the Parent Company as “Immaterial Domestic Subsidiaries” from time to time after the Closing Date.


 


Immaterial Foreign Subsidiary shall
mean, as of the Closing Date, any foreign Subsidiary of the Parent Company other than Nelco Products Pte. Ltd., a Singapore entity.
In accordance with Section 8.2.9, the Borrowers and Lender may agree in writing to designate (or remove the designation of) foreign
Subsidiaries of the Parent Company as “Immaterial Foreign Subsidiaries” from time to time after the Closing Date.


 


Immaterial Subsidiary shall mean any
Immaterial Domestic Subsidiary or Immaterial Foreign Subsidiary, as the case may be.


 


Indebtedness shall mean, as to any
Person at any time, without duplication:


 


(a)          its
liabilities for borrowed money;


 


(b)          its
liabilities for the deferred purchase price of property acquired by such Person (excluding (i) accounts payable arising in the
ordinary course of business but including all liabilities created or arising under any conditional sale or other title retention
agreement with respect to any such property, and (ii) contingent earn-out payment obligations and other similar purchase price
adjustments that (A) are not characterized as debt, (B) are not the subject of footnotes in the Borrowers’ financial statements,
and (C) if paid, could not result in a Material Adverse Change) and its liabilities under agreements to indemnify that are (x)
characterized as debt, (y) the subject of footnotes in the Borrowers’ financial statements, or (z) if paid, could 


 




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result
in a Material Adverse Change, but excluding other agreements to indemnify in the ordinary course of business;


 


(c)          (i) all
liabilities appearing on its balance sheet in accordance with GAAP in respect of Capital Leases and (ii) all liabilities which
would appear on its balance sheet in accordance with GAAP in respect of Synthetic Leases assuming such Synthetic Leases were accounted
for as Capital Leases;


 


(d)          all
liabilities for borrowed money secured by any Lien with respect to any property owned by such Person (whether or not it has assumed
or otherwise become liable for such liabilities);


 


(e)          all
its liabilities in respect of letters of credit or instruments serving a similar function issued or accepted for its account by
banks and other financial institutions (whether or not representing obligations for borrowed money);


 


(f)          the
aggregate Swap Termination Value of all Interest Rate Hedges of such Person; and


 


(g)          any
Guaranty of such Person with respect to liabilities of a type described in any of clauses (a) through (f) hereof.


 


Indebtedness of any Person shall include all
obligations of such Person of the character described in clauses (a) through (g) to the extent such Person remains legally liable
in respect thereof notwithstanding that any such obligation is deemed to be extinguished under GAAP.


 


Indemnitee shall have the meaning specified
in Section 10.3.2 [Indemnification by the Borrowers].


 


Information shall mean all information
received from the Loan Parties or any of their Subsidiaries relating to the Loan Parties or any of such Subsidiaries or any of
their respective businesses, other than any such information that is available to the Lender on a non-confidential basis prior
to disclosure by the Loan Parties or any of their Subsidiaries.


 


Insolvency Proceeding shall mean, with
respect to any Person, (a) a case, action or proceeding with respect to such Person (i) before any court or any other
Official Body under any bankruptcy, insolvency, reorganization or other similar Law now or hereafter in effect, or (ii) for
the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator, conservator (or similar official) of any
Loan Party or otherwise relating to the liquidation, dissolution, winding-up or relief of such Person, or (b) any general
assignment for the benefit of creditors, composition, marshaling of assets for creditors, or other, similar arrangement in respect
of such Person's creditors generally or any substantial portion of its creditors undertaken under any Law.


 




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Interest Coverage Ratio shall mean
the ratio of Cash Flow to total interest expense, in each case of the Borrowers and their Subsidiaries for such period determined
and consolidated in accordance with GAAP.


 


Interest Period shall mean the period
of time selected by the Borrowers in connection with (and to apply to) any election permitted hereunder by the Borrowers to have
Revolving Credit Loans bear interest under the LIBOR Rate Option. Subject to the last sentence of this definition, such period
shall be one, two, three or six Months. Such Interest Period shall commence on the effective date of such Interest Rate Option,
which shall be (a) the Borrowing Date if the Borrowers are requesting new Loans, or (b) the date of renewal of or conversion to
the LIBOR Rate Option if the Borrowers are renewing or converting to the LIBOR Rate Option applicable to outstanding Loans. Notwithstanding
the second sentence hereof: (A) any Interest Period which would otherwise end on a date which is not a Business Day shall be extended
to the next succeeding Business Day unless such Business Day falls in the next calendar month, in which case such Interest Period
shall end on the next preceding Business Day, and (B) the Borrowers shall not select, convert to or renew an Interest Period for
any portion of the Loans that would end after the Expiration Date.


 


Interest Rate Hedge shall mean (a)
any and all interest rate swap transactions, basis swap transactions, basis swaps, credit derivative transactions, forward rate
transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or
bond price or bond index swaps or options or forward foreign exchange transactions, cap transactions, floor transactions, currency
options, spot contracts or any other similar transactions or any of the foregoing (including, but without limitation, any options
to enter into any of the foregoing), and (b) any and all transactions of any kind, and the related confirmations, which are subject
to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives
Association, Inc., International Foreign Exchange Master Agreement.


 


Interest Rate Option shall mean any
LIBOR Rate Option or Base Rate Option.


 


IRS shall mean the Internal Revenue
Service.


 


Law shall mean any law (including common
law), constitution, statute, treaty, regulation, rule, ordinance, opinion, release, ruling, order, injunction, writ, decree, bond,
judgment, authorization or approval, lien or award by or settlement agreement with any Official Body.


 


Lender shall mean PNC Bank, National
Association, and its successors and assigns, as lender of the Loans hereunder and issuer of Letters of Credit hereunder.


 


Lender Provided Interest Rate Hedge
shall mean an Interest Rate Hedge which is provided to any of the Loan Parties by the Lender or any of its Affiliates.


 


Letter of Credit shall have the meaning
specified in Section 2.7.1 [Issuance of Letters of Credit].


  




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Letter of Credit Fee shall have the
meaning specified in Section 2.7.2 [Letter of Credit Fees].


 


Letter of Credit Obligation shall mean,
as of any date of determination, the aggregate amount available to be drawn under all outstanding Letters of Credit on such date
(if any Letter of Credit shall increase in amount automatically in the future, such aggregate amount available to be drawn shall
currently give effect to any such future increase) plus without duplication the aggregate Reimbursement Obligations on such
date.


 


Letter of Credit Sublimit shall have
the meaning specified in Section 2.7.1 [Issuance of Letters of Credit].



  


LIBOR Rate shall mean with respect
to the Loans comprising any Borrowing Tranche to which the LIBOR Rate Option applies for any Interest Period, the interest rate
per annum determined by the Lender by dividing (the resulting quotient rounded upwards, if necessary, to the nearest 1/100th of
1% per annum) (i) the rate which appears on the Bloomberg Page BBAM1 (or on such other substitute Bloomberg page that displays
rates at which US dollar deposits are offered by leading banks in the London interbank deposit market), or the rate which is quoted
by another source selected by the Lender which has been approved by the British Bankers' Association as an authorized information
vendor for the purpose of displaying rates at which US dollar deposits are offered by leading banks in the London interbank deposit
market (for purposes of this definition, an “Alternate Source”), at approximately 11:00 a.m., London time, two
(2) Business Days prior to the commencement of such Interest Period as the London interbank offered rate for U.S. Dollars for an
amount comparable to such Borrowing Tranche and having a borrowing date and a maturity comparable to such Interest Period (or if
there shall at any time, for any reason, no longer exist a Bloomberg Page BBAM1 (or any substitute page) or any Alternate Source,
a comparable replacement rate determined by the Lender at such time (which determination shall be conclusive absent manifest error)),
by (ii) a number equal to 1.00 minus the LIBOR Reserve Percentage. LIBOR may also be expressed by the following formula:


 


	 	 	 	London interbank offered rates quoted by Bloomberg
	LIBOR Rate	=	 	or appropriate successor as shown on Bloomberg Page BBAM1
	 	 	 	1.00 - LIBOR Reserve Percentage


 


The LIBOR Rate shall be adjusted with respect
to any Loan to which the LIBOR Rate Option applies that is outstanding on the effective date of any change in the LIBOR Reserve
Percentage as of such effective date. The Lender shall give prompt notice to the Borrowers of the LIBOR Rate as determined or adjusted
in accordance herewith, which determination shall be conclusive absent manifest error.


 


LIBOR Rate Option shall mean the option
of the Borrowers to have Loans bear interest at the rate and under the terms set forth in Section 4.1.1(ii) [Revolving Credit
LIBOR Rate Option].


 


LIBOR Reserve Percentage shall mean
as of any day the maximum percentage in effect on such day, as prescribed by the Board of Governors of the Federal Reserve System
(or


 




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any successor) for determining the reserve
requirements (including supplemental, marginal and emergency reserve requirements) with respect to eurocurrency funding (currently
referred to as “Eurocurrency Liabilities”).


 


Lien shall mean any mortgage, deed
of trust, pledge, lien, security interest, charge or other encumbrance or security arrangement of any nature whatsoever, whether
voluntarily or involuntarily given, including any conditional sale or title retention arrangement, and any assignment, deposit
arrangement or lease intended as, or having the effect of, security and any filed financing statement or other notice of any of
the foregoing (whether or not a lien or other encumbrance is created or exists at the time of the filing); provided, however,
that a filed financing statement that was not authorized by the applicable debtor will not, by itself, constitute a Lien, so long
as the applicable debtor is pursuing in good faith with appropriate diligence to have such financing statement terminated of record,
for a period of time not to exceed ninety (90) days after the date of the applicable Person’s knowledge thereof.


 


Loan Documents shall mean this Agreement,
the Guaranty Agreement, the Note, the Pledge Agreement and any other instruments, certificates or documents delivered in connection
herewith or therewith.


 


Loan Parties shall mean the Borrowers
and the Guarantors.


 


Loan Request shall have the meaning
specified in Section 2.4 [Revolving Credit Loan Requests].


 


Loans shall mean collectively and Loan
shall mean separately all Revolving Credit Loans or any Revolving Credit Loan.


 


Material Adverse Change shall mean
any set of circumstances or events which (a) has any material adverse effect upon the validity or enforceability of the Loan Documents,
(b) is material and adverse to the business, assets, financial condition or results of operations of the Loan Parties and their
Subsidiaries, (c) impairs materially the ability of the Loan Parties to duly and punctually pay or perform the Obligations, or
(d) impairs materially the ability of the Lender to enforce its legal remedies pursuant to the Loan Documents.


 


Month, with respect to an Interest
Period under the LIBOR Rate Option, shall have the meaning commonly associated therewith; provided that if any LIBOR Rate
Interest Period begins on a day of a calendar month for which there is no numerically corresponding day in the month in which such
Interest Period is to end, the final month of such Interest Period shall be deemed to end on the last Business Day of such final
month.


 


Multiemployer Plan shall mean any employee
benefit plan which is a “multiemployer plan” within the meaning of Section 4001(a)(3) of ERISA and to which any
Borrower or any ERISA Affiliate is then making or accruing an obligation to make contributions or, within the preceding five Plan
years, has made or had an obligation to make such contributions.


 




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Note shall mean the promissory note
in the form of Exhibit 1.1(N) evidencing the Revolving Credit Loan.


 


Obligation shall mean any obligation
or liability of any of the Loan Parties, howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent,
now or hereafter existing, or due or to become due, under or in connection with (i) this Agreement, the Notes, the Letters
of Credit, or any other Loan Document whether to the Lender or its Affiliates or other persons provided for under such Loan Documents,
(ii) any Lender Provided Interest Rate Hedge and (iii) any Other Lender Provided Financial Service Product, including without limitation
any interest accruing thereon after maturity, the filing of any petition in bankruptcy or the commencement of any insolvency, reorganization
or like proceeding relating to a Loan Party.


 


Official Body shall mean the government
of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing,
regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the
European Union or the European Central Bank) and any group or body charged with setting financial accounting or regulatory capital
rules or standards (including, without limitation, the Financial Accounting Standards Board, the Bank for International Settlements
or the Basel Committee on Banking Supervision or any successor or similar authority to any of the foregoing).


 


Other Lender Provided Financial Service
Product shall mean an agreement or other arrangement under which the Lender or any Affiliate of the Lender provides any of
the following products or services to any of the Loan Parties: (a) credit cards, (b) credit card processing services, (c) debit
cards, (d) purchase cards, (e) ACH transactions, (f) cash management, including controlled disbursement, accounts or services,
or (g) foreign currency exchange.


 


Parent Company shall mean Park
Electrochemical Corp., a New York corporation, its successors and assigns.


 


Participant has the meaning specified
in Section 10.8.3 [Participations].


 


Payment Date shall mean the first day
of each calendar quarter after the date hereof and on the Expiration Date or upon acceleration of the Notes.


 


Payment In Full shall mean the indefeasible
payment in full in cash of the Loans and other Obligations hereunder (other than future obligations consisting of contingent Obligations
that may be owing or for which no claims have been made and which expressly survive termination of the Loan Documents), termination
of the Revolving Credit Commitment and cash collateralization, expiration and/or termination of all Letters of Credit.


 


PBGC shall mean the Pension Benefit
Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA or any successor.


 




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


 


Permitted Acquisitions shall have the
meaning assigned to such term in Section 8.2.6(ii).


 


Permitted Investments shall mean:


 


(a)          investments
in cash;


 


(b)          direct
obligations of the United States of America or any agency or instrumentality thereof or obligations backed by the full faith and
credit of the United States of America maturing in twelve (12) months or less from the date of acquisition;


 


(c)          short-term
commercial paper, including variable amount master demand notes, in Dollars, carrying the highest rating by Standard & Poor's
or P-1 by Moody's Investors Service, Inc. issued for corporations headquartered in the United States on the date of acquisition;


 


(d)          time
certificates of deposit or repurchase agreements (including those purchased through the Certificate of Deposit Account Registry
Service) in Dollars maturing within one year in commercial banks carrying the highest rating by Standard & Poor's or P-1 by
Moody's Investors Service, Inc. issued for commercial banks headquartered in the United States on the date of acquisition or having
capital, surplus and undivided profits in excess of $200,000,000;


 


(e)          corporate
and municipal obligations maturing in twelve (12) months or less from the date of acquisition and having a rating of AA or better
by Standard & Poor’s or Aa by Moody’s Investors Service, Inc.;


 


(f)          money
market or mutual funds whose investments are limited to those types of investments described in clauses (b)-(e) above; and


 


(g)          other
investments consistent with (or more conservative than) the Parent Company’s written investment policy, a copy of which is
attached hereto as Schedule 1.1(P).


 


Permitted Liens shall mean:


 


(a)          Liens
for taxes, assessments, or similar charges, incurred in the ordinary course of business and which are not yet due and payable,
or are being contested in good faith, with adequate reserves set aside, by appropriate proceedings diligently conducted;


 




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(b)          Pledges
or deposits made in the ordinary course of business to secure payment of workmen's compensation, or to participate in any fund
in connection with workmen's compensation, unemployment insurance, old-age pensions or other social security programs;


 


(c)          Liens
of mechanics, materialmen, warehousemen, carriers, or other like Liens, securing obligations incurred in the ordinary course of
business that are not yet due and payable and Liens of landlords securing obligations to pay lease payments that are not yet due
and payable or in default;


 


(d)          Good-faith
pledges or deposits made in the ordinary course of business to secure performance of bids, tenders, contracts (other than for the
repayment of borrowed money) or leases, not in excess of the aggregate amount due thereunder, or to secure statutory obligations,
or surety, appeal, indemnity, performance or other similar bonds required in the ordinary course of business;


 


(e)          Encumbrances
consisting of zoning restrictions, easements or other restrictions on the use of real property, none of which materially impairs
the use of such property or the value thereof, and none of which is violated in any material respect by existing or proposed structures
or land use;


 


(f)          Liens
in favor of the Lender and its Affiliates securing the Obligations;


 


(g)          Liens
on property leased by any Loan Party or Subsidiary of a Loan Party under operating leases securing obligations of such Loan Party
or Subsidiary to the lessor under such leases;


 


(h)          Any
Lien existing on the date of this Agreement and described on Schedule 1.1(P), together with any renewals thereof; provided
that the principal amount secured thereby is not hereafter increased, and no additional assets become subject to such Lien;


 


(i)          Purchase
Money Security Interests and Capital Leases securing Indebtedness permitted under Section 8.2.1(ii)(a), so long as such Liens extend
only to the assets purchased (and proceeds thereof);


 


(j)          The
following, (A) if the validity or amount thereof is being contested in good faith by appropriate and lawful proceedings diligently
conducted so long as levy and execution thereon have been stayed and continue to be stayed or (B) if a final judgment is entered
and such judgment is discharged within forty-five (45) days of entry, and in either case they do not affect the Collateral or,
in the aggregate, materially impair the ability of any Loan Party to perform its Obligations hereunder or under the other Loan
Documents:


 


(1)         Claims
or Liens for taxes, assessments or charges due and payable and subject to interest or penalty; provided that the applicable
Loan Party maintains such reserves or other appropriate provisions as shall be required by GAAP and pays all such taxes, assessments
or charges forthwith upon the commencement of proceedings to foreclose any such Lien;


 




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(2)         Claims,
Liens or encumbrances upon, and defects of title to, real or personal property other than the Collateral, including any attachment
of personal or real property or other legal process prior to adjudication of a dispute on the merits;


 


(3)         Claims
or Liens of mechanics, materialmen, warehousemen, carriers, or other statutory nonconsensual Liens; or


 


(4)         Liens
resulting from final judgments or orders described in Section 9.1.7 [Final Judgments or Orders].


