# EDGAR Filing Document

**Accession Number:** 0002093536
**File Stem:** 0001193125-26-122234
**Filing Date:** 2026-3
**Character Count:** 2801202
**Document Hash:** ab35e5675967f74e9b7627cc1623d944
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-122234.hdr.sgml**: 20260324

**ACCESSION NUMBER**: 0001193125-26-122234

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 39

**FILED AS OF DATE**: 20260324

**DATE AS OF CHANGE**: 20260324

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Arxis, Inc.
- **CENTRAL INDEX KEY:** 0002093536
- **STANDARD INDUSTRIAL CLASSIFICATION:** AIRCRAFT PART & AUXILIARY EQUIPMENT, NEC [3728]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-294577
- **FILM NUMBER:** 26787648

**BUSINESS ADDRESS:**
- **STREET 1:** 1332 BLUE HILLS AVE
- **CITY:** BLOOMFIELD
- **STATE:** CT
- **ZIP:** 06002
- **BUSINESS PHONE:** 860-243-7100

**MAIL ADDRESS:**
- **STREET 1:** 1332 BLUE HILLS AVE
- **CITY:** BLOOMFIELD
- **STATE:** CT
- **ZIP:** 06002

##### [**Table of Contents**](#toc)
**As filed with the Securities and Exchange Commission on March 24, 2026.** 

**Registration No. 333-** 

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**FORM S-1** 

**REGISTRATION STATEMENT** 

***UNDER***

***THE SECURITIES ACT OF 1933***

## Arxis, Inc.
**(Exact name of registrant as specified in its charter)** 

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| | | |
|:---|:---|:---|
| **Delaware** | **3728** | **39-5113483** |
| **(State or other jurisdiction of incorporation or organization)** | **(Primary Standard Industrial Classification Code Number)** | **(I.R.S. Employer**<br> **Identification Number)** |

---

**1332 Blue Hills Avenue** 

**Bloomfield, CT 06002** 

**Telephone: (860) 243-7100** 

**(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)** 

**Kevin Perhamus** 

**President and Chief Executive Officer** 

**1332 Blue Hills Avenue** 

**Bloomfield, CT 06002** 

**(Name, address, including zip code, and telephone number, including area code, of agent for service)** 

***Copies to:***

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| | |
|:---|:---|
| **Shane Tintle**<br> **Michael Kaplan**<br> **Davis Polk & Wardwell LLP**<br> **450 Lexington Avenue**<br> **New York, NY 10017**<br> **(212) 450-4000** | **Craig Marcus**<br> **Tristan VanDeventer**<br> **Ropes & Gray LLP**<br> **1211 Avenue of the Americas**<br> **New York, NY 10036**<br> **(212) 569-9000** |

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**Approximate date of commencement of proposed sale to the public**: As soon as practicable after the effective date of this Registration Statement.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
|  |  | Emerging growth company | ☐ |

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

**The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.** 

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**The information in this prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.** 

**Preliminary Prospectus** 

**Subject to completion, dated , 2026** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Shares**![LOGO](g81728g03a01.jpg)

**Class A Common Stock** 

This is an initial public offering of shares of Class A common stock by Arxis, Inc. We are offering shares of Class A common stock. The initial public offering price is expected to be between $ and $ per share.

Prior to this offering, there has been no public market for our Class A common stock. We have applied to list our Class A common stock on the Nasdaq Global Select Market ("Nasdaq") under the symbol "ARXS."

Upon completion of this offering, we will have four authorized series of common stock: Class A common stock, which is entitled to one vote per share on all matters on which our stockholders generally are entitled to vote; Class B common stock, which is entitled to twenty votes per share on all matters on which our stockholders generally are entitled to vote; Class C common stock, which is not entitled to vote on any matter on which our stockholders generally are entitled to vote, in each case, except as otherwise provided in our amended and restated certificate of incorporation or as required by applicable law and convertible common stock which will be entitled to vote as described in "Description of Capital Stock—Convertible Common Stock Issued to Arcline Investment Management, L.P." Holders of our common stock vote together as a single class on all matters on which our stockholders generally are entitled to vote, except as otherwise provided in our amended and restated certificate of incorporation or as required by applicable law. Class B common stock is convertible into Class A common stock on a one-for-one basis at the option of the holder and will automatically convert into Class A common stock on a one-for-one basis upon any transfer (other than a permitted transfer described in our amended and restated certificate of incorporation) and in certain other circumstances described in our amended and restated certificate of incorporation. Class C common stock will automatically convert into Class A common stock on a one-for-one basis in circumstances described in our amended and restated certificate of incorporation. Convertible common stock is convertible into Class B common stock (or Class A common stock if no Class B common stock is outstanding at the time of such conversion), as described in "Description of Capital Stock—Convertible Common Stock Issued to Arcline Investment Management, L.P." Immediately following the completion of this offering, our Class B common stock and convertible common stock, which will be held solely by investment funds affiliated with Arcline Investment Management, L.P. ("Arcline" or our "Sponsor"), will represent % of the total voting power of our outstanding common stock (or % of the total voting power of our outstanding common stock if the underwriters exerc

ise their option to purchase additional shares in full). As a result, we will be a "controlled company" under Nasdaq corporate governance standards and intend to rely on exemptions from certain Nasdaq corporate governance requirements. See "Management—Controlled Company Status."

**Investing in our Class A common stock involves a high degree of risk. See "[Risk Factors](#tx81728_2)" beginning on page 25 of this prospectus.** 

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| | | |
|:---|:---|:---|
|  | **Per<br>Share** | **Total** |
|  Initial public offering price | $| $|
|  Underwriting discounts and commissions<sup>(1)</sup> | $| $|
|  Proceeds to us, before expenses | $| $|

---

(1) See "Underwriting" for a description of all compensation payable to the underwriters.

We have granted the underwriters an option for a period of 30 days to purchase up to additional shares of Class A common stock to cover over-allotments.

At our request, the underwriters have reserved up to shares of our Class A common stock, or 5% of the shares being offered pursuant to this prospectus, for sale at the initial public offering price to certain individuals and entities as determined by certain of our officers through a directed share program. See "Under writing—Directed Share Program" for additional information.

**Neither the Securities and Exchange Commission ("SEC") nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.** 

The underwriters expect to deliver the shares to purchasers on or about , 2026 through the book-entry facilities of The Depository Trust Company.

***Joint Bookrunning Managers***

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| | | |
|:---|:---|:---|
| **Goldman Sachs & Co. LLC\*** | **Morgan Stanley\*** | **Jefferies** |

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***\* listed in alphabetical order***

***Joint Bookrunners***

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| | |
|:---|:---|
| **Citigroup** | **RBC Capital Markets** |

---

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| | | | |
|:---|:---|:---|:---|
| **Baird** | **Guggenheim Securities** | **Wells Fargo Securities** | **William Blair** |

---

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| | |
|:---|:---|
| **Rothschild & Co** | **Wolfe \| Nomura Alliance** |

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***Co-Manager***

**Citizens Capital Markets**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**, 2026** 

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![LOGO](g81728g01k01.jpg)

ARXIS Engineered Components for Mission-Critical Applications

Engineered Components for Mission-Critical Applications

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![LOGO](g81728g05e05.jpg)

Arxis is a leading designer and manufacturer of proprietary, mission-critical electronic and mechanical components engineered for cutting edge performance in extreme environments.~$1.6Bn 2025 Revenue~$46MM 2025 Net Income~$571MM 2025 Adj. EBITDA1~90% Revenue from Proprietary Products5,000+ Customers600+ Platforms Served1 This is a non-GAAP financial measure and should not be used as a substitute for our operating results prepared in accordance with GAAP. See section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Information" for more information on this non-GAAP financial information, including a reconciliation to the nearest GAAP measure. Adjusted EBITDA is a non-GAAP financial measure that we defined as net income (loss), adjusted for: (i) interest expense, net; (ii) income tax expense (benefit); (iii) depreciation and amortization; (iv) acquisition and integration costs; (v) restructuring costs; (vi) transaction and other deal related expenses; (vii) share-based compensation expense; (viii) refinancing costs; and (ix) other non-recurring adjustments.Arxis is a leading designer and manufacturer of proprietary, mission-critical electronic and mechanical components engineered for cutting edge performance in extreme environments. ~$1.6Bn ~$46MM ~$571MM2025 Revenue 2025 Net Income 2025 Adj. EBITDA(1)~90% 5,000+ 600+Revenue from Customers Platforms ServedProprietary Products 1 This is a non-GAAP financial measure and should not be used as a substitute for our operating results prepared in accordance with GAAP. See section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures" for more information on this non-GAAP financial information, including a reconciliation to the nearest GAAP measure. Adjusted EBITDA is a non-GAAP financial measure that we defined as net loss, adjusted for: (i) interest expense, net; (ii) income tax expense (benefit); (iii) depreciation and amortization; (iv) acquisition and integration costs; (v) restructuring costs; (vi) transaction and other deal related expenses; (vii) share-based compensation expense; (viii) refinancing costs; and (ix) other non-recurring adjustments.

Arxis is a leading designer and manufacturer of proprietary, mission-critical electronic and mechanical components engineered for cutting edge performance in extreme environments. ~$1.6Bn ~36% 5,000+ 2025 PF Adj. Revenue 2025 PF Adj. Customers EBITDA Margin ~$570MM ~90% 600+ 2025 PF Revenue from Platforms Served Adj. EBITDA Proprietary Products

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![LOGO](g81728g89h01.jpg)

Our custom components are developed through engineer-to-engineer collaboration with our customers, working hand-in-hand to develop cutting-edge products for extreme operating environments. FY2025 Revenue Mix Commercial Aerospace 23% By End Market Defense and Space 47% Industrial Technology 30% Other 76% By Platform Top 10 24% By Customer Top 10 36% Other 64%

Our custom components are developed through engineer-to-engineer collaboration with our customers, working hand-in-hand to develop cutting-edge products for extreme operating environments. FY2025 Revenue Mix Industrial Defense & Other Top 10 Technology Space 76% 24% 31% 47% By End By Market Platform Top 10 36% Commercial Aerospace By 22% Customer Other 64%

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##### [**Table of Contents**](#toc)
**TABLE OF CONTENTS** 

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| | |
|:---|:---|
|  [Prospectus Summary](#tx81728_1) | 1 |
|  [Risk Factors](#tx81728_2) | 25 |
|  [Cautionary Statement Regarding Forward-Looking Statements](#tx81728_3) | 58 |
|  [Use of Proceeds](#tx81728_4) | 59 |
|  [Dividend Policy](#tx81728_5) | 60 |
|  [Capitalization](#tx81728_6) | 61 |
|  [Dilution](#tx81728_7) | 62 |
|  [Management's Discussion and Analysis of Financial Condition and Results of Operations](#tx81728_8) | 64 |
|  [Unaudited Pro Forma Combined Financial Information](#tx81728_8a) | 101 |
|  [Business](#tx81728_9) | 110 |
|  [Management](#tx81728_10) | 127 |
|  [Executive and Director Compensation](#tx81728_11) | 132 |
|  [Certain Relationships and Related-Party Transactions](#tx81728_12) | 140 |
|  [Principal Stockholders](#tx81728_13) | 146 |
|  [Description of Capital Stock](#tx81728_14) | 147 |
|  [Material U.S. Federal Tax Considerations for Non-U.S. Holders](#tx81728_15) | 156 |
|  [Shares Eligible for Future Sale](#tx81728_16) | 159 |
|  [Underwriting](#tx81728_17) | 161 |
|  [Legal Matters](#tx81728_18) | 171 |
|  [Experts](#tx81728_19) | 171 |
|  [Change in Independent Registered Public Accounting Firm](#tx81728_19a) | 172 |
|  [Where You Can Find More Information](#tx81728_20) | 173 |
|  [Index to Financial Statements](#tx81728_21) | F-1 |

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In connection with this offering, we intend to effect the Reorganization (as defined below). In this prospectus, unless otherwise indicated or the context otherwise requires, "Arxis," the "Company," "we," "us" and similar terms refer to Arxis, Inc. and its consolidated subsidiaries, inclusive of the Arxis Businesses.

We and the underwriters have not authorized anyone to provide any information or to make any representations other than those contained in this prospectus or in any free writing prospectuses we have prepared. We and the underwriters take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may provide you.

We are offering to sell, and seeking offers to buy, shares of Class A common stock only in jurisdictions where offers and sales are permitted.

The information contained in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or any sale of any securities. Our business, financial condition, results of operations and prospects may have changed since the date of this prospectus.

**Until , 2026 (25 days after the date of this prospectus), all dealers that buy, sell or trade our Class A common stock, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.** 

**Basis of Presentation of Financial Information** 

Prior to the Reorganization, Arxis, Inc. will have no material assets or operations.

i

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***The Businesses of Arxis***

This prospectus includes the historical combined financial statements of the Arxis Businesses (the "Arxis Combined Financial Statements") as of December 31, 2025 and 2024 and for the years ended December 31, 2025, 2024 and 2023 prepared in conformity with generally accepted accounting principles in the United States ("GAAP"). The Arxis Combined Financial Statements have been prepared to reflect the combination of Arcline Engineered Polymer Topco L.P. ("IPS") and Hawkeye TopCo L.P. ("Quantic") and, from and after the contribution of the equity interests of Arcline Engineered Polymer Topco L.P., Hawkeye TopCo L.P., Connector TopCo, L.P. ("Connector" or "Qnnect") and Ovation TopCo, L.P. ("Ovation") to a newly-formed limited partnership series-entity (the "Arxis Businesses Transaction") that occurred on September 30, 2024, Connector and Ovation (collectively, the "Arxis Businesses" or the "Pre-IPO Entities") using the financial statements of such Arxis Businesses as they were historically managed and operated. However, the Arxis Combined Financial Statements may not be indicative of the combined financial position, results of operations and cash flows of Arxis, Inc. in the future (including following the Reorganization and this offering) or if the Arxis Businesses had been managed and operated as one consolidated entity. For additional information, see "Note 1. Organization and Nature of Operations" to the Arxis Combined Financial Statements included elsewhere in this prospectus. In accordance with Rule 405 of Regulation C, each of IPS, Quantic and Connector is a predecessor to Arxis, Inc.

***Connector***

This prospectus includes Connector's historical consolidated financial statements for the period from January 1, 2024 through September 29, 2024 and for the year ended December 31, 2023 prepared in conformity with GAAP. In accordance with Rule 405 of Regulation C, Connector is a predecessor to Arxis, Inc.

***Unaudited Pro Forma and Supplemental Pro Forma Financial Information***

This prospectus includes unaudited supplemental pro forma financial information for the year ended December 31, 2024 that has been prepared in a manner comparable to the requirements of Article 11 of Regulation S-X but does not comply with Article 11 in that Rule 11-02(c) does not allow for the presentation of pro forma financial information prior to the most recent fiscal year. Such unaudited supplemental pro forma financial information has been prepared based on our historical results of operations derived from the Arxis Combined Financial Statements included in this prospectus adjusted to give pro forma effect to the transactions as set forth under "Management's Discussion and Analysis of Financial Condition and Results of Operations—Unaudited Supplemental Pro Forma Information." See the notes to the unaudited supplemental pro forma financial information in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Unaudited Supplemental Pro Forma Information."

This prospectus also further includes unaudited pro forma financial information for the year ended December 31, 2025 that has been prepared in compliance with Article 11 of Regulation S-X. Such unaudited pro forma financial information has been prepared based on our historical results of operations derived from the Arxis Combined Financial Statements included in this prospectus adjusted to give pro forma effect to the transactions as set forth under "Unaudited Pro Forma Combined Financial Information." See the notes to the unaudited pro forma financial information in "Unaudited Pro Forma Combined Financial Information."

The unaudited pro forma financial information and unaudited supplemental pro forma financial information is presented for illustrative purposes only and may not be indicative of the combined financial statements of Arxis, Inc. in the future (including following the Reorganization and this offering) or if the Arxis Businesses had been managed and operated as one consolidated entity or if the other adjustments described therein, including the Reorganization transactions or this offering, had been consummated on the dates as described. Our independent registered public accounting firm has not audited or reviewed such unaudited pro forma or unaudited supplemental pro forma financial information and does not express any opinion thereon.

ii

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**Trademarks** 

We own various trademark registrations and applications, and unregistered trademarks. All other trade names, trademarks and service marks of other companies appearing in this prospectus are the property of their respective owners. Solely for convenience, the trademarks and trade names in this prospectus may be referred to without the <sup>®</sup> and <sup>™</sup> symbols, but such references should not be construed as any indicator that their respective owners will not assert, to the fullest extent under applicable law, their rights thereto. We do not intend to use or display other companies' trademarks and trade names to imply a relationship with, or endorsement or sponsorship of us by, any other companies.

**Market and Industry Data** 

This prospectus includes industry and market data that we obtained from periodic industry publications, third-party studies and surveys, filings of public companies and internal company surveys. These sources include government and industry sources. Industry publications and surveys generally state that the information contained therein has been obtained from sources believed to be reliable. Although we believe the industry and market data to be reliable as of the date of this prospectus, this information could prove to be inaccurate. Industry and market data could be wrong because of the method by which sources obtained their data and because information cannot always be verified with complete certainty due to the limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties. In addition, we do not know all of the assumptions regarding general economic conditions or growth that were used in preparing the forecasts from the sources relied upon or cited herein.

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**PROSPECTUS SUMMARY** 

*This summary highlights selected information that is presented in greater detail elsewhere in this prospectus. This summary does not contain all of the information that you should consider before deciding to invest in our Class A common stock. You should read this entire prospectus carefully, including the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the Arxis Combined Financial Statements, including the notes thereto, included elsewhere in this prospectus, before deciding whether to purchase our Class A common stock.* 

**Overview** 

We are a leading designer and manufacturer of proprietary, mission-critical electronic and mechanical components engineered for cutting-edge performance in extreme environments. Leveraging significant intellectual property ("IP") and world-class engineering capabilities, we design and deliver innovative solutions that address some of our customers' most complex performance needs.

Arxis is the result of a deliberate and disciplined strategy executed by our sponsor, Arcline, and the Arxis management team to create a purpose-built, cohesive business through targeted acquisitions with similar product and end market characteristics. Since 2019, we have acquired and integrated over 30 complementary companies, each meticulously selected for its strategic alignment with our business model and IP-led, designed-in component portfolios. We set out to build the leading supplier of high-reliability, highly engineered components providing mission critical functionality to defense and space systems, commercial aerospace platforms, life-saving medical devices and advanced industrial technologies. Our strategy was to create a differentiated platform – one that did not previously exist in the market – by unifying a set of specialized businesses into a single, integrated solutions provider.

Our heritage lies in the aerospace and defense markets, where we have spent decades establishing embedded positions across hundreds of national security, space and commercial aerospace platforms. We also serve customers across similarly demanding and attractive end markets, including medical technology, high-end semiconductor testing, analytical devices, industrial automation and other specialized industrial sectors, which have unique performance requirements and resilient, long-term growth tailwinds. Our core products include electronic components such as connectors, cable assemblies, microelectronic packaging, radio frequency ("RF") and microwave products, power products and sensors and mechanical components such as precision and self-lubricating bearings, seals, springs, gaskets and radar absorbing materials. We go to market through 47 customer-facing brands that we believe are synonymous with engineering excellence, quality execution and trusted partnership.

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At our core, we are a business of engineers. Our custom, IP-rich components are developed through engineer-to-engineer collaboration with our customers, and we believe our products set the industry standard for highly engineered solutions designed to operate dependably in high-cost-of-failure applications. Our product portfolio is built upon 67 foundational proprietary technologies from which we have developed thousands of unique products that are designed into more than 600 leading platforms. Given the extensibility of our foundational proprietary technologies, we are able to serve a diverse mix of blue-chip customers including major aerospace and defense original equipment manufacturers ("OEMs") and Tier 1 and Tier 2 suppliers, and leading OEMs and their suppliers in other high-value sectors. A selection of our product set and the end market applications we serve are highlighted below:

![LOGO](g81728g48a01.jpg)

Our products are typically designed into our customers' current and next-generation platforms, many with large installed bases and multi-decade lifecycles. For the year ended December 31, 2025, approximately 90% of our revenue was generated from products that are uniquely designed, developed and produced by Arxis, often protected by patents, trade secrets or exclusive manufacturing processes. These factors contribute to our highly predictable, recurring and sticky revenue base (see "Risk Factors—Risks Related to Intellectual Property"). Although the products we provide are often critical to a platform's mission and functionality, they represent an extremely small portion of a platform's total cost: often less than 0.01%. We believe this outsized value-to-cost ratio, combined with the significant investment in time and resources required by our customers to design in a competing product, creates a high barrier to switching from our products.

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Our world-class technical team of more than 500 multidisciplinary engineers and more than 500 technical sales representatives are product experts that work hand-in-hand with our customers' engineers to develop cutting-edge products for extreme operating environments. For example, our Kryoflex Connector was developed to address our customers' need for a connector capable of withstanding high-temperature and high-pressure harsh environments, and we developed our Bal Conn Platinum Iridium Electrical Contacts to address our customers' need for a high-performing electrical contact that can survive for over 15 years in the human body. This collaborative approach to developing proprietary products addressing cutting-edge performance requirements is the foundation of Arxis' decades-long close customer relationships. Examples of extreme operating environments in which our products are designed to perform include:

![LOGO](g81728g04h27.jpg)

Our recurring revenue profile is underpinned by our "layer cake" business model, where each "layer" of the "cake" represents a unique part, customer and platform combination. The Arxis revenue "layer cake" includes more than 11,000 "layers" that our business units have won over decades. Our engineers and technical salesforce continue to drive volume growth with the addition of new "layers" through the development of custom products for mission-critical applications on new and existing platforms, working alongside our customers sometimes years prior to initial platform launch to solve challenging engineering problems. These products are often designed into platforms that can remain in production for over 20 years. Post-production, these platforms can remain in service for over 40 years in some cases, which creates additional aftermarket revenue opportunities as platforms go through technology modernization cycles and as parts wear out. This combination of build-rate driven growth and aftermarket demand has created a highly recurring and growing revenue base with what we believe is a unique degree of visibility. An illustration of our "layer cake" revenue model is included below, highlighting how "layers" of yearly new business wins compound on top of a stable revenue base from existing platform revenue:

![LOGO](g81728g10z01.jpg)

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Engineered to underpin our unique business model, our proprietary business system – Arxis EDGE (Empower Data-Driven Growth and Execution) – is the foundation of our sustained significant revenue growth and drives daily execution. Arxis EDGE leverages real-time analytics, insights and communication across the organization to enhance individual decision-making processes, drive team-based selling and accountability, increase cross-selling opportunities across our business units and support our commercial strategy. The Arxis EDGE business system aligns incentives across our engineers, technical salespeople and product managers who regularly form teams to identify, cultivate and book new business, adding new "layers" to our "cake" and fueling profitable growth. Included below is an illustration of how the Arxis EDGE business system uses real-time analytics to accelerate growth:

![LOGO](g81728g00z51.jpg)

We operate our business through a decentralized organizational structure that enables significant growth and efficient and agile operations across our scaled organization of approximately 5,750 employees as of December 31, 2025. This structure prioritizes local autonomy at the business unit level while Arxis EDGE aligns interests and incentivizes collaboration across the entire organization (see "Risk Factors—Risks Related to Our Operations—We have a decentralized organizational structure, under which our business units operate with significant autonomy."). Reporting to our two segment Presidents are 16 "block" Vice Presidents, each of whom manage a group of customer-facing business units. Each of our 46 business units specialize in a product category and is empowered to make decisions to rapidly respond to customer needs, while also having clear goals and structural accountability to drive consistent and predictable performance.

Our segment and block leaders are empowered to identify and evaluate acquisitions that complement Arxis business units, enabling us to pursue multiple add-on opportunities simultaneously without diverting attention from ongoing operations. By targeting adjacent product categories with common business model characteristics, we are able to implement our repeatable value creation playbook to drive incremental growth. After acquisitions close, acquired companies are rapidly immersed in Arxis EDGE, a fundamental part of our integration playbook, enabling us to quickly identify and optimize commercial opportunities to grow revenue and EBITDA and thus drive significant returns. We operate in a large and highly fragmented market, which we believe provides ample accretive acquisition opportunities to accelerate our organic growth strategy, although there can be no assurance that we will be successful in identifying, executing and integrating such acquisitions.

Our business model and decades-long track record of product excellence have translated into long-standing relationships with over 5,000 global customers and embedded positions on over 600 platforms. Given the mission-critical nature of our products, our customers look for highly reliable suppliers they can trust to continually deliver high-quality products on time with a near-zero defect rate. Our ability to meet and often exceed our customers' specifications and expectations, leveraging our comprehensive library of IP and technical know-how, is demonstrated by our decades-long customer relationships and strong customer retention. We believe our differentiated foundational proprietary technologies, track record of addressing complex customer challenges and decentralized operating structure unified through Arxis EDGE create a durable competitive advantage that positions Arxis as a critical long-term partner for our customers.

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We operate in two reportable segments: Electronic Components (approximately 44% of our revenue for the year ended December 31, 2025) and Mechanical Components (approximately 56% of our revenue for the year ended December 31, 2025). Both segments focus on proprietary, mission-critical, engineered components with outsized value-to-cost ratios, benefit from the same secular growth trends and share a decentralized operating structure unified by Arxis EDGE. The segments are distinct in terms of the product categories they offer: Our Electronic Components segment provides specialized, highly engineered electronic components and interconnect solutions, including connectors, cable assemblies, microelectronic packaging, RF and microwave products, power products, sensors, capacitors and resistors. Our Mechanical Components segment provides precision and self-lubricating bearings, seals, springs, gaskets and ducting, and radar absorbing materials.

Our business is highly diversified across end markets, customers and platforms. While we primarily serve the broader aerospace and defense industries, we also have a significant presence across medical technology and other specialized industrials end markets. For the year ended December 31, 2025, our top ten customers together accounted for only 36% of our revenue, with no single customer representing more than 7%. Similarly, for the year ended December 31, 2025, our top ten platforms accounted for 24% of our revenue, with no platform representing more than 7%. Below is a breakdown of our revenue for the year ended December 31, 2025:

![LOGO](g81728g00z52.jpg)

We operate 72 highly specialized manufacturing facilities globally, including 55 U.S. locations strategically located to serve our domestic customers. Our manufacturing footprint includes production sites certified for International Traffic in Arms Regulations ("ITAR") compliance. Our manufacturing processes are highly scalable with capacity to support our expected growth.

Our financial performance reflects the strength and resilience of our business model. We generated revenue of $1,591.0 million for the year ended December 31, 2025, which represents a 10.5% revenue compound annual growth rate ("CAGR") from the year ended December 31, 2021, calculated based on pro forma revenue from 2021 to 2025, while generating net income of $46.0 million for the year ended December 31, 2025, and a net loss of $55.5 million and $59.9 million for the years ended December 31, 2024 and 2023, respectively. The success of our business model is further evidenced by a net income margin of 2.9% and an Adjusted EBITDA margin of 35.9% for the year ended December 31, 2025, representing margin expansion of 1,036 basis points and 307 basis points, respectively, relative to the year ended December 31, 2024. Our capital requirements remain modest relative to our revenue: for the past five years, capital expenditures have always been lower than 3.3% of our revenue, enabling us to sustain high returns on invested capital and maintain flexibility in capital allocation.

**Our Industries** 

Our products are used in mission-critical applications across the aerospace and defense, medical technology and specialized industrial industries. With approximately 47% of our revenue for the year ended December 31, 2025 generated from Defense and Space programs, we expect to benefit from sustained demand driven by

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heightened national security priorities, evolving geopolitical dynamics and ongoing technology modernization cycles. In addition, approximately 23% of our revenue was derived from Commercial Aerospace markets, where we believe we are well positioned to benefit from increasing global air traffic and higher aircraft production and delivery rates. The medical technology and specialized industrial sectors we serve are also underpinned by secular growth drivers, including growth in minimally invasive and robotic surgeries, increasing demand for high-performance computing and advanced processing capabilities and greater complexity in industrial automation and robotics. The following diagram summarizes the primary drivers of our growing end markets:

![LOGO](g81728g00z53.jpg)

1. Based on 2025 revenue

2. Based on management estimates

***Defense and Space***

Defense and Space represents Arxis' largest end market, accounting for approximately 47% of our revenue for the year ended December 31, 2025. This sector benefits from strong tailwinds, including increasing global defense budgets, more frequent modernization programs and the need for advanced technologies to counter near-peer threats. Ongoing global conflicts, coupled with the potential for future conflicts, have accelerated global defense investments. In the U.S., there is bipartisan support for robust defense spending: The Center for American Progress projects that the U.S. Department of War ("DoW"), also known as the Department of Defense, annual budget will reach $1 trillion by the fiscal year ended September 30, 2026, a substantial increase from approximately $780 billion in fiscal year 2022, driven by multi-theater conflicts and a more advanced and complex threat environment. The current administration is prioritizing investment in high-tech platforms including those already supported by Arxis (e.g., F-35 Joint Strike Fighter, DDG-51 destroyers, Virginia-class submarines and Next-Generation Overhead Persistent Infrared satellites).

The current administration is also prioritizing modernization, resilience and technological superiority, especially in response to rising geopolitical tensions and the need for space control and homeland defense. Recent increases in the DoW's Research, Development, Test & Evaluation ("RDT&E") budget reflect a growing emphasis on next-generation capabilities and strategic deterrence. For fiscal year 2025, the DoW requested an RDT&E budget of approximately $143 billion, which represents an increase of approximately $37 billion compared to fiscal year 2020 levels. The fiscal year 2026 budget request marks a further step up, with the DoW

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targeting a $36 billion increase, bringing the total RDT&E budget to $179 billion. These increases align with broader strategic themes in defense and space technology, including connected warfighters, C5ISR integration, nuclear deterrence, resilient missile tracking and defeat systems and hypersonic weapons. Arxis directly supports key initiatives across these priorities, including supplying mission-critical components for resilient missile tracking systems such as the SPY-6 radar, positioning the Company for continued growth in the defense and space sector.

Defense budgets have risen across every major region in recent years, with significant increases in Europe and Asia-Pacific. In Europe, defense spending by North Atlantic Treaty Organization ("NATO") members increased from approximately $236 billion in 2015 to approximately $484 billion in 2024, and growth is expected to continue as the continent undergoes a sustained, broad-based rearmament. Since 2021, the number of NATO countries meeting the 2% GDP defense spending target has tripled, with eighteen countries' expenditures targeted to meet the goal in 2024, on their way to their collective commitment to spend 5% of GDP on defense and security by 2035. Asia-Pacific defense expenditures rose from approximately $234 billion to more than $315 billion over the same period, led by India, Japan and South Korea (and excluding China and North Korea). This shift underscores a global commitment to readiness and deterrence, reinforcing our strategic positioning as a supplier of mission-critical components across allied defense ecosystems.

***Commercial Aerospace***

The commercial aerospace end market, within which we include business aviation, is a key growth sector for Arxis, representing approximately 23% of our revenue for the year ended December 31, 2025, with growth supported by rising global air traffic and steadily increasing aircraft production and deliveries.

Commercial Air Transport: The commercial aerospace sector has shown consistent long-term growth trends over the past 75 years, spurred by growing travel demand linked to the development of a global world economy. The industry's growth rate has historically outpaced global GDP growth, with revenue passenger kilometers ("RPKs") increasing at approximately 2.0x global GDP growth between 2000 and 2024 according to data published by the International Air Transport Association (the "IATA"), reflecting an approximate 6% CAGR.

Global aircraft deliveries for Boeing and Airbus are expected to increase approximately 74% from 2024 to 2028 according to IATA, with near-record order books projected to double the global commercial fleet by 2042. We believe this growth will be fueled by rising passenger demand and the expansion of the middle class worldwide. Additionally, the delayed ramp up of the 737 MAX platform has driven extended lifespans of older aircraft, requiring additional maintenance cycles and greater aftermarket demand for parts. Many of the commercial platforms we serve are converted to freighter aircraft at the end of their passenger-carrying life, extending their useful life by 15-20 years and increasing the need for aftermarket components. Arxis supplies critical components, including bearings, seals and interconnect solutions into all major commercial aerospace platforms (e.g., Boeing 737, Airbus A320), as well as into major engine platforms (e.g., LEAP, PW1000G, PT6, PW4000 & CFM56).

Commercial aerospace OEM revenue historically has been tied to new aircraft production, which is currently supported by the production ramp of several next-generation narrowbody aircraft platforms (e.g., Boeing 737 MAX and Airbus A320neo family of aircraft). These programs are benefiting from substantial order backlogs driven by growing demand for air travel. In 2024, there were approximately 27,150 commercial aircraft in service compared to approximately 19,410 in 2010 and The Boeing Company's ("Boeing") 2025 commercial market outlook projects that future demand will require approximately 49,640 commercial aircraft in service by 2044. To reach this scale of an in-service fleet, approximately 43,600 new aircraft will need to be manufactured, with roughly half serving as replacements for the current fleet due to historically low retirement rates and the aging profile of existing aircraft. Arxis' embedded positions on these long-lived commercial aircraft platforms provides a stable and growing revenue base for the Company.

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Business Jet and Other: Growth in the business jet sector is driven by rising global wealth, sustained demand for premium travel experiences and the introduction of next-generation aircraft. We believe we are well positioned to capitalize on this growth through supporting leading platforms like the Gulfstream G650, G700 and G800. Arxis' components – such as track roller bearings and engine fire seals – are engineered to meet the unique performance demands of these jets, including extended flight ranges and high-altitude heat ducting. We also benefit from exposure to commercial rotorcraft platforms, where steady fleet utilization and recurring maintenance needs provide durable, multi-year revenue visibility.

***Industrial Technology***

The Industrial Technology end market accounted for approximately 30% of our revenue for the year ended December 31, 2025 and primarily consists of Medical Technology and Specialized Industrials markets.

Medical Technology: This end market provides attractive exposure to a high-growth sector of the global healthcare industry. Broadly, the medical technology industry has transitioned its emphasis from open procedures towards minimally invasive procedures enabled by specialized technology. These innovative procedures are intended to result in shorter recovery times, fewer complications and lower total cost of care, which has attracted billions of research and development dollars from medical technology OEMs fueling rapid technological advancements in robotic surgery and interventional and minimally invasive devices. Arxis' components enable the functionality of many of these medical devices, and we believe we are well positioned to benefit from growth driven by their global adoption and an expansion of their use cases.

Specialized Industrials: This end market includes diverse, high-growth applications including high-end semiconductor testing, analytical devices, industrial automation and other specialized industrial applications. Key growth drivers in this market include the proliferation of high-performance computing, advanced processing capabilities, cloud computing, electrification and component density, all of which fuels an unprecedented need for next-generation chips and more robust requirements for advanced testing. Industrial process applications continue to benefit from investment in automation and robotics while industrial operators exhibit a pressing need for performance data collected through an ever-increasing array of sensors and connected equipment. Among a wide variety of use cases, our components provide ultra-precise motion, thermal control and signal integrity to facilitate superb, reliable performance at extremely small scales and under demanding physical conditions.

**Our Competitive Strengths** 

Our leading position as a premier, trusted supplier of highly engineered components is underpinned by our highly differentiated capabilities, business model and portfolio composition. Although we face significant competition in our industries, we believe these strengths create a defensible market position and will enable us to profitably grow and drive our continued success. See "Business—Competitive Environment."

***Premier Supplier of Proprietary, Highly Engineered Components Enabling Cutting-Edge Performance in Extreme Environments***

We are a trusted supplier of custom, proprietary, highly engineered components enabling cutting-edge performance in extreme environments. Our engineering excellence and extensive foundational proprietary technologies serve as the backbone of our competitive advantage. Customers choose Arxis because we provide custom solutions to their most complex design challenges and performance requirements. Our products' exceptional functional performance enables us to both win new platform positions and protect our leading market position over time.

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Our IP, in-house research and development capabilities and engineering expertise represent decades of knowledge and investment that we believe differentiates us from our competitors. Due to the stringent regulatory, certification and technical requirements across our core end markets, the qualification process for new products is rigorous and costly. These steep costs and extensive lead times drive significant barriers to switching suppliers, resulting in strong incumbency positions on existing platforms.

***Engineer-Led Commercial Model Driving Deep Customer Intimacy Early in the Design Process***

Through our engineer-to-engineer commercial model, our teams become directly embedded with our customers in the initial stages of product development, allowing us to develop future revenue streams and build our "layer cake." Our close engagement establishes us on each platform, deepens customer intimacy, enables sole provider status and provides an opportunity to expand content as customer requirements evolve. We remain in constant dialogue with new and existing customers to support new business opportunities. By leveraging Arxis EDGE, we are able to unlock new wins methodically through proactive team-based selling, focusing on the highest-value opportunities and motivating cross-selling across business units, customers and platforms.

***Designed-in Positions Provide Multi-Decade Visibility and Stability***

We are typically the sole provider of our products, which are designed-in for the life of the platforms they serve, creating long-term embedded positions across defense, commercial aerospace, medical technology and specialized industrial markets. The high cost of switching suppliers, combined with the IP-rich nature of our designs and their proven reliability, makes replacement often highly impractical for customers once our components are qualified and integrated.

This designed-in status provides exceptional revenue visibility and stability, with the majority of our installed base tied to platforms that have operational lives exceeding 40 years. These platforms are supported by well-defined refresh and technological upgrade cycles, ensuring that we remain a trusted supplier throughout a platform's lifecycle. We provide support across the full platform lifecycle – enhancing performance, extending platform life and enabling adoption of next-generation technologies – which positions us for long-term growth and resilience in evolving markets.

***Highly Diversified Customer and Platform Base in High-Barrier-to-Entry Markets***

We operate in high-barrier-to-entry markets where performance, reliability and trust are paramount. We have strategically built a diversified business designed to ensure there is no single point of failure and to enhance resilience across market cycles. Our diverse exposure across customers, platforms and products also broadens our opportunity set and creates actionable cross-selling opportunities across our portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Customers</u>: We are a trusted supplier to over 5,000 customers. For the year ended December 31, 2025,
our top 10 customers comprised only 36% of revenue, with no customer comprising more than 7% of our revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Platforms</u>: We are positioned on over 600 premier current and next-generation platforms with the top 10
platforms comprising only 24% of revenue and with no platform comprising more than 7% of our revenue for the year ended December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>End Markets</u>: For the year ended December 31, 2025, approximately 47% of our revenue was derived from
Defense and Space markets and approximately 23% from Commercial Aerospace, with the remaining approximately 30% diversified across attractive, high-growth verticals including medical technology and other specialized industrials. Our diverse end
market mix enhances our total addressable market and provides stability through market cycles.

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***Arxis EDGE, Our Proprietary Data-Driven Business System, Empowers Performance and Accelerates Growth***

Our operations are built around a philosophy that encourages local autonomy across our business units and empowers our managers to act independently and with an entrepreneurial spirit. Our decentralized organization is unified through a proprietary business system called Arxis EDGE. This system empowers our proactive, team-based sales approach to drive new and attractive business onto our platform. Arxis EDGE aligns engineers, technical sales teams and product managers to function as a cohesive unit, proactively seeking out and cultivating new opportunities. The system aligns incentives across roles, ensuring that every team member is motivated to secure new business, fueling profitable growth for Arxis. We have a track record of successful cross-selling across business units, customers and platforms with significant runway ahead given the strength of Arxis EDGE and the unique diversity of our portfolio.

***Robust Financial Profile, Including Resilient Revenue Growth, Compelling Margins and Strong Free Cash Flow Generation***

We have consistently delivered strong revenue growth, achieving revenue growth and organic revenue growth of 114.1% and 8.9%, respectively, in the year ended December 31, 2025 and a long-term revenue CAGR of 10.5%, calculated based on pro forma revenue from 2021 to 2025, while recognizing a net income margin and maintaining an attractive Adjusted EBITDA margin of 2.9% and 35.9%, respectively, for the year ended December 31, 2025. For the definition of organic revenue, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Components of Results of Operations." We also generate robust cash flow, with 546.2% and 454.0% of cash flows from operating activities conversion and free cash flow conversion, respectively, for the year ended December 31, 2025. A significant portion of our revenue is anchored to long-duration platforms, many of which will be in production for over 20 years and in service for decades longer, providing exceptional revenue visibility and stability. Our organic growth algorithm – which is foundational to our commercial approach and financial profile – focuses on volume increases, strategically expanding price and efficiently managing costs. We maintain a culture of operational excellence across our organization through implementation of lean processes to ensure we are continually improving.

***Proven, Disciplined and Scalable M&A Strategy***

We have a long-standing track record of executing and integrating both tuck-in and transformational acquisitions, with 32 acquisitions completed since 2019. Our disciplined M&A approach is rooted in a value creation playbook that emphasizes commercial synergies, cultural alignment and strategic fit with the goal of driving significant revenue and EBITDA growth in the acquired companies. Our repeatable integration playbook preserves the unique strengths of each acquired business while unifying performance standards. Each acquisition is also integrated into our Arxis EDGE business system, which drives attractive cross-selling opportunities and contributes to our sustained growth and long-term value creation.

Each acquisition is carefully selected to align with our core business model: IP-led companies with defensible, designed-in component portfolios serving enduring platforms. Our decentralized structure allows us to integrate new businesses without disrupting local autonomy, preserving the entrepreneurial spirit that drives performance across our organization. We maintain a high bar for strategic fit and near-term accretion, striving for every transaction to contribute meaningfully to our long-term growth and margin profile.

***Experienced Management Team with Track Record of Value Creation***

Our executive team brings decades of experience across the aerospace, defense, medical technology and specialized industrial sectors. We have a proven track record of driving growth, operational excellence and strategic transformation. Our culture emphasizes accountability, collaboration and empowerment, and aligns incentives towards value creation from the CEO through to our business units. Kevin Perhamus, our President

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and CEO, has led Arxis since its inception, having served as CEO of Arxis predecessors Quantic and Qnnect. He previously held pivotal leadership roles as CEO of Winchester Interconnect and spent a combined 17 years in roles at Teradyne and Amphenol (which acquired Teradyne's Connection Systems Division). Our other highly experienced senior management team members have, on average, more than 26 years of experience in executive and leadership positions at companies including TransDigm, GE Aerospace, Lockheed Martin and Kratos. Arxis' leadership team cultivates a culture of performance and strategic foresight that we believe positions the Company for continued success.

***Ongoing Relationship with and Support from Arcline***

Our ownership structure includes investment funds affiliated with Arcline as the sole beneficial owner of our Class B common stock. As our original founder, we expect Arcline and its principals and affiliates will remain our close partners and will continue to be long-term investors well beyond the completion of this offering. Since its founding in 2018, Arcline has developed a proven track record of building institutional compounders, having completed more than 160 acquisitions, through deep partnerships with management teams and a focus on sustainable value creation. Our multi-class share structure is designed to help preserve Arxis' strategic autonomy, long-term focus and ability to execute on our mission while simultaneously benefitting from Arcline's capabilities.

We view Arcline's continued partnership as a key strength that complements Arxis' established growth strategy. In addition to providing strategic support, Arcline contributes valuable insight to our M&A approach through its experience in sourcing, diligence and transaction execution. This partnership enhances our repeatable M&A playbook and supports our ability to sustain compounding growth. With Arcline's support and deep industry expertise, we believe we are uniquely positioned to deliver enduring value for all shareholders, while remaining agile, resilient and focused on our long-term mission.

**Our Growth Strategies** 

***Drive Significant Growth Through Our "Layer Cake" Business Model***

Our proprietary, mission-critical and highly engineered components are designed into a diverse set of blue-chip, multi-decade platforms, including every major commercial and military aircraft in operation today. This diverse platform exposure provides a stable, recurring revenue base with significant visibility from decades-long platform build rates and aftermarket upgrades and replacement cycles. Our significant volume growth is driven by our "layer cake" business model whereby new platform wins create new "layers" and generate sustainable growth as platform production growth rates ramp up to highly recurring build rates, undergo technology upgrade cycles and generate aftermarket replacement demand. Our engineers and technical salesforce are constantly developing new "layers" by working with customers to solve some of their most challenging engineering problems and capturing positions on new platforms with decades-long lifecycles.

Strategic pricing represents an additional lever we employ to support our growth objectives. We compete based on exceptional functional performance, which we aim to deliver across end markets and platforms at an outsized value-to-cost ratio. This role as a critical and value-added partner allows us to exercise commercial discipline when not only pursuing new business but also when delivering on long-term revenue streams. Our adaptable commercial approach allows us to adjust pricing as platform needs evolve, aligning with our customers' priorities while supporting stable and sustainable growth. Our proprietary Arxis EDGE business system uses real-time analytics across thousands of business units and brands and empowers us with the information we need to make real-time, informed commercial decisions.

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***Capitalize on Differentiated Engineering Capabilities to Capture Content on Next-Gen Platforms***

We believe our hard-earned reputation for delivering best-in-class, highly engineered solutions to our customers is a key differentiator in our ability to continue to win content on new, high-growth platforms. As aerospace, defense and advanced industrial systems continue to evolve, platforms are becoming increasingly sophisticated and performance-driven, requiring specialized components capable of operating reliably in demanding environments. As one example, the modern battlefield is becoming heavily infused with autonomous systems, AI-powered platforms, cutting-edge sensors and robust communications – each demanding highly specialized components capable of operating reliably under extreme conditions.

We believe Arxis is uniquely positioned to support these evolving requirements through our platform-agnostic solutions, which provide critical functionality across a wide spectrum of high-end applications. Our specialized capabilities enable us to capture both electronic and mechanical product content on next-generation systems, delivering reliable, high-performance solutions that meet the demands of increasingly integrated and mission-critical environments.

***Deploy a Systematic Approach to New Wins and Cross-Selling Through Arxis EDGE***

We believe our decentralized business unit structure enables our scaled organization to act with a high degree of efficiency and agility as business unit leaders are empowered to independently make decisions to respond to customer needs. This structure prioritizes local autonomy at the business unit level while our proprietary Arxis EDGE business system aligns interests and incentivizes collaboration across the entire organization. Arxis EDGE leverages real-time data and analytics to drive new business and accelerate growth. Our unique team-based sales approach systematically incentivizes our technical commercial organization from across business units to prioritize the highest value opportunities, ensuring resources are concentrated where value creation is greatest. More than 450 of our employees, including engineers and technical salespeople, are eligible to receive incentive compensation based on new business wins. This model drives significant growth through disciplined cross-selling across segments, business units, platforms and customers. By deploying Arxis EDGE, we have seen a rapid increase in cross-selling opportunities across our business units with over 2,000 opportunities in our pipeline as of June 8, 2025, an increase from approximately 50 in 2021. The embedded positions we have on our customers' critical platforms create a strong foundation for content expansion, enabling us to "land and expand" with specific customers and platforms. For example, we first introduced advanced bearing designs utilizing Kamatics' proprietary KAron self-lubricating machinable liners through innovative track roller applications on the Gulfstream G650 in 2008. Due to the strong performance of the KAron self-lubricating track rollers, Gulfstream extended their use to additional interfaces and implemented advanced self-lubricating configurations on five additional aircraft models between 2008 and 2025. This expansion drove approximately a 965x increase in our revenue from this product line and customer.

***Leverage Operational Excellence to Drive Margin Expansion and Cash Flow Improvements***

We focus on operational excellence, implementing lean initiatives that enhance efficiency, expand margins and strengthen cash flows. We are highly focused on driving consistency of execution across our global operations, ensuring best practices are embedded across the entire Arxis platform. As we scale, we apply proven practices across both legacy operations and new acquisitions to accelerate profitability. Our culture of continuous improvement and data-driven decision-making provides a durable foundation for sustained margin expansion. Cost management is one of the three core levers that drives our growth algorithm. Our dedication to operational rigor provides significant runway for additional Adjusted EBITDA margin and cash flow improvement.

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***Continue to Pursue Our Disciplined Approach to Accretive M&A***

Executing M&A is in our DNA and is a core tenet of our long-term growth strategy. We maintain a robust pipeline of more than 1,500 M&A opportunities focused on businesses with product offerings and business models consistent with our core playbook: IP-led companies with defensible, designed-in component portfolios serving enduring platforms. Our end markets are highly fragmented with many attractive opportunities for continued acquisitions. The following diagram summarizes our addressable M&A opportunities, as well as our current M&A pipeline:

![LOGO](g81728g55a01.jpg)

Based on Management Estimates

Notably, of our 32 completed acquisitions to date, 84% have been sourced through proprietary efforts or limited processes. We follow a well-defined, proven integration playbook that is light touch and has historically resulted in strong, quantifiable value creation. Arxis EDGE has played a fundamental role in our successful M&A execution, enabling disciplined execution across the full M&A lifecycle, from sourcing and evaluation through integration, while allowing us to leverage our decentralized structure to minimize disruption, implement continuous improvement and accelerate cross-selling and commercial integration.

**About Our Sponsor** 

Founded in 2018, Arcline is a growth-oriented private equity firm with over $20 billion in assets under management. Arcline's strategy is to build institutional compounders – market-leading industrial platforms designed to compound earnings over decades through disciplined reinvestment and repeatable M&A.

The firm focuses on niche, technology-driven businesses operating in high-value sectors such as specialized sub-systems, test and measurement, critical infrastructure, and engineered components. Arcline partners closely with management teams to institutionalize compounding by building disciplined operating systems, codified processes, and a repeatable M&A and capital allocation algorithm.

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**Reorganization** 

Immediately prior to the completion of this offering, we intend to effect a reorganization, pursuant to which our wholly owned merger subsidiaries will merge with and into the Arxis Businesses, with the Arxis Businesses surviving. Thereafter, the Arxis Businesses will be wholly owned by us. As consideration for such mergers, we will issue (i) shares of Class A common stock and shares of Class B common stock to the holders of Class A units and vested MIUs, GPUs and VCBs of the Arxis Businesses, of which shares of Class A common stock will be withheld by us at the initial public offering price to satisfy such recipients' resulting tax remittance obligations that will be paid by us and (ii) restricted shares, or restricted units with respect to, Class A common stock to holders of unvested MIUs, GPUs and VCBs of the Arxis Businesses, which awards will be subject to forfeiture conditions, including . In addition, concurrently with such mergers, we will enter into the amended and restated advisory and consulting services agreement with Arcline Investment Management, L.P. (as described in "Certain Relationships and Related-Party Transactions"), pursuant to which we will issue one share of convertible common stock to Arcline Investment Management, L.P. Concurrently with the issuance of such share of convertible common stock, we will enter into the Tax Receivable Agreement (the "Tax Receivable Agreement") as described below under "—Tax Receivable Agreement." We refer to the transactions described in this paragraph, collectively, as the "Reorganization."

The foregoing information is based on an initial public offering price of $ per share of Class A common stock, which is the midpoint of the price range set forth on the cover page of this prospectus. To the extent that the actual initial public offering price differs from the midpoint of the price range set forth on the cover page of this prospectus, the actual number of shares of common stock to be issued in connection with the Reorganization will be adjusted accordingly. Set forth below is an illustration of the impact of changes to the initial public offering price:

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| | | |
|:---|:---|:---|
| **Initial Public Offering Price** | **Shares of Class A Common Stock(1)** | **Shares of Class B Common Stock** |
|  $ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(including restricted shares) |  |
|  $ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(including restricted shares) |  |
|  $ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(including restricted shares) |  |
|  $ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(including restricted shares) |  |
|  $ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(including restricted shares) |  |

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(1) This column gives effect to the withholding by us of shares of Class A common stock at the initial public
offering price to satisfy recipients' resulting tax remittance obligations.

Set forth below is our simplified organizational structure immediately following the completion of the offering, assuming no exercise by the underwriters of their option to purchase additional shares:

![LOGO](g81728g01a18.jpg)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Sanders Industrials Holdings, Inc. and its subsidiaries represents current subsidiaries of IPS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Quantic Electronics, LLC and its subsidiaries represents current subsidiaries of Quantic.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Kaman Corporation ("Kaman") and its subsidiaries represents current subsidiaries of Ovation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Qnnect LLC and its subsidiaries represents current subsidiaries of Connector.

In connection with the Reorganization, we have incurred, and expect to continue to incur, significant transaction costs. Although we believe that such costs and the combination of the Arxis Businesses under Arxis, Inc. will be value accretive, we may not realize the anticipated benefits from the Reorganization and this offering. See "Risk Factors—Risks Related to the Reorganization."

**Tax Receivable Agreement** 

In connection with the Reorganization, Arxis will enter into a Tax Receivable Agreement with Arcline Investment Management, L.P. whereby we will pay to Arcline Investment Management, L.P. 85% of the cash tax savings we realize with respect to the compensation deduction resulting from the transfer of the convertible common stock in respect of the services to be provided under the amended and restated advisory and consulting services agreement. Payments under the Tax Receivable Agreement may reduce cash that would otherwise be available for other uses and for the benefit of all stockholders. Actual tax benefits realized by Arxis may differ from tax benefits calculated under the Tax Receivable Agreement as a result of the use of certain assumptions in the Tax Receivable Agreement, including the use of an assumed weighted-average state and local income tax rate to calculate tax benefits. See "Certain Relationships and Related-Party Transactions." See also "Risk Factors—Risks Related to Our Class A Common Stock and This Offering" and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources."

**Summary Risk Factors** 

Our business and Class A common stock are subject to many risks, as more fully described in the "Risk Factors" section immediately following this "Prospectus Summary" section. These risks include, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our business is concentrated on the aerospace and defense industries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our growth could suffer if the markets into which we sell our products and services decline or do not grow as
anticipated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are subject to certain unique business risks as a result of supplying products to companies contracting with
the U.S. government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We face significant competition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our industry is subject to rapid change;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cost overruns could subject us to losses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our business depends on the availability and pricing of certain components and raw materials from suppliers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Inflation could adversely affect our results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our products may not operate as intended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have a decentralized organizational structure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our indebtedness and the restrictive covenants under the agreements governing our indebtedness could adversely
affect our financial condition;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We previously identified a material weakness in our internal control over financial reporting. If we experience
additional material weaknesses in the future or otherwise fail to develop and maintain effective internal control over financial reporting, our ability to produce timely and accurate financial statements may be adversely affected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are subject to extensive governmental regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our business may be adversely affected if we were to lose our government or industry approvals, if more stringent
government regulations were enacted or if industry oversight were to increase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Contracting in the defense industry is subject to significant regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Product liability lawsuits and product recalls could cause us to incur substantial liabilities and to limit the
commercial potential of our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may be unable to adequately obtain, maintain, protect and enforce our intellectual property and proprietary
rights on which our business depends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may be subject to claims for alleged infringement, misappropriation or other violation of others'
intellectual property and proprietary rights, and we may incur significant costs in our efforts to successfully avoid, manage, defend and litigate intellectual property matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may not realize the anticipated benefits from the Reorganization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have incurred, and expect to continue to incur, significant transaction costs in connection with the
Reorganization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We will incur significantly increased costs and devote substantial management time as a result of operating as a
public company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Sponsor will continue to have substantial control over us after this offering and could limit your ability to
influence the outcome of key transactions, including a change of control.

**Company and Corporate Information** 

Arxis, Inc. was formed as a Delaware corporation on October 3, 2025. Prior to the Reorganization, each of the Arxis Businesses were held directly by investment funds affiliated with our Sponsor. With respect to the Arxis Businesses, IPS was acquired by our Sponsor in July 2019, Quantic was formed by our Sponsor in January 2021 in connection with its acquisition of TRM Microwave, Qnnect was formed by our Sponsor in July 2022 in connection with its acquisition of Custom Interconnects LLC and Kaman was acquired by our Sponsor in April 2024.

Our principal executive office is located at 1332 Blue Hills Avenue, Bloomfield, CT 06002 and our telephone number is (860) 243-7100. Our website is *www.arxis.com.* The reference to our website is an inactive textual reference only and information contained therein or connected thereto is not incorporated into this prospectus or the registration statement of which it forms a part.

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**The Offering** 

Class A common stock offered by us shares (or shares if the underwriters exercise their option to purchase additional shares in full).

Option to purchase additional shares of Class A common stock We have granted the underwriters an option for a period of 30 days to purchase up to additional shares of Class A common stock to cover over-allotments.

Common stock to be outstanding immediately after this offering Class A common stock: shares (or shares if the underwriters exercise their option to purchase additional shares in full).

Class B common stock: shares.

Class C common stock: None.

Convertible common stock: One share.

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|:---|:---|
| Voting rights  | Upon completion of this offering, we will have four authorized series of common stock: Class A common stock, which is entitled to one vote per share on all matters on which our stockholders generally are entitled to vote; Class B common stock, which is entitled to twenty votes per share on all matters on which our stockholders generally are entitled to vote; Class C common stock, which is not entitled to vote on any matter on which our stockholders generally are entitled to vote, in each case, except as otherwise provided in our amended and restated certificate of incorporation or as required by applicable law, and convertible common stock, which will be entitled to vote as described in "Description of Capital Stock—Convertible Common Stock Issued to Arcline Investment Management, L.P." Holders of our common stock vote together as a single class on all matters on which our stockholders generally are entitled to vote, except as otherwise provided in our amended and restated certificate of incorporation or as required by applicable law. See "Description of Capital Stock—Common Stock—Voting Rights." |

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|:---|:---|
| Concentration of voting power  | Immediately following the completion of this offering, our Class B common stock and convertible common stock, which will be held solely by investment funds affiliated with our Sponsor, will represent % of the total voting power of our outstanding common stock (or % of the total voting power of our outstanding common stock if the underwriters exercise their option to purchase additional shares in full). As a result, we will be a "controlled company" under Nasdaq corporate governance standards and intend to rely on exemptions from certain corporate governance requirements. See "Management—Controlled Company Status." |

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|:---|:---|
| Conversion rights  | Our Class A common stock will not be convertible into any other securities. Our Class B common stock is convertible into Class A common stock on a one-for-one basis at the option of the holder and will automatically convert into Class A common stock on a one-for-one basis upon the earliest to occur of (i) any transfer (other  |

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than a permitted transfer described in our amended and restated certificate of incorporation) of such share of Class B common stock, (ii) such share of Class B common stock being held by a person other than a permitted transferee described in our amended and restated certificate of incorporation, (iii) the approval of such conversion by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class B common stock entitled to vote thereon, voting separately as a class and (iv) on the first business day after the date on which (x) outstanding shares of Class B common stock constitute less than 10% of the aggregate number of outstanding shares of common stock and (y) the Sponsor (and its permitted transferees) cease to beneficially own a number of shares of Class B common stock that is greater than or equal to 35% of the number of shares of Class B common stock issued or to be issued to the Sponsor or transferred or to be transferred to the Sponsor in respect of the shares of Class B common stock held by the Funds immediately after the initial closing of this offering. Our Class C common stock will automatically convert into Class A common stock on a one-for-one basis upon the earliest to occur of (i) the date on which no shares of Class B common stock are outstanding and (ii) the affirmative vote of the holders of a majority of the then-outstanding shares of Class B common stock entitled to vote thereon, voting separately as a class. See "Description of Capital Stock—Common Stock—Conversion, Exchange and Transferability." Our convertible common stock will be convertible into a number of shares of our Class B common stock (or Class A common stock if no Class B common stock is outstanding at the time of such conversion) representing the product of (i) 1.25% of the Company's fully diluted capital stock (including Class B or Class A common stock issuable upon such conversion) outstanding at the time of conversion multiplied by (ii) (A) two times (B) the value of one minus the quotient obtained by dividing (x) the initial public offering price per share in this offering (the "IPO Price") by (y) the stock price per Class A common stock at the time of conversion, subject to certain adjustments. The convertible common stock will be convertible at the holder's option from the fifth anniversary of the completion of this offering (, 2031) and until the tenth anniversary of the completion of this offering (, 2036); provided that prior to conversion, the price of our Class A common stock must equal at least two-times the IPO Price. The convertible common stock will also provide for, upon the occurrence of certain change of control events affecting the Company, an automatic conversion into Class B common stock (or Class A common stock if no Class B common stock is outstanding at the time of such conversion), provided that the change of control event occurs after the third anniversary of the completion of this offering and the consideration payable in the change of control event is at least two-times the IPO Price. See "Description of Capital Stock—Convertible Common Stock Issued to Arcline Investment Management, L.P." <br>

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|:---|:---|
| Limitations on stockholder action  | Special meetings of our stockholders may be called only by our board of directors, the chairperson of our board of directors, our Chief Executive Officer and the holders of a majority of the then-outstanding shares of Class B common stock. No other person has the power to call a special meeting.  |

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Prior to the date (if any) on which our Sponsor, the Funds (as defined below) and their respective permitted transferees cease to beneficially own shares of capital stock representing a majority of the total voting power of all outstanding shares of capital stock entitled to vote generally in the election of directors, any action required or permitted to be taken at any stockholders meeting may be taken by written consent without a meeting. However, following such date, any action required or permitted to be taken at any stockholders meeting may not be taken by written consent without a meeting.

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|:---|:---|
| Use of proceeds  | We estimate that the net proceeds to us from this offering will be approximately $ million (or approximately $ million if the underwriters exercise their option to purchase additional shares in full) assuming an initial public offering price of $ per share of Class A common stock, which is the midpoint of the price range set forth on the cover page of this prospectus, after deducting underwriting discounts and commissions and estimated offering and Reorganization expenses payable by us. |

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We intend to use approximately $ million of the net proceeds of this offering to repay borrowings under our revolving credit facility (the "Revolving Credit Facility") and our term loan credit facility (the "Term Loan Credit Facility," together with the Revolving Credit Facility, the "Credit Facilities") and use the remainder for working capital and other general corporate purposes. See "Use of Proceeds" for a more complete description of the intended use of proceeds from this offering.

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|:---|:---|
| Directed Share Program  | At our request, the underwriters have reserved up to shares of our Class A common stock, or 5% of the shares being offered pursuant to this prospectus, for sale at the initial public offering price to certain individuals and entities as determined by certain of our officers through a directed share program. The number of shares of our Class A common stock available for sale to the general public in this offering will be reduced to the extent these individuals and entities purchase such reserved shares. Any reserved shares that are not so purchased will be offered by the underwriters to the general public on the same basis as the other shares offered by this prospectus. See "Underwriting—Directed Share Program." |

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Risk factors See "Risk Factors" and the other information included in this prospectus for a discussion of factors you should consider before deciding to invest in our Class A common stock.

Convertible Common Stock In connection with the Reorganization, we will issue to Arcline Investment Management, L.P. one share of convertible common stock which is convertible into Class B common stock. See "Description of

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Capital Stock—Convertible Common Stock Issued to Arcline Investment Management, L.P."

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|:---|:---|
| Tax Receivable Agreement  | In connection with the Reorganization, Arxis will enter into a Tax Receivable Agreement with Arcline Investment Management, L.P. whereby we will pay to Arcline Investment Management, L.P. 85% of the cash tax savings we realize with respect to the compensation deduction resulting from the transfer of the convertible common stock in respect of the services to be provided under the amended and restated advisory and consulting services agreement. Payments under the Tax Receivable Agreement may reduce cash that would otherwise be available for other uses and for the benefit of all stockholders. See "Certain Relationships and Related-Party Transactions." See also "Risk Factors—Risks Related to Our Class A Common Stock and This Offering" and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources." |

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Proposed Nasdaq ticker symbol "ARXS"

The number of shares of Class A common stock, Class B common stock, Class C common stock and convertible common stock that will be outstanding after this offering is based on shares of Class A common stock, shares of Class B common stock, no shares of Class C common stock and one share of convertible common stock expected to be outstanding immediately prior to the completion of this offering (after giving effect to the Reorganization, which will occur immediately prior to the completion of this offering) and excludes shares of Class A common stock reserved for future issuance under the Arxis, Inc. Omnibus Incentive Plan, which will become effective in connection with this offering as well as any shares of Class B common stock reserved for conversion of the convertible common stock.

Unless otherwise indicated, all information contained in this prospectus assumes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the filing and effectiveness of our amended and restated certificate of incorporation, which will occur
immediately prior to the Reorganization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effectiveness of the Reorganization, which will occur immediately prior to the completion of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no exercise of the underwriters' option to purchase additional shares of Class A common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no conversion of convertible common stock, which is convertible into Class B common stock (or Class A common
stock if no shares of Class B common stock are outstanding at the time of such conversion);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an initial public offering price of $ per share of Class A common stock, which
is the midpoint of the price range set forth on the cover page of this prospectus. See "Prospectus Summary—Reorganization" for an illustration of the impact of changes to the initial public offering price on the number of shares to
be issued in the Reorganization.

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**Financial Information** 

The following summary combined and other financial information should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the Arxis Combined Financial Statements, including the notes thereto, included elsewhere in this prospectus. The summary historical combined financial information for the years ended December 31, 2025, 2024 and 2023 is derived from the Arxis Combined Financial Statements included elsewhere in this prospectus. The unaudited pro forma financial information for the year ended December 31, 2025 is derived from the unaudited pro forma financial information included elsewhere in this prospectus. See "Unaudited Pro Forma Combined Financial Information".

The unaudited supplemental pro forma financial information for the year ended December 31, 2024 is derived from the unaudited supplemental pro forma financial information included elsewhere in this prospectus. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Unaudited Supplemental Pro Forma Information."

The summary unaudited pro forma combined financial data of Arxis, Inc. presented below has been derived from our unaudited pro forma combined financial information included elsewhere in this prospectus. The summary unaudited pro forma combined statement of operations data for the year ended December 31, 2025 gives effect to the 2025 Acquisitions, Reorganization and the Offering as if they had occurred on January 1, 2025. The summary unaudited pro forma combined balance sheet data as of December 31, 2025 gives effect to the Reorganization and the Offering described under "Unaudited Pro Forma Combined Financial Information," including the sale by us of shares of Class A common stock in this offering at the initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, and the application of the proceeds therefrom as described in "Use of Proceeds" as if they had occurred on December 31, 2025.

The Arxis Combined Financial Statements, summary unaudited combined pro forma financial information, and unaudited supplemental pro forma financial information may not be indicative of our combined financial position, results of operations and cash flows in the future or if the Arxis Businesses had been managed and operated as one consolidated entity.

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|:---|:---|:---|:---|:---|:---|
|  | **Unaudited<br>Pro Forma<br>Arxis, Inc.** | **Historical** | **Historical** | **Historical** | **Unaudited<br>Supplemental<br>Pro Forma<br>Arxis<br>Combined** |
|  | **Year Ended<br>December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended<br>December 31,** |
|  | **2025** | **2025** | **2024** | **2023** | **2024** |
|  **Combined Statements of Operations Data:** |  |  |  |  |  |
| *(in thousands, except share and per share amounts)* |  |  |  |  |  |
|  Revenue | $1601074 | $1591020 | $742992 | $424495 | $1451405 |
|  Cost of revenue | 843015 | 836304 | 411853 | 230478 | 843944 |
|  Gross profit | 758059 | 754716 | 331139 | 194017 | 607461 |
|  Selling, general and administrative expenses | 341830 | 339081 | 156143 | 88227 | 368034 |
|  Amortization of intangible assets | 140629 | 138937 | 72405 | 51469 | 136927 |
|  Operating income | 275600 | 276698 | 102591 | 54321 | 102500 |
|  Interest expense, net | 220316 | 220316 | 161052 | 124496 | 285137 |
|  Other income, net | (5967) | (5932) | (5461) | (845) | (5555) |

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|:---|:---|:---|:---|:---|:---|
|  | **Unaudited<br>Pro Forma<br>Arxis, Inc.** | **Historical** | **Historical** | **Historical** | **Unaudited<br>Supplemental<br>Pro Forma<br>Arxis<br>Combined** |
|  | **Year Ended<br>December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended<br>December 31,** |
|  | **2025** | **2025** | **2024** | **2023** | **2024** |
| *(in thousands, except share and per share amounts)* |  |  |  |  |  |
|  Net income (loss) before income taxes | 61251 | 62314 | (53000) | (69330) | (177082) |
|  Income tax expense (benefit) | 15982 | 16325 | 2472 | (9412) | (1780) |
|  **Net income (loss)** | $**45269** | $**45989** | $**(55472)** | $**(59918)** | $**(175302)** |
|  Unaudited pro forma net earnings (loss) per share - basic<sup>(1)</sup> |  |  |  |  |  |
|  Unaudited pro forma net earnings (loss) per share - diluted<sup>(1)</sup> |  |  |  |  |  |
|  Pro forma shares used in computing pro forma net earnings (loss) per share - basic<sup>(1)</sup> |  |  |  |  |  |
|  Pro forma shares used in computing pro forma net earnings (loss) per share - diluted<sup>(1)</sup> |  |  |  |  |  |
|  **Other financial information:** |  |  |  |  |  |
| *(in thousands, except for percentages)* |  |  |  |  |  |
|  Net income (loss) | $45269 | $45989 | $(55472) | $(59918) | $(175302) |
|  Adjusted EBITDA<sup>(2)</sup> | $572208 | $571304 | $243999 | $125178 | $423365 |
|  Net income (loss) margin | 2.8% | 2.9% | (7.5)% | (14.1)% | (12.1)% |
|  Adjusted EBITDA Margin<sup>(2)</sup> | 35.7% | 35.9% | 32.8% | 29.5% | 29.2% |
|  Net cash provided by (used in) operating activities |  | $251196 | $70946 | $(7919) |  |
|  Free Cash Flow<sup>(3)</sup> |  | $208771 | $42057 | $(20421) |  |
|  Free Cash Flow Conversion<sup>(3)</sup> |  | 454.0% | 75.8% | NM |  |

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NM – Not Meaningful

(1) Pro forma net earnings (loss) per share gives effect to the Reorganization and this offering as though the
Reorganization and this offering had occurred on January 1, 2025 and assuming an initial public offering price of $ per share of Class A common stock, which is the midpoint of the price range set forth on the cover page
of this prospectus.

(2) To provide investors with additional information regarding our financial results, we have disclosed here and
elsewhere in this prospectus Adjusted EBITDA, a non-GAAP financial measure that we calculate as net income (loss), adjusted for: (i) interest expense, net; (ii) income tax expense (benefit);
(iii) depreciation and amortization; (iv) acquisition and integration costs; (v) restructuring costs; (vi) transaction and other deal related expenses; (vii) share-based compensation expense; (viii) refinancing costs; and (ix) other
non-recurring adjustments. In addition, we have disclosed here and elsewhere in this prospectus Adjusted EBITDA Margin, a non-GAAP financial measure that we calculate as Adjusted EBITDA divided by revenue. For
additional information regarding our use and the limitations of Adjusted EBITDA and Adjusted EBITDA Margin, see "Management's Discussion and Analysis of Financial Condition and Results

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of Operations—Non-GAAP Financial Information." The following table reconciles Net income (loss) to Adjusted EBITDA and Adjusted EBITDA Margin for the periods presented:

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|:---|:---|:---|:---|:---|:---|
|  | **Unaudited**<br>**Pro Forma**<br>**Arxis, Inc.** | **Historical** | **Historical** | **Historical** | **Unaudited<br>Supplemental<br>Pro Forma**<br>**Arxis**<br>**Combined** |
|  | **Year Ended<br>December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended<br>December 31,** |
|  | **2025** | **2025** | **2024** | **2023** | **2024** |
| *(in thousands, except for percentages)* |  |  |  |  |  |
|  Net income (loss) | $45269 | $45989 | $(55472) | $(59918) | $(175302) |
|  *Adjusted for:* |  |  |  |  |  |
|  Interest expense, net | 220316 | 220316 | 161052 | 124496 | 285137 |
|  Income tax expense (benefit) | 15982 | 16325 | 2472 | (9412) | (1780) |
|  Depreciation and amortization | 202078 | 200111 | 96303 | 65324 | 198639 |
|  Acquisition and integration costs<sup>(a)</sup> | 23313 | 23313 | 25788 | 2900 | 50739 |
|  Restructuring costs<sup>(b)</sup> | 3772 | 3772 | 14108 | 1402 | 21947 |
|  Transaction and other deal related expenses<sup>(c)</sup> | 12695 | 12695 | 3054 | 643 | 45916 |
|  Share-based compensation expense<sup>(d)</sup> | 27259 | 27259 | 406 |  | 2643 |
|  Refinancing costs<sup>(e)</sup> |  |  | 335 | 190 | 382 |
|  Other non-recurring adjustments<sup>(f)</sup> | 21524 | 21524 | (4047) | (447) | (4956) |
|  **Adjusted EBITDA** | $**572208** | $**571304** | $**243999** | $**125178** | $**423365** |
|  **Adjusted EBITDA Margin** | **35.7%** | **35.9%** | **32.8%** | **29.5%** | **29.2%** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Represents costs incurred to integrate acquired businesses and product lines into our operations, facility
relocation costs, rebranding, system implementation costs, and employee expenses related to acquisitions. This also includes amortization expenses of inventory step-up recorded in connection with purchase
accounting of acquired businesses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Represents severance, facility consolidation/closure costs, and other charges associated with restructuring
programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Represents third-party transaction-related costs for acquisitions comprising deal fees, legal, financial and tax
due diligence expenses, and valuation costs that are required to be expensed as incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Represents the compensation expense under our share-based plans and deferred compensation plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Represents costs expensed related to debt financing activities, including new issuances, extinguishments,
refinancings and amendments to existing agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Represents other income and expense adjustments that are non-recurring, non-operational, or not reflective of core performance, such as loss on disposal of assets, commercial commitments or legal settlements, income from transition services agreements and non-operational pension impacts.

(3) To provide investors with additional information regarding our financial results, we have disclosed here and
elsewhere in this prospectus Free Cash Flow, a non-GAAP financial measure that we calculate as Net cash provided by (used in) operating activities less Capital expenditures. In addition, we have disclosed here
and elsewhere in this prospectus Free Cash Flow Conversion, a non-GAAP financial measure that we calculate as Free Cash Flow divided by Net income (loss). For additional information regarding our use and the
limitations of Free Cash Flow and Free Cash Flow Conversion, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Information."
The

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following table reconciles net cash provided by (used in) operating activities to Free Cash Flow and Free Cash Flow Conversion for the periods presented:

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| | | | |
|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Historical** |
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| *(in thousands, except for percentages)* |  |  |  |
|  Net cash provided by (used in) operating activities | $251196 | $70946 | $(7919) |
|  *Adjusted for:* |  |  |  |
|  Capital expenditures | (42425) | (28889) | (12502) |
|  **Free Cash Flow** | $**208771** | $**42057** | $**(20421)** |
|  **Free Cash Flow Conversion** | **454.0**% | **75.8%** | **NM** |

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| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
| **Combined Balance Sheet Data:** | **Actual** | **Pro forma (1)** | **Pro forma<br>as adjusted (2)** |
| *(in thousands)* |  |  |  |
|  Total current assets | $907681 | $| $|
|  Total assets | 6596434 |  |  |
|  Total current liabilities | 287161 |  |  |
|  Total liabilities | 3472376 |  |  |
|  Total members'/stockholders' equity | 3124058 |  |  |

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(1) The pro forma information gives effect to the Reorganization as though the Reorganization had occurred on
December 31, 2025. This information is illustrative only and will change based on the actual initial public offering price and other terms of this offering determined at pricing.

(2) The pro forma as adjusted information gives effect to the pro forma adjustments in footnote (1) above and
to our issuance and sale of    shares of Class A common stock in this offering at the assumed initial public offering price of $ per share of Class A common stock, which is the midpoint of
the price range set forth on the cover page of this prospectus, after deducting underwriting discounts and commissions and estimated offering and Reorganization expenses payable by us. This information is illustrative only and will change based on
the actual initial public offering price and other terms of this offering determined at pricing.

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**RISK FACTORS** 

*Investing in our Class A common stock involves a high degree of risk. You should carefully consider the risks and uncertainties described below together with all of the other information contained in this prospectus, including the Arxis Combined Financial Statements and the notes thereto included elsewhere in this prospectus, before deciding to invest in our Class A common stock. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also adversely affect our business. If any of the following risks actually occurs, our business, results of operations, financial condition and prospects would likely suffer. In such case, the trading price of our Class A common stock could decline and you may lose all or part of your investment.* 

**Risks Related to Our Industry and Business** 

***Our business is concentrated on the aerospace and defense industries.***

Our business is concentrated on the aerospace and defense industries. As a result, our business, prospects, results of operations and financial condition are closely tied to the overall health and trends in these industries. A prolonged period of significant disruption in the aerospace or defense industry, such as those which occurred during the COVID-19 pandemic, during the great recession and following the September 11 terrorist attacks and international conflicts, or general sustained economic slowdown driven by fuel price volatility, supply chain constraints, macroeconomic conditions or other factors, could disproportionately affect our business, results of operations and financial condition compared to companies that are more diversified in the industries they serve.

***Our business may be adversely affected by a decline in the U.S. and foreign government defense budgets and changes in spending and budgetary priorities and the contracting policies of the U.S. and foreign governments.***

We generate a significant portion of our revenue from suppliers and contractors for the U.S. government, particularly the DoW, and suppliers and contractors for foreign governments. As a result, changes in U.S. and foreign government defense budgets, including reduction in government spending, political pressure to reduce military spending, geopolitical uncertainty, government spending caps, delays in governmental budget processes and delays in the release of funds by governments could adversely affect the demand for our products and our results of operations. In particular, in recent years, the U.S. government has been unable to complete its budget process before the end of its fiscal year, resulting in both governmental shutdowns and continuing resolutions providing only enough funds for U.S. government agencies to continue operating at prior-year levels. Prolonged budgetary uncertainty, government shutdowns, continuing resolutions and debt ceiling constraints could delay contract awards, limit new starts, defer funding releases and increase pricing and program execution risk. In addition, changes in the U.S. and foreign governments' spending priorities and contracting policies, such as a shift in expenditures away from programs that we support and delays in the award of contracts, could adversely affect the demand for our products and our results of operations.

***Our commercial business could be negatively impacted by weakness or disruptions in the commercial aerospace market.***

We design and manufacture aircraft components and parts and provide related services. As a result, our business is directly affected by declines and disruptions in the commercial aerospace market. Such declines or disruptions could occur for various reasons that cannot be predicted, including general economic conditions that reduce business and consumer spending, national and international events (such as wars, conflicts and geopolitical instability), pandemics and epidemics (such as the COVID-19 pandemic), higher fuel prices, increased security concerns (such as terrorist acts and international conflicts) and trade policies (such as the effects of tariffs and trade restrictions). A substantial reduction in airline traffic could result in large losses and financial difficulties for the airline industry and cause carriers to park or retire a portion of their fleets and reduce

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workforces and flights. During periods of reduced airline profitability, some airlines may delay or reduce purchases of airplanes and spare parts, delay refurbishments and delay or reduce discretionary spending and capital expenditures. In such circumstances, demand for our products and services and the value of our inventory could be adversely affected.

***Our growth could suffer if the markets into which we sell our products and services decline or do not grow as anticipated.***

Our growth depends on the performance and conditions of the markets into which we sell our products and services, including the defense, commercial aerospace, space, medical technology and specialized industrial markets. These markets and thus demand for our products and services are affected by factors that impact our customers' demand for our products and services and the end user's capital spending budgets, including many factors beyond our control such as the U.S. and global economy, product and economic cycles, government funding policies and other public policy and government budget dynamics. Any decline or lower than expected growth in our served markets could diminish demand for our products and services and negatively impact our customers' and potential customers' ability to pay for our products and services, including their ability to secure financing, which would adversely affect our business, results of operations and financial condition.

***We generally do not have guaranteed future sales of our products and must forecast customer demand to manage our inventory.***

We do not generally have long-term contracts with our customers and, therefore, do not have guaranteed future sales. To ensure adequate inventory supply, we must forecast future order volumes based on customers' historic purchasing patterns and discussions with customers as to their anticipated future requirements. Our ability to accurately forecast demand could be negatively affected by various factors, including competition, change in customer demand, changes in industry and market conditions or regulatory changes. Inventory levels in excess of customer demand may result in inventory write-downs or write-offs and reduced selling prices and gross margins. Conversely, if we underestimate customer demand, we may not be able to deliver required products in a timely fashion, which could damage our reputation and customer relationships. In addition, if we experience a significant increase in demand, additional supplies of raw materials and component parts or additional manufacturing capacity may not be available when required on terms that are acceptable to us, if at all, or suppliers may not be able to allocate sufficient capacity in order to meet our increased requirements, which could adversely affect our business, prospects, results of operations and financial condition.

***We are subject to certain unique business risks as a result of supplying products to companies contracting with the U.S. government.***

A meaningful portion of our revenue is derived from customers contracting with the U.S. government. In addition, a limited portion of our revenue is derived from contracts with the U.S. government. Companies engaged in supplying defense-related equipment and services to U.S. government agencies, whether through direct contracts with the U.S. government or as a subcontractor to customers contracting with the U.S. government, are subject to business risks specific to the defense industry. For example:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The U.S. government can terminate existing contracts at its convenience and without significant notice. If
contracts are terminated by the U.S. government for convenience, we and our customers that contract with the U.S. government, as applicable, would only be able to recover costs incurred or committed, settlement expenses and profit on the work
completed prior to termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The U.S. government may seek to review our costs and the costs of our customers that contract with the U.S.
government to determine whether pricing is "fair and reasonable." We and our customers are periodically subject to pricing reviews, and government buying agencies that purchase our and our customers' products are periodically
subject to audits by the DoW with respect to prices paid for such products. As a result of these audits, we and our customers could be asked to enter into an arrangement whereby prices would be based on cost, plus a nominal fee, the DoW could seek
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sources of supply or the U.S. government could take other adverse actions, including payment withholds or contract termination, with respect to our and our customers' contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For contracts for which the price is based on cost, the U.S. government may review our costs and those of our
customers that contract with the U.S. government and our and our customers' performance and, based on the results of such audits, the U.S. government may adjust contract-related costs and fees. In addition, under U.S. government purchasing
regulations, some costs, including most financing costs, amortization of intangible assets, portions of research and development costs, and certain market expenses may not be subject to reimbursement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If a government inquiry or investigation uncovers improper or illegal activities, we could be subject to civil or
criminal penalties or administrative sanctions, including contract termination, fines, forfeiture of fees, suspension of payment and suspension or debarment from doing business with U.S. government agencies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S. government purchasing regulations contain a number of operational requirements that apply to entities
engaged in government contracting. Failure to comply with such government contracting requirements could result in civil and criminal penalties and suspension or debarment from doing business with U.S. government agencies.<sup></sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The U.S. government could revoke required security clearances, which would impair our ability to supply products
to U.S. government agencies and our customers that supply products to U.S. government agencies.

We also supply products to foreign governments and companies contracting with foreign governments, which present similar risks as those described above. These risks associated with supplying products to governments and government contractors could be amplified by political factors and the then-current political environment. The occurrence of any of the foregoing events could reduce our revenue from, or the profitability of, certain of our supply arrangements with agencies and buying organizations of the U.S. government and our customers that are contractors or subcontractors for such agencies and buying organizations, and could damage our reputation.

***Our customers' inability to obtain financing for their purchases from us and/or their inability to obtain financing to maintain their business could have a material adverse effect on our business.***

Some of our customers may require substantial financing in order to fund their operations and make purchases from us. The inability of these customers to obtain sufficient credit to finance purchases of our products, or otherwise meet their payment obligations to us, could adversely impact our financial condition and results of operations.

***We depend on certain key personnel and may be unable to attract and retain qualified and skilled employees.***

We require highly skilled and technical personnel with background and experience in and knowledge of our industry and products. We believe that our future success is highly dependent on the talents and contributions of our senior management team and other key employees across engineering, manufacturing and sales. We must be able to attract, develop, motivate and retain highly qualified and skilled employees. There is substantial competition for skilled personnel in our industry, and we could be adversely affected by a shortage of skilled employees. To attract and retain key personnel, we incur significant costs. Even so, these measures may not be enough to attract and retain the personnel we require to operate our business effectively. In particular, we intend to compensate our employees, in part, using stock-based compensation, the effectiveness of which is influenced by our stock price, which could fluctuate due to various factors, including those beyond our control and unrelated to our performance. The loss of qualified employees – or an inability to attract, retain and motivate additional highly skilled employees required for the planned expansion of our business – could adversely impact our operations and growth.