 


(k)          Liens
securing Indebtedness permitted under Sections 8.2.1(ii) and 8.2.1(iii);


 


(l)          statutory
or common law rights of setoff upon deposits of cash in favor of depository institutions;


 


(m)          any
title transfer, retention of title, hire purchase or conditional sale arrangements having similar effect arising in the ordinary
course of business in favor of the suppliers of goods or services to any Loan Party or Subsidiary thereof;


 


(n)          Liens
in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the
importation of goods in the ordinary course of business;


 


(o)          Liens
of a collection bank arising under Section 4-210 of the Uniform Commercial Code on the items in the course of collection;


 


(p)          Liens
(i) on cash advances or cash earnest money deposits in favor of the seller of any property to be acquired in a joint venture permitted
under Section 8.2.4(vi) or a Permitted Acquisition under Section 8.2.6(ii) to be applied against the purchase price for such joint
venture or Permitted Acquisition, or (ii) consisting of any agreement to dispose of any property in a disposition permitted
under Section 8.2.7 [Disposition of Assets or Subsidiaries]; and


 


(q)          Liens
that are contractual rights of setoff relating to purchase orders and other agreements entered into with third party customers
in the ordinary course of business;


 


provided that the only “Permitted Liens”
on the pledged Subsidiary Equity Interests and related Collateral are the Liens of the Lender pursuant to the Pledge Agreement
and inchoate Liens for taxes not yet due and payable.


 


Person shall mean any individual, corporation,
partnership, limited liability company, association, joint-stock company, trust, unincorporated organization, joint venture, government
or political subdivision or agency thereof, or any other entity.


 


Pledge Agreement shall mean the Pledge
Agreement of even date herewith in substantially the form of Exhibit 1.1(P) granting Lender a lien on and security interest
in 65% of


 




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all issued and outstanding equity interests
in each 1st tier foreign Subsidiary (other than an Immaterial Foreign Subsidiary), as the same may be amended, restated
or otherwise modified.


 


Potential Default shall mean any event
or condition which with notice or passage of time, or both, would constitute an Event of Default.


 


Prime Rate shall mean the interest
rate per annum announced from time to time by the Lender at its Principal Office as its then prime rate, which rate may not be
the lowest or most favorable rate then being charged commercial borrowers or others by the Lender. Any change in the Prime Rate
shall take effect at the opening of business on the day such change is announced.


 


Principal Office shall mean the main
banking office of the Lender in Pittsburgh, Pennsylvania.


 


Prior Security Interest shall mean
a valid and enforceable perfected first-priority security interest under the Uniform Commercial Code in the Collateral which is
subject only to Liens of the Lender pursuant to the Loan Documents, and inchoate Liens for taxes not yet due and payable.


 


Pro Forma Operating Leverage Ratio
shall mean (a) total Funded Debt of the Borrower and its Subsidiaries after giving effect to any Indebtedness incurred or assumed
in a Permitted Acquisition, divided by (b) trailing twelve month EBITDA of the Borrower and its Subsidiaries plus
the trailing twelve month EBITDA of the acquired Person, business or division that is the subject of such Permitted Acquisition.


 


Published Rate shall mean the rate
of interest published each Business Day in The Wall Street Journal “Money Rates” listing under the caption
“London Interbank Offered Rates” for a one month period (or, if no such rate is published therein for any reason, then
the Published Rate shall be the rate at which U.S. dollar deposits are offered by leading banks in the London interbank deposit
market for a one month period as published in another publication selected by the Lender).


 


Purchase Money Security Interest shall
mean Liens upon tangible personal property securing loans to any Loan Party or Subsidiary of a Loan Party or deferred payments
by such Loan Party or Subsidiary for the purchase of such tangible personal property.


 


Reimbursement Obligation shall have
the meaning specified in Section 2.7.3 [Disbursements, Reimbursement].


 


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


 


Relief Proceeding shall mean any proceeding
seeking a decree or order for relief in respect of any Loan Party or Subsidiary of a Loan Party in a voluntary or involuntary case
under any applicable bankruptcy, insolvency, reorganization or other similar law now or


 




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hereafter in effect, or for the appointment
of a receiver, liquidator, assignee, custodian, trustee, sequestrator, conservator (or similar official) of any Loan Party or
Subsidiary of a Loan Party for any substantial part of its property, or for the winding-up or liquidation of its affairs, or an
assignment for the benefit of its creditors.


 


Revolving Credit Commitment shall mean,
as to the Lender at any time, the amount initially set forth opposite its name on Schedule 1.1(A) in the column labeled
“Commitment,” as such Commitment is thereafter assigned or modified in accordance with the terms of this Agreement.


 


Revolving Credit Loans shall mean collectively
and Revolving Credit Loan shall mean separately all Revolving Credit Loans or any Revolving Credit Loan made by the Lender
to the Borrowers pursuant to Section 2.1 [Revolving Credit Commitment] or 2.7.3 [Disbursements, Reimbursement].


 


Revolving Facility Usage shall mean
at any time the sum of the outstanding Revolving Credit Loans and the Letter of Credit Obligations.


 


Solvent shall mean, with respect to
any Person on any date of determination, taking into account such right of reimbursement, contribution or similar right available
to such Person from other Persons, that on such date (a) the fair value of the property of such Person is greater than the
total amount of liabilities, including, without limitation, contingent liabilities, of such Person, (b) the present fair saleable
value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person
on its debts as they become absolute and matured, (c) such Person is able to realize upon its assets and pay its debts and
other liabilities, contingent obligations and other commitments as they mature in the normal course of business, (d) such
Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person's ability to pay as
such debts and liabilities mature, and (e) such Person is not engaged in business or a transaction, and is not about to engage
in business or a transaction, for which such Person's property would constitute unreasonably small capital after giving due consideration
to the prevailing practice in the industry in which such Person is engaged. In computing the amount of contingent liabilities at
any time, it is intended that such liabilities will be computed at the amount which, in 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.


 


Standard & Poor's shall mean Standard
& Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc.


 


Statements shall have the meaning specified
in Section 6.1.6(i) [Historical Statements].


 


Subordinated Debt shall mean Funded
Debt that has been subordinated to the Obligations pursuant to subordination terms and conditions satisfactory to the Lender in
its discretion.


 




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Subsidiary of a Person shall mean a
corporation, partnership, joint venture, limited liability company or other business entity of which a majority of the shares of
securities or other interests having ordinary voting power for the election of directors or other governing body (other than securities
or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned, or the management
of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise
specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or
Subsidiaries of the Parent Company.


 


Subsidiary Equity Interests shall have
the meaning specified in Section 6.1.2 [Subsidiaries and Owners; Investment Companies].


 


Swap Termination Value shall mean,
in respect of any one or more Interest Rate Hedges, after taking into account the effect of any legally enforceable netting agreement
relating to such Interest Rate Hedges, (a) for any date on or after the date such Interest Rate Hedges have been closed out and
termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced
in clause (a), the amounts(s) determined as the mark-to-market values(s) for such Interest Rate Hedges, as determined based upon
one or more mid-market or other readily available quotations provided by any recognized dealer in such Interest Rate Hedges.


 


Synthetic Lease means, at any time,
with respect to any Person, any lease (including leases that may be terminated by the lessee at any time) of any property (a) that
is accounted for as an operating lease under GAAP and (b) in respect of which the lessee retains or obtains ownership of the property
so leased for U.S. federal income tax purposes, other than any such lease under which such Person is the lessor.


 


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


 


1.2          Construction. Unless
the context of this Agreement otherwise clearly requires, the following rules of construction shall apply to this Agreement and
each of the other Loan Documents: (i) references to the plural include the singular, the plural, the part and the whole, except
where the context requires otherwise, and the words “include,” “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”; (ii) the words “hereof,” “herein,”
“hereunder,” “hereto” and similar terms in this Agreement or any other Loan Document refer to this Agreement
or such other Loan Document, respectively, as a whole; (iii) article, section, subsection, clause, schedule and exhibit references
are to this Agreement or other Loan Document, as the case may be, unless otherwise specified; (iv) reference to any Person includes
such Person's successors and assigns; (v) reference to any agreement, including this Agreement and any other Loan Document together
with the schedules and exhibits hereto or thereto, document or instrument means such agreement, document or instrument as amended,
modified, replaced, substituted for, superseded or restated; (vi) relative to the determination of any period of time, “from”
means “from and including,” “to” means “to but excluding,” and “through” means
“through and including”; (vii) the words “asset” and “property” shall be 


 




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construed to have
the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights, (viii) section headings herein and in each other Loan Document are included for convenience and
shall not affect the interpretation of this Agreement or such Loan Document, and (ix) unless otherwise specified, all references
herein to times of day shall be references to Eastern Time.


 


1.3           Accounting
Principles; Changes in GAAP.  Except as otherwise provided in this Agreement,
all computations and determinations as to accounting or financial matters and all financial statements to be delivered pursuant
to this Agreement shall be made and prepared in accordance with GAAP (including principles of consolidation where appropriate),
and all accounting or financial terms shall have the meanings ascribed to such terms by GAAP; provided, however,
that all accounting terms used in Section 8.2 [Negative Covenants] (and all defined terms used in the definition of any accounting
term used in Section 8.2 shall have the meaning given to such terms (and defined terms) under GAAP as in effect on the date
hereof applied on a basis consistent with those used in preparing Statements referred to in Section 6.1.6(i) [Historical
Statements]. Notwithstanding the foregoing, if the Borrowers notify the Lender in writing that the Borrowers wish to amend any
financial covenant in Section 8.2 of this Agreement and/or any related definition to eliminate the effect of any change in GAAP
occurring after the Closing Date on the operation of such financial covenants and/or interest (or if the Lender notifies the Borrower
in writing that the Lender wishes to amend any financial covenant in Section 8.2 and/or any related definition to eliminate the
effect of any such change in GAAP), then the Lender and the Borrowers shall negotiate in good faith to amend such ratios or requirements
to preserve the original intent thereof in light of such change in GAAP; provided that, until so amended, the Loan Parties' compliance
with such covenants shall be determined on the basis of GAAP in effect immediately before the relevant change in GAAP became effective,
until either such notice is withdrawn or such covenants or definitions are amended in a manner satisfactory to the Borrowers and
the Lender, and the Loan Parties shall provide to the Lender, when they deliver their financial statements pursuant to Section
8.3.1 [Quarterly Financial Statements] and 8.3.2 [Annual Financial Statements] of this Agreement, such reconciliation statements
as shall be reasonably requested by the Lender.


 


2.          REVOLVING
CREDIT FACILITY


 


2.1           Revolving
Credit Commitment.  Subject to the terms and conditions hereof and relying upon
the representations and warranties herein set forth, the Lender agrees to make Revolving Credit Loans to the Borrowers at any
time or from time to time on or after the date hereof to the Expiration Date; provided that after giving effect to each such Loan
(i) the aggregate amount of Revolving Credit Loans from the Lender shall not exceed the Lender's Revolving Credit Commitment minus
the amount of Letter of Credit Obligations, and (ii) the Revolving Facility Usage shall not exceed the Revolving Credit Commitment.
Within such limits of time and amount and subject to the other provisions of this Agreement, the Borrowers may borrow, repay and
reborrow pursuant to this Section 2.1. The Obligation of the Borrowers to repay the aggregate unpaid principal amount of the Revolving
Credit Loans made by the Lender, together with interest thereon, shall be evidenced by a revolving credit Note, dated the Closing
Date payable to the order of the Lender in a face amount equal to the maximum amount of the Revolving Credit Commitment.


 




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2.2           Nature
of Lender's Obligations with Respect to Revolving Credit Loans.  The aggregate
of the Lender's Revolving Credit Loans outstanding hereunder to the Borrowers at any time shall never exceed its Revolving Credit
Commitment minus the Letter of Credit Obligations. The Lender shall have no obligation to make Revolving Credit Loans hereunder
on or after the Expiration Date.


 


2.3           Commitment
Fees.  Accruing from the date hereof until the earlier to occur of the Expiration
Date and the date on which the Revolving Credit Commitment is terminated, the Borrowers agree to pay to the Lender a nonrefundable
commitment fee (the “Commitment Fee”) equal to 0.20% per annum (computed on the basis of a year of 360 days
and actual days elapsed) multiplied by the average daily difference between the amount of (i) the Revolving Credit Commitment
and (ii) the Revolving Facility Usage, payable quarterly in arrears on each Payment Date.


 


2.4           Revolving
Credit Loan Requests.  Except as otherwise provided herein, the Borrowers may from
time to time prior to the Expiration Date request the Lender to make Revolving Credit Loans, or renew or convert the Interest
Rate Option applicable to existing Revolving Credit Loans pursuant to Section 4.2 [Interest Periods], by delivering to the
Lender, not later than 11:00 a.m., (i) three (3) Business Days prior to the proposed Borrowing Date with respect to the making
of Revolving Credit Loans to which the LIBOR Rate Option applies or the conversion to or the renewal of the LIBOR Rate Option
for any Loans, and (ii) the same Business Day of the proposed Borrowing Date with respect to the making of a Revolving Credit
Loan to which the Base Rate Option applies or the last day of the preceding Interest Period with respect to the conversion to
the Base Rate Option for any Loan, a duly completed request therefor substantially in the form of Exhibit 2.4 signed
by an Authorized Officer or a request by telephone from an Authorized Officer immediately confirmed in writing by letter, facsimile
or telex signed by an Authorized Officer in such form (each, a “Loan Request”), it being understood that the
Lender may rely on the authority of any individual making such a telephonic request without the necessity of receipt of such written
confirmation. Each Loan Request shall specify the aggregate amount of the proposed Loans comprising each Borrowing Tranche, and,
if applicable, the Interest Period.


 


2.5           Repayment
of Revolving Credit Loans.  The Borrowers shall pay accrued interest on the unpaid
principal balance of the Note in arrears: (a) for the portion of advances bearing interest under the Base Rate Option, on the
first day of each month during the term hereof, (b) for the portion of advances bearing interest under the LIBOR Rate Option,
on the last day of the respective Interest Period for such advance, (c) if any Interest Period is longer than three (3)
months, then also on the three (3) month anniversary of the commencement of such interest period and every three (3) months thereafter,
and (d) for all advances, at maturity, whether by acceleration of the Note or otherwise, and after maturity, on demand until paid
in full. All outstanding principal and accrued interest hereunder shall be due and payable in full on the Expiration Date. If
any payment under this Agreement shall become due on a day other than a Business Day, such payment shall be made on the next succeeding
Business Day and such extension of time shall be included in computing interest in connection with such payment. Each Borrower
hereby authorizes the Lender to charge any Borrower’s deposit account at the Lender for any payment when due hereunder.


 




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2.6           Use
of Proceeds.  The proceeds of the Loans shall be used to (i) support working capital
and general corporate needs, including the issuance of Letters of Credit, (ii) fund annual special distributions permitted under
Section 8.2.5 [Dividends and Related Distributions] and/or (iii) finance ongoing capital expenditures and Permitted Acquisitions.


 


2.7           Letter
of Credit Subfacility.


 


2.7.1           Issuance
of Letters of Credit.  The Borrowers may at any time prior to the Expiration Date
request the issuance of a standby or trade letter of credit (a “Standby Letter of Credit”) or Commercial Letter
of Credit (each a “Letter of Credit”) denominated in Dollars on behalf of itself or another Loan Party or any
other Subsidiary of the Parent Company, or the amendment or extension of an existing Letter of Credit, by delivering or having
such other Loan Party deliver to the Lender a completed application and agreement for letters of credit, or request for such amendment
or extension, as applicable, signed by an Authorized Officer, in such form as the Lender may specify from time to time by no later
than 10:00 a.m. at least five (5) Business Days, or such shorter period as may be agreed to by the Lender, in advance of the proposed
date of issuance. Subject to the terms and conditions hereof, the Lender or any of the Lender's Affiliates will issue a Letter
of Credit or agree to such amendment or extension, provided that each Letter of Credit shall (A) have a maximum maturity
of twelve (12) months from the date of issuance, except in the case of an Evergreen Letter of Credit, and (B) in no event
expire later than the date which is 364 days after the Expiration Date and provided further that in no event shall (i) the
Letter of Credit Obligations exceed, at any one time, $2,000,000 (the “Letter of Credit Sublimit”) or (ii) the
Revolving Facility Usage exceed, at any one time, the Revolving Credit Commitment. Each request by the Borrowers for the issuance,
amendment or extension of a Letter of Credit shall be deemed to be a representation by the Borrowers that they shall be in compliance
with the preceding sentence and with Section 7 [Conditions of Lending and Issuance of Letters of Credit] after giving effect to
the requested issuance, amendment or extension of such Letter of Credit. Promptly after its delivery of any Letter of Credit or
any amendment to a Letter of Credit to the beneficiary thereof, the Lender will also deliver to Borrowers a true and complete
copy of such Letter of Credit or amendment. Upon the request of the Lender (i) if the Lender has honored any full or partial drawing
request under any Letter of Credit and has not been reimbursed therefor as required in this Agreement, or (ii) if, on the
Expiration Date, any Letter of Credit Obligation for any reason remains outstanding, the Borrowers shall, in each case, immediately
Cash Collateralize the then outstanding amount of all Letter of Credit Obligations. The Borrowers hereby grant to the Lender a
security interest in all cash collateral pledged pursuant to this Section or otherwise under this Agreement.


 


2.7.2           Letter
of Credit Fees.  The Borrowers shall pay to the Lender a fee (the “Letter of
Credit Fee”) equal to 1.00% for standby Letters of Credit (computed on the basis of a year of 360 days and actual days elapsed),
which fee shall be computed on the daily average of standby Letter of Credit Obligations and shall be payable quarterly in arrears
on each Payment Date following issuance of each standby Letter of Credit. The Borrowers shall also pay to the Lender for the Lender's
sole account the Lender's then in effect customary fees and administrative expenses payable with respect to the Letters of Credit
as the Lender may generally charge or incur from time to time in connection with the issuance, maintenance, amendment (if 


 




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any),
assignment or transfer (if any), negotiation, and administration of Letters of Credit to the extent invoiced by the Lender.


 


2.7.3           Disbursements,
Reimbursement.  In the event of any request for a drawing under a Letter of
Credit by the beneficiary or transferee thereof, the Lender will promptly notify the Borrowers thereof. Provided that it
shall have received such notice, the Borrowers shall reimburse (such obligation to reimburse the Lender shall sometimes be
referred to as a “Reimbursement Obligation”) the Lender on each date that an amount is paid by the Lender under
any Letter of Credit (each such date, a “Drawing Date”) by paying to the Lender an amount equal to the amount so
paid by the Lender.


 


2.7.4           Documentation.  Each
Loan Party agrees to be bound by the terms of the Lender's application and agreement for letters of credit and the Lender's written
regulations and customary practices relating to letters of credit as set forth in such application and agreement or, if none are
stated therein, in Section 10.11.1 hereof. In the event of a conflict between such application or agreement and this Agreement,
this Agreement shall govern. It is understood and agreed that, except in the case of gross negligence or willful misconduct, the
Lender shall not be liable for any errors, negligence and/or mistakes, whether of omission or commission, in following any Loan
Party's instructions or those contained in the Letters of Credit or any modifications, amendments or supplements thereto.


 


2.7.5           Determinations
to Honor Drawing Requests.  In determining whether to honor any request for drawing
under any Letter of Credit by the beneficiary thereof, the Lender shall be responsible only to determine that the documents and
certificates required to be delivered under such Letter of Credit have been delivered and that they comply on their face with
the requirements of such Letter of Credit.


 


2.7.6           Nature
of Reimbursement Obligations.  The Obligations of the Borrowers to reimburse the
Lender upon a drawing under a Letter of Credit shall be absolute, unconditional and irrevocable, and shall be performed strictly
in accordance with the terms of this Section 2.7 (including Sections 2.7.7 and 2.7.8) under all circumstances, including
the following circumstances:


 


(i)          any
set-off, counterclaim, recoupment, defense or other right which the Lender may have against the Borrowers or any other Person for
any reason whatsoever, or which any Loan Party may have against the Lender or any of its Affiliates or any other Person for any
reason whatsoever;


 


(ii)         any
lack of validity or enforceability of any Letter of Credit, the issuance of which was requested by the Borrowers;


 


(iii)        any
claim of breach of warranty that might be made by any Loan Party or the Lender against any beneficiary of a Letter of Credit, or
the existence of any claim, set-off, recoupment, counterclaim, crossclaim, defense or other right which any Loan Party or the Lender
may have at any time against a beneficiary, successor beneficiary any transferee or assignee of any Letter of Credit or the proceeds
thereof (or any Persons for whom any such transferee may 


 




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be acting), the Lender or its Affiliates or any other Person, whether
in connection with this Agreement, the transactions contemplated herein or any unrelated transaction (including any underlying
transaction between any Loan Party or Subsidiaries of a Loan Party and the beneficiary for which any Letter of Credit was procured);


 


(iv)        the
lack of power or authority of any signer of (or any defect in or forgery of any signature or endorsement on) or the form of or
lack of validity, sufficiency, accuracy, enforceability or genuineness of any draft, demand, instrument, certificate or other document
presented under or in connection with any Letter of Credit, or any fraud or alleged fraud in connection with any Letter of Credit,
or the transport of any property or provision of services relating to a Letter of Credit, in each case even if the Lender or any
of its Affiliates has been notified thereof;


 


(v)         payment
by the Lender or any of its Affiliates under any Letter of Credit against presentation of a demand, draft or certificate or other
document which does not comply with the terms of such Letter of Credit;


 


(vi)        the
solvency of, or any acts or omissions by, any beneficiary of any Letter of Credit, or any other Person having a role in any transaction
or obligation relating to a Letter of Credit, or the existence, nature, quality, quantity, condition, value or other characteristic
of any property or services relating to a Letter of Credit;


 


(vii)       any
failure by the Lender or any of its Affiliates to issue any Letter of Credit in the form requested by any Loan Party, unless the
Lender has received written notice from such Loan Party of such failure, has had sufficient time and the beneficiary thereof has
agreed to amend such Letter of Credit, and no drawing has been made thereon;


 


(viii)      any
adverse change in the business, operations, properties, assets, condition (financial or otherwise) or prospects of any Loan Party
or Subsidiaries of a Loan Party;


 


(ix)         any
breach of this Agreement or any other Loan Document by any party thereto;


 


(x)          the
occurrence or continuance of an Insolvency Proceeding with respect to any Loan Party;


 


(xi)         the
fact that an Event of Default or a Potential Default shall have occurred and be continuing;


 


(xii)        the
fact that the Expiration Date shall have passed or this Agreement or the Revolving Credit Commitment hereunder shall have been
terminated; and


 


(xiii)       any
other circumstance or happening whatsoever, whether or not similar to any of the foregoing.


 


2.7.7           Indemnity.  The
Borrowers, jointly and severally, hereby agree to protect, indemnify, pay and save harmless the Lender and any of its Affiliates
that has issued a


 




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Letter of Credit from and against any and
all claims, demands, liabilities, damages, taxes, penalties, interest, judgments, losses, costs, charges and expenses (including
reasonable fees, expenses and disbursements of counsel and allocated costs of internal counsel) which the Lender or any of its
Affiliates may incur or be subject to as a consequence, direct or indirect, of the issuance of any Letter of Credit, other than
as a result of (A) the gross negligence or willful misconduct of the Lender or Lender’s Affiliate as determined by
a final non-appealable judgment of a court of competent jurisdiction or (B) the wrongful dishonor (or wrongful honor) by
the Lender or any of the Lender's Affiliates of a proper demand (or, in the case of wrongful honor, improper demand) for payment
made under any Letter of Credit, except if such dishonor (or honor, as applicable) resulted from any act or omission, whether
rightful or wrongful, of any present or future de jure or de facto government or Official Body. Notwithstanding the foregoing,
the Borrowers shall be responsible for allocated costs of internal counsel only during a post-Event of Default out-of-court restructuring
or after the filing of any petition in bankruptcy or the commencement of any insolvency, reorganization or like proceeding relating
to a Loan Party.


 


2.7.8           Liability
for Acts and Omissions.  As between any Loan Party and the Lender, or the Lender's
Affiliates, such Loan Party assumes all risks of the acts and omissions of, or misuse of the Letters of Credit by, the respective
beneficiaries of such Letters of Credit. In furtherance and not in limitation of the foregoing, the Lender shall not be responsible
for any of the following, including any losses or damages to any Loan Party or other Person or property relating therefrom: (i) the
form, validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party in connection with the
application for an issuance of any such Letter of Credit, even if it should in fact prove to be in any or all respects invalid,
insufficient, inaccurate, fraudulent or forged (even if the Lender or its Affiliates shall have been notified thereof); (ii) the
validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any such Letter of Credit
or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for
any reason; (iii) the failure of the beneficiary of any such Letter of Credit, or any other party to which such Letter of
Credit may be transferred, to comply fully with any conditions required in order to draw upon such Letter of Credit or any other
claim of any Loan Party against any beneficiary of such Letter of Credit, or any such transferee, or any dispute between or among
any Loan Party and any beneficiary of any Letter of Credit or any such transferee; (iv) errors, omissions, interruptions
or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or not they be in
cipher; (v) errors in interpretation of technical terms; (vi) any loss or delay in the transmission or otherwise of
any document required in order to make a drawing under any such Letter of Credit or of the proceeds thereof; (vii) the misapplication
by the beneficiary of any such Letter of Credit of the proceeds of any drawing under such Letter of Credit; or (viii) any
consequences arising from causes beyond the control of the Lender or its Affiliates, as applicable, including any act or omission
of any Official Body, and none of the above shall affect or impair, or prevent the vesting of, any of the Lender's or its Affiliate's
rights or powers hereunder. Nothing in the preceding sentence shall relieve the Lender from liability for the Lender's gross negligence
or willful misconduct in connection with actions or omissions described in such clauses (i) through (viii) of such sentence. In
no event shall the Lender or its Affiliates be liable to any Loan Party for any indirect, consequential, incidental, punitive,
exemplary or special damages or expenses (including without limitation 


 




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attorneys' fees), or for any damages resulting from any
change in the value of any property relating to a Letter of Credit.


 


Without limiting the generality of the foregoing,
the Lender and each of its Affiliates (i) may rely on any oral or other communication believed in good faith by the Lender or such
Affiliate to have been authorized or given by or on behalf of the applicant for a Letter of Credit, (ii) may honor any presentation
if the documents presented appear on their face substantially to comply with the terms and conditions of the relevant Letter of
Credit; (iii) may honor a previously dishonored presentation under a Letter of Credit, whether such dishonor was pursuant to a
court order, to settle or compromise any claim of wrongful dishonor, or otherwise, and shall be entitled to reimbursement to the
same extent as if such presentation had initially been honored, together with any interest paid by the Lender or its Affiliate;
(iv) may honor any drawing that is payable upon presentation of a statement advising negotiation or payment, upon receipt of such
statement (even if such statement indicates that a draft or other document is being delivered separately), and shall not be liable
for any failure of any such draft or other document to arrive, or to conform in any way with the relevant Letter of Credit; (v)
may pay any paying or negotiating bank claiming that it rightfully honored presentation under the laws or practices of the place
where such bank is located, provided such negotiating bank was authorized by PNC (or the Borrowers, as applicable) to act
in such capacity; and (vi) may settle or adjust any claim or demand made on the Lender or its Affiliate in any way related to any
order issued at the applicant's request to an air carrier, a letter of guarantee or of indemnity issued to a carrier or any similar
document (each an “Order”) and honor any drawing in connection with any Letter of Credit that is the subject
of such Order, notwithstanding that any drafts or other documents presented in connection with such Letter of Credit fail to conform
in any way with such Letter of Credit.


 


In furtherance and extension and not in limitation
of the specific provisions set forth above, any action taken or omitted by the Lender or its Affiliates under or in connection
with the Letters of Credit issued by it or any documents and certificates delivered thereunder, if taken or omitted in good faith,
shall not put the Lender or its Affiliates under any resulting liability to any Borrower or any other Loan Party. This paragraph
is not intended to relieve the Lender from liability, subject to the terms of Section 2.7.7 and set forth above in this Section
2.7.8, for conduct for which the Lender would not be entitled to indemnification under clause (A) of Section 2.7.7.


 


3.          RESERVED


 


4.          INTEREST
RATES


 


4.1           Interest
Rate Options.  The Borrowers shall pay interest in respect of the outstanding unpaid
principal amount of the Loans as selected by it from the Base Rate Option or LIBOR Rate Option set forth below applicable to the
Loans, it being understood that, subject to the provisions of this Agreement, the Borrowers may select different Interest Rate
Options and different Interest Periods to apply simultaneously to the Loans comprising different Borrowing Tranches and may convert
to or renew one or more Interest Rate Options with respect to all or any portion of the Loans comprising any Borrowing Tranche;
provided that there shall not be at



 




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any
one time outstanding more than six (6) Borrowing Tranches in the aggregate among all of the Loans and provided further
that if an Event of Default exists and is continuing, the Borrowers may not request, convert to, or renew the LIBOR Rate Option
for any Loans and the Lender may demand that all existing Borrowing Tranches bearing interest under the LIBOR Rate Option shall
be converted immediately to the Base Rate Option, subject to the obligation of the Borrowers to pay any indemnity under Section
5.7 [Indemnity] in connection with such conversion. If at any time the designated rate applicable to any Loan made by the Lender
exceeds the Lender's highest lawful rate, the rate of interest on such Loan shall be limited to the Lender's highest lawful rate.


 


4.1.1           Revolving
Credit Interest Rate Options.  The Borrowers shall have the right to select from
the following Interest Rate Options applicable to the Revolving Credit Loans:


 


(i)          Revolving
Credit Base Rate Option: A fluctuating rate per annum (computed on the basis of a year of 365 or 366 days, as the case may
be, and actual days elapsed) equal to the Base Rate, such interest rate to change automatically from time to time effective as
of the effective date of each change in the Base Rate; or


 


(ii)         Revolving
Credit LIBOR Rate Option: A rate per annum (computed on the basis of a year of 360 days and actual days elapsed) equal to the
LIBOR Rate plus 1.15%.


 


4.1.2           Rate
Quotations.  The Borrowers may call the Lender on or before the date on which a Loan
Request is to be delivered to receive an indication of the rates then in effect, but it is acknowledged that such indication shall
not be binding on the Lender nor affect the rate of interest which thereafter is actually in effect when the election is made.


 


4.2           Interest
Periods.  At any time when the Borrowers shall select, convert to or renew a LIBOR
Rate Option, the Borrowers shall notify the Lender thereof at least three (3) Business Days prior to the effective date of such
LIBOR Rate Option by delivering a Loan Request. The notice shall specify an Interest Period during which such Interest Rate Option
shall apply. Notwithstanding the preceding sentence, in the case of the renewal of a LIBOR Rate Option at the end of an Interest
Period, the first day of the new Interest Period shall be the last day of the preceding Interest Period, without duplication in
payment of interest for such day.


 


4.3           Interest
After Default.  To the extent permitted by Law, upon the occurrence of an Event of
Default and until such time such Event of Default shall have been cured or waived, and at the discretion of the Lender:


 


4.3.1           Letter
of Credit Fees, Interest Rate.  The Letter of Credit Fees and the rate of interest
for each Loan otherwise applicable pursuant to Section 2.7.2 [Letter of Credit Fees] or Section 4.1 [Interest Rate Options],
respectively, shall be increased by 2.0% per annum;


 


4.3.2           Other
Obligations.  Each other Obligation hereunder if not paid when due shall bear interest
at a rate per annum equal to the sum of the rate of interest applicable under the Revolving Credit Base Rate Option plus
an additional 2.0% per annum from the time such Obligation becomes due and payable and until it is paid in full; and


 




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4.3.3           Acknowledgment.  The
Borrowers acknowledge that the increase in rates referred to in this Section 4.3 reflects, among other things, the fact that
such Loans or other amounts have become a substantially greater risk given their default status and that the Lender is entitled
to additional compensation for such risk; and all such interest shall be payable by Borrowers upon demand by Lender.


 


4.4          LIBOR
Rate Unascertainable; Illegality; Increased Costs; Deposits Not Available.


 


4.4.1           Unascertainable.  If
on any date on which a LIBOR Rate would otherwise be determined, the Lender shall have determined that:


 


(i)          adequate
and reasonable means do not exist for ascertaining such LIBOR Rate, or


 


(ii)         a
contingency has occurred which materially and adversely affects the London interbank eurodollar market relating to the LIBOR Rate,


 


then the Lender shall have the rights specified in Section 4.4.3
[Lender's Rights].


 


4.4.2           Illegality;
Increased Costs; Deposits Not Available.  If at any time the Lender shall have determined
that:


 


(i)          the
making, maintenance or funding of any Loan to which a LIBOR Rate Option applies has been made impracticable or unlawful by compliance
by the Lender in good faith with any Law or any interpretation or application thereof by any Official Body or with any request
or directive of any such Official Body (whether or not having the force of Law), or


 


(ii)         such
LIBOR Rate Option will not adequately and fairly reflect the cost to the Lender of the establishment or maintenance of any such
Loan, or


 


(iii)        after
making all reasonable efforts, deposits of the relevant amount in Dollars for the relevant Interest Period for a Loan to which
a LIBOR Rate Option applies are not available to the Lender with respect to such Loan, or to banks generally, in the interbank
eurodollar market,


 


then the Lender shall have the rights specified in Section 4.4.3
[Lender's Rights].


 


4.4.3           Lender's
Rights.  In the case of any event specified in Section 4.4.1 [Unascertainable]
or in Section 4.4.2 [Illegality; Increased Costs; Deposits Not Available] above, the Lender shall promptly so notify the
Borrowers and endorse a certificate to such notice as to the specific circumstances of such notice. Upon such date as shall be
specified in such notice (which shall not be earlier than the date such notice is given), the obligation of the Lender, to allow
the Borrowers to select, convert to or renew a LIBOR Rate Option shall be suspended until the Lender shall have later notified
the Borrowers, of the Lender's determination that the circumstances giving rise to such previous determination no longer exist.
If at any time the Lender makes a determination under Section 4.4.1 [Unascertainable] and the Borrowers have previously notified
the Lender of its selection of, conversion to or renewal of a LIBOR Rate


 




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Option and such Interest Rate Option has not yet gone
into effect, such notification shall be deemed to provide for selection of, conversion to or renewal of the Base Rate Option otherwise
available with respect to such Loans. If the Lender notifies the Borrowers of a determination under Section 4.4.2 [Illegality;
Increased Costs; Deposits Not Available], the Borrowers shall, subject to the Borrowers' indemnification Obligations under Section 5.7
[Indemnity], as to any Loan of the Lender to which a LIBOR Rate Option applies, on the date specified in such notice either (i)
as applicable, convert such Loan to the Base Rate Option otherwise available with respect to such Loan, or (ii) prepay such Loan
in accordance with Section 5.3 [Voluntary Prepayments]. Absent due notice from the Borrowers of conversion or prepayment,
such Loan shall automatically be converted to the Base Rate Option otherwise available with respect to such Loan upon such specified
date.