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***Labor-related matters, including labor disputes, could adversely affect our operations and increase our costs.***

A small number of our employees in the U.S. are represented by unions and some of our employees outside of the U.S. are represented by workers' councils. Although we believe that our relations with our employees are satisfactory, we may not be able to negotiate a satisfactory renewal of collective bargaining agreements, satisfy unions and workers' councils or maintain stable employee relations. We may become subject to work stoppages and experience increases in our labor costs, which could disrupt our operations and result in increased costs and an inability to complete our customers' orders in a timely fashion.

***We face significant competition.***

We operate in a highly competitive global industry. Competitors in our product lines are both U.S. and foreign companies and range in size from divisions of large public corporations to small, privately held entities. Our competitors may be able to provide customers with different or greater capabilities or benefits than we can provide in areas such as technical qualifications, past contract performance, geographic presence and price. Furthermore, many of our competitors may be able to use their substantially greater resources and economies of scale to develop competing products and technologies, manufacture in high volumes more efficiently, divert sales from us by winning broader contracts or hire away our employees by offering more lucrative compensation packages. Small business competitors may be able to offer more cost-competitive solutions due to their lower overhead costs, and take advantage of small business incentive and set aside programs for which we are ineligible. Foreign competitors may also be able to offer more cost-competitive solutions as compared to our products and services. The markets for our products and services are expanding, and competition is intensifying as additional competitors enter such markets and current competitors expand their product lines. In order to secure contracts successfully when competing with larger, well-financed companies, we may need to agree to contractual terms that provide for lower aggregate payments to us over the life of the contract, which could adversely affect our margins. Our failure to compete effectively with respect to any of these or other factors could have a material adverse effect on our business, prospects, financial condition or operating results.

***Our industry is subject to rapid change, which could reduce demand for our products if we are unable to adapt to technological and industry changes.***

Our industry is characterized by rapid changes, including technological changes, frequent new product introductions and enhancements and evolving industry standards, all of which could make our products and services obsolete or non-competitive. Our future success depends on our ability to design, develop, manufacture, assemble, test, market and support new products and enhancements, while meeting or exceeding industry standards and customer specifications. However, we may not be able to do so successfully, if at all, or on a timely, cost-effective or repeatable basis. A failure to adapt to technological and industry changes to keep ahead of our competitors could result in the loss of customers and market share.

***We may encounter difficulties managing our growth.***

As we grow, our business becomes increasingly complex. We may encounter difficulties in managing our growth and the associated demands on our operational, product, engineering, sales and marketing, risk management, compliance and finance and accounting resources, which could disrupt our operations and make it difficult to execute our business strategy. We believe that to effectively manage and capitalize on our growth, we must continue to expand our facilities, engineering capabilities and financial, operating and administrative systems and controls and continue to manage headcount, capital and processes efficiently. Our growth could strain our resources, cause operating difficulties, make it difficult to recruit and retain qualified employees and preserve our company culture, and divert our management's attention from day-to-day activities in order to manage our growth. If we do not successfully manage our growth, the quality of our products and services, our reputation and our results of operations may suffer.

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***Negative publicity could damage our brand reputation.***

To continue to be successful, we must continue to preserve, grow and capitalize on the value of our brand in the marketplace. Reputational value is based in large part on perceptions of subjective qualities. As our products are often mission-critical components, even an isolated incident, such as a high-profile product failure or product recall, or the aggregate effect of individually insignificant incidents, can erode trust and confidence, particularly if such incident or incidents result in adverse publicity, governmental investigations or litigation. In particular, product quality issues could negatively impact customer confidence in our brands and our products. Any negative publicity could damage our brand and lead to a material adverse effect on our business, financial position and results of operations.

***We have in the past and may in the future acquire other businesses and products.***

Acquisitions have been part of our growth strategy. We expect to continue to evaluate potential strategic acquisitions of complementary businesses and products. We may not be able to find suitable acquisition candidates, and we may not be able to negotiate and complete such acquisitions on favorable terms, if at all. The pursuit of potential acquisitions may divert the attention of management and cause us to incur additional expenses in identifying, investigating and pursuing suitable acquisitions, whether or not they are consummated. Acquisitions may also require regulatory approvals that are costly or time-consuming to obtain, and any difficulties or delays in complying with such regulatory requirements would hinder our strategic objectives. Consistent with the Reorganization, we may evaluate potential strategic acquisitions, asset sales or dispositions, including with our Sponsor. These transactions may present conflicts of interest between us and our Sponsor. In addition, our Sponsor will have certain consent rights over certain acquisitions and dispositions, which our Sponsor may withhold for any reason. See "Certain Relationships and Related-Party Transactions—Stockholders Agreement." We may be unable to obtain our Sponsor's consent required for transactions that may be beneficial to us. In addition, our Sponsor provides us with certain buy-side and sell-side advisory services, which may also create conflicts of interest between us and our Sponsor. See "Certain Relationships and Related-Party Transactions—Advisory and Consulting Agreements." If we do complete acquisitions, the acquired businesses may not perform in accordance with expectations, our judgments concerning the value, strengths and weaknesses of such businesses may prove incorrect and we may not achieve our anticipated synergies or benefits associated with such acquisitions. We may also lose certain pre-existing business relationships as a result of new acquisitions, and acquisitions we complete could be viewed negatively by our customers, shareholders and the market. In addition, acquisitions may result in unforeseen operating difficulties and expenditures, such as difficulties integrating businesses, personnel, operations and financial and other controls and systems; assumption of unknown liabilities, known contingent liabilities that become realized, or known liabilities that prove greater than anticipated or covered by any indemnity from former owners or representations and warranty insurance; difficulties retaining the customers or employees of any acquired business; incurrence of debt, contingent liabilities or future write-offs of intangible assets or goodwill; entry into a new market or business line in which we have no prior experience and in which we may not successfully compete; and integration of an acquired company, which may disrupt ongoing operations and require management resources that would otherwise be used in developing our existing business.

***We have in the past and may in the future divest certain products or businesses.***

We have divested and may in the future divest certain assets or businesses that no longer fit with our strategic direction or growth targets. In connection with such divestitures, we have entered, and may in the future enter, into sale agreements that include provisions under which we have agreed, or may agree, to indemnify, and have agreed, or may agree, to be indemnified by, third parties against breaches of representations and warranties or covenants, certain liabilities that may arise in connection with business activities of the divested businesses, and other specified matters. Additionally, in connection with certain divestitures, we have assigned, or may assign, specified long-term contracts to the acquirer of the divested businesses, together with the liabilities and performance obligations under such contracts.

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Divestitures involve significant risks and uncertainties, including an inability to find potential buyers on favorable terms, an inability to obtain any required regulatory approvals, failure to effectively transfer liabilities, contracts, facilities and employees to buyers, the possibility that we will become subject to third-party claims arising out of such divestiture, challenges in identifying and separating the IP, systems and data to be divested from the IP, systems and data that we wish to retain, an inability to reduce fixed costs previously associated with the divested assets or business, challenges in collecting the proceeds from any divestiture, disruption of our ongoing business and distraction of management, loss of key employees who leave us as a result of a divestiture and loss of customers that prefer to contract with a larger organization with more expansive offerings. Because divestitures are inherently risky, our transactions may not be successful and may, in some cases, harm our operating results or financial condition.

As it relates to certain divestitures we have completed, disputes have arisen or may continue to arise between us and the acquirer subsequent to the completion of the divestiture transaction. Such disputes have included, or may in the future, include breaches of representations and warranties or covenants, amounts payable to or from the buyer, as well as claims regarding assignment of contracts, assumption of liabilities, and sale and transition service agreements, among other matters. The outcome of such disputes typically involves negotiations between us and an acquirer, but could also lead to litigation between the parties and the ultimate claims made by the parties against each other could be material.

***There are difficult issues to navigate in the development and use of artificial intelligence, which may result in reputational harm or liability or otherwise adversely affect our business, and failure to introduce new and innovative products that have artificial intelligence capabilities could put us at a competitive disadvantage.***

We use, or may in the future use, artificial intelligence, generative artificial intelligence, machine learning and similar tools and technologies (collectively, "AI") in connection with our business, including in certain of our products and services, and may seek to expand such use of AI in the future. As with many innovations, AI presents risks, challenges and unintended consequences that could affect our business. For example, AI algorithms and training methodologies may be flawed, and, similarly, the content, analyses or recommendations that AI systems assist in producing may be, or may be perceived to be, deficient, inaccurate, biased, unethical or otherwise flawed. These deficiencies, and other failures of AI systems, could subject us to competitive harm, regulatory action, legal liability and brand or reputational harm.

Additionally, the use of generative artificial intelligence, a relatively new and emerging technology in the early stages of commercial use, exposes us to additional risks. For example, generative artificial intelligence has been known to produce false or "hallucinatory" inferences or output, and certain generative artificial intelligence uses machine learning and predictive analytics, which can create inaccurate, incomplete or misleading content, unintended biases and other discriminatory or unexpected results, errors or inadequacies, any of which may not be easily detectable by us or any of our related service providers.

Further, incorporating AI could give rise to litigation risk and risk of non-compliance and unknown cost of compliance, as AI and similar technologies and automated decision-making are an emerging area for which the legal and regulatory landscape is not fully developed and is changing rapidly. It is possible that new laws and regulations will be adopted in the U.S. and in non-U.S. jurisdictions, or that existing laws and regulations may be interpreted, in ways that would affect the operation of our products and services and the way in which we use AI and similar technologies. We may not be able to adequately anticipate or respond to these evolving laws and regulations, and we may need to expend additional resources to adjust our offerings in certain jurisdictions if applicable legal frameworks are inconsistent across jurisdictions. Moreover, because these technologies are themselves highly complex and rapidly developing, it is not possible to predict all of the legal or regulatory risks that may arise relating to our use of such technologies. Further, the cost to comply with such laws or regulations could be significant and would increase our operating expenses, which could adversely affect our business, financial condition and results of operations.

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We use, or may in the future use, third-party AI technologies, including third-party software and infrastructure, which may become integral to our operations. We cannot control the availability or pricing of such third-party AI technologies, especially in a highly competitive environment, and we may be unable to negotiate favorable economic terms with the applicable providers. If any such third-party AI technologies become incompatible with our products or services or unavailable for use, or if the providers of such models unfavorably change the terms on which their AI technologies are offered or terminate their relationship with us, our solutions may become less appealing to our customers and our business will be harmed. In addition, to the extent any third-party AI technologies are used as a hosted service, any disruption, outage or loss of information through such hosted services could disrupt our operations or solutions, damage our reputation, cause a loss of confidence in our solutions or result in legal claims or proceedings, for which we may be unable to recover damages from the affected provider.

**Risks Related to Our Operations** 

***Cost overruns could subject us to losses.***

We must meet stringent customer specifications and requirements, which could result in us having to spend more to design or manufacture products than we expect. Because many of our contracts involve advanced designs and innovative technologies, we may experience unforeseen technological difficulties and cost overruns. These risks are heightened in a high inflationary environment. These risks are also heightened for new programs that often require ramp-up costs, such as non-recurring costs for tooling, first article testing, finalizing engineering specifications and hiring new employees, and often involve a greater volume of scrap, higher costs due to inefficiencies, delays in production and learning curves. If we are unable to control the costs we incur in performing under the contract, then our reputation and results of operations could be adversely affected.

***Our business depends on the availability and pricing of certain components and raw materials from suppliers.***

Our business is affected by the price and availability of the raw materials and component parts that we use to manufacture our products. Increases in the costs of raw materials or component parts, and reduced availability of such raw materials or component parts, could adversely affect our business, results of operations and financial condition. Supply sources could be interrupted from time to time, including by events such as the destruction of our suppliers' facilities or their distribution infrastructure or a work stoppage or strike by our suppliers' employees. If supply sources are interrupted, it is not certain that supplies could be resumed, whether in part or in whole, within a reasonable time frame and at an acceptable cost, or at all. Although we believe in most cases that we could identify alternative suppliers, or alternative raw materials or component parts, the lengthy and expensive process to obtain requisite certifications could prevent efficient and timely replacement of a supplier,

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raw material or component part. Certain of our products depend on specialty materials and rare and precious metals, which may experience constraints in supply that postpone delivery or increase the costs of our products. Changes to tariff and import and export regulations in the U.S. and abroad may negatively impact the availability and pricing of raw materials and component parts. This risk is heightened by our use of sole source suppliers. We have experienced and expect to continue to experience supply shortages or increases in costs for raw materials and component parts. In addition, because we strive to limit the volume of raw materials and component parts on hand, we may be more susceptible to changes in the price and availability of raw materials and component parts. As a result, the cost to manufacture our products could be significantly greater than we expect, which could limit the demand for our products and, if we are unable to pass along such increased costs to our customers, reduce our gross margins. Additionally, counterfeit parts in our supply chain have been and continue to be a concern, since any counterfeit part can lower product quality, which may affect our reputation and the reliability of our products.

***Inflation could adversely affect our results of operations.***

Although historically our operations have not been materially affected by inflation and we have been successful in adjusting prices to our customers to reflect changes in our material and labor costs, the rate of current inflation and resulting pressures on our costs and pricing could adversely impact our business and financial results. Inflation adversely affects us by increasing our operating costs, including our materials, freight and labor costs, which are already under pressure due to supply chain constraints. Russia's invasion of Ukraine, and prolonged conflict there, as well as the conflict in the Middle East and other geopolitical conflicts may result in increased inflation, escalating energy and commodity prices and increasing costs of materials. We may be unable to raise the sales prices of our products at or above the rate of inflation, particularly due to competitive conditions in the market for our products and services, which could reduce our profit margins and have a material adverse effect on our results of operations.

***Tariffs and changes in trade policies could increase our cost of sales.***

In 2025, the U.S. announced significant changes to its trade policies, including the imposition of significant tariffs on various products from other countries. Additional and different tariffs may be announced and implemented in the future by the U.S. and other countries. In particular, tariffs on steel and aluminum have increased our costs. While any steel and aluminum we use in our products is produced primarily in North America, the tariffs provide domestic steel and aluminum producers the flexibility to increase their prices, at least to a level where their products would still be priced below foreign competitors once the tariffs are taken into account. These tariffs could have an adverse impact on our results of operations, which include, but are not limited to, products we sell that include steel and aluminum, and if we are unable to pass such price increases through to our customers, it would likely increase our cost of sales and, as a result, decrease our gross margins. In response to U.S. tariffs, a number of other countries have threatened to and have imposed tariffs on U.S. imports, which could increase the price of our products in these countries and may result in our customers looking to alternative sources for our products. This could result in decreased sales, which could have a negative impact on our results of operations and financial condition.

***Our operations and those of our suppliers and customers may be adversely affected by natural disasters, pandemics and other catastrophic events.***

We, our suppliers and our customers are exposed to risks associated with natural disasters, fire, power shortages or other catastrophic events, which could damage or disrupt our operations and supply chain and those of our suppliers and customers. In the event of a natural disaster, we, our suppliers and our customers may be unable to continue our and their operations and may endure system interruptions, delays in fulfilling orders, breaches of data security and loss of critical data. In particular, some of our manufacturing facilities are located in earthquake-prone, flood-prone and wildfire-prone regions, which make them susceptible to such natural disasters. In addition, we, our suppliers and our customers are exposed to risks associated with public health

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crises, such as pandemics and epidemics, which could result in manufacturing and operational disruptions, reduced demand for our products and negative impacts on our industry and the markets we serve. Further, acts of terrorism, labor activism or unrest and other geopolitical unrest could cause disruptions in our operations and those of our suppliers and customers. We maintain business continuity insurance coverage at levels that we believe are appropriate for our business, but there can be no assurance that the amounts of insurance will be sufficient to satisfy any damages and losses associated with such events.

***Our products may not operate as intended.***

We design, manufacture, service and sell complex and sophisticated aerospace, medical technology and specialized industrial products. These products are manufactured according to detailed specifications and are subject to strict approval or certification requirements. Technical, mechanical and other failures have occurred in the past, and may occur in the future, whether as a result of manufacturing or design defects, operational processes or production issues. Our products could also fail as a result of cyber-attacks, such as those that seize control and result in misuse or unintended use of our products, or other intentional acts. As many of our products are mission-critical components, the failure of one of our products could lead to catastrophic consequences for the end products in which our products are component parts such as plane crashes. If our products do not operate as intended, we could be subject to product liability claims, product recalls, regulatory directives, warranty claims, service, repair and maintenance costs, damages and fines and other liabilities and our reputation could be adversely affected.

***We may be unable to renew our leases.***

We have made significant capital expenditures to ensure our leased facilities are suitable for our purposes as well as to meet requirements that we are subject to and obtain facility security clearances. However, at the end of the lease term and during any renewal period for a facility, we may be unable to renew the lease on commercially reasonable terms, or at all. If we are unable to renew our facility leases, we may close or relocate a facility, which could materially impact our ability to meet certain contractual schedule commitments or require us to incur significant costs to increase production at other facilities. In addition, relocating facilities could subject us to construction and other costs and risks, including significant capital expenditures, an inability to retain qualified personnel and a decrease in production and performance at the new facilities compared to the existing facilities. Additionally, we may have to seek qualification of any new facilities in order to meet customer or contractual requirements and to obtain facility security clearances for the new facility in order to continue to perform on classified contracts. Further, we may not be able to secure a replacement facility in a location that is as commercially viable as that of the lease we are unable to renew, due to contracts that may require us to have facilities in certain locations.

***We could continue to incur significant costs under our leases if we close or scale down facilities.***

Many of our facilities are located on leased premises subject to non-cancellable leases. Typically, our leases have initial terms ranging from five to ten years, with options to renew for specified periods of time. If we close or stop fully utilizing a facility, we will most likely remain obligated to perform under the applicable lease, which would include, among other things, making the base rent payments, and paying insurance, taxes and other expenses on the leased property for the remainder of the lease term, even though we do not derive any revenue from such leased property.

***We have a decentralized organizational structure, under which our business units operate with significant autonomy.***

We operate through a decentralized organizational structure in which our business units have significant operational and managerial autonomy. This structure is intended to enhance agility, accountability and customer focus across our diverse portfolio of products and businesses. However, the autonomy of our business units also presents risks associated with inconsistent execution of enterprise policies and controls. Because our business

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units are responsible for their own operational performance, compliance and risk management, variations in management practices or local decision-making could result in inconsistent application of our corporate standards and procedures. This may affect areas such as contract compliance, ethics and business conduct, intellectual property policies and procedures, cybersecurity and data privacy, export and import controls, anti-corruption, environmental, health and safety and product quality. As we operate in highly regulated industries and act as a U.S. government contractor or subcontractor, a failure by any business unit to comply with applicable laws, regulations or contract requirements could subject us to administrative, civil or criminal proceedings, monetary penalties, loss of contract awards, suspension or debarment and reputational harm. Our decentralized model also increases the complexity of implementing company-wide initiatives, integrating acquisitions and maintaining consistent oversight across multiple operating environments. Communication gaps or delays in escalation between business unit leadership and corporate management could impair our ability to identify and respond promptly to emerging risks or operational issues. Our decentralized organizational structure may result in compliance challenges and may heighten many of the risk factors described in this "Risk Factors" section, including those related to cybersecurity and data protection, supply chain management, product quality and safety, internal controls over financial reporting and the retention and development of key personnel. In addition, our operations may be disrupted and we may be subject to additional risks as a result of any effort we undertake to align policies and procedures across our business units. Any such issues could adversely affect our business, financial condition, results of operations and reputation.

***Disruptions to the various information technology systems upon which our operations and our products and services rely could harm our business, reduce our revenue, increase our expenses, damage our reputation and adversely impact our performance.***

We rely on software, hardware, communication networks, cloud services and other information technology systems, including those of third parties, to process, transmit, store and protect electronic information. A significant portion of the communications between our personnel, customers, suppliers and vendors depends on such information technology systems, and we heavily rely on access to such information technology systems for our operations. Additionally, we rely on third-party service providers to execute certain business processes and maintain certain information technology systems and infrastructure. Any of these information technology systems may contain defects or errors when implemented or when new functionality is released, as we may modify, enhance, upgrade and implement new systems, procedures and controls to reflect changes in our business, technological advancements and changing industry trends. Additionally, such upgrades or replacements may not improve our productivity to the levels anticipated and may subject us to inherent costs and risks associated with implementing, replacing and updating these systems, including potential disruption of our internal control structure, substantial capital expenditures, demands on management time and other risks of delays or difficulties in transitioning to new systems or of integrating new systems into other existing systems.

Any disruption to these information technology systems, whether as the result of computer or telecommunications issues (including operational failures, server malfunctions, software bugs, errors or defects, or software or hardware failures), natural disasters, severe weather, power outages, telecommunication failures, personnel misconduct or error, localized conditions or events, or circumstances of broader geographic impact, could materially adversely affect our business by disrupting normal operations. This could impede our sales, disrupt or prevent manufacturing or other critical functions, result in loss or corruption of critical data or harm our customers, and the financial costs we could incur to respond to these disruptions could be significant and may be difficult to anticipate or measure. Moreover, such a disruption could cause reputational and financial harm or cause our customers to seek to terminate their contracts, delay or withhold payment or make claims against us. If any disruption to any information technology system on which we rely occurs, regardless of whether the disruption originates from our systems or those of our partners or suppliers, the market perception of the effectiveness of our products or services could be harmed. Any of the foregoing could subject us to liability to our customers, suppliers, business partners or any affected individual, lost business, increased insurance costs, difficulty in collecting accounts receivable, costly litigation or adverse publicity, which could materially and adversely affect our business, financial condition and results of operations.

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***Cyberattacks, security incidents or other unauthorized access to our or our service providers' information technology systems or sensitive or proprietary information, or any perceived compromise thereof, could have an adverse effect on our business and operations.***

We have in the past been, and may in the future be, impacted by security incidents, including attacks from bad actors intended to circumvent our security capabilities. We are susceptible to compromises of our information technology systems and data, including those arising from process, coding or human errors. Cyberattacks, data breaches, data losses and other security incidents can result from, among other things, inadequate personnel, inadequate or failed internal control processes and systems or external events or actors that interrupt normal business operations and may include disruptions, failures, service outages, unauthorized access or misuse, software bugs, server malfunctions, software and hardware failure, defective software or hardware updates, malware and ransomware, social engineering and phishing attacks, theft of IP, trade secrets or other corporate assets, denial-of-service attacks, hacking by common hackers, criminal groups, nation-state organizations or social activist organizations, misconduct, fraud, error and other events that could have a serious impact on us. These risks may be further increased as a portion of our employees work from home. We may not have the resources or technical sophistication to anticipate, prevent or detect rapidly evolving types of cyberattacks and other security risks. Attacks may be targeted at us, our customers, suppliers, vendors or other service providers or others who have entrusted us with information, and such parties have faced and may continue to face cyberattacks, compromises or other security incidents from a variety of sources. A successful attack or other incident that results in an interruption of service or that compromises our or our service providers' information technology systems or data could have a significant negative effect on our operations, reputation, financial resources and the value of our IP. We cannot assure you that any of our efforts to manage this risk will be effective in protecting us from such attacks.

Because of the frequently changing attack techniques, along with increased volume, persistence and sophistication, we may be adversely impacted by such attacks or other security incidents. Because such techniques change frequently, including through enhancements by the use of AI, or may be designed to remain dormant until a predetermined event and often are not recognized until launched against a target, we may be unable to anticipate these techniques or implement sufficient control measures to defend against these techniques. It is virtually impossible for us to entirely eliminate the risk of such attacks, compromises, interruptions in service or other security incidents affecting our information technology systems or data, or those of our service providers.

Once a cyberattack or security incident is identified, we may be unable to remediate or otherwise respond to such an incident in a timely manner. While we have policies and procedures in place, including system monitoring and data back-up processes to prevent or mitigate the effects of these potential incidents, such incidents and other disruptions to information technology systems could interfere with our operations. Any failure to maintain, or disruption to, our information technology systems, whether as a result of cyberattacks or otherwise, could damage our reputation, subject us to legal claims and proceedings or remedial actions, create risks of violations of data privacy and cybersecurity laws, rules and regulations and cause us to incur substantial additional costs. Existing or emerging threats may have an adverse impact on our information technology systems and, further, technological enhancements to prevent business interruptions could require increased spending. Furthermore, cyberattacks and security incidents pose a risk to confidential data and IP, which could result in damage to our competitiveness and reputation. The costs, potential monetary damages and operational consequences of responding to cyberattacks and security incidents and implementing remediation measures may not be covered by any insurance that we may carry from time to time. We cannot predict the degree of any impact that increased monitoring, assessing or reporting of cybersecurity matters would have on operations, financial conditions and results.

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***We are subject to complex and evolving laws, regulations, and industry requirements related to data privacy, data protection, information security and cybersecurity across different markets where we conduct our business.***

We are required to comply with stringent, complex and evolving laws, rules, regulations and standards in many jurisdictions, as well as contractual obligations, relating to data privacy and cybersecurity. Ensuring compliance with such requirements may increase operating costs, impact our data processing practices and policies and the development of new products or services, and reduce operational efficiency, any of which could adversely affect our business and operations.

In the U.S., there are numerous federal, state and local data privacy and cybersecurity laws, rules, and regulations governing the collection, sharing, use, retention, disclosure, security, transfer, storage and other processing of personal information, including federal and state data privacy and cybersecurity laws, data breach notification laws and data disposal laws. These include the California Consumer Privacy Act ("CCPA"), as amended by the California Privacy Rights Act, and similar state privacy laws. At the international level, we are subject to the General Data Protection Regulation (the "GDPR") and its equivalent in the United Kingdom (the "U.K. GDPR"). Implementing mechanisms to endeavor to ensure compliance with the GDPR and the U.K. GDPR may be onerous and expose businesses to divergent parallel regimes that may be subject to potentially different interpretations and enforcement actions for certain violations and related uncertainty.

We are also subject to the DoW Cybersecurity Maturity Model Certification ("CMMC") program, which mandates assessments, including in certain cases by third parties, for companies working with the DoW in order to verify such companies' adherence to specific cybersecurity standards. Such compliance program is currently being phased in and expected to be completed by November 2028. To the extent we are unable to achieve certification in advance of contract awards, or we fail to achieve or maintain certification at the level required for a particular contract award, we will be unable to bid on such contract awards or follow-on awards for existing work with the DoW, which could materially adversely impact our revenue, profitability and cash flows. Additionally, our subcontractors, and certain of our vendors, may also need to comply with CMMC requirements. We may be negatively impacted if our subcontractors or vendors are not compliant with CMMC requirements. The obligations imposed on us under the CMMC may be different from, or in addition to those otherwise required by the data privacy and cybersecurity laws, rules and regulations to which we are subject. The costs to comply with the new CMMC requirements are significant and may increase, which could materially adversely affect our business, results of operations, prospects and financial condition. Failure to comply with CMMC requirements may also make us subject to bid protest challenges or False Claims Act allegations claiming damages to the government based on such non-compliance.

We have implemented internal controls and procedures designed to be compliant with the data privacy and cybersecurity laws, rules and regulations to which we are subject, the CMMC and other applicable standards, as well as contractual obligations related to data protection. However, such controls and procedures may not enable us to be fully compliant with such laws, rules and regulations. Moreover, data privacy and cybersecurity laws, regulations, standards and obligations are uncertain and evolving and may be modified, replaced, interpreted and applied in an inconsistent manner from one jurisdiction to another, and may conflict with one another, other requirements or legal obligations. We cannot yet determine the impact that such modifications or interpretations may have on our business. As such, we cannot assure ongoing compliance with all such laws or regulations and other legal obligations, and our efforts to do so may cause us to incur significant costs or require changes to our business practices, which could materially adversely affect our business, results of operations, prospects and financial condition. The rapid evolution and increased adoption of AI technologies may intensify these risks. Any failure or perceived failure by us to comply with applicable laws or regulations, or other contractual or legal obligations, or to adequately address privacy and security concerns, even if unfounded, may result in governmental enforcement actions, private litigation (including class actions), fines and penalties or adverse publicity and could cause our customers to lose trust in us, which could have a material adverse effect on our reputation, inhibit sales and materially adversely affect our business, results of operations, prospects and financial condition.

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***Our business is subject to economic, political, regulatory and other risks associated with international operations.***

Our operations outside of the U.S. are subject to risks beyond those otherwise applicable to our domestic operations. Our net sales to foreign customers represented approximately 33.9% of our revenue for the year ended December 31, 2025. In addition, a number of our suppliers are located in foreign jurisdictions. A number of risks inherent in international operations could have a material adverse effect on our results of operations, including inflationary pressures, economic weakness or political instability in particular non-U.S. economies and markets; the risk of government-financed competition; difficulties in compliance with non-U.S. laws and regulations; changes in non-U.S. regulations and customs, tariffs and trade barriers; changes in non-U.S. currency exchange rates and currency controls; changes in a specific country's or region's political or economic environment; trade protection measures, economic sanctions and embargoes, import or export licensing requirements or other restrictive actions by U.S. or non-U.S. governments; negative consequences from changes in tax laws, including with respect to the repatriation of funds; difficulties associated with staffing and managing international operations; business interruptions resulting from geopolitical actions and conflict, war and terrorism, including hostilities in Iran and related conflicts, the conflict between Russia and Ukraine and resulting sanctions, retaliatory measures, changes in the availability and price of various materials and effects on global financial markets; business interruptions resulting from natural disasters; and the impact of public health epidemics on employees and the global economy. Any of these factors could reduce the demand for our products, reduce our margins and create supply chain issues, such as those relating to the availability and price of raw materials and component parts, merchandise quality, shipping and transport availability, cost and security.

***Failure to comply with applicable economic and trade sanctions could materially adversely affect our reputation and results of operations.***

Our business must be conducted in compliance with applicable economic and trade sanctions and export control laws and regulations, such as those administered and enforced by OFAC, the U.S. Department of State, the U.S. Department of Commerce, the United Nations Security Council, the Directorate of Defense Trade Controls and other relevant authorities. Such laws and regulations prohibit or restrict certain operations, investment decisions and sales activities, including dealings with certain countries or territories and with certain governments and designated persons. Such laws and regulations change over time and could be affected by political factors and the then-current political environment. Any violation or alleged violation by us, our employees, contractors or agents or others acting on our behalf or associated with us could expose us to reputational harm as well as significant penalties, including criminal fines, imprisonment, civil fines, disgorgement of profits, injunctions and debarment from government contracts, as well as other remedial measures.

**Risks Related to Our Financial Condition and Accounting Matters** 

***We may require additional capital to support our growth.***

We have funded our operations primarily through revenue generated by our products and services. We intend to continue to make investments in our business to respond to business opportunities, including developing new products and services, enhancing our operating infrastructure, expanding our operations and acquiring complementary businesses and products, all of which may require us to secure additional funds. Additional funds may not be available when we need them or on terms that are acceptable to us. Our ability to raise additional funds will depend on financial, economic and market conditions and other factors, over which we may have no or limited control. We may seek additional capital through a variety of means, including through public and private equity offerings and debt financings, credit and loan facilities and collaborations. If we raise additional capital through the sale of equity or convertible debt securities, your ownership interest will be diluted and the terms of such equity or convertible debt securities may include liquidation or other preferences that are senior to or otherwise adversely affect your rights as a shareholder. If we raise additional capital through the sale of debt securities or through credit or loan facilities, we may be restricted in our ability to take certain actions,

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such as incurring additional debt, making capital expenditures, declaring dividends or encumbering our assets to secure future indebtedness, which restrictions could adversely impact our ability to conduct our operations and execute our business plan. If we raise additional capital through collaborations with third parties, we may be required to relinquish valuable rights to our IP and products, or we may be required to grant licenses to our IP and products on unfavorable terms.

***Our quarterly operating results may vary widely.***

Our quarterly revenue, cash flow and operating results have and may continue to fluctuate significantly in the future due to a number of factors, including the following: fluctuations in revenue derived from customer contracts; contract mix; the size and timing of orders; the mix of products and services that we sell in the period; fluctuations in customer demand for some of our products or services; unanticipated costs incurred in the introduction of new products and services; fluctuations in the adoption of our products and services in new markets; our ability to win additional contracts from existing customers or other contracts from new customers; cancellations, delays or contract amendments by our customers; changes in policy or budgetary measures that adversely affect our U.S. government customers and customers serving the U.S. and foreign governments; the cost of complying with various regulatory requirements applicable to our business and the potential penalties or sanctions that could be imposed for non-compliance; and our ability to obtain the necessary export licenses for sales of our products and services to international customers.

Changes in the volume of products and services provided under existing contracts and the number of contracts commenced, completed or terminated during any quarter may cause significant variations in our cash flow from operations because a relatively large amount of our expenses are fixed. We incur significant operating expenses during the start-up and early stages of large contracts and typically do not receive corresponding payments in that same quarter. We may also incur significant or unanticipated expenses when contracts expire or are terminated or are not renewed.

***We face downward pricing pressure.***

There is substantial and continuing pressure from our customers to reduce the prices they pay to suppliers such as us. We attempt to manage such downward pricing pressure, while trying to preserve our business relationships with our customers, by seeking to reduce our production and procurement costs through various measures, including implementing cost-effective process improvements and partnering with our own suppliers to reduce our cost of raw materials and component parts. Our suppliers have periodically resisted, and in the future may resist, pressure to lower their prices. We may be unable to fully offset price reductions from our customers by reducing our costs.

***Our indebtedness and the restrictive covenants under the agreements governing our indebtedness could adversely affect our financial condition.***

We have a significant amount of indebtedness. As of December 31, 2025, we had $2,661.5 million outstanding principal amount of indebtedness. Such indebtedness could have important consequences, including making it more difficult for us to satisfy our obligations with respect to our indebtedness; limiting our ability to obtain additional financing to fund working capital, capital expenditures, acquisitions and other general corporate requirements; increasing our borrowing costs; increasing our vulnerability to general economic downturns and adverse competitive and industry conditions; requiring us to dedicate a substantial portion of our cash flows from operations to payments on our indebtedness, thereby reducing the availability of our cash flow to fund working capital, capital expenditures, acquisitions and other general corporate requirements; limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; placing us at a competitive disadvantage compared to competitors that have less debt; and impacting investors' perception of us.

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All of our indebtedness bears variable rates, thereby making us more vulnerable to rising interest rates. If interest rates increase, our debt service obligations on the variable rate indebtedness would increase even though the amount borrowed remained the same. We hedge a portion of our variable rate indebtedness; however, there can be no assurance that we will be able to continue to do so on commercially reasonable terms, or at all.

The agreements that govern our indebtedness impose significant operating and financial restrictions on us. Negative covenants limit us from, among other things, incurring indebtedness, creating liens on our properties, entering into merger or consolidation transactions, selling assets, disposing of all or substantially all of our assets, paying dividends and distributions and making other restricted payments. As a result of these restrictions, we are limited as to how we conduct our business and may be unable to compete effectively or take advantage of new business opportunities. Our failure to comply with the restrictive covenants as well as other terms of our indebtedness could result in an event of default, which, if not cured or waived, could result in our being required to repay these borrowings before their due date and result in the lenders thereunder to terminate their commitments.

Our ability to maintain compliance with the covenants imposed by our indebtedness and to repay the principal of, pay interest on and refinance our indebtedness depends on our future performance, which is subject to economic, financial, competitive and other factors, many of which are beyond our control. If we are unable to comply with the covenants imposed by our indebtedness or to generate sufficient cash flow to service or repay our indebtedness, we may be in default and be required to adopt one or more alternatives, such as reducing or delaying capital investments, selling assets, restructuring or refinancing our debt or seeking additional equity capital that can be highly dilutive. These remedies may not be available to us on commercially reasonable terms, or at all.

***Additional tax liabilities and changes in tax laws could adversely impact our results of operations and financial condition.***

We are subject to income taxes in the U.S. and subject to tax laws in various foreign jurisdictions. The laws and regulations in these jurisdictions are inherently complex, and we are obliged to make judgments and interpretations about the application of these laws and regulations. Such judgments and interpretations may be incorrect and be subject to challenge by tax authorities. If tax audits result in assessments different from amounts reserved, our income statement could include unfavorable adjustments to our tax liabilities. In addition, we could be adversely affected by changes to tax laws and regulations in the jurisdictions in which we operate.

***We may incur expenditures prior to the final receipt of a contract.***

We provide various specialized products, services and sometimes procure equipment and materials on behalf of our customers under various contractual arrangements. From time to time, in order to ensure that we satisfy our customers' delivery requirements and schedules, we may elect to initiate procurement and production in advance of receiving a contract award or final authorization from the government or a prime contractor. These actions that we may take to procure materials and/or commence production in advance of a contract award or final authorization require use of our working capital resources which impact our near-term operating cash flows. If our government or prime contractor customers' requirements should change or if the government or the prime contractor should direct the anticipated procurement to another contractor, or if the anticipated contract award or final authorization does not materialize, or if the equipment or materials become obsolete or require modification before we are under contract for the procurement, our investment in the equipment or materials might be at risk if we cannot efficiently resell them. This could reduce anticipated earnings or result in a loss, materially adversely affecting our business, results of operations, prospects and financial condition.

***Changes in our accounting estimates could materially adversely affect our financial results.***

Contract accounting requires judgments relative to assessing risks, including risks associated with estimating contract transaction prices and costs, assumptions for schedule and technical issues, customer-directed

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delays and reductions in scheduled deliveries and unfavorable resolutions of claims and contractual matters. Due to the size and nature of many of our contracts, the estimation of total costs at completion is complicated and subject to many variables. For example, we must make assumptions regarding the length of time to complete the contract because costs also include expected increases in wages and prices for materials; and consider incentives or penalties related to performance on contracts and include them in the variable consideration to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the related uncertainty is resolved. Because of the significance of the judgments and estimation processes described above, it is likely that materially different amounts could be recorded if we used different assumptions or if the underlying circumstances were to change. Changes in underlying assumptions, circumstances or estimates could materially adversely affect our results of operations and financial condition.

***Our financial results of operations could be adversely affected by impairment of our goodwill or other intangible assets.***

Goodwill and other intangible assets that have indefinite useful lives must be evaluated at least annually for impairment. The specific guidance for testing goodwill and other non-amortized intangible assets for impairment requires management to make certain estimates and assumptions. Changes in our estimates and assumptions, including as a result of factors beyond our control, could adversely impact the fair value of reporting units and result in impairments of goodwill and other intangible assets. If at any time we determine an impairment has occurred, we are required to reflect the reduction in value as an expense within operating income, resulting in a reduction of earnings and a corresponding reduction in our net asset value in the period such impairment is identified. Such a non-cash charge could have a material adverse effect on our results of operations.

***We could be required to make future contributions to our defined benefit pension and post-retirement benefit plans and our costs may substantially increase in connection with such plans as a result of adverse changes in interest rates and the capital markets, changes in actuarial assumptions and legislative or other regulatory actions.***

Our estimates of liabilities and expenses for pensions and other post-retirement benefits incorporate significant assumptions including the rate used to discount the future estimated liability, the long-term rate of return on plan assets and several assumptions relating to the employee workforce (salary increases, medical costs, retirement age and mortality). A dramatic decrease in the fair value of our plan assets resulting from movements in the financial markets or a decrease in discount rates may cause the status of our plans to go from an over-funded status to an under-funded status and result in cash funding requirements to meet any minimum required funding levels. Our results of operations, liquidity or shareholders' equity in a particular period could be affected by a decline in the rate of return on plan assets, the rate used to discount the future estimated liability or changes in employee workforce assumptions.

***We previously identified a material weakness in our internal control over financial reporting. If we experience additional material weaknesses in the future or otherwise fail to develop and maintain effective internal control over financial reporting, our ability to produce timely and accurate financial statements may be adversely affected.***

We have been a private company since our inception and, as such, we have not been required to meet the internal control over financial reporting requirements that are applicable to a public company. As a result of becoming a public company, we will be required to comply with such requirements and to furnish a report by management on the effectiveness of internal control over financial reporting.

We previously identified a material weakness in our internal control over financial reporting related to the design and operating effectiveness of our internal controls over the accounting for certain complex transactions which could impact our ability to accurately account for and report certain transactions. The Public Company Accounting Oversight Board ("PCAOB") defines a material weakness as a "deficiency, or a combination of

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deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis." Following the identification of the material weakness, we implemented a series of remediation measures designed to address the identified material weakness. These measures included the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expanding our resources and personnel with the appropriate level of expertise within our technical accounting
functions, including the hiring of an experienced Chief Accounting Officer with significant experience in complex transactions and public company reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• implementing standardized controls for the identification of complex transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• engaging external advisors with expertise and experience in the review of complex transactions and who are
specialists in technical accounting matters, who advised management on accounting and reporting for transactions impacting the year ended December 31, 2025; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• redesigning existing controls and implementing new controls to standardize accounting and reporting processes,
including enhanced documentation and management review and approval requirements that clarify judgment criteria and accounting relevant to complex transaction.

Based on these remediation measures, we have concluded that the identified material weakness has been remediated as of December 31, 2025. However, we cannot assure you that the measures we have implemented will be sufficient to avoid future material weaknesses.

Pursuant to Section 404 of the Sarbanes-Oxley Act, management is not required to perform an assessment of, and our independent registered public accounting firm is not required to formally attest to the effectiveness of our internal control over financial reporting until our second Annual Report on Form 10-K to be filed with the SEC. When our independent registered public accounting firm formally attests to the effectiveness of our internal control over financial reporting, it may issue a report that is adverse in the event it is not satisfied with the level at which our internal control over financial reporting is documented, designed or operating.

Effective internal control over financial reporting is necessary for us to provide reliable financial reports and, together with adequate disclosure controls and procedures, is designed to prevent and detect error and/or fraud in a timely manner. Our ability to maintain effective disclosure controls and internal control over financial reporting may be further impacted by our decentralized model. If we are unable to conclude on an ongoing basis that we have effective internal control over financial reporting in accordance with Section 404, our independent registered public accounting firm may not issue an unqualified opinion, we may be unable to produce timely and accurate financial statements, investors could lose confidence in our reported financial and other information and we may be subject to sanctions or investigations by the SEC or other regulatory authorities, any of which could have a material adverse effect on the trading price and liquidity of our Class A common stock.

**Risks Related to Government Regulation and Legal Matters** 

***We are subject to extensive governmental regulation.***

We are subject to numerous state, federal and international laws and directives and regulations in the U.S. and abroad that involve matters central to our business, including data privacy and security, employment and labor relations, immigration, taxation, import-export controls, trade restrictions, internal and disclosure control obligations, securities regulation and anti-competition. Compliance with legal requirements is costly, time-consuming and requires significant resources. Violations of one or more of these legal requirements in the conduct of our business could result in significant fines and other damages, criminal sanctions against us or our officers, prohibitions on doing business and damage to our reputation. Violations of these regulations or contractual obligations related to regulatory compliance in connection with the performance of customer contracts could also result in liability for significant monetary damages, fines and criminal prosecution, unfavorable publicity and other reputational damage, restrictions on our ability to compete for certain work and allegations by our customers that we have not performed our contractual obligations.

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We are also subject to certain domestic and international anti-corruption laws, including the U.S. Foreign Corrupt Practices Act ("FCPA"), other domestic U.S. bribery laws, the UK Bribery Act and similar laws and regulations in other jurisdictions. These laws and regulations generally prohibit the company and its employees and intermediaries from directly or indirectly authorizing, promising, offering or providing payments or benefits to government officials and other recipients in order to obtain or retain business improperly or secure an improper business advantage. We contract with governments and government agencies, and our business in various countries may involve interactions with government officials responsible for enforcing regulations or the authorization of permits, licenses or other approvals necessary for our business activities. We also may engage third parties or participate in joint ventures that can expose us to liability for the illegal activities of our partners or agents, even if we do not explicitly authorize such activities. Violations of applicable anti-corruption laws could subject us to significant civil or criminal penalties, including fines, disgorgement of profits, injunctions and debarment from government contracts, adverse media coverage and investigations, any of which could have a material adverse effect on our reputation, business and results of operations. Our exposure for violating these laws will increase as our international presence expands and as we increase sales and operations in foreign jurisdictions.

Also, pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, the SEC promulgated disclosure requirements regarding the use of certain minerals (tantalum, tin, gold and tungsten), known as conflict minerals, which are mined from the Democratic Republic of the Congo or another covered country under such act. There are costs associated with complying with the disclosure requirements, such as costs related to determining the source of certain minerals used in our products, as well as costs of possible changes to products, processes or sources of supply as a consequence of such verification activities. Given the complexity of our supply chain, we may not be able to ascertain the origin of these minerals used in our products in a timely manner, which could cause some of our customers to disqualify us as a supplier to the extent we are unable to certify our products are conflict mineral free. Additionally, the rule could affect sourcing at competitive prices and availability in sufficient quantities of such minerals used in our manufacturing processes for certain products.

***Our business may be adversely affected if we were to lose our government or industry approvals, if more stringent government regulations were enacted or if industry oversight were to increase.***

The aerospace industry is highly regulated in the U.S. and in other countries. In order to sell our products, we and the products we manufacture must be certified by the FAA, the DoW and similar agencies in foreign countries and by individual manufacturers. If any existing material authorizations or approvals were revoked or suspended, our business and reputation would be adversely affected. In addition, if new and more stringent government regulations are adopted or if industry oversight increases, we might incur significant expenses to comply with any new regulations or heightened industry oversight.

We are at times required to obtain approval to export our products from U.S. government agencies and similar agencies elsewhere in the world. U.S. laws and regulations applicable to us include the Arms Export Control Act, the ITAR, the Export Administration Regulations ("EAR") and the sanctions administered by the U.S. Department of the Treasury's Office of Foreign Assets Control ("OFAC"). EAR restricts the export of commercial and dual-use products and technical data to certain countries, while ITAR restricts the export of defense products, technical data and defense services. Approval and license requirements change over time and could be affected by political factors and the then-current political environment. Failure to obtain required approval or licenses to export, or a determination by the U.S. government or similar agencies that we failed to receive required approvals or licenses to export, our products would eliminate or restrict our ability to sell our products and result in significant penalties, damages and fines and exclusion from future government contracts.

***Contracting in the defense industry is subject to significant regulation.***

Like all government contractors, including when we serve as a subcontractor to customers contracting with the U.S. government, we are subject to risks associated with this contracting. These risks include the potential for substantial civil and criminal fines and penalties. These fines and penalties could be imposed for failing to follow

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procurement integrity and bidding rules, employing improper billing practices or otherwise failing to follow cost accounting standards, receiving or paying kickbacks or filing false claims. We have been, and expect to continue to be, subjected to audits and investigations by government agencies. The failure to comply with the terms of our and our customers' government contracts could harm our reputation and result in our suspension or debarment from future contracts.

***Product liability lawsuits and product recalls could cause us to incur substantial liabilities and to limit the commercial potential of our products.***

We face an inherent risk of product liability and product recalls. If we cannot successfully defend ourselves against product liability claims, we may incur substantial liabilities or be required to limit or cease sales of our affected products. Even a successful defense would require significant financial and management resources. In addition, any product liability claims, regardless of outcome or basis, could damage our reputation for quality products, adversely affecting our ability to retain and attract customers. We currently carry product liability insurance in an amount that we believe is appropriate for our business. Although we maintain such insurance, any claim that may be brought against us could result in a court judgment or settlement in an amount that is not covered, in whole or in part, by our insurance or that is in excess of the limits of our insurance coverage. Our insurance policies also have various exclusions, and we may be subject to a product liability claim for which we have no coverage. We also may not be able to maintain insurance coverage in the future at an acceptable cost, or at all. Any liability not covered by insurance or for which third-party indemnification is not available could result in significant liability to us.

To the extent that a product fails to conform to its specifications or comply with the applicable laws or regulations, we may voluntarily or be required to conduct a product recall. Recalls are costly and take time and effort to administer and damage our reputation. Moreover, if any of our customers recall a product due to an issue with a product or component that we supplied, they may claim that we are responsible for such issue and may seek to recover the costs related to such recall or be entitled to certain contractual remedies from us. Recalls may further result in decreased demand for our or our customers' products, could cause our customers to return products to us for which we may be required to provide refunds or replacement products or could result in product shortages. Recalls may also require regulatory reporting and result in findings of noncompliance and regulatory enforcement actions.

***Litigation and other proceedings may adversely affect our business.***

From time to time, we are and may become involved in legal and regulatory proceedings relating to contract claims, product liability claims, occupational health and safety matters, employee compensation and other employment-related matters and other proceedings. See "Business—Legal Proceedings" and "Note 14. Commitments and Contingencies" to the Arxis Combined Financial Statements included elsewhere in this prospectus for more information regarding material litigation to which we are a party. Such claims may be in the form of individual or class actions and may be brought by affected persons or governmental authorities. Legal and regulatory proceedings are inherently unpredictable. The outcome of such proceedings, particularly class action lawsuits and regulatory actions, is difficult to assess or quantify and can result in excessive or unanticipated verdicts and/or injunctive relief that affect how we operate our business. We could incur judgments or enter into settlements of claims for monetary damages or for agreements to change the way we operate our business, or both. There may be an increase in the scope of these matters or there may be additional lawsuits, claims, proceedings or investigations in the future. Regardless of merit or outcome, these proceedings could result in substantial cost, require us to devote substantial resources to defend ourselves, create adverse publicity and damage our reputation, undermine our customers' confidence and reduce the demand for our products and services.

***Our employees or others acting on our behalf may engage in misconduct or other improper activities, which could cause us to lose contracts or cause us to incur costs.***

We are exposed to the risk that employee fraud or other misconduct from our employees or others acting on our behalf could occur. Misconduct could include fraud or other improper activities such as falsifying time or

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other records, and violations of laws and the failure to comply with our policies and procedures or with federal, state or local government procurement regulations, regulations regarding the use and safeguarding of classified or other protected information, legislation regarding the pricing of labor and other costs in government contracts, laws and regulations relating to environmental, health or safety matters, bribery of foreign government officials, import-export control, lobbying or similar activities and any other applicable laws or regulations. Any data loss or information security lapses resulting in the compromise of personal information or the improper use or disclosure of sensitive or classified information could result in claims, remediation costs, regulatory investigations or sanctions against us, corruption or disruption of our systems or those of our customers, impairment of our ability to provide services to our customers, loss of current and future contracts, indemnity obligations, serious harm to our reputation and other potential liabilities. Although we have implemented policies, procedures, training and other compliance controls to prevent and detect these activities, these precautions may not prevent all misconduct, and as a result, we could face unknown risks or losses. This risk of improper conduct may increase as we continue to expand and do business with new partners. Misconduct or other improper activities by our employees or others could damage our reputation and subject us to administrative, civil or criminal investigations and enforcement actions, fines and penalties, restitution or other damages including civil False Claims Act allegations (which can include civil penalties and treble damages), loss of security clearance, loss of current and future customer contracts, loss of privileges and other sanctions, including suspension or debarment from contracting with federal, state or local government agencies, any of which would materially adversely affect our reputation, business, results of operations, prospects and financial condition.

***We could incur substantial costs as a result of violations of or liabilities under environmental laws and regulations.***

Our operations and facilities are subject to a number of federal, state, local and foreign environmental laws and regulations that govern, among other things, discharges of pollutants into the air and water, the generation, handling, storage and disposal of hazardous materials and wastes, the remediation of contamination and the health and safety of our employees. Environmental laws and regulations may require that we investigate and remediate the effects of the release or disposal of materials at sites associated with past and present operations, and compliance with these existing and evolving environmental laws and regulations requires and is expected to continue to require significant operating and capital costs. We may be subject to substantial administrative, civil or criminal fines, penalties or other sanctions (including suspension and debarment) for violations. In addition, as we enter into strategic acquisitions and investments, we may be subject to additional environmental risk, obligations and liabilities which may or may not be known to us at the time of such strategic acquisitions or investments. For example, in connection with the Arxis Businesses Transaction, we assumed certain liabilities of Ovation TopCo L.P. related to environmental investigations and potential obligations to perform remediations. We have accrued amounts on our balance sheet related to these environmental investigations and remediations as described in further detail in "Note 14. Commitments and Contingencies" to the Arxis Combined Financial Statements. However, there can be no assurances that these accruals will be sufficient or that these matters will not have an adverse effect on our reputation, business, results of operations, prospects and financial condition.

Governmental authorities in the U.S. and abroad are increasingly focused on potential contamination resulting from the use of certain chemicals, most notably per- and polyfluoroalkyl substances ("PFAS"). As is common in our industry, certain of our products use PFAS. As a result, we may incur costs related to materials management and historic usage and disposal of PFAS-containing materials, transitioning away from the usage of PFAS-containing products, reporting the historical usage of PFAS and remediating any environmental impacts.

Estimates of our environmental liabilities are subject to uncertainties regarding the nature and extent of site contamination, the range of remediation alternatives available, evolving remediation standards, including changes in law and regulation, imprecise engineering evaluations and cost estimates, the extent of corrective actions that may be required and the number and financial condition of other potentially responsible parties, as well as the extent of their responsibility for the remediation. Accordingly, as any investigations and remediations

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proceed, it is likely that adjustments in our accruals will be necessary to reflect new information. The amounts of any such adjustments could have a material adverse effect on our results of operations or cash flows in a given period.

We may also become a party to legal proceedings and disputes involving government and private parties (including individual and class actions) relating to alleged impacts from pollutants released into the environment, including bodily injury and property damage. These matters could result in material compensatory or other damages, remediation costs, penalties, non-monetary relief and adverse allowability or insurance coverage determinations. The impact of these factors is difficult to predict, but one or more of them could harm our reputation and business and have a material adverse effect on our results of operations, prospects and financial condition.

***Regulations designed to address climate change may result in additional compliance costs.***

Our operations and products and those of our customers are currently subject to rules limiting emissions and to other climate-related regulations in certain jurisdictions where we operate. The increased prevalence of global climate change concerns may result in new regulations that may negatively impact us, our suppliers and customers. We cannot predict what environmental legislation or regulations will be enacted in the future, how existing or future laws or regulations will be administered or interpreted or what environmental conditions may be found to exist. Compliance with any new or more stringent laws or regulations, or stricter interpretations of existing laws, could require additional expenditures by us, our suppliers and our customers, resulting in increases in the costs of raw materials and component parts and reduced demand for our products and services.

**Risks Related to Intellectual Property** 

***We may be unable to adequately obtain, maintain, protect and enforce our intellectual property and proprietary rights on which our business depends.***

Our business depends in part on our ability to seek, obtain, maintain, protect and enforce our IP and other proprietary rights, including with respect to our proprietary design, manufacturing processes, databases, confidential information and know-how. We rely on, and expect to continue to rely on, a combination of trademark, trade dress, domain name, copyright, patent, trade secret and unfair competition laws in the U.S. and similar laws in other countries, as well as confidentiality and license agreements with our employees, contractors, consultants and third parties with whom we have relationships to establish, maintain and protect our IP rights. We may, over time, strategically increase our IP investment through additional trademark, patent and other IP filings, which could be expensive and time-consuming and are not guaranteed to result in the issuance of registrations. In addition to registering material and eligible IP, we rely to a degree on contractual restrictions to prevent others from exploiting our IP rights. IP laws vary by jurisdiction and we may be unable to maintain, protect or enforce our proprietary rights adequately in all cases, or do so without undue cost.

Our efforts to establish, maintain, protect and enforce our IP rights may not be sufficient or effective. Our IP rights, including rights in our proprietary design and manufacturing processes and trade secrets, could be lost through misappropriation or breach of our confidentiality and license agreements. Moreover, any of our IP rights may be circumvented, infringed, diluted, disclosed, misappropriated, challenged or otherwise violated, which could result in them being narrowed in scope or declared invalid or unenforceable. There can be no assurance that our IP rights will be sufficient to protect against others offering products or technologies that are substantially similar to ours and that compete with our business.

Further, IP protection may not be available to us in every country in which our products are available, and the laws of certain countries do not protect proprietary rights to the same degree as the laws of the U.S. Therefore, in certain jurisdictions, we may be unable to protect our IP adequately against unauthorized third-party copying, infringement or use, which could adversely affect our competitive position.

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Our reliance on proprietary information, such as trade secrets, know-how and confidential information, depends in part on agreements we have in place with employees, independent contractors and other third parties that allocate ownership of IP and place restrictions on the use and disclosure of this IP and confidential information, such as confidentiality and invention assignment agreements. We require third parties who may have access to our proprietary information, such as trade secrets, know-how and confidential information, to enter into non-disclosure agreements or to be bound by professional, fiduciary or other contractual obligations requiring the applicable third party to protect our trade secrets, know-how and confidential information. These agreements may be insufficient or may be breached, especially after our employees or third parties end their employment or engagement with us, in either case potentially resulting in the unauthorized use or disclosure of our proprietary information, such as trade secrets, know-how and confidential information, including to our competitors, which could cause us to lose any competitive advantage resulting from this IP, and we cannot be certain that we will have adequate remedies for any breach. Enforcing a claim that a party illegally disclosed or misappropriated a trade secret or know-how is difficult, expensive and time-consuming, and the outcome is unpredictable. In addition, trade secrets and know-how can be difficult to protect and some courts inside and outside the U.S. are less willing or unwilling to protect trade secrets and know-how. We cannot guarantee that we have entered into such agreements with each party that may have or have had access to our proprietary information, such as trade secrets, know-how and confidential information, or otherwise developed IP for us. Individuals and entities not subject to invention assignment agreements may make adverse ownership claims to our current and future IP, and, to the extent that our employees, independent contractors or other third parties with whom we do business use IP owned by others in their work for us, disputes may arise as to the rights in related or resulting know-how and inventions. Failure to obtain, maintain or protect proprietary information, such as trade secrets, know-how and other confidential information, could adversely impact our business. Additionally, employees, independent contractors and other third parties may make adverse ownership claims to our current and future IP, and, to the extent that our employees, independent contractors or other third parties with whom we do business use IP owned by others in their work for us, disputes may arise as to the rights in related or resulting know-how and inventions. Furthermore, competitors or other third parties may independently discover our trade secrets, copy or reverse engineer our products or portions thereof or develop similar technology.

***We may be subject to claims for alleged infringement, misappropriation or other violation of others' intellectual property and proprietary rights, and we may incur significant costs in our efforts to successfully avoid, manage, defend and litigate intellectual property matters.***

We also may be subject to claims of infringement, misappropriation or other violation of IP and proprietary rights from third parties. IP litigation and disputes are often complex and uncertain. This risk has been amplified by the increase in "non-practicing entities" or patent holding companies that seek to monetize patents they have purchased or otherwise obtained and whose sole or primary business is to assert such claims. Our IP portfolio may not be useful in asserting a counterclaim, or negotiating a license, in response to a claim of infringement, misappropriation or other violation. Such claims, whether or not meritorious, may result in the expenditure of significant financial and managerial resources, injunctions against us, payment of damages, including treble damages if we were found to be willfully infringing on ongoing royalty payments and significant settlement payments, including to satisfy indemnification obligations. Such claims may require us to temporarily or permanently cease engaging in certain activities or offering certain products or services in some or all jurisdictions, develop or substitute non-infringing technologies, redesign affected products, which may not be commercially feasible and may require us to incur substantial cost, or enter into costly settlement, royalty or licensing agreements, which may not be available on commercially reasonable or favorable terms, or at all.

We may engage in legal action to enforce, defend or protect our IP rights. Our efforts to enforce our IP rights in this manner may be met with defenses, counterclaims and countersuits attacking the validity and enforceability of our IP rights. Generally, IP litigation is expensive, time-consuming and unpredictable. Our involvement in IP litigation could divert the attention of our management and technical personnel, expose us to significant liability and have a material, adverse effect on our business.

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***Our proprietary software may not operate properly, which could damage our reputation, give rise to claims against us or divert application of our resources from other purposes, any of which could harm our business.***

Proprietary software development is time-consuming, expensive and complex, and may involve unforeseen difficulties. We may encounter technical obstacles, and it is possible that we may discover additional problems that prevent our proprietary software from operating properly. For example, errors or other design defects within the software on which we rely may result in failure to comply with applicable laws and regulations, a negative experience for customers, delayed introductions of new features or enhancements or failure to protect data or our IP. If our proprietary applications do not function reliably or fail to achieve customer expectations in terms of performance, we may lose or fail to grow in customer usage and customers could assert liability claims against us. This could damage our reputation and impair our ability to attract or maintain relationships with our customers and third parties.

***Our proprietary software contains, or may in the future contain, open source software, which may pose particular risks to our proprietary software and services in a manner that could have a material and adverse effect on our business, financial condition and results of operations.***

We use open source software in connection with our proprietary software and anticipate using open source software in the future. The terms of certain open source licenses to which we are subject have not been interpreted by U.S. or foreign courts, and there is a risk that open source software licenses could be construed in a manner that imposes unanticipated conditions or restrictions on our platform. While we monitor our use of open source software and try to ensure that none is used in a manner that would require us to disclose our proprietary source code or that would otherwise breach the terms of an open source agreement, such use could inadvertently occur, or could be claimed to have occurred, in part because open source license terms are often ambiguous. Additionally, we could face claims from third parties claiming ownership of, or demanding release of, any open source software or derivative works that we have developed using such software, which could include proprietary source code, or otherwise seeking to enforce the terms of the applicable open source license. These claims could result in litigation and could require us to make our software source code freely available, purchase a costly license or cease offering our products or services unless and until we can re-engineer such source code in a manner that avoids infringement. This re-engineering process could require us to expend significant additional research and development resources, and we may not be able to complete the re-engineering process successfully. In addition to risks related to license requirements, use of certain open source software can lead to greater risks than use of third-party commercial software, as open source licensors generally do not provide support, warranties, indemnification or other contractual protection regarding infringement claims or the quality of the code. There is little legal precedent in this area and any actual or claimed requirement to disclose our proprietary source code or pay damages for breach of contract could harm our business and could help third parties, including our competitors, develop technology that is similar to or better than ours. Any of the foregoing could adversely affect our business, financial condition and results of operations.

***We currently license and may in the future license third-party intellectual property.***

We currently license and may in the future license certain IP rights from third parties. While we believe, based upon past experience and standard industry practice, that such licenses generally could be obtained and maintained on commercially reasonable terms, there can be no assurance that our existing or future third-party licenses will be available to us on commercially reasonable terms, if at all. Our ability to comply with such license terms may be affected by factors that we can only partially influence or control. If any of our third-party licensors are acquired by our competitors, the applicable licensed IP may no longer be available to us or available only on less favorable terms, which could adversely impact our business, results of operations and financial condition.****** Further, if we fail to comply with any of our obligations under such agreements, we may be required to pay damages, and the licensor may have the right to terminate the license. Termination by the licensor would cause us to lose valuable rights, and could prevent us from selling our products and services or inhibit our ability to commercialize future systems. Our business would suffer if any current or future licenses terminate, if the

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licensors fail to abide by the terms of the license, if the licensors fail to enforce licensed IP rights against infringing third parties, if the licensed IP rights are found to be infringing third-party rights, or if we are unable to enter into necessary licenses on acceptable terms. In addition, the agreements under which we license IP from third parties are generally complex, and certain provisions in such agreements may be susceptible to multiple interpretations. The resolution of any contract interpretation disagreement that may arise could narrow what we believe to be the scope of our rights to the relevant IP, or increase what we believe to be our financial or other obligations under the relevant agreement. Defense of any lawsuit or failure to obtain any of these licenses on favorable terms could prevent us from commercializing our products and services. Our inability to maintain or obtain any third-party license required to sell or develop our products and services, or the need to engage in litigation regarding our third-party licenses, could have a material adverse effect on our business, operating results and financial condition.

**Risks Related to the Reorganization** 

***The historical combined and unaudited supplemental pro forma financial information included in this prospectus is not necessarily representative of the results that we would have achieved as a combined company and may not be indicative of future results.***

The historical combined and unaudited supplemental pro forma financial information in this prospectus may not reflect our business' combined results of operations, financial position and cash flows had it been a combined company during the periods presented and may not be indicative of those that we will achieve following the Reorganization. Actual financial results that would have been achieved if our business had been a combined company would depend on multiple factors, including the integration of functions and processes across the Arxis Businesses, changes in our personnel needs, tax structure, financing and business operations, changes in our financial resources and sources and cost of capital and our need to enter into agreements as a combined company. With respect to the unaudited supplemental pro forma financial information, we have made certain adjustments to the historical combined financial information based upon available information and upon estimates and assumptions that our management believes are reasonable in order to reflect, on a pro forma basis, the impact of the Historical Acquisitions, the Kaman Acquisition and the Arxis Businesses Transaction (each as defined herein) as if each such transaction occurred on January 1, 2024. However, these estimates are predicated on assumptions, judgments and other information that are inherently uncertain. See the notes to the supplemental pro forma financial information in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Unaudited Supplemental Pro Forma Information." As a result, such historical combined and unaudited supplemental pro forma financial information is not necessarily representative of our results of operations or financial condition had we operated as a combined company for the periods presented and may not be indicative of our results of operations or financial condition for any future period.

***We may not realize the anticipated benefits from the Reorganization.***

The benefits that we expect to achieve as a result of the Reorganization will depend, in part, on our ability to realize anticipated cost savings and synergies. As a combined company, we believe that we will be able to, among other things, save on our costs as a result of greater purchasing power and economies of scale, streamline administrative and general corporate functions and implement and maintain a capital structure designed to meet our specific needs and industry dynamics. A variety of risks could cause us not to realize some or all of the expected benefits. These risks include the creation of a new organizational structure, changes in processes and information systems, dis-synergies from the Reorganization and changes to our operating model. Even if we are able to execute this transition successfully, this may not result in the full realization of the benefits that we currently expect, either within the expected time frame, or at all. In addition, the costs to achieve the anticipated benefits may be higher than we currently anticipate.

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***We have incurred, and expect to continue to incur, significant transaction costs in connection with the Reorganization.***

In connection with the Reorganization, we have incurred and expect to continue to incur significant costs and expenses, including financial advisory, legal, accounting, consulting and other advisory fees and expenses, reorganization and restructuring costs and other related expenses. We are not able to quantify the exact amount of these expenses or the period in which they will be incurred. Some of the factors affecting the costs associated with the Reorganization include the timing of the completion of the Reorganization, the structure and execution of the Reorganization and the resources required to transition and integrate the Arxis Businesses into a single combined organization. There may also be additional unanticipated significant costs in connection with the Reorganization that we do not currently anticipate. These costs and expenses could reduce the benefits we expect to achieve from the Reorganization.

**Risks Related to Our Class A Common Stock and This Offering** 

***We will incur significantly increased costs and devote substantial management time as a result of operating as a public company.***

As a public company, we will incur significant legal, accounting and other expenses that we do not incur as a private company. For example, we will be subject to the reporting requirements of the Exchange Act, and will have to comply with the applicable requirements of the Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as SEC rules and regulations and stock exchange listing standards, including the establishment and maintenance of effective disclosure and financial controls, changes in corporate governance practices and required filing of annual, quarterly and current reports with respect to our business and results of operations. We expect that compliance with these requirements will increase our legal and financial compliance costs and will make some activities more time-consuming and costly. In addition, we expect that our management and other personnel will need to divert attention from operational and other business matters to devote substantial time to these public company requirements. If we are unable to satisfy our obligations as a public company, our Class A common stock could be delisted and we could be subject to fines, sanctions, regulatory action and lawsuits.

We also expect that operating as a public company will make it more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced coverage or incur substantially higher costs to obtain coverage. This could also make it more difficult for us to attract and retain qualified people to serve on our board of directors, on our board committees or as executive officers.

***Our Sponsor will continue to have substantial control over us after this offering and could limit your ability to influence the outcome of key transactions, including a change of control.***

Upon completion of this offering, we will have four authorized series of common stock: Class A common stock, which is entitled to one vote per share on all matters on which our stockholders generally are entitled to vote; Class B common stock, which is entitled to twenty votes per share on all matters on which our stockholders generally are entitled to vote; Class C common stock, which is not entitled to vote on any matter on which our stockholders generally are entitled to vote, in each case, except as otherwise provided in our amended and restated certificate of incorporation or as required by applicable law; and convertible common stock which will be entitled to vote as described in "Description of Capital Stock—Convertible Common Stock Issued to Arcline Investment Management, L.P." Holders of our common stock vote together as a single class on all matters on which our stockholders generally are entitled to vote, except as otherwise provided in our amended and restated certificate of incorporation or as required by applicable law. Immediately following the completion of this offering, our Sponsor will beneficially own common stock with % of the total voting power of our outstanding common stock (or % of the total voting power of our outstanding common stock if the underwriters exercise their option to purchase additional shares in full). In addition, in connection with this offering, we intend to enter into a stockholders agreement with our Sponsor, pursuant to which our

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Sponsor will have certain director nomination rights, information rights and consent rights with respect to certain of our actions, including mergers and other extraordinary transactions, as long as our Sponsor and its permitted transferees beneficially own common stock representing at least 10% of the total voting power of our outstanding common stock. See "Certain Relationships and Related-Party Transactions—Stockholders Agreement." As a result, our Sponsor will be able to control certain matters requiring approval by our stockholders, including the election of directors and the approval of mergers or other extraordinary transactions. Our Sponsor may also have interests that differ from yours and may vote or exercise its rights under the stockholders agreement in a way with which you disagree and which may be adverse to your interests. The concentration of voting power and the rights granted under the stockholders agreement may have the effect of delaying, preventing or deterring a change of control of our Company, could deprive our stockholders of an opportunity to receive a premium for their Class A common stock as part of a sale of our Company and might ultimately affect the market price of our Class A common stock.

***We will be required to pay Arcline Investment Management, L.P. and any other persons that become parties to the Tax Receivable Agreement for certain tax benefits we may receive.***

Arxis will enter into a Tax Receivable Agreement with Arcline Investment Management, L.P. whereby we will pay to Arcline Investment Management, L.P. 85% of the cash tax savings we realize with respect to the compensation deduction resulting from the transfer of the convertible common stock in respect of the services to be provided under the amended and restated advisory and consulting services agreement. Actual tax benefits realized by Arxis may differ from tax benefits calculated under the Tax Receivable Agreement as a result of the use of certain assumptions in the Tax Receivable Agreement, including the use of an assumed weighted-average state and local income tax rate to calculate tax benefits. The compensation deduction is expected to be recognized in the year the convertible common stock is issued. Payment under the Tax Receivable Agreement is due 125 days following the filing of our U.S. federal income tax return that reflects the applicable cash tax savings, subject to Arcline Investment Management, L.P.'s continued provision of services under the amended and restated advisory and consulting services agreement at the time of payment. We will have no further obligation to make payments in respect of tax benefits under the Tax Receivable Agreement upon the earliest of (i) all payments required under the Tax Receivable Agreement having been made, (ii) the election of an early termination by the independent members of our board and our making of the corresponding early termination payment and (iii) the termination of the amended and restated advisory and consulting services agreement.

Assuming no material changes in the relevant tax law and that we earn sufficient taxable income to realize all tax benefits that are subject to the Tax Receivable Agreement, we expect the payments that we may make to the existing parties to the Tax Receivable Agreement to be approximately $ based on an initial public offering price of $ per share of our Class A common stock, which is the midpoint of the price range set forth on the cover page of this prospectus. The payments we will be required to make under the Tax Receivable Agreement will principally depend on the value of convertible common stock and the prevailing federal tax rates applicable to us over the life of the Tax Receivable Agreement (as well as the assumed combined state and local tax rate). Estimating the amount and timing of our realization of tax benefits subject to the Tax Receivable Agreement is by its nature imprecise. For purposes of the Tax Receivable Agreement, net cash savings in tax generally will be calculated by comparing our actual tax liability (determined by using the actual applicable U.S. federal income tax rate and certain simplifying assumptions with respect to state and local income taxes) to the amount it would have been required to pay had it not been able to utilize any of the deduction subject to the Tax Receivable Agreement.

Payments under the Tax Receivable Agreement may reduce cash that would otherwise be available for other uses and for the benefit of all stockholders. Additionally, our obligations under the Tax Receivable Agreement may create potential conflicts of interest between the interests of Arcline Investment Management, L.P. and those of our other shareholders, particularly in connection with decisions related to tax planning, business investments, and the allocation of future cash flows.

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Payments under the Tax Receivable Agreement will be based on certain tax reporting positions regarding a compensation deduction in respect of the convertible common stock, and the Internal Revenue Service or another tax authority may challenge the positions upon which payment under the Tax Receivable Agreement are based, as well as other related tax positions we take, and a court could sustain such challenge. Arcline Investment Management, L.P. will not reimburse us for any payments previously made if such positions are successfully challenged. As a result, in such circumstances, we could make payments to the TRA Parties under the Tax Receivable Agreement that are greater than our actual cash tax savings and we may not be able to recoup those payments, which could materially adversely affect our liquidity.

The Tax Receivable Agreement will provide that (1) in the event that we breach any of our material obligations under the Tax Receivable Agreement or (2) if, with the written approval of a majority of our independent directors, we elect an early termination of the Tax Receivable Agreement, our obligations under the Tax Receivable Agreement would accelerate and become payable in a lump sum amount equal to the present value of the anticipated future tax benefits calculated based on certain assumptions, including that we would have sufficient taxable income to fully utilize the deduction subject to the Tax Receivable Agreement. Because the deduction subject to the Tax Receivable Agreement is expected to be utilized in the year of our initial public offering or the following year, we do not expect a breach or early termination election to meaningfully affect our obligations under the Tax Receivable Agreement. However, it is possible that a payment under the Tax Receivable Agreement in one of these situations could be made in advance of, and may be in excess of, the cash savings to which such a payment relates.

Our obligations under the Tax Receivable Agreement will also apply with respect to any person that becomes a party to the Tax Receivable Agreement in the future.

Finally, because we are a holding company with no operations of our own, our ability to make payments under the Tax Receivable Agreement depends on the ability of our subsidiaries to make distributions to us. There can be no assurance that we will be able to meet our obligations under the Tax Receivable Agreement. To the extent that we are unable to make payments under the Tax Receivable Agreement for any reason, such payments will accrue interest until paid and nonpayment may constitute a breach of a material obligation under the Tax Receivable Agreement and therefore accelerate payments due under the Tax Receivable Agreement, which could negatively impact our results of operations.

***Our convertible common stock is convertible into Class B common stock (or, if no shares of Class B common stock are outstanding at the time of such voluntary conversion, shares of Class A common stock), and prior to conversion participates on an as-converted basis, which will have the effect of diluting the economic and voting interests of holders of our Class A common stock and may adversely affect the market price of our Class A common stock.***

Our convertible common stock will be convertible into a number of shares of our Class B common stock (or Class A common stock if no Class B common stock is outstanding at the time of such conversion) on the terms and conditions described under "Description of Capital Stock—Convertible Common Stock Issued to Arcline Investment Management, L.P." In addition, prior to satisfaction of the Conversion Conditions (as defined in "Description of Capital Stock—Convertible Common Stock Issued to Arcline Investment Management, L.P."), each holder of convertible common stock is entitled to vote, to consent, to receive dividends, if any, to receive notices as stockholders with respect to any meeting of stockholders and to exercise any rights whatsoever as our stockholders in an amount of equal to the number of Class B shares that represent 1.25% of the Company's fully diluted capital stock. After satisfaction of the Conversion Conditions, if ever, each holder of convertible stock is entitled, on an as-converted basis, to vote, to consent, to receive dividends, if any, to receive notices as stockholders with respect to any meeting of stockholders and to exercise any rights whatsoever as our stockholders until they become holders of the shares of our common stock issued upon conversion of the convertible common stock.

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The conversion of the share of convertible common stock into shares of Class B common stock (or, if no shares of Class B common stock are outstanding at the time of such voluntary conversion, shares of Class A common stock) would dilute the economic ownership interests of existing stockholders, including holders of our Class A common stock.

Furthermore, because shares of Class B common stock will carry greater voting power than shares of our Class A common stock and shares of our convertible common stock are entitled to vote as described above, the voting power of the current holder of the share of convertible common stock, Arcline Investment Management, L.P., the Sponsor, will be disproportionately increased, further increasing the ability of the Sponsor to significantly influence or control the outcome of matters submitted to a vote of stockholders. This concentration of voting power could limit the ability of holders of Class A common stock to influence corporate matters and may have the effect of discouraging certain transactions, including changes of control, that holders of Class A common stock might otherwise view as beneficial. Furthermore, the existence of the share of convertible common stock, the issuance of shares of Class B common stock upon conversion, or the perception that such conversion may occur, could adversely affect the market price of our Class A common stock and increase volatility in the trading price of our securities.

In addition, as noted above, the share of convertible common stock may in the future be convertible into Class A common stock if no shares of Class B common stock are outstanding at the time of such voluntary conversion. Any sales in the public market of the Class A common stock issuable upon such conversion could adversely affect prevailing market prices of our Class A common stock. In addition, the anticipated conversion of the convertible common stock into shares of our Class A common stock could adversely affect the market price of our Class A common stock and increase volatility in the trading price of our securities.

***We will be a "controlled company" within the meaning of Nasdaq corporate governance standards and, as a result, we will qualify for, and intend to rely on, exemptions from certain corporate governance requirements. You will not have the same protections afforded to stockholders of companies that are subject to such requirements.***

After the consummation of this offering, we will be a "controlled company" under Nasdaq corporate governance standards. Under the Nasdaq corporate governance standards, a company of which more than 50% of the voting power is held by an individual, group or another company is a "controlled company" and may elect not to comply with certain corporate governance requirements. We intend to avail ourselves of certain of these exemptions available to controlled companies, including (i) the requirement that a majority of the board of directors consist of independent directors, (ii) the requirement that we have a compensation committee that is composed entirely of independent directors and (iii) the requirement that we have a nominating/corporate governance committee that is composed entirely of independent directors. Consequently, holders of our Class A common stock will not have the same protections afforded to stockholders of companies that are subject to all Nasdaq corporate governance requirements. Our status as a controlled company could make our Class A common stock less attractive to some investors or otherwise harm our stock price.

***Our amended and restated certificate of incorporation will contain a provision renouncing our interest and expectancy in certain corporate opportunities.***

Our amended and restated certificate of incorporation will provide for the allocation of certain corporate opportunities between us and our Sponsor and its affiliates. Under these provisions, our Sponsor and its affiliates will not have any duty to refrain from directly or indirectly engaging in the same or similar business activities or lines of business in which we or any of our affiliates engages or proposes to engage or otherwise competing with us or any of our affiliates. For instance, a non-employee director may pursue certain acquisition or other opportunities that may be complementary to our business and, as a result, such acquisition or other opportunities may not be available to us. These potential conflicts of interest could have a material adverse effect on our financial performance, financial position and results of operations if attractive corporate opportunities are

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allocated by our Sponsor to itself or its affiliates or subsidiaries instead of to us. See "Description of Capital Stock—Corporate Opportunities."

***There may not be an active, liquid trading market for our Class A common stock.***

Prior to this offering, there has been no public market for shares of our Class A common stock. We cannot predict the extent to which investor interest in our company will lead to the development of a trading market on the Nasdaq or how liquid that market may become. If an active trading market does not develop, you may have difficulty selling any of our Class A common stock that you purchase.

***The multi-series structure of our common stock may depress the trading price and liquidity of our Class A common stock.***

The multi-series structure of our common stock may result in a lower or more volatile market price of our Class A common stock or other adverse consequences. For example, certain index providers restrict inclusion of companies with multi-series structures in certain of their indexes. In addition, certain proxy advisory firms oppose the use of multi-series structures. As a result, the multi-series structure of our common stock may prevent the inclusion of our Class A common stock in certain indices and may cause proxy advisory firms to publish negative commentary about our corporate governance practices or otherwise seek to cause us to change our capital structure, which could result in a less active trading market for our Class A common stock and adversely affect the value of our Class A common stock. In addition, the difference in the voting rights of the series of our common stock could harm the value of our Class A common stock to the extent that any investor or potential future purchaser of our Class A common stock ascribes value to the superior voting power of our Class B common stock.

***The market price of our Class A common stock may fluctuate significantly, and you may not be able to resell your shares at or above the initial public offering price.***

The initial public offering price of shares of our Class A common stock is, or will be, determined by negotiation between us and the underwriters and may not be indicative of prices that will prevail following the completion of this offering. The market price of shares of our Class A common stock may decline below the initial public offering price, and you may not be able to resell your shares of our Class A common stock at or above the initial public offering price. The trading price of our Class A common stock may be volatile and subject to wide price fluctuations in response to various factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• market conditions in the broader stock market in general, or in our industry in particular;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual or anticipated fluctuations in our quarterly financial and operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• introduction of new products and services by us or our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• issuance of new or changed securities analysts' reports or recommendations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales of large blocks of our stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• additions or departures of key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• litigation and governmental investigations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• economic and political conditions or events; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the other factors described in this "Risk Factors" section.

These and other factors may cause the market price and demand for our Class A common stock to fluctuate substantially, which may limit or prevent investors from readily selling their shares of Class A common stock

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and may otherwise negatively affect the liquidity of our Class A common stock. In addition, in the past, when the market price of a stock has been volatile, holders of that stock have instituted securities class action litigation against the company that issued the stock. If any of our stockholders brought a lawsuit against us, we could incur substantial costs defending the lawsuit. Such a lawsuit could also divert the time and attention of our management from our business.

***If securities or industry analysts do not publish research or reports about our business, or if they issue adverse or misleading opinions regarding our stock, our stock price and trading volume could decline.***

The trading market for our Class A common stock may be influenced by the research and reports that industry or securities analysts publish about us or our business. If no or few securities or industry analysts commence coverage of us, the trading price for our Class A common stock would be negatively impacted. In the event we obtain securities or industry analyst coverage, if one or more of these analysts cease coverage of our company or fail to publish reports on us regularly, we could lose visibility in the financial markets, which in turn could cause our stock price or trading volume to decline. Moreover, if one or more of the analysts who cover us downgrade our stock, or if our results of operations do not meet their expectations, our stock price could decline.

***If a substantial number of shares become available for sale and are sold in a short period of time, the market price of our Class A common stock could decline.***

Sales of a substantial number of shares of Class A common stock in the public market, or the perception in the market that the holders of a large number of shares of Class A common stock (or securities convertible into shares of Class A common stock) intend to sell shares, could reduce the market price of our Class A common stock. Upon completion of this offering, we will have shares of Class A common stock outstanding (or shares of Class A common stock if the underwriters exercise their option to purchase additional shares in full), shares of Class B common stock outstanding, no shares of Class C common stock outstanding and one share of convertible common stock outstanding. All shares sold in this offering will be freely transferable without restriction or registration under the Securities Act, except for any shares purchased by one of our "affiliates," as that term is defined in Rule 144 under the Securities Act. Substantially all of the remaining shares are currently restricted as a result of securities laws or lock-up agreements described in the "Underwriting" section of this prospectus but will become eligible to be sold at various times following the completion of this offering. After the expiration of the lock-up agreement, such shares may be sold in the market, including by persons who receive such shares upon distribution by entities affiliated with our Sponsor. Moreover, the holders of approximately shares of Class A common stock (or securities convertible into such shares of Class A common stock) will be entitled to registration rights with respect to their shares. Registration of these shares under the Securities Act would enable the holders to sell these shares without restriction under the Securities Act upon the effectiveness of the registration statement. We also intend to register all shares of Class A common stock that we may issue under our equity compensation plans. Once we register these shares, they can be freely sold in the public market upon issuance, subject to volume limitations applicable to affiliates and the lock-up agreements described in the "Underwriting" section of this prospectus. If a substantial number of shares become available for sale or are sold in a short period of time, the market price of our Class A common stock could decline.

***Some provisions of Delaware law and our amended and restated certificate of incorporation and bylaws may deter third parties from acquiring us.***

Our amended and restated certificate of incorporation and bylaws will provide for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• four series of common stock with disparate voting power;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• after our Sponsor and its permitted transferees cease to beneficially own common stock representing a majority of
the total voting power of our outstanding common stock, a staggered board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrictions on the ability of our stockholders to fill a vacancy on the board of directors;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the authorization of undesignated preferred stock, the terms of which may be established and shares of which may
be issued without stockholder approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• after our Sponsor and its permitted transferees cease to beneficially own common stock representing a majority of
the total voting power of our outstanding common stock, a prohibition on stockholder action by written consent, thereby requiring all actions to be taken at a duly called meeting of the stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• supermajority approval to amend our bylaws and certain provisions of our certificate of incorporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• advance notice requirements for stockholder proposals.