  


4.5           Selection
of Interest Rate Options.  If the Borrowers fail to select a new Interest Period
to apply to any Borrowing Tranche of Loans under the LIBOR Rate Option at the expiration of an existing Interest Period applicable
to such Borrowing Tranche in accordance with the provisions of Section 4.2 [Interest Periods], the Borrowers shall be deemed
to have converted such Borrowing Tranche to the Base Rate Option, commencing upon the last day of the existing Interest Period.


 


5.          PAYMENTS


 


5.1           Payments.  All
payments and prepayments to be made in respect of principal, interest, Commitment Fees, Letter of Credit Fees or other fees or
amounts due from the Borrowers hereunder shall be payable prior to 4:00 p.m. on the date when due without presentment, demand,
protest or notice of any kind, all of which are hereby expressly waived by the Borrowers, and without set-off, counterclaim or
other deduction of any nature, and an action therefor shall immediately accrue. Such payments shall be made to the Lender at the
Principal Office for the account of the Lender in Dollars and in immediately available funds. The Lender's statement of account,
ledger or other relevant record shall, in the absence of manifest error, be conclusive as the statement of the amount of principal
of and interest on the Loans and other amounts owing under this Agreement and shall be deemed an “account stated.”


 


5.2           Interest
Payment Dates.  Interest on Loans to which the Base Rate Option applies shall be
due and payable in arrears on the first day of each calendar month. Interest on Loans to which the LIBOR Rate Option applies shall
be due and payable on the last day of each Interest Period for those Loans. Interest on the principal amount of each Loan or other
monetary Obligation shall be due and payable on demand after such principal amount or other monetary Obligation becomes due and
payable (whether on the stated Expiration Date, upon acceleration or otherwise).


 


5.3           Voluntary
Prepayments or Revolving Credit Commitment Reductions.  The Borrowers shall have
the right at their option from time to time to prepay the Loans or reduce the unborrowed Revolving Credit Commitment in whole
or part without premium or penalty (except as provided in Section 5.5 [Increased Costs; Yield Protection] and Section 5.7
[Indemnity]).


 


5.4           Reserved.


 




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5.5           Increased
Costs; Yield Protection.  Within ten (10) Business Days of written demand therefor,
together with written evidence of the justification therefor, the Borrowers jointly and severally agree to pay the Lender all
direct costs incurred, any losses suffered or payments made by the Lender as a result of any Change in Law (hereinafter defined),
imposing any reserve (without duplication of the LIBOR Reserve), deposit, allocation of capital or similar requirement (including
without limitation, Regulation D of the Board of Governors of the Federal Reserve System) on the Lender, its holding company or
any of their respective assets specifically relative to the Revolving Credit Commitment or Revolving Credit Loans. “Change
in Law” means the occurrence, after the date of this Agreement, 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, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines
or directives thereunder or issued in connection therewith (to the extent enacted, adopted or issued after the Closing Date) and
(y) all requests, rules, guidelines or directives promulgated by the Lender 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 Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted,
adopted or issued. Notwithstanding the foregoing, Borrowers shall not be required to compensate the Lender pursuant to the foregoing
provisions of this Section for any increased costs incurred or reductions suffered more than one (1) year prior to the date that
Lender notifies the Borrowers of the change giving rise to such increased costs or reductions and of Lender’s intention
to claim compensation therefor (except that, if the change giving rise to such increased costs or reductions is retroactive, then
the one (1) year period referred to above shall be extended to include the period of retroactive effect thereof).


 


5.6           No
Offsets.  Any and all payments by or on account of any obligation of any Loan Party
under any Loan Document shall be without deduction or withholding for any taxes, offsets or other deductions.


 


5.7           Indemnity.  Each
Borrower jointly and severally agrees to indemnify the Lender against any liabilities, losses or expenses (including, without
limitation, loss of margin, any loss or expense sustained or incurred in liquidating or employing deposits from third parties,
and any loss or expense incurred in connection with funds acquired to effect, fund or maintain any advance (or any part thereof)
bearing interest under the LIBOR Rate Option which the Lender sustains or incurs as a consequence of either (i) the Borrowers’
failure to make a payment on the due date thereof, (ii) the Borrowers’ revocation (expressly, by later inconsistent notices
or otherwise) in whole or in part of any notice given to Lender to request, convert, renew or prepay any advance bearing interest
under the LIBOR Rate Option, or (iii) the Borrowers’ payment or prepayment (whether voluntary, after acceleration of the
maturity of this Agreement or otherwise) or conversion of any advance bearing interest under the LIBOR Rate Option on a day other
than the last day of the applicable Interest Period. A notice as to any amounts payable pursuant to this paragraph (including
calculations with a reasonable level of detail, when available) given to the Borrowers by the Lender shall, in the absence of
manifest error, be 


 




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conclusive and shall be payable within ten (10) Business Days of written demand therefor. The Borrowers’
indemnification obligations hereunder shall survive the payment in full of the Loans and all other amounts payable hereunder.


 


5.8           Interbank
Market Presumption.  Subject to the definition of LIBOR Rate, for all purposes of
this Agreement and each Note with respect to any aspects of the LIBOR Rate and any Loan under the LIBOR Rate Option, the Lender
shall be presumed to have obtained rates, funding, currencies, deposits, and the like in the Relevant Interbank Market regardless
of whether it did so or not; and, the Lender's determination of amounts payable under, and actions required or authorized by,
Section 5.5 [Increased Costs; Yield Protection] and Section 5.7 [Indemnity] shall be calculated, at the Lender's option,
as though the Lender funded each Borrowing Tranche of Loans under the LIBOR Rate Option through the purchase of deposits of the
types and maturities corresponding to the deposits used as a reference in accordance with the terms hereof in determining the
LIBOR Rate applicable to such Loans, whether in fact that is the case.


 


6.          REPRESENTATIONS
AND WARRANTIES


 


The Loan Parties, jointly and severally,
represent and warrant to the Lender as follows:


 


6.1.1           Organization
and Qualification; Power and Authority; Compliance With Laws; Title to Properties; Event of Default.  Each
Loan Party and each Subsidiary of each Loan Party (i) is a corporation, partnership or limited liability company duly organized,
validly existing and in good standing under the laws of its jurisdiction of organization, (ii) has the lawful power to own or
lease its properties and to engage in the business it presently conducts or proposes to conduct, (iii) is duly licensed or
qualified and in good standing in each jurisdiction where the property owned or leased by it or the nature of the business transacted
by it or both makes such licensing or qualification necessary, except where the failure to do so would not result in a Material
Adverse Change, (iv) has full power to enter into, execute, deliver and carry out this Agreement and the other Loan Documents
to which it is a party, to incur the Indebtedness to be incurred by it under the Loan Documents and to perform its Obligations
under the Loan Documents to which it is a party, and all such actions have been duly authorized by all necessary proceedings on
its part, (v) is in compliance in all material respects with all applicable Laws (other than Environmental Laws which are specifically
addressed in Section 6.1.14 [Environmental Matters]) in all jurisdictions in which any Loan Party or Subsidiary of any Loan
Party is presently or will be doing business, except where the failure to do so would not constitute a Material Adverse Change,
and (vi) has good and marketable title to or valid leasehold interest in all properties, assets and other rights which it purports
to own or lease or which are reflected as owned or leased on its books and records, free and clear of all Liens and encumbrances
except Permitted Liens. No Event of Default or Potential Default exists or is continuing.


 


6.1.2           Subsidiaries
and Owners; Investment Companies.  Schedule 6.1.2 states as of the Closing Date (i)
the name of each of the Parent Company’s Subsidiaries, its jurisdiction of organization and the amount, percentage and type
of equity interests in such Subsidiary (the “Subsidiary Equity Interests”), (ii) the name of each holder
of an equity interest in the Parent


 




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Company (in the case of the Parent Company,
such disclosure is limited to each holder having, to the knowledge of Parent Company, an equity interest of 5% or more) and its
Subsidiaries, the amount, percentage and type of such equity interest (the “Parent Company Equity Interests”),
and (iii) any options, warrants or other rights outstanding to purchase any such equity interests referred to in clause
(i) or (iii), other than employee stock options (collectively with the Subsidiary Equity Interests and Parent Company Equity Interests,
the “Equity Interests”). The Parent Company and each of its Subsidiaries has good and marketable title to all
of the Subsidiary Equity Interests it purports to own, free and clear in each case of any Lien, other than Permitted Liens, and
all such Subsidiary Equity Interests have been validly issued, fully paid and are nonassessable. None of the Loan Parties or Subsidiaries
of any Loan Party is an “investment company” registered or required to be registered under the Investment Company
Act of 1940 or under the “control” of an “investment company” as such terms are defined in the Investment
Company Act of 1940 and shall not become such an “investment company” or under such “control.”


 


6.1.3           Validity
and Binding Effect.  This Agreement and each of the other Loan Documents (i) has
been duly and validly executed and delivered by each Loan Party named as a party thereto, and (ii) constitutes, or will constitute,
legal, valid and binding obligations of each Loan Party which is or will be a party thereto, enforceable against such Loan Party
in accordance with its terms, except to the extent such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent transfer, preference and other similar laws affecting creditors’ rights generally, and by general
principles of equity (regardless of whether enforcement is sought in equity or at law).


 


6.1.4           No
Conflict; Material Agreements; Consents.  Neither the execution and delivery of this
Agreement or the other Loan Documents by any Loan Party nor the consummation of the transactions herein or therein contemplated
or compliance with the terms and provisions hereof or thereof by any of them will conflict with, constitute a default under or
result in any breach of (i) the terms and conditions of the certificate of incorporation, bylaws, certificate of limited
partnership, partnership agreement, certificate of formation, limited liability company agreement or other organizational documents
of any Loan Party or (ii) any Law or any material agreement or instrument or order, writ, judgment, injunction or decree
to which any Loan Party or any of its Subsidiaries is a party or by which it or any of its Subsidiaries is bound or to which it
is subject, or result in the creation or enforcement of any Lien, charge or encumbrance whatsoever upon any property (now or hereafter
acquired) of any Loan Party or any of its Subsidiaries (other than Liens granted under the Loan Documents). There is no default
under such material agreement (referred to above) and none of the Loan Parties or their Subsidiaries is bound by any contractual
obligation, or subject to any restriction in any organization document, or any requirement of Law, in each case, which would result
in a Material Adverse Change. No consent, approval, exemption, order or authorization of, or a registration or filing with, any
Official Body or any other Person is required by any Law or any agreement in connection with the execution, delivery and carrying
out of this Agreement and the other Loan Documents, except for such consents and approvals that have been duly obtained.


 


6.1.5           Litigation.  There
are no actions, suits, proceedings or investigations pending or, to the knowledge of any Loan Party, threatened against such Loan
Party or any


 




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Subsidiary
of such Loan Party at law or in equity before any Official Body which, individually or in the aggregate is reasonably likely to
result in any Material Adverse Change. None of the Loan Parties or any Subsidiaries of any Loan Party is in violation of any order,
writ, injunction or any decree of any Official Body which would result in any Material Adverse Change.


 


6.1.6           Financial
Statements.


 


(i)          Historical
Statements. The Parent Company and its Subsidiaries (including Borrowers) have delivered to the Lender copies (by filing thereof
on EDGAR) of their audited consolidated year-end financial statements for and as of the end of the fiscal year ended February 26,
2012. In addition, the Parent Company and its Subsidiaries (including Borrowers) have delivered to the Lender copies of their (A)
unaudited consolidated interim financial statements for the fiscal year to date and as of the end of the fiscal quarter ended August
26, 2012 and (B) unaudited consolidated interim financial statements for the fiscal year to date as of the fiscal quarter ended
November 25, 2012 (all such annual and interim statements being collectively referred to as the “Statements”).
The Statements were compiled from the books and records maintained by the Parent Company and its Subsidiaries’ management,
are correct and complete and fairly represent the consolidated and consolidating financial condition of the Parent Company and
its Subsidiaries (including Borrowers) as of the respective dates thereof and the results of operations for the fiscal periods
then ended and have been prepared in accordance with GAAP consistently applied, subject (in the case of the interim statements)
to normal year-end audit adjustments.


 


(ii)         Accuracy
of Financial Statements. Neither any Borrower nor any Subsidiary of the Borrowers has any liabilities, contingent or otherwise,
or forward or long-term commitments that are not disclosed in the Statements or in the notes thereto, and except as disclosed therein
there are no unrealized or anticipated losses from any commitments of any Borrower or any Subsidiary of the Borrowers which may
cause a Material Adverse Change. Since February 26, 2012, and with respect to future Loans, since the date of the most recently
delivered audited financial statements delivered pursuant to this Agreement, no Material Adverse Change has occurred.


 


6.1.7           Margin
Stock.  None of the Loan Parties or any Subsidiaries of any Loan Party engages or
intends to engage principally, or as one of its important activities, in the business of extending credit for the purpose, immediately,
incidentally or ultimately, of purchasing or carrying margin stock (within the meaning of Regulation U, T or X as promulgated
by the Board of Governors of the Federal Reserve System). No part of the proceeds of any Loan has been or will be used, immediately,
incidentally or ultimately, to purchase or carry any margin stock or to extend credit to others for the purpose of purchasing
or carrying any margin stock or which is inconsistent with the provisions of the regulations of the Board of Governors of the
Federal Reserve System. None of the Loan Parties or any Subsidiary of any Loan Party holds or intends to hold margin stock in
such amounts that more than 25% of the reasonable value of the assets of any Loan Party or Subsidiary of any Loan Party are or
will be represented by margin stock.


 




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6.1.8           Full
Disclosure.  Neither this Agreement nor any other Loan Document, nor any certificate,
statement, agreement or other document furnished to the Lender in connection herewith or therewith (as modified or supplemented,
but excluding financial projection information and information of a general economic or industry specific nature), when furnished
or taken as a whole, contains any material misstatement of fact or omits to state a fact necessary in order to make the statements
contained herein and therein, in light of the circumstances under which they were made, not materially misleading. With respect
to projected financial information, the Borrowers represent and warrant only that such information reflects their good faith estimates
as of the date of preparation thereof, based upon methods and data the Borrowers believe to be reasonable and accurate, notwithstanding
that actual results may differ materially from such projected financial information.


 


6.1.9           Taxes.  All
federal tax returns, and all material state, local and other tax returns required to have been filed with respect to each Loan
Party and each Subsidiary of each Loan Party have been filed, and payment or adequate provision has been made for the payment
of all taxes, fees, assessments and other governmental charges which have or may become due pursuant to said returns or to assessments
received, except to the extent that such taxes, fees, assessments and other charges are being contested in good faith by appropriate
proceedings diligently conducted and for which such reserves or other appropriate provisions, if any, as shall be required by
GAAP shall have been made.


 


6.1.10         Patents,
Trademarks, Copyrights, Licenses, Etc.  Each Loan Party and each Subsidiary of each
Loan Party owns or possesses all the material patents, trademarks, service marks, trade names, copyrights, licenses, registrations,
franchises, permits and rights necessary to own and operate its properties and to carry on its business as presently conducted
and planned to be conducted by such Loan Party or Subsidiary, without known possible, alleged or actual conflict with the rights
of others (except for any such conflict which is not reasonably likely to result in a Material Adverse Change).


 


6.1.11         Liens
in the Collateral.  The Liens in the Collateral granted to the Lender pursuant to
the Loan Documents, other than Liens in the Subsidiary Equity Interests in Foreign Subsidiaries as to which the Lender has not
required that it obtain Prior Security Interests under any foreign jurisdictions that may be applicable, constitute and will continue
to constitute Prior Security Interests and are subject only to Permitted Liens. All filing fees and other expenses in connection
with the perfection of such Liens have been or will be paid by the Borrowers.


 


6.1.12         Insurance.  The
properties of each Loan Party and each of its Subsidiaries are insured pursuant to policies and other bonds which are valid and
in full force and effect and which provide adequate coverage from reputable and financially sound insurers in amounts sufficient
to insure the assets and risks of each such Loan Party and Subsidiary in accordance with prudent business practice in the industry
of such Loan Parties and Subsidiaries.


 


6.1.13         ERISA
Compliance.


 


(i)          Each
Pension Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other federal or state
Laws, except where such



 




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failure to comply would not result in a Material
Adverse Change. Each Pension Plan that is intended to qualify under Section 401(a) of the Code has received a favorable determination
letter or prototype opinion letter from the IRS or an application for such a letter is currently being processed by the IRS with
respect thereto and, to the best knowledge of Borrowers, nothing has occurred which would prevent, or cause the loss of, such
qualification. Each Borrower and each ERISA Affiliate have made all required contributions to each Pension Plan, and no application
for a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has been made with respect
to any Pension Plan.


 


(ii)         No
ERISA Event has occurred or is reasonably expected to occur with respect to a Pension Plan or Multiemployer Plan which has resulted
or could reasonably be expected to result in liability of any Loan Party or any Subsidiary of a Loan Party under Title IV of ERISA
to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of $2,250,000; (a) each Pension Plan is in
compliance in all material respects with the minimum funding requirements of Section 412 and 430 of the Code; (b) neither any Borrower
nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of ERISA with respect to
any Pension Plan (other than premiums due and not delinquent under Section 4007 of ERISA or contributions due and not delinquent);
(c) neither any Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and no event has
occurred which, with the giving of notice under Section 4219 of ERISA, would result in such liability) under Sections 4201
or 4243 of ERISA with respect to a Multiemployer Plan; and (d) neither any Borrower nor any ERISA Affiliate has engaged in a transaction
that could be subject to Sections 4069 or 4212(c) of ERISA.


 


(iii)        As
of the Closing Date, no Loan Party or ERISA Affiliate sponsors, maintains, participates in or has any liability under any Pension
Plan, except as set forth on Schedule 6.1.13 attached hereto.


 


6.1.14         Environmental
Matters.  Each Loan Party is and has been and, to the knowledge of each respective
Loan Party, each of its Subsidiaries is and has been, (a) as of the Closing Date, in compliance with applicable Environmental
Laws except as disclosed in the SEC filings of the Parent Company, provided that such matters so disclosed would not in the aggregate
result in a Material Adverse Change and except for any noncompliance that would not result in a Material Adverse Change, and (b)
as of any other date on which the representations set forth in this Section 6.1.14 are or are deemed made, in compliance with
applicable Environmental Laws, except for any non-compliance which would not result in a Material Adverse Change.


 


6.1.15         Solvency.  Before
and after giving effect to the initial Loans hereunder, each of the Loan Parties is Solvent.


 


7.          CONDITIONS
OF LENDING AND ISSUANCE OF LETTERS OF CREDIT


 


The obligation of the Lender to make Loans
and to issue Letters of Credit hereunder is subject to the performance by each of the Loan Parties of its Obligations to be performed



 




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hereunder at or prior
to the making of any such Loans or issuance of such Letters of Credit and to the satisfaction of the following further conditions:


 


7.1           First
Loans and Letters of Credit.


 


7.1.1           Deliveries.  On
the Closing Date, the Lender shall have received each of the following in form and substance satisfactory to the Lender:


 


(i)          A
certificate of each of the Loan Parties signed by an Authorized Officer, dated the Closing Date stating that (w) all representations
and warranties of the Loan Parties set forth in this Agreement are true and correct in all material respects (except for those
representations and warranties that are qualified by reference to materiality, which shall be true and correct in all respects),
(x) no Event of Default or Potential Default exists, and (y) no Material Adverse Change has occurred since February 26, 2012;


 


(ii)         A
certificate dated the Closing Date and signed by the Secretary or an Assistant Secretary of each of the Loan Parties, certifying
as appropriate as to: (a) all action taken by each Loan Party to duly authorize the execution, delivery and performance of this
Agreement and the other Loan Documents; (b) the names of the Authorized Officers authorized to sign the Loan Documents and their
true signatures; (c) copies of its organizational documents as in effect on the Closing Date certified by the appropriate state
official where such documents are filed in a state office; and (d) certificates from the appropriate state officials as to the
continued existence and good standing of each Loan Party in each state where organized;


 


(iii)        This
Agreement and each of the other Loan Documents duly signed by an Authorized Officer and each other party thereto;


 


(iv)        All
appropriate stock powers and certificates evidencing the pledged Subsidiary Equity Interests;


 


(v)         A
written opinion of U.S. counsel for the Loan Parties, dated the Closing Date;


 


(vi)        Evidence
that adequate insurance required to be maintained under this Agreement is in full force and effect, in form and substance reasonably
satisfactory to the Lender;


 


(vii)       A
duly completed Compliance Certificate as of the last day of the fiscal quarter of Borrowers most recently ended prior to the Closing
Date, signed by an Authorized Officer of Borrowers;


 


(viii)      Any
material consents required to effectuate the transactions contemplated hereby;


 


(ix)         A
Lien search in acceptable scope and with acceptable results;


 




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(x)          Such
environmental information and reports as the Lender may have requested;


 


(xi)         A
certificate of the Borrowers certifying as to the delivery of each of the deliveries of the Borrowers to the Lender required in
Sections 7.1.1(i) through (x) (but not certifying as to the Lender’s satisfaction therewith);


 


(xii)        A
Loan Request for any Loans being requested on the Closing Date; and


 


(xiii)       Such
other documents in connection with such transactions as the Lender or said counsel may have reasonably requested.


 


7.1.2           Payment
of Fees.  The Borrowers shall have paid all fees payable on or before the Closing
Date as required by this Agreement or any other Loan Document, including without limitation a closing fee which Borrower shall
pay to the Lender by the Closing Date in the amount of $50,000 (which fee shall be fully earned and non-refundable when paid).


 


7.2           Each
Loan or Letter of Credit.  At the time of making any Loans or issuing, extending
or increasing any Letters of Credit and after giving effect to the proposed extensions of credit: (i) the representations and
warranties of the Loan Parties in the Loan Documents shall then be true and correct in all material respects (except for those
representations and warranties that are qualified by reference to materiality, which shall be true and correct in all respects),
(ii) no Event of Default or Potential Default shall have occurred and be continuing, and (iii) the Borrowers shall have delivered
to the Lender a duly executed and completed Loan Request or an application for a Letter of Credit, as the case may be.


 


8.          COVENANTS


 


The Loan Parties, jointly and severally,
covenant and agree that until Payment In Full, the Loan Parties shall comply at all times with the following covenants:


 


8.1           Affirmative
Covenants.


 


8.1.1           Preservation
of Existence, Etc.  Each Loan Party shall, and shall cause each of its Subsidiaries
(other than Immaterial Subsidiaries) to, maintain its legal existence as a corporation, limited partnership or limited liability
company and its license or qualification and good standing in each jurisdiction in which its ownership or lease of property or
the nature of its business makes such license or qualification necessary, except as otherwise expressly permitted in Section 8.2.6
[Liquidations, Mergers, Etc.].


 


8.1.2           Payment
of Liabilities, Including Taxes, Etc.  Each Loan Party shall, and shall cause each
of its Subsidiaries to, duly pay and discharge all liabilities to which it is subject or which are asserted against it, promptly
as and when the same shall become due and payable, including all taxes, assessments and governmental charges upon it or
any of its properties, assets, income or profits in an amount in excess of $2,250,000, prior to the date on which penalties attach
thereto, except to the extent that such liabilities, including taxes, assessments or charges, are being contested in good faith
and by appropriate and lawful proceedings diligently conducted 


 




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and for which such reserve or other appropriate provisions, if
any, as shall be required by GAAP shall have been made.


 


8.1.3           Maintenance
of Insurance.  Each Loan Party shall, and shall cause each of its Subsidiaries to,
insure its properties and assets against loss or damage by fire and such other insurable hazards as such assets are commonly insured
and in such amounts as are substantially consistent with past practice and with reputable and financially sound insurers.


 


8.1.4           Maintenance
of Properties and Leases.  Each Loan Party shall, and shall cause each of its Subsidiaries
to, maintain in good repair, working order and condition (ordinary wear and tear excepted) all of those properties necessary to
its business, and from time to time, such Loan Party will make or cause to be made all commercially reasonable repairs, renewals
or replacements thereof.


 


8.1.5           Visitation
Rights.  Each Loan Party shall, and shall cause each of its Subsidiaries to, permit
any of the officers or authorized employees or representatives of the Lender to visit and inspect any of its properties and to
examine and make excerpts from its books and records and discuss its business affairs, finances and accounts with its officers,
all in such detail and at such times and as often as the Lender may reasonably request, provided that the Lender shall
provide the Borrowers with reasonable notice prior to any visit or inspection.


 


8.1.6           Keeping
of Records and Books of Account.  Each Borrower shall, and shall cause each Subsidiary
of the Borrowers to, maintain and keep proper books of record and account which enable the Borrowers and their Subsidiaries to
issue financial statements in accordance with GAAP and as otherwise required by applicable Laws of any Official Body having jurisdiction
over any Borrower or any Subsidiary of the Borrowers, and in which full, true and correct entries shall be made in all material
respects of all its dealings and business and financial affairs.


 


8.1.7           Compliance
with Laws; Use of Proceeds.  Each Loan Party shall, and shall cause each of its Subsidiaries
to, comply with all applicable Laws, including all Environmental Laws, in all material respects. The Loan Parties will use the
Letters of Credit and the proceeds of the Loans only in accordance with Section 2.6 [Use of Proceeds] and as permitted by applicable
Law.


 


8.1.8           Further
Assurances.  Each Loan Party shall, from time to time, at its expense, faithfully
preserve and protect the Lender's Lien on and Prior Security Interest in the Collateral whether now owned or hereafter acquired
as a continuing first priority perfected Lien, subject only to Permitted Liens, and shall do such other acts and things as the
Lender in its sole discretion may deem necessary or advisable from time to time in order to preserve, perfect and protect the
Liens granted under the Loan Documents and to exercise and enforce its rights and remedies thereunder with respect to the Collateral.


 


8.1.9           Depository
Accounts and Cash Management.  Within 60 days after the Closing Date, the Borrowers
shall have transferred their primary depository accounts and treasury management services to the Lender.


 




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8.2           Negative
Covenants.


 


8.2.1           Indebtedness.  Each
of the Loan Parties shall not, and shall not permit any of its Subsidiaries to, at any time create, incur, assume or suffer to
exist any Indebtedness, except:


 


(i)          Indebtedness
under the Loan Documents;


 


(ii)         Indebtedness
incurred with respect to Purchase Money Security Interests and Capital Leases, secured by such Purchase Money Security Interests
or Capital Leases (as applicable), Indebtedness assumed in connection with (but not incurred in contemplation of) a Permitted Acquisition
secured by Liens that extend only to the property so acquired in such Permitted Acquisition, and other secured Indebtedness in
an aggregate amount not to exceed $5,000,000 outstanding at any time;


 


(iii)        so
long as no Potential Default or Event of Default exists at the time of, or will be caused by, the incurrence thereof (including
without limitation under Section 8.2.14 or 8.2.15), the following additional Indebtedness:


 


(a)          additional
Indebtedness incurred with respect to Purchase Money Security Interests and Capital Leases;


 


(b)          additional
Indebtedness assumed in connection with (but not incurred in contemplation of) a Permitted Acquisition; and


 


(c)          other
additional Indebtedness;


 


provided, however, that the aggregate outstanding
amount of secured Indebtedness existing under Sections 8.2.1(iii)(b) and 8.2.1(iii)(c) above shall not exceed $5,000,000 at any
time.


 


(iv)        any
(i) Lender Provided Interest Rate Hedge, (ii) other Interest Rate Hedges approved by the Lender and not otherwise causing a Potential
Default or Event of Default hereunder (including without limitation under a financial covenant set forth herein), or (iii) Indebtedness
under any Other Lender Provided Financial Services Product; provided however, the Loan Parties and their Subsidiaries shall enter
into a Lender Provided Interest Rate Hedges or other Interest Rate Hedges only for hedging (rather than speculative) purposes;


 


(v)         Guaranties
permitted by Section 8.2.3 [Guaranties];


 


(vi)        Indebtedness
representing deferred compensation incurred in the ordinary course of business;


 


(vii)       Indebtedness
to current or former officers, directors, managers, consultants and employees to finance the required purchase or redemption of
stock of the Parent Company in the ordinary course of business;


 


(viii)      Indebtedness
under Other Lender Provided Financial Service Products;


 




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(ix)         Indebtedness
incurred in respect of letters of credit, bank guarantees, bankers’ acceptances, warehouse receipts or similar instruments
(including reimbursement-type obligations) issued or created in the ordinary course of business consistent with past practice in
respect of workers compensation claims, health, disability or other employee benefits, property, casualty or liability insurance,
or performance, bid, appeal or surety bonds; and


 


(x)          Indebtedness
arising from intercompany loans and advances permitted by Section 8.2.4 [Loans and Investments].


 


8.2.2           Liens.  Each
of the Loan Parties shall not, and shall not permit any of its Subsidiaries to, at any time create, incur, assume or suffer to
exist any Lien on any of its property or assets, tangible or intangible, now owned or hereafter acquired, except Permitted
Liens.


 


8.2.3           Guaranties.  Each
of the Loan Parties shall not, and shall not permit any of its Subsidiaries to, at any time, directly or indirectly, become or
be liable in respect of any Guaranty, or assume, guarantee, become surety for, endorse or otherwise agree to, become or remain
directly or contingently liable upon or with respect to any obligation or liability of any other Person, except for:


 


(i)          Indebtedness
in the form of Guaranties of Indebtedness permitted under Sections 8.2.1(i) through (iv) and (vi) through (x);


 


(ii)         Guaranties
in favor of other Loan Parties;


 


(iii)        Guaranties
in favor of the Lender; and


 


(iv)        so
long as no Potential Default or Event of Default exists at the time of, or will be caused by, the incurrence thereof (including
without limitation under Section 8.2.14 or 8.2.15), Guaranties of lease obligations of non-Loan Parties in respect of leases that
are not Capital Leases;


 


provided that the aggregate outstanding amount
of Guaranties referred to in the preceding Sections 8.2.3(i) and (iv) by the Parent Company or its domestic Subsidiaries of obligations
of foreign Subsidiaries shall not exceed $5,000,000 at any time.


 


8.2.4           Loans
and Investments.  Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, at any time make or suffer to remain outstanding any loan or advance to, or purchase, acquire or own any
stock, bonds, notes or securities of, or any partnership interest (whether general or limited) or limited liability company interest
in, or any other investment or interest in, or make any capital contribution to, any other Person, except:


 


(i)          trade
credit or investments in the nature of accounts receivable or notes receivable extended to third parties, or trade receivables
extended to Subsidiaries, in any case on usual and customary terms in the ordinary course of business;


 


(ii)         loans
or advances to employees in the ordinary course of business;


 




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(iii)        Permitted
Investments;


 


(iv)        loans,
advances and investments (other than trade receivables extended on usual and customary terms in the ordinary course of business)
by: (A) any Loan Party in or to any other Loan Party; (B) any Subsidiary of the Parent Company that is not a Loan Party in or to
any other Subsidiary of the Parent Company that is not a Loan Party; (C) any Subsidiary of the Parent Company that is not a Loan
Party in or to any Loan Party, which, if in the form of Indebtedness, is Subordinated Debt; and (D) any Loan Party in or to any
Subsidiary of the Parent Company that is not a Loan Party, provided that, in the case of this clause (D), either such loans,
advances and investments are (a) set forth on Schedule 8.2.4 attached hereto or (b) in an aggregate amount not to exceed
$3,000,000 outstanding at any time;


 


(v)         investments
made in connection with Permitted Acquisitions in accordance with Section 8.2.1 [Indebtedness], 8.2.6 [Liquidations, Mergers, Consolidations,
Acquisitions] and/or Section 8.2.9 [Subsidiaries];


 


(vi)        joint
ventures, provided that (A) if such joint venture involves the acquisition of ownership interests in, or other creation
of, a Subsidiary, then such Subsidiary shall comply with Section 8.2.9 [Subsidiaries] promptly following consummation of such joint
venture, (B) the business acquired or otherwise to be conducted by the joint venture shall comply with Section 8.2.10 [Continuation
or Change in Business], (C) no Potential Default or Event of Default shall exist immediately prior to and after giving effect to
such joint venture and (D) in the case of a joint venture outside the ordinary course of business, the Pro Forma Operating Leverage
Ratio shall meet the requirements set forth in Section 8.2.6(ii)(d) as applied to the joint venture (rather than a Permitted Acquisition
or acquired Person) as demonstrated by a certificate (in form and substance reasonably acceptable to the Lender) delivered by the
Borrowers to the Lender at least five (5) Business Days prior to consummating such joint venture;


 


(vii)       promissory
notes and other non-cash consideration received in connection with dispositions permitted under Section 8.2.7 [Dispositions of
Assets or Subsidiaries];


 


(viii)      investments
(including debt obligations and equity interests) received in connection with the bankruptcy or reorganization of third party suppliers
and customers or in settlement of delinquent obligations of, or other disputes with, third party customers and suppliers arising
in the ordinary course of business or upon the foreclosure with respect to any secured such investment or other transfer of title
with respect to any secured such investment; and


 


(ix)         Guaranties
permitted under Section 8.2.3 [Guaranties].


 


8.2.5           Dividends
and Related Distributions.  Each of the Loan Parties shall not, and shall not permit
any of its Subsidiaries to, make or pay, or agree to become or remain liable to make or pay, any dividend or other distribution
of any nature (whether in cash, property, securities or otherwise) on account of or in respect of its shares of capital stock,
partnership interests or limited liability company interests on account of the purchase, redemption, retirement or acquisition
of its shares of capital stock (or warrants, options or rights therefor), partnership 


 




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interests or limited liability company interests,
dividends or other distributions payable to another Loan Party except for dividends and distributions from Subsidiaries of the
Parent Company to the Parent Company or another Loan Party and, after prior written notice to the Lender, and only so long as
no Potential Default or Event of Default is occurring, an annual special dividend of Parent Company to its shareholders consistent
with past practice in amounts ranging from $1.00 to $2.50 per share.