Moreover, because we are incorporated in Delaware, we are governed by Section 203 of the Delaware General Corporation Law, which prohibits a person who owns in excess of 15% of our outstanding voting stock from merging or combining with us for a period of three years after the date of the transaction in which the person acquired in excess of 15% of our outstanding voting stock, unless the merger or combination is approved in a prescribed manner.

These anti-takeover defenses could discourage, delay or prevent a transaction involving a change in control of our company and may discourage bids for our Class A common stock at a premium over its market price. These provisions could also discourage proxy contests and make it more difficult for you and other stockholders to elect directors of your choosing and cause us to take other corporate actions than you desire.

***Our amended and restated certificate of incorporation will provide that the Court of Chancery of the State of Delaware and the U.S. federal courts are the exclusive forums for substantially all disputes between us and our stockholders.***

These forum selection provisions may impose additional litigation costs on stockholders in pursuing any such claims, particularly if the stockholders do not reside in or near the State of Delaware and limit a stockholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers or other employees, which may discourage lawsuits against us and our directors, officers and other employees, although our stockholders will not be deemed to have waived our compliance with federal securities laws and the rules and regulations thereunder.

While Delaware courts have determined that forum selection provisions are facially valid, it is possible that a court of law in another jurisdiction could rule that the forum selection provisions contained in our amended and restated certificate of incorporation are inapplicable or unenforceable if they are challenged in a proceeding or

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otherwise. If a court were to find the forum selection provision in our amended and restated certificate of incorporation to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions. 

***We do not anticipate paying any cash dividends in the foreseeable future.***

We intend to retain all available funds and any future earnings, if any, to fund the development and expansion of our business, and we do not anticipate paying any cash dividends in the foreseeable future. The declaration, amount, and payment of any future dividends will be at the sole discretion of our board of directors, and will depend on, among other things, our results of operations, financial condition, capital requirements, contractual restrictions, business prospects and other factors our board of directors may deem relevant. As a result, capital appreciation in the price of our Class A common stock, if any, will be your only source of gain on an investment in our Class A common stock.

***Investors in this offering will experience immediate and substantial book value dilution after this offering.***

The initial public offering price of our Class A common stock will be substantially higher than the pro forma as adjusted net tangible book value per share immediately after the offering. As a result, if you purchase our Class A common stock in this offering, you will suffer immediate dilution. See "Dilution." As a result of this dilution, investors in this offering may receive significantly less than the full purchase price that they paid for the shares purchased in this offering in the event of a liquidation. To the extent that new awards are granted under our stock-based compensation plans or we issue additional shares of common stock in the future, there will be further dilution to investors participating in this offering. In particular, we may issue shares of common stock in connection with acquisitions and strategic investments, and the number of shares issued in connection therewith could be material.

***We will have broad discretion in the use of the net proceeds to us from this offering and may not use them effectively.***

Our board of directors and management will retain broad discretion in the application, and timing of the application, of the net proceeds to us from this offering and could spend such net proceeds in ways that do not improve our results of operations or enhance the value of our Class A common stock. There can be no assurance regarding the results and the effectiveness of our use of the net proceeds to us from this offering.

***Any future issuance of our Class C common stock may have the effect of further concentrating voting control in our Class B common stock, may discourage potential acquisitions of our business and could have an adverse effect on the market price of our Class A common stock.***

Any future issuance of our Class C common stock may have the effect of further concentrating voting control in our Class B common stock, may discourage potential acquisitions of our business and could have an adverse effect on the market price of our Class A common stock. Although we have no current plans to issue any shares of our Class C common stock, we may in the future issue shares of our Class C common stock for a variety of corporate purposes, including financings, acquisitions, investments and equity incentives to our employees, consultants and directors. Our authorized but unissued shares of Class C common stock are available for issuance with the approval of our board of directors without stockholder approval, except as may be required by Nasdaq corporate governance standards. Because our Class C common stock carries no voting rights on matters on which stockholders generally are entitled to vote (except as otherwise provided by our amended and restated certificate of incorporation or otherwise required by applicable law), if we issue shares of our Class C common stock in the future, the holders of our Class B common stock may be able to hold significant voting control over most matters submitted to a vote of our stockholders for a longer period of time than would be the case if we issued our Class A common stock rather than our Class C common stock in such transactions. In addition, our Class C common stock will automatically convert into Class A common stock on a one-for-one

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basis upon the earliest to occur of (i) the date on which no shares of Class B common stock are outstanding and (ii) the affirmative vote of the holders of a majority of the then-outstanding shares of Class B common stock entitled to vote thereon, voting separately as a class. If we issue shares of our Class C common stock in the future, such issuances would have a dilutive effect on the economic interests of our Class A and Class B common stock and cause the market price of our Class A common stock to decline.

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**CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS** 

This prospectus contains statements that are forward-looking statements. All statements other than statements of historical facts contained in this prospectus, including statements regarding our future results of operations and financial position, business strategy, technology and plans and objectives of management for future operations, are forward-looking statements. Many of the forward-looking statements contained in this prospectus can be identified by the use of forward-looking words such as "anticipate," "believe," "could," "expect," "should," "plan," "intend," "estimate," "will" and "potential," among others. Forward-looking statements are based on our management's beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the concentration of our business on the aerospace and defense industries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the unique business risks of supplying products to companies contracting with the U.S. government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the significant competition that we face;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our industry's rapid change;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any decline or lower-than-anticipated growth of the markets into which we sell our products and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cost overruns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the availability and pricing of certain components and raw materials from suppliers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inflation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our products may not operate as intended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our decentralized organizational structure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our indebtedness and the restrictive covenants under the agreements governing our indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to comply with the extensive governmental regulation to which we are subject;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain our government or industry approvals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• product liability lawsuits and product recalls;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to obtain, maintain, protect and enforce our intellectual property and proprietary rights on which
our business depends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to realize the anticipated benefits from the Reorganization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the significant transaction costs that we have incurred and expect to continue to incur in connection with the
Reorganization and this offering and as a public company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other factors disclosed in the "Risk Factors" section of this prospectus.

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond our control, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur, and actual results could differ materially from those projected in the forward-looking statements. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise. You should read this prospectus and the documents that we have filed as exhibits to the registration statement, of which this prospectus is a part, completely and with the understanding that our actual future results may be materially different from what we expect.

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**USE OF PROCEEDS** 

We estimate that the net proceeds to us from this offering will be approximately $ million, or approximately $ million if the underwriters exercise their option to purchase additional shares in full, at the assumed initial public offering price of $ per share of Class A common stock, which is the midpoint of the price range set forth on the cover page of this prospectus, after deducting underwriting discounts and commissions and estimated offering and Reorganization expenses payable by us.

Each $1.00 increase or decrease in the assumed initial public offering price would increase or decrease the net proceeds to us by $ million, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting underwriting discounts and commissions and estimated offering and Reorganization expenses payable by us. Each 1,000,000 share increase or decrease in the number of shares offered by us would increase or decrease the net proceeds to us by $ million, assuming the assumed initial public offering price remains the same and after deducting underwriting discounts and commissions and estimated offering and Reorganization expenses payable by us.

The principal purposes of this offering are to obtain additional capital, create a public market for our Class A common stock, facilitate our future access to the public equity markets, increase awareness of our company among potential customers and increase awareness of our company among potential acquisition targets.

We intend to use approximately $ million of the net proceeds of this offering to repay borrowings under our Credit Facilities, and to use the remainder for working capital and other general corporate purposes, which may include potential acquisitions of, and investments in, complementary businesses, although we have no commitments with respect to any such acquisitions or investments at this time. The maturity date of borrowings under the Revolving Credit Facility is February 26, 2030. The maturity date of borrowings under the Term Loan Credit Facility is February 26, 2032. The interest rates on borrowings under the Revolving Credit Facility and Term Loan Credit Facility are calculated in accordance with the terms of the credit agreement (the "Credit Agreement") that governs the Credit Facilities and based on our consolidated first-lien net leverage ratio as calculated in accordance with the Credit Agreement, a copy of which is filed as an exhibit to the registration statement of which this prospectus forms a part. Borrowings under the Credit Facilities were used (i) to repay all then-outstanding loans under Ovation Parent, Inc.'s 2024 credit agreement, Quantic Electronics, LLC's 2020 credit agreement, Qnnect, LLC's 2022 credit agreement and SI Holdings, Inc.'s 2019 credit agreement and (ii) for working capital and other general corporate purposes. As of , 2026, our outstanding borrowings under the Term Loan Credit Facility bore interest at % per annum and our outstanding borrowings under the Revolving Credit Facility bore interest at % per annum.

Our management will retain broad discretion in the application of the net proceeds we receive from this offering, and investors will be relying on the judgment of our management regarding the application of the net proceeds. Pending the use of the proceeds from this offering, we intend to invest the net proceeds in a variety of capital preservation instruments, including short-term and long-term interest-bearing instruments, investment-grade securities, and direct or guaranteed obligations of the U.S. government. We cannot predict whether the proceeds invested will yield a favorable return.

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**DIVIDEND POLICY** 

We intend to retain all available funds and any future earnings, if any, to fund the development and expansion of our business, and we do not anticipate paying any cash dividends in the foreseeable future. Any future determination related to dividend policy will be made at the discretion of our board of directors and will depend upon, among other factors, our results of operations, financial condition, capital requirements, contractual restrictions (including the Credit Agreement, which restricts our ability to declare and pay dividends), business prospects and other factors our board of directors may deem relevant.

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**CAPITALIZATION** 

The following table sets forth our cash and cash equivalents and total capitalization (which we define as long-term liabilities and equity) as of December 31, 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on an actual basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on a pro forma basis to give effect to the Reorganization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on a pro forma as adjusted basis to give further effect to our issuance and sale of     
shares of Class A common stock at the assumed initial public offering price of $ per share of Class A common stock, which is the midpoint of the price range set forth on the cover page of this prospectus, after
deducting underwriting discounts and commissions and estimated offering and Reorganization expenses payable by us, and the application of the proceeds from this offering as described in "Use of Proceeds."

You should read this table in conjunction with "Use of Proceeds," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the Arxis Combined Financial Statements, including the notes thereto, included elsewhere in this prospectus.

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| | | | |
|:---|:---|:---|:---|
|  | **Actual** | **Pro<br>forma** | **Pro forma as<br>adjusted <sup>(1)</sup>** |
| (*in thousands, except share data*) |  |  |  |
|  Cash and cash equivalents | $250303 | $— | $— |
|  Long-term liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt, noncurrent | 2606459 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract liabilities, noncurrent | 1414 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities, noncurrent | 53798 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liabilities | 384420 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other long-term liabilities | 139124 |  |  |
|  Members'/stockholders' equity: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Units, units outstanding, actual; no units outstanding, pro forma and pro forma as adjusted | 3124058 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common stock, no shares outstanding, actual; shares outstanding, pro forma; shares outstanding, pro forma as adjusted |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B common stock, no shares outstanding, actual; shares outstanding, pro forma and pro forma as adjusted |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C common stock, no shares outstanding, actual, pro forma and pro forma as adjusted |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Convertible common stock, no shares outstanding, actual; share outstanding, pro forma; share outstanding, pro forma as adjusted |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income |  |  |  |
|  Total members'/stockholders' equity | 3124058 |  |  |
|  Total capitalization | $6309273 | $— | $— |

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(1) The pro forma and pro forma as adjusted information is illustrative only and will change based on the actual
initial public offering price and other terms of this offering determined at pricing.

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**DILUTION** 

If you invest in our Class A common stock, your interest will be diluted to the extent of the difference between the initial public offering price per share and the pro forma as adjusted net tangible book value per share immediately after this offering. Net tangible book value per share is determined by dividing our tangible net worth (defined as total assets, less intangible assets, net, less total liabilities) by the number of shares of common stock outstanding.

After giving effect to the Reorganization, our pro forma net tangible book value as of December 31, 2025 would have been $ million, or $ per share. After giving further effect to our issuance and sale of shares of Class A common stock in this offering at the assumed initial public offering price of $ per share of Class A common stock, which is the midpoint of the price range set forth on the cover page of this prospectus, after deducting underwriting discounts and commissions and estimated offering and Reorganization expenses payable by us, and the application of the net proceeds from this offering as described in "Use of Proceeds," our pro forma as adjusted net tangible book value as of December 31, 2025 would have been $ million, or $ per share. This represents an immediate increase in pro forma net tangible book value of $ per share to our existing stockholders and an immediate dilution of $ per share to new investors.

The following table illustrates this dilution on a per share basis:

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| | |
|:---|:---|
|  Assumed initial public offering price per share of Class A common stock | $|
|  Pro forma net tangible book value per share as of December 31, 2025 | $— |
|  Increase in pro forma net tangible book value per share attributable to new investors | $— |
|  Pro forma as adjusted net tangible book value per share after giving effect to this offering | $|
|  Dilution per share to new investors | $|

---

The dilution information discussed above is illustrative only and will change based on the actual initial public offering price and other terms of this offering determined at pricing. Each $1.00 increase or decrease in the assumed initial public offering price would increase or decrease the pro forma as adjusted net tangible book value per share after this offering by $ per share and dilution per share to new investors participating in this offering by $ per share, assuming that the number of shares offered by us in this offering, as set forth on the cover page of this prospectus, remains the same and after deducting underwriting discounts and commissions and estimated offering and Reorganization expenses payable by us. Each 1,000,000 share increase or decrease in the number of shares offered by us in this offering, as set forth on the cover page of this prospectus, would increase or decrease the pro forma as adjusted net tangible book value per share after this offering by $ per share and decrease or increase the dilution per share to new investors participating in this offering by $ per share, assuming the assumed initial public offering price remains the same, and after deducting underwriting discounts and commissions and estimated offering and Reorganization expenses payable by us.

If the underwriters exercise their option to purchase additional shares in full, the pro forma as adjusted net tangible book value per share after this offering would increase to $ per share, representing an immediate increase in pro forma as adjusted net tangible book value per share of $ per share to existing stockholders and immediate dilution of $ to new investors participating in this offering.

The following table summarizes as of December 31, 2025, on the pro forma as adjusted basis described above, the number of shares of common stock, the total consideration paid or to be paid and the average price per share paid or to be paid by existing stockholders and by the new investors participating in this offering, at the

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assumed initial public offering price equal to the midpoint of the price range set forth on the cover page of this prospectus.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shares Purchased** | **Shares Purchased** | **Total Consideration** | **Total Consideration** | **Weighted-<br>Average<br>Price Per**<br>**Share** |
| *(in thousands, except share, per share and percentage data)* | **Number** | **Percent** | **Percent** | **Percent** | **Weighted-<br>Average<br>Price Per**<br>**Share** |
|  Existing stockholders (Class A and Class B)% |  |  | $nan% |  | $|
|  New investors (Class A)% |  |  | $nan% |  | $|
|  Total |  | 100% | $— | 100% |  |

---

The table above assumes no exercise of the underwriters' option to purchase additional shares. If the underwriters' option to purchase additional shares is exercised in full, the number of shares held by existing stockholders would be reduced to % of the total number of shares outstanding after this offering and the number of shares held by new investors participating in the offering would be increased to % of the total number of shares outstanding after this offering.

To the extent that any new options or restricted stock units ("RSUs") are issued under our stock-based compensation plans or we issue additional shares of Class A common stock, Class B common stock, Class C common stock or other securities convertible into or exercisable for shares of Class A common stock in the future, there will be further dilution to investors participating in this offering.

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**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS** 

*The following is a discussion of the historical results of operations and liquidity and capital resources of the Arxis Businesses and Connector. Arcline Engineered Polymer Topco L.P., Hawkeye TopCo L.P., and Connector are predecessors to Arxis. The Arxis Businesses were not historically consolidated or operated as a combined company. You should read the following discussion and analysis in conjunction with the Arxis Combined Financial Statements and notes thereto included elsewhere in this prospectus. In addition to historical financial information, the following discussion and analysis contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results and the timing of events could differ materially from those anticipated in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this prospectus, particularly in the "Risk Factors," and "Cautionary Statement Regarding Forward-Looking Statements" sections. Unless the context otherwise requires, references in this section to "we," "our," "us" and the "Company" refer to the Arxis Businesses.* 

**Arxis** 

**Overview** 

We are a leading designer and manufacturer of proprietary, mission-critical electronic and mechanical components engineered for cutting-edge performance in extreme environments. Leveraging significant IP and world-class engineering capabilities, we design and deliver innovative solutions that address some of our customers' most complex performance needs.

We operate in two reportable segments: Electronic Components and Mechanical Components. Both segments focus on proprietary, mission-critical, engineered components with outsized value-to-cost ratios, benefit from the same secular growth trends and share a decentralized operating structure unified by our Arxis EDGE business system. The segments are distinct in terms of the product categories they offer: our Electronic Components segment provides specialized, highly engineered electronic components and interconnect solutions, including connectors, cable assemblies, microelectronic packaging, RF and microwave products, power products, sensors, capacitors and resistors. Our Mechanical Components segment provides precision and self-lubricating bearings, seals, springs, gaskets and ducting, and radar absorbing materials.

Our business is highly diversified across end markets, customers and platforms with no material concentration in any category. We serve the broader aerospace and defense industries, and we also have a significant presence across medical technology and industrial technology end markets.

We operate 72 highly specialized manufacturing facilities globally across North America, Europe and Asia, with a focus on domestic manufacturing.

**Key Factors and Trends Impacting Our Performance** 

The growth and success of our business as well as our financial condition and operating results have been, and are expected to continue to be, influenced by a number of factors, including the following:

***Aerospace and Defense Industry Outlook***

Our business performance is influenced by overall conditions in the global aerospace and defense industries. Demand for our products and services is driven by the spending patterns of commercial aerospace manufacturers, defense contractors and government agencies. Aircraft production rates, fleet utilization and defense budget levels all influence our business activity. Periods of significant disruption – such as those resulting from global health crises, geopolitical conflicts or terrorist attacks – can lead to program delays, reduced production rates or lower procurement budgets, all of which negatively affect our revenue and margins.

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In commercial aerospace, our business is influenced by global economic conditions, airline profitability, passenger traffic levels and aircraft production rates. Our business is also influenced by impacts to the broader commercial aerospace industry, including changes in OEM build schedules or other supply chain constraints that may lead to reduced orders, deferred deliveries and customer pricing pressure.

In defense, spending priorities, funding cycles and modernization initiatives affect order timing and volume across platforms. Demand is influenced by platform mix, procurement budgets and production schedules under government contracts. Broader factors such as geopolitical developments, inflationary pressures and supply-chain availability can also influence platform execution and cost performance.

Aftermarket activity contributes recurring revenue for our business and is primarily driven by aircraft utilization, modernization, fleet age and scheduled maintenance cycles. Changes in passenger traffic levels, aircraft retirements or airline profitability can impact demand for spare parts or repairs, which in turn affect order timing and margin mix.

***Government Defense Budgets and Procurement Policies***

A substantial portion of our revenue is derived from sales to suppliers and contractors serving the DoW and foreign governments. Consequently, our performance depends on government budgetary decisions and procurement practices. Reductions in defense spending, political pressure to reduce military spending, delays in contract awards or funding and shifts in spending priorities away from programs we support can impact our results. In addition, the U.S. government's ability to terminate contracts for convenience or modify pricing terms following audits introduces variability in our financial performance.

***Supply Chain Management and Inventory Control***

Our ability to meet customer demand depends on efficient supply chain operations and accurate forecasting. Because we generally lack long-term purchase commitments, we anticipate future orders based on customer forecasts and historical trends. Inaccurate demand forecasting can result in excess or insufficient inventory, leading to write-downs or shortages, which may harm financial performance, customer relationships and contract fulfillment. Additionally, supply constraints or disruptions, whether from labor shortages, geopolitical events or limited availability of raw materials, can delay production and increase costs.

***Technology Advancements***

The industries we serve are influenced by technological changes or advancements and new product introductions, all of which could make our products and services non-competitive or obsolete. A failure to adapt to technological and industry changes or our inability to meet or exceed industry standards and customer specifications on a timely, cost-effective or repeatable basis, could result in a loss of customers and market share.

***Strategic Acquisitions***

Acquisitions have been part of our growth strategy, and we expect to continue to pursue strategic acquisitions of complementary businesses and products. We may not be able to find suitable acquisition candidates, negotiate and complete such acquisitions on favorable terms or obtain and comply with regulatory approvals needed to complete such acquisitions. An inability to complete acquisitions or successfully integrate acquired businesses could adversely impact our strategic objectives and growth.

***Contingencies***

We have certain liabilities recorded associated with obligations to perform environmental remediation and we are subject to legal proceedings and claims that arise in the normal course of business. See "Note 14.

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Commitments and Contingencies" to the Arxis Combined Financial Statements included elsewhere in this prospectus. The outcomes and expenses associated with these matters are difficult to predict. As a result, our results of operations and financial condition could be adversely affected by unfavorable resolutions of such matters or expenses associated with such matters beyond our current estimates.

***Seasonality***

We do not believe our revenue is subject to significant seasonal variations.

**Factors Affecting Comparability of Results of Operations** 

Certain factors affecting the comparability of our current and historical results of operations are summarized below.

***Acquisitions***

We execute and integrate both transformational and tuck-in acquisitions, which are carefully selected to align with our core business model: IP-led companies with defensible, designed-in component portfolios serving enduring platforms. While certain acquisitions, as discussed further in "Note 3. Business Combinations" to the Arxis Combined Financial Statements included elsewhere in this prospectus, may not be individually significant, they may be relevant when comparing our results from period to period. These transactions are outlined below:

In June 2025, we acquired 100% equity interest in Oldham Seals Group Limited ("Oldham"), a Chichester, England based company that designs and manufactures polymer engineered products for the naval and civilian shipping industry, oil and gas and traction industries.

In January 2025, we acquired 100% equity interest in Spira Manufacturing Corporation ("Spira") which specializes in custom manufacturing of electromagnetic interference and radio-frequency interference shielding gaskets and products.

On September 30, 2024 ("Acquisition Date"), the equity interests of Arcline Engineered Polymer Topco L.P., Hawkeye TopCo L.P., Connector and Ovation were contributed to a newly-formed limited partnership series-entity (the "Arxis Businesses Transaction"). The Arxis Businesses Transaction brought these entities under common control and resulted in a business combination within the scope of ASC 805.

On August 28, 2024, we acquired 100% equity interest in RMB Products, Inc. ("RMB") which specializes in custom manufacturing and engineered polymers for the aerospace, chemical processing, semiconductor and biopharmaceutical industries. Arcline Engineered Polymer Topco L.P. and Hawkeye TopCo L.P., which were under common control for all periods presented including prior to September 30, 2024, were determined to be the accounting acquirer group in accordance with ASC 805.

In May 2024, we acquired 100% equity interest in M-Wave Design Corporation ("M-Wave") which specializes in designing and manufacturing RF and microwave components, including isolators, circulators, adaptors and terminations, for applications in aerospace, defense and cryogenic quantum computing.

***Reorganization***

Immediately prior to the completion of this offering, we intend to effect the Reorganization. See "Prospectus Summary—Reorganization." In connection with the completion of this offering and as a result of the Reorganization, all of Arxis Businesses will become subject to U.S. federal and certain state corporate taxes on a consolidated basis whereas previously the businesses were subject to tax as separate corporate entities or on a pass-through basis. Income taxes include income taxes on income earned or losses incurred in foreign

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jurisdictions on certain operations, and federal and state income taxes on income earned or losses incurred, both current and deferred, on subsidiaries that are taxed as corporations for U.S. tax purposes.

***Unaudited Pro Forma and Supplemental Pro Forma Information***

The unaudited supplemental pro forma combined financial information presented for the year ended December 31, 2024 in the sections titled "—Unaudited Pro Forma Adjusted Oldham Year Ended December 31, 2025 as compared to the Unaudited Supplemental Pro Forma Year Ended December 31, 2024" and "—Unaudited Supplemental Pro Forma Information," for the year ended December 31, 2024 gives pro forma effect to the Supplemental Pro Forma Transactions (defined below) as if they were consummated on January 1, 2024. The unaudited supplemental pro forma financial information in the sections titled "—Unaudited Pro Forma Adjusted Oldham Year Ended December 31, 2025 as compared to the Unaudited Supplemental Pro Forma Year Ended December 31, 2024" and "—Unaudited Supplemental Pro Forma Information," for the year ended December 31, 2024 was prepared in a manner comparable to the requirements of Article 11 of Regulation S-X but does not comply with Article 11 in that Rule 11-02(c) of Article 11 does not allow for the presentation of unaudited supplemental pro forma combined statements of operations prior to the most recent fiscal year.

The unaudited pro forma combined financial information presented in the sections titled "—Unaudited Pro Forma Adjusted Oldham Year Ended December 31, 2025 as compared to the Unaudited Supplemental Pro Forma Year Ended December 31, 2024" and "Unaudited Pro Forma Combined Financial Information" for the year ended December 31, 2025 gives pro forma effect to the transactions described therein, including the consummation of the Oldham Acquisition, the Reorganization and this offering and the application of proceeds therefrom. The unaudited pro forma financial information in the sections titled "—Unaudited Pro Forma Adjusted Oldham Year Ended December 31, 2025 as compared to the Unaudited Supplemental Pro Forma Year Ended December 31, 2024" and "Unaudited Pro Forma Combined Financial Information" for the year ended December 31, 2025 has been prepared in compliance with Article 11.

This unaudited supplemental pro forma financial information presented in this Management's Discussion and Analysis of Financial Condition and Results of Operations does not include the impact of this offering or the Reorganization.

***Public Company Costs***

As a public company, we anticipate our operating expenses will increase as we establish more comprehensive compliance and governance functions, maintain and assess internal controls over financial reporting in accordance with the Sarbanes-Oxley Act, prepare and distribute periodic reports as required by SEC rules and regulations and obtain and maintain director and officer insurance appropriate for a public company. Such expenses include, but are not limited to, accounting, legal and personnel-related expenses. As a result, our historical results of operations may not be indicative of our results of operations in future periods.

**Components of Results of Operations** 

***Revenue***

We generate revenue primarily from the design, manufacture and sale of highly engineered electronic and mechanical components used in mission-critical, harsh-environment applications, as well as related repair and overhaul services. Our components are integrated into customers' platforms across defense and space, commercial aerospace, medical technology and industrial technology end markets. Our products are typically custom-engineered and designed into customers' systems during early development stages, creating long-term embedded positions that produce recurring and predictable revenue streams. Approximately 90% of our revenue for the year ended December 31, 2025 was derived from uniquely designed or proprietary products developed through close engineer-to-engineer collaboration with customers. These components, which often represent a

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small fraction of total platform cost but deliver essential functionality, are produced and supplied throughout multi-decade platform lifecycles, including initial production and aftermarket replacement phases. Based on our production cycle, it is generally expected that goods related to the revenue will be manufactured, shipped and billed within twelve months of the customer purchase order.

*Organic Revenue* 

Organic revenue represents revenue from our existing businesses for comparable periods and excludes revenue from acquisitions. We include revenue from new acquisitions in organic revenue from the 13th-month after the acquisition on a comparative basis with the prior period.

*Acquisition Revenue* 

Acquisition revenue represents revenue from businesses acquired either during the fiscal year of the acquisition, or revenue from acquisitions that were completed in the prior period for which there is no comparable revenue during the prior period.

***Cost of Revenue***

Cost of revenue primarily consists of expenses directly associated with the design, engineering, manufacture and delivery of our products. These include raw materials and component parts, direct labor, manufacturing overhead such as depreciation of production equipment and facility costs, quality assurance and testing expenses, and logistics and fulfillment costs.

***Selling, General and Administrative Expenses***

Selling, general and administrative expenses primarily consist of costs associated with sales and marketing activities and corporate functions including our finance, legal, human resources, information technology and facilities. These costs include personnel costs, such as salaries, bonuses, benefits and stock-based compensation expense, third-party professional services costs, such as legal, accounting and audit services, corporate facilities, depreciation for property, plant and equipment and other costs necessary to operate our business. Selling, general and administrative expenses also include gains or losses on disposals of assets.

***Amortization of Intangibles***

Amortization of intangibles consists of amortization expense associated with our intangible assets such as customer lists and relationships, developed technologies, trademarks and patents.

***Interest Expense, Net***

Interest expense, net consists of interest associated with our contractual and finance lease interest, the amortization of debt discounts and issuance costs, the fair value adjustment of our interest rate hedges and commitment fees associated with our revolving credit agreements.

***Other Income, Net***

Other income, net consists of gains and losses related to foreign currency transactions, income from transition services agreements and other miscellaneous income and expense items unrelated to our core operations.

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***Income Tax Expense (Benefit)***

Income tax expense (benefit) consists primarily of income taxes in certain federal, state, local and foreign jurisdictions in which we conduct business. Foreign jurisdictions typically have different statutory tax rates from those in the U.S. Our effective tax rates may vary depending on the relative proportion of foreign earnings to domestic earnings, generation of tax credits, changes in the valuation of our deferred tax assets and liabilities and changes in tax laws.

**Results of Operations** 

The following tables set forth a summary of our results of operations for the years ended December 31, 2025, 2024 and 2023 and unaudited supplemental pro forma results of operations for the years ended December 31, 2025 and December 31, 2024, respectively. See "—Factors Affecting Comparability of Results of Operations—Acquisitions", "Unaudited Pro Forma Combined Financial Information" and "—Unaudited Supplemental Pro Forma Information":

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Unaudited<br>Pro Forma<br>Adjusted<br>Oldham** | **Historical** | **Historical** | **Historical** | **Unaudited<br>Supplemental<br>Pro Forma<br>Arxis<br>Combined** |
|  | **Year Ended<br>December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended<br>December 31,** |
| **Combined Statements of Operations Data:** | **2025** | **2025** | **2024** | **2023** | **2024** |
| *(in thousands)* |  |  |  |  |  |
|  Revenue | $1601074 | $1591020 | $742992 | $424495 | $1451405 |
|  Cost of revenue | 843015 | 836304 | 411853 | 230478 | 843944 |
|  Gross profit | 758059 | 754716 | 331139 | 194017 | 607461 |
|  Selling, general and administrative expenses | 341830 | 339081 | 156143 | 88227 | 368034 |
|  Amortization of intangible assets | 140629 | 138937 | 72405 | 51469 | 136927 |
|  Operating income | 275600 | 276698 | 102591 | 54321 | 102500 |
|  Interest expense, net | 220316 | 220316 | 161052 | 124496 | 285137 |
|  Other (income) expense, net | (5967) | (5932) | (5461) | (845) | (5555) |
|  Net income (loss) before income taxes | 61251 | 62314 | (53000) | (69330) | (177082) |
|  Income tax expense (benefit) | 15982 | 16325 | 2472 | (9412) | (1780) |
|  Net income (loss) | $45269 | $45989 | $(55472) | $(59918) | $(175302) |

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***Year Ended December 31, 2025 as compared to the Year Ended December 31, 2024***

*Revenue* 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | | |
| *(in thousands, except for percentages)* | **2025** | **2024** | **$ Change** | **% Change** |
|  Organic revenue | $808767 | $742992 | $65775 | 8.9% |
|  Acquisition revenue | 782253 |  | 782253 | NM |
|  Total revenue | $1591020 | $742992 | $848028 | 114.1% |

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Not meaningful ("NM")

Revenue increased by $848.0 million, or 114.1%, for the year ended December 31, 2025 as compared to the year ended December 31, 2024.

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*Organic Revenue* 

Organic revenue increased by $65.8 million, or 8.9%, for the year ended December 31, 2025 as compared to December 31, 2024. The increase was primarily driven by growth for the year ended December 31, 2025 in our Defense and Space and Commercial Aerospace end markets of approximately $45.4 million and $14.4 million, respectively, as compared to the year ended December 31, 2024. Growth in our Defense and Space and Commercial Aerospace end markets was driven by favorable pricing, reflecting contractual price escalations and price realization across our end markets, as well as increased demand. Pricing actions were broad-based across the portfolio, while volume growth reflected higher customer activity in key programs.

*Acquisition Revenue* 

Acquisition revenue of $782.3 million for the year ended December 31, 2025 represents revenue attributable to businesses acquired after December 31, 2023 that was not included in the comparable organic revenue base for the period, primarily the full-year contribution from the businesses acquired in the Arxis Businesses Transaction and, to a lesser extent, revenue attributable to the 2025 Acquisitions. Acquisition revenue attributable to the revenue of acquired companies in connection with the Arxis Businesses Transaction was $724.0 million, or 85.4%, of the increase in total revenue for the year ended December 31, 2025 as compared to the year ended December 31, 2024.

*Gross Profit* 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | | |
| *(in thousands, except for percentages)* | **2025** | **2024** | **$ Change** | **% Change** |
|  Gross profit | $754716 | $331139 | $423577 | 127.9% |
|  *Gross margin* | *47.4 %* | *44.6 %* |  |  |

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Gross profit increased by $423.6 million, or 127.9%, for the year ended December 31, 2025 as compared to the year ended December 31, 2024. The increase was primarily due to gross profit of $350.6 million related to acquisitions, as well as operating leverage improvement, driven by the successful execution of our operational initiatives, including improved pricing discipline.

Gross margin was 47.4% during the year ended December 31, 2025 compared to 44.6% for the year ended December 31, 2024. The increase was primarily due to a continued focus on value-based pricing and the successful execution of our operational initiatives, including improved pricing discipline. The increase was partially offset by $18.2 million, or 1.1%, related to amortization of inventory step-up resulting from the Arxis Businesses Transaction.

*Selling, General and Administrative Expenses* 

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|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | | |
| *(in thousands, except for percentages)* | **2025** | **2024** | **$ Change** | **% Change** |
|  Selling, general and administrative expenses | $339081 | $156143 | $182938 | 117.2% |
|  *Percentage of revenue* | *21.3 %* | *21.0 %* |  |  |

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Selling, general and administrative expenses increased by $182.9 million, or 117.2%, for the year ended December 31, 2025 as compared to the year ended December 31, 2024. This increase was primarily due to $142.6 million of incremental costs in connection with the Arxis Businesses Transaction, primarily attributable to $78.7 million of employee compensation wages and benefits and $8.4 million of depreciation expense, in addition to $10.1 million of losses on disposition of assets.

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*Amortization of Intangible Assets* 

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|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | | |
| *(in thousands, except for percentages)* | **2025** | **2024** | **$ Change** | **% Change** |
|  Amortization of intangible assets | $138937 | $72405 | $66532 | 91.9% |
|  *Percentage of revenue* | *8.7 %* | *9.7 %* |  |  |

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Amortization of intangible assets increased by $66.5 million, or 91.9%, for the year ended December 31, 2025 as compared to the year ended December 31, 2024. This increase was primarily due to amortization related to acquired intangibles in connection with the Arxis Businesses Transaction.

*Interest Expense, Net* 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | | |
| *(in thousands, except for percentages)* | **2025** | **2024** | **$ Change** | **% Change** |
|  Interest expense, net | $220316 | $161052 | $59264 | 36.8% |
|  *Percentage of revenue* | *13.8 %* | *21.7 %* |  |  |

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Interest expense, net increased by $59.3 million, or 36.8%, for the year ended December 31, 2025 as compared to the year ended December 31, 2024. This increase was primarily due to $85.9 million of interest expense associated with debt held by acquired companies in connection with the Arxis Businesses Transaction and $15.8 million of loss on debt extinguishment, partially offset by a $42.4 million decrease due to the debt refinancing.

*Other Income, Net* 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | | |
| *(in thousands, except for percentages)* | **2025** | **2024** | **$ Change** | **% Change** |
|  Other income, net | $(5932) | $(5461) | $(471) | 8.6% |
|  *Percentage of revenue* | *(0.4 %)* | *(0.7 %)* |  |  |

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Other income, net increased by $0.5 million, or 8.6%, for the year ended December 31, 2025 as compared to the year ended December 31, 2024.

*Income Tax Expense (Benefit)* 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | | |
| *(in thousands, except for percentages)* | **2025** | **2024** | **$ Change** | **% Change** |
|  Income tax expense | $16325 | $2472 | $13853 | NM |
|  *Percentage of revenue* | *1.0 %* | *0.3 %* |  |  |

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Income tax expense increased by $13.9 million for the year ended December 31, 2025 as compared to the year ended December 31, 2024. The increase was primarily due to an increase in pretax book income for the year ended December 31, 2025 as compared to the year ended December 31, 2024.

***Unaudited Pro Forma Adjusted Oldham Year Ended December 31, 2025 as compared to the Unaudited Supplemental Pro Forma Year Ended December 31, 2024***

The Unaudited Pro Forma Adjusted Oldham financial information for the year ended December 31, 2025 and Unaudited Supplemental Pro Forma financial information for the year ended December 31, 2024 is being

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presented herein for informational purposes only. Please refer to "Unaudited Pro Forma Combined Financial Information," and "—Unaudited Supplemental Pro Forma Information," for additional information.

*Revenue* 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Unaudited Pro Forma<br>Year Ended December 31,** | **Unaudited Pro Forma<br>Year Ended December 31,** | | |
| *(in thousands, except for percentages)* | **Unaudited<br>Pro Forma<br>Adjusted<br>Oldham<br>2025** | **Unaudited<br>Supplemental<br>Pro Forma<br>2024** | **$ Change** | **% Change** |
|  Revenue | $1601074 | $1451405 | $149669 | 10.3% |

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Revenue increased by $149.7 million, or 10.3%, for the unaudited pro forma adjusted Oldham year ended December 31, 2025 as compared to the unaudited supplemental pro forma year ended December 31, 2024. The increase was primarily driven by an increase of $90.7 million of Electronic Components revenue and an increase of $59.0 million of Mechanical Components revenue, driven by favorable pricing, reflecting contractual price escalations and price realization across our end markets, as well as increased customer demand, including higher order volumes and a favorable mix of programs and products.

*Gross Profit* 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Unaudited Pro Forma<br>Year Ended December 31,** | **Unaudited Pro Forma<br>Year Ended December 31,** | | |
|  | **Unaudited Pro<br>Forma<br>Adjusted<br>Oldham** | **Unaudited<br>Supplemental<br>Pro Forma** | **$ Change** | **% Change** |
| *(in thousands, except for percentages)* | **2025** | **2024** |  |  |
|  Gross profit | $758059 | $607461 | $150598 | 24.8% |
|  *Gross margin* | *47.4 %* | *41.9 %* |  |  |

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Gross profit increased by $150.6 million, or 24.8%, for the unaudited pro forma adjusted Oldham year ended December 31, 2025 as compared to the unaudited supplemental pro forma year ended December 31, 2024. The increase was primarily due to $76.4 million of Electronic Components gross profit and $74.2 million of Mechanical Components gross profit driven by the successful execution of our operational initiatives, including improved pricing discipline.

Gross margin was 47.4% during the unaudited pro forma adjusted Oldham year ended December 31, 2025 compared to 41.9% for the unaudited supplemental pro forma year ended December 31, 2024. The increase in gross margin was primarily driven by the successful execution of our operational initiatives, including improved pricing discipline.

*Selling, General and Administrative Expenses* 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Unaudited Pro Forma<br>Year Ended December 31,** | **Unaudited Pro Forma<br>Year Ended December 31,** | | |
|  | **Unaudited Pro<br>Forma<br>Adjusted<br>Oldham** | **Unaudited<br>Supplemental<br>Pro Forma** | **$ Change** | **% Change** |
| *(in thousands, except for percentages)* | **2025** | **2024** |  |  |
|  Selling, general and administrative expenses | $341830 | $368034 | $(26204) | (7.1%) |
|  *Percentage of revenue* | *21.4 %* | *25.4 %* |  |  |

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Selling, general and administrative expenses decreased by $26.2 million, or 7.1%, for the unaudited pro forma adjusted Oldham year ended December 31, 2025 as compared to the unaudited supplemental pro forma year ended December 31, 2024. This decrease was primarily due to a decrease of $45.6 million in acquisition and integration costs, $33.2 million in transaction and other deal-related expenses, and $18.2 million in restructuring costs, partially offset by an increase of $42.7 million in employee compensation wages and benefits, in addition to $10.1 million of losses on disposition of assets.

*Amortization of Intangible Assets* 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Unaudited Pro Forma<br>Year Ended December 31,** | **Unaudited Pro Forma<br>Year Ended December 31,** | | |
|  | **Unaudited Pro<br>Forma<br>Adjusted<br>Oldham** | **Unaudited<br>Supplemental<br>Pro Forma** | **$ Change** | **% Change** |
| *(in thousands, except for percentages)* | **2025** | **2024** |  |  |
|  Amortization of intangible assets | $140629 | $136927 | $3702 | 2.7% |
|  *Percentage of revenue* | *8.8 %* | *9.4 %* |  |  |

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Amortization of intangible assets increased by $3.7 million, or 2.7%, for the unaudited pro forma adjusted Oldham year ended December 31, 2025 as compared to the unaudited supplemental pro forma year ended December 31, 2024.

*Interest Expense, Net* 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Unaudited Pro Forma<br>Year Ended December 31,** | **Unaudited Pro Forma<br>Year Ended December 31,** | | |
|  | **Unaudited Pro<br>Forma<br>Adjusted<br>Oldham** | **Unaudited<br>Supplemental<br>Pro Forma** | | |
| *(in thousands, except for percentages)* | **2025** | **2024** | **$ Change** | **% Change** |
|  Interest expense, net | $220316 | $285137 | $(64821) | (22.7%) |
|  *Percentage of revenue* | *13.8 %* | *19.6 %* |  |  |

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Interest expense, net decreased by $64.8 million, or 22.7%, for the unaudited pro forma adjusted Oldham year ended December 31, 2025 as compared to the unaudited supplemental pro forma year ended December 31, 2024. The decrease was primarily attributable to the debt refinancing in February 2025, which resulted in a lower effective interest rate in the year ended December 31, 2025 as compared to the year ended December 31, 2024.

*Other Income, Net* 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Unaudited Pro Forma<br>Year Ended December 31,** | **Unaudited Pro Forma<br>Year Ended December 31,** | | |
|  | **Unaudited Pro<br>Forma<br>Adjusted<br>Oldham** | **Unaudited<br>Supplemental<br>Pro Forma** | | |
| *(in thousands, except for percentages)* | **2025** | **2024** | **$ Change** | **% Change** |
|  Other income, net | $(5967) | $(5555) | $(412) | 7.4% |
|  *Percentage of revenue* | *(0.4 %)* | *(0.4 %)* |  |  |

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Other income, net increased by $0.4 million, or 7.4%, for the unaudited pro forma adjusted Oldham year ended December 31, 2025 as compared to the unaudited supplemental pro forma year ended December 31, 2024.

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*Income Tax Expense (Benefit)* 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Unaudited Pro Forma<br>Year Ended December 31,** | **Unaudited Pro Forma<br>Year Ended December 31,** | | |
|  | **Unaudited Pro<br>Forma<br>Adjusted<br>Oldham** | **Unaudited<br>Supplemental<br>Pro Forma** | | |
| *(in thousands, except for percentages)* | **2025** | **2024** | **$ Change** | **% Change** |
|  Income tax expense (benefit) | $15982 | $(1780) | $17762 | NM |
|  *Percentage of revenue* | *1.0 %* | *(0.1 %)* |  |  |

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Income tax expense increased by $17.8 million for the unaudited pro forma adjusted Oldham year ended December 31, 2025 as compared to the unaudited supplemental pro forma year ended December 31, 2024. The increase was primarily due to an increase in pretax book income for the unaudited pro forma adjusted Oldham year ended December 31, 2025 as compared to the unaudited supplemental pro forma year ended December 31, 2024.

***Year Ended December 31, 2024 as compared to the Year Ended December 31, 2023***

*Revenue* 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | | |
| *(in thousands, except for percentages)* | **2024** | **2023** | **$ Change** | **% Change** |
|  Organic revenue | $496390 | $424495 | $71895 | 16.9% |
|  Acquisition revenue | 246602 |  | 246602 | NM |
|  Total revenue | $742992 | $424495 | $318497 | 75.0% |

---

Revenue increased by $318.5 million, or 75.0%, for the year ended December 31, 2024 as compared to the year ended December 31, 2023.

*Organic Revenue* 

Organic revenue increased by $71.9 million, or 16.9%, for the year ended December 31, 2024 as compared to December 31, 2023. The increase was primarily driven by growth for the year ended December 31, 2024 in our Defense and Space and Commercial Aerospace end markets of $54.5 million and $18.2 million, respectively, as compared to December 31, 2023. Growth in our Defense and Space end market was driven by higher volume and increased pricing due to strong demand for defense-related customer platforms, reflecting increased production activity on key programs and the impact of contractual price escalations and price realization. Growth in our Commercial Aerospace end market was driven by increased production volumes resulting from continued customer demand, including higher build rates and increased customer ordering levels. The increase in our Defense and Space and Commercial Aerospace end markets was partially offset by a $0.8 million decrease in our Industrial Technology end market.

*Acquisition Revenue* 

Acquisition revenue was primarily attributable to the revenue of acquired companies in connection with the Arxis Businesses Transaction, which represented $232.9 million, or 73.1%, of the increase in total revenue for the year ended December 31, 2024 compared to the year ended December 31, 2023.

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*Gross Profit* 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | | |
| *(in thousands, except for percentages)* | **2024** | **2023** | **$ Change** | **% Change** |
|  Gross profit | $331139 | $194017 | $137122 | 70.7% |
|  *Gross margin* | *44.6 %* | *45.7 %* |  |  |

---

Gross profit increased by $137.1 million, or 70.7%, for the year ended December 31, 2024 as compared to the year ended December 31, 2023. The increase was primarily due to gross profit of $78.9 million related to acquisitions in 2024, as well as operating leverage improvement, driven by the successful execution of our operational strategy, including enhanced manufacturing efficiencies, favorable product mix and improved pricing discipline related to recently acquired businesses.

Gross margin was 44.6% during the year ended December 31, 2024 compared to 45.7% for the year ended December 31, 2023. The decrease was primarily due to $24.8 million, or 3.3%, related to amortization of inventory step-up resulting from the Arxis Businesses Transaction. The decrease was partially offset by the successful execution of our operational strategy, including enhanced manufacturing efficiencies, favorable product mix and improved pricing discipline related to recently acquired businesses.

*Selling, General and Administrative Expenses* 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | | |
| *(in thousands, except for percentages***)** | **2024** | **2023** | **$ Change** | **% Change** |
|  Selling, general and administrative expenses | $156143 | $88227 | $67916 | 77.0% |
|  *Percentage of revenue* | *21.0 %* | *20.8 %* |  |  |

---

Selling, general and administrative expenses increased by $67.9 million, or 77.0%, for the year ended December 31, 2024 as compared to the year ended December 31, 2023. This increase was primarily due to incremental costs in connection with the Arxis Businesses Transaction, related to restructuring costs of $25.3 million, employee compensation and benefits of $19.6 million and professional fees of $3.7 million.

*Amortization of Intangible Assets* 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | | |
| *(in thousands, except for percentages)* | **2024** | **2023** | **$ Change** | **% Change** |
|  Amortization of intangible assets | $72405 | $51469 | $20936 | 40.7% |
|  *Percentage of revenue* | *9.7 %* | *12.1 %* |  |  |

---

Amortization of intangible assets increased by $20.9 million, or 40.7%, for the year ended December 31, 2024 as compared to the year ended December 31, 2023. This increase was primarily due to amortization related to acquired intangibles in connection with the Arxis Businesses Transaction.

*Interest Expense, Net* 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | | |
| *(in thousands, except for percentages)* | **2024** | **2023** | **$ Change** | **% Change** |
|  Interest expense, net | $161052 | $124496 | $36556 | 29.4% |
|  *Percentage of revenue* | *21.7 %* | *29.3 %* |  |  |

---

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Interest expense, net increased by $36.6 million, or 29.4%, for the year ended December 31, 2024 as compared to the year ended December 31, 2023. This increase was primarily due to incremental interest due to interest expense associated with debt held by acquired companies in connection with the Arxis Businesses Transaction.

*Other Income, Net* 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | | |
| *(in thousands, except for percentages)* | **2024** | **2023** | **$ Change** | **% Change** |
|  Other income, net | $(5461) | $(845) | $(4616) | NM |
|  *Percentage of revenue* | *(0.7 %)* | *(0.2 %)* |  |  |

---

Other income, net increased by $4.6 million for the year ended December 31, 2024 as compared to the year ended December 31, 2023. This increase was primarily due to activity of acquired companies in connection with the Arxis Businesses Transaction, including $2.8 million of income from transition services agreements and $0.5 million of gains on foreign currency transactions.

*Income Tax Expense (Benefit)* 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | | |
| *(in thousands, except for percentages)* | **2024** | **2023** | **$ Change** | **% Change** |
|  Income tax expense (benefit) | $2472 | $(9412) | $11884 | NM |
|  *Percentage of revenue* | *0.3 %* | *(2.2 %)* |  |  |

---

Income tax expense increased by $11.9 million for the year ended December 31, 2024 as compared to the year ended December 31, 2023. The increase was primarily due to the decrease in Net loss before income taxes for the year ended December 31, 2024 as compared to the year ended December 31, 2023, and due to the activity of acquired companies in connection with the Arxis Businesses Transaction.

**Segment Results** 

The following table presents revenue by segment, segment Adjusted EBITDA and segment Adjusted EBITDA Margin for the years ended December 31, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | | |
| *(in thousands, except for percentages)* | **2025** | **2024** | **$ Change** | **% Change** |
|  Electronic Components |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Segment Revenue | $704997 | $360515 | $344482 | 95.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Segment Adjusted EBITDA | $274995 | $129044 | $145951 | 113.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Segment Adjusted EBITDA Margin<sup>(1)</sup> | 39.0% | 35.8% |  |  |
|  Mechanical Components |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Segment Revenue | $886023 | $382477 | $503546 | 131.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Segment Adjusted EBITDA | $296309 | $114955 | $181354 | 157.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Segment Adjusted EBITDA Margin<sup>(1)</sup> | 33.4% | 30.1% |  |  |

---

(1) Segment Adjusted EBITDA Margin is calculated as segment Adjusted EBITDA divided by segment revenue.

For more information regarding our segments please refer to "Note 5. Segment Information" to the Arxis Combined Financial Statements included elsewhere in this prospectus.

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***Electronic Components***

Electronic Components segment revenue increased by $344.5 million, or 95.6%, for the year ended December 31, 2025 as compared to the year ended December 31, 2024. The increase was primarily due to $308.8 million in connection with the Arxis Businesses Transaction, and higher revenue across our Defense and Space end market driven by strong customer demand.

Electronic Components segment Adjusted EBITDA increased by $146.0 million for the year ended December 31, 2025 as compared to the year ended December 31, 2024. This increase was primarily due to $124.2 million in connection with the Arxis Businesses Transaction, as well as robust growth in Defense and Space end market and execution of our operational strategy.

***Mechanical Components***

Mechanical Components segment revenue increased by $503.5 million or 131.7% for the year ended December 31, 2025 as compared to the year ended December 31, 2024. The increase was primarily due to $429.8 million in connection with the Arxis Businesses Transaction, as well as higher revenue across all our end markets attributable to higher customer demand.

Mechanical Components segment Adjusted EBITDA increased by $181.4 million for the year ended December 31, 2025 as compared to the year ended December 31, 2024. This increase was primarily due to $151.8 million in connection with the Arxis Businesses Transaction, as well as cost savings realized from integration initiatives and favorable pricing.

The following table presents revenue by segment, segment Adjusted EBITDA and segment Adjusted EBITDA Margin for the years ended December 31, 2024 and 2023:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | | |
| *(in thousands, except for percentages)* | **2024** | **2023** | **$ Change** | **% Change** |
|  Electronic Components |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Segment Revenue | $360515 | $229842 | $130673 | 56.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Segment Adjusted EBITDA | $129044 | $66044 | $63000 | 95.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Segment Adjusted EBITDA Margin<sup>(1)</sup> | 35.8% | 28.7% |  |  |
|  Mechanical Components |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Segment Revenue | $382477 | $194653 | $187824 | 96.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Segment Adjusted EBITDA | $114955 | $59134 | $55821 | 94.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Segment Adjusted EBITDA Margin<sup>(1)</sup> | 30.1% | 30.4% |  |  |

---

(1) Segment Adjusted EBITDA Margin is calculated as segment Adjusted EBITDA divided by segment revenue.

For more information regarding our segments please refer to "Note 5. Segment Information" to the Arxis Combined Financial Statements included elsewhere in this prospectus.

***Electronic Components***

Electronic Components segment revenue increased by $130.7 million, or 56.9%, for the year ended December 31, 2024 as compared to the year ended December 31, 2023. The increase was primarily due to $98.5 million attributable to the Arxis Businesses Transaction, and higher revenue across our defense and space end markets driven by strong customer demand.

Electronic Components segment Adjusted EBITDA increased by $63.0 million for the year ended December 31, 2024 as compared to the year ended December 31, 2023. This increase was primarily due to $35.1 million attributable to the Arxis Businesses Transaction, as well as robust growth in our defense and space end market and execution of our operational strategy.

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***Mechanical Components***

Mechanical Components segment revenue increased by $187.8 million, or 96.5%, for the year ended December 31, 2024 as compared to the year ended December 31, 2023. The increase was primarily due to $134.4 million attributable to the Arxis Businesses Transaction. The increase was also attributable to higher revenue across all of our end markets, led by growth in the Defense and Space and Commercial Aerospace end markets, reflecting sustained customer demand and higher production activity.

Mechanical Components segment Adjusted EBITDA increased by $55.8 million for the year ended December 31, 2024 as compared to the year ended December 31, 2023. This increase was primarily due to $26.0 million attributable to the Arxis Businesses Transaction, as well as robust organic sales growth in our Commercial Aerospace, and Defense and Space end markets, execution of our operational strategy, including the acquisition of RMB.

**Non-GAAP Financial Information** 

We report our financial results in accordance with GAAP, however, management believes that certain financial measures that are not presented in accordance with GAAP provide management and users of our financial information with useful supplemental information that provides a meaningful view of our performance across periods. We believe Adjusted EBITDA and Adjusted EBITDA Margin provide visibility to the underlying operating performance. Management uses Adjusted EBITDA and Adjusted EBITDA Margin to review and assess the performance of the management team in connection with employee incentive programs and to prepare its annual budget and financial projections. Moreover, our management uses Adjusted EBITDA of target companies to evaluate acquisitions. In addition to Adjusted EBITDA and Adjusted EBITDA Margin, we believe Free Cash Flow and Free Cash Flow Conversion provide useful information regarding how Net cash provided by (used in) operating activities compares to the capital expenditures required to maintain and grow our business, and our available liquidity, after funding such capital expenditures, to service our debt, fund strategic initiatives and strengthen our balance sheet, as well as our ability to convert our earnings to cash. Additionally, we believe such metrics are widely used by investors, securities analysts, ratings agencies and other parties in evaluating liquidity and debt-service capabilities.

Our non-GAAP financial measures may not be comparable to similarly titled measures used by other companies, have limitations as analytical tools and should not be considered in isolation, or as substitutes for analysis of our operating results as reported under GAAP. Additionally, we do not consider our non-GAAP financial measures as superior to, or a substitute for, the equivalent measures calculated and presented in accordance with GAAP. Some of the limitations are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA and Adjusted EBITDA Margin do not reflect the significant interest expense, or the cash
requirements, necessary to service interest payments on our indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Although depreciation and amortization are non-cash charges, the assets
being depreciated and amortized will often have to be replaced in the future, and the cash requirements for such replacements are not reflected in Adjusted EBITDA and Adjusted EBITDA Margin;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA and Adjusted EBITDA Margin exclude the cash expense we have incurred to acquire and integrate
businesses into our operations, which is a necessary element of certain of our acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA and Adjusted EBITDA Margin exclude share-based compensation expense, which has been, and will
continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA and Adjusted EBITDA Margin exclude the substantial amortization expense associated with our
intangible assets, which has been, and will continue to be for the foreseeable future, a significant recurring expense for our business;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA and Adjusted EBITDA Margin exclude certain non-cash or non-routine items included within other income and expenses that are not reflective of our ongoing operational results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA and Adjusted EBITDA Margin do not include the impact of income taxes, which is a necessary
element of our operations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Free Cash Flow and Free Cash Flow Conversion do not represent our residual cash flow available for discretionary
purposes and do not reflect our future contractual commitments.

Management compensates for these limitations by not viewing Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Free Cash Flow Conversion in isolation and specifically by using other GAAP measures, such as Revenue, Net income (loss) and Net cash provided by (used in) operating activities, to measure our operating performance and liquidity. Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Free Cash Flow Conversion are not measurements of financial performance or liquidity under GAAP, and they should not be considered as alternatives to Net income (loss) or Net cash flows provided by (used in) operating activities determined in accordance with GAAP.

We also present Pro Forma Adjusted EBITDA and Pro Forma Adjusted EBITDA Margin for the year ended December 31, 2025 and 2024, as if the Transactions (defined in the "Unaudited Pro Forma Combined Financial Information" section of this prospectus) had occurred on January 1, 2025 and the Supplemental Pro Forma Transactions (defined below) had occurred on January 1, 2024, respectively. Refer to the reconciliation of Pro Forma Arxis, Inc. Net Income to Pro Forma Arxis, Inc. Adjusted EBITDA and Pro Forma Arxis, Inc. Adjusted EBITDA Margin for the year ended December 31, 2025 in the section titled "Summary Combined and Other Financial Information." Refer to the reconciliation of Pro Forma Combined Net Loss to Pro Forma Adjusted EBITDA and Pro Forma Adjusted EBITDA Margin for the year ended December 31, 2024 in the section titled "Unaudited Supplemental Pro Forma Information."

***Adjusted EBITDA and Adjusted EBITDA Margin***

Adjusted EBITDA is defined as net income (loss), adjusted for: (i) interest expense, net; (ii) income tax expense (benefit); (iii) depreciation and amortization; (iv) acquisition and integration costs; (v) restructuring costs; (vi) transaction and other deal related expenses; (vii) share-based compensation expense; (viii) refinancing costs; and (ix) other non-recurring adjustments. Management defines Adjusted EBITDA Margin as Adjusted EBITDA divided by Revenue.

The following table sets forth a reconciliation of Net income (loss) to Adjusted EBITDA and Adjusted EBITDA Margin for the periods presented:

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| *(in thousands, except for percentages)* | **2025** | **2024** | **2023** |
|  Net income (loss)  | $45989 | $(55472) | $(59918) |
|  Interest expense, net | 220316 | 161052 | 124496 |
|  Income tax expense (benefit) | 16325 | 2472 | (9412) |
|  Depreciation and amortization | 200111 | 96303 | 65324 |
|  Acquisition and integration costs<sup>(1)</sup> | 23313 | 25788 | 2900 |
|  Restructuring costs<sup>(2)</sup> | 3772 | 14108 | 1402 |
|  Transaction and other deal related expenses<sup>(3)</sup> | 12695 | 3054 | 643 |
|  Share-based compensation expense<sup>(4)</sup> | 27259 | 406 |  |
|  Refinancing costs<sup>(5)</sup> |  | 335 | 190 |
|  Other non-recurring adjustments<sup>(6)</sup> | 21524 | (4047) | (447) |
|  **Adjusted EBITDA** | $**571304** | $**243999** | $**125178** |
|  **Adjusted EBITDA Margin** | **35.9%** | **32.8%** | **29.5%** |

---

(1) Represents costs incurred to integrate acquired businesses and product lines into our operations, facility
relocation costs, rebranding, system implementation costs and employee expenses related to acquisitions. This also includes amortization expenses of inventory step-up recorded in connection with purchase
accounting of acquired businesses.

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(2) Represents severance, facility consolidation/closure costs and other charges associated with restructuring
programs.

(3) Represents third-party transaction-related costs for acquisitions comprising deal fees, legal, financial and tax
due diligence expenses and valuation costs that are required to be expensed as incurred.

(4) Represents the compensation expense under our share-based plans and deferred compensation plans.

(5) Represents costs expensed related to debt financing activities, including new issuances, extinguishments,
refinancings and amendments to existing agreements.

(6) Represents other income and expense adjustments that are non-recurring, non-operational or not reflective of core performance, such as loss on disposal of assets, commercial commitments or legal settlements, income from transition services agreements and non-operational pension impacts.

***Free Cash Flow and Free Cash Flow Conversion***

We measure Free Cash Flow as Net cash provided by (used in) operating activities less Capital expenditures. Free Cash Flow Conversion is calculated as Free Cash Flow divided by Net income (loss). The following table sets forth a reconciliation of Net cash provided by (used in) operating activities, the most comparable GAAP financial measure, to Free Cash Flow for the periods presented:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| *(in thousands, except for percentages)* | **2025** | **2024** | **2023** |
|  Net cash provided by (used in) operating activities | $251196 | $70946 | $(7919) |
|  Less: |  |  |  |
|  Capital expenditures | (42425) | (28889) | (12502) |
|  Free Cash Flow | $208771 | $42057 | $(20421) |
|  Free Cash Flow Conversion | 454.0% | 75.8% | NM |

---

**Liquidity and Capital Resources** 

Historically, our primary sources of liquidity have been cash and cash equivalents, cash flows from our operating activities and borrowings under our credit agreements, including revolving credit facilities. Our principal historical liquidity requirements have been for acquisitions, capital expenditures, servicing indebtedness and working capital needs. As we continue to expand our business, we may require additional working capital in the future for increased costs, and although we believe that we will be able to fully fund our ongoing capital expenditures, working capital requirements and other capital needs for the foreseeable future through cash on hand and cash flows from our operating activities, we may choose to use borrowings under our credit facilities to finance our operating and investing activities. Based on our current outlook, we believe that net cash provided by operating activities and available borrowings under our credit agreements will be sufficient to fund our cash requirements for at least the next twelve months. As of December 31, 2025, we had $2,636.8 million of borrowings outstanding under the Term Loan Facility, and a $250.0 million commitment under our delayed draw term loan ("DDTL"), of which $24.0 million had been borrowed as of December 31, 2025. We had no outstanding balance under the senior secured Revolving Credit Facility and $5.0 million letters of credits were utilized, resulting in an available borrowing capacity of $395.0 million on the Revolving Credit Facility.

***Cash Flows***

The following table sets forth the major components of our combined statements of cash flows for the periods presented:

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| *(in thousands)* | **2025** | **2024** | **2023** |
|  Net cash provided by (used in) operating activities | $251196 | $70946 | $(7919) |
|  Net cash used in investing activities | (192824) | (35276) | (12187) |
|  Net cash provided by financing activities | 78106 | 62228 | 15580 |

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***Operating Activities***

Cash provided by operating activities increased by $180.3 million for the year ended December 31, 2025 as compared to the year ended December 31, 2024, primarily due to an increase in Net income of $254.8 million, adjusted for non-cash items, and the cash impacts of changes in working capital of $80.3 million. Our overall decrease in working capital performance was primarily attributable to an increase of $75.4 million in Accounts receivable, Inventory, Prepaid expenses and other current assets balances primarily driven by an increase in tax receivables and support for growing customer demand in 2025, and a decrease of $4.9 million in Accounts payable and Accrued expenses and other current liabilities to accommodate the timing of vendor payments. This decrease in working capital was partially offset by an increase in cash flows of $12.0 million in net contract liabilities.

Cash provided by operating activities increased by $78.9 million for the year ended December 31, 2024 as compared to the year ended December 31, 2023, primarily due to a decrease in Net loss of $50.5 million, adjusted for non-cash items, and the cash impacts of changes in working capital of $43.5 million, which was driven largely by improved working capital management resulting from stronger working capital performance in the entities acquired in the Arxis Businesses Transaction, partially offset by changes in contract assets of $14.4 million driven largely by the timing of progress billings. Our improved working capital performance was primarily attributable to cash provided from increases of $29.2 million from Accounts payable and Accrued expenses and other current liabilities, reflecting higher purchasing activity, and an increase in cash flows of $17.4 million generated from Accounts receivable, reflecting improved collection performance, which was partially offset by an increase in cash outflows of $2.7 million in Inventories, to support growing customer demand.

***Investing Activities***

Net cash used in investing activities for the year ended December 31, 2025 was $192.8 million, primarily related to $152.6 million cash consideration paid for acquisitions in 2025 as well as $42.4 million of capital expenditures, which was partially offset by $2.2 million in proceeds from sale and disposal of assets and businesses.

Net cash used in investing activities for the year ended December 31, 2024 was $35.3 million, primarily related to $53.5 million cash consideration paid for acquisitions in 2024 as well as $28.9 million of capital expenditures, partially offset by $46.9 million in cash acquired through the Arxis Businesses Transaction.

Net cash used in investing activities for the year ended December 31, 2023 was $12.2 million, primarily related to $12.5 million of capital expenditures.

***Financing Activities***

Net cash provided by financing activities for the year ended December 31, 2025 was $78.1 million primarily related to $2,808.0 million of proceeds from the issuance of debt, $385.6 million in contributions, and $10.9 million of proceeds from issuance of member units, partially offset by $2,742.7 million of debt repayments and debt financing fees, $363.8 million in distributions, and $6.5 million from the issuances of related party notes receivables.

Net cash provided by financing activities for the year ended December 31, 2024 was $62.2 million primarily related to $185.5 million of proceeds from the issuance of debt, $18.0 million in contributions and $15.0 million in proceeds from issuance of related party payable, partially offset by $136.0 million of debt repayments and debt financing fees, $14.5 million from the issuances of related party notes receivables, and $5.0 million in repayments of related party payable.

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Net cash provided by financing activities for the year ended December 31, 2023 was $15.6 million primarily related to $24.0 million of proceeds from the issuance of debt and $19.9 million of proceeds from the issuance of member units, partially offset by $20.9 million of debt repayments and debt financing fees, $6.1 million from the purchase of interest rate caps, and $1.0 million from the issuances of related party notes receivables.

***2025 Credit Agreement***

On February 26, 2025, wholly-owned subsidiaries of the Arxis Businesses entered into the Credit Agreement with a consortium of banks, led by Citibank N.A. Borrowings under the Term Loan Credit Facility mature on, and remaining commitments under the DDTL thereunder terminate on, February 26, 2032. We may draw on the DDTL until February 26, 2027. Borrowings under the Revolving Credit Facility matures on, and remaining commitments under the Revolving Credit Facility terminate on, February 26, 2030. As of December 31, 2025, we had $2,636.8 million of borrowings outstanding under the Term Loan Facility, and a $250.0 million commitment under our DDTL, of which $24.0 million had been borrowed as of December 31, 2025. We had no outstanding balance under the Revolving Credit Facility and $5.0 million letters of credits were utilized, resulting in an available borrowing capacity of $395.0 million on the Revolving Credit Facility. The Credit Agreement contains customary conditions on the availability of commitments thereunder, including that our consolidated first-lien net leverage ratio is below specified thresholds. The interest rates on borrowings under the Revolving Credit Facility and Term Loan Credit Facility are calculated in accordance with the Credit Agreement and based on our consolidated first-lien net leverage ratio. We have the right to prepay borrowings at any time, subject to certain prepayment premiums applicable in connection with prepayments resulting from certain repricing events. We are obligated to prepay borrowings under certain circumstances, including using excess cash flows and proceeds from certain asset sales, casualty events and from issuances or incurrences of certain indebtedness. The obligations under the Credit Agreement are guaranteed by the restricted subsidiaries of the borrowers and, pursuant to the related holdings guarantee, which is filed as an exhibit to the registration statement of which this prospectus forms a part, by the holding companies of the borrowers, which holding companies are also our wholly-owned subsidiaries. The obligations under the Credit Agreement are secured by substantially all of our assets, which security interests are granted pursuant to the related security agreement, which is filed as an exhibit to the registration statement of which this prospectus forms a part.

The Credit Agreement contains customary negative covenants, including limitations on indebtedness, liens, fundamental changes, asset sales, investments, dividends and other restricted payments, affiliate transactions and other matters customarily restricted in such agreements. In addition, the Credit Agreement includes a financial covenant that requires us to maintain a first-lien net leverage ratio of less than 10.15x when the Revolving Credit Facility is more than 40% utilized. The Credit Agreement also contains customary events of default, after which indebtedness under the Credit Facilities may become due and payable immediately and commitments under the Credit Facilities would terminate, including payment defaults, material inaccuracy of representations and warranties, covenant defaults, bankruptcy and insolvency proceedings, cross-defaults to certain other agreements, judgments against us and our subsidiaries and change in control.

The foregoing summary and description of certain provisions of the Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Credit Agreement, a copy of which is filed as an exhibit to the registration statement of which this prospectus forms a part.

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***Other Obligations and Commitments***

The following table summarizes our contractual obligations and commitments as of December 31, 2025:

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| | | | |
|:---|:---|:---|:---|
| *(in thousands)* | **Total** | **Current** | **Non-Current** |
|  Long-term debt<sup>(1)</sup> | $2633312 | $26853 | $2606459 |
|  Estimated interest payments<sup>(1)</sup> | 1129671 | 185664 | 944007 |
|  Operating lease obligations<sup>(2)</sup> | 64382 | 10584 | 53798 |
|  Finance lease obligations<sup>(2)</sup> | 337 | 95 | 242 |
|  **Total** | $3827702 | $223196 | $3604506 |

---

(1) Interest payments on debt obligations are calculated for future periods using interest rates in effect at the
end of 2025. Certain of these projected interest payments may differ in the future based on changes in reference rate index for variable debt, foreign currency fluctuations, or other factors or events. The projected interest payments only pertain to
obligations and agreements outstanding as of December 31, 2025. Refer to "Note 11. Debt" to the Arxis Combined Financial Statements included elsewhere in this prospectus for further discussion regarding our debt instruments
outstanding as of December 31, 2025.

(2) Our operating leases consist of rent commitments under various leases for office space, warehouses, land and
buildings. The terms of most of these leases are in the range of three to 10 years. The Company's finance leases include machinery, equipment and furniture and fixtures. The terms of these leases range from three to five years. As of
December 31, 2025 our right-of-use assets related to operating leases were $64.7 million and our current and non-current operating lease liabilities were $10.6 million and $53.8 million, respectively. Refer to "Note 12. Leases" to the Arxis Combined Financial Statements included elsewhere in this prospectus for further information.

***Tax Receivable Agreement***

In connection with the Reorganization, Arxis will enter into a Tax Receivable Agreement with Arcline Investment Management, L.P. whereby we will pay to Arcline Investment Management, L.P. 85% of the cash tax savings we realize with respect to the compensation deduction resulting from the transfer of the convertible common stock in respect of the services to be provided under the amended and restated advisory and consulting services agreement. Payments under the Tax Receivable Agreement may reduce cash that would otherwise be available for other uses and for the benefit of all stockholders. See "Certain Relationships and Related-Party Transactions." See also "Risk Factors— Risks Related to Our Class A Common Stock and This Offering."

***Off-Balance Sheet Arrangements***

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future material impact on our financial condition or liquidity. See the Arxis Combined Financial Statements, including the notes thereto, included elsewhere in this prospectus.

**Critical Accounting Estimates** 

The preparation of the Arxis Combined Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, as well as related disclosures of contingent assets and liabilities. Because of the inherent uncertainty in such estimates, actual results may differ from those estimates. Management considers an accounting policy to be critical when it requires difficult, subjective or complex judgments, often as a result of the need to make estimates about matters that are inherently uncertain and that could have a material impact on the Arxis Combined Financial Statements.

Areas that management considers to be critical in the preparation of the Arxis Combined Financial Statements are included below. These estimates require the use of assumptions regarding matters that are highly uncertain, and different assumptions could yield materially different results. Management believes the judgments used are reasonable and supportable, and the Arxis Combined Financial Statements reflect management's best estimates based on currently available information.

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The relevance and importance of these policies will vary from period to period given circumstances and the transactions that are subject to their application, which, in a given reporting period, could lower and increase the criticality of the estimation needed to produce the combined financial statements.

***Revenue Recognition***

The Company recognizes revenue when obligations under the terms of the contract are satisfied and control of goods or services transfers to the customer. For most product sales, this occurs at the point in time when the product ships or is delivered. For certain contracts revenue is recognized over time as performance obligations are satisfied, generally using a cost-to-cost method.

Application of this method requires management to estimate total contract costs and progress toward completion. These estimates involve judgments based on contract duration, availability of materials and labor, and technical risks. Because such estimates are inherently uncertain, changes in assumptions can affect the timing and amount of revenue and profit recognized. When it is determined that estimated total costs will exceed contract revenue, the Company records a provision for the entire expected loss in the period identified.

***Business Combinations***

The measurement of consideration transferred in a business combination is measured at fair value, which is generally calculated as the sum of acquisition-date fair values of the assets transferred by the Company, the liabilities incurred, and the equity interests issued.

Equity interests issued as consideration in a business combination, other than share-based replacement awards, are measured at fair value at the acquisition date, determined in accordance with ASC Topic 820. When possible, the quoted market price in an active market is utilized to measure the fair value of the equity securities exchanged to effect the business combination. When a quoted market price is not available, other methods are utilized to determine fair value which may include use of both the income approach and market approach to determine such acquisition fair value.

The fair value of the equity consideration exchanged in the Arxis Businesses Transaction was determined using a combination of an income approach and a market approach. Under the income approach, we used a discounted cash flow analysis in which projected cash flows were discounted at a rate reflecting the estimated weighted average cost of capital as of the acquisition date. Under the market approach, we selected guideline public companies and applied selected enterprise value to EBITDA multiples to the applicable projected financial metric. We weighted the results of the income approach and market approach to derive an estimated enterprise value, which was then reduced by assumed borrowings. A 50-basis-point increase in the discount rate, holding all other assumptions constant, would have decreased the estimated fair value by approximately $270 million, while a 50-basis-point decrease in the discount rate would have increased the estimated fair value by approximately $360 million. Similarly, a 0.5x increase or decrease in the selected market multiple, holding all other assumptions constant, would have increased or decreased the estimated fair value by approximately $135 million.

The Company allocates the purchase price of acquired businesses to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with any excess recorded as goodwill. This process requires significant judgment and the use of estimates, particularly with respect to intangible assets such as customer relationships, developed technology and trade names. Key assumptions used in these valuations include projected future cash flows, discount rates, useful lives, and selection of comparable companies. The Company estimates fair values for each acquisition as of the respective acquisition date based on facts and circumstances, estimates and assumptions as of that date; accordingly, differences in acquisition dates may result in updated estimates, assumptions, or changes in market conditions.

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To assist with these valuations, the Company engages independent third-party specialists; however, management is ultimately responsible for the estimates and assumptions. Because these valuations depend on forecasts of future operating performance and market conditions that are inherently uncertain, actual results may differ materially from the assumptions used. Changes in assumptions could affect the amounts assigned to acquired assets and liabilities, the level of goodwill recognized and future operating results through amortization expense or potential impairment charges.

The Company applies judgment in determination of the accounting acquirer including evaluating common control groups in a business combination that involves more than two entities. In making these judgments, the Company considers the weighting of indicative factors related to each potential accounting acquirer such as relative size, post combination voting rights, governance, composition of management and terms of exchange. An alternative conclusion regarding an accounting acquirer could result in a materially different accounting outcome.

***Impairment of Goodwill and Other Intangible Assets***

The Company evaluates goodwill and indefinite-lived intangible assets for impairment at least annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Finite-lived intangible assets, such as customer relationships and developed technology, are amortized over their estimated useful lives and reviewed for impairment whenever indicators of impairment exist.

The impairment test for goodwill involves estimating the fair value of reporting units and comparing that amount to the carrying value, including goodwill. The Company estimates fair value primarily using an income methodology-based discounted cash flow model, which requires significant assumptions regarding forecasted revenue, operating margins, working capital needs, and discount rates. For indefinite-lived intangible assets, such as trade names, fair value is estimated using an income-based model that also requires assumptions about future cash flows and discount rates.

These estimates are inherently subjective and require management to make judgments about future operating performance and market conditions. Changes in assumptions – such as reductions in projected revenue, lower operating margins or increases in discount rates – could result in the recognition of impairment charges. While management believes the assumptions used are reasonable and supportable, actual results could differ from those estimates, which may lead to future impairments that could be material to the Company's financial statements.

**Recently Adopted Accounting Pronouncements** 

Refer to "Note 2. Summary of Significant Accounting Policies—Recently Adopted Accounting Pronouncements" to the Arxis Combined Financial Statements included elsewhere in this prospectus for additional information.

**Internal Control Over Financial Reporting** 

We have been a private company since our inception and, as such, we have not been required to meet the internal control over financial reporting requirements that are applicable to a public company. As a result of becoming a public company, we will be required to comply with such requirements and to furnish a report by management on the effectiveness of internal control over financial reporting. Our independent registered public accounting firm is not required to formally attest to the effectiveness of our internal control over financial reporting until our second Annual Report on Form 10-K to be filed with the SEC.

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**Quantitative and Qualitative Disclosures About Market Risk** 

***Interest Rate Risk***

Our primary exposure to interest rate risk results from outstanding borrowings under the Credit Facilities, which have a floating interest rate component. We estimate that a 100 basis point increase or decrease in the applicable average interest rates for the year ended December 31, 2025, would have resulted in an estimated $26.4 million increase or decrease, respectively, in interest expense. See "—Liquidity and Capital Resources" above.

We had cash of $250.3 million as of December 31, 2025, which is held for working capital and general corporate purposes. We do not have restricted cash. We do not enter into investments for trading or speculative purposes. Our cash holdings in interest-bearing accounts are exposed to market risk due to fluctuations in interest rates, which may affect our interest income.

We have entered into various interest rate agreements as economic hedges to certain of our floating rate debt. As of December 31, 2025, we had interest rate contracts with an aggregate notional amount of $2,238.7 million and aggregate fair value of $2.5 million. These interest rate agreements have expiration dates through December 2028.

We will continue to monitor market risk due to fluctuations in interest rates and potential impacts to the fair value of our holdings and operating cash flows.

***Inflation Risk***

We have generally experienced increases in our costs of labor, materials and services consistent with overall rates of inflation, but we do not believe that inflation has had a material effect on our business, results of operations or financial condition. We expect the impact of such increases will be mitigated by efforts to lower costs through manufacturing efficiencies, look for alternative sourcing and reevaluate pricing. However, continued cost inflation during 2026 may continue to require similar efforts to mitigate the impact on our results of operations. Our inability or failure to offset cost increases could adversely affect our business, results of operations and financial condition.

***Foreign Currency Risk***

Our reporting currency is the U.S. dollar. The reporting and functional currency of our wholly owned foreign subsidiaries is a combination of local currency and the U.S. dollar.

Our revenue and operating expenses are generally denominated in the currencies of the countries in which our operations are located, which are primarily in the U.S., the United Kingdom and Germany. Our combined results of operations and cash flows are, therefore, subject to fluctuations due to changes in foreign currency exchange rates and may be adversely affected in the future due to changes in foreign exchange rates. To date, we have not entered into any hedging arrangements with respect to foreign currency risk or other derivative financial instruments, although we may choose to do so in the future. A 1,000 basis point increase or decrease in the British pound or the Euro for the year ended December 31, 2025, would not have resulted in a material impact on our operating results.

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**Connector TopCo, L.P.** 

**Overview** 

Connector designs, manufactures and sells highly engineered electronic components used in mission-critical, harsh-environment applications. Connector serves diverse end markets including serving the defense and space, commercial aerospace and industrial technology end markets. Connector operates manufacturing sites across North America, Europe and Asia.

Connector is a predecessor of Arxis. From September 30, 2024 onwards, following the Arxis Businesses Transaction, Connector is included in the Arxis Combined Financial Statements.

**Factors Affecting Comparability of Results of Operations** 

In addition to what is discussed above under Arxis, the following impacted the comparability of Connector's results of operations.

***Acquisitions***

Connector executes and integrates both tuck-in and transformational acquisitions, which are carefully selected to align with Connector's core business model: IP-led companies with defensible, designed-in component portfolios serving enduring platforms. While the acquisitions, as discussed further in "Note 3. Business Combinations" to the Connector TopCo, L.P. Consolidated Financial Statements included elsewhere in this prospectus, may not be individually significant, they may be relevant when comparing Connector's results from period to period. One such acquisition by Connector is outlined below:

On March 7, 2023, Connector entered into a transaction to acquire 100% equity interest in Legacy Technologies, LLC, which designs and manufactures glass to metal hermetic seal connectors and hi-reliability quartz crystal holders (the "LTI Acquisition").

**Results of Operations** 

The following table sets forth a summary of Connector's results of operations for the period from January 1, 2024 through September 29, 2024 and the year ended December 31, 2023.

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| | | |
|:---|:---|:---|
| **Consolidated Statements of Operations Data:** | **Period from<br>January 1, 2024<br>through<br>September 29,<br>2024** | **Year Ended<br>December 31,<br>2023** |
| *(in thousands)* |  |  |
|  Revenue | $251461 | $328769 |
|  Cost of revenue | 143814 | 203358 |
|  Gross profit | 107647 | 125411 |
|  Selling, general and administrative expenses | 35342 | 52574 |
|  Amortization of intangible assets | 32699 | 43482 |
|  Operating income | 39606 | 29355 |
|  Interest expense, net | 63791 | 84605 |
|  Other expense, net | 464 | 888 |
|  Net loss before income taxes | (24649) | (56138) |
|  Income tax benefit | (4817) | (11314) |
|  Net loss | $(19832) | $(44824) |

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***Period from January 1, 2024 to September 29, 2024 as compared to Year Ended December 31, 2023***

*Revenue* 

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| | | | | |
|:---|:---|:---|:---|:---|
| *(in thousands, except for percentages)* | **Period from<br>January 1, 2024<br>through<br>September 29,<br>2024** | **Year Ended<br>December 31,<br>2023** | **$ Change** | **% Change** |
|  Revenue | $251461 | $328769 | $(77308) | (23.5%) |

---

Revenue decreased by $77.3 million, or 23.5%, for the period from January 1, 2024 through September 29, 2024 as compared to the year ended December 31, 2023. This decrease was primarily due to one less quarter of operations.

*Gross Profit* 

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| | | | | |
|:---|:---|:---|:---|:---|
| *(in thousands, except for percentages)* | **Period from<br>January 1, 2024<br>through<br>September 29,<br>2024** | **Year Ended<br>December 31,<br>2023** | **$ Change** | **% Change** |
|  Gross profit | $107647 | $125411 | $(17764) | (14.2%) |
|  *Gross margin* | *42.8 %* | *38.1 %* |  |  |

---

Gross profit decreased by $17.8 million, or 14.2%, for the period from January 1, 2024 through September 29, 2024 as compared to the year ended December 31, 2023. The decrease was primarily due to one less quarter of profit, partially offset by pricing initiatives, increased volume and operational improvements.

Gross margin was 42.8% for the period from January 1, 2024 through September 29, 2024 as compared to 38.1% during the year ended December 31, 2023. This increase was primarily due to pricing initiatives and operational improvements, partially offset by $2.8 million amortization of inventory step up in 2023.

*Selling, General and Administrative Expenses* 

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| | | | | |
|:---|:---|:---|:---|:---|
| *(in thousands, except for percentages)* | **Period from<br>January 1, 2024<br>through<br>September 29,<br>2024** | **Year Ended<br>December 31,<br>2023** | **$ Change** | **% Change** |
|  Selling, general and administrative expenses | $35342 | $52574 | $(17232) | (32.8%) |
|  *Percentage of revenue* | *14.1 %* | *16.0 %* |  |  |

---

Selling, general and administrative expenses decreased by $17.2 million, or 32.8%, for the period from January 1, 2024 through September 29, 2024 as compared to the year ended December 31, 2023. This decrease was primarily due to one less quarter of expenses, as well as cost controls and integration of acquired businesses.

*Amortization of Intangible Assets* 

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| | | | | |
|:---|:---|:---|:---|:---|
| *(in thousands, except for percentages)* | **Period from<br>January 1, 2024<br>through<br>September 29,<br>2024** | **Year Ended<br>December 31,<br>2023** | **$ Change** | **% Change** |
|  Amortization of intangible assets | $32699 | $43482 | $(10783) | (24.8%) |
|  *Percentage of revenue* | *13.0 %* | *13.2 %* |  |  |

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Amortization of intangible assets decreased by $10.8 million, or 24.8%, for the period from January 1, 2024 through September 29, 2024 as compared to the year ended December 31, 2023. This decrease was primarily due to one less quarter of intangible asset amortization.