 


8.2.6           Liquidations,
Mergers, Consolidations, Acquisitions.  Each of the Loan Parties shall not, and shall
not permit any of its Subsidiaries (other than Immaterial Subsidiaries) to, dissolve, liquidate or wind-up its affairs, or become
a party to any merger or consolidation, or acquire by purchase, lease or otherwise all or substantially all of the assets or capital
stock of any other Person other than dispositions of assets or Subsidiaries permitted under Section 8.2.7 [Dispositions of Assets
or Subsidiaries]; provided that:


 


(i)          (A)
any Loan Party and any Subsidiary of a Loan Party (other than the Borrowers) may consolidate or merge into another Loan Party,
and (B) any Subsidiary of the Parent Company that is not a Loan Party may consolidate or merge into a Loan Party or another Subsidiary
of the Parent Company that is not a Loan Party, and


 


(ii)         any
Loan Party or any Subsidiary thereof may acquire, whether by purchase or by merger, (A) all of the ownership interests of
another Person or (B) substantially all of assets of another Person or of a business or division of another Person (each,
a “Permitted Acquisition”), provided that each of the following requirements is met for each Permitted
Acquisition:


 


(a)          if
such Loan Party or Subsidiary is acquiring the ownership interests in such Person, such Person shall comply with the requirements
of Section 8.2.9 [Subsidiaries] promptly following such Permitted Acquisition;


 


(b)          the
business acquired, or the business conducted by the Person whose ownership interests are being acquired shall comply with Section 8.2.10
[Continuation of or Change in Business];


 


(c)          no
Potential Default or Event of Default shall exist immediately prior to and after giving effect to such Permitted Acquisition;


 


(d)          the
Pro Forma Operating Leverage Ratio shall not exceed 2.25 to 1.00 and the Borrowers shall have delivered to the Lender a certificate
(in form and substance reasonably acceptable to the Lender) demonstrating such compliance, at least five (5) Business Days prior
to consummating such Permitted Acquisition; provided, however, that if trailing twelve month EBITDA of such acquired
Person, business or division is not available for purposes of calculating the Pro Forma Operating Leverage Ratio, the Borrowers
shall instead deliver to the Lender within such time period the Parent Company’s projections of the expected combined pro-forma
EBITDA of the Borrower, its Subsidiaries and such acquired Person, business or division over the subsequent twelve month period,
demonstrating that the consummation of such Permitted Acquisition will not result in a ratio of trailing twelve month


 




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Consolidated
EBITDA to consolidated Funded Debt of the Borrowers and their Subsidiaries (including any Indebtedness incurred or assumed) that
exceeds 2.25 to 1.00; and


  


(e)          the
Loan Parties shall deliver to the Lender as soon as available prior to the consummation of a Permitted Acquisition copies of any
agreements entered into by such Loan Party or Subsidiary in connection with such Permitted Acquisition and shall deliver to the
Lender such other information about such Person or its assets as any Loan Party may reasonably require.


 


8.2.7           Dispositions
of Assets or Subsidiaries.  Each of the Loan Parties shall not, and shall not permit
any of its Subsidiaries to, sell, convey, assign, lease, abandon or otherwise transfer or dispose of, voluntarily or involuntarily,
any of its properties or assets, tangible or intangible (including sale, assignment, discount or other disposition of accounts,
contract rights, chattel paper, equipment or general intangibles with or without recourse or of capital stock, shares of beneficial
interest, partnership interests or limited liability company interests of a Subsidiary of such Loan Party), except:


 


(i)          transactions
involving the sale of inventory in the ordinary course of business;


 


(ii)         any
sale, transfer or lease of assets in the ordinary course of business which are no longer necessary or required in the conduct of
such Loan Party's or such Subsidiary's business;


 


(iii)        any
sale, transfer or lease of assets by:


 


(A)         any
Loan Party to another Loan Party;


 


(B)         any
Subsidiary of the Parent Company that is not a Loan Party to another Subsidiary of the Parent Company that is not a Loan Party;


 


(C)         any
Subsidiary of the Parent Company that is not a Loan Party to a Loan Party,  or any Loan Party to any Subsidiary of the Parent
Company that is not a Loan Party, in each case in the ordinary course of business substantially consistent with past practice (“Ordinary
Course”);


 


(D)         any
Subsidiary of the Parent Company that is not a Loan Party to a Loan Party, outside the Ordinary Course, provided that the consideration
paid by such Loan Party (x) must not be greater than fair market value of the assets sold, transferred or leased, (y) if paid as
Indebtedness, is permitted under Section 8.2.1 [Indebtedness], and (z) either (I) when added with the outstanding loans, investments
and advances made by Loan Parties in Subsidiaries of the Parent Company that are not Loan Parties pursuant to Section 8.2.4(iv)(D)
(not including those set forth on Schedule 8.2.4), does not exceed $3,000,000 in the aggregate at any time or (II) is set
forth on Schedule 8.2.4; and


 


(E)         any
Loan Party to any Subsidiary of the Parent Company that is not a Loan Party, outside the Ordinary Course, provided that the consideration
paid by such


 




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 Subsidiary (x) must not be less than fair market value of such sold, transferred or leased assets, and, if paid as
Indebtedness, is permitted under Section 8.2.1 [Indebtedness], and (y) when added with the outstanding loans, investments and advances
made by Loan Parties in Subsidiaries of the Parent Company that are not Loan Parties pursuant to Section 8.2.4(iv)(D), does not
exceed $5,000,000 in the aggregate;


 


(iv)        any
sale, transfer or lease of assets in the ordinary course of business which are replaced by substitute assets acquired or leased;


 


(v)         sales,
transfers, leases or other dispositions of assets of Immaterial Subsidiaries;


 


(vi)        dividends
and distributions permitted by Section 8.2.5 [Dividends and Related Distributions];


 


(vii)       investments,
advances and loans permitted by Section 8.2.4 [Loans and Investments];


 


(viii)      assignments,
licenses and sublicenses of intellectual property in the ordinary course of business; and


 


(ix)         the
sale, transfer or lease of assets resulting from the facility closures listed on Schedule 8.2.7 attached hereto.


 


8.2.8           Affiliate
Transactions.  Each of the Loan Parties shall not, and shall not permit any of its
Subsidiaries to, enter into or carry out any transaction with any Affiliate of any Loan Party (including purchasing property or
services from or selling property or services to any Affiliate of any Loan Party or other Person) unless such transaction is not
otherwise prohibited by this Agreement, is entered into in the ordinary course of business upon fair and reasonable arm's-length
terms and in accordance with all applicable Law.


 


8.2.9           Subsidiaries.  Each
of the Loan Parties shall not, and shall not permit any of its Subsidiaries to, own or create directly or indirectly any Subsidiary
other than:


 


(i)          any
domestic Subsidiary, not designated as an Immaterial Domestic Subsidiary, existing as of the Closing Date which has joined the
Loan Documents as a Guarantor as of the Closing Date (including any domestic Subsidiary that the Lender and Borrowers agree in
accordance with this Section 8.2.9 after the Closing Date will no longer be designated as an “Immaterial Domestic Subsidiary”);


 


(ii)         any
Immaterial Domestic Subsidiary or Immaterial Foreign Subsidiary (including any Subsidiary that the Lender and Borrowers agree in
accordance with this Section 8.2.9 to designate as an “Immaterial Domestic Subsidiary” or “Immaterial Foreign
Subsidiary”, as the case may be);


 


(iii) any foreign Subsidiary, existing
as of the Closing Date as to which, if it is a 1st tier foreign Subsidiary and not an Immaterial Foreign Subsidiary
(including any foreign


 




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Subsidiary that the Lender and Borrowers
agree in accordance with this Section 8.2.9 after the Closing Date will no longer be designated as an “Immaterial Foreign
Subsidiary”), 65% of all issued and outstanding equity interests of such 1st tier foreign Subsidiary is pledged
to the Lender under the Pledge Agreement, including delivery to the Lender of documents necessary to grant and perfect Prior Security
Interests to the Lender in equity interests of such 1st tier foreign Subsidiary under U.S. law, all of which is satisfactory
in form and substance to the Lender;


 


(iv)        any
domestic Subsidiary (other than any domestic Subsidiary that the Lender and Borrowers agree in accordance with this Section 8.2.9
will be designated as an “Immaterial Domestic Subsidiary”) created or acquired after the Closing Date which joins the
Loan Documents as a Guarantor by delivering to the Lender a signed Guarantor Joinder and other documents in the forms described
in Section 7.1 [First Loans] modified as appropriate and in form and substance satisfactory to the Lender; or


 


(v)         any
foreign Subsidiary (other than any foreign Subsidiary that the Lender and Borrowers agree in accordance with this Section 8.2.9
will be designated as an “Immaterial Foreign Subsidiary”) created or acquired after the Closing Date as to which, if
it is a 1st tier foreign Subsidiary and not an Immaterial Foreign Subsidiary, 65% of all issued and outstanding equity
interests of such foreign Subsidiary is pledged to the Lender under the Pledge Agreement, including delivery to the Lender of documents
necessary to grant and perfect Prior Security Interests to the Lender in equity interests of such foreign Subsidiary under U.S.
law and the laws of its jurisdiction if so required by Lender, all of which is satisfactory in form and substance to the Lender,
provided that Lender shall not require perfection in such foreign jurisdiction to the extent (i) such pledge would be unlawful
under applicable Law, and (ii) in the reasonable discretion of the Lender (in consultation with the Borrowers), the costs and burdens
of obtaining such pledge are excessive in relation to the value of the security being afforded by such pledge;


 


provided that the designation of any Subsidiary as an
Immaterial Subsidiary shall be made by agreement among the Borrowers and Lender in writing, with the understanding that any Subsidiary
that materially contributes to the overall assets or revenues of the Borrowers and their Subsidiaries, as reasonably determined
by the Lender, will not be designated as an Immaterial Subsidiary.


 


8.2.10         Continuation
of or Change in Business.  Each of the Loan Parties shall not, and shall not permit
any of its Subsidiaries to, engage in any business if, as a result, the general nature of the business in which the Loan Parties
and their Subsidiaries, taken as a whole, would then be engaged would be substantially changed from the general nature of the
business in which the Loan Parties and their Subsidiaries, taken as a whole, are engaged on the Closing Date.


 


8.2.11         Fiscal
Year.  Each Borrower shall not, and shall not permit any Subsidiary of the Borrowers
to, change its fiscal year from the twelve-month period ending the Sunday nearest to the last day of February, or the last day
of February, for each calendar year, without providing at least thirty (30) days’ prior written notice to the Lender.


 




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8.2.12         Changes
in Organizational Documents.  Each of the Loan Parties shall not, and shall not permit
any of its Subsidiaries to, amend in any respect its certificate of incorporation (including any provisions or resolutions relating
to capital stock), by-laws, certificate of limited partnership, partnership agreement, certificate of formation, limited liability
company agreement or other organizational documents without, if such change would be materially adverse to the Lender, providing
at least thirty (30) days' prior written notice to the Lender. Notwithstanding the foregoing, if any Loan Party party as a grantor
under the Pledge Agreement changes its jurisdiction of organization from that listed on Schedule 6.1.2 or anyone other
than such Loan Party party as a grantor under the Pledge Agreement comes to own any equity interests pledged under the Pledge
Agreement or if any new equity interests (whether by increase of amount or creation of a new class or type, or otherwise) in any
issuer referenced in the Pledge Agreement exist, Borrowers shall provide Lender with immediate written notice thereof and promptly
deliver such documents, instruments or certificates as Lender may require to perfect or continue perfection of its Lien pursuant
to the Pledge Agreement and promptly take any other actions required pursuant to the Pledge Agreement.


 


8.2.13         Maximum
Funded Debt Ratio.  The Loan Parties shall not at any time permit the ratio of consolidated
Funded Debt of the Borrowers and their Subsidiaries to Consolidated EBITDA, calculated as of the end of each fiscal quarter for
the four immediately preceding fiscal quarters, beginning with the fiscal quarter first ending after the Closing Date and continuing
thereafter, to exceed 3.00 to 1.00.


 


8.2.14         Minimum
Interest Coverage Ratio.  The Loan Parties shall not permit the Interest Coverage
Ratio of the Borrowers and their Subsidiaries, calculated as of the end of each fiscal quarter for the four immediately preceding
fiscal quarters, beginning with the fiscal quarter first ending after the Closing Date and continuing thereafter, to be less than
3.00 to 1.00.


 


8.2.15         Negative
Pledges.  Each of the Loan Parties covenants and agrees that it shall not, and shall
not permit any of its Subsidiaries to, enter into any Agreement with any Person which, in any manner, whether directly or contingently,
prohibits, restricts or limits the right of any of the Loan Parties from granting any Liens to the Lender.


 


8.3           Reporting
Requirements.  The Loan Parties will furnish or cause to be furnished to the Lender:


 


8.3.1           Quarterly
Financial Statements.  As soon as available and in any event within sixty (60) calendar
days after the end of each of the first three fiscal quarters in each fiscal year of the Borrowers, financial statements of the
Parent Company and its Subsidiaries (including Borrowers), consisting of a consolidated balance sheet as of the end of such fiscal
quarter and related consolidated statement of income and consolidated statement of cash flows for the fiscal quarter then ended
and the fiscal year through that date, all in reasonable detail and certified (subject to normal year-end audit adjustments) by
an Authorized Officer of the Borrowers as having been prepared in accordance with GAAP, consistently applied, and setting forth
in comparative form the respective financial statements for the corresponding date and period in the previous fiscal year. Delivery
within the time period specified above of copies of 


 




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the Parent Company’s Report on Form 10-Q prepared in compliance with
the requirements thereunder and filed with the SEC shall be deemed to satisfy the requirements of this Section.


 


8.3.2           Annual
Financial Statements.


 


8.3.2.1           Annual
Financial Statements. Consolidated
Financial Statements. As soon as available and in any event within one hundred twenty (120) days after the end of each fiscal
year of the Borrowers, financial statements of the Parent Company and its Subsidiaries (including Borrowers) consisting of a consolidated
balance sheet as of the end of such fiscal year, and related consolidated statement of income and stockholders' equity and statement
of cash flows for the fiscal year then ended, all in reasonable detail and setting forth in comparative form the financial statements
as of the end of and for the preceding fiscal year, and certified by independent certified public accountants of nationally recognized
standing reasonably satisfactory to the Lender as presenting fairly, in all material respects, the financial position of the companies
being reported upon and their results of operations and cash flows and having been prepared in conformity with GAAP. Delivery
within the time period specified above of copies of the Parent Company’s Report on Form 10-K prepared in compliance with
the requirements thereunder and filed with the SEC shall be deemed to satisfy the requirements of this Section; and


 


8.3.2.2           Consolidating
Financial Statements. As soon as available and in any event within one hundred twenty (120) days after the end of each fiscal
year of the Borrowers, financial statements of the Parent Company and its Subsidiaries (including Borrowers) consisting of a consolidating
balance sheet as of the end of such fiscal year, and related consolidating statement of income and stockholders' equity and statement
of cash flows for the fiscal year then ended, all in reasonable detail and setting forth in comparative form the financial statements
as of the end of and for the preceding fiscal year, and certified (subject to normal year-end audit adjustments) by an Authorized
Officer of the Borrowers as having been prepared in accordance with GAAP, consistently applied, and setting forth in comparative
form the respective financial statements for the corresponding date and period in the previous fiscal year.


 


8.3.3           Certificates
of the Borrowers. Concurrently with the financial statements of the Borrowers furnished
to the Lender pursuant to Sections 8.3.1 [Quarterly Financial Statements] and 8.3.2 [Annual Financial Statements], a certificate
of the Borrowers signed by an Authorized Officer of the Borrowers in the form of Exhibit 8.3.3.1 (each a “Compliance
Certificate”).


 


8.3.4           Notices. Borrowers
shall deliver to the Lender the following notices and reports:


 


8.3.4.1           Default.
Promptly after any officer of any Loan Party has learned of the occurrence of an Event of Default or Potential Default, a certificate
signed by an Authorized Officer setting forth the details of such Event of Default or Potential Default and the action which such
Loan Party proposes to take with respect thereto.


 


8.3.4.2           Litigation.
Promptly after the commencement thereof, notice of any action, suit, proceeding or investigation before or by any Official Body
or any other


  




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Person against any Loan Party or Subsidiary of any Loan Party which relate to the Collateral or which if adversely
determined would constitute a Material Adverse Change.


 


8.3.4.3           Organizational
Documents. If any amendment to the organizational documents of any Loan Party is required to be delivered to Lender pursuant
to Section 8.2.12, within the time limits set forth in Section 8.2.12 [Changes in Organizational Documents].


 


8.3.4.4           Erroneous
Financial Information. Promptly and in any event within five (5) Business Days in the event that the Borrowers or their accountants
conclude or advise that any previously issued financial statement, audit report or interim review should no longer be relied upon
or that disclosure should be made or action should be taken to prevent future reliance.


 


8.3.4.5           ERISA
Event. Promptly upon the occurrence of any ERISA Event with respect to a Pension Plan or Multiemployer Plan which has resulted
or could reasonably be expected to result in liability of any Loan Party or any Subsidiary of a Loan Party under Title IV of ERISA
to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of $2,250,000.


 


8.3.4.6           Other
Reports. Promptly upon their becoming available to the Borrowers:


 


(i)          Financial
Projections. If the Parent Company hereafter ceases to be publicly traded on a U.S. stock exchange, within sixty (60) days
after commencement of each fiscal year of the Parent Company, the annual projections of the Parent Company and its Subsidiaries
for the then-current fiscal year.


 


(ii)         Material
Management Letters. Any material reports, including material management letters, submitted to the Borrowers by independent
accountants in connection with any annual, interim or special audit, and


 


(iii)        Other
Material Information. A copy of each material public filing as to any Loan Party or their Subsidiaries (or notice of the filing
thereof on EDGAR), and such other reports and information as the Lender may from time to time reasonably request.


 


9.          DEFAULT


 


9.1           Events
of Default. An Event of Default shall mean the occurrence or existence of any one
or more of the following events or conditions (whatever the reason therefor and whether voluntary, involuntary or effected by
operation of Law):


 


9.1.1           Payments
Under Loan Documents. The Borrowers shall fail to pay any principal of any Loan
(including scheduled installments, mandatory prepayments or the payment due at maturity) or Reimbursement Obligation or any interest
on any Loan or Reimbursement Obligation or any other amount owing hereunder or under the other Loan Documents on the date 


 




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on which
such principal, interest or other amount becomes due in accordance with the terms hereof or thereof; provided, however, that the
Borrowers shall have a grace period of two (2) Business Days for the payment of amounts owing hereunder or under the other Loan
Documents other than principal.


 


9.1.2           Breach
of Warranty. Any representation or warranty made at any time by any of the Loan
Parties herein or by any of the Loan Parties in any other Loan Document, or in any certificate, other instrument or statement
furnished pursuant to the provisions hereof or thereof, shall prove to have been false or misleading in any material respect as
of the time it was made or furnished;


 


9.1.3           Breach
of Negative Covenants or Visitation Rights. Any of the Loan Parties shall default
in the observance or performance of any covenant contained in Section 8.1.5 [Visitation Rights] or Section 8.2 [Negative
Covenants];


 


9.1.4           Breach
of Other Covenants. Any of the Loan Parties shall default in the observance or performance
of any other covenant, condition or provision hereof or of any other Loan Document and such default shall continue unremedied
for a period of thirty (30) days (provided that no such grace period shall apply to Sections 8.3.1 [Quarterly Financial Statements],
8.3.2 [Annual Financial Statements] and 8.3.3 [Certificates of Borrowers]);


 


9.1.5           Defaults
in Other Agreements or Indebtedness. A default or event of default shall occur at
any time under the terms of any other agreement involving borrowed money or the extension of credit or any other Indebtedness
under which any Loan Party or Subsidiary of any Loan Party may be obligated as a borrower or guarantor in excess of $2,250,000
in the aggregate, and such breach, default or event of default consists of the failure to pay (beyond any period of grace permitted
with respect thereto, whether waived or not) any Indebtedness when due (whether at stated maturity, by acceleration or otherwise)
or if such breach or default permits or causes the acceleration of any such Indebtedness (whether or not such right shall have
been waived) or the termination of any commitment to lend;


 


9.1.6           [reserved];


 


9.1.7           Final
Judgments or Orders. Any final judgments or orders for the payment of money in excess
of $2,250,000 in the aggregate, not covered by insurance, shall be entered against any Loan Party or any Subsidiary of a Loan
Party by a court having jurisdiction in the premises, which judgment is not discharged, vacated, bonded or stayed pending appeal
within a period of thirty (30) days from the date of entry;


 


9.1.8           Loan
Document Unenforceable.  Any of the Loan Documents shall cease to be legal, valid
and binding agreements enforceable against the party executing the same or such party's successors and assigns (as permitted under
the Loan Documents) in accordance with the respective terms thereof or shall in any way be terminated (except in accordance with
its terms) or become or be declared ineffective or inoperative or shall in any way be challenged or contested or cease to give
or provide the respective Liens, security interests, rights, titles, interests, remedies, powers or privileges intended to be
created thereby;


 




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9.1.9           Uninsured
Losses; Proceedings Against Assets.  There shall occur any uninsured damage to or
loss, theft or destruction of any of assets or properties of a Loan Party or any Subsidiary of a Loan Party that constitutes a
Material Adverse Change, or any of the Loan Parties' or any of their Subsidiaries' assets with a fair market value of $2,250,000
or greater are attached, seized, levied upon or subjected to a writ or distress warrant; or such come within the possession of
any receiver, trustee, custodian or assignee for the benefit of creditors and the same is not cured within thirty (30) days thereafter;


 


9.1.10         Events
Relating to Plans and Benefit Arrangements.  (i) An ERISA Event occurs with respect
to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to result in liability of any Loan
Party or any Subsidiary of a Loan Party under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate
amount in excess of $2,250,000, or (ii) any Loan Party or any Subsidiary of a Loan Party or any ERISA Affiliate fails to
pay when due, after the expiration of any applicable grace period, any installment payment with respect to its withdrawal liability
under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in excess of $2,250,000;


 


9.1.11         Change
in Control.  If any Change in Control shall occur; and


 


9.1.12         Relief
Proceedings.  (i) A Relief Proceeding shall have been instituted against any
Loan Party or Subsidiary of a Loan Party and such Relief Proceeding shall remain undismissed or unstayed and in effect for a period
of thirty (30) consecutive days or a court shall enter a decree or order granting any of the relief sought in such Relief Proceeding,
(ii) any Loan Party or Subsidiary of a Loan Party institutes, or takes any action in furtherance of, a Relief Proceeding, or (iii)
any Loan Party or any Subsidiary of a Loan Party (other than an Immaterial Subsidiary) ceases to be Solvent or admits in writing
its inability to pay its debts as they mature.


 


9.2           Consequences
of Event of Default.


 


9.2.1           Events
of Default Other Than Bankruptcy, Insolvency or Reorganization Proceedings.  If an
Event of Default specified under Sections 9.1.1 through 9.1.11 shall occur and be continuing, the Lender shall be under no
further obligation to make Loans or under no obligation to issue Letters of Credit and the Lender may (i) by written notice
to the Borrowers, declare the unpaid principal amount of the Notes then outstanding and all interest accrued thereon, any unpaid
fees and all other Indebtedness of the Borrowers to the Lender hereunder and thereunder to be forthwith due and payable, and the
same shall thereupon become and be immediately due and payable to the Lender without presentment, demand, protest or any other
notice of any kind, all of which are hereby expressly waived, and (ii) require the Borrowers to, and the Borrowers shall
thereupon, deposit in a non-interest-bearing account with the Lender, as cash collateral for its Obligations under the Loan Documents,
an amount equal to the maximum amount currently or at any time thereafter available to be drawn on all outstanding Letters of
Credit, and the Borrowers hereby pledge to the Lender, and grant to the Lender a security interest in, all such cash as security
for such Obligations.


 


9.2.2           Bankruptcy,
Insolvency or Reorganization Proceedings.  If an Event of Default specified under
Section 9.1.12 [Relief Proceedings] shall occur, the Lender shall be


 




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under no further obligations to make Loans
hereunder and shall be under no obligation to issue Letters of Credit and the unpaid principal amount of the Loans then outstanding
and all interest accrued thereon, any unpaid fees and all other Indebtedness of the Borrowers to the Lender hereunder and thereunder
shall be immediately due and payable, without presentment, demand, protest or notice of any kind, all of which are hereby expressly
waived.


 


9.2.3           Set-off.  If
an Event of Default shall have occurred and be continuing, the Lender and each of its Affiliates is hereby authorized at any time
and from time to time, to the fullest extent permitted by applicable Law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency)
at any time owing by the Lender or any such Affiliate to or for the credit or the account of any Loan Party against any and all
of the Obligations of such Loan Party now or hereafter existing under this Agreement or any other Loan Document to the Lender
or Affiliate, irrespective of whether or not the Lender or Affiliate shall have made any demand under this Agreement or any other
Loan Document and although such Obligations of such Borrower or such Loan Party may be contingent or unmatured or are owed to
a branch or office of the Lender different from the branch or office holding such deposit or obligated on such Indebtedness. The
rights of the Lender and its Affiliates under this Section are in addition to other rights and remedies (including other rights
of setoff) that the Lender or its Affiliates may have. The Lender agrees to notify the Borrowers promptly after any such setoff
and application; provided that the failure to give such notice shall not affect the validity of such setoff and application.


 


9.2.4           Application
of Proceeds.  From and after the date on which the Lender has taken any action pursuant
to this Section 9.2 and until all Obligations of the Loan Parties have been paid in full, any and all proceeds received by
the Lender from any sale or other disposition of any Collateral, or any part thereof, or the exercise of any other remedy by the
Lender, shall be applied as follows:


 


(i)          first,
to reimburse the Lender for out-of-pocket costs, expenses and disbursements, including reasonable attorneys' fees and expenses,
incurred by the Lender in connection with realizing on any Collateral or collection of any Obligations of any of the Loan Parties
under any of the Loan Documents, including advances made by the Lender for the reasonable maintenance, preservation, protection
or enforcement of, or realization upon, any Collateral, including advances for taxes, insurance, repairs and the like and reasonable
expenses incurred to sell or otherwise realize on, or prepare for sale or other realization on, any Collateral;


 


(ii)         second,
to the repayment of all Obligations then due and unpaid of the Loan Parties to the Lender or its Affiliates incurred under this
Agreement or any of the other Loan Documents or agreements evidencing any Lender Provided Interest Rate Hedge or Other Lender Provided
Financial Services Obligations, whether of principal, interest, fees, expenses or otherwise and to cash collateralize the Letter
of Credit Obligations, in such manner as the Lender may determine in its discretion; and


 


(iii)        the
balance, if any, to the Loan Parties or as otherwise required by Law.


 




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10.         MISCELLANEOUS


 


10.1         Modifications,
Amendments or Waivers.  The Lender and the Borrowers, on behalf of the Loan Parties,
may from time to time enter into written agreements amending or changing any provision of this Agreement or any other Loan Document
or the rights of the Lender or the Loan Parties hereunder or thereunder, or may grant written waivers or consents hereunder or
thereunder. Any such agreement, waiver or consent made with such written consent shall be effective to bind all the Loan Parties
and the Lender.


 


10.2         No
Implied Waivers; Cumulative Remedies.  No course of dealing and no delay or failure
of the Lender in exercising any right, power, remedy or privilege under this Agreement or any other Loan Document shall affect
any other or future exercise thereof or operate as a waiver thereof, nor shall any single or partial exercise thereof preclude
any further exercise thereof or of any other right, power, remedy or privilege. The rights and remedies of the Lender under this
Agreement and any other Loan Documents are cumulative and not exclusive of any rights or remedies which it would otherwise have.


 


10.3         Expenses;
Indemnity; Damage Waiver.


 


10.3.1           Costs
and Expenses.  The Borrowers shall pay (i) all out-of-pocket expenses incurred
by the Lender and its Affiliates (including the reasonable fees, charges and disbursements of counsel for the Lender), and shall
pay all reasonable fees and time charges and disbursements for attorneys who may be employees of the Lender, in connection with
the participation of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration
of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all out-of-pocket expenses incurred
by the Lender in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment
thereunder, (iii) all out-of-pocket expenses incurred by the Lender (including the reasonable fees, charges and disbursements
of any counsel for the Lender), and shall pay all reasonable fees and time charges for attorneys who may be employees of the Lender
in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents,
including its rights under this Section, or (B) in connection with the Loans made or Letters of Credit issued hereunder,
including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans
or Letters of Credit, and (iv) all reasonable out-of-pocket expenses of the Lender's regular employees and agents engaged periodically,
in accordance with Section 8.1.5, to perform audits of the Loan Parties' books, records and business properties. Notwithstanding
the foregoing, the Borrowers shall be responsible for allocated costs of internal counsel only during a post-Event of Default
out-of-court restructuring or after the filing of any petition in bankruptcy or the commencement of any insolvency, reorganization
or like proceeding relating to a Loan Party.


 


10.3.2           Indemnification
by the Borrowers.  The Borrowers shall jointly and severally indemnify and defend
the Lender (and any agent thereof) and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”)
against, and hold




 




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each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including
the fees, charges and disbursements of any counsel for any Indemnitee), and shall indemnify and hold harmless each Indemnitee
from all fees and time charges and disbursements for attorneys who may be employees of any Indemnitee, incurred by any Indemnitee
or asserted against any Indemnitee by any third party or by any Borrower or any other Loan Party arising out of, in connection
with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby or thereby, the performance or nonperformance by the parties hereto of their respective obligations hereunder
or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Loan or Letter of Credit or
the use or proposed use of the proceeds therefrom (including any refusal by the Lender to honor a demand for payment under a Letter
of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit),
(iii) breach of representations, warranties or covenants of the Borrowers under the Loan Documents, or (iv) any actual
or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, including any such items or losses
relating to or arising under Environmental Laws or pertaining to environmental matters, whether based on contract, tort or any
other theory, whether brought by a third party or by any Borrower or any other Loan Party, and regardless of whether any Indemnitee
is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final
and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) result
from a claim brought by any Borrower or any other Loan Party against an Indemnitee for breach in bad faith of Lender’s or
such Indemnitee's obligations hereunder or under any other Loan Document, if such Borrower or such Loan Party has obtained a final
and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction. This Section 10.3.2
[Indemnification by the Borrowers] shall not apply with respect to Taxes other than Taxes that represent losses, claims, damages,
etc. arising from any non-Tax claim.


 


If any such claim or action shall be brought
against any Indemnitee, such Indemnitee shall notify the Borrowers thereof, and the Borrowers shall be entitled to participate
in the defense against such claim, though all aspects of the defense shall be principally managed by counsel selected by the Lender
or such Indemnitee (with the understanding that Lender and any other Indemnities will not retain duplicative counsel for their
representation, unless there are conflicts necessitating separate counsel). Notwithstanding the foregoing, the Borrowers, Lender
and such Indemnitee may agree, in their discretion, in writing to share a single counsel in any such claim or action, on such terms
and conditions as they may establish at such time.


 


Notwithstanding the foregoing, the Borrowers
shall be responsible for allocated costs of internal counsel only during a post-Event of Default out-of-court restructuring or
after the filing of any petition in bankruptcy or the commencement of any insolvency, reorganization or like proceeding relating
to a Loan Party.


 


10.3.3           Waiver
of Consequential Damages, Etc.  To the fullest extent permitted by applicable Law,
each Indemnitee and each Loan Party shall not assert, and hereby waives, any claim against any Indemnitee or any Loan Party (as
applicable), on any theory of liability, for




 




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special, indirect, consequential or punitive damages (as opposed to direct or actual
damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds
thereof. No Indemnitee referred to in Section 10.3.2 [Indemnification by Borrowers] shall be liable for any damages arising from
the use by unintended recipients of any information or other materials distributed by it, other than through gross negligence
or willful misconduct, through telecommunications, electronic or other information transmission systems in connection with this
Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.


 


10.3.4           Payments.  All
amounts due under this Section shall be payable not later than ten (10) Business Days after demand therefor.


 


10.4         Holidays.  Whenever
payment of a Loan to be made or taken hereunder shall be due on a day which is not a Business Day such payment shall be due on
the next Business Day (except as provided in Section 4.2 [Interest Periods]) and such extension of time shall be included
in computing interest and fees, except that the Loans shall be due on the Business Day preceding the Expiration Date if the Expiration
Date is not a Business Day. Whenever any payment or action to be made or taken hereunder (other than payment of the Loans) shall
be stated to be due on a day which is not a Business Day, such payment or action shall be made or taken on the next following
Business Day, and such extension of time shall not be included in computing interest or fees, if any, in connection with such
payment or action.


 


10.5         Notices;
Effectiveness; Electronic Communication.


 


10.5.1           Notices
Generally.  Except in the case of notices and other communications expressly permitted
to be given by telephone (and except as provided in Section 10.5.2 [Electronic Communications]), all notices and other communications
provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered
mail or sent by telecopier to the applicable party hereto at its address set forth on Schedule 1.1(A).


 


Notices sent by hand or overnight courier
service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by telecopier
shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be
deemed to have been given at the opening of business on the next Business Day for the recipient). Notices delivered through electronic
communications to the extent provided in Section 10.5.2 [Electronic Communications], shall be effective as provided in such Section.


 


10.5.2           Electronic
Communications.  Notices and other communications to the Lender hereunder may
be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures
approved by the Lender. The Lender or the Borrowers may, in their discretion, agree to accept notices and other communications
to them hereunder by electronic communications pursuant to procedures approved by them; provided that approval of such
procedures may be limited to particular notices or communications. Unless the


 




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Lender otherwise prescribes, (i) notices and
other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the
intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written
acknowledgement); provided that if such notice or other communication is not sent during the normal business hours of the
recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next Business Day
for the recipient, and (ii) notices or communications posted to an Internet or intranet website shall be deemed received
upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification
that such notice or communication is available and identifying the website address therefor.


 


10.5.3           Change
of Address, Etc.  Any party hereto may change its address, e-mail address or telecopier
number for notices and other communications hereunder by notice to the other parties hereto.


 


10.6         Severability.  The
provisions of this Agreement are intended to be severable. If any provision of this Agreement shall be held invalid or unenforceable
in whole or in part in any jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such invalidity
or unenforceability without in any manner affecting the validity or enforceability thereof in any other jurisdiction or the remaining
provisions hereof in any jurisdiction.


 


10.7         Duration;
Survival.  All representations and warranties of the Loan Parties contained herein
or made in connection herewith shall survive the execution and delivery of this Agreement, the completion of the transactions
hereunder and Payment In Full. All covenants and agreements of the Loan Parties contained herein relating to the payment of principal,
interest, premiums, additional compensation or expenses and indemnification, including those set forth in the Notes, Section 5
[Payments] and Section 10.3 [Expenses; Indemnity; Damage Waiver], shall survive Payment In Full. All other covenants and agreements
of the Loan Parties shall continue in full force and effect from and after the date hereof and until Payment In Full.


 


10.8         Successors
and Assigns.


 


10.8.1           Successors
and Assigns Generally.  The provisions of this Agreement shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns permitted hereby, except that neither
any Borrower nor any other Loan Party may assign or otherwise transfer any of its rights or obligations hereunder without the
prior written consent of the Lender and the Lender may not assign or otherwise transfer any of its rights or obligations hereunder
except (i) to an assignee in accordance with the provisions of Section 10.8.2 [Assignments by Lender], (ii) by way of participation
in accordance with the provisions of Section 10.8.3 [Participations], or (iii) by way of pledge or assignment of a security
interest subject to the restrictions of Section 10.8.4 [Certain Pledges; Successors and Assigns Generally] (and any other attempted
assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be
construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in Section 10.8.3 [Participations] and, to the extent expressly 


 




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contemplated hereby, the Related
Parties of the Lender) any legal or equitable right, remedy or claim under or by reason of this Agreement.


 


10.8.2           Assignments
by Lender.  The Lender may at any time assign to one or more assignees all or a portion
of its rights and obligations under this Agreement (including all or a portion of its Revolving Credit Commitment and the Loans
at the time owing to it). Any assignment by the Lender under this Section 10.8.2 when no Event of Default has occurred and is
continuing shall be subject to the Borrowers’ consent (not to be unreasonably withheld); provided, however, that
if the Lender has requested Borrowers’ consent and no consent (or refusal to provide consent) has been received within ten
(10) days, such consent shall be deemed granted.