*Interest Expense, Net* 

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| | | | | |
|:---|:---|:---|:---|:---|
| *(in thousands, except for percentages)* | **Period from<br>January 1, 2024<br>through<br>September 29,<br>2024** | **Year Ended<br>December 31,<br>2023** | **$ Change** | **% Change** |
|  Interest expense, net | $63791 | $84605 | $(20814) | (24.6%) |
|  *Percentage of revenue* | *25.4 %* | *25.7 %* |  |  |

---

Interest expense decreased by $20.8 million, or 24.6%, for the period from January 1, 2024 through September 29, 2024 as compared to the year ended December 31, 2023. This decrease was primarily attributable to one less quarter of interest expense.

*Other Expense, Net* 

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| | | | | |
|:---|:---|:---|:---|:---|
| *(in thousands, except for percentages)* | **Period from<br>January 1, 2024<br>through<br>September 29,<br>2024** | **Year Ended<br>December 31,<br>2023** | **$ Change** | **% Change** |
|  Other expense, net | $464 | $888 | $(424) | (47.7%) |
|  *Percentage of revenue* | *0.2 %* | *0.3 %* |  |  |

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Other expense, net decreased by $0.4 million, or 47.7%, for the period from January 1, 2024 through September 29, 2024 as compared to the year ended December 31, 2023. This decrease was primarily attributable to a decrease in the loss from foreign currency transactions.

*Income Tax Benefit* 

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| | | | | |
|:---|:---|:---|:---|:---|
| *(in thousands, except for percentages)* | **Period from<br>January 1, 2024<br>through<br>September 29,<br>2024** | **Year Ended<br>December 31,<br>2023** | **$ Change** | **% Change** |
|  Income tax benefit | $(4817) | $(11314) | $6497 | (57.4%) |
|  *Percentage of revenue* | *(1.9 %)* | *(3.4 %)* |  |  |

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Income tax benefit decreased by $6.5 million, or 57.4%, for the period from January 1, 2024 through September 29, 2024 as compared to the year ended December 31, 2023. The decrease was primarily due to a decrease in pre-tax net loss.

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**Liquidity and Capital Resources** 

***Cash Flows***

The following table sets forth the major components of Connector's consolidated statements of cash flows for the periods presented:

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| | | | | |
|:---|:---|:---|:---|:---|
| *(in thousands, except for percentages)* | **Period from<br>January 1, 2024<br>through<br>September 29,<br>2024** | **Year Ended**<br>**December 31,<br>2023** | **$ Change** | **% Change** |
|  Net cash provided by (used in) operating activities | $5722 | $(9419) | $15141 | NM |
|  Net cash used in investing activities | (3514) | (18308) | 14794 | (80.8%) |
|  Net cash provided by financing activities | 2602 | 23389 | (20787) | (88.9%) |

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***Operating Activities***

Cash provided by operating activities increased by $15.1 million for the period from January 1, 2024 through September 29, 2024 as compared to the year ended December 31, 2023, primarily due to a decrease in net loss of $10.3 million, adjusted for non-cash items, and the cash impacts of changes in working capital of $6.0 million primarily driven by timing of customer payments.

***Investing Activities***

Net cash used in investing activities for the period from January 1, 2024 through September 29, 2024 was $3.5 million, which is due to capital expenditures.

Net cash used in investing activities for the year ended December 31, 2023 was $18.3 million, primarily related to $13.6 million cash consideration paid for the LTI Acquisition and $4.9 million of capital expenditures.

***Financing Activities***

Net cash provided by financing activities for the period from January 1, 2024 through September 29, 2024 was $2.6 million, primarily related to $19.0 million of proceeds from the issuance of debt, partially offset by $8.9 million of debt repayments and debt financing fees, $7.5 million from issuances of related party notes receivable.

Net cash provided by financing activities for the year ended December 31, 2023 was $23.4 million, primarily related to $27.7 million of proceeds from the issuance of debt and $8.6 million from proceeds from the issuance of member units, partially offset by $9.2 million of debt repayments and $3.7 million from the purchase of interest rate caps.

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**Unaudited Supplemental Pro Forma Information** 

The comparability of our results of operations for the periods presented in this Management's Discussion and Analysis of Financial Condition and Results of Operations is affected by the Supplemental Pro Forma Transactions, as defined below. To supplement the discussion of our historical results of operations, we have included unaudited supplemental pro forma combined statement of operations information for the year ended December 31, 2024.

The unaudited supplemental pro forma combined statement of operations information reflects the historical results of operations of the Arxis Businesses as if the following transactions, herein collectively referred to as the "Supplemental Pro Forma Transactions," had occurred on January 1, 2024:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Historical Acquisitions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company acquired 100% equity interests of RMB and M-Wave for purchase
consideration of $61.0 million, which included $7.5 million of cash on hand, approximately $50.0 million of third-party debt financing, $4.0 million of rollover equity and $0.9 million of contingent consideration (the
"Historical Acquisitions"). RMB specializes in custom manufacturing and engineered polymers for the aerospace, chemical processing, semiconductor and biopharmaceutical industries. M-Wave specializes in designing and manufacturing RF and
microwave components, including isolators, circulators, adaptors and terminations, for applications in aerospace, defense and cryogenic quantum computing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As a result of applying the acquisition method of accounting in accordance with ASC 805, "*Business Combinations"* ("ASC 805"), inventory, property, plant and equipment and identified intangible assets were fair valued at $6.1 million, $5.8 million and $27.1 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Kaman Acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Prior to the Arxis Businesses Transaction, a subsidiary of Ovation acquired 100% of the outstanding equity
interests of Kaman on April 19, 2024 ("Kaman Acquisition") for purchase consideration of $1,963.0 million, which included $1,900.3 million of cash consideration inclusive of $815.0 million of third-party debt financing,
and $62.7 million of rollover equity. The consideration transferred includes consideration related to businesses that were disposed of or otherwise excluded from the scope of the Arxis Businesses that will comprise Arxis. As such, the unaudited
supplemental pro forma information disclosed herein only includes historical and pro forma information for businesses included in the Arxis Businesses that will comprise Arxis. Kaman Corporation is a leading manufacturer
of mechanical components used in aerospace and defense, medical and specialized industrial products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As a result of applying the acquisition method of accounting in accordance with ASC 805, inventory, property,
plant and equipment, and identified intangible assets were fair valued at $25.4 million, $230.8 million and $808.7 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Arxis Businesses Transaction. Refer to "Note 3. Business Combinations" to the Arxis Combined
Financial Statements included elsewhere in this prospectus for more information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Arxis Businesses Transaction occurred on September 30, 2024. The purchase consideration of
$2,389.9 million represents the fair value of equity exchanged in the Arxis Businesses Transaction by the holders of the acquired businesses, Connector TopCo L.P. and Ovation TopCo, L.P. There was no cash consideration exchanged as part of the
Arxis Businesses Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As a result of applying the acquisition method of accounting in accordance with ASC 805, inventory, property,
plant and equipment, and identified intangible assets were fair valued at $251.4 million, $334.5 million and $1,797.4 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 2025 Acquisitions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company acquired Oldham, which designs and manufactures polymer engineered products for the naval and
civilian shipping industry, oil and gas and traction industries. Total consideration

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transferred was $115.4 million. The acquisition was funded by $92.0 million of proceeds from the Revolving Credit Facility and cash on hand (the "Oldham Acquisition"). <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company acquired Spira, which specializes in custom manufacturing of electromagnetic interference and
radio-frequency interference shielding gaskets and products. Total consideration transferred was $50.5 million. The acquisition was funded by $42.0 million of proceeds from the issuance of debt from the Company's existing agreements and cash
on hand (the "Spira Acquisition," and together with the Oldham Acquisition, the "2025 Acquisitions").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As a result of applying the acquisition method of accounting for Spira and Oldham in accordance with ASC 805,
property, plant and equipment, and identified intangible assets were fair valued at $7.5 million and $76.2 million, respectively.

This unaudited supplemental pro forma financial information presented herein and in the section titled "—Unaudited Pro Forma Adjusted Oldham Year Ended December 31, 2025 as compared to the Unaudited Supplemental Pro Forma Year Ended December 31, 2024" for the year ended December 31, 2024 has been prepared in a manner comparable to the requirements of Article 11 of Regulation S-X but does not comply with Article 11 in that Rule 11-02(c) of Article 11 does not allow for the presentation of pro forma combined statements of operations prior to the most recent fiscal year. It is presented for illustrative purposes only and does not purport to represent the actual results of operations that would have occurred had the Supplemental Pro Forma Transactions taken place as of January 1, 2024, nor does it purport to predict our future operating results. The unaudited supplemental pro forma financial information does not reflect the effects of current financial conditions, potential synergies, cost savings, operating efficiencies or other strategic benefits that may result from the Supplemental Pro Forma Transactions. See "Risk Factors—Risks Related to the Reorganization." The historical combined and unaudited supplemental pro forma financial information included in this prospectus is not necessarily representative of the results that would have achieved as a combined company and may not be indicative of future results.

The historical consolidated financial information of Ovation, which acquired Kaman, has not been included in the unaudited supplemental pro forma financial information because (i) Ovation and its subsidiaries were formed as part of transaction structuring for purposes of acquiring Kaman, (ii) there were no operating activities within Ovation or its subsidiaries prior to effectuating the acquisition of Kaman on April 19, 2024 and from that date through September 29, 2024, Ovation's only activities consisted of the acquisition of Kaman and Kaman's related operating activities, (iii) the historical consolidated financial statements of Ovation, of which there are no material operations or balances as a standalone entity, are not required to be, and have not been, included in this prospectus prior to September 30, 2024, and (iv) its inclusion was not deemed to be material to users of this unaudited supplemental pro forma financial information.

The unaudited supplemental pro forma financial information should be read in conjunction with the Arxis Combined Financial Statements, including the notes thereto, and the Connector TopCo, L.P. Consolidated Financial Statements, including the notes thereto, included elsewhere in this prospectus.

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##### [**Table of Contents**](#toc)
**Unaudited Supplemental Pro Forma Combined Statement of Operations** 

**For the Year Ended December 31, 2024** 

**(In thousands, except share data)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Pro Forma Arxis<br>Businesses (1)** | **Historical<br>Connector<br>TopCo, L.P.** | **Pro Forma<br>Kaman (2)** | **Transaction<br>Adjustments (Arxis<br>Businesses<br>Transaction) (3)** | **Pro Forma<br>2025<br>Acquisitions (4)** | **Pro Forma Total<br>Combined (5)** |
| *(in thousands)* | **Year Ended<br>December 31,<br>2024** | **Period from<br>January 1, 2024<br>to September 29,<br>2024** | **Period from<br>January 1, 2024<br>to September 29,<br>2024** | **Period from<br>January 1, 2024<br>to September 29,<br>2024** | **Year Ended<br>December 31,<br>2024** | **Year Ended<br>December 31,<br>2024** |
|  Revenue | $765476 | $251461 | $395110 | $— | $39358 | $1451405 |
|  Cost of revenue | 431203 | 143814 | 251424 | (3507)(a)(c) | 21010 | 843944 |
|  Gross profit  | 334273 | 107647 | 143686 | 3507 | 18348 | 607461 |
|  Selling, general and administrative expenses | 159109 | 35342 | 167595 | 327 (a) | 5661 | 368034 |
|  Amortization of intangible assets | 73552 | 32699 | 19967 | 5791 (b) | 4918 | 136927 |
|  Operating income (loss) | 101612 | 39606 | (43876) | (2611) | 7769 | 102500 |
|  Interest expense, net | 164524 | 63791 | 57187 |  | (365) | 285137 |
|  Other (income) expense, net | (6522) | 464 | 459 |  | 44 | (5555) |
|  Net (loss) income before income taxes | (56390) | (24649) | (101522) | (2611) | 8090 | (177082) |
|  Income tax (benefit) expense  | 1530 | (4817) | 356 | (548)(d) | 1699 | (1780) |
|  Net (loss) income | $(57920) | $(19832) | $(101878) | $(2063) | $6391 | $(175302) |
|  Pro forma loss per share – basic and diluted<sup>(6)</sup> |  |  |  |  |  | $— |
|  Pro forma number of shares used in computing loss per share – basic and diluted<sup>(6)</sup> |  |  |  |  |  |  |

---

*The accompanying notes are an integral part of, and should be read together with, this unaudited supplemental pro forma financial information.* 

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##### [**Table of Contents**](#toc)
**Notes to the Unaudited Supplemental Pro Forma Combined Statement of Operations** 

1. Pro Forma Arxis Businesses represent the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Historical Arxis<br>Businesses (a)** | **Historical<br>Acquisitions (b)** | **Transaction<br>Adjustments (c)** | **Pro Forma Arxis<br>Businesses (d)** |
| **(***in thousands)* | **Year Ended<br>December 31,<br>2024** | **Year Ended<br>December 31,<br>2024** | **Year Ended<br>December 31,<br>2024** | **Year Ended<br>December 31,<br>2024** |
|  Revenue | $742992 | $22484 | $— | $765476 |
|  Cost of revenue | 411853 | 19289 | 61 (i) | 431203 |
|  Gross profit | 331139 | 3195 | (61) | 334273 |
|  Selling, general and administrative expenses | 156143 | 2959 | 7 (i) | 159109 |
|  Amortization of intangible assets | 72405 |  | 1147 (ii) | 73552 |
|  Operating income (loss) | 102591 | 236 | (1215) | 101612 |
|  Interest expense (income), net | 161052 | (1) | 3473 (iii) | 164524 |
|  Other income, net | (5461) | (1061) |  | (6522) |
|  Net (loss) income before income taxes | (53000) | 1298 | (4688) | (56390) |
|  Income tax expense (benefit) | 2472 | 42 | (984) (iv) | 1530 |
|  Net (loss) income | $(55472) | $1256 | $(3704) | $(57920) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Historical results of operations derived from the results of operations for the year ended December 31,
2024 that are reported in the Arxis Combined Financial Statements included elsewhere in this prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Historical results of operations for the Historical Acquisitions derived from the pre-acquisition financial statements and information not included in this prospectus of M-Wave and RMB for the period January 1, 2024 through
May 8, 2024 and for the period January 1, 2024 through August 27, 2024, respectively (collectively, the "Historical Acquisitions"). The pre-acquisition financial
statements have been conformed to our presentation. The historical results of operations for each acquisition were not considered individually significant and are therefore presented together therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Transaction Adjustments for the Historical Acquisitions are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Represents an adjustment to Cost of revenue and Selling, general and administrative expenses for depreciation
expense related to the step-up in fair value of property, plant and equipment acquired with a total fair value of $5.7 million, and an estimated useful life range of 2 – 8 years, with total pro forma annualized depreciation expense of $1.1
million.

---

| | | | |
|:---|:---|:---|:---|
|  | **Periods from January 1, 2024 to May 8, 2024<br>for M-Wave and from January 1, 2024 to<br>August 27, 2024 for RMB** | **Periods from January 1, 2024 to May 8, 2024<br>for M-Wave and from January 1, 2024 to<br>August 27, 2024 for RMB** | **Periods from January 1, 2024 to May 8, 2024<br>for M-Wave and from January 1, 2024 to<br>August 27, 2024 for RMB** |
| ***(****in thousands)* | **Historical<br>Depreciation<br>Expense** | **Pro Forma<br>Adjustment** | **Pro Forma<br>Depreciation<br>Expense** |
|  Cost of revenue | $591 | $61 | $652 |
|  Selling, general and administrative expenses | 72 | 7 | 79 |
|  Total depreciation expense | $663 | $68 | $731 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Represents an adjustment to Amortization of intangible assets related to the step-up in fair value of
definite-lived intangible assets acquired, comprised of customer relationships, developed technology, and trademarks with fair values of $18.6 million, $4.6 million, and $3.9 million,

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##### [**Table of Contents**](#toc)
respectively, and estimated useful lives of 12-18 years, 10 years, and 10 years, respectively, with total pro forma annualized amortization expense of $2.1 million.

---

| | | | |
|:---|:---|:---|:---|
|  | **Periods from January 1, 2024 to<br>May 8, 2024 for M-Wave and<br>January 1, 2024 to August 27, 2024 for RMB** | **Periods from January 1, 2024 to<br>May 8, 2024 for M-Wave and<br>January 1, 2024 to August 27, 2024 for RMB** | **Periods from January 1, 2024 to<br>May 8, 2024 for M-Wave and<br>January 1, 2024 to August 27, 2024 for RMB** |
| **(***in thousands)* | **Historical<br>Amortization<br>Expense** | **Pro Forma<br>Adjustment** | **Pro Forma<br>Amortization<br>Expense** |
|  Amortization of intangible assets | $— | $1147 | $1147 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Represents an adjustment of $3.5 million to Interest expense (income), net related to the incremental
third-party debt financing obtained as part of the Historical Acquisitions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Represents an adjustment of $1.0 million to Income tax expense (benefit) to reflect the tax impact of the
aforementioned adjustments using the corporate statutory tax rate of 21%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Pro Forma Arxis Businesses represents the unaudited pro forma combined statement of operations of the
Historical Arxis Businesses and the Historical Acquisitions after giving effect to the Historical Acquisitions.

2. Pro Forma Kaman represents the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Historical Kaman**<br>**(a)** | **Historical Kaman**<br>**(a)** | **Transaction<br>Adjustments (b)** | **Pro Forma Kaman<br>(c)** |
| **(***in thousands)* | **Period from<br>April 19, 2024<br>to September 29, 2024** | **Period from<br>January 1, 2024<br>to April 18, 2024** | **Period from<br>January 1, 2024<br>to April 18, 2024** | **Period from<br>January 1, 2024<br>to September 29, 2024** |
|  Revenue | $243813 | $151297 | $— | $395110 |
|  Cost of revenue | 156030 | 90628 | 4766 (i)(iii) | 251424 |
|  Gross profit (loss) | 87783 | 60669 | (4766) | 143686 |
|  Selling, general and administrative expenses | 74395 | 113538 | (20338) (i)(iv) | 167595 |
|  Amortization of intangible assets | 10849 | 2351 | 6767 (ii) | 19967 |
|  Operating income (loss) | 2539 | (55220) | 8805 | (43876) |
|  Interest expense, net | 34262 | 12254 | 10671 (v) | 57187 |
|  Other (income) expense, net | (1330) | 1789 |  | 459 |
|  Net loss before income taxes | (30393) | (69263) | (1866) | (101522) |
|  Income tax expense (benefit) | 3596 | (2848) | (392) (vi) | 356 |
|  Net loss | $(33989) | $(66415) | $(1474) | $(101878) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Historical results of operations derived from the pre-acquisition financial statements and information of Kaman for the period of January 1, 2024 through April 18, 2024, and the historical results of operations derived from the post-acquisition financial statements and information of Kaman for the period
of April 19, 2024 through September 29, 2024, not included in this prospectus. The financial statements have been conformed to our presentation and only include the businesses that are in the scope of the Arxis Businesses. Note the
historical consolidated financial information of Ovation, which acquired Kaman, has not been included in the unaudited supplemental pro forma financial information because (i) Ovation and its subsidiaries were formed as part of transaction
structuring and were ultimately used to acquire Kaman, (ii) there were no operating activities within Ovation or its subsidiaries prior to

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##### [**Table of Contents**](#toc)
effectuating the acquisition of Kaman on April 19, 2024 and from that date through September 29, 2024, Ovation's only activities consisted of the acquisition of Kaman and Kaman's related operating activities, (iii) the historical consolidated financial statements of Ovation, of which there are no material operations or balances as a standalone entity, are not required to be, and have not been, included in this prospectus prior to September 30, 2024, and (iv) its inclusion was not deemed to be material to users of this unaudited supplemental pro forma financial information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Transaction Adjustments for the Kaman Acquisition are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Represents an adjustment to Cost of revenue and Selling, general and administrative expenses for depreciation
expense related to the step-up in fair value of property, plant and equipment acquired with a total fair value of $213.8 million, and an estimated useful life range of 4 – 50 years, with a total pro forma annualized depreciation expense of
$32.1 million.

---

| | | | |
|:---|:---|:---|:---|
|  | **Period from January 1, 2024 to April 18, 2024** | **Period from January 1, 2024 to April 18, 2024** | **Period from January 1, 2024 to April 18, 2024** |
| **(***in thousands)* | **Historical<br>Depreciation<br>Expense** | **Pro Forma<br>Adjustment** | **Pro Forma<br>Depreciation<br>Expense** |
|  Cost of revenue | $4329 | $2311 | $6640 |
|  Selling, general and administrative expenses | 1855 | 990 | 2845 |
|  Total depreciation expense | $6184 | $3301 | $9485 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Represents an adjustment in Amortization of intangible assets related to the step-up in fair value of
definite-lived intangible assets acquired, comprised of customer relationships, developed technology, and trademarks with fair values of $466.0 million, $138.3 million, and $110.3 million, respectively, and estimated useful lives of 7-29 years, 20
years, and 20 years, respectively, with total pro forma annualized amortization expense of $31.7 million.

---

| | | | |
|:---|:---|:---|:---|
|  | **Period from January 1, 2024 to April 18, 2024** | **Period from January 1, 2024 to April 18, 2024** | **Period from January 1, 2024 to April 18, 2024** |
| **(***in thousands)* | **Historical<br>Amortization<br>Expense** | **Pro Forma<br>Adjustment** | **Pro Forma<br>Amortization<br>Expense** |
|  Amortization of intangible assets | $2351 | $6767 | $9118 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Represents an adjustment to Cost of revenue related to the step-up in fair value of inventory acquired which
totaled $25.4 million. The Company will recognize the step-up in fair value as the inventory is sold in Cost of revenue, which for purposes of this pro forma combined financial information is estimated to occur within the pro forma period, based on
the Company's average historical inventory turnover, and therefore not expected to recur beyond 12 months.

---

| | | | |
|:---|:---|:---|:---|
|  | **Period from January 1, 2024 to April 18, 2024** | **Period from January 1, 2024 to April 18, 2024** | **Period from January 1, 2024 to April 18, 2024** |
| ***(****in thousands)* | **Historical<br>Amortization<br>Expense** | **Pro Forma<br>Adjustment** | **Pro Forma<br>Amortization<br>Expense** |
|  Amortization of inventory step-up | $— | $2455 | $2455 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Represents an adjustment to Selling, general and administrative expenses of $21.3 million related to the
replacement of the share-based compensation plans for Kaman. The adjustment eliminates $21.5 million of share-based compensation expense recognized for the pre-acquisition share-based compensation plans that were cancelled and would not have been
incurred had the Kaman Acquisition occurred on January 1, 2024. The adjustment includes $0.2 million of share-based compensation expense related to the new share-based compensation plans that were established.

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##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Represents an adjustment of $10.7 million to Interest expense, net related to incremental third-party debt
financing obtained as part of the Kaman Acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. Represents an adjustment of $0.4 million to Income tax expense (benefit) to reflect the tax impact of the
aforementioned adjustments using the corporate statutory tax rate of 21%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Pro Forma Kaman represents the unaudited pro forma combined statements of operation of Kaman after giving
effect to its acquisition.

3. Transaction Adjustments for the Arxis Businesses Transaction include adjustments to the pre-acquisition period
of Connector and Ovation, assuming the Arxis Businesses Transaction had occurred on January 1, 2024. For purposes of the unaudited pro forma combined statements of operations included herein, Pre-Acquisition Historical Ovation represents Pro Forma
Kaman. The Transaction Adjustments for the Arxis Businesses Transaction are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Represents an adjustment to Cost of revenue and Selling, general and administrative expenses for depreciation
expense related to the step-up in fair value of property, plant and equipment acquired with a total fair value of $334.5 million, and an estimated useful life range of 1 – 27 years, with a total pro forma annualized depreciation expense of
$43.3 million.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Period from January 1, 2024 to September 29, 2024** | **Period from January 1, 2024 to September 29, 2024** | **Period from January 1, 2024 to September 29, 2024** | **Period from January 1, 2024 to September 29, 2024** |
| **(***in thousands)* | **Historical<br>Connector<br>Depreciation<br>Expense** | **Pro Forma<br>Kaman<br>Depreciation<br>Expense** | **Pro Forma<br>Adjustment** | **Pro Forma<br>Total**<br>**Combined<br>Depreciation<br>Expense** |
|  Cost of revenue | $5279 | $16723 | $1262 | $23264 |
|  Selling, general and administrative expenses | 1740 | 7164 | 327 | 9231 |
|  Total depreciation expense | $7019 | $23887 | $1589 | $32495 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Represents an adjustment to Amortization of intangible assets related to the step-up in fair value of
definite-lived intangible assets acquired, comprised of customer relationships, developed technology, and trademarks with fair values of $1,337.2 million, $283.7 million, and $176.5 million, respectively, and estimated useful lives of 18-28 years,
15-20 years, and 10-19 years, respectively, with a total pro forma annualized amortization expense of $82.5 million.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Period from January 1, 2024 to September 29, 2024** | **Period from January 1, 2024 to September 29, 2024** | **Period from January 1, 2024 to September 29, 2024** | **Period from January 1, 2024 to September 29, 2024** |
| **(***in thousands)* | **Historical<br>Connector<br>Amortization<br>Expense** | **Pro Forma<br>Kaman<br>Amortization<br>Expense** | **Pro Forma<br>Adjustment** | **Pro Forma<br>Total<br>Combined<br>Amortization<br>Expense** |
|  Amortization of intangible assets | $32699 | $19967 | $5791 | $58457 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Represents an adjustment to Cost of revenue related to the step-up in fair value of inventory acquired which
totaled $44.8 million. The adjustment reduces Cost of revenue due to, in part, the reversal of the inventory fair value step-up recognized in the Pre-Acquisition Historical Ovation period (such that the pro forma total combined statements of
operations only reflects the amortization of the most recent inventory fair value step-up) that would not have been recognized on a pro forma basis assuming the Arxis Business Transaction occurred on January 1, 2024. The Company will recognize the
step-up in fair value as the inventory is sold in Cost of revenue, which for purposes of this pro forma combined financial information is estimated to occur within the pro forma period, based on the Company's average historical inventory
turnover, and therefore not expected to recur beyond 12 months.

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##### [**Table of Contents**](#toc)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Period from January 1, 2024 to September 29, 2024** | **Period from January 1, 2024 to September 29, 2024** | **Period from January 1, 2024 to September 29, 2024** | **Period from January 1, 2024 to September 29, 2024** |
| **(***in thousands)* | **Historical<br>Connector<br>Amortization<br>Expense** | **Pro Forma<br>Kaman<br>Expense** | **Pro Forma<br>Adjustment** | **Pro Forma<br>Total<br>Combined<br>Amortization<br>Expense** |
|  Amortization of inventory step-up | $— | $25401 | $(4769) | $20632 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Represents an adjustment of $0.5 million to Income tax expense (benefit) to reflect the tax impact of the
aforementioned adjustments using the corporate statutory tax rate of 21%.

(4) Pro Forma 2025 Acquisitions represent the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025**<br>**Acquisitions (a)** | **Pro Forma**<br>**Adjustments (b)** | **Notes** | **Pro Forma<br>2025<br>Acquisitions (c)** |
| *(in thousands* | **Year Ended<br>December 31,<br>2024** | **Year Ended<br>December 31,<br>2024** |  | **Year Ended<br>December 31,<br>2024** |
|  Revenue | $39358 | $— |  | $39358 |
|  Cost of revenue | 20850 | 160 | (i) | 21010 |
|  Gross profit | 18508 | (160) |  | 18348 |
|  Selling, general and administrative expenses | 5399 | 262 | (i) | 5661 |
|  Amortization of intangible assets | 203 | 4715 | (ii) | 4918 |
|  Operating income (loss) | 12906 | (5137) |  | 7769 |
|  Interest expense (income), net | (329) | (36) | (iii) | (365) |
|  Other income, net | 44 |  |  | 44 |
|  Net income (loss) before income taxes | 13191 | (5101) |  | 8090 |
|  Income tax expense (benefit) | 55 | 1644 | (iv) | 1699 |
|  Net income (loss) | $13136 | $(6745) |  | $6391 |

---

(a) Historical results of operations for the 2025 Acquisitions are derived from the pre-acquisition financial
statements and information not included in this prospectus of Spira and Oldham for the year ended December 31, 2024 (collectively, the "2025 Acquisitions"). The pre-acquisition financial statements have been conformed to our
presentation. The historical results of operations for each acquisition were not considered individually significant and are therefore presented together herein.

(b) Pro Forma Adjustments for the 2025 Acquisitions are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Represents an adjustment to Cost of revenue and Selling, general and administrative expenses for depreciation
expense related to the step-up in fair value of property, plant and equipment acquired with a total fair value of $7.5 million, and an estimated useful life range of 1 – 11 years, with total pro forma annualized depreciation expense of $0.9
million.

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| *(in thousands* | **Historical<br>Depreciation<br>Expense** | **Pro Forma<br>Adjustment** | **Pro Forma<br>Depreciation<br>Expense** |
|  Cost of revenue | $299 | $160 | $459 |
|  Selling, general and administrative expenses | 213 | 262 | 475 |
|  Total depreciation expense | $512 | $422 | $934 |

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##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Represents an adjustment to Amortization of intangible assets related to the step-up in fair value of
definite-lived intangible assets acquired, comprised of customer relationships, developed technology, and trademarks with fair values of $57.6 million, $13.1 million, and $5.5 million, respectively, and estimated useful lives of 17-20 years, 10
years, and 10 years, respectively, with total pro forma annualized amortization expense of $4.9 million.

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| *(in thousands)* | **Historical<br>Amortization<br>Expense** | **Pro Forma<br>Adjustment** | **Pro Forma<br>Amortization<br>Expense** |
|  Amortization of intangible assets | $203 | $4715 | $4918 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Represents an adjustment to eliminate Interest expense of $0.04 million related to loans settled as part of the
Spira Acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Represents an adjustment to Income tax expense of $1.6 million, which reflects a $2.7 million adjustment
related to applying the corporate statutory tax rate of 21% on the pre-tax income of the 2025 Acquisitions, as well as a $1.1 million tax benefit to reflect the tax impact of the aforementioned adjustments using the corporate statutory tax rate
of 21%.

(c) Pro Forma 2025 Acquisitions represents the total impact on the unaudited pro forma combined statement of
operations of the year ended December 31, 2024 after giving effect to the 2025 Acquisitions.

(5) Pro Forma Total Combined represents the unaudited pro forma combined statements of operations of the Company
after giving effect to the 2025 Acquisitions, Arxis Businesses Transaction, and Historical Acquisitions.

(6) The pro forma basic and diluted pro forma net loss per share represents Pro Forma Total Combined net loss
divided by the shares of Class A common stock and Class B common stock outstanding as of the date of this offering, assuming an initial public offering price of $ per share of Class A common stock, which is the
midpoint of the price range set forth on the cover page of this prospectus. There are no shares of Class C common stock expected to be outstanding as of the date of this offering. Accordingly, basic and diluted earnings per share of
Class C common stock has not been presented. The table below presents the computation of pro forma basic and dilutive earnings per share (in thousands, except share and per share amounts):

---

| | |
|:---|:---|
|  | **Year Ended<br>December 31, 2024** |
|  **Numerator:** |  |
|  Pro forma total combined net loss | $(175302) |
|  **Denominator:** |  |
|  Basic shares outstanding |  |
|  Effect of dilutive shares<sup>(1)</sup> |  |
|  Diluted shares outstanding |  |
|  Pro forma basic and diluted loss per share |  |

---

*1.* *Arcline has exchange rights which enable them to convert the share of convertible common stock for shares of Class B common stock   (or Class A common stock if no Class B common stock is outstanding at the time of such conversion) as described further in "Description of Capital Stock." The conversion rights cause the Common Units to be considered potentially dilutive shares for purposes of dilutive loss   per share calculations. For the year ended December 31, 2024, these exchange rights were not included in the computation of diluted loss per share because the effect would have been anti-dilutive.* 

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**Reconciliation of Pro Forma Total Combined Net Loss to Pro Forma Adjusted EBITDA and Pro Forma Adjusted EBITDA Margin**

The following table provides a reconciliation of pro forma total combined Net loss to pro forma Adjusted EBITDA and pro forma Adjusted EBITDA Margin, as applicable:

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| | |
|:---|:---|
|  | **Pro Forma**<br>**Total Combined** |
| *(In thousands, except for percentages)* | **Year Ended**<br>**December 31, 2024** |
|  Net loss | $(175302) |
|  Interest expense, net | 285137 |
|  Income tax expense (benefit) | (1780) |
|  Depreciation and amortization | 198639 |
|  Acquisition and integration costs <sup>(1)</sup> | 50739 |
|  Restructuring costs<sup>(2)</sup> | 21947 |
|  Transaction and other deal related expenses<sup>(3)</sup> | 45916 |
|  Share-based compensation expense<sup>(4)</sup> | 2643 |
|  Refinancing costs<sup>(5)</sup> | 382 |
|  Other non-recurring adjustments<sup>(6)</sup> | (4956) |
|  Pro Forma Adjusted EBITDA | $423365 |
|  Pro Forma Adjusted EBITDA Margin | 29.2% |

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(1) Represents costs incurred to integrate acquired businesses and product lines into our operations, facility
relocation costs, rebranding, system implementation costs and employee expenses related to acquisitions. This also includes amortization expenses of inventory step-up recorded in connection with purchase
accounting of acquired businesses.

(2) Represents severance, facility consolidation/closure costs and other charges associated with restructuring
programs.

(3) Represents third-party transaction-related costs for acquisitions comprising deal fees, legal, financial and tax
due diligence expenses and valuation costs that are required to be expensed as incurred.

(4) Represents the compensation expense under our share-based plans and deferred compensation plans.

(5) Represents costs expensed related to debt financing activities, including new issuances, extinguishments,
refinancings and amendments to existing agreements.

(6) Represents other income and expense adjustments that are non-recurring, non-operational or not reflective of core performance, such as income from transition services agreements and non-operational pension impacts.

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**UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION** 

The following unaudited pro forma combined balance sheet as of December 31, 2025 and the unaudited pro forma combined statement of operations for the year ended December 31, 2025 present our combined financial position and results of operations after giving effect to the following transactions (collectively, the "Transactions").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Oldham Acquisition, as described and defined below under the "Oldham Acquisition";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Reorganization transactions, as described and defined above under "Prospectus Summary –
Reorganization";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The issuance to Arcline Investment Management, L.P. ("Arcline") of one share of convertible common
stock, which is convertible into Class B common stock (or Class A common stock if no Class B common stock is outstanding at the time of such conversion);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Tax Receivable Agreement entered into with Arcline, whereby the Company will pay 85% of the cash tax savings
realized; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The sale by us of shares of Class A common stock pursuant to this offering and the application of the
proceeds from this offering as described in "Use of Proceeds," based on the initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus,
after deducting the underwriting discounts and commissions and estimated offering expenses payable by us in connection with this offering (the "Offering").

Except as otherwise indicated, the unaudited pro forma combined financial information presented assumes no exercise by the underwriters of their option to purchase additional shares of Class A common stock in the offering.

The following unaudited pro forma combined financial information is derived from the historical Arxis Combined Financial Statements, included elsewhere in this prospectus. The unaudited pro forma combined statements of operations for the year ended December 31, 2025 give pro forma effect to the Transactions as if they had occurred on January 1, 2025. As the historical Arxis Combined Balance Sheet as of December 31, 2025 already reflects the Oldham Acquisition, the unaudited pro forma combined balance sheet as of December 31, 2025, gives effect to the Reorganization and the Offering as if they had occurred on December 31, 2025.

The unaudited pro forma combined financial information was prepared in accordance with Article 11 of Regulation S-X, using the assumptions set forth in the notes to the unaudited pro forma combined financial information. The unaudited pro forma combined financial information has been adjusted to include transaction accounting adjustments, which reflect the application of the accounting required by generally accepted accounting principles in the United States ("GAAP"), linking the effects of the Transactions listed above to the Company's historical combined financial statements.

As a public company, we will be implementing additional procedures and processes for the purpose of addressing the standards and requirements applicable to public companies. We expect to incur additional annual expenses related to these steps and, among other things, additional directors' and officers' liability insurance, director fees, costs for reporting requirements of the SEC, transfer agent fees, costs for hiring additional accounting, legal, and administrative personnel, increased auditing and legal expenses, and other related costs. Due to the scope and complexity of these activities, the amount of these costs would be based on subjective estimates and assumptions that could increase or decrease materially. We have not included any pro forma adjustments related to these costs.

The unaudited pro forma combined financial information is provided for informational purposes only and is not necessarily indicative of the operating results that would have occurred if the Transactions had been completed as of the dates set forth above, nor is it indicative of our future results. The unaudited pro forma combined financial information reflects adjustments that are described in the accompanying notes and are based

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on available information and certain assumptions we believe are reasonable but are subject to change. The unaudited pro forma combined financial information should be read in conjunction with the Arxis Combined Financial Statements, including the notes thereto, included elsewhere in this prospectus.

The unaudited pro forma combined financial information should be read together with "Prospectus Summary—Reorganization", "Description of Capital Stock", "Use of Proceeds," "Capitalization," "Summary Combined and Other Financial Information," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and the historical Arxis Combined Financial Statements and related notes thereto included elsewhere in this prospectus.

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**ARXIS, INC.** 

**UNAUDITED PRO FORMA COMBINED BALANCE SHEET** 

**As of December 31, 2025** 

**(In thousands, except share data)** 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Historical<br>Arxis<br>Combined** | **Notes** | **Notes** | **Pro Forma<br>Arxis, Inc.** |
|  **Assets** |  |  |  |  |
|  Current assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $250303 | $— | $nan (c) | $250303 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | 216936 |  |  | 216936 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract assets | 67780 |  |  | 67780 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | 315604 |  |  | 315604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 57058 |  | (d) | 57058 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 907681 |  |  | 907681 |
|  Property, plant and equipment, net | 397929 |  |  | 397929 |
|  Intangible assets, net | 2429879 |  |  | 2429879 |
|  Goodwill | 2745351 |  |  | 2745351 |
|  Operating lease right-of-use assets, net | 64651 |  |  | 64651 |
|  Other assets | 50943 | (b) |  | 50943 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $6596434 | $— | $— | $6596434 |
|  **Liabilities and members'/stockholders' equity** |  |  |  |  |
|  Current liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $56467 | $— | $— | $56467 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract liabilities, current | 30027 |  |  | 30027 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities, current | 10584 |  |  | 10584 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt, current | 26853 |  | (c) | 26853 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other current liabilities | 163230 |  |  | 163230 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 287161 |  |  | 287161 |
|  Debt, noncurrent | 2606459 |  | (c) | 2606459 |
|  Contract liabilities, noncurrent | 1414 |  |  | 1414 |
|  Operating lease liabilities, noncurrent | 53798 |  |  | 53798 |
|  Deferred tax liabilities | 384420 | (b) |  | 384420 |
|  Other long-term liabilities | 139124 | (e) |  | 139124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 3472376 |  |  | 3472376 |
|  **Members'/Stockholders' equity** |  |  |  |  |
|  Members' equity | 3124058 | (a) |  |  |
|  Class A common stock, par value $0.01 |  | (a) |  |  |
|  Class B common stock, par value $0.01 |  | (a) |  |  |
|  Class C common stock, par value $0.01 |  | (a) |  |  |
|  Convertible common stock, par value $0.01 |  | (a) |  |  |
|  Preferred stock, par value $0.01 |  | (a) |  |  |
|  Additional paid-in capital |  | (a) | (c)(d) |  |
|  Accumulated deficit |  | (a)(b)(e) |  |  |
|  Accumulated other comprehensive income (loss) |  | (a) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total members'/stockholders' equity** | 3124058 |  |  | 3124058 |
|  Total liabilities and members'/stockholders' equity | $6596434 | $— | $— | $6596434 |

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**ARXIS, INC.** 

**UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS** 

**For the Year Ended December 31, 2025** 

**(In thousands, except share data)** 

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Historical<br>Arxis<br>Combined** | **Historical<br>Oldham<br>(Period from<br>January 1,<br>2025 to June 26,<br>2025)** | **Oldham<br>Transaction<br>Adjustments** | **Pro Forma**<br>**Adjusted**<br>**Oldham** | **Pro Forma<br>Reorganization<br>Transaction<br>Adjustments** | **Pro Forma<br>Offering<br>Transaction<br>Adjustments** | **Pro Forma<br>Arxis, Inc.** |
|  Revenue | $1591020 | $10054 | $— | $1601074 |  |  | $1601074 |
|  Cost of revenue | 836304 | 6673 | 38 | 843015 |  | (f) | 843015 |
|  Gross profit | 754716 | 3381 | (38) | 758059 |  |  | 758059 |
|  Selling, general and administrative expenses | 339081 | 2736 | 13 | 341830 |  | (f)(h)(i)<br>(j) | 341830 |
|  Amortization of intangible assets | 138937 | 108 | 1584 | 140629 |  | (f) | 140629 |
|  Operating income | 276698 | 537 | (1635) | 275600 |  |  | 275600 |
|  Interest expense, net | 220316 |  |  | 220316 |  |  | 220316 |
|  Other income, net | (5932) | (35) |  | (5967) |  |  | (5967) |
|  Net income (loss) before income taxes | 62314 | 572 | (1635) | 61251 |  |  | 61251 |
|  Income tax expense (benefit) | 16325 |  | (343) | 15982 |  | (f)(g) | 15982 |
|  Net income (loss) | $45989 | $572 | $(1292) | $45269 |  |  | $45269 |
|  **Pro Forma earnings per share** |  |  |  |  |  |  |  |
|  Basic |  |  |  |  |  | (k) | $— |
|  Diluted |  |  |  |  |  | (k) | $— |
|  **Pro Forma number of shares used in computing earnings per share:** |  |  |  |  |  |  |  |
|  Basic |  |  |  |  |  | (k) |  |
|  Diluted |  |  |  |  |  | (k) |  |

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**NOTES TO THE UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION** 

1. **Description of the Transactions and Basis of Presentation** 

The unaudited pro forma combined financial information was prepared in accordance with Article 11 of Regulation S-X, as amended by the final rule, Release No. 33-10786 "Amendments to Financial Disclosures about Acquired and Disposed Businesses," and present the pro forma financial condition and results of operations of the Company based upon the historical financial information after giving effect to the Transactions and related adjustments set forth in the notes to the unaudited pro forma combined financial information.

The unaudited pro forma combined financial information presented assumes no exercise by the underwriters of their option to purchase additional shares of Class A common stock. In addition, the unaudited pro forma combined financial information does not reflect any cost savings, operating synergies or revenue enhancements that the consolidated company may achieve as a result of the Transactions.

The unaudited pro forma combined statements of operations for the year ended December 31, 2025, give pro forma effect to the Transactions as if they had occurred on January 1, 2025. The unaudited pro forma combined balance sheet as of December 31, 2025, gives effect to the Transactions as if they had occurred on December 31, 2025.

***The Oldham Acquisition***

In June 2025, we acquired 100% equity interest in Oldham Seals Group Limited ("Oldham"), a Chichester, England based company that designs and manufactures polymer engineered products for the naval and civilian shipping industry, oil and gas and traction industries. Total consideration transferred was $115.4 million. The acquisition was funded by $92.0 million of proceeds from the Revolving Credit Facility and cash on hand (the "Oldham Acquisition"). The effects of the Oldham Acquisition are reflected in the Oldham Transaction Adjustments column in the unaudited pro forma combined statements of operations for the year ended December 31, 2025. As a result of applying the acquisition method of accounting for the Oldham Acquisition in accordance with ASC 805, property, plant and equipment, and identified intangible assets were fair valued at $4.8 million and $54.5 million, respectively. As such, the unaudited pro forma combined balance sheet as of December 31, 2025 reflects the recognition of the assets and liabilities at their fair values applied as of the acquisition date. The Combined Balance Sheet as of December 31, 2025 already reflects the Oldham Acquisition, as such, no pro forma adjustments were made in the unaudited pro forma combined balance sheet as of December 31, 2025.

***The Reorganization***

Immediately prior to the completion of this offering, we intend to effect a reorganization, pursuant to which our wholly owned merger subsidiaries will merge with and into the Arxis Businesses, with the Arxis Businesses surviving. Thereafter, the Arxis Businesses will be wholly owned by us. As consideration for such mergers, we will issue (i) shares of Class A common stock and shares of Class B common stock to the holders of Class A units and vested MIUs, GPUs and VCBs of the Arxis Businesses, of which shares of Class A common stock will be withheld by us at the initial public offering price to satisfy such recipients' resulting tax remittance obligations that will be paid by us and (ii) restricted shares of our restricted units with respect to Class A common stock to holders of unvested MIUs, GPUs and VCBs of the Arxis Businesses, which awards will be subject to forfeiture conditions, including .

***Convertible Common Stock and Tax Receivable Agreement***

In connection with the Reorganization, we will issue to Arcline one share of convertible common stock which is convertible into Class B common stock (or Class A common stock if no Class B common stock is outstanding at the time of such conversion). The convertible common stock is convertible (i) from the

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fifth anniversary of the completion of this offering (, 2031) until the tenth anniversary of the completion of this offering (, 2036) and (ii) prior to the conversion the price of our Class A common stock must equal at least two-times the initial price per share in this offering (the "IPO Price"). The value of the Class A common stock for purposes of determining whether the Conversion Conditions have been met will be determined based on the volume-weighted average prices of shares of the Class A common stock on Nasdaq (or such other principal stock exchange on which such shares are traded at the time of conversion) during any 20 of the 30 consecutive trading day period ending on and including the trading day immediately prior to the conversion date. The conversion period expires on the tenth anniversary of the date of this Offering. The convertible common stock will convert at the product of (i) 1.25% of the Company's fully diluted capital stock (including Class A or Class B common stock issuable upon such conversion) outstanding at the time of conversion multiplied by (ii) (A) two times (B) the value of one minus the quotient obtained by dividing (x) the IPO Price by (y) the stock price per Class A common stock at the time of conversion, as determined by the arithmetic average of the daily volume-weighted average price of shares of the Class A common stock on Nasdaq (or such other principal stock exchange on which such shares are traded at the time of conversion) over the 30 trading day period immediately preceding the conversion date, subject to adjustment to reflect stock splits, stock dividends, reorganizations, reclassifications, consolidations, mergers or sales or similar events. In connection with the issuance of convertible common stock, Arxis, Inc. will enter into a Tax Receivable Agreement with the holders of the convertible common stock, whereby Arxis, Inc. will pay to the holders 85% of the cash tax savings realized by Arxis, Inc. with respect to the compensation deduction from the transfer of the convertible common stock in return for services to be provided under the amended and restated advisory and consulting services agreement and the related an 83(b) election related to the convertible common stock. The Tax Receivable Agreement will be accounted for as a contingent liability, with amounts accrued when considered probable and reasonably estimable.

***The Offering***

The Company is offering shares of Class A common stock in this offering at the initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus. Arxis, Inc. intends to use the proceeds (net of underwriting discounts) from the issuance of shares (which we estimate will be approximately $ million). The Company intends to use approximately $ million of the net proceeds of this offering to repay borrowings under our Credit Facilities, and to use the remainder for working capital and other general corporate purposes, which may include potential acquisitions of, and investments in, complementary businesses, although we have no commitments with respect to any such acquisitions or investments at this time. We estimate these offering expenses (excluding underwriting discounts and commissions) will be approximately $ million.

2. **Notes to Unaudited Pro Forma Combined Balance Sheet** 

Transaction accounting adjustments include the following adjustments related to the unaudited pro forma combined balance sheet as of December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Represents the issuance of shares of Class A common stock and Class B common stock by Arxis, Inc. to
holders of Class A units and vested MIUs, GPUs and VCBs of the Arxis Businesses in exchange for their historical ownership interests in connection with Reorganization. This adjustment also represents the conversion of unvested MIUs, GPUs and
VCBs into restricted shares of Class A common stock, which remain subject to service-based vesting and forfeiture conditions. This adjustment also reflects the issuance of a share of convertible common stock to Arcline.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Represents the following deferred tax adjustments in connection with the Reorganization:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) The pro forma adjustment reflects the release of a $ million valuation allowance
previously recorded against the Company's deferred tax assets related to disallowed interest. Following the Reorganization, the Company expects that it is more likely than not that the

deferred tax assets will be realized, primarily because of the anticipated reversal of existing taxable temporary differences associated with intangible assets.

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ii) As a result of the Reorganization, certain entities previously treated as partnerships for tax purposes are expected to be taxed as corporations. Accordingly, deferred tax assets and liabilities will be recognized as a result of the change in tax status.

iii) Represents a deferred tax asset that will be established in connection with the grant of restricted stock units to certain employees we expect to make in connection with the Reorganization.

iv) Represents a $ million deferred tax liability for the compensation expense associated with the convertible common stock. For tax purposes, the entire compensation expense will be deductible upon issuance of the convertible common stock whereas for GAAP purposes it will be marked to market until conversion and recognized as compensation expense over the requisite service period. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Represents (i) the net proceeds of approximately $ million based on an assumed
initial public offering price of $ per share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus, after deducting assumed underwriting discounts and commissions and
estimated offering expenses and (ii) the related use of $ million of the proceeds to repay outstanding indebtedness under our Credit Facilities, as will be determined prior to the offering, and
$ million of the proceeds for general corporate purposes as described in "Use of Proceeds."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) We are capitalizing one-time incremental direct costs of
$ million associated with the Offering. These costs primarily represent legal, accounting and other direct costs and are recorded in Prepaid expenses and other current assets on our combined balance sheet. Upon completion
of this offering, these capitalized costs will be offset against the proceeds raised from this offering as a reduction of additional paid-in capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Represents a $ million liability under the Tax Receivable Agreement based on our
estimate of the aggregate amount that we will pay to the holders of the convertible common stock under the Tax Receivable Agreement.

The estimated tax benefit to the Company is expected to be based on the value of the convertible common stock at the time of issuance. The future conversion is not expected to impact the Company's tax position. The actual amount that we will recognize as a result of this arrangement will differ based on, among other things: (i) the price per share of our Class A common stock at the time of the issuance; (ii) the amount and timing of future income against which to offset the tax benefits; and (iii) the federal and state tax rates then in effect.

**3.** **Notes to Unaudited Pro Forma Combined Statements of Operations** 

Transaction accounting adjustments include the following adjustments related to the unaudited pro forma combined statements of operations for the year ended December 31, 2025, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) Transaction Adjustments for the Oldham Acquisition are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Represents an adjustment to Cost of revenue and Selling, general and administrative expenses for depreciation
expense related to the step-up in fair value of Property, plant and equipment acquired with a total fair value of $4.8 million, an estimated useful life range of 4 – 11 years, with total pro forma
annualized depreciation expense of $0.6 million.

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| | | | |
|:---|:---|:---|:---|
|  | **Period from January 1, 2025 to June 26, 2025** | **Period from January 1, 2025 to June 26, 2025** | **Period from January 1, 2025 to June 26, 2025** |
| *(in thousands)* | **Historical<br>Depreciation<br>Expense** | **Pro Forma<br>Adjustment** | **Pro Forma<br>Depreciation<br>Expense** |
|  Cost of revenue | $166 | $38 | $204 |
|  Selling, general and administrative expenses | 58 | 13 | 71 |
|  Total depreciation expense | $224 | $51 | $275 |

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ii) Represents an adjustment to Amortization of intangible assets related to the step-up in fair value of definite-lived intangible assets acquired, including Customer Relationships, Developed Technology, and Trademarks with fair values of $43.3 million, $7.8 million, and $3.4 million, respectively, and estimated useful lives of 20 years, 10 years, and 10 years, respectively, with total pro forma annualized amortization expense of $3.3 million. 

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|:---|:---|:---|:---|
|  | **Period from January 1, 2025 to June 26, 2025** | **Period from January 1, 2025 to June 26, 2025** | **Period from January 1, 2025 to June 26, 2025** |
| *(in thousands)* | **Historical<br>Amortization<br>Expense** | **Pro Forma<br>Adjustment** | **Pro Forma<br>Amortization<br>Expense** |
|  Amortization of intangible assets | $108 | $1584 | $1692 |

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iii) Represents an adjustment of $0.3 million to Income tax expense (benefit) to reflect the tax impact of the aforementioned adjustments using the corporate statutory tax rate of 21%. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) Following the Reorganization, Arxis, Inc. will act as the parent of the US federal consolidated tax group.
Arxis, Inc. and its subsidiaries will be subject to U.S. federal income taxes, in addition to state, local and foreign taxes. As a result, the unaudited pro forma combined statement of operations reflects adjustments to income taxes for the
following items:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Recognition of $ million of income tax benefit resulting from the release of a
previously recorded valuation allowance, based on the expected future reversal of sufficient taxable temporary differences related to intangible assets.

ii) Tax impact associated with the establishment of $ million of deferred tax assets and liabilities for entities previously treated as partnerships for tax purposes that are expected to be taxed as corporations as a result of the Reorganization. 

iii) Recognition of $ million of income tax impact on pretax book income (loss) attributable to entities previously treated as partnerships for tax purposes. 

iv) Recognition of $ million of deferred tax expense on the deferred tax liability established on the convertible common stock and a deferred tax benefit associated with the deferred tax asset established on the grant of the RSUs to certain employees. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) This adjustment relates to the compensation expense we expect to incur following the completion of this
offering which relates to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) In connection with this Reorganization, total unrecognized compensation expense of
$ million associated with vested MIUs, GPUs and VCBs will be recognized as a result of the conversion of the Class A units and vested MIUs, GPUs and VCBs for which the service condition has been
satisfied prior to the IPO into Class A common stock and Class B common stock based on the fair value assumed initial public offering price of $ per share, which is the midpoint of the price
range set forth on the cover page of this prospectus. As a result of this conversion, these units are no longer subject to a performance condition.

ii) Recognition of $ million of compensation expense for the year ended December 31, 2025, associated with the grant of RSUs to certain employees we expect to make in connection with this Reorganization. This amount was calculated assuming the RSUs were granted on January 1, 2025, at a fair value equal to the initial public offering price of $ per share of our Class A common stock, which is the midpoint of the price range set forth on the cover page of this prospectus. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Represents an adjustment to compensation expense of $ million in connection with the
issuance of the convertible common stock. This adjustment is the portion of compensation expense which will be recognized in the initial year after the issuance based on the requisite service period.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j) Represents an adjustment to compensation expense of $ million in connection with the
issuance of the Tax Receivable Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k) The pro forma basic and diluted net earnings per share represents pro forma net earnings attributable to Arxis,
Inc. divided by the shares of Class A common stock and Class B common stock outstanding as of the date of this offering, assuming an initial public offering price of $ per share of Class A common stock,
which is the midpoint of the price range set forth on the cover page of this prospectus. There are no shares of Class C common stock expected to be outstanding as of the date of this Offering. Accordingly, basic and diluted earnings per share
of Class C common stock has not been presented. The table below presents the computation of pro forma basic and dilutive earnings per share for Arxis, Inc. (in thousands, except share and per share amounts):

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|:---|:---|
|  | **Year Ended<br>December 31, 2025** |
|  **Numerator:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma net income | $|
|  **Denominator:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic shares outstanding |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of dilutive shares <sup>(1)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted shares outstanding |  |
|  **Pro forma basic earnings per share** | **$** |
|  **Pro forma diluted earnings per share** | **$** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. *Arcline has exchange rights which enable them to convert the share of convertible common stock for shares of Class B common stock (or Class A common stock if no Class B common stock is outstanding at the time of such conversion). The conversion rights cause the convertible common stock to be considered potentially dilutive shares for purposes of dilutive earnings per share calculations.* 

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**BUSINESS** 

**Overview** 

We are a leading designer and manufacturer of proprietary, mission-critical electronic and mechanical components engineered for cutting-edge performance in extreme environments. Leveraging significant IP and world-class engineering capabilities, we design and deliver innovative solutions that address some of our customers' most complex performance needs.

Arxis is the result of a deliberate and disciplined strategy executed by our sponsor, Arcline, and the Arxis management team to create a purpose-built, cohesive business through targeted acquisitions with similar product and end market characteristics. Since 2019, we have acquired and integrated over 30 complementary companies, each meticulously selected for its strategic alignment with our business model and IP-led, designed-in component portfolios. We set out to build the leading supplier of high-reliability, highly engineered components providing mission critical functionality to defense and space systems, commercial aerospace platforms, life-saving medical devices and advanced industrial technologies. Our strategy was to create a differentiated platform – one that did not previously exist in the market – by unifying a set of specialized businesses into a single, integrated solutions provider.

Our heritage lies in the aerospace and defense markets, where we have spent decades establishing embedded positions across hundreds of national security, space and commercial aerospace platforms. We also serve customers across similarly demanding and attractive end markets, including medical technology, high-end semiconductor testing, analytical devices, industrial automation and other specialized industrial sectors, which have unique performance requirements and resilient, long-term growth tailwinds. Our core products include electronic components such as connectors, cable assemblies, microelectronic packaging, RF and microwave products, power products and sensors and mechanical components such as precision and self-lubricating bearings, seals, springs, gaskets and radar absorbing materials. We go to market through 47 customer-facing brands that we believe are synonymous with engineering excellence, quality execution and trusted partnership.

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At our core, we are a business of engineers. Our custom, IP-rich components are developed through engineer-to-engineer collaboration with our customers, and we believe our products set the industry standard for highly engineered solutions designed to operate dependably in high-cost-of-failure applications. Our product portfolio is built upon 67 foundational proprietary technologies from which we have developed thousands of unique products that are designed into more than 600 leading platforms. Given the extensibility of our foundational proprietary technologies, we are able to serve a diverse mix of blue-chip customers including major aerospace and defense OEMs and Tier 1 and Tier 2 suppliers, and leading OEMs and their suppliers in other high-value sectors. A selection of our product set and the end market applications we serve are highlighted below:

![LOGO](g81728g48a01.jpg)

Our products are typically designed into our customers' current and next-generation platforms, many with large installed bases and multi-decade lifecycles. For the year ended December 31, 2025, approximately 90% of our revenue was generated from products that are uniquely designed, developed and produced by Arxis, often protected by patents, trade secrets or exclusive manufacturing processes. These factors contribute to our highly predictable, recurring and sticky revenue base (see "Risk Factors—Risks Related to Intellectual Property"). Although the products we provide are often critical to a platform's mission and functionality, they represent an extremely small portion of a platform's total cost: often less than 0.01%. We believe this outsized value-to-cost ratio, combined with the significant investment in time and resources required by our customers to design in a competing product, creates a high barrier to switching from our products.

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Our world-class technical team of more than 500 multidisciplinary engineers and more than 500 technical sales representatives are product experts that work hand-in-hand with our customers' engineers to develop cutting-edge products for extreme operating environments. For example, our Kryoflex Connector was developed to address our customers' need for a connector capable of withstanding high-temperature and high-pressure harsh environments, and we developed our Bal Conn Platinum Iridium Electrical Contacts to address our customers' need for a high-performing electrical contact that can survive for over 15 years in the human body. This collaborative approach to developing proprietary products addressing cutting-edge performance requirements is the foundation of Arxis' decades-long close customer relationships. Examples of extreme operating environments in which our products are designed to perform include:

![LOGO](g81728g04h27.jpg)

Our recurring revenue profile is underpinned by our "layer cake" business model, where each "layer" of the "cake" represents a unique part, customer and platform combination. The Arxis revenue "layer cake" includes more than 11,000 "layers" that our business units have won over decades. Our engineers and technical salesforce continue to drive volume growth with the addition of new "layers" through the development of custom products for mission-critical applications on new and existing platforms, working alongside our customers sometimes years prior to initial platform launch to solve challenging engineering problems. These products are often designed into platforms that can remain in production for over 20 years. Post-production, these platforms can remain in service for over 40 years in some cases, which creates additional aftermarket revenue opportunities as platforms go through technology modernization cycles and as parts wear out. This combination of build-rate driven growth and aftermarket demand has created a highly recurring and growing revenue base with what we believe is a unique degree of visibility. An illustration of our "layer cake" revenue model is included below, highlighting how "layers" of yearly new business wins compound on top of a stable revenue base from existing platform revenue:

![LOGO](g81728g10z01.jpg)

Engineered to underpin our unique business model, our proprietary business system – Arxis EDGE (Empower Data-Driven Growth and Execution) – is the foundation of our sustained significant revenue growth

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and drives daily execution. Arxis EDGE leverages real-time analytics, insights and communication across the organization to enhance individual decision-making processes, drive team-based selling and accountability, increase cross-selling opportunities across our business units and support our commercial strategy. The Arxis EDGE business system aligns incentives across our engineers, technical salespeople and product managers who regularly form teams to identify, cultivate and book new business, adding new "layers" to our "cake" and fueling profitable growth. Included below is an illustration of how the Arxis EDGE business system uses real-time analytics to accelerate growth:

![LOGO](g81728g00z51.jpg)

We operate our business through a decentralized organizational structure that enables significant growth and efficient and agile operations across our scaled organization of approximately 5,750 employees as of December 31, 2025. This structure prioritizes local autonomy at the business unit level while Arxis EDGE aligns interests and incentivizes collaboration across the entire organization (see "Risk Factors—Risks Related to Our Operations—We have a decentralized organizational structure, under which our business units operate with significant autonomy."). Reporting to our two segment Presidents are 16 "block" Vice Presidents, each of whom manage a group of customer-facing business units. Each of our 46 business units specialize in a product category and is empowered to make decisions to rapidly respond to customer needs, while also having clear goals and structural accountability to drive consistent and predictable performance.

Our segment and block leaders are empowered to identify and evaluate acquisitions that complement Arxis business units, enabling us to pursue multiple add-on opportunities simultaneously without diverting attention from ongoing operations. By targeting adjacent product categories with common business model characteristics, we are able to implement our repeatable value creation playbook to drive incremental growth. After acquisitions close, acquired companies are rapidly immersed in Arxis EDGE, a fundamental part of our integration playbook, enabling us to quickly identify and optimize commercial opportunities to grow revenue and EBITDA and thus drive significant returns. We operate in a large and highly fragmented market, which we believe provides ample accretive acquisition opportunities to accelerate our organic growth strategy, although there can be no assurance that we will be successful in identifying, executing and integrating such acquisitions.

Our business model and decades-long track record of product excellence have translated into long-standing relationships with over 5,000 global customers and embedded positions on over 600 platforms. Given the mission-critical nature of our products, our customers look for highly reliable suppliers they can trust to continually deliver high-quality products on time with a near-zero defect rate. Our ability to meet and often exceed our customers' specifications and expectations, leveraging our comprehensive library of IP and technical know-how, is demonstrated by our decades-long customer relationships and strong customer retention. We believe our differentiated foundational proprietary technologies, track record of addressing complex customer challenges and decentralized operating structure unified through Arxis EDGE create a durable competitive advantage that positions Arxis as a critical long-term partner for our customers.

We operate in two reportable segments: Electronic Components (approximately 44% of our revenue for the year ended December 31, 2025) and Mechanical Components (approximately 56% of our revenue for the year ended December 31, 2025). Both segments focus on proprietary, mission-critical, engineered components with

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outsized value-to-cost ratios, benefit from the same secular growth trends and share a decentralized operating structure unified by Arxis EDGE. The segments are distinct in terms of the product categories they offer: Our Electronic Components segment provides specialized, highly engineered electronic components and interconnect solutions, including connectors, cable assemblies, microelectronic packaging, RF and microwave products, power products, sensors, capacitors and resistors. Our Mechanical Components segment provides precision and self-lubricating bearings, seals, springs, gaskets and ducting, and radar absorbing materials.

Our business is highly diversified across end markets, customers and platforms. While we primarily serve the broader aerospace and defense industries, we also have a significant presence across medical technology and other specialized industrials end markets. For the year ended December 31, 2025, our top ten customers together accounted for only 36% of our revenue, with no single customer representing more than 7%. Similarly, for the year ended December 31, 2025, our top ten platforms accounted for 24% of our revenue, with no platform representing more than 7%. Below is a breakdown of our revenue for the year ended December 31, 2025:

![LOGO](g81728g00z52.jpg)

We operate 72 highly specialized manufacturing facilities globally, including 55 U.S. locations strategically located to serve our domestic customers. Our manufacturing footprint includes production sites certified for ITAR compliance. Our manufacturing processes are highly scalable with capacity to support our expected growth.

Our financial performance reflects the strength and resilience of our business model. We generated revenue of $1,591.0 million for the year ended December 31, 2025, which represents a 10.5% revenue CAGR from the year ended December 31, 2021, calculated based on pro forma revenue from 2021 to 2025, while generating a net income of $46.0 million for the year ended December 31, 2025, and net loss of $55.5 million and $59.9 million for the years ended December 31, 2024 and 2023, respectively. The success of our business model is further evidenced by net income margin of 2.9% and an Adjusted EBITDA margin of 35.9% for the year ended December 31, 2025, representing margin expansion of 1,036 basis points and 307 basis points, respectively, relative to the year ended December 31, 2024. Our capital requirements remain modest relative to our revenue: for the past five years, capital expenditures have always been lower than 3.3% of our revenue, enabling us to sustain high returns on invested capital and maintain flexibility in capital allocation.

**Our Industries** 

Our products are used in mission-critical applications across the aerospace and defense, medical technology and specialized industrial industries. With approximately 47% of our revenue for the year ended December 31, 2025 generated from Defense and Space programs, we expect to benefit from sustained demand driven by heightened national security priorities, evolving geopolitical dynamics and ongoing technology modernization cycles. In addition, approximately 23% of our revenue was derived from Commercial Aerospace markets, where we believe we are well positioned to benefit from increasing global air traffic and higher aircraft production and delivery rates. The medical technology and specialized industrial sectors we serve are also underpinned by secular growth drivers, including growth in minimally invasive and robotic surgeries, increasing

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demand for high-performance computing and advanced processing capabilities and greater complexity in industrial automation and robotics. The following diagram summarizes the primary drivers of our growing end markets:

![LOGO](g81728g00z53.jpg)

1. Based on 2025 revenue

2. Based on management estimates

***Defense and Space***

Defense and Space represents Arxis' largest end market, accounting for approximately 47% of our revenue for the year ended December 31, 2025. This sector benefits from strong tailwinds, including increasing global defense budgets, more frequent modernization programs and the need for advanced technologies to counter near-peer threats. Ongoing global conflicts, coupled with the potential for future conflicts, have accelerated global defense investments. In the U.S., there is bipartisan support for robust defense spending: The Center for American Progress projects that the DoW annual budget will reach $1 trillion by the fiscal year ended September 30, 2026, a substantial increase from approximately $780 billion in fiscal year 2022, driven by multi-theater conflicts and a more advanced and complex threat environment. The current administration is prioritizing investment in high-tech platforms including those already supported by Arxis (e.g., F-35 Joint Strike Fighter, DDG-51 destroyers, Virginia-class submarines and Next-Generation Overhead Persistent Infrared satellites).

The current administration is also prioritizing modernization, resilience and technological superiority, especially in response to rising geopolitical tensions and the need for space control and homeland defense. Recent increases in the RDT&E budget reflect a growing emphasis on next-generation capabilities and strategic deterrence. For fiscal year 2025, the DoW requested an RDT&E budget of approximately $143 billion, which represents an increase of approximately $37 billion compared to fiscal year 2020 levels. The fiscal year 2026 budget request marks a further step up, with the DoW targeting a $36 billion increase, bringing the total RDT&E budget to $179 billion. These increases align with broader strategic themes in defense and space technology, including connected warfighters, C5ISR integration, nuclear deterrence, resilient missile tracking and defeat systems and hypersonic weapons. Arxis directly supports key initiatives across these priorities, including supplying mission-critical components for resilient missile tracking systems such as the SPY-6 radar, positioning the Company for continued growth in the defense and space sector.

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Defense budgets have risen across every major region in recent years, with significant increases in Europe and Asia-Pacific. In Europe, defense spending by NATO members increased from approximately $236 billion in 2015 to approximately $484 billion in 2024, and growth is expected to continue as the continent undergoes a sustained, broad-based rearmament. Since 2021, the number of NATO countries meeting the 2% GDP defense spending target has tripled, with eighteen countries' expenditures targeted to meet the goal in 2024, on their way to their collective commitment to spend 5% of GDP on defense and security by 2035. Asia-Pacific defense expenditures rose from approximately $234 billion to more than $315 billion over the same period, led by India, Japan and South Korea (and excluding China and North Korea). This shift underscores a global commitment to readiness and deterrence, reinforcing our strategic positioning as a supplier of mission-critical components across allied defense ecosystems.

***Commercial Aerospace***

The commercial aerospace end market, within which we include business aviation, is a key growth sector for Arxis, representing approximately 23% of our revenue for the year ended December 31, 2025, with growth supported by rising global air traffic and steadily increasing aircraft production and deliveries.

Commercial Air Transport: The commercial aerospace sector has shown consistent long-term growth trends over the past 75 years, spurred by growing travel demand linked to the development of a global world economy. The industry's growth rate has historically outpaced global GDP growth, with RPKs increasing at approximately 2.0x global GDP growth between 2000 and 2024 according to data published by IATA, reflecting an approximate 6% CAGR.

Global aircraft deliveries for Boeing and Airbus are expected to increase approximately 74% from 2024 to 2028 according to IATA, with near-record order books projected to double the global commercial fleet by 2042. We believe this growth will be fueled by rising passenger demand and the expansion of the middle class worldwide. Additionally, the delayed ramp up of the 737 MAX platform has driven extended lifespans of older aircraft, requiring additional maintenance cycles and greater aftermarket demand for parts. Many of the commercial platforms we serve are converted to freighter aircraft at the end of their passenger-carrying life, extending their useful life by 15-20 years and increasing the need for aftermarket components. Arxis supplies critical components, including bearings, seals and interconnect solutions into all major commercial aerospace platforms (e.g., Boeing 737, Airbus A320), as well as into major engine platforms (e.g., LEAP, PW1000G, PT6, PW4000 & CFM56).

Commercial aerospace OEM revenue historically has been tied to new aircraft production, which is currently supported by the production ramp of several next-generation narrowbody aircraft platforms (e.g., Boeing 737 MAX and Airbus A320neo family of aircraft). These programs are benefiting from substantial order backlogs driven by growing demand for air travel. In 2024, there were approximately 27,150 commercial aircraft in service compared to approximately 19,410 in 2010 and Boeing's 2025 commercial market outlook projects that future demand will require approximately 49,640 commercial aircraft in service by 2044. To reach this scale of an in-service fleet, approximately 43,600 new aircraft will need to be manufactured, with roughly half serving as replacements for the current fleet due to historically low retirement rates and the aging profile of existing aircraft. Arxis' embedded positions on these long-lived commercial aircraft platforms provides a stable and growing revenue base for the Company.

Business Jet and Other: Growth in the business jet sector is driven by rising global wealth, sustained demand for premium travel experiences and the introduction of next-generation aircraft. We believe we are well positioned to capitalize on this growth through supporting leading platforms like the Gulfstream G650, G700 and G800. Arxis' components – such as track roller bearings and engine fire seals – are engineered to meet the unique performance demands of these jets, including extended flight ranges and high-altitude heat ducting. We also benefit from exposure to commercial rotorcraft platforms, where steady fleet utilization and recurring maintenance needs provide durable, multi-year revenue visibility.

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***Industrial Technology***

The Industrial Technology end market accounted for approximately 30% of our revenue for the year ended December 31, 2025 and primarily consists of Medical Technology and Specialized Industrials markets.

Medical Technology: This end market provides attractive exposure to a high-growth sector of the global healthcare industry. Broadly, the medical technology industry has transitioned its emphasis from open procedures towards minimally invasive procedures enabled by specialized technology. These innovative procedures are intended to result in shorter recovery times, fewer complications and lower total cost of care, which has attracted billions of research and development dollars from medical technology OEMs fueling rapid technological advancements in robotic surgery and interventional and minimally invasive devices. Arxis' components enable the functionality of many of these medical devices, and we believe we are well positioned to benefit from growth driven by their global adoption and an expansion of their use cases.

Specialized Industrials: This end market includes diverse, high-growth applications including high-end semiconductor testing, analytical devices, industrial automation and other specialized industrial applications. Key growth drivers in this market include the proliferation of high-performance computing, advanced processing capabilities, cloud computing, electrification and component density, all of which fuels an unprecedented need for next-generation chips and more robust requirements for advanced testing. Industrial process applications continue to benefit from investment in automation and robotics while industrial operators exhibit a pressing need for performance data collected through an ever-increasing array of sensors and connected equipment. Among a wide variety of use cases, our components provide ultra-precise motion, thermal control and signal integrity to facilitate superb, reliable performance at extremely small scales and under demanding physical conditions.

**Our Competitive Strengths** 

Our leading position as a premier, trusted supplier of highly engineered components is underpinned by our highly differentiated capabilities, business model and portfolio composition. Although we face significant competition in our industries, we believe these strengths create a defensible market position and will enable us to profitably grow and drive our continued success. See "Business—Competitive Environment."

***Premier Supplier of Proprietary, Highly Engineered Components Enabling Cutting-Edge Performance in Extreme Environments***

We are a trusted supplier of custom, proprietary, highly engineered components enabling cutting-edge performance in extreme environments. Our engineering excellence and extensive foundational proprietary technologies serve as the backbone of our competitive advantage. Customers choose Arxis because we provide custom solutions to their most complex design challenges and performance requirements. Our products' exceptional functional performance enables us to both win new platform positions and protect our leading market position over time.

Our IP, in-house research and development capabilities and engineering expertise represent decades of knowledge and investment that we believe differentiates us from our competitors. Due to the stringent regulatory, certification and technical requirements across our core end markets, the qualification process for new products is rigorous and costly. These steep costs and extensive lead times drive significant barriers to switching suppliers, resulting in strong incumbency positions on existing platforms.

***Engineer-Led Commercial Model Driving Deep Customer Intimacy Early in the Design Process***

Through our engineer-to-engineer commercial model, our teams become directly embedded with our customers in the initial stages of product development, allowing us to develop future revenue streams and build our "layer cake." Our close engagement establishes us on each platform, deepens customer intimacy, enables sole

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provider status and provides an opportunity to expand content as customer requirements evolve. We remain in constant dialogue with new and existing customers to support new business opportunities. By leveraging Arxis EDGE, we are able to unlock new wins methodically through proactive team-based selling, focusing on the highest-value opportunities and motivating cross-selling across business units, customers and platforms.

***Designed-in Positions Provide Multi-Decade Visibility and Stability***

We are typically the sole provider of our products, which are designed-in for the life of the platforms they serve, creating long-term embedded positions across defense, commercial aerospace, medical technology and specialized industrial markets. The high cost of switching suppliers, combined with the IP-rich nature of our designs and their proven reliability, makes replacement often highly impractical for customers once our components are qualified and integrated.

This designed-in status provides exceptional revenue visibility and stability, with the majority of our installed base tied to platforms that have operational lives exceeding 40 years. These platforms are supported by well-defined refresh and technological upgrade cycles, ensuring that we remain a trusted supplier throughout a platform's lifecycle. We provide support across the full platform lifecycle – enhancing performance, extending platform life and enabling adoption of next-generation technologies – which positions us for long-term growth and resilience in evolving markets.

***Highly Diversified Customer and Platform Base in High-Barrier-to-Entry Markets***

We operate in high-barrier-to-entry markets where performance, reliability and trust are paramount. We have strategically built a diversified business designed to ensure there is no single point of failure and to enhance resilience across market cycles. Our diverse exposure across customers, platforms and products also broadens our opportunity set and creates actionable cross-selling opportunities across our portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Customers</u>: We are a trusted supplier to over 5,000 customers. For the year ended December 31, 2025,
our top 10 customers comprised only 36% of revenue, with no customer comprising more than 7% of our revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Platforms</u>: We are positioned on over 600 premier current and next-generation platforms with the top 10
platforms comprising only 24% of revenue and with no platform comprising more than 7% of our revenue for the year ended December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>End Markets</u>: For the year ended December 31, 2025, approximately 47% of our revenue was derived from
Defense and Space markets and approximately 23% from Commercial Aerospace, with the remaining approximately 30% diversified across attractive, high-growth verticals including medical technology and other specialized industrials. Our diverse end
market mix enhances our total addressable market and provides stability through market cycles.

***Arxis EDGE, Our Proprietary Data-Driven Business System, Empowers Performance and Accelerates Growth***

Our operations are built around a philosophy that encourages local autonomy across our business units and empowers our managers to act independently and with an entrepreneurial spirit. Our decentralized organization is unified through a proprietary business system called Arxis EDGE. This system empowers our proactive, team-based sales approach to drive new and attractive business onto our platform. Arxis EDGE aligns engineers, technical sales teams and product managers to function as a cohesive unit, proactively seeking out and cultivating new opportunities. The system aligns incentives across roles, ensuring that every team member is motivated to secure new business, fueling profitable growth for Arxis. We have a track record of successful cross-selling across business units, customers and platforms with significant runway ahead given the strength of Arxis EDGE and the unique diversity of our portfolio.

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***Robust Financial Profile, Including Resilient Revenue Growth, Compelling Margins and Strong Free Cash Flow Generation***

We have consistently delivered strong revenue growth, achieving revenue growth and organic revenue growth of 114.1% and 8.9%, respectively, in the year ended December 31, 2025 and a long-term revenue CAGR of 10.5%, calculated based on pro forma revenue from 2021 to 2025, while recognizing a net income margin and maintaining an attractive Adjusted EBITDA margin of 2.9% and 35.9%, respectively, for the year ended December 31, 2025. For the definition of organic revenue, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Components of Results of Operations." We also generate robust cash flow, with 546.2% and 454.0% of cash flows from operating activities conversion and free cash flow conversion, respectively, for the year ended December 31, 2025. A significant portion of our revenue is anchored to long-duration platforms, many of which will be in production for over 20 years and in service for decades longer, providing exceptional revenue visibility and stability. Our organic growth algorithm – which is foundational to our commercial approach and financial profile – focuses on volume increases, strategically expanding price and efficiently managing costs. We maintain a culture of operational excellence across our organization through implementation of lean processes to ensure we are continually improving.

***Proven, Disciplined and Scalable M&A Strategy***

We have a long-standing track record of executing and integrating both tuck-in and transformational acquisitions, with 32 acquisitions completed since 2019. Our disciplined M&A approach is rooted in a value creation playbook that emphasizes commercial synergies, cultural alignment and strategic fit with the goal of driving significant revenue and EBITDA growth in the acquired companies. Our repeatable integration playbook preserves the unique strengths of each acquired business while unifying performance standards. Each acquisition is also integrated into our Arxis EDGE business system, which drives attractive cross-selling opportunities and contributes to our sustained growth and long-term value creation.

Each acquisition is carefully selected to align with our core business model: IP-led companies with defensible, designed-in component portfolios serving enduring platforms. Our decentralized structure allows us to integrate new businesses without disrupting local autonomy, preserving the entrepreneurial spirit that drives performance across our organization. We maintain a high bar for strategic fit and near-term accretion, striving for every transaction to contribute meaningfully to our long-term growth and margin profile.

***Experienced Management Team with Track Record of Value Creation***

Our executive team brings decades of experience across the aerospace, defense, medical technology and specialized industrial sectors. We have a proven track record of driving growth, operational excellence and strategic transformation. Our culture emphasizes accountability, collaboration and empowerment, and aligns incentives towards value creation from the CEO through to our business units. Kevin Perhamus, our President and CEO, has led Arxis since its inception, having served as CEO of Arxis predecessors Quantic and Qnnect. He previously held pivotal leadership roles as CEO of Winchester Interconnect and spent a combined 17 years in roles at Teradyne and Amphenol (which acquired Teradyne's Connection Systems Division). Our other highly experienced senior management team members have, on average, more than 26 years of experience in executive and leadership positions at companies including TransDigm, GE Aerospace, Lockheed Martin and Kratos. Arxis' leadership team cultivates a culture of performance and strategic foresight that we believe positions the Company for continued success.

***Ongoing Relationship with and Support from Arcline***

Our ownership structure includes investment funds affiliated with Arcline as the sole beneficial owner of our Class B common stock. As our original founder, we expect Arcline and its principals and affiliates will remain our close partners and will continue to be long-term investors well beyond the completion of this offering.

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Since its founding in 2018, Arcline has developed a proven track record of building institutional compounders, having completed more than 160 acquisitions, through deep partnerships with management teams and a focus on sustainable value creation. Our multi-class share structure is designed to help preserve Arxis' strategic autonomy, long-term focus and ability to execute on our mission while simultaneously benefitting from Arcline's capabilities.

We view Arcline's continued partnership as a key strength that complements Arxis' established growth strategy. In addition to providing strategic support, Arcline contributes valuable insight to our M&A approach through its experience in sourcing, diligence and transaction execution. This partnership enhances our repeatable M&A playbook and supports our ability to sustain compounding growth. With Arcline's support and deep industry expertise, we believe we are uniquely positioned to deliver enduring value for all shareholders, while remaining agile, resilient and focused on our long-term mission.

**Our Growth Strategies** 

***Drive Significant Growth Through Our "Layer Cake" Business Model***

Our proprietary, mission-critical and highly engineered components are designed into a diverse set of blue-chip, multi-decade platforms, including every major commercial and military aircraft in operation today. This diverse platform exposure provides a stable, recurring revenue base with significant visibility from decades-long platform build rates and aftermarket upgrades and replacement cycles. Our significant volume growth is driven by our "layer cake" business model whereby new platform wins create new "layers" and generate sustainable growth as platform production growth rates ramp up to highly recurring build rates, undergo technology upgrade cycles and generate aftermarket replacement demand. Our engineers and technical salesforce are constantly developing new "layers" by working with customers to solve some of their most challenging engineering problems and capturing positions on new platforms with decades-long lifecycles.

Strategic pricing represents an additional lever we employ to support our growth objectives. We compete based on exceptional functional performance, which we aim to deliver across end markets and platforms at an outsized value-to-cost ratio. This role as a critical and value-added partner allows us to exercise commercial discipline when not only pursuing new business but also when delivering on long-term revenue streams. Our adaptable commercial approach allows us to adjust pricing as platform needs evolve, aligning with our customers' priorities while supporting stable and sustainable growth. Our proprietary Arxis EDGE business system uses real-time analytics across thousands of business units and brands and empowers us with the information we need to make real-time, informed commercial decisions.

***Capitalize on Differentiated Engineering Capabilities to Capture Content on Next-Gen Platforms***

We believe our hard-earned reputation for delivering best-in-class, highly engineered solutions to our customers is a key differentiator in our ability to continue to win content on new, high-growth platforms. As aerospace, defense and advanced industrial systems continue to evolve, platforms are becoming increasingly sophisticated and performance-driven, requiring specialized components capable of operating reliably in demanding environments. As one example, the modern battlefield is becoming heavily infused with autonomous systems, AI-powered platforms, cutting-edge sensors and robust communications – each demanding highly specialized components capable of operating reliably under extreme conditions.

We believe Arxis is uniquely positioned to support these evolving requirements through our platform-agnostic solutions, which provide critical functionality across a wide spectrum of high-end applications. Our specialized capabilities enable us to capture both electronic and mechanical product content on next-generation systems, delivering reliable, high-performance solutions that meet the demands of increasingly integrated and mission-critical environments.

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***Deploy a Systematic Approach to New Wins and Cross-Selling Through Arxis EDGE***

We believe our decentralized business unit structure enables our scaled organization to act with a high degree of efficiency and agility as business unit leaders are empowered to independently make decisions to respond to customer needs. This structure prioritizes local autonomy at the business unit level while our proprietary Arxis EDGE business system aligns interests and incentivizes collaboration across the entire organization. Arxis EDGE leverages real-time data and analytics to drive new business and accelerate growth. Our unique team-based sales approach systematically incentivizes our technical commercial organization from across business units to prioritize the highest value opportunities, ensuring resources are concentrated where value creation is greatest. More than 450 of our employees, including engineers and technical salespeople, are eligible to receive incentive compensation based on new business wins. This model drives significant growth through disciplined cross-selling across segments, business units, platforms and customers. By deploying Arxis EDGE, we have seen a rapid increase in cross-selling opportunities across our business units with over 2,000 opportunities in our pipeline as of June 8, 2025, an increase from approximately 50 in 2021. The embedded positions we have on our customers' critical platforms create a strong foundation for content expansion, enabling us to "land and expand" with specific customers and platforms. For example, we first introduced advanced bearing designs utilizing Kamatics' proprietary KAron self-lubricating machinable liners through innovative track roller applications on the Gulfstream G650 in 2008. Due to the strong performance of the KAron self-lubricating track rollers, Gulfstream extended their use to additional interfaces and implemented advanced self-lubricating configurations on five additional aircraft models between 2008 and 2025. This expansion drove approximately a 965x increase in our revenue from this product line and customer.

***Leverage Operational Excellence to Drive Margin Expansion and Cash Flow Improvements***

We focus on operational excellence, implementing lean initiatives that enhance efficiency, expand margins and strengthen cash flows. We are highly focused on driving consistency of execution across our global operations, ensuring best practices are embedded across the entire Arxis platform. As we scale, we apply proven practices across both legacy operations and new acquisitions to accelerate profitability. Our culture of continuous improvement and data-driven decision-making provides a durable foundation for sustained margin expansion. Cost management is one of the three core levers that drives our growth algorithm. Our dedication to operational rigor provides significant runway for additional Adjusted EBITDA margin and cash flow improvement.

***Continue to Pursue Our Disciplined Approach to Accretive M&A***

Executing M&A is in our DNA and is a core tenet of our long-term growth strategy. We maintain a robust pipeline of more than 1,500 M&A opportunities focused on businesses with product offerings and business models consistent with our core playbook: IP-led companies with defensible, designed-in component portfolios serving enduring platforms. Our end markets are highly fragmented with many attractive opportunities for

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continued acquisitions. The following diagram summarizes our addressable M&A opportunities, as well as our current M&A pipeline:

![LOGO](g81728g55a01.jpg)

Based on Management Estimates

Notably, of our 32 completed acquisitions to date, 84% have been sourced through proprietary efforts or limited processes. We follow a well-defined, proven integration playbook that is light touch and has historically resulted in strong, quantifiable value creation. Arxis EDGE has played a fundamental role in our successful M&A execution, enabling disciplined execution across the full M&A lifecycle, from sourcing and evaluation through integration, while allowing us to leverage our decentralized structure to minimize disruption, implement continuous improvement and accelerate cross-selling and commercial integration.

**Our Segments** 

We operate in two reportable segments: Electronic Components and Mechanical Components. Both segments focus on proprietary, mission-critical, engineered components with outsized value-to-cost ratios, benefit from the same secular growth trends and share a decentralized operating structure unified by Arxis EDGE. Both segments serve customers and are designed into platforms across all our primary industries. The segments are distinct in terms of the product categories they offer.

***Electronic Components Segment***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• This segment is comprised of 27 business units and primarily provides specialized, highly engineered electronic
components and interconnect solutions, including connectors, cable assemblies, microelectronic packaging, RF and microwave products, power products, sensors, capacitors and resistors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• This segment goes to market through several preeminent brands, among them:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Evans (29-year tenure), the inventor of patented wet tantalum technology
enabling the highest energy density capacitors in the industry, routinely used where high reliability and Size, Weight and Power ("SWaP") are critical conditions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• PacAero (49-year tenure), the inventor of Kryoflex, a proprietary
patented substance enabling the direct union of a ceramic-to-metal entity to withstand extreme temperatures, pressures and vibrations, as well as exposure to hazardous
materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• This segment represented approximately 44% of our revenue for the year ended December 31, 2025.

***Mechanical Components Segment***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• This segment is comprised of 19 business units and primarily provides components that facilitate or control
movement, including precision and self-lubricating bearings, seals, springs, gaskets and ducting, and radar absorbing materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• This segment goes to market through several preeminent brands, among them:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Kamatics (59-year tenure), the inventor of KAron, a leading
self-lubricating machinable liner enabling high-precision and maintenance-free bearings with fail-safe performance in harsh environments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Bal Seal Engineering (67-year tenure), the inventor of Bal Contact, a
leading platinum iridium electrical contact, enabling medical technology OEMs to develop and manufacture complex implantable devices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Swift Textile Metallizing (70-year tenure), the inventor of metallized,
highly flexible elastomeric material providing leading stealth and radar-absorbing capabilities, enabling high altitude and high-g maneuvers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• This segment represented approximately 56% of our revenue for the year ended December 31, 2025.

**Sales and Marketing** 

Our commercial model is built on deep technical engagement with customers throughout the qualification and design process. We employ an engineer-to-engineer selling approach that is integrated in customer product development, allowing us to solve complex performance, reliability and manufacturing challenges early in the design cycle. This collaboration fosters deep customer intimacy and positions Arxis as a trusted partner on long-duration, high-value platforms. We go to market through 47 distinct, customer-facing brands with a reputation for high performance, quality and on-time delivery, drawing from a comprehensive library of proprietary technology families to co-develop designed-in, often sole-sourced components. Because our products deliver an outsized value-to-cost ratio and require rigorous certification and requalification, the time and resource investment to switch creates high barriers to entry and protects our embedded positions across multi-decade platform lifecycles, including ongoing build-rate production and aftermarket demand as platforms modernize and parts wear over time.

To translate this technical engagement into scalable growth and accountability across our portfolio, commercial execution is enabled by our Arxis EDGE business system, which empowers engineers, technical sales teams and product managers to function as a cohesive unit that drives systematic new business generation. Arxis EDGE is our proprietary business system that uses real-time analytics visibility to align incentives across roles and drive accountability through ad hoc pursuit teams that link opportunities across business units and brands. More than 450 of our employees, including engineers and technical salespeople, are eligible to receive incentive compensation based on new business wins. This structure supports disciplined cross-selling and content expansion and directly underpins our "layer cake" revenue model, where each win adds a new recurring revenue "layer" tied to a unique part number, customer, and platform. Arxis EDGE has a proven track record of fueling growth, strengthening cross-selling opportunities, and deepening customer connectivity.

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**Competitive Environment** 

As a supplier of highly engineered aerospace, defense and industrial components, we differentiate primarily on engineering expertise, proprietary technology and the ability to deliver highly reliable solutions. Products serving our end markets require deep technical expertise and must meet stringent qualification standards. As a result, competition tends to be limited to a small group of highly experienced manufacturers.

Our products play a critical role on platforms with decades of production visibility, delivering consistent performance and reliability across the full platform lifecycle. Once we establish a position on a multi-decade platform, stringent qualification requirements and proprietary IP create high switching costs that protect the position for the full life of the platform. Deep integration and customer trust further reinforce this moat, and recurring aftermarket demand sustains our role and profitability.

The supplier landscape for our products is highly fragmented, with few scaled competitors. Given the market fragmentation, our competitive set varies across individual products and applications, ranging from divisions of large public corporations to small, privately held companies with singular capabilities that lack infrastructure and capacity to scale. We have few direct competitors that provide the breadth of products, solutions and expertise that we are able to offer our customers.

Our comprehensive IP and product portfolio enables us to address a uniquely wide range of technical requirements and support customers in solving some of their most complex engineering challenges. While we face competition across individual product categories, we believe that our leading comprehensive portfolio of IP-backed components is difficult to replicate. We believe Arxis' scale, combined with our proven track record of innovation and operational excellence, positions us as a preferred partner in end markets where reliability, performance, and full lifecycle support are critical.

**Government Regulation** 

The aerospace and defense industries are highly regulated, and the products and aftermarket services we provide must meet rigorous technical, quality and performance standards. Our operations are subject to oversight by governmental and intergovernmental authorities worldwide, including the U.S. Federal Aviation Administration ("FAA"), the European Union Aviation Safety Agency ("EASA") and the UK Civil Aviation Authority ("CAA"), among others.

In addition to governmental regulations, we must also meet the quality and performance standards established by our customers, including OEMs, airlines and maintenance providers. These customers are themselves subject to oversight by the FAA and other aviation authorities and require that all components and services they procure comply with applicable safety and airworthiness regulations.

Because we supply defense-related products both directly to the U.S. government and through prime contractors, our business is subject to numerous laws and regulations governing contract pricing and related practices. Participation in the defense contracting process also subjects us to detailed requirements concerning bidding, billing, cost accounting and compliance with various statutes. Contracts subject to the Truth in Negotiations Act ("TINA") accounted for less than 6% of our revenue for the year ended December 31, 2025.

We are also subject in certain instances to various U.S. and international trade control and export regulations, including the Arms Export Control Act, the ITAR, the EAR and economic sanctions administered by OFAC. Our non-U.S. operations are also subject to the laws and regulations of foreign jurisdictions, which may include regulations that are more stringent than those imposed by the U.S. government on our U.S. operations.

Certain of our products may be subject to regulation by the FDA or comparable regulatory authorities in other jurisdictions. These agencies require that medical and related components meet specific safety,

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performance and quality standards prior to commercial distribution. Satisfaction of FDA requirements may take a substantial amount of time and the actual time required may vary substantially based upon the type, complexity and novelty of the product. Compliance may involve product registration, facility certification and adherence to current good manufacturing practices and ongoing quality system requirements.

In addition, our operations must comply with applicable data privacy and protection laws, rules, regulations and standards such as the GDPR, CCPA and CMMC, among other similar frameworks in jurisdictions where we operate.

Certain of these regulations carry substantial penalty provisions, including suspension or debarment from government subcontracting for a period of time if we are found to be in violation. We carefully monitor all of our contracts and contractual efforts to minimize the possibility of any violation of these regulations. There has been no material adverse effect to our consolidated financial statements nor competitive positions as a result of these government regulations. However, our operations may in the future be subject to new and more stringent regulatory requirements, so in that regard, we closely monitor industry trade groups to attempt to understand how possible future regulations might impact us. In addition, we are subject to various rules and regulations related to government contracts that could lead to renegotiation or termination. See "Risk Factors—Risks Related to Our Industry and Business—We are subject to certain unique business risks as a result of supplying products to companies contracting with the U.S. government."

**Proprietary Technologies** 

The development and protection of proprietary technologies, including patents, trademarks, trade secrets, know-how and other confidential information, are core to our business and underpin our ability to maintain differentiated performance and long-term competitive advantage. Our product portfolio is built upon 67 foundational proprietary technologies from which we have developed thousands of unique products. Foundational proprietary technologies consist of IP in the form of patents, trademarks and trade secrets, know-how and confidential information, as well as other exclusive manufacturing processes and proprietary process knowledge and technology, both internally developed and acquired. We develop and acquire new proprietary technologies on an ongoing basis, some of which may expire in the future. We believe that the loss or expiration of any single IP right would not have a material effect on our results of operations or financial condition.

As of December 31, 2025, we own 204 issued patents, which will expire between March 31, 2026 and December 29, 2042, and have 133 registered trademarks.

**Manufacturing and Facilities** 

Our manufacturing operations are built around specialized process knowledge and precision engineering capabilities developed over decades of producing mission-critical components. Our manufacturing footprint is designed to support a comprehensive mix of complex, engineered components at scale with consistent quality, reliability and delivery. Our facilities employ advanced machining, assembly and testing processes that enable us to reliably deliver products with tight tolerances and consistent performance. We emphasize accuracy, repeatability and quality in every step of production, which is reflected in the durability and performance of our products. Our operations are designed to be efficient and capital-disciplined, leveraging a lean, entrepreneurial approach that drives continuous improvement and cost productivity.

Our manufacturing footprint spans a global network of facilities, each focused on distinct product families and process expertise. This distributed structure enhances resilience and ensures that no single site represents a material dependency for our overall production capacity. We operate 72 manufacturing facilities across North America, Europe and Asia. Our footprint is primarily leased, with 43 leased facilities in the U.S. and 10 leased

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facilities internationally, providing flexibility and scalability. We own 12 facilities in the U.S. and seven facilities internationally. In total, we have approximately three million square feet of manufacturing space.

Most of our facilities integrate manufacturing, engineering, distribution, and administrative activities under one roof, supporting close collaboration and operational efficiency. Our manufacturing footprint is organized such that each facility is typically dedicated to specific product families and process expertise, enhancing operational focus and reducing reliance on any single location. Each site is well maintained and appropriately equipped to meet current and anticipated production needs, and we believe our existing footprint provides ample capacity to support growth for the foreseeable future.

**Raw Materials** 

We source a diverse range of raw materials and manufactured components from a broad network of qualified suppliers. We believe our supply chain is well-established and that most key materials and components are readily available from multiple sources at competitive prices. Our long-standing supplier relationships and disciplined procurement practices help ensure continuity of supply and cost efficiency. While temporary disruptions in raw material availability or pricing can occur, we do not believe the loss of any single supplier would have a material long-term effect on our operations. We actively manage inventory levels to maintain operational flexibility while minimizing excess working capital, and we continually monitor input markets to mitigate inflationary and availability pressures. In the limited cases where specific materials or components require specialized certifications – such as those subject to aerospace and defense qualification standards – we work closely with our suppliers and customers to ensure compliance and continuity.

**Human Capital Resources** 

As of December 31, 2025, we employed 5,753 people. Of our total workforce, approximately 72% are based in the U.S., 22% in Europe and 6% in other regions. Approximately 12% of our employees are covered by collective bargaining agreements or works council arrangements, primarily in Germany, Czech Republic and Canada, and we have not experienced any material labor disruptions. The remainder of our workforce is not unionized.

We believe our ability to attract, develop, and retain highly skilled employees – particularly engineers, technicians, and operations professionals – is a key driver of our success. We place significant emphasis on talent development and have strong incentive structures in place that align individual performance with our long-term objectives. Our employee relations are strong across our global operations, reflecting a culture of engagement, accountability, and shared commitment to safety and performance. We believe our workforce is well positioned to support continued growth across our platform.

**Seasonality** 

We do not believe that our revenue is subject to significant seasonal variation.

**Legal Proceedings** 

From time to time, we may be subject to various legal proceedings and claims that arise in the ordinary course of our business activities. The results of litigation and claims cannot be predicted with certainty. See "Risk factors—Risks Related to Government Regulation and Legal Matters—Litigation and other proceedings may adversely affect our business." See "Note 14. Commitments and Contingencies" to the Arxis Combined Financial Statements included elsewhere in this prospectus for a summary of legal proceedings to which we are a party.

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**MANAGEMENT** 

**Biographical Information of Our Executive Officers and Directors** 

The following table provides information regarding persons who will serve as our executive officers and directors upon the completion of the offering:

---

| | | |
|:---|:---|:---|
| **Name** | **Age (1)** | **Position(s)** |
| Kevin Perhamus | 54 | President, Chief Executive Officer and Director |
| Azad Badakhsh | 46 | Chief Financial Officer and Treasurer |
| Jennifer Allen | 54 | Chief Legal Officer and Secretary |
| Jason Roth | 55 | President Electronic Components |
| Ross Sealfon | 49 | President Mechanical Components |
| Rajeev Amara | 50 | Chairman and Director |
| Shyam Ravindran | 42 | Director |
| Patrick Allen | 61 | Director |
| Stephen Oetgen | 56 | Director |

---

(1) Ages are provided as of December 31, 2025.

***Kevin Perhamus*** has served as our President and Chief Executive Officer since Arxis, Inc.'s formation, having served as CEO of Arxis predecessors Quantic from 2020 to 2022 and Qnnect since 2022. From 2010 to 2020, he served as the CEO of Winchester Interconnect. Before that, he spent a combined 17 years in roles at Teradyne and Amphenol (which acquired Teradyne's Connection Systems Division). He holds a Bachelor of Science in Chemical Engineering from the University of New Hampshire and a Master of Business Administration from the Questrom School of Business of Boston University. We believe that Mr. Perhamus' leadership of our business as well as our predecessors Quantic and Qnnect, significant executive, technical, operational and other experience in our industry and knowledge of our business and industry make him a valuable member of our board of directors.

***Azad Badakhsh*** has served as our Chief Financial Officer and Treasurer since March 2025. From 2016 to March 2025, he was a Managing Director at Moelis & Company and, from 2010 to 2016, he was a Vice President and Senior Vice President at Moelis & Company. Before that, he held multiple positions at UBS Investment Bank. He holds a Bachelor of Science in Economics with concentrations in finance and accounting from the Wharton School at the University of Pennsylvania.

***Jennifer Allen*** has served as Chief Legal Officer and Secretary of Arxis since 2025. Prior to joining Arxis, from September 2018 until November 2025, Ms. Allen was Chief Administrative Officer, Senior Vice President, General Counsel, and Secretary of Triumph Group, Inc., an international aerospace manufacturing company headquartered in Radnor, Pennsylvania. From November 2016 to September 2018, Ms. Allen served as Senior Vice President, General Counsel and Secretary of CIRCOR International, Inc., an international manufacturing company headquartered in Burlington, Massachusetts. From April 2010 to November 2016, she was Vice President & Associate General Counsel, Corporate and M&A, at BAE Systems, Inc., the U.S. subsidiary of BAE Systems plc, a large international aerospace and defense company. Ms. Allen holds a Juris Doctor from the University of Pennsylvania Carey Law School and holds a Bachelor of Arts in English and Political Science from the University of Delaware. ****

***Jason Roth*** has served as the President of the Electronics Component Segment of Arxis since 2025. Prior to the formation of Arxis, Mr. Roth held roles as the President/GM of Pacific Aerospace and Electronics and PacAero Block Leader within Qnnect, an Arxis predecessor company from July 2023 to April of 2025. Prior to joining Arxis and Qnnect, Mr. Roth was employed with Transdigm in multiple roles. From 2012 to 2017 he held positions as Director of Sales and Engineering at Skurka Aerospace. From 2017 to 2021 he served as President of Marathon Norco Aerospace. From 2021 to 2023 he was President of Power Device Components. Earlier in his

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career, Mr. Roth held various engineering and leadership roles in product development working for Boeing Satellite Systems, Kimball Microelectronics and Stellar Microelectronics. Mr. Roth has a Bachelor of Arts in Physics from UC Santa Cruz, an MSEE from California State University Northridge and a Masters of Business Administration and Masters of Science in Finance from Indiana University Kelley School of Business.

***Ross Sealfon*** has served as President of the Mechanical Segment of Arxis, Inc. since its formation in 2025. Prior to the formation of Arxis, Mr. Sealfon served as President and Chief Executive Officer of Quantic, an Arxis predecessor company, from 2022 to 2024. Mr. Sealfon previously served as President of Winchester Interconnect, a provider of interconnect solutions, from 2020 to 2022. He held roles of increasing responsibility at Winchester Interconnect from 2013 to 2020, including Vice President and General Manager, Vice President of Sales, and Director of Corporate Development. Earlier in his career, Mr. Sealfon held various corporate finance roles. Mr. Sealfon holds a Bachelor of Arts in Psychology from Middlebury College and a Master of Business Administration from the Boston College Carroll School of Management.

***Rajeev Amara*** has served as a member of the board of directors of each of the Arxis Businesses since they were under Arcline ownership and our board of directors since Arxis, Inc.'s formation. Since 2018, he has served as the Chief Executive Officer of our Sponsor. Before that, he was a managing director at Golden Gate Capital for more than a decade. He holds a Bachelor of Science in Economics from the Wharton School at the University of Pennsylvania. We believe that Mr. Amara's service on the board of directors of the Arxis Businesses, leadership of our Sponsor, including in connection with its acquisitions of the Arxis Businesses, and knowledge of our business and industry make him a valuable member of our board of directors.

***Shyam Ravindran*** has served as a member of the board of directors of each of the Arxis Businesses since they were under Arcline ownership and our board of directors since Arxis, Inc.'s formation. Since 2018, he has served as the President of our Sponsor. Before that, he was a principal at Golden Gate Capital, where he worked for more than a decade. He holds a Bachelor of Science in Management Science and Engineering from Stanford University. We believe that Mr. Ravindran's service on the board of directors of the Arxis Businesses, leadership of our Sponsor, including in connection with its acquisitions of the Arxis Businesses, and knowledge of our business and industry make him a valuable member of our board of directors.

***Patrick Allen*** has served as a member of our board of directors since March 2026. He served as the Chief Financial Officer for Collins Aerospace, a division of Raytheon Technologies, from 2018-2020. He had previously served as the Chief Financial Officer for Rockwell Collins from 2015 through 2018, having taken on roles of increasing responsibility at Rockwell Collins since he joined the company in 1998. Mr. Allen has served as a director of Alliant Energy Corporation since 2011 (and chair since May 2025) and Tennant Company since February 2026. He previously served as director of Triumph Group, Inc. from 2023 until 2025. He received his B.S. in Finance from The Pennsylvania State University. Mr. Allen's long track record of leading finance and treasury functions in the aerospace industry greatly benefits Arxis, along with his extensive experience in capital markets, accounting, and SEC financial reporting. In addition, he adds strong knowledge of Arxis's customers and suppliers to the board.

***Stephen Oetgen*** has served as a member of our board of directors since March 2026. Most recently, he served as Managing Director of Smoky Mountain Advisory Co., a firm he founded focused on specialty consulting and accounting services. He previously served as Managing Director, General Counsel, and Chief Financial Officer at Golden Gate Private Equity, Inc. from 2013 to 2023, and prior to that was a senior partner at Kirkland & Ellis LLP from 1993 to 2013, where he served on the firm's Finance Committee and was a founding partner of its San Francisco office. Mr. Oetgen received a B.S. in Accountancy from the University of Illinois at Urbana-Champaign and obtained his CPA in May 1991. He earned a J.D. from Georgetown University Law Center and is admitted to the Illinois and California State Bars. He has served as a Continuing Lecturer at the University of California, Berkeley School of Law since 2008 and as a Lecturer in Law at Stanford University Law School. We believe Mr. Oetgen's experience and expertise contribute meaningfully to Arxis' board and its oversight of legal, accounting, and acquisition activities.

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**Relationships and Arrangements** 

There are no familial relationships between any of our executive officers and directors. Each of our directors was appointed by our Sponsor. In connection with this offering, we intend to enter into a stockholders agreement with our Sponsor, pursuant to which our Sponsor will have certain director nomination rights. See "Certain Relationships and Related-Party Transactions—Stockholders Agreement." Each of Rajeev Amara, Shyam Ravindran and Patrick Allen will initially be deemed to be Sponsor Designees (as defined below).

**Director Independence** 

Our board of directors has determined that each of Patrick Allen and Stephen Oetgen are an independent director under Nasdaq corporate governance standards. As a controlled company, we intend to avail ourselves of the exemption from the requirement that a majority of the board of directors consist of independent directors.

**Board Composition** 

Upon completion of the offering, our board of directors will consist of five members. The total number of directors constituting our board of directors will not be less than three nor more than nine, with the exact number of directors to be determined from time to time exclusively by our board of directors. Our directors will initially be subject to annual elections. However, after our Sponsor and its permitted transferees cease to beneficially own common stock representing a majority of the total voting power of our outstanding common stock, our directors will be divided into three classes, serving staggered three-year terms. See "Description of Capital Stock—Board Composition; Election and Removal of Directors." In addition, in connection with this offering, we intend to enter into a stockholders agreement with our Sponsor, pursuant to which our Sponsor will have certain director nomination rights as long as our Sponsor and its permitted transferees beneficially own common stock representing at least 10% of the total voting power of our outstanding common stock. See "Certain Relationships and Related-Party Transactions—Stockholders Agreement."

**Board Committees** 

Our board of directors will have an audit committee, a compensation committee and a nominating and corporate governance committee. The composition and responsibilities of each committee is described below. Members will serve on these committees until their resignation or until as otherwise determined by our board of directors.

***Audit Committee***

The members of our audit committee will be Patrick Allen (chair), Rajeev Amara, Shyam Ravindran and Stephen Oetgen. Our Board has determined that Mr. Allen and Mr. Oetgen are each an independent director under Nasdaq corporate governance standards and Rule 10A-3 of the Exchange Act and each member of our audit committee is financially literate. In addition, Patrick Allen is an "audit committee financial expert" as defined in Item 407(d)(5)(ii) of Regulation S-K promulgated under the Securities Act. This designation does not impose any duties, obligations or liabilities that are greater than are generally imposed on members of our audit committee and our board of directors. Our audit committee is directly responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• selecting a firm to serve as the independent registered public accounting firm to audit our financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ensuring the independence of the independent registered public accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• discussing the scope and results of the audit with the independent registered public accounting firm and
reviewing, with management and that firm, our interim and year-end operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establishing procedures for employees to anonymously submit concerns about questionable accounting or audit
matters;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• considering the adequacy of our internal controls and internal audit function;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing material related-party transactions or those that require disclosure; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approving or, as permitted, pre-approving all audit and non-audit services to be performed by the independent registered public accounting firm.

***Compensation Committee***

The members of our compensation committee will be Rajeev Amara (chair), Shyam Ravindran and Stephen Oetgen. Each member of our compensation committee is a non-employee director, as defined by Rule 16b-3 of the Exchange Act. As a controlled company, we intend to avail ourselves of the exemption from the requirement that we have a compensation committee that is composed entirely of independent directors. Our compensation committee is responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and approving, or recommending that our board of directors approve, the compensation of our executive
officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and recommending to our board of directors the compensation of our directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• administering our stock and equity incentive plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and approving, or making recommendations to our board of directors with respect to, incentive
compensation and equity plans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing our overall compensation philosophy.

***Nominating and Corporate Governance Committee***

The members of our nominating and corporate governance committee will be Shyam Ravindran (chair), Rajeev Amara and Stephen Oetgen. As a controlled company, we intend to avail ourselves of the exemption from the requirement that we have a nominating and corporate governance committee that is composed entirely of independent directors. Our nominating and corporate governance committee is responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• identifying and recommending candidates for membership on our board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and recommending our corporate governance guidelines and policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing proposed waivers of the code of conduct for directors and executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overseeing the process of evaluating the performance of our board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overseeing our corporate governance practices, including our corporate governance framework and code of business
conduct and ethics; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assisting our board of directors on corporate governance matters.

**Controlled Company Status** 

After the consummation of this offering, we will be a "controlled company" under Nasdaq corporate governance standards. Under Nasdaq corporate governance standards, a company of which more than 50% of the voting power is held by an individual, group or another company is a "controlled company" and may elect not to comply with certain corporate governance requirements. We intend to avail ourselves of certain of these exemptions available to controlled companies, including (i) the requirement that a majority of the board of directors consist of independent directors, (ii) the requirement that we have a compensation committee that is composed entirely of independent directors and (iii) the requirement that we have a nominating/corporate governance committee that is composed entirely of independent directors. In the event that we cease to be a "controlled company," we will be required to comply with these provisions within the transition periods specified in Nasdaq corporate governance standards.

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**Code of Conduct and Ethics** 

In connection with this offering, our board of directors will adopt a code of business conduct and ethics that applies to all of our employees, officers and directors. Upon completion of this offering, the full text of our code of business conduct and ethics will be posted on the investor relations section of our website. We intend to disclose future amendments to our code of business conduct and ethics, or any waivers of such code, on our website or in our SEC filings.

**Compensation Committee Interlocks and Insider Participation** 

None of our executive officers has served as a member of a compensation committee (or if no committee performs that function, the board of directors) of any other entity that has an executive officer serving as a member of our board of directors.

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**EXECUTIVE AND DIRECTOR COMPENSATION** 

As described elsewhere in this prospectus, Arxis is a consolidated entity made up of the Pre-IPO Entities. While Arxis has engaged in preliminary discussions regarding its anticipated compensation and benefit programs and policies, neither Arxis nor our board of directors has made any determinations with respect to the compensation and benefits applicable to the individuals who will serve as our executive officers and non-employee directors following this offering, other than as specifically noted below. Preliminary descriptions regarding our compensation and benefits programs applicable to those of our employees who will serve as our executive officers (including those who will be our named executive officers) and those who will serve as our non-employee directors, are provided below, and decisions regarding such programs will continue to be discussed and developed as we transition to becoming a public company.

Information regarding the historical compensation paid prior to the Reorganization to those persons who will become our executive officers (including our named executive officers) and non-employee directors upon completion of this offering is not indicative of the compensation that will be provided to those executive officers and non-employee directors following the completion of this offering, as they will have significantly different roles and responsibilities with respect to our consolidated company following this offering. As of the date of this prospectus, we anticipate that, in addition to Kevin Perhamus, who will serve as our President and Chief Executive Officer, and Azad Badakhsh, who will serve as our Chief Financial Officer and Treasurer, the individuals listed below will be named executive officers of Arxis. Additionally, we anticipate that Rajeev Amara, Shyam Ravindran, Patrick Allen and Stephen Oetgen will each serve as non-employee members of our board of directors. Prior to the Reorganization, Mr. Perhamus served as the Chief Executive Officer of Qnnect and Quantic, while Mr. Badakhsh is a newly appointed executive who was hired to serve as Chief Financial Officer of Arxis, but who did not have a specific role with any of our Pre-IPO Entities, and Mr. Oetgen was appointed to serve as a member of the board of directors of Arxis and has not served as a member of the boards of directors of any of the pre-IPO Entities. In addition, Mr. Amara, Mr. Ravindran have each served as a member of the board of directors of each of the individual Pre-IPO Entities and have not received any compensation for such services. In the case of Mr. Perhamus, his historical compensation with Qnnect and Quantic, including short-term and long-term incentive compensation, was set based on the specific business goals and objectives of individual entities that do not represent Arxis as a whole. In addition, following this offering, Mr. Perhamus, along with the rest of the Arxis management team, will devote his time and attention and Arxis' financial resources to the development and implementation of corporate strategies and policies that are based on the specific business characteristics of Arxis. The compensation strategy to be established by our compensation committee will reflect the size, business segment, growth opportunity and operational strategy, among other factors, applicable to Arxis as a whole, each of which is different from that of the individual Pre-IPO Entities. Accordingly, any historical compensation provided to the individual management teams and boards of directors of each Pre-IPO Entity is not indicative of the prospective compensation to be provided for the services these individuals will be providing to Arxis following this offering. As a result, we have not included information regarding the compensation paid and other benefits provided to those individuals, including those individuals we expect to be our named executive officers and non-employee directors, by the Pre-IPO Entities for fiscal year 2025 or any previous fiscal year. In the case of Mr. Badakhsh, who was hired with the intent that he would serve as Chief Financial Officer of Arxis, we have entered into an offer letter with him providing for his compensation and benefits in that role, the terms of which are described below.

**Named Executive Officers** 

As noted above, effective upon completion of this offering, we expect that the following individuals will be named executive officers of Arxis (collectively, the "named executive officers"). As we continue to analyze and make determinations with respect to the individuals who will comprise the executive officers of Arxis, we will identify additional individuals who we expect will comprise our remaining named executive officers for fiscal year 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Kevin Perhamus, Chief Executive Officer

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Azad Badakhsh, Chief Financial Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Jennifer Allen, Chief Legal Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Jason Roth, President Electronic Components

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ross Sealfon, President Mechanical Components

Any compensation decisions for our named executive officers prior to this offering were made by the Pre-IPO Entities, as applicable. Executive compensation decisions following this offering will be made by our compensation committee, under the compensation and benefit plans, programs and policies that will be adopted by Arxis.

**Future Compensation and Benefit Plan Arrangements** 

Arxis is in the process of developing certain compensation and benefit plan arrangements to be adopted by Arxis in connection with this offering, including, but not limited to, an omnibus equity incentive plan. Any decisions regarding the future compensation and benefit plan arrangements of Arxis that are currently known are described in further detail below. We expect that more detailed disclosure will be provided in subsequent filings as these arrangements continue to be more fully developed and adopted.

**Agreements with Named Executive Officers** 

***Chief Financial Officer Offer Letter***

In January 2025, Qnnect entered into an offer letter with Mr. Badakhsh to serve as the Chief Financial Officer of Arxis. The offer letter provides for Mr. Badakhsh's annual base salary, target bonus opportunity and participation in Qnnect welfare benefit plans. In addition, the offer letter provides for Mr. Badakhsh's receipt of incentive unit awards in each of the Pre-IPO Entities, as described in more detail under "Arxis Equity Incentive Arrangements" below.

The offer letter further provides for cash severance payable to Mr. Badakhsh in the event of a termination of his employment by Qnnect without cause or by him with good reason (each as defined in the offer letter), in the form of (i) nine months of base salary, and (ii) a pro rata portion of his annual bonus actually payable for the year of termination, payable at the same time annual bonuses are paid to our senior management employees generally (in each case, subject to Mr. Badakhsh's execution and non-revocation of a release of claims). If Mr. Badakhsh's employment is terminated due to his death or disability, he will receive any accrued but unpaid annual bonus for the prior fiscal year. Mr. Badakhsh is expected to be subject to customary confidentiality, assignment and protection of intellectual property and non-disparagement covenants, as well as non-competition and non-solicitation restrictions during employment and for a period of two years thereafter.

***Executive Employment Agreements***

In connection with this offering, subject to approval by our board of directors or compensation committee, we intend to enter into employment agreements with each of our executive officers, including our named executive officers, which will supersede the terms of the existing offer letters with such individuals.

**Executive Annual Incentive Program** 

In connection with this offering, subject to approval by our board of directors or compensation committee, we intend to adopt an annual cash-based incentive bonus program which will govern the grant of annual cash bonuses to our named executive officers after the completion of this offering.

**Arxis Equity Incentive Arrangements** 

In connection with this offering, we intend to adopt, subject to approval by our board of directors and stockholders, an omnibus equity incentive plan and an employee stock purchase plan in order to attract, motivate and retain talent following the completion of this offering, preliminary descriptions of which are provided below.

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***Pre-IPO Incentive Units***

Each of our named executive officers holds incentive unit awards in one or more of our Pre-IPO Entities. These awards are made in the form of incentive units in the applicable Pre-IPO Entity's management aggregator which correspond to incentive units in the applicable Pre-IPO Entity, and are intended to be treated as "profits interests" for U.S. federal income tax purposes. Mr. Perhamus holds incentive unit awards which relate to Class B units in each of Qnnect, Quantic, Kaman and IPS and Mr. Badakhsh holds incentive unit awards in each Pre-IPO Entity that relate to Class B units in each of Qnnect, Quantic, Kaman and IPS.

The incentive unit awards are subject generally to both a service-based vesting condition and a performance-based vesting condition, with 50% (or 75% in the case of Mr. Perhamus) of the applicable award service vesting in equal annual installments over five years from the applicable grant date (subject to continued employment through each vesting date), and 50% (or 25% in the case of Mr. Perhamus) of the award vesting upon the occurrence of an approved sale event (subject to continued employment through such date), based on the achievement of the investment funds affiliated with Arcline capital contributions over the applicable award participation threshold.

In connection with this offering, it is expected that each outstanding incentive unit award that is service-vested at such time will convert into shares of our Class A common stock, and each outstanding incentive unit award that is unvested at such time (including the portion of such award subject to the performance-based vesting condition) will convert into restricted stock with respect to shares of our Class A common stock that remain subject only to the service-based vesting condition as follows: (i) any portion of the related incentive unit award that remained subject to the service-based vesting condition will continue to vest over the original vesting schedule that applied to the award and (ii) the portion of the related incentive unit award that remained subject to the performance-based vesting condition will service vest over three years beginning on the later of (x) the one-year anniversary of the closing of this offering and (y) the three-year anniversary of the applicable vesting commencement date set forth in the individual's award agreement. All performance-based vesting conditions applicable to the incentive unit awards prior to this offering will be eliminated once we are a public company, and any shares of our Class A common stock held by our employees as a result of this conversion will be subject to applicable lock-up restrictions.

***2026 Omnibus Incentive Plan***

In connection with this offering, we intend to adopt, subject to approval by our board of directors and our stockholders, the Arxis, Inc. 2026 Omnibus Incentive Plan, or the Omnibus Incentive Plan, for the purpose of granting long-term equity incentive awards to our employees, consultants and non-employee directors following this offering. The following summary describes the material terms of the Omnibus Incentive Plan. This summary is not a complete description of all provisions of the Omnibus Incentive Plan and is qualified in its entirety by reference to the Omnibus Incentive Plan, a copy of which is filed as an exhibit to the registration statement of which this prospectus forms a part. If approved, the Omnibus Incentive Plan will become effective upon the effectiveness of this registration statement.

*Types of Awards.* Awards under the Omnibus Incentive Plan will be made in respect of shares of our Class A common stock and will include stock options (including options intended to qualify as incentive stock options under Section 422 of the Code ("ISOs") and nonqualified stock options), stock appreciation rights ("SARs"), restricted stock, unrestricted stock, restricted stock units ("RSUs"), performance awards, other cash-based awards and other share-based awards. We refer to such awards together as "Awards."

*Plan Administration.* The Omnibus Incentive Plan will be administered by the compensation committee of the board of directors, which will have the discretion and authority to take any actions necessary or desirable for the administration of the Omnibus Incentive Plan, including, but not limited to, (i) interpreting the Omnibus Incentive Plan, (ii) determining the number of shares covered by Awards and the type of Awards to be granted to each participant, (iii) determining the terms and conditions and any amendments to any Award, and (iv) determining the method of settlement or exercise of any Awards. To the extent permitted by applicable law,

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the compensation committee may delegate some or all of its authority under the Omnibus Incentive Plan, including the authority to grant Awards, provided that any such delegation will not apply to any Award for a person then covered by Section 16 of the Exchange Act.

*Eligibility.* Employees, non-employee directors, and consultants are eligible to be selected to participate in the Omnibus Incentive Plan.

*Authorized Shares.* Subject to adjustment as described below, the maximum number of shares of our Class A common stock authorized for issuance under the Omnibus Incentive Plan will not exceed shares of our Class A common stock. The number of shares reserved for issuance under the Omnibus Incentive Plan will be increased on the first day of each fiscal year of our Company following the effective date of this offering by a number equal to the lesser of (i) 5% of the outstanding number of shares of all classes of our common stock (on a fully diluted basis) on the last day of the immediately preceding fiscal year and (ii) such number of shares determined by the compensation committee in its discretion. The maximum number of shares that may be issued upon the exercise of ISOs under the Omnibus Incentive Plan will be shares, subject to adjustment.

In general, to the extent that any Awards are forfeited, canceled, expire or otherwise lapses or are settled, in whole or in part, without the delivery of shares, those shares will again become available for grant under the Omnibus Incentive Plan. In addition, shares withheld in respect of taxes relating to any Award and shares tendered or withheld to pay the exercise price of stock options will again become available for issuance under the Omnibus Incentive Plan.

*Director Compensation Limit*. No non-employee director who participates in the Omnibus Incentive Plan will receive compensation for services on the board of directors for any calendar year (including the year in which they are first elected or appointed to the board of directors) in excess of $750,000 in the aggregate, including cash payments and Awards (which will be calculated based on the grant date fair value for financial reporting purposes).

*Stock Options.* The compensation committee is permitted to grant stock options under the Omnibus Incentive Plan. The exercise price of a stock option may not be less than the fair market value of a share on the grant date (other than in the case of Awards granted in assumption of, or in substitution for, an outstanding award previously granted by a company or other business acquired by the Company or with which the Company combines, which we refer to as "Substitute Awards"). Each stock option will expire no later than the tenth anniversary of the date the stock option is granted.

*Stock Appreciation Rights.* The compensation committee is permitted to grant SARs under the Omnibus Incentive Plan. The exercise or hurdle price of a SAR may not be less than the fair market value of a share on the grant date (other than in the case of Substitute Awards). Each SAR will expire no later than the tenth anniversary of the date the SAR is granted.

*Restricted Stock, Unrestricted Stock and Restricted Stock Units.* The compensation committee is permitted to grant restricted stock awards, unrestricted stock awards and RSUs under the Omnibus Incentive Plan. A restricted stock award is an award of shares that is subject to restrictions and forfeiture conditions. An unrestricted stock award is an award of shares that is not subject to restrictions on vesting, but may be subject to restrictions on transferability or other restrictions as the compensation committee may impose. An RSU is an award that is granted with respect to one share or has a value equal to the fair market value of one such share. RSUs may be paid in cash, shares, other Awards, other property or any combination thereof, as determined in the full and sole discretion of the compensation committee.

*Performance Awards.* The Omnibus Incentive Plan permits the grant of performance-based stock and/or cash Awards. The compensation committee may structure Awards so that shares, cash, other property or any combination thereof will be issued or paid only following the achievement of certain pre-established performance goals during a designated performance period determined by the compensation committee.

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*Other Cash-Based and Other Share-Based Awards.* The compensation committee is permitted to grant other equity or equity-based Awards and cash-based Awards on such terms and conditions as the compensation committee will determine, subject to limitations under applicable law. For Awards in the nature of a purchase right, the shares will be purchased by such methods and in such forms as determined by the compensation committee.

*Changes in Capitalization.* If the compensation committee determines that, as a result of a corporate transaction or event affecting the shares, an adjustment is necessary in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Omnibus Incentive Plan, the compensation committee will equitably adjust any or all of (i) the number and type of shares (or other securities) which thereafter may be made the subject of Awards under the Omnibus Incentive Plan (including the share limit and the ISO limit) and (ii) the terms of any outstanding Award, including the exercise price, the number or type of shares or other securities of the Company or other property subject to outstanding Awards and/or other terms and conditions of outstanding Awards, including the performance criteria of any performance awards.

*Effect of Termination of Service or a Change in Control.* The compensation committee may provide, by rule or regulation or in any applicable Award agreement, or may determine in any individual case, an Award may be exercised, settled, vested, paid or forfeited in the event of a participant's termination of service prior to the vesting, exercise or settlement of such Award.

Upon a change in control (as defined in the Omnibus Incentive Plan), the compensation committee may take any one or more of the following actions with respect to any outstanding Award (which need not be uniform across Awards or participants): (i) continuation or assumption of Awards by the successor or surviving entity or its parent, (ii) substitution or replacement of Awards by the successor or surviving entity or its parent with cash, securities, rights or other property with substantially the same terms and value as such Awards, (iii) acceleration of the vesting of Awards and the lapse of any restrictions thereon and, in the case of stock options or SARs, acceleration of the right to exercise such Award during a specified period, in each case either (A) immediately prior to or as of the date of the change in control, (B) upon a participant's involuntary termination of service on or within a specified period prior to or following the change in control or (C) upon the failure of the successor or surviving entity to continue or assume such Award on no less favorable terms and conditions, (iv) in the case of a performance Award, the determination of the level of attainment of the applicable performance condition(s), and (v) cancellation of such Award in consideration of a payment in cash, securities or other property or, in certain circumstances, for no consideration.

*Amendment.* Except to the extent prohibited by applicable law and unless otherwise expressly provided in an Award agreement or in the Omnibus Incentive Plan, our board of directors may amend, alter, suspend, discontinue or terminate the Omnibus Incentive Plan or any portion thereof at any time; provided that no such amendment, alteration, suspension, discontinuation or termination shall be made without (i) shareholder approval if such approval is required by applicable law or stock market or exchange rules or (ii) subject to certain exceptions, the consent of the affected participant of the Omnibus Incentive Plan, if such action would materially adversely affect the rights of such participant under any outstanding Award.

*Clawback.* Under the Omnibus Incentive Plan, Awards (including any amounts or benefits arising from such Awards) will be subject to any clawback or recoupment arrangements or policies the Company has in place from time to time, and the compensation committee may, to the extent permitted by applicable law and stock exchange rules or by any applicable Company policy or arrangement, and will, to the extent required, cancel or require reimbursement of any Awards or any shares issued or cash received upon vesting, exercise or settlement of any such Awards or sale of shares underlying such Awards including any policies necessary to comply with Section 10D of the Exchange Act and any rules promulgated thereunder and any other regulatory regimes.

*Term.* No Award may be granted under the Omnibus Incentive Plan after the earliest of (i) the ten-year anniversary of its effective date, (ii) the date the maximum number of shares available for issuance under the

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Omnibus Incentive Plan have been issued or (iii) the date the board of directors terminates the Omnibus Incentive Plan. Previously granted Awards are permitted to extend beyond the termination date of the Omnibus Incentive Plan.

***Employee Stock Purchase Plan***

In connection with this offering, we intend to adopt, subject to approval by our board of directors and our stockholders, the Arxis, Inc. Employee Stock Purchase Plan (the "ESPP"). If adopted and approved, the ESPP will become effective upon the effectiveness of this registration statement but the first offering period under the ESPP is not expected to commence until a later date to be determined by our compensation committee. The following summary describes the material terms of the ESPP.

The ESPP will provide our employees and employees of participating subsidiaries with an opportunity to acquire a proprietary interest in our company through the purchase of shares of our Class A common stock. The ESPP will have two components – one which is intended to qualify as an "employee stock purchase plan" under Section 423 of the Code and one which is not intended to so qualify.

*Administration*. The ESPP will be administered by our compensation committee, which will have the authority to take any actions necessary or desirable for the administration of the ESPP, including adopting sub-plans applicable to particular participating subsidiaries or locations, or special rules applicable to participants employed by particular participating subsidiaries or in particular locations. The compensation committee may change the minimum and maximum amounts of compensation (as defined in the ESPP) for payroll deductions, the frequency with which a participant may elect to change his or her rate of payroll deductions, the dates by which a participant is required to submit an enrollment form, the effective date of a participant's withdrawal from the ESPP due to a termination or transfer of employment or change in employment status and the extent and manner in which we withhold amounts from a participant's compensation in order to satisfy applicable tax withholding obligations.

*Shares Reserved*. Subject to adjustment as described below, the total number of shares of our Class A common stock authorized for issuance under the ESPP will not exceed shares. The number of shares reserved for issuance under the ESPP will be increased on the first day of each fiscal year of our Company following the effective date of this offering by a number equal to the lesser of (i) % of the outstanding number of shares of all classes of our common stock on the last day of the immediately preceding fiscal year and (ii) the number of shares of Class A common stock determined by the compensation committee in its discretion; *provided* that the maximum number of shares of our Class A common stock that may be issued under the ESPP in any event will be shares, subject to adjustment.

*Eligibility*. Unless otherwise determined by the compensation committee and subject to certain exceptions permitted under IRS rules, any employee of the Company or a participating subsidiary are expected to be eligible to participate in an offering period. An eligible employee will not be granted an option if, as a result of such grant, the employee would (i) own 5% or more of the total combined voting power or value of all classes of our and our subsidiaries' stock, or (ii) be permitted to purchase our and our subsidiaries' stock, based on market value of the stock on the date of grant, at a rate that exceeds $25,000 for any calendar year in which such option is outstanding.

*Offering Periods and Purchase Dates*. Unless otherwise determined by the compensation committee, each offering period under the ESPP is expected to have a duration of six months. The initial offering period under the ESPP will commence on a date to be specified by the compensation committee following the completion of this offering.

*Participation*. Participation in the ESPP is voluntary. Unless determined otherwise by the compensation committee, eligible employees may elect to participate in the ESPP by completing an enrollment form prior to the beginning of an offering period, in accordance with the enrollment procedures established by the compensation committee, upon which the employee authorizes payroll deductions from his or her paycheck on

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each payroll date during the offering period. The deduction rate selected for an offering period will remain in effect for subsequent offering periods unless the participant (i) submits a new enrollment form authorizing a new rate of payroll deductions, (ii) withdraws from the ESPP, or (iii) terminates employment or otherwise becomes ineligible to participate in the ESPP.

*Grant and Exercise of Options*. Each participant will be granted, on the first trading day of an offering period (the "grant date") an option to purchase, on each purchase date during the offering period, a number of shares of our Class A common stock determined by dividing the participant's accumulated payroll deductions by the applicable purchase price. Unless determined otherwise by the compensation committee, the purchase price for the option will be 85% of the fair market value of a share of our Class A common stock on the purchase date. A participant's option will be exercised automatically on the purchase date to purchase the maximum number of whole shares of our Class A common stock that can be purchased with the amounts in the participant's notional account. The maximum number of shares of our Class A common stock that may be purchased by a participant during a single offering period may not exceed shares, subject to adjustment.

*Withdrawal*. Participants may withdraw from an offering by submitting a revised enrollment form indicating his or her election to withdraw before the purchase date on the terms established by the compensation committee. The accumulated payroll deductions held on behalf of the participant in his or her notional account will be paid to the participant as soon as administratively feasible following such withdrawal, and the participant's option to purchase shares of Class A common stock in respect of the applicable offering period will be automatically terminated. A participant's election to withdraw from an offering period will not have any effect on his or her eligibility to participate in succeeding offering periods.

*Termination of Employment; Change in Employment Status; Transfer of Employment*. On a termination of a participant's employment for any reason, or a change in the participant's employment status following which the participant is no longer an eligible employee, unless otherwise determined by our compensation committee, the participant will be deemed to have withdrawn from the ESPP effective as of the date of such termination of employment or change in status, the accumulated payroll deductions remaining in the participant's notional account will be returned to the participant, and the participant's option will be automatically terminated.

*Oversubscribed Offerings*. If the compensation committee determines that, on a particular purchase date, the number of shares of our Class A common stock with respect to which options are to be exercised either exceeds the number of shares of our Class A common stock available under the ESPP or the maximum aggregate number of shares of our Class A common stock that may be purchased in an offering (to the extent such a limit is imposed by the compensation committee), the shares of our Class A common stock purchasable on such purchase date will be allocated pro rata in a manner as uniform as practicable and as the compensation committee deems equitable.

*Changes in Capitalization*. In the event of any corporate transaction or other event affecting our Class A common stock, then in order to prevent dilution or enlargement of the benefits intended to be made available under the ESPP, the compensation committee will make equitable adjustments to the number and class of shares that may be issued under the ESPP, the purchase price per share of our Class A common stock, the number of shares of our Class A common stock covered by each outstanding option and applicable numerical plan limits.

*Dissolution or Liquidation*. Unless otherwise determined by the compensation committee, in the event of a proposed dissolution or liquidation of our company, any offering period in progress will be shortened by setting a new purchase date and the offering period will end immediately prior to the proposed dissolution or liquidation. Participants will be provided with written notice of the new purchase date and that the participant's option will be exercised automatically on such date, unless before such time the participant has withdrawn from the offering.

*Amendment and Termination*. The compensation committee may, in its sole discretion, amend, suspend or terminate the ESPP at any time and for any reason. The compensation committee may elect, upon termination of

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the ESPP, to terminate any outstanding offering period either immediately or once shares have been purchased on the next purchase date or permit the offering period to expire in accordance with its terms.

*Term*. The ESPP will become effective on a date following this offering to be determined by the compensation committee and, unless terminated earlier by the compensation committee (as described above), will have a term of ten years.

**Retirement and Health and Welfare Benefits** 

In connection with the Reorganization, we intend to adopt a tax-qualified defined contribution 401(k) plan and customary health and welfare plans in which our employees, including our named executive officers, are eligible to participate.

**Clawback Policy** 

In connection with this offering, we intend to adopt an incentive compensation recovery policy, or a clawback policy, which is compliant with the applicable stock exchange listing rules, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

**Non-Employee Director Compensation** 

As described above, we anticipate that Mr. Amara, Mr. Ravindran and Mr. Allen, each of whom has served as a member of the board of directors of each of the Pre-IPO Entities, and Mr. Oetgen, will each serve as a member of the board of directors of Arxis. Mr. Amara and Mr. Ravindran did not receive any historical compensation in connection with their service as members of the board of directors of each of the Pre-IPO Entities, and any historical compensation which may have been paid to Mr. Amara and Mr. Ravindran prior to this offering would not be indicative of the compensation that will be provided to Mr. Amara and Mr. Ravindran for their service on the board of directors of Arxis.

Mr. Allen, who did receive historical compensation for his service as a member of the boards of the Pre-IPO Entities, has entered into a letter agreement providing for the following compensation for service as a member of the board of directors of Arxis from and after the time of an initial public offering: (i) $25,000 for services as Chairperson of our audit committee and (ii) an annual equity grant having a grant date value of $150,000.

Mr. Oetgen, who was appointed to serve as a member of the board of directors of Arxis, has also entered into a letter agreement providing for compensation for service as member of the board of directors of Arxis from and after the time of an initial public offering comprised of an annual equity grant having a grant date value of $150,000.

Prior to completion of this offering, we intend to adopt, subject to approval by our board of directors, non-employee director compensation arrangements that will govern the annual compensation paid to our non-employee directors following this offering. We expect that our non-employee director compensation program will generally provide our non-employee directors with an annual cash retainer for service on the board of directors, additional cash retainers for service as chairperson of a committee of our board and an annual equity incentive award under our omnibus equity incentive plan granted in connection with our annual meeting of shareholders.

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**CERTAIN RELATIONSHIPS AND RELATED-PARTY TRANSACTIONS** 

We describe below transactions and series of similar transactions, during our last three fiscal years or currently proposed, to which we were a party or will be a party, in which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the amounts involved exceeded or will exceed $120,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any of our directors, executive officers or beneficial holders of more than 5% of any class of our capital stock
(whom we refer to as our related parties) had or will have a direct or indirect material interest.

Other than as described below, there have not been, nor are there any currently proposed, transactions or series of similar transactions meeting these criteria to which we have been or will be a party other than compensation arrangements, which are described where required under "Executive and Director Compensation."

**Arxis** 

Each of the Arxis Businesses is a party to advisory and consulting services agreements with Arcline. Under the advisory and consulting services agreements, Arcline provides certain assistance and support services to the Arxis Businesses relating to buy-side and sell-side transactions contemplated by the Arxis Businesses in exchange for specified management fees that are calculated as a percentage of our EBITDA (the "Management Fee"), transaction fees in connection with an initial public offering or sale of all or substantially all of our assets (the "Transaction Fees") as well as expense reimbursement. Additionally, Arcline provides certain operations and value creation consulting services, including research, strategy, technology, operations and talent related services, for the Arxis Businesses in exchange for expense reimbursement on an ongoing basis. The advisory and consulting services agreements terminate upon mutual agreement of the parties or in Arcline's sole discretion. Prior to the completion of the offering, the Company expects to enter into an amended and restated advisory and consulting services agreement which will serve as the successor agreement to the advisory and consulting services agreements among Arcline and the Arxis Businesses and which will have substantially the same terms as the advisory and consulting services agreements among Arcline and the Arxis Businesses other than as described below. The amendment and restated advisory and consulting services agreement will not provide for the Management Fee or the Transaction Fees, but will provide for the reimbursement by the Company to Arcline, for any period, of all fees, guaranteed payments or other cash compensation and related expenses incurred or advanced by or on behalf of Arcline or any affiliates or associated persons thereof, including, but not limited to, (i) travel expenses and other expenses, (ii) legal counsel, accountants, consultants, administrative, or support personnel or other third-party service providers (whether or not affiliated or associated with Arcline), (iii) the fees and expenses of custodians, outside counsel, consultants, accountants, auditors, investment banks, financial advisors, insurance (D&O, EPL, E&O, etc.) and other similar outside advisors, (iv) costs of regulatory and state filing fees, (v) fees and expenses of the Arcline value creation group, (vi) fees and expenses incurred in connection with any offering of securities of the Company, (vii) the costs, fees and expenses of acquiring, holding or selling all or any part of the investment or any assets, and (viii) an allocable portion of the cash compensation, including guaranteed cash payments, cash fees, other cash incentive-based compensation and/or other cash amounts, including deferred cash compensation (including the employer portion of any payroll or related taxes payable in respect of such amounts and cash charges in respect of employee health and welfare benefits provided to the recipients thereof) payable in respect of any time allocated by employees of Arcline and its affiliates (including by way of reimbursable advance), in connection with the services rendered to the Company during such period. The share of convertible common stock described under "Description of Capital Stock—Convertible Common Stock Issued to Arcline Investment Management, L.P." will be issued pursuant to the amended and restated advisory and consulting services agreement. If the amended and restated advisory and consulting services agreement is terminated pursuant to its terms, the share of convertible common stock will automatically be forfeited. The foregoing description does not purport to be complete and is qualified in its entirety by reference to the full text of the form of amended and restated advisory and consulting services agreement, which is filed as an exhibit to the registration statement of which this prospectus forms a part.

For the years ended December 31, 2025, 2024 and 2023, we incurred $3.2 million, $2.2 million and $1.8 million, respectively, and paid $3.5 million, $0.9 million and $1.5 million, respectively, for advisory and consulting services. As of December 31, 2025, unpaid fees related to these agreements was $0.6 million.

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Arxis will enter into a Tax Receivable Agreement with Arcline Investment Management, L.P., whereby Arxis will pay to Arcline Investment Management, L.P. 85% of the cash tax savings realized by Arxis with respect to the compensation deduction resulting from the transfer of the convertible common stock in respect of the services to be provided under the amended and restated advisory and consulting services agreement. The compensation deduction is expected to be available in the year of our initial public offering and to be utilized by Arxis. The compensation deduction is expected to be recognized in the year the convertible common stock is issued. Payment under the Tax Receivable Agreement is due 125 days following the filing of the U.S. federal income tax return of Arxis that reflects the applicable cash tax savings, subject to Arcline Investment Management, L.P.'s continued provision of services under the amended and restated advisory and consulting services agreement at the time of payment. Following the payment in respect of the cash tax savings resulting from this deduction, Arxis will have no further obligation to make payments in respect of tax benefits under the Tax Receivable Agreement. A copy of the Tax Receivable Agreement is filed as an exhibit to the registration statement of which this prospectus forms a part.

***Payables and Loans due to Related Parties***

As of December 31, 2025, we had no loans due to affiliates of Arcline.

As part of the Arxis Businesses Transaction, we assumed outstanding notes payable due to an affiliate of Arcline of $5.5 million, which is unsecured and due in April 2030. The notes are interest-bearing at SOFR plus 3.50% and mature in six years on April 19, 2030 with outstanding principal and interest due at that time.

As part of the Arxis Businesses Transaction, we also assumed an outstanding payable due to an affiliate of Arcline of $8.0 million. During the year ended December 31, 2024, we entered into additional payables with the affiliate of $15.0 million and repaid $5.0 million. There were no outstanding payables as of December 31, 2025.

In March 2021, we entered into a note payable with an affiliate of Arcline in the amount of $5.0 million. This note matured and all principal and interest were paid in full in August 2023.

***Receivables due from Related Parties***

As part of the Arxis Businesses Transaction, we acquired certain notes receivable from an affiliate of Arcline of $5.0 million.

We have entered into notes receivable with certain executives of the Company. In April 2023, we entered into a note receivable for $1.0 million. In October 2024, we entered into additional notes totaling $14.5 million. As part of the Arxis Businesses Transaction, we acquired additional notes receivable totaling $7.5 million. The notes are interest-bearing at the long-term applicable federal rate as of the date of issuance. The notes mature in ten years from the date of issuance, or earlier under certain triggering events, with outstanding principal and interest due at that time. The notes are secured by vested MIUs of the respective executive. The notional of the outstanding notes as of December 31, 2025 was $28.5 million. As of March 20, 2026, notes receivable of $20.5 million with certain executives of the Company were repaid in full.

***Leases***

We lease certain manufacturing facilities and transportation equipment under operating leases with affiliates of Arcline. Total related party lease payments were approximately $2.6 million, $1.4 million and $0.9 million for the years ended December 31, 2025, 2024 and 2023, respectively.

***Transition Services Agreements***

As of December 31, 2025, we had $4.6 million of receivables due from affiliates of Arcline recorded for services provided under transition service agreements ("TSAs"). These amounts relate to technology, finance,

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human resources and payroll support and are expected to be billed and collected within twelve months. During the year ended December 31, 2025 we did not recognize income related to these TSAs.

**Connector** 

***Advisory and Consulting Agreements***

As described above, each of the Arxis Businesses is a party to an advisory services agreement and a consulting services agreement with Arcline. For the period from January 1, 2024 through September 29, 2024, Connector incurred $0.5 million and paid $0.9 million for advisory and consulting services and expense reimbursements. For the year ended December 31, 2023, Connector incurred $0.6 million and paid $0.2 million for advisory and consulting services and expense reimbursements.

***Leases***

Connector leases certain facilities and transportation equipment from related parties. Total related-party lease payments totaled approximately $1.5 million and $1.6 million for the period from January 1, 2024 through September 29, 2024 and the year ended December 31, 2023, respectively.

***Receivables due from Related Parties***

During the period from January 1, 2024 through September 29, 2024, Connector entered into notes receivable with certain executives of Connector totaling $7.5 million. The notes are interest-bearing at the long-term applicable federal rate as of the date of issuance. The notes mature in ten years with outstanding principal and interest due at that time. The notes are secured by the related parties' MIUs. These notes were assumed by Arxis as part of the Arxis Businesses Transaction.

**Reorganization** 

Immediately prior to the completion of this offering, we intend to effect the Reorganization. See "Prospectus Summary—Reorganization."

**Stockholders Agreement** 

In connection with this offering, we intend to enter into a stockholders agreement with our Sponsor, pursuant to which our Sponsor will have certain director nomination rights, consent rights and information rights. The following description is a summary of the material terms of the stockholders agreement. The following description does not purport to be complete and is qualified in its entirety by reference to the full text of the stockholders agreement, the form of which is filed as an exhibit to the registration statement of which this prospectus forms a part.

***Director Designation Rights***. Our Sponsor will have the right, but not the obligation, to designate for election as directors a number of designees (each, a "Sponsor Designee" and collectively, the "Sponsor Designees") equal to: (i) so long as our Sponsor (including its permitted transferees) beneficially owns capital stock representing at least 50% of the total voting power of our outstanding capital stock entitled to vote generally in the election of directors, 50% of the total number of directors comprising our board of directors, (ii) so long as our Sponsor (including its permitted transferees) beneficially owns capital stock representing at least 40% but less than 50% of the total voting power of our outstanding capital stock entitled to vote generally in the election of directors, 40% of the total number of directors comprising our board of directors, (iii) so long as our Sponsor (including its permitted transferees) beneficially owns capital stock representing at least 30% but less than 40% of the total voting power of our outstanding capital stock entitled to vote generally in the election of directors, 30% of the total number of directors comprising our board of directors, (iv) so long as our Sponsor (including its permitted transferees) beneficially owns capital stock representing at least 20% but less than 30% of the total voting power of our outstanding capital stock entitled to vote generally in the election of directors, 20% of the total number of directors

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comprising our board of directors and (v) so long as our Sponsor (including its permitted transferees) beneficially owns capital stock representing at least 10% but less than 20% of the total voting power of our outstanding capital stock entitled to vote generally in the election of directors, 10% of the total number of directors comprising our board of directors, in each case, with any fractional amounts rounded up to the nearest whole number. From and after the time at which our board of directors becomes classified into three classes, the Sponsor Designees will be apportioned among such classes so as to maintain the number of Sponsor Designees in each class as nearly equal as possible. In the event that a vacancy is created at any time by the death, resignation, retirement, disqualification, removal from office or otherwise of a Sponsor Designee, our Sponsor will have the right, but not the obligation, to designate a new Sponsor Designee to fill such vacancy. We will, to the fullest extent permitted by law (including with respect to fiduciary duties), use our reasonable best efforts to cause the election of each Sponsor Designee to our board of directors as soon as practicable. Our Sponsor (including its permitted transferees) will agree to vote in favor of and to consent to each Sponsor Designee at any meeting of stockholders (or consent in lieu of meeting) in connection with the election of directors, not to seek the removal from office of any Sponsor Designee unless requested by our Sponsor and to vote in favor of and to consent to the removal from office of each Sponsor Designee requested by our Sponsor. If the number of Sponsor Designees serving as directors exceeds the number of Sponsor Designees that our Sponsor has the right to designate and if requested by our board of directors, our Sponsor will cause such excess Sponsor Designee(s) to offer to resign from our board of directors and will take all action necessary to remove such excess Sponsor Designee(s).

***Consent Rights***. Our Sponsor will have consent rights over specified actions, which we will not take without our Sponsor's prior written consent, which may be withheld for any reason or no reason, including (i) undertaking a transaction or series of related transactions that, if consummated, would result in a change of control or entering into any definitive agreement or series of related agreements that govern such a transaction or series of related transactions, (ii) liquidating, dissolving or winding-up our company, (iii) subject to certain exceptions, authorizing the issuance of or issuing any shares of capital stock or any securities convertible into or exercisable or exchangeable for any shares of capital stock, (iv) declaring or paying any dividends or other distributions on shares of capital stock, (v) subject to certain exceptions, redeeming, repurchasing or otherwise acquiring shares of capital stock, (vi) approving or modifying our annual operating budget and incurring expenditures that would exceed a specified percentage of such budget, (vii) acquiring or disposing of any asset or business with a value of more than a specified threshold in any single transaction or series of related transactions during any twelve month period, (viii) subject to certain exceptions, incurring indebtedness for borrowed money exceeding a specified threshold in any single transaction or series of related transactions during any twelve month period, (ix) subject to certain exceptions, entering into related-party transactions, (x) effectuating any material change in the nature of the business or operations of our company and our subsidiaries, taken as a whole, (xi) subject to certain exceptions, adopting equity-based compensation plans, (xii) entering into employment, consulting or similar agreements with our executive officers or modifying such agreements, (xiii) paying executive compensation exceeding a specified threshold, (xiv) hiring or terminating the employment of our chief executive officer, chief financial officer and segment presidents, (xv) amending our certificate of incorporation and bylaws, (xvi) increasing the size of our board of directors other than to elect a Sponsor Designee, (xvii) adopting any stockholder rights plan or similar takeover defense measure, (xviii) changing our independent registered public accounting firm and, subject to certain exceptions, changing our counsel or engaging additional counsel, (xix) changing our fiscal year and (xx) voluntarily delisting our Class A common stock from Nasdaq.

***Information Rights***. Our Sponsor will have certain information rights, including access to (i) monthly financial information within a specified period after the end of each month, (ii) quarterly financial statements within a specified period after the end of each quarter, (iii) annual budgets and financial projections that are provided to our board of directors, (iv) earnings and financial guidance materials prior to public use, (v) our books, records, properties, personnel and advisors as our Sponsor may reasonably request and (vi) any other information and data that our Sponsor may reasonably request. ****

***Amendment and Termination***. The stockholders agreement may be amended by mutual agreement between us and our Sponsor. The stockholders agreement will terminate upon the earliest to occur of (i) the mutual agreement between us and our Sponsor, (ii) our Sponsor (and its permitted transferees) ceasing to beneficially own capital stock

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representing at least 10% of the total voting power of our outstanding capital stock and (iii) with respect to each Sponsor Investor (as defined therein), such Sponsor Investor ceasing to beneficially own any of our capital stock.

**Registration Rights Agreement** 

In connection with this offering, we intend to enter into a registration rights agreement with entities affiliated with our Sponsor. The following description is a summary of the material terms of the registration rights agreement. The following description does not purport to be complete and is qualified in its entirety by reference to the full text of the registration rights agreement, the form of which is filed as an exhibit to the registration statement of which this prospectus forms a part.

***Demand and Piggyback Registration***. Subject to certain exceptions, such holders may request that we effect (i) non-shelf registered offerings with respect to all or any portion of their shares subject to registration rights, although we are not obligated to effect more than two such offerings within any 12-month period, (ii) a shelf registration with respect to all or any portion of their shares subject to registration rights, and (iii) takedowns of all or any portion of their shares subject to registration rights and registered on one or more shelf registration statements, although we are not obligated to effect more than six such takedowns within any 12-month period. In addition, such holders have piggyback registration rights with respect to any non-shelf registered offerings of registrable securities and any shelf takedown of registrable securities that includes any lockup arrangement, allowing each party thereto to include its shares in such offerings.

***Expenses and Indemnification***. We will pay all registration expenses (including certain expenses of counsel for selling holders) in connection with effecting any registration and takedown pursuant to the registration rights agreement. The registration rights agreement contains customary indemnification and contribution provisions, including with respect to liabilities under the Securities Act.

***Term***. Any securities covered by the registration rights agreement will no longer be entitled to registration rights if such securities have been disposed of pursuant to an effective registration statement or Rule 144, can be immediately sold under Rule 144 without any volume or manner of sale restrictions thereunder or cease to be outstanding.

**Indemnification Agreements** 

We have entered into indemnification agreements with each of our directors and executive officers. These agreements provide that we will hold harmless and indemnify each indemnitee against all expenses and losses actually and reasonably incurred by him or her by reason of the fact that he or she is or was our director, officer, employee or agent, or is or was serving at our request as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, in each case, to the fullest extent permitted under applicable law. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to such indemnification agreements or otherwise, we have been advised that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.

**Policy Concerning Related-Party Transactions** 

In connection with this offering, our board of directors will adopt a written policy for the review of any transaction, arrangement or relationship (or any series of similar transactions, arrangements, or relationships) or any proposed transaction, arrangement or relationship, in which we are or will be a participant and in which a related party has or will have a direct or indirect material interest and the aggregate amount involved exceeds $120,000.

If a related party proposes to enter into such a transaction, arrangement or relationship, which we refer to as a related-party transaction, such related party must report the proposed related-party transaction to our audit committee. The policy calls for the proposed related-party transaction to be reviewed and, if deemed appropriate, approved by the audit committee. In approving or rejecting such proposed transactions, the audit committee will be

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required to consider relevant facts and circumstances. The audit committee will approve only those transactions that, in light of known circumstances, are deemed to be in our best interests. In the event that any member of the audit committee is not a disinterested person with respect to the related-party transaction under review, that member will be excluded from the review and approval or rejection of such related-party transaction. If we become aware of an existing related-party transaction which has not been approved under the policy, the matter will be referred to the audit committee. The audit committee will evaluate all options available, including ratification, revision or termination of such transaction. In the event that management determines that it is impractical or undesirable to wait until a meeting of the audit committee to consummate a related-party transaction, the chair of the audit committee may approve such transaction in accordance with the related-party transaction policy. Any such approval must be reported to the audit committee at its next regularly scheduled meeting.

**Directed Share Program** 

At our request, the underwriters have reserved up to shares of our Class A common stock, or 5% of the shares being offered pursuant to this prospectus, for sale at the initial public offering price to certain individuals and entities as determined by certain of our officers through a directed share program. The directed share program will not limit the ability of our directors, officers and their family members, or holders of more than 5% of any class of our capital stock, to purchase more than $120,000 in value of our Class A common stock. We do not currently know the extent to which these related parties will participate in our directed share program, if at all, or the extent to which they will purchase more than $120,000 in value of our Class A common stock.

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**PRINCIPAL STOCKHOLDERS** 

The following table sets forth information regarding the beneficial ownership of our common stock as of , 2026 after giving effect to the Reorganization by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person, or group of affiliated persons, known by us to own beneficially 5% or more of any class of our
capital stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our executive officers and directors and persons nominated to serve in such positions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all executive officers and directors and persons nominated to serve in such positions as a group.

In accordance with the rules of the SEC, beneficial ownership includes securities that the individual or entity has the right to acquire, such as through the exercise of options or the vesting of RSUs, within 60 days of , 2026. Shares issuable pursuant to stock options that are currently exercisable or exercisable within 60 days of , 2026 or subject to RSUs that vest within 60 days of , 2026 are considered outstanding and beneficially owned by the person holding such options or RSUs for the purpose of computing the percentage ownership of that person but are not treated as outstanding for the purpose of computing the percentage ownership of any other person.

Unless otherwise indicated below, the business address for each beneficial owner is c/o Arxis, Inc., 1332 Blue Hills Avenue, Bloomfield, CT 06002.

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| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Class A Common<br>Stock Before this<br>Offering** | **Class A Common<br>Stock Before this<br>Offering** | **Class B Common<br>Stock Before this<br>Offering** | **Class B Common<br>Stock Before this<br>Offering** | **Convertible<br>Common Stock<br>Before this Offering** | **Convertible<br>Common Stock<br>Before this Offering** | **Percentage<br>Voting Power<br>Before this**<br>**Offering** | **Class A Common<br>Stock After this<br>Offering** | **Class A Common<br>Stock After this<br>Offering** | **Class B Common<br>Stock After this<br>Offering** | **Class B Common<br>Stock After this<br>Offering** | **Convertible<br>Common Stock<br>After this Offering** | **Convertible<br>Common Stock<br>After this Offering** | **Percentage<br>Voting Power<br>After this<br>Offering** |
| <br>**Name** | **Number** | **Percentage** | **Number** | **Percentage** | **Number** | **Percentage** | **Percentage<br>Voting Power<br>Before this**<br>**Offering** | **Number** | **Percentage** | **Number** | **Percentage** | **Number** | **Percentage** | **Percentage<br>Voting Power<br>After this<br>Offering** |
|  **Principal Stockholders:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Arcline Investment Management<sup>(1)</sup> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  **Directors and Executive Officers:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Kevin Perhamus |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Azad Badakhsh |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Jennifer Allen |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Rajeev Amara |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Shyam Ravindran |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Jason Roth |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Ross Sealfon |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Patrick Allen |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Stephen Oetgen |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  **All directors and executive officers as a group (persons)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

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\* Less than 1%. 

(1) Represents (i)      shares of Class B common stock held by Arcline Double
Eagle Master Fund LP and (ii)      shares of Class B common stock held by Arcline Double Eagle Master Fund-A LP. Arcline Double Eagle GP Holdco LP is the general partner for
both Arcline Double Eagle Master Fund LP and Arcline Double Eagle Master Fund-A LP and may be deemed to beneficially own the securities held by such funds. Rajeev Amara and Shyam Ravindran are the Chief
Executive Officer and President, respectively, of Arcline Investment Management and as such share voting and dispositive power over the shares held by such funds. Rajeev Amara and Shyam Ravindran each disclaims beneficial ownership of these shares,
except to the extent of his pecuniary interest in such shares, if any. The address for the foregoing entities is 3803 Bedford Avenue, Suite 106, Nashville, TN 37215.

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**DESCRIPTION OF CAPITAL STOCK** 

*The following descriptions are summaries of the material terms of our amended and restated certificate of incorporation and amended and restated bylaws that will be effective immediately prior to the completion of this offering. Reference is made to the more detailed provisions of, and the descriptions are qualified in their entirety by reference to, these documents, copies of which are filed as exhibits to the registration statement of which this prospectus is a part, and the General Corporation Law of the State of Delaware.* 

**General** 

Our authorized capital stock consists of (i) shares of common stock, which is divided into four series, consisting of shares of Class A common stock, par value $0.01 per share; shares of Class B common stock, par value $0.01 per share; shares of Class C common stock, par value $0.01 per share; and shares of convertible common stock, par value $0.01, and (ii) shares of preferred stock, par value $0.01 per share.

**Common Stock** 

Except as otherwise expressly provided by our certificate of incorporation or required by applicable law, shares of Class A common stock, Class B common stock and Class C common stock have the same rights, powers and privileges and rank equally, share ratably and are identical in all respects as to all matters.

***Voting Rights***. Except as otherwise expressly provided by our certificate of incorporation or required by applicable law, holders of our common stock vote together as a single class on all matters on which stockholders generally are entitled to vote. To the fullest extent permitted by law, except as otherwise expressly provided by our certificate of incorporation or otherwise required by applicable law, (i) each holder of Class A common stock, as such, is entitled to one vote for each share of Class A common stock held of record by such holder on all matters on which stockholders generally are entitled to vote, (ii) each holder of Class B common stock, as such, is entitled to twenty votes for each share of Class B common stock held of record by such holder on all matters on which stockholders generally are entitled to vote and (iii) each holder of Class C common stock, as such, is not entitled to vote on and does not have any voting power with respect to shares of Class C common stock held of record by such holder on any matter on which stockholders generally are entitled to vote.

***Dividend Rights***. Whenever a dividend is paid to the holders of Class A common stock, Class B common stock or Class C common stock then outstanding, we will also pay to the holders of each other series of common stock then outstanding an equal dividend per share on an equal priority, *pari passu* basis, unless different treatment of the shares of each such series is or has been approved by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class A common stock entitled to vote thereon, by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class B common stock entitled to vote thereon and by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class C common stock entitled to vote thereon, each voting separately as a class; *provided*, *however*, that (x) if the dividend is paid in the form of shares of Class A common stock, Class B common stock or Class C common stock (or securities convertible into or exchangeable for, or that evidence the right to purchase or acquire, shares of Class A common stock, Class B common stock or Class C common stock), then the holders of Class A common stock will receive shares of Class A common stock (or securities convertible into or exchangeable for, or that evidence the right to purchase or acquire, shares of Class A common stock), holders of Class B common stock will receive shares of Class B common stock (or securities convertible into or exchangeable for, or that evidence the right to purchase or acquire, shares of Class B common stock), and holders of Class C common stock will receive shares of Class C common stock (or securities convertible into or exchangeable for, or that evidence the right to purchase or acquire, shares of Class C common stock) with each share of common stock receiving an identical number of shares of common stock (or securities convertible into or exchangeable for, or that evidence the right to purchase or acquire, shares

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of common stock), (y) if the dividend is paid in our securities other than those in clause (x), then the holders of Class A common stock, Class B common stock or Class C common stock will receive identical securities on an equal per share basis and (z) if the dividend is paid in securities other than our securities, then the holders of Class A common stock, Class B common stock and Class C common stock will either receive identical securities on an equal per share basis or receive different classes or series of securities on an equal per share basis, *provided* that such different classes or series of securities do not differ in any respect other than their relative voting rights, with holders of Class B common stock receiving the class or series of securities having higher relative voting rights as compared to, and proportional with the existing relative voting rights of, the holders of Class A common stock, holders of Class A common stock receiving securities of a class or series having lesser relative voting rights as compared to, and proportional with the existing relative voting rights of, the holders of Class B common stock and holders of Class C common stock receiving securities of a class or series having no voting rights.

***Rights Upon Liquidation***. In the event of liquidation, dissolution, or winding-up, after payment or provision for payment of the debts and liabilities and subject to the payment in full of the preferential or other amounts to which any series of preferred stock are entitled, shares of Class A common stock, Class B common stock and Class C common stock will be treated equally, identically and ratably, on a per share basis, and be entitled to receive an equal amount per share of all the assets of whatever kind available for distribution to holders of shares of any class of capital stock, unless different treatment of the shares of each such series is or has been approved by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class A common stock entitled to vote thereon, by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class B common stock entitled to vote thereon and by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class C common stock entitled to vote thereon, each voting separately as a class.

***Mergers and Consolidations***. In connection with any merger or consolidation with or into any other entity, or any other transaction having an effect on stockholders substantially similar to that resulting from a merger or consolidation, shares of Class A common stock, Class B common stock and Class C common stock will be treated equally, identically and ratably, on a per share basis, including with respect to any consideration into which such shares are converted or any consideration paid or otherwise distributed to holders of common stock, unless different treatment of the shares of each such series is or has been approved by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class A common stock entitled to vote thereon, by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class B common stock entitled to vote thereon and by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class C common stock entitled to vote thereon, each voting separately as a class; *provided*, *however*, the holders of Class A common stock, Class B common stock and Class C common stock will be deemed to have been treated equally, identically and ratably, on a per share basis if such holders receive different classes or series of securities on an equal per share basis, *provided* that such different classes or series of securities do not differ in any respect other than their relative voting rights, with holders of Class B common stock receiving the class or series of securities having higher relative voting rights as compared to, and proportional with the existing relative voting rights of, the holders of Class A common stock, holders of Class A common stock receiving securities of a class or series having lesser relative voting rights as compared to, and proportional with the existing relative voting rights of, the holders of Class B common stock, and holders of Class C common stock receiving securities of a class or series having no voting rights. In determining whether shares of Class A common stock, Class B common stock or Class C common stock are treated equally, identically and ratably, on a per share basis, the following will not be considered: (i) any consideration to be paid to or received by a holder of common stock pursuant to any indemnification, bona fide employment, consulting, severance or similar services arrangement and (ii) any consideration to be paid to or received by a holder of common stock pursuant to any negotiated agreement between such holder (or any affiliate thereof) with any counterparty (or affiliate thereof) to such merger, consolidation, or other transaction wherein such holder (or affiliate thereof) is contributing, selling, transferring or otherwise disposing of shares of our capital stock to such counterparty (or affiliate thereof), or such shares are being converted or exchanged, as part of a "rollover" or similar transaction in connection with such merger, consolidation or other transaction.

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***Reclassification, Split, Subdivision or Combination***. If we reclassify, split, subdivide or combine the outstanding shares of Class A common stock, Class B common stock or Class C common stock, the outstanding shares of each other series of common stock will concurrently therewith be proportionately reclassified, split, subdivided or combined in a manner that maintains the same proportionate equity ownership among the holders of the outstanding shares of Class A common stock, the holders of the outstanding shares of Class B common stock and the holders of the outstanding shares of Class C common stock on the record date for such reclassification, split, subdivision, or combination, as the case may be.

***Conversion, Exchange and Transferability***. Shares of Class A common stock are not convertible into any other class of shares.

Each share of Class B common stock may at any time, at the option of the holder, be converted into one share of Class A common stock. In addition, each share of Class B common stock will automatically be converted into one share of Class A common stock upon the earliest to occur of (i) a transfer other than to a "permitted transferee" described in our amended and restated certificate of incorporation of such share of Class B common stock, (ii) such Class B common stock being held by a person other than a "permitted transferee" described in our amended and restated certificate of incorporation, (iii) the approval of such conversion by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class B common stock entitled to vote thereon, voting separately as a class, and the satisfaction or occurrence of any condition or event on which such conversion is contingent, as specified in such approval and (iv) 5:00 p.m., New York time, on the first business day after the date on which both (a) outstanding shares of Class B common stock constitute less than 10% of the aggregate number of outstanding shares of common stock and (b) the Sponsor (and its permitted transferees) cease to beneficially own a number of shares of Class B common stock that is greater than or equal to 35% of the number of shares of Class B common stock issued or to be issued to the Sponsor or transferred or to be transferred to the Sponsor in respect of the shares of Class B common stock held by the Funds immediately after the initial closing of our initial public offering. "Sponsor" means Arcline Investment Management, L.P. and its founding partners. "Funds" means investment funds managed by the Sponsor. "Permitted transferees" means (i) any Fund, (ii) any affiliate of our Sponsor, other than the Funds, and (iii) any entity controlled by any of the foregoing. Once converted into Class A common stock, the Class B common stock may not be reissued.

Each share of Class C common stock will automatically be converted into one share of Class A common stock upon the earliest of (i) the date on which no shares of Class B common stock are outstanding and (ii) the approval of such conversion by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class B common stock entitled to vote thereon, voting separately as a class, and the satisfaction or occurrence of any condition or event on which such conversion is contingent, as specified in such approval. At present, we have no plans to issue any Class C common stock.

***Other Rights***. The holders of our common stock have no preemptive or other subscription rights. There are no redemption or sinking fund provisions applicable to our common stock.

***Further Issuances***. Except as described in "—Dividend Rights," "—Mergers and Consolidations" and "—Reclassification, Split, Subdivision or Combination," we will not issue any additional shares of Class B common stock after the initial closing of this offering. We will not issue any additional shares of Class C common stock after the date on which no shares of Class B common stock are outstanding.

**Convertible Common Stock Issued to Arcline Investment Management, L.P.** 

In connection with the Reorganization, in consideration for its commitment to long-term partnership and for services that it has provided and will provide to the Company, including assistance and support services relating to buy-side and sell-side transactions contemplated by the Company, as well as research, strategy, technology, operations and talent related services, we are awarding to Arcline Investment Management, L.P. one share of

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convertible common stock. Subject to the conditions discussed below, the share of convertible common stock will be convertible into a number of shares of our Class B common stock (or Class A common stock if no shares of Class B common stock are outstanding at the time of such conversion) representing the product of (i) 1.25% of the Company's fully diluted capital stock (including Class A or Class B common stock issuable upon such conversion) outstanding at the time of conversion multiplied by (ii) (A) two times (B) the value of one minus the quotient obtained by dividing (x) the initial price per share in this offering (the "IPO Price") by (y) the stock price per Class A common stock at the time of conversion, as determined by the arithmetic average of the daily volume-weighted average price of shares of the Class A common stock on Nasdaq (or such other principal stock exchange on which such shares are traded at the time of conversion) over the 30 trading day period immediately preceding the conversion date, subject to adjustment to reflect stock splits, stock dividends, reorganizations, reclassifications, consolidations, mergers or sales or similar events. The convertible common stock will also provide for, upon the occurrence of certain change of control events affecting the Company, an automatic conversion into Class B common stock (or Class A common stock if no shares of Class B common stock are outstanding at the time of such conversion), provided that the change of control event occurs after the third anniversary of the completion of this offering and the consideration payable in the change of control event is at least two-times the IPO Price (the "Conversion Conditions"). The convertible common stock will be convertible from the fifth anniversary of the completion of this offering (, 2031) until the tenth anniversary of the completion of this offering (, 2036); provided that prior to conversion, the price of our Class A common stock must equal at least two-times the IPO Price. The value of the Class A common stock for purposes of determining whether the Conversion Conditions have been met will be determined based on the volume-weighted average prices of shares of the Class A common stock on Nasdaq (or such other principal stock exchange on which such shares are traded at the time of conversion) during any 20 of the 30 consecutive trading day period ending on and including the trading day immediately prior to the conversion date). Any and all convertible common stock will be forfeited if the trading price of Class A common stock has been less than one and half times the IPO price for at least 75% of the trading days during the twelve-month period ending immediately prior to the 11-year anniversary of this offering (, 2037).