 


10.8.3           Participations.  The
Lender may at any time, without the consent of, or notice to, the Borrowers, sell participations to any Person (other than a natural
person or any Borrower or any of the Borrowers' Affiliates or Subsidiaries) (each, a “Participant”) in all
or a portion of the Lender's rights and/or obligations under this Agreement (including all or a portion of its Revolving Credit
Commitment and/or the Loans owing to it); provided that (i) the Lender's obligations under this Agreement shall remain
unchanged, (ii) the Lender shall remain solely responsible to the other parties hereto for the performance of such obligations
and (iii) the Borrowers and the Lender shall continue to deal solely and directly with the Lender in connection with the
Lender's rights and obligations under this Agreement.


 


10.8.4           Certain
Pledges.  The Lender may at any time pledge or assign a security interest in all
or any portion of its rights under this Agreement to secure obligations of the Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release the Lender from any of
its obligations hereunder or substitute any such pledgee or assignee for the Lender as a party hereto.


 


10.9         Confidentiality.


 


10.9.1           General.  The
Lender agrees to maintain the confidentiality of the Information, except that Information may be disclosed (i) to its Affiliates
and to its and its Affiliates' respective partners, directors, officers, employees, agents, advisors and other representatives
who need to know such Information (the “Shared Affiliates”), (ii) to the extent requested by any regulatory
authority purporting to have jurisdiction over it (including any self-regulatory authority, such as the National Association of
Insurance Commissioners), (iii) to the extent required by applicable Laws or regulations or by any subpoena or similar legal
process, (iv) to any other party hereto, (v) to the extent required in connection with the exercise of any remedies
hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or
the enforcement of rights hereunder or thereunder, (vi) subject to an agreement containing provisions substantially the same
as those of this Section, to (A) any assignee of or Participant in, or any prospective assignee of or Participant in, any
of its rights or obligations under this Agreement or (B) any actual or prospective counterparty (or its advisors) to any
swap or derivative transaction relating to the Borrowers and their obligations, (vii) with the consent of the Borrowers or
(viii) to the extent such Information (Y) becomes publicly available other than as a result of a breach of this Section
or (Z) becomes


  




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available to the Lender or any of its Affiliates on a nonconfidential basis from a source other than the Borrowers
or the other Loan Parties, which source the Lender or its applicable Affiliates are not actually aware to be bound by an obligation
of confidentiality. If any disclosure is made pursuant to clause (i) above of this Section to any Shared Affiliate, such Shared
Affiliates are obligated to maintain the confidential nature of such Information the same as Lender is pursuant to this Section
and, if requested by the Borrowers, shall reasonably confirm said obligation in writing. The Lender acknowledges that it has developed
compliance procedures regarding the use of material non-public information and it will handle such material non-public information
in accordance with applicable Law, including United States Federal and state securities Laws. Any Person required to maintain
the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do
so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would
accord to its own confidential information. Lender shall be responsible for any disclosure of Information by Shared Affiliates
or any Persons contemplated by clause (vi) above.


 


10.9.2           Sharing
Information With Affiliates of the Lender.  Each Loan Party acknowledges that from
time to time financial advisory, investment banking and other services may be offered or provided to one or more Borrowers or
one or more of their Affiliates (in connection with this Agreement or otherwise) by the Lender or by one or more Subsidiaries
or Affiliates of the Lender, and each of the Loan Parties hereby authorizes the Lender to share any information delivered to the
Lender by such Loan Party and its Subsidiaries pursuant to this Agreement to any such Subsidiary or Affiliate subject to the provisions
of Section 10.9.1 [General].


 


10.10         Counterparts;
Integration; Effectiveness.


 


10.10.1         Counterparts;
Integration; Effectiveness.  This Agreement may be executed in counterparts (and
by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken
together shall constitute a single contract. This Agreement and the other Loan Documents, and any separate letter agreements with
respect to fees payable to the Lender, constitute the entire contract among the parties relating to the subject matter hereof
and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof including
any prior confidentiality agreements and commitments. Except as provided in Section 7 [Conditions Of Lending And Issuance Of Letters
Of Credit], this Agreement shall become effective when it shall have been executed by the Lender and when the Lender shall have
received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an
executed counterpart of a signature page of this Agreement by telecopy or e-mail shall be as effective as delivery of a manually
executed counterpart of this Agreement.


 


10.11         CHOICE
OF LAW; SUBMISSION TO JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS; WAIVER OF JURY TRIAL.


 


10.11.1         Governing
Law.  This Agreement shall be deemed to be a contract under the Laws of the
State of New York without regard to its conflict of laws principles. Each standby Letter of Credit issued under this Agreement
shall be subject either to the rules of the


  




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Uniform Customs and Practice for Documentary Credits, as most recently published by the
International Chamber of Commerce (the “ICC”) at the time of issuance (“UCP”) or the rules
of the International Standby Practices (ICC Publication Number 590) (“ISP98”), as determined by the Lender,
and each trade Letter of Credit shall be subject to UCP, and in each case to the extent not inconsistent therewith, the Laws of
the State of New York (including for such purpose Sections 5-1401 and 5-1402 of the General Obligations Law of the State of New
York) without regard to is conflict of laws principles.


 


10.11.2         SUBMISSION
TO JURISDICTION.  EACH BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT SITTING IN THE CITY OF NEW
YORK (MANHATTAN BOROUGH) IN THE STATE OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF
THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD
AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH
OF THE PARTIES HERETO AGREES 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. NOTHING IN THIS AGREEMENT OR IN ANY OTHER
LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT AGAINST ANY BORROWER OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.


 


10.11.3         WAIVER
OF VENUE.  EACH BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE
OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN
THIS SECTION 10.11. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE
DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT AND AGREES NOT ASSERT ANY SUCH
DEFENSE.


 


10.11.4         SERVICE
OF PROCESS.  EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE
MANNER PROVIDED FOR NOTICES IN SECTION 10.5 [NOTICES; EFFECTIVENESS; ELECTRONIC COMMUNICATION]. NOTHING IN THIS AGREEMENT
WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.


 




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10.11.5         WAIVER
OF JURY TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED
ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, LENDER OR ATTORNEY OF ANY
OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.


 


10.12         USA
Patriot Act Notice.  To help the government fight the funding of terrorism and money
laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies
each Loan Party or Subsidiary of a Loan Party that opens an account. What this means: when a Loan Party or Subsidiary of a Loan
Party opens an account, the Lender will ask for the business name, business address, taxpayer identifying number and other information
that will allow the Lender to identify the Loan Party or Subsidiary of a Loan Party, such as organizational documents. For some
businesses and organizations, the Lender may also need to ask for identifying information and documentation relating to certain
individuals associated with the business or organization.


 


10.13         Anti-Money
Laundering/International Trade Law Compliance.  Each Borrower represents and warrants
to the Lender, as of the date of this Agreement, as of the date of each advance of proceeds under the Revolving Credit Facility,
as of the date of any renewal, extension or modification of this Agreement, and at all times that any obligations exist hereunder
that: (A) no Loan Party or Subsidiary thereof (i) is listed or otherwise recognized as a specially designated, prohibited, sanctioned
or debarred person or entity, or subject to any limitations or prohibitions (including but not limited to the blocking of property
or rejections of transactions) under any order or directive of any Compliance Authority; (ii) has any of its assets in a Sanctioned
Country in violation of any law or regulation enforced by any Compliance Authority or in the possession, custody or control of
a Sanctioned Person; or (iii) does business in or with, or derives any of its operating income from investments in or transactions
with, any Sanctioned Person or Sanctioned Country in violation of any law or regulation enforced by any Compliance Authority;
(B) the proceeds of the Revolving Credit Facility will not be used to fund any operations in, finance any investments or activities
in, or make any payments to, a Sanctioned Person or, in violation of any law or regulation enforced by any Compliance Authority,
a Sanctioned Country; and (C) each Loan Party and Subsidiary of a Loan Party is in compliance with, and no Loan Party or Subsidiary
of a Loan Party engages in any dealings or transactions prohibited by, any laws of the United States including the USA Patriot
Act, the Trading with the Enemy Act, or the U.S. Foreign Corrupt Practices Act of 1977, all as amended, supplemented or replaced
from time to time. As used herein: “Compliance Authority” means each and all of the (a) U.S. Department of the Treasury’s
Office of Foreign Asset Control; (b) U.S. Treasury


  




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Department/Financial Crimes Enforcement Network; (c) U.S. State Department/Directorate
of Defense Trade Controls; (d) U.S. Commerce Department/Bureau of Industry and Security; (e) U.S. Internal Revenue Service; (f)
U.S. Justice Department; and (g) U.S. Securities and Exchange Commission; “Sanctioned Country” means a country subject
to a sanctions program maintained by any Compliance Authority; and “Sanctioned Person” means any individual person,
a group, regime, entity or thing subject to, or specially designated under, any sanctions program maintained by any Compliance
Authority.


  



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IN WITNESS WHEREOF, the parties hereto,
by their officers thereunto duly authorized, have executed this Agreement as of the day and year first above written.


 


	 	BORROWER:
	 	 
	 	PARK ELECTROCHEMICAL CORP.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 


 




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	 	GUARANTORS:
	 	 
	 	NELCO PRODUCTS, INC.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 
	 	NELTEC, inc.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 
	 	PARK AEROSPACE TECHNOLOGIES CORP.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 


 




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	 	LENDER:
	 	 
	 	PNC BANK, NATIONAL ASSOCIATION
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 


 




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SCHEDULE 1.1(A)


 


COMMITMENT
OF LENDER AND ADDRESSES FOR NOTICES


 


Page 1 of 2


 


Part 1 - Commitment of Lender and Address for Notice to
Lender


  


	Lender	 	Commitment	 
	PNC Bank, National Association	 	$	54,000,000	 
	Two Tower Center Boulevard	 	 	 	 
	East Brunswick, NJ  08816	 	 	 	 
	Attention: Virginia Alling, Managing Director	 	 	 	 
	Telephone:  (732) 220-3875	 	 	 	 
	Telecopy:  (732) 220-3621	 	 	 	 



 




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SCHEDULE 1.1(A)


 


COMMITMENTS OF LENDER AND ADDRESSES FOR
NOTICES


 


Page 2 of 2


 


Part 2 - Addresses for Notices to Borrowers and Guarantors:


 


BORROWERS:


 


Name: Park Electrochemical Corp.

Address: 48 South Service Rd.

Melville, NY 11747

Attn: Matthew Farabaugh, VP and CFO

Telephone: (631) 465-3625

Telecopy: (631) 465-3100


 


GUARANTORS:


 


Name: c/o Park Electrochemical Corp.

Address: 48 South Service Rd.

Melville, NY 11747

Attn: Matthew Farabaugh, VP and CFO

Telephone: (631) 465-3625

Telecopy: (631) 465-3100


 




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Amendment to Loan Documents


 





 


THIS AMENDMENT TO
LOAN DOCUMENTS (this “Amendment”) is made as of April 29, 2013, by and among PARK ELECTROCHEMICAL CORP.
(the “Borrower”), the GUARANTORS party hereto (the “Guarantors” and, together
with the Borrower, the “Loan Parties”), and PNC BANK, NATIONAL ASSOCIATION (the “Bank”).


 


BACKGROUND


 


A.      The Loan Parties
have executed and delivered to the Bank the Credit Agreement referenced on attached Exhibit A in connection with the credit extensions
described therein.


 


B.      The Loan Parties
and the Bank desire to amend the Loan Documents as provided for in this Amendment.


 


NOW, THEREFORE,
in consideration of the mutual covenants herein contained and intending to be legally bound hereby, the parties hereto agree as
follows:


 


1.      The Credit Agreement
is amended as set forth in Exhibit A. Any and all references to the Credit Agreement in any other Loan Document shall be deemed
to refer to the Credit Agreement as amended by this Amendment. This Amendment is deemed incorporated into the Credit Agreement.
Any initially capitalized terms used in this Amendment without definition shall have the meanings assigned to those terms in the
Credit Agreement. To the extent that any term or provision of this Amendment is or may be inconsistent with any term or provision
in the Credit Agreement, the terms and provisions of this Amendment shall control.


 


2.      Each of the Loan
Parties hereby certifies that: (a) no Event of Default or Default exists or will be caused by the execution, delivery and performance
of this Amendment, and (b) this Amendment has been duly authorized, executed and delivered so that it constitutes the legal, valid
and binding obligation of each such Loan Party, enforceable against each such Loan Party in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors’ rights generally and by general equitable principles. Each of the Loan Parties confirms that it has no defense,
set off, counterclaim, discount or charge of any kind with respect to the Obligations as of the date of this Amendment.


 


3.      As a condition
precedent to the effectiveness of this Amendment, the Loan Parties shall comply with the terms and conditions (if any) specified
in Exhibit A.


 


4.      This Amendment
may be signed in any number of counterpart copies and by the parties to this Amendment on separate counterparts, but all such copies
shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment by facsimile
transmission shall be effective as delivery of a manually executed counterpart. Any party so executing this Amendment by facsimile
transmission shall promptly deliver a manually executed counterpart, provided that any failure to do so shall not affect the validity
of the counterpart executed by facsimile transmission.


 


5.      This Amendment
will be binding upon and inure to the benefit of the Loan Parties and the Bank and their respective successors and assigns.


 


6.      This Amendment
has been delivered to and accepted by the Bank and will be deemed to be made in the State indicated in Section 10.11.1 of the Credit
Agreement. This Amendment will be interpreted and the rights and liabilities of the parties hereto determined in accordance with
the laws of the State indicated in Section 10.11.1 of the Credit Agreement.


 




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7.      Except as amended
hereby, the terms and provisions of the Loan Documents remain unchanged, are and shall remain in full force and effect unless and
until modified or amended in writing in accordance with their terms, and are hereby ratified and confirmed. Except as expressly
provided herein, this Amendment shall not constitute an amendment, waiver, consent or release with respect to any provision of
any Loan Document, a waiver of any Default or Event of Default under any Loan Document, or a waiver or release of any of the Bank’s
rights and remedies (all of which are hereby reserved). The Loan Parties expressly ratify and confirm the waiver of jury trial
provisions contained in the Loan Documents.


 




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WITNESS the
due execution of this Amendment as a document under seal as of the date first written above.


 


	 	BORROWER:
	 	PARK ELECTROCHEMICAL CORP.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 


 




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[signature page to Amendment dated April
29, 2013]


 


	 	GUARANTORS:
	 	NELCO PRODUCTS, INC.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	NELTEC, INC.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	PARK AEROSPACE TECHNOLOGIES  CORP.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 


 



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[signature page to Amendment dated April
29, 2013]


 


	 	PNC BANK, NATIONAL ASSOCIATION
	 	 
	 	By:	 
	 	 	Print Name:  Virginia Alling
	 	 	Title: Managing Director


 




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EXHIBIT A TO


AMENDMENT TO LOAN DOCUMENTS


DATED AS OF APRIL 29, 2013


  


		A.	The “Loan Documents” that are the subject of this Amendment include the following (as
any of the foregoing have previously been amended, modified or otherwise supplemented):



 


		1.	Credit Agreement dated as of January 30, 2013 (the “Credit Agreement”); and



 


		2.	all other “Loan Documents” as defined in the Credit Agreement.



 


		B.	The Credit Agreement is amended as follows:



 


1.           Effective as
of January 30, 2013, Sections 8.1.9, 8.2.5 and 8.2.8 of the Credit Agreement are hereby deleted and replaced with the following:


 


8.1.9      Depository
Accounts and Cash Management. By June 30, 2013, the Borrowers shall have transferred their primary
depository accounts and treasury management services (which specifically does not include investment accounts) to the Lender.


 


8.2.5      Dividends
and Related Distributions.  Each of the Loan Parties shall not, and shall not permit any of its Subsidiaries to, make
or pay, or agree to become or remain liable to make or pay, any dividend or other distribution of any nature (whether in cash,
property, securities or otherwise) on account of or in respect of its shares of capital stock, partnership interests or limited
liability company interests on account of the purchase, redemption, retirement or acquisition of its shares of capital stock (or
warrants, options or rights therefor), partnership interests or limited liability company interests, dividends or other distributions
payable to another Loan Party except for (a) dividends and distributions from Subsidiaries of the Parent Company to the Parent
Company or another Loan Party, (b) only so long as no Potential Default or Event of Default is occurring, regular quarterly dividends
of Parent Company to its shareholders consistent with past practice in amounts not exceeding $.10 per share, and (c) after prior
written notice to the Lender, and only so long as no Potential Default or Event of Default is occurring, an annual special dividend
of Parent Company to its shareholders consistent with past practice in amounts ranging from $1.00 to $2.50 per share.


 


8.2.8      Affiliate
Transactions. Each of the Loan Parties shall not, and shall not permit any of its Subsidiaries to, enter into or carry out
any transaction with any Affiliate of any Loan Party (including purchasing property or services from or selling property or services
to any Affiliate of any Loan Party or other Person) unless such transaction (a) is not otherwise prohibited by this Agreement,
(b) is in accordance with all applicable Law, and (c) either is entered into with a Loan Party or, if entered into with a non-Loan
Party, is entered into in the ordinary course of business upon fair and reasonable arm's-length terms.


 


		C.	The Bank’s willingness to agree to the amendments set forth in this Amendment is subject
to the execution by all parties and delivery to the Bank of this Amendment.



 


		D.	Borrower covenants to pay the fees and expenses of the Bank's outside counsel in connection with
this Amendment upon the invoicing of same.



 




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