For example, if on the fifth anniversary of the completion of this offering (, 2031), based on an initial public offering price of $ per share of Class A common stock, which is the midpoint of the price range set forth on the cover page of this prospectus, the volume-weighted average price of shares of the Class A common stock on Nasdaq (or such other principal stock exchange on which such shares are traded at the time of conversion) during any 20 of the 30 consecutive trading day period ending on and including the trading day immediately prior to the conversion date is equal to $ per share, and the arithmetic average of the daily volume weighted average price of Class A common stock on Nasdaq (or such other principal stock exchange on which such shares are traded at the time of conversion) over the 30 day trading period immediately preceding the conversion date is equal to $ per share, the share of convertible common stock would be convertible into shares of Class B common stock based on the number of shares of capital stock expected to be outstanding upon completion of this offering, which is equivalent to % of our fully diluted capital stock (including Class B common stock issuable upon such conversion) as of the date hereof.

In the event of any distributions to holders of Class A common stock or Class B common stock in connection with the liquidation of the Company, following distributions to the Class A common stock or Class B common stock in an amount equal to three times the IPO Price on a per share basis, the convertible common stock shall be entitled to distributions on an as-converted basis, regardless of whether any other conditions to conversion have been satisfied.

After the 12-year anniversary of this offering (, 2038), the Company may, at the election of the disinterested directors at that time, redeem any unconverted convertible common stock for an amount equal to the excess of three times the IPO Price, on an as-converted basis, regardless of whether any other conditions to conversion have been satisfied.

Prior to satisfaction of the Conversion Conditions, each holder of convertible common stock, as such, is entitled to vote, to consent, to receive dividends, if any, to receive notices as stockholders with respect to any

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meeting of stockholders and to exercise any rights whatsoever as our stockholders in an amount of equal to the number of Class B shares that represent 1.25% of the Company's fully diluted capital stock. After satisfaction of the Conversion Conditions, if ever, each holder of convertible stock, as such, is entitled, on an as-converted basis, to vote, to consent, to receive dividends, if any, to receive notices as stockholders with respect to any meeting of stockholders and to exercise any rights whatsoever as our stockholders until they become holders of the shares of our common stock issued upon conversion of the convertible common stock.

Holders of convertible common stock are subject to a lock-up of five years following the completion of this offering with respect to % of the shares of Arxis attributable to their ownership. The convertible common stock will otherwise be restricted in transfer to affiliates of Arcline Investment Management, L.P. and permitted transferees.

The share of convertible common stock will be issued pursuant to the amended and restated advisory and consulting services agreement described under "Certain Relationships and Related-Party Transactions—Arxis." If the amended and restated advisory and consulting services agreement is terminated pursuant to its terms, the share of convertible common stock will automatically be forfeited.

**Preferred Stock** 

Our board of directors has the authority, without further vote or action by the stockholders, to issue preferred stock in one or more series and to fix the designations, powers, preferences and rights thereof, the qualifications, limitations or restrictions thereof and the number of shares constituting each such series and to increase or decrease the number of shares of any such series, to the extent permitted by the General Corporation Law of the State of Delaware.

The issuance of preferred stock may have the effect of delaying, deferring or preventing a change in control without further action by the stockholders and may adversely affect the voting and other rights of the holders of common stock. At present, we have no plans to issue any preferred stock.

**Board Composition; Election and Removal of Directors** 

Our board of directors will consist of between three and nine directors, with the exact number of directors to be determined from time to time exclusively by our board of directors. Subject to the stockholders agreement, any vacancy occurring on the board of directors and any newly created directorship may be filled only by a majority of the remaining directors in office or by the sole remaining director.

Prior to the Triggering Event, our board of directors will consist of a single class, serving a one-year term. No director may be removed from office except with the affirmative vote of the holders of at least a majority of the total voting power of all outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class.

Following the Triggering Event, our directors will be divided into three classes, serving staggered three-year terms. Our board of directors is authorized to assign directors in office immediately prior to the Triggering Event to such classes at the time such classification becomes effective. This classification of our board of directors could have the effect of increasing the length of time necessary to change the composition of a majority of the board of directors. In general, at least two annual meetings of stockholders will be necessary for stockholders to effect a change in a majority of the members of the board of directors. No director may be removed from office except for cause with the affirmative vote of the holders of at least a majority of the total voting power of all outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class.

Our amended and restated certificate of incorporation defines "Triggering Event" as the date (if any) on which our Sponsor, the Funds and their respective permitted transferees cease to beneficially own shares of

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capital stock representing a majority of the total voting power of all outstanding shares of capital stock entitled to vote generally in the election of directors. The Triggering Event may never occur and, if it does occur, there can be no assurance regarding the timing of the Triggering Event.

**Stockholder Meetings** 

Special meetings of our stockholders may be called only by our board of directors, the chairperson of our board of directors, our Chief Executive Officer and the holders of a majority of the then-outstanding shares of Class B common stock. No other person has the power to call a special meeting.

**Stockholder Action by Written Consent** 

Prior to the Triggering Event, any action required or permitted to be taken at any stockholders meeting may be taken by written consent without a meeting. Following the Triggering Event, any action required or permitted to be taken at any stockholders meeting may not be taken by written consent without a meeting.

**Limitation of Liability of Directors and Officers** 

Our amended and restated certificate of incorporation provides that, to the fullest extent permitted by law, no director or officer will be personally liable to us or our stockholders for monetary damages for breach of fiduciary duty as a director or officer. Currently, the Delaware General Corporation Law requires that liability be imposed for the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a director's or officer's breach of the director's or officer's duty of loyalty to us or
our stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a director's or officer's act or omission not in good faith or which involved intentional misconduct
or a knowing violation of law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a director's unlawful payments of dividends or unlawful stock repurchases or redemptions as provided in
Section 174 of the Delaware General Corporation Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a director or officer for any transaction from which the director or officer derived an improper personal
benefit; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an officer in any action by or in the right of us.

As a result, neither we nor our stockholders have the right, through stockholders' derivative suits on our behalf, to recover monetary damages against a director or officer for breach of fiduciary duty as a director or officer, including breaches resulting from grossly negligent behavior, except in the situations described above.

Our amended and restated certificate of incorporation provides that, to the fullest extent permitted by law, we will indemnify each of our directors and officers against all judgments, fines and settlement amounts arising out of any threatened, pending or completed action, suit or proceeding by reason of the fact that such person is or was our director or officer or, while a director or officer, is or was serving at our request as a director or officer of another corporation, partnership, joint venture, trust or other enterprise. We will reimburse the expenses, including attorneys' fees, incurred by a person indemnified by this provision when we receive an undertaking to repay such amounts if it is ultimately determined that the person is not entitled to be indemnified by us. Amending this provision will not reduce our indemnification obligations relating to actions taken before an amendment.

**Forum Selection** 

Our amended and restated certificate of incorporation provides that, unless we consent in writing to the selection of an alternative forum, to the fullest extent permitted by law, the Court of Chancery of the State of Delaware (or, if the Court of Chancery of the State of Delaware does not have jurisdiction, the federal district court for the District of Delaware) is the sole and exclusive forum for (i) any derivative action or proceeding

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These forum selection provisions may impose additional litigation costs on stockholders in pursuing any such claims, particularly if the stockholders do not reside in or near the State of Delaware and limit a stockholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers or other employees, which may discourage lawsuits against us and our directors, officers, and other employees, although our stockholders will not be deemed to have waived our compliance with federal securities laws and the rules and regulations thereunder. While Delaware courts have determined that forum selection provisions are facially valid, it is possible that a court of law in another jurisdiction could rule that the forum selection provisions contained in our certificate of incorporation are inapplicable or unenforceable if they are challenged in a proceeding or otherwise. If a court were to find the forum selection provision in our amended and restated certificate of incorporation to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions.

**Corporate Opportunities**

Our amended and restated certificate of incorporation provides that, to the fullest extent permitted by law, none of our Sponsor, any investment fund managed by our Sponsor, any non-employee director or any of their respective affiliates, other than us and any of our subsidiaries (collectively, the "Identified Persons") shall (i) have any duty to refrain from directly or indirectly engaging in the same or similar business activities or lines of business in which we or any of our subsidiaries engages or proposes to engage or otherwise competing with us or any of our subsidiaries or (ii) be liable to us or our stockholders or subsidiaries for breach of any fiduciary duty solely by reason of the fact that such Identified Person engages in any such activities. In addition, our certificate of incorporation provides that, to the fullest extent permitted by law, we renounce any interest or expectancy in, or right to be offered an opportunity to participate in, any business opportunity that may be a corporate opportunity for an Identified Person and us and our subsidiaries; *provided* that we do not renounce our interest in any corporate opportunity to any non-employee director if such opportunity is expressly offered to such person solely in his or her capacity as our director. Subject to the proviso in the foregoing sentence, in the event that any Identified Person acquires knowledge of a potential transaction or other business opportunity that may be a corporate opportunity for itself, herself or himself and us or our subsidiaries, such Identified Person shall, to the fullest extent permitted by law, have no duty to communicate or offer such transaction or other business opportunity to us or our subsidiaries and shall not be liable to us or our stockholders or subsidiaries for breach of any fiduciary duty as our stockholder, director or officer solely by reason of the fact that such Identified Person pursues or acquires such corporate opportunity for itself, herself or himself, or offers or directs such corporate opportunity to another person or does not communicate information regarding such corporate opportunity to us or our subsidiaries.

**Amendment of Certificate of Incorporation** 

The provisions of our amended and restated certificate of incorporation described under " —Common Stock," " —Amendment of Bylaws," " —Board Composition; Election and Removal of Directors," " —Stockholder

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Meetings" and " —Stockholder Action by Written Consent," " —Forum Selection," " —Corporate Opportunities," and " —Limitation of Liability of Directors and Officers" may be amended only by the affirmative vote of holders of at least 75% of the total voting power of outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class. The affirmative vote of holders of at least a majority of the voting power of outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class, will generally be required to amend other provisions of our certificate of incorporation.

**Amendment of Bylaws** 

Our amended and restated bylaws may generally be altered, amended or repealed, and new bylaws may be adopted, with the affirmative vote of a majority of directors in any manner not inconsistent with Delaware General Corporation Law or our amended and restated certificate of incorporation or by the affirmative vote of holders of at least 75% of the total voting power of outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class.

**Other Limitations on Stockholder Actions** 

Our amended and restated bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of the board of directors or a committee of the board of directors. In order for any matter to be "properly brought" before a meeting, a stockholder will have to comply with advance notice requirements and provide us with certain information. Generally, to be timely, a stockholder's notice must be received at our principal executive offices not fewer than 90 days nor more than 120 days prior to the first anniversary date of the immediately preceding annual meeting of stockholders. Our amended and restated bylaws also specify requirements as to the form and content of a stockholder's notice. In order to submit a nomination for our board of directors, a stockholder must submit any information with respect to the nominee that we would be required to include in a proxy statement, as well as some other information. If a stockholder fails to follow the required procedures, the stockholder's proposal or nominee will be ineligible and will not be voted on by our stockholders.

**Delaware Business Combination Statute** 

We are subject to Section 203 of the Delaware General Corporation Law, which regulates corporate acquisitions. Section 203 prevents an "interested stockholder," which is defined generally as a person owning 15% or more of a corporation's voting stock, or any affiliate or associate of that person, from engaging in a broad range of "business combinations" with the corporation for three years after becoming an interested stockholder unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the board of directors of the corporation had previously approved either the business combination or the
transaction that resulted in the stockholder becoming an interested stockholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• upon completion of the transaction that resulted in the stockholder becoming an interested stockholder, that
person owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, other than statutorily excluded shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• following the transaction in which that person became an interested stockholder, the business combination is
approved by the board of directors of the corporation and holders of at least two-thirds of the outstanding voting stock not owned by the interested stockholder.

Under Section 203, the restrictions described above also do not apply to specific business combinations proposed by an interested stockholder following the announcement or notification of designated extraordinary transactions involving the corporation and a person who had not been an interested stockholder during the previous three years or who became an interested stockholder with the approval of a majority of the corporation's directors, if such extraordinary transaction is approved or not opposed by a majority of the directors who were

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directors prior to any person becoming an interested stockholder during the previous three years or were recommended for election or elected to succeed such directors by a majority of such directors.

Section 203 may make it more difficult for a person who would be an interested stockholder to effect various business combinations with a corporation for a three-year period. Section 203 also may have the effect of preventing changes in our management and could make it more difficult to accomplish transactions which our stockholders may otherwise deem to be in their best interests.

**Anti-Takeover Effects of Some Provisions** 

Some provisions of our amended and restated certificate of incorporation and our amended and restated bylaws could make the following more difficult:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• acquisition of control of us by means of a proxy contest or otherwise, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• removal of our incumbent officers and directors.

These provisions, as well as our ability to issue preferred stock, are designed to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our board of directors. We believe that the benefits of increased protection give us the potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us, and that the benefits of this increased protection outweigh the disadvantages of discouraging those proposals, because negotiation of those proposals could result in an improvement of their terms.

**Listing** 

We have applied to list our Class A common stock on Nasdaq under the symbol "ARXS."

**Transfer Agent and Registrar** 

The transfer agent and registrar for our Class A common stock is .

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**MATERIAL U.S. FEDERAL TAX CONSIDERATIONS FOR NON-U.S. HOLDERS** 

The following are the material U.S. federal income and estate tax consequences of the ownership and disposition of our Class A common stock acquired in this offering by a "Non-U.S. Holder" that does not own, and has not owned, actually or constructively, more than 5% of our common stock. You are a Non-U.S. Holder if for U.S. federal income tax purposes you are a beneficial owner of our Class A common stock that is (or is treated as):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a nonresident alien individual;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a foreign corporation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a foreign estate or trust.

You are not a Non-U.S. Holder if you are a nonresident alien individual present in the U.S. for 183 days or more in the taxable year of disposition, or if you are a former citizen or former resident of the U.S. for U.S. federal income tax purposes. If you are such a person, you should consult your tax adviser regarding the U.S. federal income tax consequences of the ownership and disposition of our Class A common stock.

If a partnership or other pass-through entity (including an entity or arrangement treated as a partnership or other type of pass-through entity for U.S. federal income tax purposes) owns our Class A common stock, the tax treatment of a partner or beneficial owner of the entity will generally depend upon the status of the partner or beneficial owner, the activities of the entity, and certain determinations made at the partner or beneficial owner level. If you are a partnership, partner, or a beneficial owner in a partnership or other pass-through entity, you should consult your own tax adviser regarding the particular U.S. federal income and estate tax consequences applicable to you of the ownership and disposition of our Class A common stock.

This discussion is based on the Internal Revenue Code of 1986, as amended to the date hereof (the "Code") administrative pronouncements, judicial decisions, and final, temporary, and proposed Treasury regulations, changes to any of which subsequent to the date of this prospectus may affect the tax consequences described herein, possibly with retroactive effect. This discussion does not describe all of the tax consequences that may be relevant to you in light of your particular circumstances, including alternative minimum tax and Medicare contribution tax consequences and does not address any aspect of state, local or non-U.S. taxation, or any taxes other than income taxes. You should consult your tax adviser with regard to the application of the U.S. federal tax laws to your particular situation, as well as any tax consequences arising under the laws of any state, local, or non-U.S. taxing jurisdiction.

**Dividends** 

As discussed under "Dividend Policy" above, we do not currently expect to make distributions on our Class A common stock. In the event that we do make distributions of cash or other property, those distributions will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. To the extent those distributions exceed our current and accumulated earnings and profits, they will constitute a return of capital, which will first reduce your basis in our Class A common stock (but not below zero) and then will be treated as gain from the sale of our Class A common stock, as described below under "—Gain on Disposition of Class A Common Stock."

Dividends paid to you generally will be subject to withholding tax at a 30% rate or a reduced rate specified by an applicable income tax treaty. In order to obtain a reduced rate of withholding (subject to the discussion below under "—FATCA Withholding Tax"), you will be required to provide a properly executed IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, certifying your entitlement to benefits under a treaty.

If dividends paid to you are effectively connected with your conduct of a trade or business in the U.S. (and, if required by an applicable income tax treaty, are attributable to a permanent establishment or fixed base

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maintained by you in the U.S.), you will generally be taxed on the dividends in the same manner as if you were a U.S. person as defined under the Code. In this case, you will be exempt from the withholding tax discussed in the preceding paragraph, although you will be required to provide a properly executed IRS Form W-8ECI in order to claim an exemption from withholding. You should consult your tax adviser with respect to other U.S. tax consequences of the ownership and disposition of our Class A common stock, including the possible imposition of a branch profits tax at a rate of 30% (or a lower treaty rate) if you are a corporation.

**Gain on Disposition of Class A Common Stock** 

Subject to the discussions below under "—Information Reporting and Backup Withholding" and "—FATCA Withholding Tax," you generally will not be subject to U.S. federal income withholding tax on gain realized on a sale or other taxable disposition of our Class A common stock unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the gain is effectively connected with your conduct of a trade or business in the U.S. (and, if required by an
applicable income tax treaty, is attributable to a permanent establishment or fixed base maintained by you in the U.S.); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are or have been a "United States real property holding corporation," as defined in the Code, at
any time within the five-year period preceding the disposition or your holding period, whichever period is shorter, and our Class A common stock has ceased to be regularly traded on an established securities market prior to the beginning of the
calendar year in which the sale or disposition occurs.

We believe that we are not, and do not anticipate becoming, a U.S. real property holding corporation.

If you recognize gain on a sale or other disposition of our Class A common stock that is effectively connected with your conduct of a trade or business in the U.S. (and if required by an applicable income tax treaty, is attributable to a permanent establishment or fixed base maintained by you in the U.S.), you will generally be taxed on such gain in the same manner as a U.S. person. You should consult your tax adviser with respect to other U.S. tax consequences of the ownership and disposition of our Class A common stock, including the possible imposition of a branch profits tax at a rate of 30% (or a lower treaty rate) if you are a corporation.

**Information Reporting and Backup Withholding** 

Distributions paid to you and the amount of any tax withheld with respect to such distributions generally will be reported to the IRS. Copies of the information returns reporting such distributions and any withholding may also be made available to the tax authorities in the country in which you reside under the provisions of an applicable income tax treaty.

You will not be subject to backup withholding on dividends received if you certify under penalty of perjury that you are a non-U.S. person, such as by furnishing a valid applicable IRS Form W-8, or you otherwise establish an exemption.

Information reporting and, depending on the circumstances, backup withholding, will apply to the proceeds of a sale or other disposition of our Class A common stock made within the U.S. or conducted through certain U.S.-related financial intermediaries, unless you comply with certification procedures to establish that you are not a U.S. person in order to avoid information reporting and backup withholding. The certification procedures required to claim a reduced rate of withholding under a treaty will generally satisfy the certification requirements necessary to avoid backup withholding as well.

Backup withholding is not an additional tax and the amount of any backup withholding from a payment to you will be allowed as a credit against your U.S. federal income tax liability and may entitle you to a refund, *provided* that the required information is furnished to the IRS in a timely manner.

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**FATCA Withholding Tax** 

Under Sections 1471 through 1474 of the Code (such Sections commonly referred to as FATCA), payments of dividends on and the gross proceeds of dispositions of our Class A common stock to (i) a "foreign financial institution" (as specifically defined in the Code) or (ii) a "non-financial foreign entity" (as specifically defined in the Code) will be subject to a withholding tax (separate and apart from, but without duplication of, the withholding tax described above) at a rate of 30%, unless various U.S. information reporting and due diligence requirements (generally relating to ownership by U.S. persons of interests in or accounts with those entities) have been satisfied or an exemption from these rules applies. An intergovernmental agreement between the U.S. and an applicable foreign country may modify these requirements. Under proposed regulations promulgated by the U.S. Treasury Department on December 13, 2018, which state that taxpayers may rely on the proposed Treasury regulations until final Treasury regulations are issued, this withholding tax will not apply to the gross proceeds from the sale or disposition of our Class A common stock. If a dividend payment is both subject to withholding under FATCA and subject to the withholding tax discussed above under "—Dividends," the withholding under FATCA may be credited against, and therefore reduce, such other withholding tax. You should consult your own tax adviser regarding the possible implications of this withholding tax on your investment in our Class A common stock.

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**SHARES ELIGIBLE FOR FUTURE SALE** 

Prior to this offering, there has been no public market for our Class A common stock. Future sales of substantial amounts of our Class A common stock in the public market could adversely affect market prices prevailing from time to time. Furthermore, because only a limited number of shares of Class A common stock will be available for sale shortly after this offering due to existing contractual and legal restrictions on resale as described below, there may be sales of substantial amounts of our Class A common stock in the public market after the restrictions lapse. This may adversely affect the prevailing market price and our ability to raise equity capital in the future.

Upon completion of this offering, we will have shares of Class A common stock outstanding (or shares of Class A common stock if the underwriters exercise their option to purchase additional shares in full), shares of Class B common stock outstanding, no shares of Class C common stock outstanding and one share of convertible common stock outstanding. All shares sold in this offering will be freely transferable without restriction or registration under the Securities Act, except for any shares purchased by one of our "affiliates," as that term is defined in Rule 144 under the Securities Act. The remaining outstanding shares will be "restricted securities" as defined in Rule 144. Restricted securities may be sold in the public market only if registered or if they qualify for an exemption from registration under Rule 144 or 701 of the Securities Act. After the expiration of the contractual lock-up period described below, to the extent applicable, these shares may be sold in the public market only if registered or pursuant to an exemption under Rule 144 or 701, each of which is summarized below.

**Rule 144** 

In general, a person who has beneficially owned shares of common stock that are restricted securities for at least six months would be entitled to sell such shares, *provided* that (i) such person is not deemed to have been one of our affiliates at the time of, or at any time during the 90 days preceding, the sale and (ii) we are subject to, and in compliance with certain of, the Exchange Act periodic reporting requirements for at least 90 days before the sale, but this clause (ii) will not apply to the sale if such person has beneficially owned such shares for at least one year. Persons who have beneficially owned shares of common stock that are restricted securities for at least six months but who are our affiliates at the time of, or any time during the 90 days preceding, a sale, would be subject to additional restrictions, by which such person would be entitled to sell within any three-month period only a number of shares of common stock that does not exceed the greater of either of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1% of the number of shares of Class A common stock then outstanding; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the average weekly trading volume of shares of Class A common stock on Nasdaq during the four calendar weeks
preceding the filing of a notice on Form 144 with respect to the sale;

*provided*, in each case, that we are subject to, and in compliance with certain of, the Exchange Act periodic reporting requirements for at least 90 days before the sale. Such sales must also comply with the manner of sale and notice provisions of Rule 144 to the extent applicable.

**Rule 701** 

In general, under Rule 701, any of our employees, directors, officers, consultants or advisors who purchases shares from us in connection with a compensatory stock or option plan or other written agreement before the effective date of this offering is entitled to resell such shares 90 days after the effective date of this offering in reliance on Rule 144, without having to comply with the holding period requirements or other restrictions contained in Rule 701.

The SEC has indicated that Rule 701 will apply to typical stock options granted by an issuer before it becomes subject to the reporting requirements of the Exchange Act, along with the shares acquired upon exercise of such options, including exercises after the date of this prospectus. Securities issued in reliance on Rule 701 are

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restricted securities and, subject to the contractual restrictions described below, beginning 90 days after the date of this prospectus, may be sold by persons other than "affiliates," as defined in Rule 144, subject only to the manner of sale provisions of Rule 144 and by "affiliates" under Rule 144 without compliance with the minimum holding period requirement.

**Equity Incentive Plan** 

We intend to file one or more registration statements on Form S-8 under the Securities Act to register all shares of Class A common stock reserved for issuance under our stock-based compensation plans. We expect to file the registration statement or statements, which will become effective immediately upon filing, upon or shortly after the date of this prospectus. Shares covered by these registration statements will then be eligible for sale in the public markets, subject to vesting restrictions and any applicable holding periods, any applicable lock-up agreements described below and Rule 144 limitations applicable to affiliates.

**Lock-up Agreements** 

Our directors and executive officers and substantially all of the holders of our capital stock (such persons, the "lock-up parties") have entered into lock-up agreements with the underwriters prior to the commencement of this offering pursuant to which each lock-up party, with limited exceptions, for a period of 180 days after the date of this prospectus (such period, the "restricted period"), may not, without the prior written consent of two of Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Jefferies LLC, (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of, directly or indirectly, any shares of Class A common stock or any securities convertible into or exercisable or exchangeable for shares of Class A common stock (including, without limitation, Class A common stock or such other securities which may be deemed to be beneficially owned by such lock-up parties in accordance with the rules and regulations of the SEC and securities which may be issued upon exercise of a stock option or warrant (collectively with the Class A common stock, the "lock-up securities"), (ii) enter into any hedging, swap or other agreement or transaction that transfers, in whole or in part, any of the economic consequences of ownership of the lock-up securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of lock-up securities, in cash or otherwise, (iii) make any demand for, or exercise any right with respect to, the registration of any lock-up securities, or (iv) publicly disclose the intention to do any of the foregoing. See "Underwriting."

**Registration Rights** 

Upon completion of this offering, the holders of approximately shares of Class A common stock (or securities convertible into such shares of Class A common stock) will be entitled to various rights with respect to the registration of their shares under the Securities Act. Registration of these shares under the Securities Act would enable the holders to sell these shares without restriction under the Securities Act upon the effectiveness of the registration statement. See "Certain Relationships and Related-Party Transactions—Registration Rights Agreement."

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**UNDERWRITING** 

The company and the underwriters named below have entered into an underwriting agreement with respect to the shares of Class A common stock being offered. Subject to certain conditions, each underwriter has severally agreed to purchase the number of shares of Class A common stock indicated in the following table. Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Jefferies LLC are the representatives of the underwriters.

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| | |
|:---|:---|
| Underwriters | Number of Shares |
|  Goldman Sachs & Co. LLC |  |
|  Morgan Stanley & Co. LLC |  |
|  Jefferies LLC |  |
|  Citigroup Global Markets Inc. |  |
|  RBC Capital Markets, LLC |  |
|  Robert W. Baird & Co. Incorporated |  |
|  Guggenheim Securities, LLC |  |
|  Wells Fargo Securities, LLC |  |
|  William Blair & Company, L.L.C. |  |
|  Rothschild & Co US Inc. |  |
|  Nomura Securities International, Inc.<sup>(1)</sup> |  |
|  WR Securities, LLC<sup>(1)</sup> |  |
|  Citizens JMP Securities, LLC |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  |

---

(1) "Wolfe \| Nomura Alliance" is the marketing name used by Wolfe Research Securities and Nomura
Securities International, Inc. in connection with certain equity capital markets activities conducted jointly by the firms. Both Nomura Securities International, Inc. and WR Securities, LLC are serving as underwriters in the offering described
herein. In addition, WR Securities, LLC and certain of its affiliates may provide sales support services, investor feedback, investor education, and/or other independent equity research services in connection with this offering.

The underwriters are committed to take and pay for all of the shares of Class A common stock being offered, if any are taken, other than the shares covered by the option described below unless and until this option is exercised.

The underwriters have an option to buy up to an additional shares of Class A common stock from the company to cover sales by the underwriters of a greater number of shares than the total number set forth in the table above. They may exercise that option for 30 days. If any shares are purchased pursuant to this option, the underwriters will severally purchase shares of Class A common stock in approximately the same proportion as set forth in the table above.

The following table shows the per share of Class A common stock and total underwriting discounts and commissions to be paid to the underwriters by the company. Such amounts are shown assuming both no exercise and full exercise of the underwriters' option to purchase additional shares of Class A common stock.

---

| | | |
|:---|:---|:---|
|  | No Exercise | Full Exercise |
|  Per Share | $| $|
|  Total | $| $|

---

Shares of Class A common stock sold by the underwriters to the public will initially be offered at the initial public offering price set forth on the cover of this prospectus. Any shares of Class A common stock sold by the

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underwriters to securities dealers may be sold at a discount of up to $ per share from the initial public offering price. After the initial offering of the shares of Class A common stock, the representatives may change the offering price and the other selling terms. The offering of the shares of Class A common stock by the underwriters is subject to their receipt and acceptance of the shares being offered and subject to the underwriters' right to reject any order in whole or in part.

We have agreed that we will not (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of, directly or indirectly, or submit to, or file with, the SEC a registration statement under the Securities Act relating to, any shares of our Class A common stock or securities convertible into or exercisable or exchangeable for any shares of our Class A common stock or publicly disclose the intention to make any offer, sale, pledge, loan, disposition or filing, or (ii) enter into any swap or other arrangement that transfers all or a portion of the economic consequences associated with the ownership of any shares of Class A common stock or any such other securities (regardless of whether any of these transactions are to be settled by the delivery of shares of Class A common stock or such other securities, in cash or otherwise), in each case without the prior written consent of two of Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Jefferies LLC for a period of 180 days after the date of this prospectus (the "restricted period"). The restrictions on our actions, as described above, do not apply to certain customary transactions, including (A) the offer, issuance, sale and disposition of the shares of Class A common stock in this offering; (B) the issuance of our stock pursuant to employee stock option plans existing on, or upon the conversion or exchange of convertible or exchangeable securities outstanding as of, the date of this prospectus; (C) grants of stock options, stock awards, restricted stock, RSUs, stock appreciation rights or any other type of equity awards with respect to shares of stock to our employees, officers, directors, advisors or consultants pursuant to employee plans described herein and the issuance of stock or securities convertible into or exercisable or exchangeable for stock (whether upon the exercise of stock options or otherwise) to our employees, officers, directors, advisors or consultants pursuant to equity plans described herein; (D) our withholding of stock in connection with the vesting, settlement or exercise of equity awards, including for the payment of exercise price and tax, remittance and other obligations due as a result of vesting, settlement or exercise of equity awards (in each case, whether by way of "net" or "cashless" exercise, "net settlement" or otherwise) or in connection with the conversion of convertible securities, (E) issuance of stock in connection with the Reorganization; (F) the issuance, offer or entry into an agreement providing for the issuance of up to 10% of the total number of shares of stock outstanding immediately following the offering of the shares contemplated by prospectus in acquisitions or other strategic transactions, provided that such recipients enter into a lock-up agreement with the underwriters; (G) the filing of any registration statement on Form S-8 relating to securities granted or to be granted pursuant to any plan in effect on the date the shares are delivered and described in this prospectus or any assumed benefit plan pursuant to an acquisition or similar strategic transaction contemplated by clause (F); or (H) the submission of a confidential registration statement in connection with the exercise of any registration rights described in this prospectus and any preparations related thereto, provided that such submission or preparations do not require or result in the public filing of a registration statement with us or any other public announcement of such proposed registration by us or any third party during the restricted period (and no such filing, public announcement or activity shall be voluntarily made or taken by us or any third party during the restricted period), and provided further that we will notify the representatives prior to making any such submission; and provided, further, that in the case of clauses (B) and (C), we shall (a) cause each recipient of such securities that is a member of our board of directors, an executive officer or a beneficial holder of 1% of our fully-diluted capital stock to execute and deliver to the representatives, prior to or substantially concurrently with the issuance of such securities, a lock-up agreement (which, for the avoidance of doubt, shall not extend the restricted period beyond 180 days after the date of this prospectus) to the extent not already executed and delivered by such recipients as of the date hereof and (b) enter stop transfer instructions with our transfer agent and registrar on such securities with respect to all recipients of such securities, which we agree we will not waive or amend without prior written consent of two of Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Jefferies LLC.

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The lock-up parties have entered into lock-up agreements with the underwriters prior to the commencement of this offering pursuant to which each lock-up party, with limited exceptions, during the restricted period, may not, without the prior written consent of two of Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Jefferies LLC, (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of, directly or indirectly, any shares of Class A common stock or any securities convertible into or exercisable or exchangeable for shares of Class A common stock (including, without limitation, Class A common stock or such other securities which may be deemed to be beneficially owned by such lock-up parties in accordance with the rules and regulations of the SEC and securities which may be issued upon exercise of a stock option or warrant (collectively with the Class A common stock, the "lock-up securities"), (ii) enter into any hedging, swap or other agreement or transaction that transfers, in whole or in part, any of the economic consequences of ownership of the lock-up securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of lock-up securities, in cash or otherwise, (iii) make any demand for, or exercise any right with respect to, the registration of any lock-up securities, or (iv) publicly disclose the intention to do any of the foregoing. Such persons or entities have further acknowledged that these undertakings preclude them from engaging in any hedging or other transactions or arrangements (including, without limitation, any short sale or the purchase or sale of, or entry into, any put or call option, or combination thereof, forward, swap or any other derivative transaction or instrument, however described or defined) designed or intended, or which could reasonably be expected to lead to or result in, a sale or disposition or transfer (by any person or entity, whether or not a signatory to such agreement) of any economic consequences of ownership, in whole or in part, directly or indirectly, of any lock-up securities, whether any such transaction or arrangement (or instrument provided for thereunder) would be settled by delivery of lock-up securities, in cash or otherwise.

Notwithstanding the foregoing, the lock-up parties may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) transfer the lock-up securities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) as one or more *bona fide* gifts or charitable contributions, or for *bona fide* estate planning purposes,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) upon death by will, testamentary document or intestate succession,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if the party is a natural person, to any member of the lock-up party's immediate family (for purposes of the lock-up agreement, "immediate family" shall mean any relationship by blood, current or former marriage, domestic partnership or adoption, not more remote than first cousin) or to any trust, partnership, limited liability company or other entity for the direct or indirect benefit of the lock-up party or the immediate family of the lock-up party or, if the lock-up party is a trust, to a trustor or beneficiary of the trust or the estate of a beneficiary of such trust,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to a partnership, limited liability company or other entity of which the lock-up party and the immediate family of the lock-up party are the legal and beneficial owner of all of the outstanding equity securities or similar interests,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to a nominee or custodian of a person or entity to whom a disposition or transfer would be permissible under clauses (a)(i) through (iv) above,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if the lock-up party is a corporation, partnership, limited liability company, trust or other business entity, (A) to another corporation, partner, limited partner, manager, member, limited liability company, equityholder, shareholder or other business entity that is an affiliate (as defined in Rule 405 under the Securities Act) of the lock-up party, or to any investment fund or other entity which fund or entity controls, is controlled by, manages, is managed by or is under common control with the lock-up party (including, for the avoidance of doubt, if the lock-up party is a partnership, to its general partner or a successor partnership or fund, or any other funds managed by such partnership and, if the lock-up party is a trust, to a trustor or beneficiary of the trust) or affiliates of the lock-up party, or (B) as part of a distribution by the lock-up party to its stockholders, current or former partners, members or other equityholders or to the estate of any such stockholders, partners, members or other equityholders,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) by operation of law, such as pursuant to a qualified domestic order, divorce settlement, divorce decree or separation agreement or other order of a court or regulatory authority,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) to the Company upon death, disability or termination of employment,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) if the lock-up party is not an officer or director of the Company, in connection with a sale or transfer of the lock-up party's shares of stock acquired (A) from the underwriters in this offering or (B) in open market transactions after the closing date of this offering,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) regardless of whether the lock-up party is an officer or director, to us in connection with the vesting, settlement or exercise of restricted stock, restricted stock units, options, stock appreciation rights, warrants or other rights with respect to shares of stock (including, in each case, by way of "net" or "cashless" exercise, "net settlement" or otherwise), including any transfer to us or sale in an open market transaction for the payment of exercise price or tax withholdings or remittance payments due as a result of the vesting, settlement or exercise of such restricted stock, restricted stock units, options, stock appreciation rights, warrants or other rights, or in connection with the conversion of convertible securities, in all such cases pursuant to equity awards granted under a stock incentive plan or other equity award plan, or pursuant to the terms of convertible securities, each as described herein, provided that any securities received upon such vesting, settlement, exercise or conversion that are not used for the purpose of payment of exercise price and/or tax, remittance and other obligations due as a result of the vesting, settlement, or exercise of such awards and rights shall be subject to the terms of the lock-up agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) in connection with the conversion, exchange or reclassification of any of our outstanding securities into shares of stock, or any conversion, exchange or reclassification of the stock, provided that any such stock received upon such conversion, exchange or reclassification shall be subject to the terms of the lock-up agreement, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) with the prior written consent of two of Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Jefferies LLC on behalf of the underwriters;

provided that (A) in the case of clauses (a)(i), (ii), (iii), (iv), (v) and (vi) above, such transfer or distribution will not involve a disposition for value, (B) in the case of clauses (a)(i), (ii), (iii), (iv), (v), (vi) and (vii) above, it will be a condition to the transfer or distribution that the donee, devisee, transferee or distributee, as the case may be, will sign and deliver a lock-up agreement to the underwriters, (C) in the case of clauses (a)(ii), (iii), (iv), (v) and (vi) above, no filing by any party (including, without limitation, any donor, donee, devisee, transferor, transferee, distributor or distributee) under the Exchange Act, or other public filing, report or announcement reporting a reduction in beneficial ownership of lock-up securities shall be required or shall be voluntarily made in connection with such transfer or distribution, and (D) in the case of clauses (a)(i), (vii), (viii), (ix) and (x) above, no filing under the Exchange Act or other public filing, report or announcement shall be voluntarily made, and if any such filing, report or announcement shall be legally required during the restricted period, such filing, report or announcement shall clearly indicate in the footnotes thereto (A) the circumstances of such transfer or distribution and (B) in the case of a transfer or distribution pursuant to clauses (a)(i) or (vii) above, that the donee, devisee, transferee or distributee has agreed to be bound by a lock-up agreement in the form of the lock-up agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) enter into or amend a written plan meeting the requirements of Rule 10b5-1 under the Exchange Act relating to
the transfer, sale or other disposition of the lock-up party's lock-up securities, if then permitted by us, provided that none of the securities subject to such plan may be transferred, sold or otherwise disposed of until after the expiration
of the lock-up period and no public announcement, report or filing under the Exchange Act, or any other public filing, report or announcement, shall be voluntarily made (whether by or on behalf of the lock-up party, us or any other party) regarding,
or that otherwise discloses, the establishment of such plan during the lock-up period, and if any such filing,

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report or announcement shall be legally required during the lock-up period, such filing, report or announcement shall clearly indicate that that none of the securities subject to such plan may be transferred, sold or otherwise disposed of pursuant to such plan until after the expiration of the lock-up period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) transfer the lock-up party's lock-up securities pursuant to a bona fide third-party tender offer, merger,
consolidation or other similar transaction that is approved by our Board of Directors and made to all holders of our capital stock involving a Change of Control (for purposes hereof, "Change of Control" shall mean the transfer (whether
by tender offer, merger, consolidation or other similar transaction), in one transaction or a series of related transactions, to a person or group of affiliated persons, of shares of capital stock if, after such transfer, such person or group of
affiliated persons would hold at least a majority of our outstanding voting securities); provided that in the event that such tender offer, merger, consolidation or other similar transaction is not completed, the lock-up party's lock-up
securities shall remain subject to the provisions of the lock-up agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to the extent the lock-up party has demand and/or piggyback registration rights under any registration rights
agreement described herein, the lock-up party may notify us privately that the lock-up party is or will be exercising his, her or its demand and/or piggyback registration rights under any such registration rights agreement following the expiration
of the lock-up period and undertake preparations related thereto; provided that the foregoing notification and/or preparations do not request, require or result in the public filing of a registration statement with the SEC or any other public
announcement of such proposed registration by the lock-up party, us or any third party during the lock-up period (and no such filing, public announcement or activity shall be voluntarily made or taken by the lock-up party, us or any third party
during the lock-up period); provided further that we will notify the representatives upon receipt of such notice.

Prior to the offering, there has been no public market for the shares of Class A common stock. The initial public offering price has been negotiated among the company and the representatives. Among the factors to be considered in determining the initial public offering price of the shares of Class A common stock, in addition to prevailing market conditions, will be the company's historical performance, estimates of the business potential and earnings prospects of the company, an assessment of the company's management and the consideration of the above factors in relation to market valuation of companies in related businesses.

We have applied to list our Class A common stock on Nasdaq under the symbol "ARXS."

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The underwriters may also impose a penalty bid. This occurs when a particular underwriter repays to the underwriters a portion of the underwriting discount received by it because the representatives have repurchased shares sold by or for the account of such underwriter in stabilizing or short covering transactions.

Purchases to cover a short position and stabilizing transactions, as well as other purchases by the underwriters for their own accounts, may have the effect of preventing or retarding a decline in the market price of the company's stock, and together with the imposition of the penalty bid, may stabilize, maintain or otherwise affect the market price of shares of Class A common stock. As a result, the price of shares of Class A common stock may be higher than the price that otherwise might exist in the open market. The underwriters are not required to engage in these activities and may end any of these activities at any time. These transactions may be effected on Nasdaq, in the over-the-counter market or otherwise.

The company's estimated offering and Reorganization expenses payable by the company, excluding underwriting discounts and commissions, will be approximately $.

The company has agreed to indemnify the several underwriters, and the several underwriters have agreed to indemnify the company, against certain liabilities, including liabilities under the Securities Act.

The underwriters and their respective affiliates are full service financial institutions engaged in various activities, which may include sales and trading, commercial and investment banking, advisory, investment management, investment research, principal investment, hedging, market making, brokerage and other financial and non-financial activities and services. Certain of the underwriters and their respective affiliates have provided, and may in the future provide, a variety of these services to the issuer and to persons and entities with relationships with the issuer, for which they received or will receive customary fees and expenses. In particular, affiliates of certain of the underwriters are lenders under our Credit Facilities. To the extent that any of the underwriters or their affiliates are lenders under our Credit Facilities, they will receive a portion of the net proceeds of this offering in connection with the planned repayment of our Credit Facilities.

In the ordinary course of their various business activities, the underwriters and their respective affiliates, officers, directors and employees may purchase, sell or hold a broad array of investments and actively trade securities, derivatives, loans, commodities, currencies, credit default swaps and other financial instruments for their own account and for the accounts of their customers, and such investment and trading activities may involve or relate to assets, securities and/or instruments of the issuer (directly, as collateral securing other obligations or otherwise) and/or persons and entities with relationships with the issuer. The underwriters and their respective affiliates may also communicate independent investment recommendations, market color or trading ideas and/or publish or express independent research views in respect of such assets, securities or instruments and may at any time hold, or recommend to clients that they should acquire, long and/or short positions in such assets, securities and instruments.

At our request, Morgan Stanley & Co. LLC, on behalf of the underwriters, has reserved up to shares of our Class A common stock, or 5% of the shares being offered pursuant to this prospectus, for sale at the initial public offering price to certain individuals and entities as determined by certain of our officers through a directed share program administered by Morgan Stanley & Co. LLC and its affiliates. If purchased by these persons, these shares will not be subject to a lock-up restriction, except to the extent that the purchasers of such shares are otherwise subject to lock-up or market stand-off agreements as a result of their relationship with us. The number of shares of our Class A common stock available for sale to the general public in this offering will be reduced to the extent these individuals and entities purchased such reserved shares. Any reserved shares that are not so purchased will be offered by the underwriters to the general public on the same basis as the other shares offered by this prospectus. Other than the underwriting discount described on the front cover of this prospectus, Morgan Stanley & Co. LLC will not be entitled to any commission with respect to shares of Class A common stock sold pursuant to the directed share program. We have agreed to indemnify Morgan Stanley & Co. LLC against certain liabilities and expenses, including liabilities under the Securities Act, in connection with sales of the shares sold through the directed share program.

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##### [**Table of Contents**](#toc)
*European Economic Area* 

In relation to each Member State of the European Economic Area (each, a "Relevant Member State"), an offer to the public of any shares of Class A common stock may not be made in that Relevant Member State prior to the publication of a prospectus in relation to the securities which has been approved by the competent authority in that Relevant Member State or, where appropriate, approved in another Relevant Member State and notified to the competent authority in that Relevant Member State, all in accordance with the Prospectus Regulation, except that an offer to the public in that Relevant Member State of any shares of Class A common stock may be made at any time under the following exemptions under the Prospectus Regulation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to any legal entity which is a "qualified investor" as defined under the Prospectus Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to fewer than 150 natural or legal persons (other than "qualified investors" as defined under the Prospectus Regulation), subject to obtaining the prior consent of the underwriters for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in any other circumstances falling within Article 1(4) of the Prospectus Regulation,

provided that no such offer of shares shall result in a requirement for the Company or any of the underwriters to publish a prospectus pursuant to Article 3 of the Prospectus Regulation or a supplemental prospectus pursuant to Article 23 of the Prospectus Regulation and each person who initially acquires any shares or to whom any offer is made will be deemed to have represented, warranted and agreed to and with each of the underwriters and the Company that it is a qualified investor within the meaning of Article 2 of the Prospectus Regulation.

In the case of any shares being offered to a financial intermediary as that term is used in Article 1(4) of the Prospectus Regulation, each financial intermediary will also be deemed to have represented, warranted and agreed that the shares acquired by it in the offer have not been acquired on a non-discretionary basis on behalf of, nor have they been acquired with a view to their offer or resale to, persons in circumstances which may give rise to an offer of any shares to the public, other than their offer or resale in a Relevant Member State to qualified investors as so defined or in circumstances in which the prior consent of the underwriters has been obtained to each such proposed offer or resale.

For the purposes of this provision, the expression an "offer to the public" in relation to any shares in any Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and any shares to be offered so as to enable an investor to decide to purchase or subscribe for any shares, and the expression "Prospectus Regulation" means Regulation (EU) 2017/1129.

*United Kingdom* 

This prospectus has been prepared on the basis that the offering of the securities falls within one of the exceptions specified in Part 1 of Schedule 1 of the Public Offers and Admissions to Trading Regulations 2024 (the "POATRs") and, accordingly, there will not be a prospectus prepared or published for the purposes of the POATRs. This prospectus does not constitute a prospectus for the purposes of the POATRs.

An offer to the public of any shares may not be made in the United Kingdom, except that an offer to the public in the United Kingdom of any shares may be made at any time under the following exemptions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at any time to any legal entity which is a qualified investor as defined in paragraph 15 of Schedule 1 to the POATRs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) at any time to fewer than 150 persons (other than qualified investors as defined in paragraph 15 of Schedule 1 to the POATRs) in the United Kingdom subject to obtaining the prior consent of the relevant underwriters nominated by us for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) at any time in any other circumstances falling within Part 1 of Schedule 1 to the POATRs.

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For the purposes of this provision, the expression an "offer to the public" in relation to any shares in the United Kingdom means the communication in any form and by any means of sufficient information on the terms of the offer and any shares to be offered so as to enable an investor to decide to purchase or subscribe for any shares.

*Canada* 

The shares may be sold in Canada only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103 Registration Requirements, Exemptions, and Ongoing Registrant Obligations. Any resale of the securities must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable securities laws.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory of these rights or consult with a legal advisor.

Pursuant to section 3A.3 of National Instrument 33-105 Underwriting Conflicts (NI 33-105), the underwriters are not required to comply with the disclosure requirements of NI 33-105 regarding underwriter conflicts of interest in connection with this offering.

*Hong Kong* 

The shares have not been offered or sold and will not be offered or sold in Hong Kong, by means of any document, other than (a) to "professional investors" as defined in the Securities and Futures Ordinance (Cap. 571 of the laws of Hong Kong) (the "SFO") and any rules made thereunder; or (b) in other circumstances which do not result in this prospectus being a "prospectus" as defined in the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32 of the Laws of Hong Kong) (the "CO") or which do not constitute an offer to the public within the meaning of the CO. No advertisement, invitation or document relating to the shares has been or may be issued or has been or may be in the possession of any person for the purposes of issue, whether in Hong Kong or elsewhere, which is directed at, or the contents of which are likely to be accessed or read by, the public of Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to shares which are or are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" as defined in the SFO and any rules made thereunder.

*Singapore* 

This prospectus has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, the securities may not be offered or sold, or made the subject of an invitation for subscription or purchase, nor may this prospectus or any other document or material in connection with the offer or sale, or invitation for subscription or purchase of the shares be circulated, whether directly or indirectly, to any person in Singapore other than (i) to an institutional investor (as defined in Section 4A of the Securities and Futures Act 2001 of Singapore, as modified or amended from time to time (the "SFA")) pursuant to Section 274 of the SFA or (ii) to an accredited investor (as defined in Section 4A of the SFA) pursuant to and in accordance with the conditions specified in Section 275 of the SFA.

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*Japan* 

The shares have not been and will not be registered pursuant to Article 4, Paragraph 1 of the Financial Instruments and Exchange Act. Accordingly, none of the securities nor any interest therein may be offered or sold, directly or indirectly, in Japan or to, or for the benefit of, any "resident" of, Japan (which term as used herein means any person resident in Japan, including any corporation or other entity organized under the laws of Japan), or to others for re-offering or resale, directly or indirectly, in Japan or to or for the benefit of a resident of Japan, except pursuant to an exemption from the registration requirements of, and otherwise in compliance with, the Financial Instruments and Exchange Act and any other applicable laws, regulations and ministerial guidelines of Japan in effect at the relevant time.

*Switzerland* 

The shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange ("SIX") or on any other stock exchange or regulated trading facility in Switzerland. This prospectus has been prepared without regard to the disclosure standards for issuance prospectuses under art. 652a or art. 1156 of the Swiss Code of Obligations or the disclosure standards for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the listing rules of any other stock exchange or regulated trading facility in Switzerland. Neither this prospectus nor any other offering or marketing material relating to the shares or the offering may be publicly distributed or otherwise made publicly available in Switzerland.

Neither this prospectus nor any other offering or marketing material relating to the offering, us or the shares has been or will be filed with or approved by any Swiss regulatory authority. In particular, this prospectus will not be filed with, and the offer of shares will not be supervised by, FINMA, and the offer of shares has not been and will not be authorized under CISA. The investor protection afforded to acquirers of interests in collective investment schemes under the CISA does not extend to acquirers of the shares.

*Australia* 

No placement document, prospectus, product disclosure statement or other disclosure document has been lodged with the Australian Securities and Investments Commission in relation to this offering. This prospectus does not constitute a prospectus, product disclosure statement, or other disclosure document under Chapter 6D.2 of the Corporations Act 2001 (the "Corporations Act"), and does not purport to include the information required for a prospectus, product disclosure statement or other disclosure document under the Corporations Act.

Any offer in Australia of the securities may only be made to persons (the "Exempt Investors") who are "sophisticated investors" (within the meaning of section 708(8) of the Corporations Act), "professional investors" (within the meaning of section 708(11) of the Corporations Act) or otherwise pursuant to one or more exemptions contained in section 708 of the Corporations Act so that it is lawful to offer the securities without disclosure to investors under Chapter 6D of the Corporations Act.

The securities applied for by Exempt Investors in Australia must not be offered for sale in Australia in the period of 12 months after the date of allotment under the offering, except in circumstances where disclosure to investors under Chapter 6D of the Corporations Act would not be required pursuant to an exemption under section 708 of the Corporations Act or otherwise, or where the offer is pursuant to a disclosure document which complies with Chapter 6D of the Corporations Act. Any person acquiring shares must observe such Australian on-sale restrictions.

This prospectus contains general information only and does not take account of the investment objectives, financial situation or particular needs of any particular person. It does not contain any securities recommendations or financial product advice. Before making an investment decision, investors need to consider whether the information in this prospectus is appropriate to their needs, objectives and circumstances and, if necessary, seek expert advice on those matters.

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*Brazil* 

The offer and sale of the securities have not been and will not be registered with the Brazilian Securities Commission (Comissão de Valores Mobiliários, or "CVM") and, therefore, will not be carried out by any means that would constitute a public offering in Brazil under CVM Resolution No. 160, dated 13 July 2022, as amended, or unauthorized distribution under Brazilian laws and regulations. The securities may only be offered to Brazilian Professional Investors (as defined by applicable CVM regulation), who may only acquire the securities through a non-Brazilian account, with settlement outside Brazil in non-Brazilian currency. The trading of these securities on regulated securities markets in Brazil is prohibited.

*Dubai International Financial Centre* 

This prospectus relates to an "Exempt Offer" in accordance with the Offered Securities Rules of the Dubai Financial Services Authority (the "DFSA"). This prospectus is intended for distribution only to persons of a type specified in the Offered Securities Rules of the DFSA. It must not be delivered to, or relied on by, any other person. The DFSA has no responsibility for reviewing or verifying any documents in connection with Exempt Offers. The DFSA has not approved this prospectus nor taken steps to verify the information set forth herein and has no responsibility for the prospectus. The shares to which this prospectus relates may be illiquid and/or subject to restrictions on their resale. Prospective purchasers of the shares offered should conduct their own due diligence on the shares. If you do not understand the contents of this prospectus, you should consult an authorized financial advisor.

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**LEGAL MATTERS** 

The validity of the shares of Class A common stock offered hereby will be passed upon for us by Davis Polk & Wardwell LLP. Ropes & Gray LLP is representing the underwriters.

**EXPERTS** 

The Arxis Combined Financial Statements as of December 31, 2025 and 2024 and for the years ended December 31, 2025 and 2024 have been included in the registration statement in reliance upon the report of KPMG LLP ("KPMG"), independent registered public accounting firm, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing.

The Arxis Combined Financial Statements for the year ended December 31, 2023 and the consolidated financial statements of Connector for the period from January 1, 2024 through September 29, 2024 and for the year ended December 31, 2023 have been audited by RSM US LLP ("RSM"), an independent registered public accounting firm, as stated in their reports thereon and included in this Prospectus and Registration Statement in reliance upon such reports and upon the authority of such firm as experts in accounting and auditing.

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**CHANGE IN INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

On June 20, 2025, RSM was dismissed as the continuing independent accountant of SI Holdings, Inc. and Subsidiaries, Quantic Electronics, LLC and Qnnect, LLC (collectively the Companies). We previously engaged RSM to audit each of the consolidated financial statements of the Companies in accordance with generally accepted auditing standards in the United States of America ("GAAS") as of and for the years ended December 31, 2024 and December 31, 2023. The dismissal was approved by the boards of directors of each of the Companies. RSM was subsequently engaged to audit the combined financial statements of Arcline Engineered Polymer Topco L.P. and Hawkeye TopCo L.P. for the year ended December 31, 2023 and the consolidated financial statements of Connector TopCo, L.P. for the period from January 1, 2024 through September 29, 2024 and for the year ended December 31, 2023 in accordance with the auditing standards of the PCAOB and GAAS. The reports of RSM for the aforementioned audits did not contain an adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles. During our two most recent fiscal years and any subsequent interim period preceding RSM's dismissal, there were (i) no "disagreements" (within the meaning of Item 304(a)(1)(iv) of Regulation S-K) with RSM on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to its satisfaction, would have caused RSM to make reference to the subject matter of the disagreement in connection with its report and (ii) no "reportable events" (within the meaning of Item 304(a)(1)(v) of Regulation S-K). We have provided RSM with a copy of the foregoing disclosures and have requested that RSM furnish us with a letter addressed to the SEC stating whether it agrees with the statements made by us as set forth above and, if not, stating the respects in which it does not agree. A copy of RSM's letter is filed as Exhibit 16.1 to the registration statement of which this prospectus forms a part.

On June 20, 2025, KPMG was engaged as the independent registered public accounting firm to perform combined audits of the Arxis Businesses as of and for each of the annual periods ended December 31, 2024 and 2025. During our two most recent fiscal years and any subsequent interim period preceding KPMG's engagement, neither we, nor anyone acting on our behalf, consulted with KPMG regarding (i) the application of accounting principles to a specified transaction, either completed or proposed or the type of audit opinion that might be rendered on our financial statements or (ii) any matter that was the subject of a "disagreement" (within the meaning of Item 304(a)(1)(iv) of Regulation S-K) or a "reportable event" (within the meaning of Item 304(a)(1)(v)).

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**WHERE YOU CAN FIND MORE INFORMATION** 

We have filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the Class A common stock offered hereby. This prospectus does not contain all of the information set forth in the registration statement and the exhibits and schedules thereto. For further information with respect to us and our Class A common stock, reference is made to the registration statement and the exhibits and any schedules filed therewith. Statements contained in this prospectus as to the contents of any contract or other document referred to are not necessarily complete and in each instance, if such contract or document is filed as an exhibit, reference is made to the copy of such contract or other document filed as an exhibit to the registration statement, each statement being qualified in all respects by such reference.

As a result of the offering, we will be required to file periodic reports and other information with the SEC. The SEC maintains an internet site at *www.sec.gov* that contains reports, proxy and information statements and other information we have filed electronically with the SEC.

We maintain a corporate website at *www.arxis.com*. The reference to our website is an inactive textual reference only and information contained therein or connected thereto is not incorporated into this prospectus or the registration statement of which it forms a part.

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**Index to Financial Statements** 

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| | |
|:---|:---|
|  **Arxis Combined Financial Statements** |  |
|  [Reports of Independent Registered Public Accounting Firms](#fin81728_1) | F-2 |
|  [Combined Balance Sheets as of December 31, 2025 and 2024](#fin81728_2) | F-5 |
|  [Combined Statements of Operations for the years ended December 31, 2025, 2024 and 2023](#fin81728_3) | F-6 |
|  [Combined Statements of Comprehensive Income (Loss) for the years ended December 31, 2025, 2024 and 2023](#fin81728_4) | F-7 |
|  [Combined Statements of Members' Equity for the years ended December 31, 2025, 2024 and 2023](#fin81728_5) | F-8 |
|  [Combined Statements of Cash Flows for the years ended December 31, 2025, 2024 and 2023](#fin81728_6) | F-9 |
|  [Notes to Arxis Combined Financial Statements](#fin81728_7) | F-11 |
|  [Schedule II](#fin81728_7a) | F-63 |

---

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| | |
|:---|:---|
|  **Connector TopCo, L.P. Consolidated Financial Statements** |  |
|  [Report of Independent Registered Public Accounting Firm](#fin81728_8) | F-64 |
|  [Consolidated Statements of Operations for the period from January 1, 2024 through September 29, 2024 and for the year ended December 31, 2023](#fin81728_9) | F-65 |
|  [Consolidated Statements of Comprehensive Loss for the period from January 1, 2024 through September 29, 2024 and for the year ended December 31, 2023](#fin81728_10) | F-66 |
|  [Consolidated Statements of Members' Equity for the period from January 1, 2024 through September 29, 2024 and for the year ended December 31, 2023](#fin81728_11) | F-67 |
|  [Consolidated Statements of Cash Flows for the period from January 1, 2024 through September 29, 2024 and for the year ended December 31, 2023](#fin81728_12) | F-68 |
|  [Notes to Connector TopCo, L.P. Consolidated Financial Statements](#fin81728_13) | F-69 |

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| | |
|:---|:---|
| ![LOGO](g81728g01a03.jpg) | KPMG LLP<br> Aon Center<br> Suite 5500<br> 200 E. Randolph Street<br> Chicago, IL 60601-6436 |

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**Report of Independent Registered Public Accounting Firm** 

To Those Charged with Governance

The Arxis Businesses:

*Opinion on the Combined Financial Statements* 

We have audited the accompanying combined balance sheets of the Arxis Businesses (as defined in Note 1 and 2) (the Company) as of December 31, 2025 and 2024, the related combined statements of operations, comprehensive income (loss), members' equity, and cash flows for each of the years in the two-year period ended December 31, 2025, and the related notes and financial statement schedule II (collectively, the combined financial statements). In our opinion, the combined financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.

*Basis for Opinion* 

These combined financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these combined financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the combined financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the combined financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the combined financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the combined financial statements. We believe that our audits provide a reasonable basis for our opinion.

*Critical Audit Matter* 

The critical audit matter communicated below is a matter arising from the current period audit of the combined financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the combined financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the combined financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

KPMG LLP, a Delaware limited liability partnership, and its subsidiaries are part of

the KPMG global organization of independent member firms affiliated with KPMG

International Limited, a private English company limited by guarantee.

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![LOGO](g81728g01a04.jpg)

*Sufficiency of audit evidence over revenue* 

As discussed in Notes 2 and 4 to the combined financial statements, the Company recorded revenue of $1,591,020 thousand for the year ended December 31, 2025, related primarily to the design, manufacture, and sale of engineered electronic and mechanical components and subsystems. The Company's process to account for revenue varies across facilities and product revenue streams.

We identified the evaluation of the sufficiency of audit evidence over revenue as a critical audit matter. Evaluating the sufficiency of audit evidence obtained required subjective auditor judgment because of the dispersion of the Company's revenue generating activities across many facilities. This included determining the facilities at which to perform procedures and evaluating the nature and extent of evidence obtained.

The following are the primary procedures we performed to address this critical audit matter. We applied auditor judgment to determine the nature and extent of procedures to be performed over revenue, including the determination of the Company's facilities at which those procedures were performed. For each facility where procedures were performed, we evaluated the Company's revenue accounting policies. For a selection of transactions, we assessed the recorded revenues by comparing the amounts recognized to underlying documentation, including contracts with customers, shipping documentation, customer acceptance, or other support. We evaluated the sufficiency of audit evidence obtained by assessing the results of procedures performed, including the appropriateness of the nature and extent of such evidence.

/s/ KPMG LLP

We have served as the Company's auditor since 2025.

Chicago, Illinois

March 13, 2026

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**Report of Independent Registered Public Accounting Firm** 

To the Board of Directors of

Arcline Engineered Polymer Topco L.P. and Hawkeye TopCo L.P.

*Opinion on the Financial Statements* 

We have audited the accompanying combined statements of operations, comprehensive loss, changes in members' equity and cash flows for the year ended December 31, 2023, and the related notes to the combined financial statements and schedule (collectively, the financial statements) of Arcline Engineered Polymer Topco L.P. and Hawkeye TopCo L.P. (collectively, the Company). In our opinion, the financial statements referred to above present fairly, in all material respects, the results of operations of the Company and its cash flows for the year ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

*Basis for Opinion* 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

/s/ RSM US LLP

We have served as the Company's auditor from 2019 to 2025.

Boston, Massachusetts

November 24, 2025

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**Arxis** 

**Combined Balance Sheets** 

**(in thousands)** 

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  **Assets** |  |  |
|  Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $250303 | $110838 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | 216936 | 198962 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract assets | 67780 | 58200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | 315604 | 301948 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets <sup>(a)</sup> | 57058 | 42112 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 907681 | 712060 |
|  Property, plant and equipment, net | 397929 | 403819 |
|  Intangible assets, net | 2429879 | 2474421 |
|  Goodwill | 2745351 | 2629183 |
|  Operating lease right-of-use assets, net | 64651 | 53656 |
|  Other assets | 50943 | 44451 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $6596434 | $6317590 |
|  **Liabilities and members' equity** |  |  |
|  Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $56467 | $52564 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract liabilities, current | 30027 | 20716 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities, current | 10584 | 9263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt, current <sup>(a)</sup> | 26853 | 25559 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other current liabilities | 163230 | 154919 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 287161 | 263021 |
|  Debt, noncurrent <sup>(a)</sup> | 2606459 | 2514758 |
|  Contract liabilities, noncurrent | 1414 | 2204 |
|  Operating lease liabilities, noncurrent | 53798 | 43588 |
|  Deferred tax liabilities | 384420 | 368473 |
|  Other long-term liabilities | 139124 | 148419 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 3472376 | 3340463 |
|  Members' equity <sup>(a)</sup> | 3124058 | 2977127 |
|  Total liabilities and members' equity | $6596434 | $6317590 |

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*(a)* *Refer to "Note 18. Related Party Transactions" for further information on related party arrangements.* 

*See accompanying notes to the combined financial statements.* 

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**Arxis** 

**Combined Statements of Operations** 

**(in thousands)** 

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  Revenue | $1591020 | $742992 | $424495 |
|  Cost of revenue | 836304 | 411853 | 230478 |
|  Gross profit | 754716 | 331139 | 194017 |
|  Selling, general and administrative expenses | 339081 | 156143 | 88227 |
|  Amortization of intangible assets | 138937 | 72405 | 51469 |
|  Operating income | 276698 | 102591 | 54321 |
|  Interest expense, net <sup>(a)</sup>  | 220316 | 161052 | 124496 |
|  Other income, net | (5932) | (5461) | (845) |
|  Net income (loss) before income taxes | 62314 | (53000) | (69330) |
|  Income tax expense (benefit) | 16325 | 2472 | (9412) |
|  Net income (loss) | $45989 | $(55472) | $(59918) |

---

*(a)* *Refer to "Note 18. Related Party Transactions" for further information on related party arrangements.* 

*See accompanying notes to the combined financial statements.* 

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**Arxis** 

**Combined Statements of Comprehensive Income (Loss)** 

**(in thousands)** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  Net income (loss) | $45989 | $(55472) | $(59918) |
|  Other comprehensive income (loss), net of tax: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation gain (loss) | 47320 | (26550) | 4687 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial gains (losses) related to defined benefit pension plans | 12113 | (10630) | 272 |
|  Other comprehensive income (loss) | 59433 | (37180) | 4959 |
|  Total comprehensive income (loss), net of tax | $105422 | $(92652) | $(54959) |

---

*See accompanying notes to the combined financial statements.* 

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**Arxis** 

**Combined Statements of Members' Equity** 

**(in thousands)** 

---

| | |
|:---|:---|
|  | **Members' Equity** |
|  **Balance as of January 1, 2023** | $709035 |
|  Net loss | (59918) |
|  Other comprehensive income | 4959 |
|  Issuance of members' units | 19872 |
|  Issuance of notes receivable <sup>(a)</sup> | (1000) |
|  Distributions | (50) |
|  **Balance as of December 31, 2023** | $672898 |
|  Investment due to Arxis Businesses Transaction | 2389897 |
|  Net loss | (55472) |
|  Other comprehensive loss | (37180) |
|  Issuance of members' units | 4000 |
|  Issuance of notes receivable <sup>(a)</sup> | (14775) |
|  Contributions <sup>(a)</sup> | 18034 |
|  Distributions | (681) |
|  Share-based compensation expense | 406 |
|  **Balance as of December 31, 2024** | $2977127 |
|  Net income | 45989 |
|  Other comprehensive income | 59433 |
|  Issuance of members' units | 10851 |
|  Repurchase of members' units | (2047) |
|  Issuance of notes receivable <sup>(a)</sup> | (6500) |
|  Settlement of notes receivable <sup>(a)</sup> | 1028 |
|  Contributions <sup>(a)</sup> | 385588 |
|  Distributions <sup>(a)</sup> | (363811) |
|  Share-based compensation expense | 16400 |
|  **Balance as of December 31, 2025** | $3124058 |

---

*(a)* *Refer to "Note 18. Related Party Transactions" for further information on related party arrangements.* 

*See accompanying notes to the combined financial statements.* 

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**Arxis** 

**Combined Statements of Cash Flows** 

**(in thousands)** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  **Cash flow from operating activities:** |  |  |  |
|  Net income (loss) | $45989 | $(55472) | $(59918) |
|  Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 200111 | 96303 | 65324 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred financing cost and accretion of paid-in-kind interest | 6097 | 8780 | 8450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of inventory fair value adjustment | 18177 | 24770 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss (gain) on sale and disposal of assets  | 10059 | (83) | (819) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation expense | 27259 | 406 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate hedges change in fair value | 2583 | 879 | 5442 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | (19714) | (24331) | (17728) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt | 15535 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities, net of business acquisitions: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (16327) | 16373 | (984) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | (26384) | (4331) | (1669) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | (21293) | (632) | (175) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 4129 | 6306 | (3259) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other current liabilities | 12120 | 14800 | (4879) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract assets and liabilities, net | (1063) | (13064) | 1333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All other assets and liabilities | (9364) | (306) | (223) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other operating activities, net | 3282 | 548 | 1186 |
|  Net cash provided by (used in) operating activities | 251196 | 70946 | (7919) |
|  **Cash flow from investing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital expenditures | (42425) | (28889) | (12502) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale and disposal of assets  | 2240 | 221 | 315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash acquired in the Arxis Businesses Transaction |  | 46900 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of businesses, net of cash acquired | (152639) | (53508) |  |
|  Net cash used in investing activities | (192824) | (35276) | (12187) |
|  **Cash flow from financing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance of debt <sup>(a)</sup> | 2808000 | 185500 | 23964 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayments of debt <sup>(a)</sup> | (2703788) | (132428) | (16257) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments of debt financing fees | (38907) | (3537) | (4664) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of related party notes receivable <sup>(a)</sup> | (6500) | (14500) | (1000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Settlement of related party notes receivable <sup>(a)</sup> | 6028 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance of related party payable <sup>(a)</sup> | 2000 | 15000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayments of related party payables | (18000) | (5000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuances of members' units | 10851 |  | 19872 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repurchases of members' units | (2047) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions <sup>(a)</sup> | (363811) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions <sup>(a)</sup> | 385588 | 18034 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of interest rate cap |  |  | (6088) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financing activities, net | (1308) | (841) | (247) |
|  Net cash provided by financing activities | 78106 | 62228 | 15580 |
|  Effect of exchange rate changes on cash and cash equivalents | 2987 | 1172 | (33) |
|  Net increase (decrease) in cash and cash equivalents | 139465 | 99070 | (4559) |
|  Cash and cash equivalents, beginning of the year | 110838 | 11768 | 16327 |
|  Cash and cash equivalents, end of the year | $250303 | $110838 | $11768 |

---

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---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  **Supplemental disclosures of cash flow information:** |  |  |  |
|  Cash paid for taxes, net of refunds | $47380 | $11703 | $6238 |
|  Cash paid for interest | 182732 | 150204 | 111141 |
|  **Supplemental schedule of non-cash investing and financing activities:** |  |  |  |
|  Rollover equity issued in connection with acquisition | $— | $4000 | $— |
|  Non-cash investment due to Arxis Businesses Transaction |  | 2342997 |  |

---

*(a)* *Refer to "Note 18. Related Party Transactions" for further information on related party arrangements.* 

*See accompanying notes to the combined financial statements.* 

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

**Note 1. Organization and Nature of Operations** 

Arcline Engineered Polymer Topco, L.P., Hawkeye TopCo, L.P., Connector TopCo, L.P., and Ovation TopCo, L.P. and certain of their respective wholly-owned subsidiaries (collectively, "Arxis", the "Arxis Businesses" or "Company") design, manufacture, and sell highly engineered electronic and mechanical components primarily used in mission-critical applications.

Arcline Engineered Polymer Topco, L.P., and its wholly-owned subsidiaries, operate as leading manufacturers of seals, gaskets, and metalized fabrics used primarily in aerospace and defense, medical device, and industrial products. Hawkeye TopCo, L.P., and its wholly-owned subsidiaries, operate as leading manufacturers of electrical components used primarily in aerospace and defense, consumer electronics, and medical device products. Connector TopCo, L.P., and its wholly-owned subsidiaries, operate as leading manufacturers of highly engineered electronic interconnect solutions used primarily in mission-critical applications in aerospace and defense, semiconductor, medical device, and commercial products. Ovation TopCo, L.P. and certain of its wholly-owned subsidiaries, operate as leading manufacturers of mechanical components used primarily in aerospace and defense, medical and specialized industrial products. Collectively, the Company serves diverse end markets including Defense and Space, Commercial Aerospace, and Industrial Technology, and operates highly specialized manufacturing facilities globally, with a focus on domestic manufacturing.

In 2020, Arcline Investment Management, L.P. ("Arcline") brought Arcline Engineered Polymer Topco, L.P. and Hawkeye TopCo, L.P. under common control of a single Arcline-sponsored investment fund. On September 30, 2024, the Arxis Businesses were contributed to a newly-formed limited partnership series-entity, as the legal acquirer, in a reorganization which brought the Arxis Businesses under common control (the "Arxis Businesses Transaction"). A series-entity is a business structure dividing assets and liabilities amongst the individual Arxis Businesses, under a single master fund. Each of these series are insulated from others until such point that the businesses are formally contributed which has not occurred. The Arxis Businesses Transaction changed investors' economic interests and ownership structure, which is accounted for as a business combination within the scope of ASC 805, *Business Combinations* ("ASC 805"). See "Note 3. Business Combinations*"* for further information on the Arxis Businesses Transaction.

**Note 2. Summary of Significant Accounting Policies** 

**Basis of Presentation** 

The accompanying combined financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and reflect a combination of the Company's accounts and operations. The financial statements combine: (i) the consolidated financial statements of Arcline Engineered Polymer Topco, L.P. as of December 31, 2025 and 2024, and for the three years ended December 31, 2025, (ii) the consolidated financial statements of Hawkeye TopCo, L.P. as of December 31, 2025 and 2024, and for the three years ended December 31, 2025, (iii) the consolidated financial statements of Connector TopCo, L.P. as of and for the year ended December 31, 2025, as of December 31, 2024, and for the period from September 30, 2024 through December 31, 2024, and (iv) the financial statements of Ovation TopCo, L.P. as of and for the year ended December 31, 2025, as of December 31, 2024, and for the period from September 30, 2024 through December 31, 2024, which include only the operations and entities anticipated to be contributed to Arxis and therefore do not represent the full consolidated results of Ovation TopCo, L.P. For each of the aforementioned consolidated financial statements, all significant intercompany accounts and transactions have been eliminated in consolidation.

Certain entities that were included within the historical consolidated financial statements of Ovation TopCo, L.P. have been excluded from the combined financial statements presented herein to reflect the scope of the

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**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

businesses that will comprise Arxis in connection with its planned registration statement. The entities excluded will not form part of the continuing operations of Arxis. Accordingly, the accompanying combined financial statements reflect only the assets, liabilities, results of operations, and cash flows of the Arxis Businesses and are not intended to represent the consolidated financial position or results of Ovation TopCo, L.P. as historically reported.

As of September 30, 2024, these combined financial statements reflect the effect of the Arxis Businesses Transaction discussed further in "Note 3. Business Combinations."

**Use of Estimates** 

The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reported periods. Actual results may differ from these estimates. Significant estimates and assumptions include those related to the carrying amount of property, plant and equipment, goodwill and other intangible assets, fair value of assets acquired, the allowance for credit losses, the valuation of inventories, income taxes, including valuation allowances on deferred tax assets, share-based compensation, assets and obligations related to employee benefits, environmental liabilities and other contingencies, and accounting for over-time contracts with customers.

Estimates are based on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances.

**Revenue Recognition** 

The Company recognizes revenue using the five-step model prescribed in ASC 606, *Revenue from Contracts with Customers* ("ASC 606"). The Company generates revenue primarily from the design, manufacture, and sale of highly engineered electronic and mechanical components used in mission-critical, harsh-environment applications. Based on the Company's production cycle, it is generally expected that goods related to the revenue will be manufactured, shipped and billed within twelve months of the customer purchase order. Revenue is recognized from the sale of products when obligations under the terms of the contract are satisfied, and control of promised goods has transferred to the customer. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods. Revenue is measured at the amount of consideration the Company expects to be paid in exchange for goods.

A majority of the Company's revenue is recognized at a point in time. The Company typically sells electronic and mechanical components based on a customer purchase order, which generally includes a fixed price per unit. The Company satisfies the performance obligation generally upon shipment of the goods to the customer or delivery, depending on contractual terms, as this is when control transfers to the customer. The Company also provides repair, overhaul, and other service activities which are not material.

If a contract contains multiple performance obligations, the transaction price is allocated on a relative standalone selling price basis. Standalone selling price is determined using observable prices where available or estimated based on market conditions and internally approved pricing guidelines.

For certain contracts, revenue is recognized over time because control transfers continuously to the customer, or the products have no alternative use and contractual termination clauses entitle the Company to payment plus a reasonable profit for performance completed to date.

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**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

Progress toward completion is generally measured using the cost-to-cost method, which best depicts the transfer of control to the customer. We estimate the amount of revenue attributable to a contract earned at a given point based on certain costs plus the expected profit. Costs include direct labor, materials, subcontractor costs, and other allocable expenses. Estimates of total contract costs require judgment based on contract duration, availability of materials and labor, and technical risks. The Company performs reviews and reflects adjustments to revenue and margin in the period changes occur. These adjustments, as well as any provisions for anticipated losses, apply only to contracts recognized over time. Provisions for anticipated losses on contracts are recorded when identified. The Company does not currently expect changes in estimates and provisions for anticipated losses to materially affect revenue recognized, as the Company's over time contracts are generally short in duration and cost-to-complete estimates are subject to a limited period of uncertainty.

Certain contracts include variable amounts such as award fees, incentive fees, penalties, or other adjustments. Variable consideration is included in the estimated transaction price when there is a basis to reasonably estimate the amount, including whether the estimate should be constrained based on determination of whether it is probable a significant reversal of revenue in a future period could occur. These estimates require judgment and consider historical performance, contractual terms, and expected outcomes.

Contract modifications are assessed to determine whether they create new, or change existing, enforceable rights and obligations. Modifications for goods or services that are not distinct are accounted for as part of the existing contract, with cumulative catch-up adjustments to revenue recorded as appropriate. Modifications for distinct goods or services are treated as separate contracts.

In the normal course of business, the Company does not accept product returns unless the items are defective as manufactured. In addition, the Company does not typically provide customers with the right to a refund. The Company establishes provisions for estimated returns due to defective products and warranties as required. Some products are covered by a standard assurance warranty, which promises that delivered products conform to contract specifications. The warranty periods typically extend for a limited duration following transfer of control of the product. The Company does not sell extended warranties and does not provide warranties outside of fixing defects that existed at the time of sale. As such, warranties are accounted for under ASC 460, *Guarantees* and not as a separate performance obligation.

Customers generally have payment terms between 30 and 60 days from the satisfaction of the performance obligations. The Company's contracts with customers generally do not include significant financing components or non-cash consideration.

The Company has elected the following practical expedients and policy elections allowable under ASC 606:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company elected to exclude from its transaction price any amounts collected from customers for all sales
taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company elected to account for shipping and handling activities as fulfillment costs rather than as a
separate performance obligation. Shipping and handling costs incurred are included within Cost of revenue in the Combined Statements of Operations. Amounts billed to a customer related to shipping and handling are included within Revenue in the
Combined Statements of Operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company elected to not disclose remaining performance obligations with an original expected duration of one
year or less.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company recognizes the incremental costs of obtaining a contract as an expense when incurred if the
amortization period of the asset is one year or less.

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**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

**Research and Development Costs** 

The Company expenses research and development costs as incurred. Research and development costs were $11,299, $7,480, and $4,641 for the years ended December 31, 2025, 2024, and 2023, respectively, and are recorded within Selling, general and administrative expenses in the Combined Statements of Operations.

**Cash and Cash Equivalents** 

Cash and cash equivalents include cash and liquid investments with original maturities of three months or less. The carrying amounts approximate fair value due to the high liquidity and short maturity of these instruments.

**Accounts Receivable** 

The Company's accounts receivable primarily consist of trade accounts receivable from third party customers. The amounts due are stated net of an allowance for credit losses. The allowance for credit losses is based on historical losses, current economic conditions, geographic considerations, and in some cases, evaluating specific customer accounts for risk of loss. All provisions for allowances for credit losses are included in Selling, general and administrative expenses in the Combined Statements of Operations.

**Inventories** 

Inventory is reported at the lower of cost (using the first-in, first-out and weighted-average methods) or net realizable value. Net realizable value adjustments for slow-moving and obsolete inventories are provided based on current assessments about future product demand and production requirements.

**Contract Assets and Contract Liabilities** 

The timing of revenue recognition may differ from the timing of customer invoicing and payments received. The Company's contract assets include unbilled amounts, reflecting revenue recognized for performance obligations satisfied in advance of customer billings which arise from sales under contracts accounted for over time when the cost-to-cost method of revenue recognition is applied. As the right to payment is not solely subject to the passage of time, these amounts are classified as contract assets and are generally presented as current, as they are expected to be billed and collected within 12 months. Contract assets are transferred to accounts receivable when the right to invoice becomes unconditional. Contract assets do not exceed their net realizable value.

The Company's contract liabilities consist primarily of advance billings and payments received in excess of revenue recognized. We receive payments from customers based on the terms established in our contracts. Contract liabilities decrease as we recognize revenue from the satisfaction of the related performance obligation and are recorded as either current or long-term, depending upon when we expect to recognize such revenue.

**Property, Plant and Equipment** 

Property, plant and equipment is recorded at cost. Depreciation is computed primarily on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives are as follows: buildings from 15 to 40 years; leasehold improvements, the shorter of the lease term or the estimated useful life from one to 20 years; and machinery, equipment and furniture and fixtures from one to 15 years. At the time of retirement or disposal, the acquisition cost of the asset and related accumulated depreciation are eliminated, and any gain or loss is credited to or charged against operations. Maintenance and repairs are expensed as incurred; costs of major additions and betterments are capitalized.

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**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

**Leases** 

The Company evaluates whether a contract contains a lease at the inception of such contract. Specifically, the Company considers whether it controls the underlying asset and has the right to obtain substantially all the economic benefits or outputs of the asset. At lease commencement, the Company records a lease liability and corresponding right-of-use ("ROU") asset. Options to extend or terminate the lease are included as part of the ROU asset and lease liability when it is reasonably certain the Company will exercise the option.

Lease liabilities are recognized at commencement based on the present value of the unpaid lease payments over the lease term. The initial measurement of the ROU asset is equal to the total of the initial measurement of the lease liability, incremental costs to obtain the lease and prepaid lease payments, less any lease incentives received. The Company uses the discount rate implicit in a lease contract, if available. As most of the Company's leases do not provide an implicit rate, the present value of the lease liability is determined using the Company's incremental borrowing rate at lease commencement based on information available, including relevant industry rates.

Amortization of these ROU assets is included within either Cost of revenue or Selling, general and administrative expenses in the Combined Statements of Operations depending on the nature of the expense. Variable lease payments are recognized as lease expense in the period in which the obligation for those payments is incurred.

The Company elected to combine lease and non-lease components for its real estate leases. Non-lease components are generally services that the lessor performs for the Company associated with the leased asset. For leases with an initial term of twelve months or less, an ROU asset and lease liability are not recognized and lease expense is recognized on a straight-line basis over the lease term. The Company tests ROU assets whenever events or changes in circumstance indicate that the asset may be impaired.

**Finite-Lived Intangible Assets** 

Intangible assets primarily represent acquired intangible assets including customer relationships, developed technology, trademarks, and patents. The Company amortizes finite-lived intangible assets on a straight-line basis over their estimated useful life, ranging from 5 to 30 years. The Company routinely reviews the remaining estimated useful lives of finite-lived intangible assets. If there is a change to the estimated useful life assumption for any asset, the remaining unamortized balance is amortized prospectively over the revised estimated useful life.

**Impairment of Long-Lived Assets** 

Long-lived assets, such as property, plant and equipment and finite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset or asset group to the carrying value of the asset or asset group. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. There were no impairments of long-lived assets for the periods presented.

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**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

**Business Combinations** 

The Company accounts for business combinations under ASC 805 using the acquisition method of accounting to allocate costs of acquired businesses to the identifiable assets acquired (including intangible assets) and liabilities assumed based on their estimated fair values at the dates of acquisition*.* The total purchase consideration is generally measured as the fair value of the cash or non-cash assets transferred and equity instruments issued at the acquisition date. The Company recognizes goodwill if the fair value of the total purchase consideration is in excess of the fair value of the identifiable assets acquired net of liabilities assumed. The valuations of the assets acquired and liabilities assumed will impact future operating results. Determining the fair value of assets acquired and liabilities assumed requires judgment and often involves the use of estimates and assumptions which may be significant, including assumptions with respect to future cash inflows and outflows, revenue growth rates and EBITDA margins, discount rates, and market multiples, among other items. We determine the fair values of assets acquired and liabilities assumed generally in consultation with third-party valuation advisors.

Fair value adjustments to the Company's assets and liabilities are recognized and the results of operations of the acquired business are included in our combined financial statements from the effective date of the merger or acquisition. Costs incurred by the Company that are directly attributable to the acquisition are expensed within Selling, general and administrative expenses in the Combined Statements of Operations.

**Goodwill and Other Intangible Assets** 

The Company does not amortize goodwill or intangible assets that are deemed to have indefinite useful lives. The Company reviews these assets at least annually for impairment, on the first day of the fourth quarter. Additionally, these assets are also reviewed for possible impairment whenever changes in circumstances indicate that the fair value of a reporting unit is more likely than not below its carrying value.

The Company first assesses qualitative factors to determine whether events and circumstances indicate that it is necessary to perform a quantitative impairment test. In the quantitative impairment test, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. Fair value of the reporting unit is determined using an income or market approach based on estimates of cash flows for each reporting unit, with those cash flows discounted to present value using rates commensurate with the risks associated with those cash flows. No impairment charge was recorded for the periods presented.

**Debt** 

Debt is classified as current or noncurrent based on the maturity of the Company's financing arrangements. Long-term debt balances are reported net of debt issuance costs, which represent legal and other direct costs related to the Company's debt. Debt issuance costs on the Company's term loans are amortized to interest expense using the effective interest method through maturity date of the instrument. Debt issuance costs associated with the Company's revolving credit facilities and delayed draw term loans are classified as an asset within Other assets on the Combined Balance Sheets, and are amortized to interest expense ratably over the contractual term of the underlying instrument.

**Fair Value Measurements and Financial Instruments** 

The Company measures certain assets and liabilities at fair value in accordance with ASC 820, *Fair Value Measurement* ("ASC 820"), which establishes a framework for measuring fair value and a fair value hierarchy

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**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

based on the observability of inputs. The fair value hierarchy is as follows: Level 1 – Quoted prices for identical assets or liabilities in active markets; Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be derived from or corroborated by observable market data or by correlation or other means; and Level 3 – Significant unobservable inputs that reflect the Company's best estimate of fair value from the perspective of a market participant.

The Company's financial instruments that are not remeasured at fair value include cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, and debt. The carrying values of these financial instruments materially approximate their fair values.

<u>Interest Rate Hedges</u> 

The Company uses interest rate hedging instruments (caps or collars) to limit exposure to variability in cash flows on certain floating-rate debt instruments should interest rates rise above a certain level. Interest rate hedges have been designated by the Company as an economic hedge rather than an accounting hedge. Interest rate hedges are recognized at fair value every reporting period and the current portion of the interest rate hedges is included within Prepaid expenses and other current assets or Accrued expenses and other current liabilities and the non-current portion of interest rate hedges is included within Other assets or Other long-term liabilities on the Combined Balance Sheets. The changes in the fair value of the interest rate hedges are reported as a component of Interest expense, net in the Combined Statements of Operations. Fair value of the interest rate hedges is calculated using Level 2 inputs. See "Note 11. Debt*"* for further information.

**Concentrations of Risk** 

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of trade accounts receivable. The carrying amounts of these items, as well as trade accounts payable, approximate fair value due to the short-term maturity of these instruments.

The Company maintains its cash in bank accounts that, at times, exceeds federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk regarding cash. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of customers composing the Company's customer base. As of December 31, 2025 and 2024, no individual customer accounted for more than 10% of accounts receivable. For the years ended December 31, 2025, 2024, and 2023, no individual customer accounted for more than 10% of revenue.

**Income Taxes** 

Income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss, capital loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company elected to account for the tax effects of the global intangible low tax income provision as a current period expense. In addition, the Company releases the income tax effects of items recorded in accumulated other comprehensive income ("AOCI") using the aggregate portfolio approach.

The Company has prepared the combined tax provision within the combined financial statements based on the individual tax attributes of Arcline Engineered Polymer Topco, L.P., Hawkeye TopCo, L.P., Connector TopCo,

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

L.P., and Ovation TopCo, L.P. and certain of their respective wholly-owned subsidiaries, the Arxis Businesses, each individually based on their current filing status. For the preparation of the income tax provision for Ovation TopCo, L.P. entities included in the combined financial statements, we used the separate return approach under the asset and liability method.

The Company records a benefit for uncertain tax positions in the financial statements only when it determines it is more likely than not that such a position will be sustained upon examination by taxing authorities based on the technical merits of the position. Unrecognized tax benefits represent the difference between the position taken in the tax return and the benefit reflected in the financial statements.

**Share-Based Compensation** 

The Company accounts for share-based compensation in accordance with ASC 718, Compensation-Stock Compensation ("ASC 718"), including certain receivables due from related parties, where recourse exists to the equity interests of the executive.

Equity-classified awards are measured at grant date fair value and are not subsequently remeasured. Compensation cost for equity-classified awards is recognized over the requisite service period for time-based awards and when the applicable performance condition is considered probable of achievement for performance-based awards.

Liability-classified awards are initially measured at fair value on the grant date and subsequently remeasured at fair value at each reporting date until settlement. Compensation cost for liability-classified performance-based awards is recognized when the applicable performance condition is considered probable of achievement, for awards that are probable to vest. When the performance condition is event based, the Company generally does not determine the performance condition is probable until such event occurs. Once vested, changes in fair value are recognized immediately in compensation expense until settlement.

The fair value of each award is estimated on the date of grant using an Option Pricing Methodology ("OPM"), under a risk neutral framework. Liability-classified awards are remeasured at fair value at each reporting date using the same valuation methodology. A number of assumptions are used to determine the fair value of awards granted. These include expected term, dividend yield, volatility of the awards and the risk-free interest rate. The Company has classified share-based compensation within Selling, general and administrative expenses to correspond with the classification of employees that receive awards. Award forfeitures are accounted for as incurred at the time of the forfeiture.

See "Note 16. Members' Equity" for further information.

**Employee Benefit Plans** 

The Company accounts for its defined benefit pension plan and supplemental retirement plan by recognizing the overfunded or underfunded status of the plan, calculated as the difference between the plan assets and the projected benefit obligation, as an asset or liability on the balance sheet, with changes in the funded status recognized in comprehensive income (loss) in the year in which they occur. Vested benefit obligations are determined based on the present value of vested benefits to which an employee is currently entitled based on his or her expected date of separation or retirement.

Expenses and liabilities associated with the plan are determined based upon actuarial valuations. Integral to the actuarial valuations are a variety of assumptions including expected return on plan assets and discount rate. The

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**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

Company regularly reviews these assumptions, which are updated as of the December 31 measurement date. Differences between actual results and assumptions are recognized in other comprehensive income (loss) and subsequently recognized in earnings over the future or remaining service period, as applicable, which impacts pension expense in future periods.

Certain of the Company's defined benefit plans, including those assumed in the Arxis Businesses Transaction, are non-contributory and frozen, and therefore no additional service costs are incurred for those plans. Other defined benefit plans maintained by the Company's operating subsidiaries continue to accrue benefits for eligible participants in accordance with the respective plan provisions.

**Loss Contingencies** 

The Company is subject to environmental regulation by federal, state, and local authorities in the United States and regulatory authorities with jurisdiction over its foreign operations. When the Company becomes aware of environmental risk, it performs a site study to ascertain the potential magnitude of contamination and the estimated cost of investigation and remediation. The Company is also subject to various legal proceedings that arise in the ordinary course of business, including product liability matters and commercial commitments primarily relating to the guarantee of future performance on certain contracts. Environmental costs, product liability matters, and commercial commitments are accrued when it is probable that a liability has been incurred, and the amount can be reasonably estimated. If there is any change in the cost and/or timing of investigation and the remediation, the accrual is adjusted accordingly.

At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses as incurred the costs related to such legal proceedings.

See "Note 14. Commitments and Contingencies*"* for further information.

**Foreign Currency Translation** 

The Company has certain operations outside the United States that prepare financial statements in currencies other than the U.S. dollar. For these operations, results of operations and cash flows are translated using the average exchange rate throughout the period. Assets and liabilities are generally translated using end of period rates. The gains and losses associated with these translation adjustments are included as a component of Members' equity.

Gains and losses resulting from foreign currency transactions are included within Other income, net in the Combined Statements of Operations.

**Recently Adopted Accounting Pronouncements** 

In March 2024, the FASB issued ASU 2024-01, "Compensation – Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards", which clarifies how an entity determines whether a profits interest or similar award is within the scope of ASC 718. It applies to all entities that account for profit interest awards as compensation to employees or non-employees in return for goods or services. The amendments in this update are effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods. The Company adopted this standard in 2025 on a prospective basis, and the adoption of this accounting pronouncement did not have a material impact on the combined financial statements.

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**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09")*,* to enhance the transparency and decision usefulness of income tax disclosures primarily related to the tax rate reconciliation and income taxes paid information. The amendments in this ASU are effective for annual periods beginning after December 15, 2024. The Company adopted this standard in 2025 on a prospective basis, and updated its income tax note. The adoption of this accounting pronouncement did not have a material impact on the combined financial position or results of operations. See "Note 15. Income Taxes" for further information.

In November 2023, the FASB issued ASU 2023-07 "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures"*,* which requires disclosure of the title and position of the Chief Operating Decision Maker ("CODM"), an explanation of how the CODM uses the reported measure of segment profit or loss in assessing segment performance and deciding how to allocate resources, and disclosure of significant expenses regularly provided to the CODM that are included within the reported measure of segment profit or loss. The amendments of ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company adopted this standard retrospectively to all prior periods presented in the combined financial statements.

In June 2022, the FASB issued ASU 2022-03, "Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions", which clarifies the guidance in ASC 820, "Fair Value Measurement", when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with ASC 820. ASU 2022-03 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, and early adoption is permitted. The Company adopted this standard in 2024 on a prospective basis, and the adoption of this accounting pronouncement did not have a material impact on the combined financial statements.

In October 2021, the FASB issued ASU 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers", which improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized by the acquirer. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted this standard in 2023 on a prospective basis and the adoption of this accounting pronouncement did not have a material effect on the combined financial statements.

**Recent Accounting Pronouncements Yet to be Adopted** 

In November 2024, the FASB issued ASU 2024-03, "Income Statement (Topic 220): Disaggregation of Income Statement Expenses"*,* which requires additional disclosures of certain amounts included in the expense captions presented on a company's income statement as well as disclosures about selling expenses. The ASU is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, and early adoption is permitted. The Company is currently evaluating the impacts of adopting this guidance on its financial statement disclosures.

**Note 3. Business Combinations** 

**Oldham Seals Group Limited** 

On June 27, 2025, the Company acquired 100% equity interest in Oldham Seals Group Limited ("Oldham"), a Chichester, England based company that designs and manufactures highly engineered elastomeric and polymer

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

products for the naval and civilian shipping industry, oil and gas and traction industries. The total consideration comprised $115,099 of cash and $331 of deferred consideration. The acquisition was funded by proceeds of $92,000 from the Company's 2025 Revolver (as defined below in "Note 11. Debt") and cash on hand.

The following table summarizes the purchase price allocation to the underlying assets acquired and liabilities assumed based on their fair values as of the acquisition date:

---

| | |
|:---|:---|
|  | **Estimated Fair Value** |
|  Cash and cash equivalents | $10690 |
|  Accounts receivable | 1979 |
|  Inventories | 2064 |
|  Prepaid expenses and other current assets | 524 |
|  Property, plant and equipment | 4842 |
|  Operating lease right-of-use assets | 2005 |
|  Intangible assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54532 |
|  Goodwill | 58586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets acquired | 135222 |
|  Accounts payable | 1651 |
|  Operating lease liabilities, current | 442 |
|  Accrued expenses and other current liabilities | 1308 |
|  Operating lease liabilities, noncurrent | 1467 |
|  Deferred tax liabilities | 14924 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities assumed | 19792 |
|  Net assets and liabilities | $115430 |

---

The Company recognized goodwill for the excess of the purchase price over the fair value of net assets acquired. Goodwill was primarily attributable to synergies and economies of scale expected from combining the operations of the Company and Oldham. Goodwill is not deductible for tax purposes.

Transaction expenses paid by the Company in connection with the above acquisition amounted to $2,146 for the year ended December 31, 2025, and are included within Selling, general and administrative expenses in the Combined Statements of Operations.

**Spira Manufacturing Corporation** 

On January 8, 2025, the Company acquired 100% equity interest in Spira Manufacturing Corporation ("Spira"), which specializes in custom manufacturing of electromagnetic interference and radio-frequency interference shielding gaskets and products. The total consideration comprised $49,916 of cash and $551 of deferred consideration. The acquisition was funded by $42,000 of proceeds from the issuance of debt from the Company's Credit Facility 1.0 and cash on hand.

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**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

The following table summarizes the purchase price allocation to the underlying assets acquired and liabilities assumed based on their fair values as of the acquisition date:

---

| | |
|:---|:---|
|  | **Estimated Fair Value** |
|  Cash and cash equivalents | $1205 |
|  Accounts receivable | 1332 |
|  Inventories | 2854 |
|  Property, plant and equipment | 2635 |
|  Operating lease right-of-use assets | 3098 |
|  Intangible assets | 21700 |
|  Goodwill | 27933 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets acquired | 60757 |
|  Accounts payable | 146 |
|  Contract liabilities | 1083 |
|  Operating lease liabilities, current | 460 |
|  Accrued expenses and other current liabilities | 305 |
|  Operating lease liabilities, noncurrent | 2638 |
|  Deferred tax liabilities | 5658 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities assumed | 10290 |
|  Net assets and liabilities | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50467 |

---

The Company recognized goodwill for the excess of the purchase price over the fair value of net assets acquired. Goodwill was primarily attributable to synergies and economies of scale expected from combining the operations of the Company and Spira. Goodwill is not deductible for tax purposes.

Transaction expenses paid by the Company in connection with the above acquisition amounted to $1,003 for the year ended December 31, 2025, and are included within Selling, general and administrative expenses in the Combined Statements of Operations.

Pro forma revenue and net income have not been presented for Spira and Oldham because the financial results of Spira and Oldham, individually and in the aggregate, are not material to the combined financial statements in any period presented.

**Arxis Businesses Transaction** 

On September 30, 2024, the equity interests of Arcline Engineered Polymer Topco, L.P., Hawkeye TopCo, L.P., Connector TopCo, L.P., and Ovation TopCo, L.P., were contributed to a newly-formed limited partnership series-entity (the "Arxis Businesses Transaction"). The Arxis Businesses Transaction brought these entities under common control and resulted in a business combination within the scope of ASC 805.

Arcline Engineered Polymer Topco, L.P. and Hawkeye TopCo, L.P., which were under common control for all periods presented including prior to September 30, 2024, were determined to be the accounting acquirer group in accordance with ASC 805. The total consideration of $2,389,897 represents the amount equal to the estimated fair value of equity exchanged in the Arxis Businesses Transaction by the limited partner holders of the acquired businesses, Connector TopCo, L.P. and Ovation TopCo, L.P., as of the date of the Arxis Businesses Transaction. The acquisition date fair value of equity exchanged for the acquired businesses was determined in consultation with third-party valuation advisors based on an estimated enterprise value, using a combination of the income

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**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

and market approaches, reduced by borrowings assumed. The determination of the fair value of equity exchanged required the Company to make significant estimates and assumptions related to future cash flows, discount rates, and selection of comparable companies. The total consideration does not include the amount attributable to the entities that have been excluded from Ovation TopCo, L.P. as described in "Note 2. Summary of Significant Accounting Policies." The Company acquired cash as part of the Arxis Businesses Transaction, but there was no cash consideration exchanged as part of the Arxis Businesses Transaction.

The combined financial statements include the operations of the acquired businesses from the date of the Arxis Businesses Transaction, which is the acquisition date. The Company accounted for the acquired businesses using the acquisition method of accounting, which requires, among other things, assets acquired and liabilities assumed to be recognized at their estimated fair values as of the acquisition date.

The following table summarizes the purchase price allocation to the underlying assets acquired and liabilities assumed based on their fair values as of the acquisition date:

---

| | |
|:---|:---|
|  | **Estimated Fair Value** |
|  Cash and cash equivalents | $46900 |
|  Accounts receivable | 139756 |
|  Contract assets | 13837 |
|  Inventories | 251426 |
|  Prepaid expenses and other current assets | 33734 |
|  Property, plant and equipment | 334462 |
|  Intangible assets | 1797352 |
|  Goodwill | 1778438 |
|  Operating lease right-of-use assets | 24714 |
|  Other assets | 39730 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets acquired | 4460349 |
|  Accounts payable | 31380 |
|  Contract liabilities, current | 4911 |
|  Operating lease liabilities, current | 4420 |
|  Debt, current | 14382 |
|  Accrued expenses and other current liabilities | 97253 |
|  Debt, noncurrent | 1454776 |
|  Contract liabilities, noncurrent | 2435 |
|  Operating lease liabilities, noncurrent | 19916 |
|  Deferred tax liabilities | 306039 |
|  Other long-term liabilities | 134940 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities assumed | 2070452 |
|  Net assets and liabilities | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2389897 |

---

The Company recognized goodwill for the excess of the purchase price over the fair value of net assets acquired. Goodwill was primarily attributable to synergies and economies of scale expected from combining the operations of the Company. For tax purposes, the Arxis Businesses Transaction was classified as a stock acquisition, so the Company retained its tax basis in underlying assets, including tax-deductible goodwill. At the time of acquisition, there was $245,975 in carryover tax-deductible goodwill, with no new tax-deductible goodwill created as part of the transaction.

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**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

The following table presents the amounts allocated to the intangible assets identified at the acquisition date and the estimated useful lives:

---

| | | |
|:---|:---|:---|
|  | **Weighted-Average<br>Remaining Useful<br>Lives (in years)** | **Estimated Fair Value** |
|  Trademarks | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17 | $176500 |
|  Customer relationships | 24 | 1337200 |
|  Patents and technology | 17 | 283652 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total intangible assets acquired |  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1797352 |

---

The Company assumed certain debt instruments in the Arxis Businesses Transaction which were recorded on the acquisition date at their fair values and determined to equal their notional amounts. Refer to "Note 11. Debt" for further details on the debt assumed and subsequently extinguished in 2025.

<u>Pro forma financial information (unaudited)</u> 

The following unaudited pro forma financial information summarizes the Combined Results of Operations of the Company, and both Connector TopCo, L.P. and Ovation TopCo, L.P., as if each had been acquired as of January 1, 2023:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Revenue | $1389563 | $1237918 |
|  Net loss | $(196078) | $(222281) |

---

The pro forma financial information for all periods presented above has been calculated after adjusting the results of operations to reflect certain business combination effects, including the amortization of the acquired intangibles, depreciation of acquired property, plant and equipment, interest expense, share-based compensation expense, and other purchase accounting impacts as though the Arxis Businesses Transaction occurred as of January 1, 2023. The pro forma results are not necessarily indicative of the operating results that would have occurred had the acquisition been effective January 1, 2023, nor are they intended to be indicative of results that may occur in the future.

**RMB Products, Inc.** 

On August 28, 2024, the Company acquired 100% equity interest in RMB Products, Inc. ("RMB") in order to enhance its capabilities in advanced polymer solutions. RMB specializes in custom manufacturing and engineered polymers for the aerospace, chemical processing, semiconductor, and biopharmaceutical industries. The total consideration transferred was $48,618. The acquisition was funded by the proceeds of a $50,000 term loan from the Credit Facility 1.0, net of deferred financing costs of $998.

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**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

The following table summarizes the purchase price allocation to the underlying assets acquired and liabilities assumed based on their fair values as of the acquisition date:

---

| | |
|:---|:---|
|  | **Estimated Fair Value** |
|  Cash and cash equivalents | $1416 |
|  Accounts receivable | 3292 |
|  Inventories | 5725 |
|  Prepaid expenses and other current assets | 2632 |
|  Property, plant and equipment | 5738 |
|  Intangible assets | 17700 |
|  Goodwill | 28871 |
|  Operating lease right-of-use assets | 5991 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets acquired | 71365 |
|  Accrued expenses and other current liabilities | 11865 |
|  Operating lease liabilities, noncurrent | 5726 |
|  Deferred tax liabilities | 5156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities assumed | 22747 |
|  Net assets and liabilities | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48618 |

---

The Company recognized goodwill for the excess of the purchase price over the fair value of net assets acquired. Goodwill was primarily attributable to synergies and economies of scale expected from combining the operations of the Company and RMB. Goodwill is not deductible for tax purposes.

Transaction expenses paid by the Company in connection with the above acquisition amounted to $1,105 for the year ended December 31, 2024, and are included within Selling, general and administrative expenses in the Combined Statements of Operations.

Pro forma revenue and net income have not been presented because the financial results of RMB are not material to these combined financial statements in any period presented.

**M-Wave Design Corporation** 

On May 9, 2024, the Company acquired 100% equity interest in M-Wave Design Corporation ("M-Wave") in order to expand its product offering to customers. M-Wave specializes in designing and manufacturing RF and microwave components, including isolators, circulators, adaptors, and terminations, for applications in aerospace, defense, and specialized industrials. The total consideration of $12,358 was comprised of $7,508 of cash, $4,000 of rollover equity and $850 of contingent consideration.

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**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

The following table summarizes the purchase price allocation to the underlying assets acquired and liabilities assumed based on their fair values as of the acquisition date:

---

| | |
|:---|:---|
|  | **Estimated Fair Value** |
|  Cash and cash equivalents | $1202 |
|  Accounts receivable | 672 |
|  Inventories | 423 |
|  Property, plant and equipment | 56 |
|  Intangible assets | 9400 |
|  Goodwill | 1675 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets acquired | 13428 |
|  Accounts payable | 101 |
|  Accrued expenses and other current liabilities | 38 |
|  Contract liabilities | 931 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities assumed | 1070 |
|  Net assets and liabilities | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12358 |

---

The contingent consideration is a cash-based arrangement and requires the Company to pay the former owners a specific amount for each of two measurement periods based on adjusted EBITDA targets. The potential undiscounted amount of future payments that the Company could be required to make under the contingent consideration arrangement is between $0 and $5,000. The fair value of the contingent consideration arrangement of $850 was estimated using internal forecasts to determine the most likely outcome. Contingent consideration outstanding during the periods presented is recorded at fair value based on unobservable inputs and is considered a Level 3 liability.

The Company had contingent consideration related to the M-Wave acquisition of $2,600 and $850 included in Accrued expenses and other current liabilities on the Combined Balance Sheets as of December 31, 2025 and 2024, respectively. The Company recognized goodwill for the excess of the purchase price over the fair value of net assets acquired. Goodwill was primarily attributable to synergies and economies of scale expected from combining the operations of the Company and M-Wave. Goodwill recognized is deductible for tax purposes.

Transaction expenses paid by the Company in connection with the above acquisition amounted to $376 for the year ended December 31, 2024, and are included within Selling, general and administrative expenses in the Combined Statements of Operations.

Pro forma revenue and net income have not been presented because the financial results of M-Wave are not material to the combined financial statements in any period presented.

**Note 4. Revenue** 

The Company disaggregates revenue based on the method of measuring satisfaction of the performance obligation either at a point in time or over time. Additionally, the Company disaggregates revenue based on the end market where products and services are transferred to the customer. The Company's principal operating segments and related revenue are discussed in "Note 5. Segment Information.*"*

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**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

**Disaggregation of Revenue** 

Disaggregated revenue satisfied at a point in time and over time was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  **Electronic Components** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Satisfied at a point in time | $481570 | $210512 | $113741 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Satisfied over time | 223427 | 150003 | 116101 |
|  **Mechanical Components** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Satisfied at a point in time | 731444 | 314895 | 160589 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Satisfied over time | 154579 | 67582 | 34064 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1591020 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;742992 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;424495 |

---

Disaggregated revenue by end market was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  **Electronic Components** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defense and Space | $485661 | $267604 | $166940 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial Aerospace | 11867 | 4486 | 3143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Industrial Technology | 207469 | 88425 | 59759 |
|  **Mechanical Components** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defense and Space | 256566 | 130547 | 79291 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial Aerospace | 355744 | 135730 | 46563 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Industrial Technology | 273713 | 116200 | 68799 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1591020 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;742992 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;424495 |

---

**Revenue by Geography** 

Revenue from external customers by geographic area based on location of the customer was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  United States | $1051442 | $539618 | $316558 |
|  Europe | 287401 | 103840 | 45759 |
|  All other countries | 252177 | 99534 | 62178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1591020 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;742992 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;424495 |

---

------

##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

**Contract Balances** 

Contract assets and contract liabilities were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  Contract assets, current | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;67780 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58200 |
|  Contract liabilities, current | (30027) | (20716) |
|  Contract liabilities, noncurrent | (1414) | (2204) |
|  Total contract liabilities | $(31441) | $(22920) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net contract assets | $36339 | $35280 |

---

Contract assets increased primarily due to new contract awards and timing of work performed resulting in progress toward completion and revenue recognition. This increase was partially offset by progress billings, performance-based payments, and contractual billings that reduced previously recognized contract asset balances. Contract liabilities increased primarily as a result of advance payments received on new and existing contracts. This increase was partially offset by revenue recognized upon completion of performance obligations, including the achievement of contractual milestones and fulfillment of orders during the period. For the years ended December 31, 2025 and 2024, revenue recognized from contract liabilities at the beginning of the period was $20,677 and $15,571, respectively.

**Note 5. Segment Information** 

The Company has two reportable segments, Electronic Components and Mechanical Components. The Company's segment reporting structure is consistent with how the CODM reviews the business, makes investing and resource decisions, and assesses operating performance.

The Electronic Components segment provides specialized, highly engineered electronic components and interconnect solutions, including connectors, cable assemblies, microelectronic packaging, radio frequency and microwave products, power products, sensors, capacitors, and resistors.

The Mechanical Components segment designs and manufactures precision and self-lubricating bearings, seals, springs, gaskets and ducting, and shielding textiles.

The Company's CODM is its Chief Executive Officer. The CODM evaluates the performance of the segments and allocates resources to them based on segment adjusted earnings before interest, taxes, depreciation and amortization adjusted for other non-cash or non-recurring items ("Segment Adjusted EBITDA") that management believes are not reflective of the Company's ongoing core operations. The CODM uses Segment Adjusted EBITDA to evaluate operating performance, review and assess the performance of the management team in connection with employee incentive programs and to prepare its annual budget and financial projections. The Company defines Segment Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, adjusted for certain non-core, non-operating, non-recurring, or non-cash items, including transaction and other deal related expenses, acquisition and integration costs, restructuring costs for restructuring programs, refinancing costs, and non-cash share-based compensation expenses. In addition, the CODM receives Cost of revenue, Selling, general and administrative expenses, Capital expenditures, and assets of each segment regularly to monitor cash flow and asset needs of each segment.

------

##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

Information on the Company's two reportable segments, Electronic Components and Mechanical Components, was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** |
|  | **Electronic<br>Components** | **Mechanical<br>Components** | **Total** |
|  Revenue | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;704997 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;886023 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1591020 |
|  Segment cost of revenue <sup>(1)</sup>  | 335217 | 437067 | 772284 |
|  Segment selling, general and administrative expenses <sup>(2)</sup>  | 97868 | 155499 | 253367 |
|  Other segment items <sup>(3)</sup>  | (3083) | (2852) | (5935) |
|  Segment Adjusted EBITDA | $274995 | $296309 | $571304 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
|  | **Electronic<br>Components** | **Mechanical<br>Components** | **Total** |
|  Revenue | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;360515 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;382477 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;742992 |
|  Segment cost of revenue <sup>(1)</sup>  | 173413 | 195500 | 368913 |
|  Segment selling, general and administrative expenses <sup>(2)</sup>  | 59058 | 72310 | 131368 |
|  Other segment items <sup>(3)</sup>  | (1000) | (288) | (1288) |
|  Segment Adjusted EBITDA | $129044 | $114955 | $243999 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
|  | **Electronic<br>Components** | **Mechanical<br>Components** | **Total** |
|  Revenue | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;229842 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;194653 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;424495 |
|  Segment cost of revenue <sup>(1)</sup>  | 116112 | 103767 | 219879 |
|  Segment selling, general and administrative expenses <sup>(2)</sup>  | 47897 | 32386 | 80283 |
|  Other segment items <sup>(3)</sup>  | (211) | (634) | (845) |
|  Segment Adjusted EBITDA | $66044 | $59134 | $125178 |

---

(1) Represents cost of revenue adjusted to exclude depreciation and amortization.

(2) Represents selling, general and administrative expenses adjusted to exclude depreciation, transaction and other
deal related expenses, acquisition and integration costs, restructuring related costs and non-cash share-based compensation expense.

(3) Represents other income and expense adjustments that are non-recurring, non-operational, or not reflective of core performance, such as loss on disposal of assets, commercial commitments or legal settlements, income from transition services agreements and non-operational pension impacts.

------

##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

The following table provides a reconciliation of Segment Adjusted EBITDA to Net income (loss) before income taxes for the periods presented:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  Segment Adjusted EBITDA | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;571304 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;243999 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;125178 |
|  Interest expense, net | 220316 | 161052 | 124496 |
|  Depreciation and amortization | 200111 | 96303 | 65324 |
|  Acquisition and integration costs | 23313 | 25788 | 2900 |
|  Restructuring costs | 3772 | 14108 | 1402 |
|  Transaction and other deal related expenses | 12695 | 3054 | 643 |
|  Share-based compensation expense | 27259 | 406 |  |
|  Refinancing costs |  | 335 | 190 |
|  Other non-recurring adjustments | 21524 | (4047) | (447) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) before income taxes | $62314 | $(53000) | $(69330) |

---

Total assets by reportable segment were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  Electronic Components | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3059230 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2995245 |
|  Mechanical Components | 3537204 | 3322345 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $6596434 | $6317590 |

---

Capital expenditures by reportable segment were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  Electronic Components | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11247 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12595 | $7035 |
|  Mechanical Components | 31178 | 16294 | 5467 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total capital expenditures | $42425 | $28889 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12502 |

---

**Geographic Information** 

Long-lived assets consist of Property, plant and equipment, net and Operating lease right-of-use assets, net. Long-lived assets by geographic area were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  North America | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;384469 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;370825 |
|  Europe | 73343 | 81223 |
|  All other | 4768 | 5427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total long-lived assets | $462580 | $457475 |

---

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

**Note 6. Accounts Receivable** 

Accounts receivable, net consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  Trade receivables | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;219870 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;199869 |
|  Less: allowance for credit losses | (2934) | (907) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | $216936 | $198962 |

---

**Note 7. Inventories** 

Inventories consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  Raw material | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;121609 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;97793 |
|  Work-in-progress | 120333 | 129762 |
|  Finished goods | 73662 | 74393 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | $315604 | $301948 |

---

**Note 8. Property, Plant and Equipment** 

Property, plant and equipment, net consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  Land | $63336 | $61286 |
|  Building | 109479 | 101612 |
|  Leasehold improvements | 38658 | 32761 |
|  Machinery, equipment and furniture and fixtures | 284833 | 245365 |
|  Construction in progress | 22321 | 24961 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property, plant and equipment, gross | 518627 | 465985 |
|  Less: accumulated depreciation | (120698) | (62166) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property, plant and equipment, net | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;397929 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;403819 |

---

Depreciation expense was $61,174, $23,898, and $13,855 for the years ended December 31, 2025, 2024, and 2023, respectively.

------

##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

**Note 9. Goodwill and Intangible Assets** 

**Goodwill** 

The change in the carrying amount of goodwill by reportable segment were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Electronic<br>Components** | **Mechanical<br>Components** | **Total** |
|  Beginning balance as of January 1, 2024 | $444758 | $387284 | $832042 |
|  Additions | 863094 | 945890 | 1808984 |
|  Foreign currency translation | (1905) | (9938) | (11843) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ending balance as of December 31, 2024 | $1305947 | $1323236 | $2629183 |
|  Additions |  | 86519 | 86519 |
|  Foreign currency translation | 1664 | 27985 | 29649 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ending balance as of December 31, 2025 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1307611 | $1437740 | $2745351 |

---

**Intangible Assets** 

Intangible assets consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Weighted-<br>Average<br>Remaining<br>Useful Lives<br>(in years)** | **Gross Amount** | **Accumulated<br>Amortization** | **Net Book<br>Value** |
|  **Amortized intangible assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Customer lists / relationships | 20 | $2107860 | $(273349) | $1834511 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Patents and technology | 16 | 395546 | (42416) | 353130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trademarks / trade names | 14 | 250873 | (45435) | 205438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total amortized intangible assets |  | 2754279 | (361200) | 2393079 |
|  **Indefinite-lived intangible assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trademarks / trade names |  | 36800 |  | 36800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total intangible assets |  | $&nbsp;&nbsp;&nbsp;&nbsp;2791079 | $&nbsp;&nbsp;&nbsp;&nbsp;(361200) | $&nbsp;&nbsp;&nbsp;&nbsp;2429879 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Gross<br>Amount** | **Accumulated<br>Amortization** | **Net Book<br>Value** |
|  **Amortized intangible assets:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Customer lists / relationships | $2036285 | $(176093) | $1860192 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Patents and technology | 355241 | (19559) | 335682 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trademarks / trade names | 245018 | (28271) | 216747 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total amortized intangible assets | 2636544 | (223923) | 2412621 |
|  **Indefinite-lived intangible assets:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Developed technology | 25000 |  | 25000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trademarks / trade names | 36800 |  | 36800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total intangible assets | $2698344 | $(223923) | $2474421 |

---

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

Amortization expense for amortized intangible assets was $138,937, $72,405, and $51,469 for the years ended December 31, 2025, 2024, and 2023, respectively.

On October 1, 2025, the Company reclassified the indefinite-lived Developed technology asset to Patents and technology as a result of technological advancements and increased product competition that may shorten the expected long-term benefit of the underlying asset. The Company did not record an impairment associated with this determination. The asset is being amortized over twelve years.

As of December 31, 2025, estimated amortization expense for amortized intangible assets for the next five years and thereafter was as follows:

---

| | |
|:---|:---|
| **Years Ending December 31:** | **Amount** |
| 2026 | $142040 |
| 2027 | 142002 |
| 2028 | 141902 |
| 2029 | 141789 |
| 2030 | 140446 |
|  Thereafter | 1684900 |
|  Total expected future amortization expense | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2393079 |

---

**Note 10. Balance Sheet Components** 

Prepaid expenses and other current assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  Prepaid expenses | $20821 | $14079 |
|  Other current assets | 36237 | 28033 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57058 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42112 |

---

Accrued expenses and other current liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  Accrued compensation and benefits | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;79488 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;56891 |
|  Accrued tax liabilities | 17978 | 15191 |
|  Accrued interest | 16874 | 11811 |
|  Accrued professional fees | 12285 | 3572 |
|  Legal reserves | 11246 | 8000 |
|  Customer deposits | 6559 | 3764 |
|  Contingent consideration | 2600 | 850 |
|  Warranty and insurance reserves | 2524 | 3133 |
|  Accrued restructuring charges | 2106 | 14809 |
|  Loss on contract accrual | 930 | 4626 |
|  Environmental reserves | 673 | 673 |
|  Related party payables |  | 18175 |
|  Current portion of finance lease obligations | 95 | 1127 |
|  Other | 9872 | 12297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other current liabilities | $163230 | $154919 |

---

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

**Note 11. Debt** 

Debt consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Maturities** | **Effective Interest<br>Rates** | **December 31,<br>2025** | **December 31,<br>2024** |
|  Term Loan 1.0 | 2027 | 10.5% | $— | $475521 |
|  Term Loan 2.0 | 2026 | 10.4% |  | 373780 |
|  Revolver 2.0 | 2026 | 10.4% |  | 16000 |
|  Delayed Draw Term Loan 2.0 | 2026 | 10.4% |  | 172179 |
|  Term Loan 3.0 | 2029 | 11.5% |  | 629641 |
|  Revolver 3.0 | 2028 | 11.5% |  | 19380 |
|  Delayed Draw Term Loan 3.0 | 2029 | 11.5% |  | 6544 |
|  Term Loan 4.0 | 2031 | 8.1% |  | 812963 |
|  Convertible Promissory Note | 2026 | 10.0% |  | 49623 |
|  Notes Payable | 2031 | 8.0% | 836 | 946 |
|  2025 Term Loan | 2032 | 6.7% | 2636755 |  |
|  2025 DDTL | 2032 | 6.4% | 23880 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total debt |  |  | 2661471 | 2556577 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Unamortized deferred financing costs |  |  | (28159) | (16260) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Current maturities |  |  | (26853) | (25559) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Debt, noncurrent |  |  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2606459 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2514758 |

---

The following table of future payments reflects the contractual annual amounts due on all outstanding debt:

---

| | |
|:---|:---|
| **Year Ending December 31,** | **Amount** |
| 2026 | $26853 |
| 2027 | 26869 |
| 2028 | 26880 |
| 2029 | 26891 |
| 2030 | 26904 |
|  Thereafter | 2527074 |
|  Total expected future payments | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2661471 |

---

**2025 Credit Agreement** 

On February 26, 2025, the Company entered into a credit agreement (the "2025 Credit Agreement") with the Arxis Businesses as co-borrowers. The 2025 Credit Agreement includes a senior secured term loan of $2,650,000 with a maturity date of February 26, 2032 (the "2025 Term Loan"), a senior secured revolving credit facility with a borrowing capacity of $400,000 with a maturity date of February 26, 2030 (the "2025 Revolver"), and a delayed draw term loan with commitments of $250,000 with a maturity date of February 26, 2032 (the "2025 DDTL"). The 2025 Credit Agreement includes a $65,000 letter of credit sublimit and a $100,000 swingline sublimit. The Company capitalized debt issuance costs of $38,907 in connection with the issuance.

The proceeds from the 2025 Term Loan were used to repay all outstanding instruments under the Credit Facility 1.0, Credit Facility 2.0, Credit Facility 3.0, Credit Facility 4.0, and the convertible promissory notes, as further described below (the "2025 Refinancing").

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

The instruments under the 2025 Credit Agreement bear interest at SOFR or a base rate, at the Company's election, plus an applicable margin that varies based on the Company's consolidated first lien net leverage ratio as follows for the 2025 Term Loan and 2025 DDTL: SOFR plus 2.75% (or Base Rate plus 1.75%) if the ratio is above 4:75:1.00, or SOFR plus 2.50% (or Base Rate plus 1.50%) if the ratio is equal to or below 4.75:1.00; and for the Revolver: SOFR plus 2.00% (or Base rate plus 1.00%) if the ratio is above 5.25:1.00, SOFR plus 1.75% (or Base Rate plus 0.75%) if equal to or below 5.25:1.00 but greater than 4.75:1.00, or SOFR plus 1.50% (or Base rate plus 0.50%) if equal to or below 4.75:1.00. Interest is payable quarterly.

The Company may draw on the 2025 DDTL until February 26, 2027. The Company is subject to a commitment fee on undrawn commitments at a rate of 1.00% per annum until February 26, 2027 (or earlier termination or funding of such commitments).

The 2025 Term Loan requires quarterly principal payments of 1% per annum of the original principal balance, with the remaining balance due at maturity. The initial principal payment was due on September 30, 2025. The 2025 DDTL requires quarterly principal payments of 1% per annum commencing the first quarter post-draw, for each tranche, with the remaining balance due at maturity.

The Company is subject to a commitment fee on the unused portion of the 2025 Revolver at a rate of 0.50% per annum, payable quarterly, which steps down to 0.375% or 0.25% per annum based on the consolidated first lien net leverage ratio.

The 2025 Credit Agreement contains customary affirmative and negative covenants, including a maximum leverage ratio, customary default provisions for the acceleration of maturity upon occurrence of certain events, and provisions for optional and mandatory prepayments of the principal prior to the maturity date.

As of December 31, 2025, there was no outstanding balance on the 2025 Revolver and $4,966 letters of credits were utilized, resulting in an available borrowing capacity of $395,034 on the 2025 Revolver. As of December 31, 2025, the Company had borrowed $24,000 against the 2025 DDTL.

**Credit Facility 1.0** 

During and prior to the year ended December 31, 2022, Arcline Engineered Polymer Topco, L.P. and its subsidiaries executed, and amended five times, a credit agreement. The credit agreement consists of a term loan of $426,200 term loan ("Term Loan 1.0") and a revolving line of credit of up to $20,000 ("Revolver 1.0", and collectively with Term Loan 1.0, the "Credit Facility 1.0"). Credit Facility 1.0 is secured by substantially all assets of Arcline Engineered Polymer Topco, L.P. and its subsidiaries.

In March 2023, amendment 6 to Credit Facility 1.0 converted the existing LIBOR Loans into Secured Overnight Financing Rate ("SOFR") Loans.

In December 2023, amendment 7 increased Term Loan 1.0 by $17,964. This amendment extended the maturity of the Credit Facility 1.0 to December 31, 2027, increased the quarterly principal payment, and adjusted the leverage ratio covenant. In connection with this amendment, the Company capitalized $4,664 in financing costs and $265 in other third-party fees were expensed in the Combined Statements of Operations.

In August 2024, amendment 8 increased Term Loan 1.0 by $50,000 and the capacity on Revolver 1.0 was increased from $20,000 to $30,000. This amendment increased the quarterly principal payment from $1,110 to $1,235. In connection with this amendment, the Company capitalized $998 in financing costs.

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

Credit Facility 1.0 bears interest at SOFR rate plus a credit margin of 6.0% if the total leverage ratio is greater than or equal to 5.50:1.00; or 5.8% if the total leverage ratio is less than 5.50:1.00; or at the election of the Company, the applicable ABR rate plus, a margin of 5.0% if the total leverage ratio is greater than or equal to 5.50:1.00 or at 4.8% if less than 5.50:1.00. Term Loan 1.0 requires quarterly principal payments in the amount of $1,235 through maturity, with the remaining balance due at maturity.

As of December 31, 2024, there were no amounts drawn on Revolver 1.0 and the capacity available was $30,000.

Credit Facility 1.0 contains a restrictive covenant for a maximum leverage ratio, provisions for the acceleration of the maturity upon occurrence of certain events, and for optional and mandatory prepayments of the principal prior to the maturity date.

In February of 2025, the Company repaid the full amount outstanding under the Credit Facility 1.0. The Company recorded a loss on extinguishment of $7,884, which is included within Interest expense, net in the Combined Statements of Operations for the year ended December 31, 2025.

**Credit Facility 2.0** 

During and prior to the year ended December 31, 2022, Hawkeye TopCo, L.P. and its subsidiaries executed a credit agreement which was subsequently amended three times. The credit agreement, as amended, matures on November 19, 2026 and consists of a $357,413 term loan ("Term Loan 2.0"), a delayed draw term loan with commitments of $220,000 ("DDTL 2.0") and a revolving line of credit with a borrowing capacity of $30,000 ("Revolver 2.0" and, collectively with Term Loan 2.0 and DDTL 2.0, the "Credit Facility 2.0"). Credit Facility 2.0 is secured by substantially all assets of Hawkeye TopCo, L.P. and its subsidiaries and contains various financial and non-financial covenants.

In April 2023, amendment 4 to Credit Facility 2.0 converted the existing LIBOR Loans into SOFR Loans.

In March 2024, amendment 5 increased Term Loan 2.0 to $387,413 and paid down the total outstanding notional balance and related interest on Revolver 2.0. In connection with Credit Facility 2.0 and subsequent amendments, the Company incurred lender and other third-party fees of $2,979, which were expensed in the Combined Statements of Operations.

At each interest rate reset date, the Company can elect either SOFR or ABR plus an applicable margin for each tranche of debt. The interest rate on Credit Facility 2.0 instruments were set at SOFR plus 6.35% starting in the second quarter of 2023. Prior to the second quarter of 2023, the interest rate was set at LIBOR plus 6.25%.

Term Loan 2.0 requires quarterly principal payments of 1% per annum of the original principal balance, with the remaining balance due at maturity.

As of December 31, 2024, the outstanding balance on Revolver 2.0 was $16,000 and the capacity available was $14,000. As of December 31, 2024, the outstanding balance on DDTL 2.0 was $172,179 with an available capacity of $47,821.

In February of 2025, the Company repaid the full amount outstanding under the Credit Facility 2.0. The Company recorded a loss on extinguishment of $5,832, which is included within Interest expense, net in the Combined Statements of Operations for the year ended December 31, 2025.

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

**Credit Facility 3.0** 

In connection with the Arxis Businesses Transaction, the Company assumed the credit agreement of Connector TopCo, L.P. and its subsidiaries. The credit agreement, as amended, consists of a $606,000 term loan due November 2, 2029 ("Term Loan 3.0"), a delayed draw term loan with a borrowing capacity of $159,000 due November 2, 2029 ("DDTL 3.0") and a revolving line of credit with a borrowing capacity of $95,000 due November 2, 2028 ("Revolver 3.0", and collectively with Term Loan 3.0 and DDTL 3.0, the "Credit Facility 3.0"). Credit Facility 3.0 is secured by substantially all the assets of Connector TopCo, L.P. and its subsidiaries and contains various financial and non-financial covenants.

Term Loan 3.0 requires principal payments of 1.0% per annum of the original principal balance, with the remaining due November 2, 2029. The interest rates are 7% plus SOFR for Term Loan 3.0 and DDTL 3.0 and 3.5% plus SOFR for Revolver 3.0.

In October 2024, amendment 2 to Credit Facility 3.0 resulted in a second term loan for $57,000. In connection with the amendment, the Company repaid $22,824 on Term Loan 3.0, $263 on DDTL 3.0 and $30,000 on Revolver 3.0. The Company capitalized deferred financing costs of $2,706 related to the amendment.

As of December 31, 2024, the outstanding balance on Revolver 3.0 was $19,380 within an available capacity of $75,620. As of December 31, 2024, the outstanding balance on the DDTL 3.0 was $6,544 with an available capacity of $152,456.

In February of 2025, the Company repaid the full amount outstanding under the Credit Facility 3.0. The Company recorded a loss on extinguishment of $1,568, which is included within Interest expense, net in the Combined Statements of Operations for the year ended December 31, 2025.

**Credit Facility 4.0** 

In connection with the Arxis Businesses Transaction, the Company assumed the credit agreement of Ovation TopCo, L.P. and its subsidiaries, which consists of a $815,000 senior secured term loan due April 19, 2031 ("Term Loan 4.0") and a senior secured multicurrency revolving credit facility of up to $150,000 due April 19, 2029 (the "Revolver 4.0"), including a $75,000 letter of credit sublimit and a $30,000 swingline sublimit.

Term Loan 4.0 is subject to quarterly amortization payments equal to 0.25% of the original principal amount, with the remaining principal due at maturity. As of December 31, 2024, no amounts were drawn under and there were $5,400 of letters of credit outstanding, resulting in an available capacity of $144,600 on Revolver 4.0.

The interest rates under the Term Loan 4.0 and Revolver 4.0 are based on either Term SOFR or an alternative base rate, plus an applicable margin that varies based on the Company's consolidated first lien net leverage ratio. As of December 31, 2024, the applicable margin for Term SOFR loans was 3.5% for Term Loan 4.0 and 3.0% for Revolver 4.0.

Borrowings under Credit Facility 4.0 are guaranteed by certain subsidiaries of Ovation TopCo, L.P., and certain of the Company's domestic subsidiaries and are secured on a first-priority basis by substantially all assets of the borrowers and guarantors, subject to customary exceptions. Credit Facility 4.0 contains customary affirmative and negative covenants, including limitations on additional indebtedness, liens, restricted payments, and asset sales, as well as financial reporting obligations. Revolver 4.0 is subject to a financial covenant requiring maintenance of a consolidated first lien net leverage ratio of no more than 7.10 to 1.00 when more than 35.0% of Revolver 4.0 is drawn (excluding letters of credit cash collateralized or backstopped). Credit Facility 4.0 also

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

provides for incremental facilities, subject to certain leverage-based and dollar-based caps and contains customary events of default provisions.

On January 1, 2025, the Company received a contribution of $385,000, which was used to repay $385,000 of term loans outstanding under Credit Facility 4.0, see "Note 18. Related Party Transactions" for further details. In February of 2025, the Company repaid the remaining amount of borrowings outstanding under the Credit Facility 4.0. The Company recorded a loss on extinguishment of $251, which is included within Interest expense, net in the Combined Statements of Operations for the year ended December 31, 2025.

**Commitment Fees** 

The Company is subject to commitment fees, payable quarterly in arrears, on the unused portion of its revolving credit commitments and the undrawn capacity on its delayed draw term loan. Commitment fees totaled $3,017, $570, and $331 for the years ended December 31, 2025, 2024, and 2023, respectively, and are included within Interest expense, net in the Combined Statements of Operations.

**Convertible Promissory Notes** 

In June and August 2021, Arcline Engineered Polymer Topco, L.P. and its subsidiaries entered into unsecured loan agreements, in the amount of $30,000 and $5,000, respectively. The interest rate is 10.0% per annum and is accreted at the end of each calendar month by increasing the outstanding principal by an amount equal to such interest then due and payable. Principal and interest shall be paid in full at maturity on July 25, 2026. The total outstanding loan, at any time on or before the maturity date, may be convertible into a variable number of units of Arcline Engineered Polymer Topco, L.P. at a conversion price equal to the fair market value per unit on the date of conversion. The Company evaluated this feature under ASC 815 and determined that it is clearly and closely related and therefore was not accounted for separately. As of December 31, 2024, the amount outstanding was $49,623, which includes accrued interest in the amount of $14,623.

In February of 2025, the Company repaid the full amount outstanding under the loan agreements and extinguished the convertible promissory notes. The Company did not incur fees in connection with the settlement.

See "Note 18. Related Party Transactions*"* for further details.

**Notes Payable** 

The Company assumed $972 of notes payable in the Arxis Businesses Transaction that mature on September 30, 2031. As of December 31, 2025 and 2024, the amount outstanding was $836 and $946, respectively.

**Interest Rate Hedges** 

The Company enters into various interest rate hedge agreements as economic hedges to certain of the Company's floating rate debt agreements, described above.

In April 2025, the Company entered into interest rate collar arrangements as an economic hedge to a portion of the Company's outstanding debt. The collars have a cap rate of 5.0% and floor rates ranging from 1.9% to 2.5%. As of December 31, 2025, the notional amount of the interest rate collars was $1,791,000. The interest rate collars terminate in December 2028.

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

The fair value of the interest rate collars as of December 31, 2025 was $2,474, which is included within Other long-term liabilities on the Combined Balance Sheets. For the year ended December 31, 2025, the Company recorded a loss of $2,474, due to the change in fair value of the interest rate collars, which is included within Interest expense, net in the Combined Statements of Operations.

In March 2023, the Company entered into an interest rate cap with a cap rate of 5.5%, and a notional amount of $315,000 as of December 31, 2024. The effective date of the cap was June 30, 2023 and had a termination date of June 30, 2025. In March 2023, the Company entered into a second interest rate cap with a cap rate of 5.3% SOFR, and a notional amount of $521,648 as of December 31, 2024. The agreement had a termination date of March 31, 2025. In connection with the Arxis Businesses Transaction, the Company acquired a third interest rate cap, as amended, with a cap rate of 5.0% and a notional amount of $447,683 as of December 31, 2025 and 2024. The agreement had a termination date of February 2, 2026.

The fair value of the interest rate caps as of December 31, 2025 and 2024 was $0 and $109, which is included within Prepaid expenses and other current assets on the Combined Balance Sheets. For the years ended December 31, 2025, 2024, and 2023, the Company recorded a loss of $109, $879, and $5,442, respectively, due to the change in fair value of the interest rate caps, which is included within Interest expense, net in the Combined Statements of Operations.

**Note 12. Leases** 

The Company's operating leases consist of rent commitments under various leases for office space, warehouses, land and buildings. The terms of most of these leases are in the range of three to ten years. The Company's finance leases include machinery, equipment and furniture and fixtures. The terms of these leases range from three to five years. Certain of the Company's leases include one or more options to extend the lease, for periods ranging from one year to twenty years.

Operating and finance lease balances were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Classification** | **December 31, 2025** | **December 31, 2024** |
|  **Assets** |  |  |  |
|  Operating lease assets | Operating lease right-of-use assets, net | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64651 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53656 |
|  Finance lease assets | Property, plant and equipment, net | 267 | 1353 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total lease assets |  | $64918 | $55009 |
|  **Liabilities** |  |  |  |
|  Current: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | Operating lease liabilities, current | $10584 | $9263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance lease liabilities | Accrued expenses and other current liabilities | 95 | 1127 |
|  Noncurrent: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | Operating lease liabilities, noncurrent | 53798 | 43588 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance lease liabilities | Other long-term liabilities | 242 | 178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total lease liabilities |  | $64719 | $54156 |

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

The components of operating and finance lease cost were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  Operating lease cost | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15957 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9091 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6816 |
|  Finance lease cost: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of assets | 880 | 397 | 178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on lease liabilities | 33 | 28 | 19 |
|  Short term and variable lease cost | 1182 | 715 | 204 |
|  Sublease revenue | (115) | (131) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total lease expense | $17937 | $10100 | $7217 |

---

The weighted-average remaining lease term and discount rates were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  Weighted-average remaining lease term (years) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating leases | 6.2 | 6.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance leases | 4.0 | 1.5 |
|  Weighted-average discount rate |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating leases | 8.9% | 8.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance leases | 8.7% | 3.9% |

---

Supplemental cash flow information related to leases consisted of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  Cash paid for amounts included in measurement of lease liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating cash flows from operating leases | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15545 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9414 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6335 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating cash flows from finance leases | 33 | 40 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financing cash flows from finance leases | 1149 | 847 | 177 |
|  Non-cash lease disclosures: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease assets obtained in exchange for operating lease liabilities | 21617 | 9350 | 1517 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance lease assets obtained in exchange for finance lease liabilities | 130 | 196 | 132 |

---

The estimated minimum future lease payments were as follows:

---

| | | |
|:---|:---|:---|
| **Year Ending December 31,** | **Operating<br>Leases** | **Finance<br>Leases** |
| 2026 | 15848 | 118 |
| 2027 | 14583 | 93 |
| 2028 | 12914 | 70 |
| 2029 | 12104 | 52 |
| 2030 | 9794 | 42 |
|  Thereafter | 20294 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total undiscounted lease obligation | 85537 | 383 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Imputed interest | (21155) | (46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Present value of lease obligations | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64382 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;337 |

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

**Note 13. Restructuring and Severance Costs** 

In connection with the Arxis Businesses Transaction, the Company assumed liabilities related to restructuring efforts to increase efficiencies, improve working capital management, and focus on sustainable and consistent revenue and profit generating activities to be completed by the end of 2025. For the years ended December 31, 2025 and 2024, the Company incurred $1,475 and $13,300, respectively, related to this restructuring program.

The following table summarizes the accrual balances by cost type for these restructuring actions for the period:

---

| | |
|:---|:---|
|  | **Amount** |
|  Beginning balance as of January 1, 2024 | $— |
|  Assumed liabilities in connection with the Arxis Businesses Transaction | 1900 |
|  Provision | 13300 |
|  Cash payments | (349) |
|  Other adjustments | (42) |
|  Ending balance as of December 31, 2024 <sup>(1)</sup> | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14809 |
|  Provision | 1475 |
|  Cash payments | (15056) |
|  Other adjustments | 878 |
|  Ending balance as of December 31, 2025 <sup>(1)</sup> | $2106 |

---

(1) The total accrual balance of $2,106 and $14,809 is included within Accrued expenses and other current
liabilities on the Combined Balance Sheets as of December 31, 2025 and 2024, respectively.

**Note 14. Commitments and Contingencies** 

**Asset Retirement Obligations** 

The Company has asset retirement obligations ("AROs") that are conditional upon certain events.

These AROs generally include the removal and disposition of non-friable asbestos. The facilities that contain non-friable asbestos are generally maintained in place, and under applicable environmental and workplace safety requirements, removal and disposal is generally required only if these materials are disturbed in connection with a major renovation, demolition, or other disposal activity, or if conditions otherwise require abatement under applicable law. The Company has not recorded a liability as of December 31, 2025, because the Company has no current plans for activities that would trigger disturbance and does not currently believe there is a reasonable basis for estimating a date or range of dates for major renovation or demolition of these facilities. In reaching this conclusion, the Company considered the historical performance of each facility and has taken into account factors such as planned maintenance, asset replacements, and upgrades, which, if conducted as in the past, can extend the physical lives of the facilities indefinitely. The Company also considered the possibility of changes in technology and risk of obsolescence in arriving at its conclusion. The Company will continue to evaluate these conditional obligations each reporting period and will record a liability when the fair value becomes reasonably estimable, including when the timing of settlement becomes reasonably estimable.

Additionally, the Company leases various properties under contracts that give the lessor the right to make the determination as to whether the lessee must return the premises to their original condition, except for normal wear and tear. The Company does not normally make substantial modifications to leased property, and many of the Company's leases either require lessor approval of planned improvements or transfer ownership of such

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**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

improvements to the lessor at the termination of the lease. Historically the Company has not incurred significant costs to return leased premises to their original condition.

**Environmental Costs** 

In connection with the Arxis Businesses Transaction, the Company assumed certain liabilities associated with potential obligations to perform environmental remediation. The following table displays the activity and balances associated with accruals related to these environmental costs included within Accrued expenses and other current liabilities and Other long-term liabilities on the Combined Balance Sheets:

---

| | |
|:---|:---|
|  | **Amount** |
|  Beginning balance as of January 1, 2024 | $— |
|  Assumed liabilities in connection with the Arxis Businesses Transaction | 51679 |
|  Additions to accrual | 73 |
|  Payments |  |
|  Ending balance as of December 31, 2024 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51752 |
|  Additions to accrual |  |
|  Payments | (461) |
|  Ending balance as of December 31, 2025 | $51291 |

---

<u>Moosup</u> 

In connection with the Arxis Businesses Transaction, the Company assumed liabilities of Ovation TopCo, L.P. related to a former manufacturing facility in Moosup, Connecticut, that was sold to TD Development, LLC ("TD") in 2014. At the time of sale, TD assumed contractual and statutory responsibility for the environmental investigation and remediation work required at this site (subject to a cost-sharing arrangement). In September 2021, TD's principal filed for personal bankruptcy protection, and during the course of that bankruptcy proceeding, the Company has learned that neither TD nor its principal is expected to have the means to undertake the investigation, remediation and abatement of the site. The Company has filed an objection to the issuance of a discharge in the bankruptcy proceeding.

In 2024, a settlement agreement with TD and related parties was signed, which provided the Company access to its former facility to update the environmental condition assessment of the property and remaining remediation efforts required, formalize the Company's oversight of the investigation and remediation activities with the Connecticut Department of Energy and Environmental Protection ("CDEEP") and enable such investigation and remediation to be performed to commercial/industrial standard rather than the more stringent residential standard. Under this settlement agreement, the Company will undertake the investigation, remediation and abatement of the site, with a modest contribution from TD's principal. The Company engaged an environmental consultant to gather the appropriate data to calculate a range for the potential environmental obligation. The environmental consultant provided an estimate of the costs that are likely to be incurred in connection with these environmental investigation and remediation activities.

As of December 31, 2025 and 2024, $45,015 and $45,272, respectively, is accrued for these environmental investigation and remediation activities in Other long-term liabilities. The aggregate undiscounted amount has been accrued because it represents the Company's best estimate of the cost, but the timing of payments is not considered to be fixed and reliably determinable. There can be no assurance that this matter would not have an adverse impact on our business, financial condition, results of operation and/or cash flows.

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

<u>Bloomfield</u> 

In connection with the Arxis Businesses Transaction, the Company assumed liabilities of Ovation TopCo, L.P. related to a 2008 purchase of the portion of the Bloomfield campus that had been leased from Naval Air Systems Command. In connection with the purchase, the Company assumed responsibility for environmental investigation and remediation at the facility as may be required under the Connecticut Transfer Act and other environmental laws and it continues the effort to define the scope of the remediation that will be required by the CDEEP. This investigation and remediation process will take many years to complete.

As of December 31, 2025 and 2024, the Company had $5,003 and $5,046, respectively, accrued for these environmental investigation and remediation activities, a portion of which is included in Accrued expenses and other current liabilities and the remaining balance is included in Other long-term liabilities. Although it is reasonably possible that additional costs will be paid in connection with the resolution of this matter, the Company is unable to estimate the amount of such additional costs, if any, at this time. The following represents estimated future payments for the undiscounted environmental investigation and remediation liability related to the Bloomfield campus as of December 31, 2025:

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| | |
|:---|:---|
| **Year Ending December 31,** | **Amount** |
| 2026 | $261 |
| 2027 | 190 |
| 2028 | 283 |
| 2029 | 459 |
| 2030 | 70 |
|  Thereafter | 3740 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5003 |

---

**Other Matters** 

The Company is subject to commercial matters and legal proceedings and claims that arise in the normal course of business. While the outcome of these matters cannot be predicted with certainty, the Company does not have any knowledge of any such matters that would have a material adverse effect to the combined financial statements, except as disclosed below.

<u>Commercial Commitments</u>

In November 2024, a manufacturing business in Jacksonville, Florida (the "Jacksonville Business") that is not part of the Arxis Businesses, as described in "Note 1. Organization and Nature of Operations" and "Note 2. Summary of Significant Accounting Policies", was divested to a third party. Following the divestiture, the Company remained a guarantor of certain performance obligations arising under a long-term customer contract to which the Jacksonville Business is a party, pursuant to a guarantee agreement between the Company and such customer that predates the divestiture. The term of the contract covered by the guarantee ends in December 2028 and the approximate value of the contract over the remaining term is $30,000. There is no limitation to the maximum potential future liabilities under this guarantee; however, the Company has a right to indemnification from the Jacksonville Business against such losses that may arise from any failure of the Jacksonville Business to perform under the contract. Such indemnification right includes a monetary cap of $10,000, subject to customary exceptions. The Company may also have other rights or claims, at law or in equity, in connection with any failure by the Jacksonville Business to perform under the contract.

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

The customer has notified the Company of concerns regarding performance of the contract by the Jacksonville Business and alleged that it has incurred damages of approximately $9,000 related to non-performance of the contract to date. The customer has requested that the Company fulfill its obligations under the guarantee.

As a response, in January 2026, the Company commenced litigation to seek to cause the Jacksonville Business to perform the contract. Should the customer and the Jacksonville Business not resolve their dispute regarding the contract directly or should the Company be unsuccessful in causing the Jacksonville Business to perform the contract, the Company may incur a loss in respect to this matter pursuant to the guarantee. For the year ended December 31, 2025, the Company has recognized $9,000 within Selling, general and administrative expenses in the Combined Statements of Operations with respect to this matter. The Company may incur an additional loss in excess of the amount accrued, but no such loss is estimable at this time due to, among other things, the fact that the dispute raises difficult legal and factual issues and is subject to many uncertainties and complexities. Separately, as discussed above, insofar as any such amounts are asserted against the Company pursuant to the terms of the guarantee, the Company intends to exercise all of its rights and remedies against the Jacksonville Business in respect thereof, including seeking indemnification and pursuing any potential remedies. Any proceeds received will not be recognized until realization and could be in a reporting period subsequent to the period in which any loss in respect of the guarantee is probable and estimable.

<u>K-Max Legal Contingency</u> 

In connection with the Arxis Businesses Transaction, the Company assumed liabilities of Ovation TopCo, L.P. related to a helicopter crash where the helicopter utilized the Company's K-Max blades. The Company is named in litigation seeking damages for loss of life, loss of property and business interruption.

As of September 30, 2024, the Company recorded a $8,000 liability for the loss of life, which was included within Accrued expenses and other current liabilities on the Combined Balance Sheets as of December 31, 2024. The liability for the loss of life was fully covered by insurance. The Company reflected the receivable for insurance proceeds within Prepaid expenses and other current assets on the Combined Balance Sheets as of December 31, 2024. In addition, the Company assumed a $17,388 reserve representing the Company's estimate of probable loss associated with the loss of property and business interruption portion of the case as of the Arxis Businesses Transaction, which was included within Other long-term liabilities as of December 31, 2025 and 2024. The Company, in coordination with insurance, estimates that a portion of the liability on the loss of property and business interruption portion of the case will fall within insurance coverage amounts. Accordingly, the Company recognized a receivable for the amount estimated to be recoverable through insurance related to the business interruption claims of $7,779, which was included within Other assets as of December 31, 2025 and 2024. As of December 31, 2025, the Company had not recorded any changes in the estimates associated with these claims.

In May 2025, settlement was reached and paid on the loss of life portion of the case. There were no adjustments made to the combined financial statements for this portion of the case as the settlement amount was equal to the previously recorded amounts and fully covered by insurance.

The remaining claims, related to loss of property and business interruption, proceeded to trial and there was a verdict awarding $22,000 to the plaintiff. Additional pre-judgment and post-judgment interest will apply. The jury found there was no design defect in the K-Max blades. The Company, along with the insurance carriers, are preparing to appeal the verdict. The Company estimates that resolution of this matter is not expected to occur within twelve months of December 31, 2025.

Other than the above matters, the Company is not involved in any pending, material legal proceedings other than routine legal proceedings occurring in the ordinary course of business.

------

##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

**Note 15. Income Taxes** 

The components of net income (loss) before income taxes were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  Domestic operations | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19134 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(58287) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(78014) |
|  Foreign operations | 43180 | 5287 | 8684 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) before income taxes | $62314 | $(53000) | $(69330) |

---

The components of income tax expense (benefit) were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  Current: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17949 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18210 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5878 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | 3082 | 2605 | 853 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign | 15008 | 5971 | 1560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current | 36039 | 26786 | 8291 |
|  Deferred: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | (8678) | (18532) | (12362) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | (4185) | (3430) | (5701) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign | (6851) | (2352) | 360 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deferred | (19714) | (24314) | (17703) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) | $16325 | $2472 | $(9412) |

---

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

As described in "Note 2. Summary of Significant Accounting Policies", upon adoption of ASU 2023-09, the reconciliation of taxes at the federal statutory rate to the provision for income taxes for the year ended December 31, 2025, was as follows:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** |
|  | **Amount** | **Rate** |
|  U.S. Federal Statutory Tax Rate | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13086 | 21.0% |
|  State and Local Income Taxes, Net of Federal Income Tax Effect <sup>(1)</sup> | (1016) | (1.6%) |
|  Foreign Tax Effects |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United Kingdom | 946 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Canada |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State and Local Income Taxes | 1243 | 2.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | (237) | (0.4%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Germany |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Statutory tax rate differences between Germany and United States | (742) | (1.2%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State and Local Income Taxes | 1975 | 3.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rate Change <sup>(2)</sup> | (4820) | (7.7%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 493 | 0.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Foreign Jurisdictions | 51 | 0.1% |
|  Effect of Cross-Border Tax Laws |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. impact of double taxation of foreign branches | (694) | (1.1%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | (278) | (0.4%) |
|  Tax Credits |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Research and development tax credits | (1500) | (2.4%) |
|  Changes in Valuation Allowances | 7782 | 12.5% |
|  Nontaxable or Nondeductible items |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of flow through entity | (2943) | (4.7%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation | 5178 | 8.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | (66) | (0.1%) |
|  Other Adjustments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revaluation of tax assets and liabilities | (2133) | (3.4%) |
|  Effective Tax Rate | 16325 | 26.2% |

---

(1) State taxes in California, Massachusetts, Florida, Connecticut, and New Hampshire made up the majority (greater
than 50%) of the tax effect in this category.

(2) During the current period, Germany enacted legislation that gradually reduces the corporate income tax rate
from approximately 15.8% to 10.6% by 2032. As a result of the enactment of the revised German statutory tax rates, the Company remeasured its German deferred tax balances during the current period. This remeasurement resulted in a deferred tax
benefit of $4,820.

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

The following table details how income tax expense (benefit) differs from that computed at the federal statutory corporate tax rate, prior to adoption of ASU 2023-09, for the years ended December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  Income tax at federal statutory rate | $(11089) | $(14559) |
|  Increases (decreases) in tax resulting from: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign rate differential | 2069 | 96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Global intangible low-taxed income ("GILTI") | 1950 | 1685 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State, net of federal benefit | (2703) | (5026) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of flow-through entity | (238) | 2707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. impact of double taxation on foreign branches | 549 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign tax credit | (2407) | (854) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 50 | 896 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in federal valuation allowance | 14291 | 5643 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) | $2472 | $(9412) |

---

The effective tax rate for the years ended December 31, 2024 and 2023, was (4.7%) and 13.6%, respectively.

As described in "Note 2. Summary of Significant Accounting Policies", upon adoption of ASU 2023-09, cash paid for income taxes, net of refunds, during the year ended December 31, 2025, was as follows:

---

| | |
|:---|:---|
|  | **Year Ended<br>December 31, 2025** |
|  Federal | $30815 |
|  States | 7936 |
|  United Kingdom | 3881 |
|  Canada | 3725 |
|  Other Countries | 1023 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total cash paid for income taxes, net of refunds | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47380 |

---

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of deferred tax assets and liabilities were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  **Deferred tax assets:** |  |  |
|  Net operating loss | $17450 | $15170 |
|  Disallowed interest | 116559 | 97593 |
|  Operating lease liabilities | 14029 | 12263 |
|  Capitalized research and experimental cost | 4540 | 13019 |
|  Deferred employee benefits | 20373 | 25578 |
|  Inventories | 15154 | 17719 |
|  Environmental obligation | 13428 | 13773 |
|  U.S. branch foreign tax credit | 6814 | 6441 |
|  Other assets | 14430 | 14123 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deferred tax assets | 222777 | 215679 |
|  **Deferred tax liabilities:** |  |  |
|  Property, plant and equipment, net | (46521) | (38735) |
|  Operating lease right-of-use assets, net | (14483) | (12572) |
|  Intangible assets | (481629) | (486611) |
|  Goodwill | (26029) | (16108) |
|  Other liabilities | (2150) | (1019) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deferred tax liabilities | (570812) | (555045) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation allowance | (36051) | (27388) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net deferred tax liability | $(384086) | $(366754) |

---

As of December 31, 2025 and 2024, the Company had foreign tax loss carryforwards (tax effected) of $489 and $2,121, federal and state tax loss carryforwards (tax effected) of $16,961 and $13,049 and federal and state credit carryforwards of $7,902 and $5,710, respectively. The federal loss carryforward can be carried forward indefinitely. The state loss and credit carryforwards will expire between 2026 and 2046. As of December 31, 2025 and 2024, the Company had disallowed interest (tax effected) of $116,559 and $97,593, respectively, with no expiration period. Utilization of the Company's net operating loss, disallowed interest, and tax credit carryforwards may be subject to annual limitations due to the ownership change provisions provided by the Internal Revenue Code and similar state provisions. Such annual limitations could result in the expiration of state net operating loss and tax credit carryforwards before their utilization. The events that may cause ownership changes include, but are not limited to, a cumulative stock ownership change of greater than 50% over a three year period.

In evaluating the Company's ability to recover its deferred tax assets, the Company considers all available positive and negative evidence, including its operating results, ongoing tax planning, reversal of existing temporary differences, and forecasts of future taxable income. A valuation allowance is required to be established unless management determines it is more likely than not that the Company will ultimately utilize the tax benefit associated with a deferred tax asset. As of December 31, 2025 and 2024, the Company had federal

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

and state valuation allowances of $35,783 and $27,243 and foreign valuation allowances of $268 and $145, respectively. There is no change to the Company's prior year valuation allowance position. In 2025, the Company recognized a net increase of $8,663, primarily due to increases in the deferred tax asset and related valuation allowance associated with disallowed interest and foreign tax credit. In 2024, the Company recognized an increase related to the 2024 activity and valuation allowance added as part of the Arxis Businesses Transaction.

Given current earnings and anticipated reorganization in the future, the Company believes that there is a reasonable possibility that within the next twelve months, sufficient sources of income may become available to allow the Company to reach a conclusion that a portion of the valuation allowance will no longer be needed. Release of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded.

Management intends to continue to permanently reinvest any future foreign earnings in its foreign subsidiaries. The Company has not recognized a deferred tax liability for these unremitted earnings and related translation adjustments. Because such earnings have previously been subject to the one time transition tax on foreign earnings required by the 2017 Act or the GILTI tax, the amount of outside basis difference in our foreign subsidiaries is not material.

The Company records a benefit for uncertain tax positions in the combined financial statements only when it determines it is more likely than not that such position will be sustained upon examination by taxing authorities. Unrecognized tax benefits represent the difference between the position taken and the benefit reflected in the combined financial statements.

The change in the liability is explained as follows:

---

| | |
|:---|:---|
|  | **Amount** |
|  Beginning balance as of January 1, 2024 | $— |
|  Additions for prior year tax positions in connection with the Arxis Businesses Transaction | 2267 |
|  Lapse of statute of limitations | (533) |
|  Ending balance as of December 31, 2024 <sup>(1)</sup> | $1734 |
|  Additions | 60 |
|  Lapse of statute of limitations | (467) |
|  Ending balance as of December 31, 2025 <sup>(1)</sup> | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1327 |

---

(1) Including interest and penalties of $396 and $533 for the years ended December 31, 2025 and 2024,
respectively.

Included in unrecognized tax benefits as of December 31, 2025 and 2024, were items approximating $1,327 and $1,734, respectively, that, if recognized, would favorably affect the Company's effective tax rate in future periods. The Company files tax returns in numerous U.S. and foreign jurisdictions. The major jurisdictions where the Company is subject to potential examination include the U.S. and the U.S. state jurisdictions. U.S. and major state returns are generally open for examination for the 2021 tax year and onward. However, to the extent allowed by law, the tax authorities may have the right to examine prior periods where net operating losses or tax credits were generated and carried forward, and make adjustments up to the amount of the net operating loss or credit carryforward. Accordingly, tax years 2016 through 2020 for Arcline Engineered Polymer Topco, L.P. remain open for examination with respect to NOL carryforwards used in the 2022 tax return.

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

During the years ended December 31, 2025, 2024, and 2023, $(73), $115, and $0, respectively, of interest and penalties were recognized as a component of Income tax expense (benefit) in the Combined Statements of Operations. It is the Company's policy to record interest and penalties on unrecognized tax benefits as income taxes. The Company does not anticipate any significant increases or decreases to unrecognized tax benefits during the next twelve months.

**Note 16. Members' Equity** 

As of December 31, 2025 and 2024, the Company's outstanding units consist of Class A-1 Units and Class A-2 Units (collectively, "Class A Units"), Class B Units (incentive units), and Growth Participation Units and Value Creation Bonus Units (equivalent Class B Units) of Arcline Engineered Polymer Topco, L.P., Hawkeye TopCo, L.P., Connector TopCo, L.P., and Ovation TopCo, L.P. Class A Units are considered preferred units and have one vote per unit. In the event of distributions, liquidation, dissolution or winding up of the Company, the holders of Class A Units have preference to any distribution over the holders of any other units whereby the Class A Unit holders are entitled to receive an amount equal to their original investments.

As of December 31, 2025 and 2024, there were 270,876,675 and 270,377,934 Class A Units outstanding, respectively.

The Company has authorized 30,082,753 Class B Units for issuance under its share-based arrangements, as defined below. As of December 31, 2025 and 2024, 23,726,763 and 20,836,039 Class B Units, respectively, have been awarded under the Company's share-based arrangements.

**Share-Based Arrangements** 

<u>Management Equity Plans</u> 

Arcline Engineered Polymer Topco, L.P., Hawkeye TopCo, L.P., Connector TopCo, L.P., and Ovation TopCo, L.P. established Management Equity Plans (the "ME Plans") under which the Board of Directors of each entity's plan had the authority to grant Management Incentive Units ("MIUs"). The ME Plans were established to provide the participants incentive compensation via an equity award of Class B Units. The awards are intended to be "profits interests" under IRS regulations.

Once vested, each MIU provides the holder with a right to share in the distribution preferences of the Company once the Class A Unit holders have received cumulative distributions greater than a predetermined participation threshold. Certain MIUs are subject to time vesting, ratably over a defined term (the "time-based vesting MIUs"). The remaining MIUs vest only upon the occurrence of a liquidity event and the Company's investors realizing a return based upon a multiple of their original investment (the "performance-based vesting MIUs"). For these MIUs, in order to be eligible for distributions both time and performance vesting conditions must be met.

The MIUs have been accounted for as an equity award under ASC 718. Compensation cost is recognized over the service condition period for the time-vesting tranche or when it is probable that the performance conditions will be met for the performance-vesting tranche.

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

The following table summarizes the MIU activity:

---

| | | |
|:---|:---|:---|
|  | **Units** | **Weighted-**<br>**average grant<br>date fair value** |
|  Unvested MIUs outstanding as of December 31, 2024 | 11954575 | $2.20 |
|  Granted | 3049909 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.45 |
|  Vested | (2138122) | 4.23 |
|  Forfeited | (1035494) | 2.84 |
|  Unvested MIUs outstanding as of December 31, 2025 | 11830868 | $5.19 |

---

The weighted average grant date fair value of MIUs granted during the years ended December 31, 2024 and 2023, was $2.09 and $2.40, respectively. The total fair value of MIUs vested during the years ended December 31, 2025, 2024, and 2023, was $9,045, $3,030, and $1,137, respectively.

The range of key assumptions used in the determination of the grant date fair value for the MIUs issued were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  Expected annual dividend |  |  |  |
|  Expected volatility rate | 30.0% - 33.0% | 25.8% - 55.0% | 26.0% - 50.0% |
|  Risk-free rate of return | 3.6% - 4.0% | 2.7% - 4.7% | 4.1% - 4.9% |
|  Expected term (years) | 0.3 - 1.2 | 2.0 - 5.0 | 2.0 - 5.0 |
|  Discount for lack of marketability | 4.0% - 8.0% | 27.4% - 31.8% | N/A |

---

The risk-free interest rates used are based upon U.S. treasury rates and yield curves. Expected volatility is based upon historical volatility for publicly traded companies in the same industry sector as the Company. Expected term represents the period of time that MIUs are expected to be outstanding.

On October 1, 2025, the Company modified certain equity interests previously granted to an executive upon their departure from the Company. The modified terms included changes to vesting conditions, as well as the addition of a Company call option to repurchase vested units for a fixed price of $10,000 which triggered the application of modification accounting under ASC 718 and resulted in the recognition of $9,555 of incremental compensation cost. As a result of the modification, the affected awards were reclassified from equity to liability and compensation expense and the related liability was adjusted to reflect the $10,000 fixed liability on the modification date of October 1, 2025.

As of December 31, 2025, there was approximately $20,479 of unrecognized compensation expense related to non-vested time-based vesting MIUs expected to vest, which is expected to be recognized over a weighted-average period of 1.5 years. As of December 31, 2025, there was approximately $35,414 of total unrecognized compensation expense related to non-vested performance-based vesting MIUs.

<u>Growth Participation Plans</u> 

Arcline Engineered Polymer Topco, L.P., Hawkeye TopCo, L.P., Connector TopCo, L.P., and Ovation TopCo, L.P. established the Growth Participation Plans (the "GP Plans") under which the Board of Directors of each had the authority to grant Growth Participation Units ("GPUs") to employees. The GPUs expire on the earlier of the

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

employee's termination or the tenth anniversary of the grant date. Ten GPUs are equivalent to one Class B Unit. Each GPU provides the holder with a right to receive cash distributions upon a liquidity event once the Class A Unit holders have received cumulative distributions equal to or greater than two times their original capital contributions. The GPUs have been accounted for as a liability award under ASC 718. Compensation cost is only recognized when it is probable that the vesting conditions will be met. No compensation expense has been recognized for the years ended December 31, 2025, 2024, and 2023.

The following table summarizes the GPU activity:

---

| | | |
|:---|:---|:---|
|  | **Units** | **Weighted-<br>average grant<br>date fair value** |
|  Unvested GPUs outstanding as of December 31, 2024 | 36411500 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.29 |
|  Granted | 22496050 | 2.16 |
|  Vested |  |  |
|  Forfeited | (4223000) | 0.31 |
|  Unvested GPUs outstanding as of December 31, 2025 | 54684550 | $1.05 |

---

The weighted average grant date fair value GPUs granted during the years ended December 31, 2024 and 2023, was $0.42 and $0.80, respectively. No GPUs vested during the years ended December 31, 2024 and 2023, respectively.

The range of key assumptions used in the determination of the grant date fair value for the GPUs issued were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  Expected annual dividend |  |  |  |
|  Expected volatility rate | 30.0% - 33.0% | 25.8% - 55.0% | 26.0% |
|  Risk-free rate of return | 3.6% - 4.0% | 2.7% - 4.3% | 4.1% |
|  Expected term (years) | 0.3 - 1.2 | 4.5 - 5.0 | 5.0 |
|  Discount for lack of marketability | 4.0% - 8.0% | 27.4% - 31.8% | N/A |

---

The risk-free interest rates used are based upon U.S. Treasury rates and yield curves. Expected volatility is based upon historical volatility for publicly traded companies in the same industry sector as the Company. Expected term represents the period of time that GPUs are expected to be outstanding.

The unrecognized compensation expense related to the GPUs as of December 31, 2025 was $194,418.

<u>Value Creation Bonus Plan</u> 

Ovation TopCo, L.P. established the Value Creation Bonus ("VCB") Plan (the "VCB Plan") under which the Board of Directors had the authority to grant VCB units to employees. The VCB units expire on the earlier of the employee's termination, sale of Ovation TopCo, L.P. or the tenth anniversary of the grant date. Each VCB unit provides the holder with a right to receive cash payment upon an approved sale of Ovation TopCo, L.P. as if the employee was a Class B Unit holder. The VCB units have been accounted for as a liability award under ASC 718. Compensation cost is only recognized when it is probable that the vesting conditions will be met. No compensation expense has been recognized for the years ended December 31, 2025, 2024, or 2023.

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

The following table summarizes the VCB unit activity:

---

| | | |
|:---|:---|:---|
|  | **Units** | **Weighted-<br>average grant<br>date fair value** |
|  Unvested VCB units outstanding as of December 31, 2024 | 274473 | $2.10 |
|  Granted | 129832 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.38 |
|  Vested |  |  |
|  Forfeited | (52086) | 2.10 |
|  Unvested VCB units outstanding as of December 31, 2025 | 352219 | $8.10 |

---

The weighted average grant date fair value of VCB units granted during the year ended December 31, 2024 was $2.10. No VCB units vested during the year ended December 31, 2024. There were no VCB units granted prior to 2024.

For the range of key assumptions used in the determination of the grant date fair value of VCB units issued, refer to the range of key assumptions disclosed above for the MIUs and GPUs.

The unrecognized compensation expense related to the VCB units as of December 31, 2025 was $12,152.

**Note 17. Employee Retirement Plans** 

**Ovation Pension Plan** 

Ovation TopCo, L.P. has a non-contributory qualified defined benefit pension plan (the "Ovation Pension Plan") that is closed to all new hires and is frozen with respect to future benefit accruals. The measurement date for this plan is December 31.

Ovation TopCo, L.P. also has a Supplemental Employees' Retirement Plan ("SERP"), which is considered a non-qualified pension plan. The SERP provides certain key executives, whose compensation is in excess of the limitations imposed by federal law on the qualified defined benefit pension plan, with supplemental benefits based upon eligible earnings, years of service and age at retirement. The Board's Compensation Committee and the Board have not approved any new participants to the SERP since the acquisition date, and do not intend to do so at any time in the future. The measurement date for this plan is December 31. The SERP does not have a material impact on the combined financial statements for the periods presented. The Ovation Pension Plan and the SERP were assumed in the Arxis Businesses Transaction, described in "Note 3. Business Combinations.*"*

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

The changes in the actuarial present value of the projected benefit obligation and fair value of Ovation Pension Plan assets were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  Projected benefit obligation, beginning balance | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;569070 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;607033 |
|  Interest cost | 30255 | 7373 |
|  Actuarial liability loss (gain) | 8363 | (34887) |
|  Benefit payments | (45221) | (10449) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Projected benefit obligation, ending balance | $562467 | $569070 |
|  Fair value of plan assets, beginning balance | 520617 | 571163 |
|  Actual return on plan assets | 54085 | (40097) |
|  Employer contributions |  |  |
|  Benefit payments | (45221) | (10449) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value of plan assets, ending balance | $529481 | $520617 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Underfunded status, ending balance | (32986) | (48453) |
|  Accumulated benefit obligation | $562467 | $569070 |

---

The liabilities related to the Ovation Pension Plan were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  Current liabilities | $— | $— |
|  Noncurrent liabilities | (32986) | (48453) |
|  Total | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(32986) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(48453) |

---

The following table presents amounts included within Members' equity on the Combined Balance Sheets for the Ovation Pension Plan that will be recognized as components of pension cost in future periods:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  Unrecognized (gain) loss | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1647) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10717 |

---

Components of the net periodic pension cost and other comprehensive income (loss) for the Ovation Pension Plan were computed using the projected unit credit actuarial cost method and included the following components:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
|  Interest cost on projected benefit obligation | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30255 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7373 |
|  Expected return on plan assets | (29414) | (8690) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net pension benefit cost (income) | $841 | $(1317) |
|  Change in net (gain) loss | $(12364) | $10717 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total recognized in other comprehensive (income) loss | (12364) | 10717 |
|  Total recognized in net periodic (income) cost and other comprehensive (income) loss | $(11523) | $9400 |

---

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

There were no contributions made to the Ovation Pension Plan during the years ended December 31, 2025 and 2024 and there are no contributions expected to be made during 2026. The future benefits expected to be paid to the Ovation Pension Plan were as follows:

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| | |
|:---|:---|
| **Year Ending December 31,** | **Amount** |
| 2026 | $42857 |
| 2027 | 43489 |
| 2028 | 43786 |
| 2029 | 44033 |
| 2030 | 43927 |
|  Next five years | 212116 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expected benefit payments | $430208 |

---

Mortality is a key assumption in developing actuarial estimates and, therefore, could significantly impact the valuation of the obligations under the qualified pension plan and SERP. The mortality data was reviewed and based on the size and demographics of the Ovation Pension Plans' participant population; it was determined that the Pri-2012 Blue Collar mortality table projected generationally with mortality improvement scale MP-2021 was the most appropriate assumption.

The Financial Times Stock Exchange Above Median Double-A Curve was used to develop the discount rate assumption. The discount rates used in determining benefit obligations of the Ovation Pension Plan were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  Discount rate | 5.4% | 5.6% |

---

The actuarial assumptions used in determining the net periodic benefit cost of the Ovation Pension Plan were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  Discount rate | 5.6% | 4.9% |
|  Expected return on plan assets | 5.9% | 6.1% |

---

<u>Other</u> 

The Company utilizes a "spot rate approach" in the calculation of pension interest and service cost. The spot rate approach applies separate discount rates for each projected benefit payment in the calculation of pension interest and service cost.

<u>Ovation Pension Plan Assets</u> 

The expected return on plan assets rate was determined based upon historical returns adjusted for estimated future market fluctuations.

The Ovation Pension Plan assets are invested in a diversified portfolio consisting of equity and fixed income securities. The investment goals for pension plan assets are to improve and/or maintain the Ovation Pension

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

Plan's funded status by generating long-term asset returns that exceed the rate of growth of the Ovation Pension Plan's liabilities. The Ovation Pension Plan invests assets in a manner that seeks to (a) maximize return within reasonable and prudent levels of risk of loss of funded status; and (b) maintain sufficient liquidity to meet benefit payment obligations and other periodic cash flow requirements on a timely basis. As the plan's funded status changes, the Pension Administrative Committee (the management committee that is responsible for plan administration), will act through an immediate or gradual process, as appropriate, to reallocate assets.

Under the current investment policy, no Investment Manager may invest in investments deemed illiquid by the Investment Manager at the time of purchase, development programs, real estate, mortgages or private equities without prior written authorization from the Pension Administrative Committee. In addition, with the exception of USG securities, managers' holdings in the securities of any one issuer, at the time of purchase, may not exceed 7.5% of the total market value of that manager's account.

The pension plan assets are valued at fair value. The following is a description of the valuation methodologies used for the investments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy.

**Short-term Investments** – This investment category consists of cash and cash equivalents and futures and options contracts. Cash and cash equivalents are comprised of investments with maturities of three months or less when purchased, including certain short-term fixed-income securities, and are classified as Level 1 investments. Futures contracts and options contracts requiring the investment managers to receive from or pay to the broker an amount of cash equal to daily fluctuations are included in short-term investments and are classified as Level 2 investments.

**Corporate Stock** – This investment category consists primarily of domestic common stock issued by U.S. corporations. Common shares are traded actively on exchanges and price quotes for these shares are readily available. Holdings of corporate stock are classified as Level 1 investments.

**Mutual Funds** – Mutual funds are traded actively on public exchanges. The share prices for these mutual funds are published at the close of each business day. Holdings of mutual funds are classified as Level 1 investments.

**Common Trust Funds** – Common trust funds are comprised of shares or units in commingled funds that are not publicly traded. The values of the commingled funds are not publicly quoted and must trade through a broker. For equity and fixed-income commingled funds traded through a broker, the fund administrator values the fund using the net asset value ("NAV") per fund share, derived from the value of the underlying assets. The underlying assets in these funds (equity securities, fixed income securities and commodity-related securities) are publicly traded on exchanges and price quotes for the assets held by these funds are readily available. Holdings of common trust funds are not subject to leveling. In accordance with Topic 820, Fair Value Measurement, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension plan assets.

**Fixed Income Securities** – For fixed income securities, multiple prices and price types are obtained from pricing vendors whenever possible, which enables cross-provider validations. A primary price source is identified based on asset type, class or issue for each security. The fair values of fixed income securities are based on evaluated prices that reflect observable market information, such as actual trade information of similar securities, adjusted for observable differences, and are categorized as Level 2. These securities are primarily investment grade securities.

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

The fair values of the Ovation Pension Plan assets as of December 31, 2025 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Total carrying<br>value** | **Quoted price in<br>active markets<br>(Level 1)** | **Significant<br>observable<br>inputs<br>(Level 2)** | **Significant<br>unobservable<br>input (Level 3)** | **Measured at<br>NAV** |
|  Short-term investments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $8132 | $8132 | $— | $— | $— |
|  Fixed income securities | 337161 | 32084 | 305077 |  |  |
|  Mutual funds | 184188 | 157588 | 12963 |  | 13637 |
|  Total | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;529481 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;197804 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;318040 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13637 |

---

The fair values of the Ovation Pension Plan assets as of December 31, 2024 were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Total carrying<br>value** | **Quoted price in<br>active markets<br>(Level 1)** | **Significant<br>observable<br>inputs<br>(Level 2)** | **Significant<br>unobservable<br>input (Level 3)** | **Measured at<br>NAV** |
|  Short-term investments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $10119 | $10119 | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures contracts – assets | 3157 |  | 3157 |  |  |
|  Fixed income securities | 220543 |  | 220543 |  |  |
|  Mutual funds | 60021 | 60021 |  |  |  |
|  Common trust funds | 202220 |  |  |  | 202220 |
|  Corporate stock | 24557 | 24557 |  |  |  |
|  Total | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;520617 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;94697 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;223700 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;202220 |

---

**Hawkeye Pension Plans** 

One of the Hawkeye TopCo, L.P.'s subsidiaries provides its employees with two qualified defined benefit plans (the "Hawkeye Pension Plans") covering substantially all of the subsidiaries' employees. The benefits are based on monthly amounts accrued upon the employee's date of termination, the level of pension benefit in effect as such time, and the employee's credited years of service. The funding policy is to make contributions to the trustee of the Hawkeye Pension Plans for purposes of providing pension under the Hawkeye Pension Plans as required under accepted actuarial principles to maintain the Hawkeye Pension Plans and pension funds in sound condition.

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

The changes in the actuarial present value of the projected benefit obligation and fair value of the Hawkeye Pension Plan assets were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  **Change in projected benefit obligations:** |  |  |
|  Projected benefit obligation at beginning of year | $9727 | $10677 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Service cost | 230 | 213 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest cost | 454 | 467 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Benefit payments | (766) | (779) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial loss | 281 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of currency translation loss (gain) | 512 | (851) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Projected benefit obligation at end of year | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10438 | $9727 |
|  **Change in plan assets:** |  |  |
|  Fair value of plan assets at beginning of year | $12543 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13505 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actual return on plan assets | 506 | 771 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employer contributions, net of administrative costs | 148 | 135 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Benefit payments | (766) | (779) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of currency translation gain (loss) | 662 | (1089) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value of plan assets at end of year | 13093 | 12543 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funded status at end of year | 2655 | 2816 |
|  Amount recognized within Other assets on the Combined Balance Sheets | 2655 | 2816 |
|  Amount recognized within Other comprehensive (loss) income on the Combined Statements of Members' Equity | $(307) | $281 |

---

The Company's overall investment strategy is to provide participants with the stipulated level of retirement income at a reasonable cost. The Company's investment policy includes various guidelines and procedures designed to ensure assets are invested in a manner necessary to meet expected future benefits earned by participants. The target allocation is to ensure assets are invested with the intent to protect pension plan assets so that such assets are preserved for the provision of benefits to participants and their beneficiaries, and such long-term growth may maximize the amounts available to provide such benefits without undue risk. The target allocation for plan assets are 50% equity securities, 25% fixed income securities, and 25% real return bonds.

As of December 31, 2025 and 2024, the Hawkeye Pension Plan assets were invested in pooled investment funds valued using net asset value ("NAV") as a practical expedient for estimating fair value. The NAV is based on the unit value of the underlying security. The fair values of the Hawkeye Pension Plan assets by asset category were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
|  Equity funds | $4227 | $3158 |
|  Fixed income funds | 8866 | 9385 |
|  Total | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13093 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12543 |

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

Components of the net periodic pension cost and other comprehensive income (loss) for the Hawkeye Pension Plans were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  **Net periodic pension cost:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Service cost | $230 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;213 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest cost | 454 | 467 | 506 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expected return on plan assets | (575) | (577) | (566) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of prior service costs | 8 |  | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of loss |  |  | 8 |
|  Net periodic pension cost | $117 | $103 | $168 |
|  **Other pre-tax changes in plan asset and benefit obligations recognized in other comprehensive income (loss):** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial loss (gain) | $259 | $(79) | $(350) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of prior service cost | (8) | (8) | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of loss |  |  | (8) |
|  Total loss (gain) recognized in accumulated other comprehensive loss (income) | 251 | (87) | (367) |
|  Total recognized in net periodic benefit cost and other comprehensive loss (income) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;368 | $16 | $(199) |

---

The weighted average assumptions used in the accounting for the Hawkeye Pension Plans were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Salaried Plan** | **Hourly Plan** | **Salaried Plan** | **Hourly Plan** |
|  Discount rate | 4.85% | 4.85% | 4.65% | 4.65% |
|  Expected return on plan assets | 5.10% | 4.40% | 5.05% | 4.25% |
|  Average compensation increase | 2.50% | N/A | N/A | N/A |

---

The expected return on Hawkeye Pension Plan assets is set to equal the discount rate used to measure the fair value of the plan assets. As of December 31, 2025, no plan assets are expected to be returned to the Company in the next twelve months.

The accumulated benefit obligation totaled $10,438 and $9,727 as of December 31, 2025 and 2024, respectively.

The future benefits expected to be paid to the Hawkeye Pension Plans were as follows:

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| | |
|:---|:---|
| **Year Ending December 31,** | **Amount** |
| 2026 | $695 |
| 2027 | 729 |
| 2028 | 777 |
| 2029 | 766 |
| 2030 | 772 |
|  Next five years | 3663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expected benefit payments | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7402 |

---

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

**Deferred Compensation Plans** 

The Company maintains a non-qualified deferred compensation plan for certain of its employees. Generally, participants have the ability to defer a certain amount of their compensation, as defined in the agreement. The deferred compensation liability will be paid out either upon retirement or as requested based upon certain terms in the agreements and in accordance with Internal Revenue Code Section 409A. The Company holds investments in company-owned life insurance policies which are recorded at cash surrender value (Level 2). The investments are included in Other assets on the Combined Balance Sheets and were $32,728 and $31,068, as of December 31, 2025 and 2024, respectively. The liabilities under this plan were $2,566 and $0, which are included in Accrued expenses and other current liabilities, and $16,490 and $19,340, which are included in Other long-term liabilities on the Combined Balance Sheets, as of December 31, 2025 and 2024, respectively.

**Defined Contribution Plans** 

The Company sponsors defined contribution plans covering substantially all eligible employees. The plans permit participants to make elective deferrals, with the Company providing matching contributions. Company contributions vary depending on the date of hire, with the majority of employees eligible for employer matching on a portion of their contributions. Employer contributions to the defined contribution plans were approximately $10,604, $4,549, and $2,262 for the years ended December 31, 2025, 2024, and 2023, respectively.

**Note 18. Related Party Transactions** 

**Consulting and Advisory Agreements** 

The Company has consulting and advisory agreements with Arcline. The Company pays advisory fees upon consummation of certain transactions. The agreements expire upon the mutual agreement of Arcline and the Company. For the years ended December 31, 2025, 2024, and 2023, the Company incurred $3,169, $2,161, and $1,828, respectively, and paid $3,494, $894, and $1,451, respectively, for advisory and consulting services. The costs are included within Selling, general and administrative expenses in the Combined Statements of Operations.

As of December 31, 2025 and 2024, unpaid fees related to these agreements were $580 and $1,087, respectively.

**Payables and Loans due to Related Parties** 

As of December 31, 2024, the Company had $49,623 of loans due to affiliates of Arcline which are recorded within Debt, noncurrent on the Combined Balance Sheets. During the year ended December 31, 2025, the Company entered into loans due to affiliates of Arcline in connection with the Spira acquisition. These loans due to affiliates of Arcline were extinguished in February 2025. Refer to "Note 11. Debt" for further discussion on the loans.

As part of the Arxis Businesses Transaction, the Company assumed an outstanding note payable due to an affiliate of Arcline of $5,500, which is unsecured and due in April 2030. The notes are interest-bearing at SOFR plus 3.50% and mature in six years on April 19, 2030 with outstanding principal and interest due at that time. Refer to "Note 3. Business Combinations" for further discussion on the Arxis Businesses Transaction.

As part of the Arxis Businesses Transaction, the Company assumed an outstanding payable due to an affiliate of Arcline of $8,000. During the year ended December 31, 2024, the Company entered into additional payables with the affiliate of $15,000 and repaid $5,000. As of December 31, 2024, the outstanding payables of $18,000 are recorded in Accrued expenses and other current liabilities. These payables matured and were repaid in full during the year ended December 31, 2025.

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

In March 2021, the Company entered into a note payable with an affiliate of Arcline in the amount of $5,000. This note matured and all principal and interest was paid in full in August 2023.

**Receivables due from Related Parties** 

As part of the Arxis Businesses Transaction, the Company acquired certain notes receivable from an affiliate of Arcline of $5,000 which is included within Prepaid expenses and other current assets on the Combined Balance Sheets as of December 31, 2024. There were no outstanding amounts on these notes receivable as of December 31, 2025.

The Company has entered into notes receivable with certain executives of the Company. In April 2023, the Company entered into a note receivable for $1,000. In October 2024, the Company entered into additional notes receivable totaling $14,500. As part of the Arxis Businesses Transaction, the Company acquired additional notes receivable totaling $7,500. During the year ended December 31, 2025, the Company entered into additional notes receivable totaling $6,500. The notes are interest-bearing at the long-term applicable federal rate as of the date of issuance. The notes receivable mature in ten years from the date of issuance, or earlier under certain triggering events, with outstanding principal and interest due at that time. The notes are secured with recourse to the equity interests of the respective executive. The Company recognized $1,278 of compensation expense associated with notes receivable for the year ended December 31, 2025. The notional of the outstanding notes receivable as of December 31, 2025 and 2024 was $28,500 and $23,000, respectively, and is recorded within Members' equity on the Combined Balance Sheets.

**Leases** 

The Company leases certain manufacturing facilities and transportation equipment under operating leases with affiliates of Arcline. Total related party lease payments were approximately $2,593, $1,358, and $938 for the years ended December 31, 2025, 2024, and 2023, respectively.

**Transition Services Agreements** 

As of December 31, 2025 and 2024, the Company had $4,622 and $2,009, respectively, of receivables due from affiliates of Arcline recorded within Prepaid expenses and other current assets on the Combined Balance Sheets, for services provided under transition service agreements ("TSAs"). These amounts relate to technology, finance, human resources, and payroll support and are expected to be billed and collected within twelve months. The TSAs are valid through May 2026 or upon mutual agreement to terminate. During the years ended December 31, 2025 and 2024 the Company recognized $0 and $2,835, respectively, of income related to these TSAs within Other income, net in the Combined Statements of Operations.

**Other Activity** 

As described in "Note 2. Summary of Significant Accounting Policies*"*, certain entities within Ovation TopCo, L.P., are excluded from these combined financial statements. The Company reflected the settlement of ongoing activities from and to those excluded entities as a change in Members' equity on the Combined Balance Sheets.

As described in "Note 11. Debt", during the year ended December 31, 2025, the Company received a contribution of $385,000 from an affiliate of Arcline, the proceeds were used to repay debt outstanding under Credit Facility 4.0. In addition, the Company distributed $350,000 in cash to affiliates of Arcline during the year ended December 31, 2025. These activities are shown as a change in Members' equity on the Combined Balance Sheets.

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##### [**Table of Contents**](#toc)
**Notes to Arxis Combined Financial Statements** 

(in thousands, except units and where explicitly stated)

**Note 19. Subsequent Events** 

The Company evaluated events occurring after the date of the combined financial statements to consider whether the impact of such events needs to be reflected or disclosed in the combined financial statements. Such evaluation was performed through the date the combined financial statements are available for issuance, which was March 13, 2026.

**Micro-Tronics** 

On January 5, 2026, the Company acquired Micro-Tronics, Inc., a manufacturer of precision metal and elastomer-based components. The acquisition expands the Company's product line into adjacent and overlapping capabilities, including metal and electrical discharge machining and elastomer products, and strengthens the Company's ability to support key customers. Total consideration transferred was $71,608. The acquisition was funded by $25,000 of proceeds from a draw on the 2025 DDTL and cash on hand. The Company incurred $644 in acquisition costs, which were expensed as incurred.

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**Schedule II** 

**Arxis** 

**Valuation and Qualifying Accounts** 

**For the years ended December 31, 2025, 2024 and 2023** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Balance at<br>beginning of<br>period** | **Charged to<br>costs and<br>expenses** | **Charged to<br>other<br>accounts** | **Deductions** | **Balance at<br>end of<br>period** |
|  Valuation allowance for deferred tax assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Year ended December 31, 2025 | $27388 | $7074 | $1589 | $— | $36051 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Year ended December 31, 2024 | 5731 | 12698 | 8959 |  | 27388 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Year ended December 31, 2023 | 88 | 5643 |  |  | 5731 |

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##### [**Table of Contents**](#toc)
**Report of Independent Registered Public Accounting Firm** 

To the Board of Directors of Connector TopCo, L.P.

*Opinion on the Financial Statements* 

We have audited the accompanying consolidated statements of operations, comprehensive loss, changes in members' equity, and cash flows for the period from January 1, 2024 through September 29, 2024 and for the year ended December 31, 2023, and the related notes to the consolidated financial statements (collectively, the financial statements) of Connector TopCo, L.P. (the Company). In our opinion, the financial statements referred to above present fairly, in all material respects, the results of operations of the Company and its cash flows for the period from January 1, 2024 through September 29, 2024 and for the year ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

*Basis for Opinion* 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ RSM US LLP

We have served as the Company's auditor from 2022 to 2025.

Boston, MA

November 24, 2025

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**Connector TopCo, L.P.** 

**Consolidated Statements of Operations** 

**(in thousands)** 

---

| | | |
|:---|:---|:---|
|  | **Period from**<br>**January 1,**<br>**2024 through**<br>**September 29,**<br>**2024** | **Year Ended**<br>**December 31,**<br>**2023** |
|  Revenue | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;251461 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;328769 |
|  Cost of revenue | 143814 | 203358 |
|  Gross profit | 107647 | 125411 |
|  Selling, general and administrative expenses | 35342 | 52574 |
|  Amortization of intangible assets | 32699 | 43482 |
|  Operating income | 39606 | 29355 |
|  Interest expense, net | 63791 | 84605 |
|  Other expense, net | 464 | 888 |
|  Net loss before income taxes | (24649) | (56138) |
|  Income tax benefit | (4817) | (11314) |
|  Net loss | $(19832) | $(44824) |

---

*See accompanying notes to the consolidated financial statements.* 

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**Connector TopCo, L.P.** 

**Consolidated Statements of Comprehensive Loss** 

**(in thousands)** 

---

| | | |
|:---|:---|:---|
|  | **Period from**<br>**January 1, 2024**<br>**through**<br>**September 29,**<br>**2024** | **Year Ended**<br>**December 31,**<br>**2023** |
|  Net loss | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19832) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(44824) |
|  Other comprehensive income, net of tax: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation gain | 750 | 2238 |
|  Other comprehensive income | 750 | 2238 |
|  Total comprehensive loss, net of tax | $(19082) | $(42586) |

---

*See accompanying notes to the consolidated financial statements.* 

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**Connector TopCo, L.P.** 

**Consolidated Statements of Members' Equity** 

**(in thousands)** 

---

| | |
|:---|:---|
|  | **Members'**<br>**Equity** |
|  **Balance as of January 1, 2023** | $736548 |
|  Net loss | (44824) |
|  Other comprehensive income | 2238 |
|  Issuance of members units | 8655 |
|  Share-based compensation expense | 3094 |
|  **Balance as of December 31, 2023** | $705711 |
|  Net loss | (19832) |
|  Other comprehensive income | 750 |
|  Notes receivable <sup>(a)</sup> | (7636) |
|  Share-based compensation expense | 1752 |
|  **Balance as of September 29, 2024** | $680745 |

---

*(a)* *Refer to "Note 10. Related Party Transactions" for further information on related party arrangements.* 

*See accompanying notes to the consolidated financial statements.* 

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**Connector TopCo, L.P.** 

**Consolidated Statements of Cash Flows** 

**(in thousands)** 

---

| | | |
|:---|:---|:---|
|  | **Period from**<br>**January 1,**<br>**2024 through**<br>**September 29,**<br>**2024** | **Year Ended**<br>**December 31, 2023** |
|  **Cash flow from operating activities:** |  |  |
|  Net loss | $(19832) | $(44824) |
|  Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 39718 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred financing cost and accretion of PIK interest | 3269 | 4454 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of inventory fair value adjustment |  | 2761 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset impairment charges |  | 1150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation expense | 1752 | 3094 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate cap changes in fair value | 1182 | 2169 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | (12567) | (19590) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities, net of business acquisitions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (4226) | (9545) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | (1273) | (4793) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 465 | 1561 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 274 | 2719 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other current liabilities | (2510) | (3239) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract assets and contract liabilities, net | (477) | (532) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All other assets and liabilities | 40 | 325 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other operating activities, net | (93) | 878 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) operating activities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5722 | (9419) |
|  **Cash flow from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital expenditures | (3560) | (4874) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale and disposal of assets and businesses, net of cash sold | 46 | 170 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of businesses, net of cash acquired |  | (13604) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities | (3514) | (18308) |
|  **Cash flow from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance of debt | 19000 | 27700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayments of debt | (8455) | (9213) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments of debt financing fees | (443) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuances of related party notes receivables | (7500) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of interest rate cap |  | (3690) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance of member units |  | 8592 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by financing activities | 2602 | 23389 |
|  Effect of exchange rate changes on cash and cash equivalents | 299 | 632 |
|  Net increase (decrease) in cash and cash equivalents | 5109 | (3706) |
|  Cash and cash equivalents, beginning of period | 13654 | 17360 |
|  Cash and cash equivalents, end of period | $18763 | $13654 |
|  **Supplemental disclosures of cash flow information:** |  |  |
|  Cash paid for taxes | $8739 | $9542 |
|  Cash paid for interest | 58971 | 65521 |
|  **Supplemental schedule of non-cash investing activities:** |  |  |
|  Equity rollover in connection with acquisition of businesses | $— | $(130) |

---

*See accompanying notes to the consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Notes to Connector TopCo, L.P. Consolidated Financial Statements** 

(in thousands, except units and where explicitly stated)

**Note 1. Organization and Nature of Operations** 

Connector TopCo, L.P., a limited partnership formed in 2022, and its wholly-owned subsidiaries (collectively, the "Company") designs, manufactures and sells highly engineered electronic components primarily used in mission-critical applications. The Company serves diverse end markets including Defense and Space, Commercial Aerospace, and Industrial Technology, and operates highly specialized manufacturing facilities globally, with a focus on domestic manufacturing.

On September 30, 2024, the equity interests of Connector TopCo, L.P. and its affiliates Arcline Engineered Polymer Topco L.P., Hawkeye TopCo L.P., and Ovation TopCo, L.P. (together the "Arxis Businesses"), were contributed to a newly-formed limited partnership series-entity, as the legal acquirer, in a reorganization which brought the Arxis Businesses under common control (the "Arxis Businesses Transaction"). A series-entity is a business structure dividing assets and liabilities amongst the individual Arxis Businesses, under a single master fund. Each of these series are insulated from others until such point that the businesses are formally contributed which has not occurred. The Arxis Businesses Transaction changed investors' economic interests and ownership structure, which is accounted for as a business combination within the scope of ASC 805, *Business Combinations* ("ASC 805") as of September 30, 2024.

**Note 2. Summary of Significant Accounting Policies** 

**Basis of Presentation** 

The accompanying consolidated financial statements cover the period from January 1, 2024 through September 29, 2024 and for the year ended December 31, 2023. The Company is a predecessor, as defined in applicable rules and regulations of the Securities and Exchange Commission, to the Arxis Businesses.

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and reflect the Company's accounts and operations and those of its subsidiaries in which it has a controlling financial interest. All significant intercompany accounts and transactions have been eliminated in consolidation.

**Use of Estimates** 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reported periods. Actual results may differ from these estimates. Significant estimates and assumptions include those related to the carrying amount of property, plant and equipment, goodwill and other intangible assets, fair value of assets acquired, the allowance for credit losses, the valuation of inventories, income taxes including valuation allowances on deferred tax assets and share-based compensation.

Estimates are based on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances.

**Revenue Recognition** 

The Company recognizes revenue using the five-step model prescribed in ASC 606, *Revenue from Contracts with Customers* ("ASC 606"). The Company generates revenue primarily from the design, manufacture, and sale of highly engineered electronic components used in mission-critical, harsh-environment applications, as well as related repair and overhaul services. Revenue is recognized from the sale of products or services when obligations under the terms of the contract are satisfied and control of promised goods or services has transferred

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**Notes to Connector TopCo, L.P. Consolidated Financial Statements** 

(in thousands, except units and where explicitly stated)

to the customer. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services. Revenue is measured at the amount of consideration the Company expects to be paid in exchange for goods or services.

A contract exists when the parties have approved the arrangement, rights and payment terms are identified, the contract has commercial substance, and collection of consideration is probable. Performance obligations are identified based on distinct goods or services promised to the customer.

A majority of the Company's revenue is recognized at a point in time. The Company typically sells electronic components based on a customer purchase order, which generally includes a fixed price per unit. The Company satisfies the performance obligations generally upon shipment of the goods to the customer or delivery, depending on contractual terms, as this is when control transfers to the customer.

If a contract contains multiple performance obligations, the transaction price is allocated on a relative standalone selling price basis. Standalone selling price is determined using observable prices where available or estimated based on market conditions and internally approved pricing guidelines.

For certain contracts, revenue is recognized over time because control transfers continuously to the customer, or the products have no alternative use and contractual termination clauses entitle the Company to payment plus a reasonable profit for performance completed to date. For contracts with contractors of the U.S. Government, lien rights give the customer control over the work-in-progress as costs are incurred.

Based on our production cycle, it is generally expected that goods related to the revenue will be manufactured, shipped and billed within twelve months of the customer purchase order. Progress toward completion is generally measured using the cost-to-cost method, which best depicts the transfer of control to the customer. The Company estimates the amount of revenue attributable to a contract earned at a given point based on certain costs plus the expected profit. Costs include direct labor, materials, subcontractor costs, and other allocable expenses. Estimates of total contract costs require significant judgment due to program complexity, availability of materials and labor, and technical risks. The Company performs reviews and reflects adjustments to revenue and margin in the period changes occur. These adjustments, as well as any provisions for anticipated losses, apply only to contracts recognized over time. Provisions for anticipated losses on contracts are recorded when identified.

Revenue is recognized over time as work is performed, measured by costs incurred relative to total estimated costs, or at a point in time upon completion of service, depending on the nature of the arrangement.

Certain contracts include variable amounts such as award fees, incentive fees, penalties, or other adjustments. Variable consideration is included in the estimated transaction price when there is a basis to reasonably estimate the amount, including whether the estimate should be constrained based on determination of whether it is probable a significant reversal of revenue in a future period could occur. These estimates require judgment and consider historical performance, contractual terms, and expected outcomes.

Contract modifications are assessed to determine whether they create new, or change existing, enforceable rights and obligations. Modifications for goods or services that are not distinct are accounted for as part of the existing contract, with cumulative catch-up adjustments to revenue recorded as appropriate. Modifications for distinct goods or services are treated as separate contracts.

In the normal course of business, the Company does not accept product returns unless the items are defective as manufactured. In addition, the Company does not typically provide customers with the right to a refund. The

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**Notes to Connector TopCo, L.P. Consolidated Financial Statements** 

(in thousands, except units and where explicitly stated)

Company establishes provisions for estimated returns due to defective products and warranties as required. Some products are covered by a standard assurance warranty, which promises that delivered products conform to contract specifications. The warranty periods typically extend for a limited duration following transfer of control of the product. The Company does not sell extended warranties and does not provide warranties outside of fixing defects that existed at the time of sale. As such, warranties are accounted for under ASC 460, *Guarantees* and not as a separate performance obligation.

Customers generally have payment terms between 30 and 60 days from the satisfaction of the performance obligations. The Company's contracts with customers generally do not include significant financing components or non-cash consideration.

The Company has elected the following practical expedients and policy elections allowable under ASC 606:

• The Company elected to exclude from its transaction price any amounts collected from customers for all sales
taxes.

• The Company elected to account for shipping and handling activities as fulfillment costs rather than as a
separate performance obligation. Shipping and handling costs incurred are included within Cost of revenue in the Consolidated Statements of Operations. Amounts billed to a customer related to shipping and handling are included within Revenue in the
Consolidated Statements of Operations.

• The Company elected to not disclose remaining performance obligations with an original expected duration of one
year or less.

• The Company recognizes the incremental costs of obtaining a contract as an expense when incurred if the
amortization period of the asset is one year or less.

**Research and Development Costs** 

The Company expenses research and development costs as incurred. Research and development costs were $566 and $1,168 for the period from January 1, 2024 through September 29, 2024 and the year ended December 31, 2023, respectively, and are recorded within Selling, general and administrative expenses in the Consolidated Statements of Operations.

**Cash and Cash Equivalents** 

Cash and cash equivalents include cash and liquid investments with original maturities of three months or less. The carrying amounts approximate fair value due to the high liquidity and short maturity of these instruments.

**Accounts Receivable** 

Accounts receivable primarily consist of trade accounts receivable from third party customers. The amounts due are stated net of an allowance for credit losses. The allowance for credit losses is based on historical losses, current economic conditions, geographic considerations, and in some cases, evaluating specific customer accounts for risk of loss. All provisions for allowances for credit losses are included in Selling, general and administrative expenses in the Consolidated Statements of Operations.

**Inventories** 

Inventory is reported at the lower of cost using the first-in, first-out or net realizable value. Net realizable value adjustments for slow-moving and obsolete inventories are provided based on current assessments about future product demand and production requirements.

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**Notes to Connector TopCo, L.P. Consolidated Financial Statements** 

(in thousands, except units and where explicitly stated)

**Property, Plant and Equipment** 

Property, plant and equipment is recorded at cost. Depreciation is computed primarily on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives are as follows: buildings of 36 years, leasehold improvements, the shorter of the lease term or the estimated useful life from one to 8 years; and machinery, equipment and furniture and fixtures from one to 14 years. At the time of retirement or disposal, the acquisition cost of the asset and related accumulated depreciation are eliminated and any gain or loss is credited to or charged against operations. Maintenance and repairs are expensed as incurred; costs of major additions and betterments are capitalized. Depreciation expense was $7,019 and $10,511 for the period from January 1, 2024 through September 29, 2024 and the year ended December 31, 2023, respectively.

**Leases** 

The Company evaluates whether a contract contains a lease at the inception of such contract. Specifically, the Company considers whether it controls the underlying asset and has the right to obtain substantially all the economic benefits or outputs of the asset. At lease commencement, the Company records a lease liability and corresponding right-of-use ("ROU") asset. Options to extend or terminate the lease are included as part of the ROU asset and lease liability when it is reasonably certain the Company will exercise the option.

Lease liabilities are recognized at commencement based on the present value of the unpaid lease payments over the lease term. The initial measurement of the ROU asset is equal to the total of the initial measurement of the lease liability, incremental costs to obtain the lease and prepaid lease payments, less any lease incentives received. The Company uses the discount rate implicit in a lease contract, if available. As most of the Company's leases do not provide an implicit rate, the present value of the lease liability is determined using the Company's incremental borrowing rate at lease commencement based on information available, including relevant industry rates.

Amortization of these ROU assets is included within either Cost of revenue or Selling, general and administrative expenses in the Consolidated Statement of Operations depending on the nature of the expense. Variable lease payments are recognized as lease expense in the period in which the obligation for those payments is incurred.

The Company elected to combine lease and non-lease components for its real estate leases. Non-lease components are generally services that the lessor performs for the Company associated with the leased asset. For leases with an initial term of 12 months or less, an ROU asset and lease liability are not recognized and lease expense is recognized on a straight-line basis over the lease term. The Company tests ROU assets whenever events or changes in circumstance indicate that the asset may be impaired.

**Finite-Lived Intangible Assets** 

Intangible assets primarily represent acquired intangible assets including customer relationships, developed technology, trademarks, and patents. The Company amortizes finite-lived intangible assets on a straight-line basis over their estimated useful life, ranging from five to 26 years. The Company routinely reviews the remaining estimated useful lives of finite-lived intangible assets. If there is a change to the estimated useful life assumption for any asset, the remaining unamortized balance is amortized prospectively over the revised estimated useful life.

Amortization expense for intangible assets was $32,699 and $43,482 for the period from January 1, 2024 through September 29, 2024 and the year ended December 31, 2023, respectively.

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**Notes to Connector TopCo, L.P. Consolidated Financial Statements** 

(in thousands, except units and where explicitly stated)

**Impairment of Long-Lived Assets** 

Long-lived assets, such as property, plant and equipment and finite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset or asset group to the carrying value of the asset or asset group. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. There were no impairments of long-lived assets during the period from January 1, 2024 through September 29, 2024. During the year ended December 31, 2023, the Company recorded a $1,150 impairment on one of its lease contracts for a building the Company no longer expects to use. The impairment is included within Selling, general and administrative expenses in the Consolidated Statements of Operations.

**Business Combinations** 

The Company accounts for business combinations under ASC 805 using the acquisition method of accounting to allocate costs of acquired businesses to the identifiable assets acquired (including intangible assets) and liabilities assumed based on their estimated fair values at the dates of acquisition*.* The total purchase consideration is generally measured as the fair value of the cash or non-cash assets transferred and equity instruments issued at the acquisition date. The Company recognizes goodwill if the fair value of the total purchase consideration is in excess of the fair value of the identifiable assets acquired net of liabilities assumed. The valuations of the assets acquired and liabilities assumed will impact future operating results. Determining the fair value of assets acquired and liabilities assumed requires management's judgment and often involves the use of estimates and assumptions which may be significant, including assumptions with respect to future cash inflows and outflows, revenue growth rates and EBITDA margins, discount rates, and market multiples, among other items.

Fair value adjustments to the Company's assets and liabilities are recognized and the results of operations of the acquired business are included within the consolidated financial statements from the effective date of the merger or acquisition. Costs incurred by the Company that are directly attributable to the acquisition are expensed within Selling, general and administrative expenses in the Consolidated Statements of Operations.

**Goodwill and Other Intangible Assets** 

The Company does not amortize goodwill or intangible assets that are deemed to have indefinite useful lives. The Company reviews these assets at least annually for impairment on the first day of the fourth quarter. Additionally, goodwill is also reviewed for possible impairment whenever changes in circumstances indicate that the fair value of a reporting unit is more likely than not below its carrying value.

The Company first assesses qualitative factors to determine whether events and circumstances indicate that it is necessary to perform a quantitative goodwill impairment test. In the quantitative goodwill impairment test, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. Fair value of the reporting unit is determined using an income or market approach based on estimates of cash flows for each reporting unit, with those cash flows discounted to present value using rates commensurate with the risks associated with those cash flows. No impairment charge was recorded for the period from January 1, 2024 through September 29, 2024 or the year ended December 31, 2023.

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**Notes to Connector TopCo, L.P. Consolidated Financial Statements** 

(in thousands, except units and where explicitly stated)

**Debt** 

Debt issuance costs represent legal and other direct costs related to the Company's debt. Debt issuance costs are amortized to Interest expense, net in the Consolidated Statements of Operations using the effective interest method through maturity date of the instrument.

**Fair Value Measurements and Financial Instruments** 

The Company measures certain assets and liabilities at fair value in accordance with ASC 820, *Fair Value Measurement* ("ASC 820"), which establishes a framework for measuring fair value and a fair value hierarchy based on the observability of inputs. The fair value hierarchy is as follows: Level 1 – Quoted prices for identical assets or liabilities in active markets; Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be derived from or corroborated by observable market data or by correlation or other means; and Level 3 – Significant unobservable inputs that reflect the Company's best estimate of fair value from the perspective of a market participant.

<u>Interest Rate Caps</u> 

The Company uses interest rate caps to limit exposure to variability in cash flows on certain floating-rate debt instruments should interest rates rise above a certain level. Interest rate caps have been designated by the Company as an economic hedge rather than an accounting hedge. Interest rate caps are recognized at fair value every reporting period. The changes in the fair value of the interest rate caps are reported as a component of Interest expense, net in the Consolidated Statements of Operations. Fair value of the interest rate caps is calculated using Level 2 inputs. See "Note 6. Debt" for further information.

**Concentrations of Risk** 

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of trade accounts receivable. The carrying amounts of these items, as well as trade accounts payable, approximate fair value due to the short-term maturity of these instruments.

The Company maintains its cash in bank accounts that, at times, exceeds federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk regarding cash. The Company's three largest customers accounted for approximately 36% and 35% of revenue for the period from January 1, 2024 through September 29, 2024 and the year ended December 31, 2023, respectively.

**Income Taxes** 

Income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss, capital loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company elected to account for the tax effects of the global intangible low tax income provision as a current period expense. In addition, the Company releases the income tax effects of items recorded in AOCI using the aggregate portfolio approach.

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**Notes to Connector TopCo, L.P. Consolidated Financial Statements** 

(in thousands, except units and where explicitly stated)

The Company records a benefit for uncertain tax positions in the financial statements only when it determines it is more likely than not that such a position will be sustained upon examination by taxing authorities based on the technical merits of the position. Unrecognized tax benefits represent the difference between the position taken in the tax return and the benefit reflected in the financial statements.

**Equity-Based Compensation** 

The Company accounts for share-based compensation in accordance with ASC 718, *Compensation-Stock Compensation* ("ASC 718"), including certain receivables due from related parties, where recourse exists to the equity interests of the executive. The Company measures share-based awards at their grant date fair value and recognizes compensation expense over their requisite service period. Award forfeitures are accounted for as incurred at the time of the forfeiture. The fair value of each award is estimated on the date of grant using the Black-Scholes-Merton ("BSM") option-pricing model. A number of assumptions are used to determine the fair value of awards granted. These include expected term, dividend yield, volatility of the awards and the risk-free interest rate. The Company has classified share-based compensation primarily within Selling, general and administrative expenses to correspond with the classification of employees that receive awards. See "Note 9. Members' Equity" for further information.

**Defined Contribution Plans** 

The Company sponsors defined contribution plans covering the majority of its employees. Company contributions vary depending on the date of hire, with the majority of employees being eligible for employer matching employee contributions. Employer contributions to the defined contribution plans were approximately $1,597 and $2,019 for the period from January 1, 2024 through September 29, 2024 and the year ended December 31, 2023, respectively.

**Loss Contingencies** 

The Company is subject to environmental regulation by federal, state, and local authorities in the United States and regulatory authorities with jurisdiction over its foreign operations. When the Company becomes aware of environmental risk, it performs a site study to ascertain the potential magnitude of contamination and the estimated cost of investigation and remediation. Environmental costs are accrued when it is probable that a liability has been incurred, and the amount can be reasonably estimated. If there is any change in the cost and/or timing of investigation and the remediation, the accrual is adjusted accordingly.

At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses as incurred the costs related to such legal proceedings. The Company had not recognized any loss contingencies in the consolidated financial statements during the periods presented.

**Foreign Currency Translation** 

The Company has certain operations outside the United States that prepare financial statements in currencies other than the U.S. dollar. For these operations, results of operations and cash flows are translated using the average exchange rate throughout the period. Assets and liabilities are generally translated at end of period rates. The gains and losses associated with these translation adjustments are included in Other comprehensive income within Members' equity.

Gains and losses resulting from foreign currency transactions are included within Other expense, net in the Consolidated Statements of Operations. The Company recognized $626 and $669 in net foreign currency losses during the period from January 1, 2024 through September 29, 2024 and the year ended December 31, 2023, respectively.

------

##### [**Table of Contents**](#toc)
**Notes to Connector TopCo, L.P. Consolidated Financial Statements** 

(in thousands, except units and where explicitly stated)

**Recently Adopted Accounting Pronouncements** 

In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures"*,* which requires disclosure of the title and position of the Chief Operating Decision Maker ("CODM"), an explanation of how the CODM uses the reported measure of segment profit or loss in assessing segment performance and deciding how to allocate resources, and disclosure of significant expenses regularly provided to the CODM that are included within the reported measure of segment profit or loss. The amendments of ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company adopted this standard retrospectively to all prior periods presented in the consolidated financial statements.

In October 2021, the FASB issued ASU 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers", which improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized by the acquirer. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted this standard in 2023 on a prospective basis and the adoption of this accounting pronouncement did not have a material effect on the consolidated financial statements.

**Recent Accounting Pronouncements Yet to be Adopted** 

In November 2024, the FASB issued ASU 2024-03, "Income Statement (Topic 220): Disaggregation of Income Statement Expenses"*,* which requires additional disclosures of certain amounts included in the expense captions presented on a company's income statement as well as disclosures about selling expenses. The ASU is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, and early adoption is permitted. The Company is currently evaluating the impacts of adopting this guidance on its financial statement disclosures.

In March 2024, the FASB issued ASU 2024-01, "Compensation – Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards"*,* which clarifies how an entity determines whether a profits interest or similar award is within the scope of ASC 718, "Stock Compensation". It applies to all entities that account for profit interest awards as compensation to employees or non-employees in return for goods or services. The amendments in this update are effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods. Management does not believe the adoption of ASU 2024-01 will have a material impact on the accompanying financial statements and disclosures.

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures"*,* to enhance the transparency and decision usefulness of income tax disclosures primarily related to the tax rate reconciliation and income taxes paid information. The amendments in this ASU are effective for annual periods beginning after December 15, 2024. The amendments should be applied on a prospective basis. Early adoption and retrospective application are permitted. Management does not believe the adoption of ASU 2023-09 will have a material impact on the accompanying financial statements and disclosures.

**Note 3. Business Combinations** 

On March 7, 2023, the Company entered into a transaction to acquire 100% equity interest in Legacy Technologies, LLC ("Legacy"), which designs and manufactures glass to metal hermetic seal connectors and hi-reliability quartz crystal holders (the "LTI Acquisition"). In addition to other factors, the acquisition was completed to expand and complement the markets served by the Company.

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##### [**Table of Contents**](#toc)
**Notes to Connector TopCo, L.P. Consolidated Financial Statements** 

(in thousands, except units and where explicitly stated)

The total consideration was funded by debt proceeds of $6,445, rollover equity of $65 and cash of approximately $8,537. There was an additional $570 of transaction and debt issuance costs funded by debt proceeds. The Company accounted for the LTI Acquisition using the acquisition method of accounting, which requires, among other things, assets acquired and liabilities assumed to be recognized at their estimated fair values as of the acquisition date.

The following table summarizes the purchase price allocation to the underlying assets acquired and liabilities assumed based on their fair values at the acquisition date:

---

| | |
|:---|:---|
|  | **Estimated Fair Value** |
|  Cash and cash equivalents | $1378 |
|  Accounts receivable | 1157 |
|  Inventories | 2523 |
|  Prepaid expenses and other current assets | 67 |
|  Property, plant and equipment | 642 |
|  Intangible assets | 8800 |
|  Goodwill | 2068 |
|  Operating lease right-of-use assets | 925 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets acquired | 17560 |
|  Accounts payable | 124 |
|  Operating lease liabilities, current | 151 |
|  Accrued expenses and other current liabilities | 1464 |
|  Operating lease liabilities, noncurrent | 774 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities assumed | 2513 |
|  Net assets and liabilities | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15047 |

---

The excess of the consideration over the fair value of the net assets acquired was allocated to goodwill. Goodwill was primarily attributable to synergies and economies of scale expected from combining the operations of the Company and Legacy. The goodwill recognized was tax deductible.

Transaction expenses paid by the Company in connection with the LTI Acquisition amounted to $466 for the year ended December 31, 2023 and are included within Selling, general and administrative expenses in the Consolidated Statements of Operations.

**Note 4. Revenue** 

The Company disaggregates revenue based on the method of measuring satisfaction of the performance obligation either at a point in time or over time. Additionally, the Company disaggregates revenue based on the end market where products and services are transferred to the customer. The Company's principal operating segment and related revenue is discussed in "Note 5. Segment Information."

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##### [**Table of Contents**](#toc)
**Notes to Connector TopCo, L.P. Consolidated Financial Statements** 

(in thousands, except units and where explicitly stated)

**Disaggregation of Revenue** 

Disaggregated revenue satisfied at a point in time and over time was as follows:

---

| | | |
|:---|:---|:---|
|  | **Period from<br>January 1,**<br>**2024 through<br>September 29,<br>2024** | **Year Ended<br>December 31,<br>2023** |
|  Satisfied at a point in time | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;227721 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;301069 |
|  Satisfied over time | 23740 | 27700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | $251461 | $328769 |

---

Disaggregated revenue by end market was as follows:

---

| | | |
|:---|:---|:---|
|  | **Period from<br>January 1,**<br>**2024 through<br>September 29,<br>2024** | **Year Ended<br>December 31,<br>2023** |
|  Defense and Space | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;168959 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;216009 |
|  Industrial Technology | 79821 | 110264 |
|  Commercial Aerospace | 2681 | 2496 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | $251461 | $328769 |

---

**Revenue by Geography** 

Revenue from external customers by geographic area based on the location of the customer was as follows:

---

| | | |
|:---|:---|:---|
|  | **Period from<br>January 1,**<br>**2024 through<br>September 29,<br>2024** | **Year Ended<br>December 31,<br>2023** |
|  United States | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;200117 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;262822 |
|  All other countries | 51344 | 65947 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | $251461 | $328769 |

---

**Note 5. Segment Information** 

The Company has one reportable segment. The Company's segment reporting structure is consistent with how the CODM reviews the business, makes investing and resource decisions and assesses operating performance.

The Company's CODM is its Chief Executive Officer. The CODM evaluates segment performance and allocates resources to it based on segment earnings before interest, taxes, depreciation and amortization adjusted for other non-cash or non-recurring items ("Segment Adjusted EBITDA") that management believes are not reflective of the Company's ongoing core operations. The CODM uses Segment Adjusted EBITDA to evaluate operating performance, review and assess the performance of the management team in connection with employee incentive programs and to prepare its annual budget and financial projections. The Company defines Segment Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, adjusted for certain non-core,

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##### [**Table of Contents**](#toc)
**Notes to Connector TopCo, L.P. Consolidated Financial Statements** 

(in thousands, except units and where explicitly stated)

non-operating, non-recurring, or non-cash items, including transaction and other deal related expenses, acquisition and integration costs, restructuring costs for restructuring programs, refinancing costs, and non-cash share-based compensation expenses. In addition, the CODM receives Cost of revenue, Selling, general and administrative expenses, Capital expenditures, and assets of its segment regularly to monitor cash flow and asset needs.

The following table provides a reconciliation of the Company's Segment Adjusted EBITDA to Net loss before income taxes:

---

| | | |
|:---|:---|:---|
|  | **Period from<br>January 1,**<br>**2024 through<br>September 29,<br>2024** | **Year Ended<br>December 31,<br>2023** |
|  Revenue | $251461 | $328769 |
|  Significant segment expenses: |  |  |
|  Segment cost of revenue <sup>(1)</sup>  | 138536 | 192417 |
|  Segment selling, general and administrative expenses <sup>(2)</sup>  | 30249 | 39280 |
|  Other segment items <sup>(3)</sup>  | 464 | 888 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Segment Adjusted EBITDA | 82212 | 96184 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | 63791 | 84605 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 39718 | 53993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition and integration costs | 556 | 4685 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring costs | 1079 | 3196 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction and other deal related expenses |  | 1430 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation expense | 1752 | 3094 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Refinancing costs | 47 | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-recurring adjustments | (82) | 1256 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss before income taxes | $(24649) | $(56138) |

---

(1) Represents cost of revenue adjusted to exclude depreciation and amortization.

(2) Represents selling, general and administrative expenses adjusted to exclude depreciation, transaction and other
deal related expenses, acquisition and integration costs, restructuring related costs and non-cash share-based compensation expense.

(3) Represents other income and expense.

**Note 6. Debt** 

**Credit Facility** 

In November 2022, the Company entered into a credit agreement ("Credit Facility"), which consisted of a $606,000 term loan due November 2, 2029, a delayed draw term loan ("DDTL") with a borrowing capacity of $159,000 due November 2, 2029 and a revolving line of credit with a borrowing capacity of $60,000 ("Revolver"). The Credit Facility is secured by substantially all the assets of Connector TopCo, L.P. and its subsidiaries and contains various financial and non-financial covenants.

The term loan requires principal payments of 1.0% per annum of the original principal balance with the remaining balance due November 2, 2029. Interest rates on the Credit Agreement are 7% plus SOFR for the term loan and delayed draw term loan and 3.5% plus SOFR for the revolving line of credit. The effective interest rate was 11.5% for September 29, 2024.

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##### [**Table of Contents**](#toc)
**Notes to Connector TopCo, L.P. Consolidated Financial Statements** 

(in thousands, except units and where explicitly stated)

In February 2023, in connection with the LTI Acquisition (see "Note 3. Business Combinations") the Company drew $7,000 on the DDTL.

In June 2024, the Company entered into an amendment to the Credit Facility whereby the Company increased the revolving line of credit borrowing by $35,000 to $95,000. Commitment fees totaled $1,353 and $1,700 for the period from January 1, 2024 through September 29, 2024 and the year ended December 31, 2023, respectively, and are included within Interest expense, net in the Consolidated Statements of Operations.

**Interest Rate Caps** 

In January 2023, the Company entered into an interest rate cap agreement as an economic hedge to the Company's floating rate debt agreement, described above. The interest rate cap has a cap rate of 5.0% and notional amount of $448,819 as of September 29, 2024. In May 2023, the Company amended and restated that agreement. The agreement has a termination date of February 2, 2026. For the period from January 1, 2024 through September 29, 2024, and the year ended December 31, 2023, the Company recorded a loss of $1,182 and $2,169, respectively, due to the change in fair value of the interest rate cap, which is included within Interest expense, net in the Consolidated Statements of Operations.

**Note 7. Leases** 

The Company's operating leases consist of rent commitments under various leases for office space, warehouses, land and buildings. The terms of most of these leases are in the range of three to eight years. Certain of the Company's leases include one or more options to extend the lease for periods ranging from one to ten years.

The components of lease cost were as follows:

---

| | | |
|:---|:---|:---|
|  | **Period from<br>January 1,<br>2024 through<br>September 29,<br>2024** | **Year Ended<br>December 31,<br>2023** |
|  Operating lease cost | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3684 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4889 |
|  Variable lease cost | 246 | 764 |
|  Total lease expense | $3930 | $5653 |

---

Supplemental consolidated cash flow information related to leases for the periods presented were as follows:

---

| | | |
|:---|:---|:---|
|  | **Period from<br>January 1,**<br>**2024 through<br>September 29,<br>2024** | **Year Ended<br>December 31,<br>2023** |
|  Cash paid for amounts included in measurement of operating lease liabilities | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3765 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4769 |
|  ROU assets obtained in exchange for operating lease liabilities | $1740 | $1364 |

---

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##### [**Table of Contents**](#toc)
**Notes to Connector TopCo, L.P. Consolidated Financial Statements** 

(in thousands, except units and where explicitly stated)

**Note 8. Income Taxes** 

The components of net loss before income taxes were as follows:

---

| | | |
|:---|:---|:---|
|  | **Period from<br>January 1,<br>2024 through<br>September 29,<br>2024** | **Year Ended<br>December 31,<br>2023** |
|  Domestic operations | $(33781) | $(63351) |
|  Foreign operations | 9132 | 7213 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss before income taxes | $(24649) | $(56138) |

---

The components of income tax benefit were as follows:

---

| | | |
|:---|:---|:---|
|  | **Period from<br>January 1,<br>2024 through<br>September 29,<br>2024** | **Year Ended<br>December 31,<br>2023** |
|  Current: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | $3857 | $3117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | 1650 | 1743 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign | 2329 | 3416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current | 7836 | 8276 |
|  Deferred: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | (10792) | (16580) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | (1732) | (2644) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign | (129) | (366) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deferred | (12653) | (19590) |
|  Income tax benefit | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4817) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11314) |

---

The following table details how income tax expense (benefit) differs from that computed at the federal statutory corporate tax rate:

---

| | | |
|:---|:---|:---|
|  | **Period from<br>January 1,<br>2024 through<br>September 29,<br>2024** | **Year Ended<br>December 31,<br>2023** |
|  Income tax at federal statutory rate | $(5176) | $(11789) |
|  Increases (decreases) in tax resulting from: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign rate differential | 432 | 1570 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State, net of federal benefit | (183) | (1267) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. impact of double taxation on foreign branches | 1918 | 1515 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign tax credit | (1937) | (2438) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 129 | 1095 |
|  Income tax benefit | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4817) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11314) |

---

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##### [**Table of Contents**](#toc)
**Notes to Connector TopCo, L.P. Consolidated Financial Statements** 

(in thousands, except units and where explicitly stated)

The effective tax rate was 19.5% and 20.2%, for the period from January 1, 2024 through September 29, 2024 and the year ended December 31, 2023, respectively. For the period from January 1, 2024 through September 29, 2024, and year ended December 31, 2023, the Company's effective tax rate differed from the United States federal statutory rate of 21% primarily due to state taxes, foreign tax credits, and U.S. impact of double taxation of foreign branches.

A valuation allowance is required to be established unless it is determined it is more likely than not that the Company will ultimately utilize the tax benefit associated with a deferred tax asset. Valuation allowances increased by $241 and was nil for the period from January 1, 2024 through September 29, 2024 and the year ended December 31, 2023, respectively. As of September 29, 2024, the Company had no federal and state valuation allowances and $241 of foreign valuation allowances. As of December 31, 2023, the Company had no federal and state valuation allowances and no foreign valuation allowances.

The Company may be audited by the Internal Revenue Service, various state tax authorities, and other foreign jurisdictions for varying periods, but generally back to and including 2017. Disputes may arise with these tax authorities involving issues of the timing and amount of deductions and allocations of income and expenses among various tax jurisdictions because of differing interpretations of tax laws and regulations. The Company evaluates its exposures associated with the tax filing positions and, while it believes its positions comply with applicable laws, may record liabilities based upon estimates of the ultimate outcome of these matters and the guidance provided in ASC 740. The Company has not recorded any unrecognized tax benefits during the period from January 1, 2024 to September 29, 2024 or the year ended December 31, 2023.

**Note 9. Members' Equity** 

The Company's outstanding units consist of Class A-1 Units and Class A-2 Units (collectively, "Class A Units"), Class B Units (incentive units), and Growth Participation Units (equivalent Class B Units). Class A Units are considered preferred units and have one vote per unit. In the event of distributions, liquidation, dissolution or winding up of the Company, the holders of Class A Units have preference to any distribution over the holders of any other units whereby the Class A Unit holders are entitled to receive an amount equal to their original investments.

As of September 29, 2024, the Company had 76,013,579 Class A Units issued and outstanding and 6,958,670 Class B Units have been reserved for issuance under the equity-based compensation plans available to certain employees and non-employee service providers.

**Management Equity Plan** 

The Company established the Management Equity Plan ("ME Plan") under which the Board of Directors has the authority to grant Management Incentive Units ("MIUs"). The ME Plan was established to provide the participants incentive compensation via an equity award of Class B Units. The awards are intended to be "profits interests" under IRS regulations.

Once vested, each MIU provides the holder with a right to share in the distribution preferences of the Company once the Class A Unit holders have received cumulative distributions greater than a predetermined participation threshold. Certain MIUs are subject to time vesting, ratably over a defined term (the "time-based vesting MIUs"). The remaining MIUs vest only upon the occurrence of a liquidity event and the Company's investors realizing a return based upon a multiple of their original investment (the "performance-based vesting MIUs"). For these MIUs, in order to be eligible for distributions both time and performance vesting conditions must be met.

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##### [**Table of Contents**](#toc)
**Notes to Connector TopCo, L.P. Consolidated Financial Statements** 

(in thousands, except units and where explicitly stated)

The MIUs have been accounted for as an equity award under ASC 718. Compensation cost is recognized over the service condition period for the time-vesting tranche or when it is probable that the performance condition will be met for the performance-vesting tranche.

The following table summarizes the MIU activity:

---

| | | |
|:---|:---|:---|
|  | **Units** | **Weighted-<br>average grant<br>date fair value** |
|  Unvested MIUs as of January 1, 2023 | 1097982 | $1.56 |
|  Granted | 4825557 | 2.84 |
|  Vested | (721031) | 4.28 |
|  Forfeited | (20000) | 3.02 |
|  Unvested MIUs as of December 31, 2023 | 5182508 | $2.37 |
|  Granted | 400000 | 2.78 |
|  Vested | (697031) | 2.67 |
|  Forfeited | (22500) | 3.27 |
|  Unvested MIUs as of September 29, 2024 | 4862977 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.35 |

---

The Company utilizes BSM option-pricing model to estimate the grant date fair value of the MIUs. Key assumptions in the ME Plan described above used in the determination of the grant date fair value are summarized as follows:

---

| | |
|:---|:---|
|  Expected annual dividend | 0.0% |
|  Expected volatility rate | 34% - 55% |
|  Risk-free rate of return | 2.7% - 4.3% |
|  Expected term (years) | 4.5 - 5.0 |
|  Discount for lack of marketability | 27.4% - 31.8% |

---

The risk-free interest rates used are based upon the 5-year U.S. treasury rate. Expected volatility is based upon historical volatility for publicly traded companies in the same industry sector as the Company. Expected term represents the period of time that MIUs are expected to be outstanding.

For the period from January 1, 2024 through September 29, 2024 and the year ended December 31, 2023, the Company recognized $1,752 and $3,094, respectively, in stock-based compensation expense related to time-based MIUs. No expense was recognized for performance-based MIUs as the performance condition was not deemed probable for the period from January 1, 2024 through September 29, 2024 or the year ended December 31, 2023.

**Growth Participation Plan** 

During 2023, the Company established the Growth Participation Plan (the "GP Plan") under which the Board of Directors has the authority to grant Growth Participation Units ("GPUs") to employees. The GPUs expire on the earlier of the employee's termination or the tenth anniversary of the grant date. Ten GPUs are equivalent to one Class B Unit. Each GPU provides the holder with a right to receive cash distributions upon a liquidity event once the Class A Unit holders have received cumulative distributions equal to or greater than two times their original capital contributions. The GPUs have been accounted for as an equity award under ASC 718. Compensation cost

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##### [**Table of Contents**](#toc)
**Notes to Connector TopCo, L.P. Consolidated Financial Statements** 

(in thousands, except units and where explicitly stated)

is only recognized when it is probable that the vesting conditions will be met. Compensation expense has not been recognized for the period from January 1, 2024 through September 29, 2024 or the year ended December 31, 2023.

The following table summarizes the GPU activity:

---

| | | |
|:---|:---|:---|
|  | **Units** | **Weighted-average<br>grant date fair<br>value** |
|  Unvested GPUs as of January 1, 2023 |  | $— |
|  Granted | 27155000 | 0.28 |
|  Vested |  |  |
|  Forfeited |  |  |
|  Unvested GPUs as of December 31, 2023 | 27155000 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.28 |
|  Granted | 6164000 | 0.28 |
|  Vested |  |  |
|  Forfeited | (3265000) | 0.28 |
|  Unvested GPUs as of September 29, 2024 | 30054000 | $0.28 |

---

The Company utilizes the BSM option-pricing model to estimate the grant date fair value of the GPUs. Key assumptions in the GP Plan described above used in the determination of the grant date fair value are summarized as follows:

---

| | |
|:---|:---|
|  Expected annual dividend | 0.0% |
|  Expected volatility rate | 34% - 55% |
|  Risk-free rate of return | 2.7% - 4.3% |
|  Expected term (years) | 4.5 - 5.0 |
|  Discount for lack of marketability | 27.4% - 31.8% |

---

The risk-free interest rates used are based upon the 5-year US Treasury rate. Expected volatility is based upon historical volatility for publicly traded companies in the same industry sector as the Company. Expected term represents the period of time that GPUs are expected to be outstanding.

**Note 10. Related Party Transactions** 

**Consulting and Advisory Agreements** 

The Company has consulting and advisory agreements with Arcline Investment Management, L.P. ("Arcline"), an affiliate of its majority shareholder. The agreements expire upon the mutual agreement of Arcline and the Company. For the period from January 1, 2024 through September 29, 2024, the Company incurred $529 and paid $901 for advisory and consulting services and expense reimbursements. For the year ended December 31, 2023, the Company incurred $580 and paid $197 for advisory and consulting services and expense reimbursements.

**Leases** 

The Company leases certain facilities and transportation equipment from related parties. Total related party lease payments totaled approximately $1,473 and $1,608 for the period from January 1, 2024 through September 29, 2024 and the year ended December 31, 2023, respectively.

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##### [**Table of Contents**](#toc)
**Notes to Connector TopCo, L.P. Consolidated Financial Statements** 

(in thousands, except units and where explicitly stated)

**Receivables due from Related Parties** 

During the period from January 1, 2024 through September 29, 2024, the Company entered into notes receivable with certain executives of the Company totaling $7,500. The notes are interest-bearing at the long-term applicable federal rate as of the date of issuance. The notes mature in ten years from the date of issuance, or earlier under certain triggering events, with outstanding principal and interest due at that time. The notes are secured with recourse to the equity interests of the respective executive. The notes are recorded within Members' equity.

**Note 11. Subsequent Events** 

The Company evaluated events occurring after the date of the consolidated financial statements to consider whether the impact of such events needs to be reflected or disclosed in the consolidated financial statements. Such evaluation was performed through the date the consolidated financial statements are available for issuance, which was November 24, 2025.

On July 4, 2025, the President signed H.R. 1, the "One Big Beautiful Bill Act," into law. The legislation includes several changes to federal tax law that generally allow for more favorable deductibility of certain business expenses beginning in 2025, including the restoration of immediate expensing of domestic research and development expenditures, reinstatement of 100% bonus depreciation, and more favorable rules for determining the limitation on business interest expense. These changes were not reflected in the income tax provision for the period ended December 31, 2024, as enactment occurred after the balance sheet date. The Company is in the process of evaluating the impacts, if any, on its financial statements in future periods.

<u>Credit Agreement</u> 

On February 26, 2025, the Company entered into a credit agreement (the "2025 Credit Agreement") refinancing its outstanding Credit Agreement. The Company entered into the 2025 Credit Agreement with co-borrowers of Integrated Polymer Solutions, Inc., Quantic Corporate Holdings, Inc., Qnnect, LLC, and Kaman Corporation which are related parties. The 2025 Credit Agreement includes an aggregate term loan of $2,650,000 with a maturity date of February 26, 2032 and an aggregate revolving credit facility of $400,000 with a maturity date of February 26, 2030. Under the terms of the 2025 Credit Agreement, the Company also has available $250,000 delayed draw commitments for future acquisitions and funding general corporate needs. The Company incurred costs of $10,253 in connection with the debt refinancing. The proceeds from the 2025 Credit Agreement term loan were used to repay all the third-party debt.

The term loan is due and payable in quarterly principal and interest payments and is adjusted based on new advances and the applicable interest rate. The Company's initial principal payment was due on September 30, 2025. The 2025 Credit Agreement bears interest at SOFR or a base rate, as defined and at the Company's election, plus an applicable interest rate. Interest is payable quarterly and the first payment was due on May 31, 2025. The 2025 Credit Agreement includes financial covenants effective beginning June 30, 2025.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Shares**![LOGO](g81728g03a01.jpg)

**Class A Common Stock** 

**Preliminary Prospectus** 

***Joint Bookrunning Managers***

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| | | |
|:---|:---|:---|
| **Goldman Sachs & Co. LLC\*** | **Morgan Stanley\*** | **Jefferies** |

---

***\* listed in alphabetical order***

***Joint Bookrunners***

---

| | |
|:---|:---|
| **Citigroup** | **RBC Capital Markets** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Baird** | **Guggenheim Securities** | **Wells Fargo Securities** | **William Blair** |

---

---

| | |
|:---|:---|
| **Rothschild & Co** | **Wolfe \| Nomura Alliance** |

---

***Co-Manager***

**Citizens Capital Markets** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**, 2026** 

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##### [**Table of Contents**](#toc)
**PART II** 

**INFORMATION NOT REQUIRED IN THE PROSPECTUS** 

**Item 13.** **Other Expenses of Issuance and Distribution** <br>

Estimated expenses, other than underwriting discounts and commissions, of this offering and the Reorganization are as follows:

---

| | |
|:---|:---|
|  SEC registration fee | $\* |
|  FINRA filing fee | \* |
|  Listing fees and expenses | \* |
|  Transfer agent and registrar fees and expenses | \* |
|  Printing fees and expenses | \* |
|  Legal fees and expenses | \* |
|  Accounting expenses | \* |
|  Miscellaneous expenses | \* |
|  Total | $\* |

---

\* To be filed by amendment.

**Item 14.** **Indemnification of Directors and Officers** <br>

Section 145 of the Delaware General Corporation Law provides that a corporation may indemnify directors and officers as well as other employees and individuals against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with any threatened, pending or completed actions, suits or proceedings in which such person is made a party by reason of such person being or having been a director, officer, employee or agent to the corporation. The Delaware General Corporation Law provides that Section 145 is not exclusive of other rights to which those seeking indemnification may be entitled under any bylaw, agreement, vote of stockholders or disinterested directors or otherwise. Our amended and restated certificate of incorporation provides for indemnification of our directors and officers to the fullest extent permitted by the Delaware General Corporation Law. We have entered into indemnification agreements with each of our current directors and executive officers to provide these directors and executive officers additional contractual assurances regarding the scope of the indemnification set forth in our amended and restated certificate of incorporation and to provide additional procedural protections. There is no pending litigation or proceeding involving any of our directors or executive officers for which indemnification is sought.

Section 102(b)(7) of the Delaware General Corporation Law permits a corporation to provide in its certificate of incorporation that a director or officer of the corporation shall not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director or officer, except for (i) a director's or officer's breach of the director's or officer's duty of loyalty to our company or our stockholders, (ii) a director's or officer's act or omission not in good faith or which involved intentional misconduct or a knowing violation of law, (iii) a director's unlawful payments of dividends or unlawful stock repurchases or redemptions as provided in Section 174 of the Delaware General Corporation Law, (iv) a director or officer for any transaction from which the director or officer derived an improper personal benefit and (v) an officer in any action by or in the right of the corporation. Our amended and restated certificate of incorporation provides for exculpation of our directors and officers to the fullest extent permitted by the Delaware General Corporation Law.

We maintain standard policies of insurance under which coverage is provided (a) to our directors and officers against loss arising from claims made by reason of breach of duty or other wrongful act, and (b) to us with respect to payments which may be made by us to such officers and directors pursuant to the above indemnification provision or otherwise as a matter of law.

The proposed form of underwriting agreement filed as Exhibit 1.1 to this registration statement provides for indemnification of our directors and officers by the underwriters against certain liabilities, including liabilities under the Securities Act.

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##### [**Table of Contents**](#toc)
**Item 15.** **Recent Sales of Unregistered Securities** <br>

During the past three years, we have issued and sold the securities described below without registering the securities under the Securities Act:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In connection with the Reorganization, we will issue (i)      shares of Class A common
stock and      shares of Class B common stock to the holders of Class A units and vested MIUs, GPUs and VCBs of the Arxis Businesses, of which      shares of Class A common stock will be withheld by us
at the initial public offering price to satisfy such recipients' resulting tax remittance obligations that will be paid by us, and (ii)      restricted shares of, or restricted stock units with respect to
Class A common stock to holders of unvested MIUs, GPUs and VCBs of the Arxis Businesses. In addition, we will enter into the amended and restated advisory and consulting services agreement with Arcline Investment Management, L.P., pursuant to
which we will issue one share of convertible common stock to Arcline Investment Management, L.P. The aforementioned issuances of common stock will be made pursuant to the exemption from registration provided under Section 4(a)(2) under the
Securities Act.

**Item 16.** **Exhibits and Financial Statement Schedules** <br>

***Exhibits***

The following documents are filed as part of this registration statement:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;1.1 | [Form of Underwriting Agreement](d81728dex11.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;3.1 | [Form of amended and restated certificate of incorporation, to be in effect immediately prior to the consummation of this offering](d81728dex31.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;3.2 | [Form of amended and restated bylaws, to be in effect immediately prior to the consummation of this offering](d81728dex32.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;5.1\* | Opinion of Davis Polk & Wardwell LLP |
| 10.1† | [Credit Agreement, dated as of February 26, 2025, among Kaman Corporation, Quantic Electronics, LLC, Quantic Corporate Holdings, Inc., Qnnect, LLC, Sanders Industries Holdings, Inc., Ovation Parent, Inc., Hawkeye MidCo, LLC, Connector Intermediate HoldCo, LLC, SI Intermediate Holdings, Inc., the lenders from time to time party thereto, the L/C issuers party thereto and Citibank, N.A., as administrative agent and collateral agent](d81728dex101.htm) |
| 10.2† | [Security Agreement, dated as of February 26, 2025, among Kaman Corporation, Quantic Electronics, LLC, Quantic Corporate Holdings, Inc., Qnnect, LLC, Sanders Industries Holdings, Inc., Ovation Parent, Inc., Hawkeye MidCo, LLC, Connector Intermediate HoldCo, LLC, SI Intermediate Holdings, Inc., the other grantors from time to time party thereto and Citibank, N.A., as collateral agent](d81728dex102.htm) |
| 10.3† | [Holdings Guaranty, dated as of February 26, 2025, among Ovation Parent, Inc., Hawkeye MidCo, LLC, Connector Intermediate HoldCo, LLC, SI Intermediate Holdings, Inc. and Citibank, N.A., as administrative agent](d81728dex103.htm) |
| 10.4\* | Form of Stockholders Agreement |
| 10.5 | [Form of Registration Rights Agreement](d81728dex105.htm) |
| 10.6 | [Form of Advisory and Consulting Services Agreement with Arcline Investment Management, L.P.](d81728dex106.htm) |
| 10.7\* | Form of Tax Receivable Agreement |
| 10.8§ | [Form of Indemnification Agreement](d81728dex108.htm) |
| 10.9\*§ | Form of Arxis, Inc. 2026 Omnibus Incentive Plan |

---

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##### [**Table of Contents**](#toc)

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| | |
|:---|:---|
| 10.10\*§ | Form of Unrestricted Stock Agreement under the Arxis, Inc. 2026 Omnibus Incentive Plan |
| 10.11\*§ | Form of Restricted Stock Agreement under the Arxis, Inc. 2026 Omnibus Incentive Plan |
| 10.12\*§ | Form of Non-Qualified Stock Option Agreement (Employees) under the Arxis, Inc. 2026 Omnibus Incentive Plan |
| 10.13\*§ | Form of Executive Employment Agreement dated as of , 2026, by and between Kevin Perhamus and Arxis, Inc. |
| 10.14\*§ | Form of Executive Employment Agreement dated as of , 2026, by and between Azad Badakhsh and Arxis, Inc. |
| 10.15\*§ | Form of Executive Employment Agreement dated as of , 2026, by and between Jennifer Allen and Arxis, Inc. |
| 10.16\*§ | Form of Executive Employment Agreement dated as of , 2026, by and between Jason Roth and Arxis, Inc. |
| 10.17\*§ | Form of Executive Employment Agreement dated as of , 2026, by and between Ross Sealfon and Arxis, Inc. |
| 10.18\*§ | Executive Annual Incentive Program |
| 16.1 | [Letter Regarding Change in Accountants](d81728dex161.htm) |
| 21.1 | [List of subsidiaries](d81728dex211.htm) |
| 23.1 | [Consent of KPMG LLP](d81728dex231.htm) |
| 23.2 | [Consent of RSM US LLP](d81728dex232.htm) |
| 23.3\* | Consent of Davis Polk & Wardwell LLP (included in Exhibit 5.1) |
| 24.1 | [Powers of attorney (included on signature page to the registration statement)](#sig) |
| &nbsp;&nbsp;&nbsp;&nbsp;107 | [Filing fee table](d81728dexfilingfees.htm) |

---

\* To be filed by amendment.

# Portions of this exhibit have been omitted because they are both (i) not material and (ii) customarily and actually treated by the registrant as private or confidential.

† Exhibits and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K and will be provided on a supplemental basis to the SEC upon request.

§ Indicates a management contract or compensatory plan.

***Financial Statements Schedules***

Schedule II - Valuation and Qualifying Accounts.

Financial statement schedules other than the one listed have been omitted because they are not required or are not applicable, or the information is otherwise set forth in the combined financial statements and related notes thereto.

**Item 17.** **Undertakings** <br>

The undersigned hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for purposes of determining any liability under the Securities Act, the information omitted from the form of
prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of
this registration statement as of the time it was declared effective; and

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##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for the purpose of determining any liability under the Securities Act, each post-effective amendment that
contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the provisions referenced in Item 14 of this registration statement, or otherwise, the registrant has been advised that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer, or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless, in the opinion of its counsel, the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

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##### [**Table of Contents**](#toc)
**SIGNATURES** 

Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in Bloomfield, Connecticut, on March 24, 2026.

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| | | |
|:---|:---|:---|
| Arxis, Inc. | Arxis, Inc. | Arxis, Inc. |
| By: | /s/ Kevin Perhamus | /s/ Kevin Perhamus |
|  | Name: | Kevin Perhamus |
|  | Title: | President, Chief Executive Officer and Director |

---

Each person whose signature appears below constitutes and appoints Kevin Perhamus, Azad Badakhsh and Jennifer Allen, and each of them, such person's true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for such person and in such person's name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this registration statement and any and all additional registration statements pursuant to Rule 462(b) of the Securities Act of 1933, and to file the same, with all exhibits thereto, and all other documents in connection therewith, with the SEC, granting unto each said attorney-in-fact and agent full power and authority to do and perform each and every act in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or either of them or their or his substitute or substitutes may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed below by the following persons on March 24, 2026 in the capacities indicated:

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| | |
|:---|:---|
| /s/ Kevin Perhamus<br> Kevin Perhamus | President, Chief Executive Officer and Director<br> (principal executive officer) |
| /s/ Azad Badakhsh<br> Azad Badakhsh | Chief Financial Officer and Treasurer<br> (principal financial officer) |
| /s/ Ryan Jankowski<br> Ryan Jankowski | Chief Accounting Officer<br> (principal accounting officer) |
| /s/ Rajeev Amara<br> Rajeev Amara | Chairman and Director |
| /s/ Shyam Ravindran<br> Shyam Ravindran | Director |
| /s/ Patrick Allen<br> Patrick Allen | Director |
| /s/ Stephen Oetgen<br> Stephen Oetgen | Director |

---

## Exhibit 1.1

**Exhibit 1.1** 

**Arxis, Inc.** 

**Class A Common Stock, Par Value $[•] Per Share** 

***<u>Underwriting Agreement</u>***

[•], 2026

Goldman Sachs & Co. LLC,

Morgan Stanley & Co. LLC

Jefferies LLC

As representatives (the "Representatives") of the several Underwriters

named in Schedule I hereto,

c/o Goldman Sachs & Co. LLC

200 West Street

New York, New York 10282

c/o Morgan Stanley & Co. LLC

1585 Broadway

New York, New York 10036

c/o Jefferies LLC

520 Madison Avenue

New York, New York 10022

Ladies and Gentlemen:

Arxis, Inc., a Delaware corporation (the "Company"), proposes, subject to the terms and conditions stated in this agreement (this "Agreement"), to issue and sell to the Underwriters named in Schedule I hereto (the "Underwriters") an aggregate of [•] shares (the "Firm Shares") and, at the election of the Underwriters, up to [•] additional shares (the "Optional Shares") of Class A common stock, par value $[•] per share ("Class A Common Stock") of the Company (the Firm Shares and the Optional Shares that the Underwriters elect to purchase pursuant to Section 2 hereof being collectively called the "Shares"). The shares of Class A Common Stock to be outstanding after giving effect to the sales contemplated hereby and the Reorganization (as defined herein), together with the shares of Class B common stock ("Class B Common Stock") and Class C common stock ("Class C Common Stock") of the Company are hereinafter referred to as the "Stock".

In connection with the offering contemplated by this Agreement, [the Company intends to effect a reorganization, pursuant to which Arcline Engineered Polymer Topco L.P., Hawkeye TopCo L.P., Connector TopCo, L.P. and Ovation TopCo, L.P. (each, an "Arxis Business" and, collectively the "Arxis Businesses") will [merge with and into] the Company, with the Company being the surviving entity of such mergers. Thereafter the Arxis Businesses will be wholly owned by the Company. The Company and the Arxis Businesses are each referred to herein as a "Company Party" and are collectively referred to herein as the "Company Parties."

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Any reference in this Agreement, to the extent the context requires, to the "Reorganization" shall have the meanings ascribed to the term "Reorganization" in the Prospectus (as defined below). In connection with the offering contemplated by this Agreement and the Reorganization, (a) certain Arxis Businesses will enter into [•]<sup>1</sup> and (b) the Company will amend and restate its certificate of incorporation (as so amended and restated, the "Amended and Restated Charter").

This Agreement, the [•] and the Amended and Restated Charter are collectively referred to herein as the "Transaction Documents."

Morgan Stanley & Co. LLC ("Morgan Stanley") has agreed to reserve a portion of the Shares to be purchased by it under this Agreement for sale to the Company's directors, officers, employees and business associates and other parties related to the Company (collectively, "Participants"), as set forth in each of the Pricing Prospectus and the Prospectus under the heading "Underwriters" (the "Directed Share Program"). The Shares to be sold by Morgan Stanley and its affiliates pursuant to the Directed Share Program, at the direction of the Company, are referred to hereinafter as the "Directed Shares". Any Directed Shares not orally confirmed for purchase by any Participant by the end of the business day on which this Agreement is executed will be offered to the public by the Underwriters as set forth in the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Each Company Party represents and warrants, jointly and severally, to, and agrees with, each of the Underwriters that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A registration statement on Form S-1 (File No. 333-[•]) (as amended, the "Initial Registration Statement") in respect of the Shares has been filed with the Securities and Exchange Commission (the "Commission"); the Initial Registration Statement and any post-effective amendment thereto, each in the form heretofore delivered to you, have been declared effective by the Commission in such form; other than a registration statement, if any, increasing the size of the offering (a "Rule 462(b) Registration Statement"), filed pursuant to Rule 462(b) under the Securities Act of 1933, as amended (the "Act"), which became effective upon filing, no other document with respect to the Initial Registration Statement has been filed with the Commission; and no stop order suspending the effectiveness of the Initial Registration Statement, any post-effective amendment thereto or the Rule 462(b) Registration Statement, if any, has been issued and no proceeding for that purpose or pursuant to Section 8A of the Act has been initiated or, to the knowledge of the Company Parties, threatened by the Commission (any preliminary prospectus included in the Initial Registration Statement or filed with the Commission pursuant to Rule 424(a) under the Act is hereinafter called a "Preliminary Prospectus"; the various parts of the Initial Registration Statement and the Rule 462(b) Registration Statement, if any, including all exhibits thereto and including the information contained in the form of final prospectus filed with the Commission pursuant to Rule 424(b) under the Act in accordance with Section 5(a) hereof and deemed by virtue of Rule 430A under the Act to be part of the Initial Registration Statement at the time it was declared effective, each as amended at the time such part of the Initial Registration Statement became effective or such part of the Rule 462(b) Registration Statement, if any, became or hereafter becomes effective, are hereinafter collectively called the "Registration Statement"; the Preliminary Prospectus relating to the Shares that was included in the Registration Statement immediately prior to the Applicable Time (as defined in Section 1(c) hereof) is hereinafter called the "Pricing Prospectus"; and such final prospectus, in the form first filed pursuant to Rule 424(b) under the Act, is hereinafter called the "Prospectus"; any oral or written communication with potential investors undertaken in reliance on Rule 163B under the Act is hereinafter called a "Testing-the-Waters Communication"; and any Testing-the-Waters Communication that is a written communication within the meaning of Rule 405 under the Act is hereinafter called a "Written Testing-the-Waters Communication"; and any "issuer free writing prospectus" as defined in Rule 433 under the Act relating to the Shares is hereinafter called an "Issuer Free Writing Prospectus");

*<sup>1</sup>* *To be updated with documents to effect the Reorganization.*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (A) No order preventing or suspending the use of any Preliminary Prospectus or any Issuer Free Writing Prospectus has been issued by the Commission, and (B) each Preliminary Prospectus, at the time of filing thereof, conformed in all material respects to the requirements of the Act and the rules and regulations of the Commission thereunder, and did not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; *provided*, *however*, that this representation and warranty shall not apply to any statements or omissions made in reliance upon and in conformity with the Underwriter Information (as defined in Section 9(b) of this Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For the purposes of this Agreement, the "Applicable Time" is [•] p.m. (Eastern time) on the date of this Agreement. The Pricing Prospectus, as supplemented by the information listed on Schedule II(c) hereto, taken together (collectively, the "Pricing Disclosure Package"), as of the Applicable Time, did not, and as of each Time of Delivery (as defined in Section 4(a) of this Agreement) will not, include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; and each Issuer Free Writing Prospectus and each Written Testing-the-Waters Communication does not conflict with the information contained in the Registration Statement, the Pricing Prospectus or the Prospectus and each Issuer Free Writing Prospectus and each Written Testing-the-Waters Communication, as supplemented by and taken together with the Pricing Disclosure Package, as of the Applicable Time, did not , and as of each Time of Delivery will not, include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that this representation and warranty shall not apply to statements or omissions made in reliance upon and in conformity with the Underwriter Information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No documents were filed by any Company Party with the Commission since the Commission's close of business on the business day immediately prior to the date of this Agreement and prior to the execution of this Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Registration Statement conforms, and the Prospectus and any further amendments or supplements to the Registration Statement and the Prospectus will conform, in all material respects to the requirements of the Act and the rules and regulations of the Commission thereunder and do not and will not, as of the applicable effective date as to each part of the Registration Statement, as of the applicable filing date as to the Prospectus and any amendment or supplement thereto, and as of each Time of Delivery, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; provided, however, that this representation and warranty shall not apply to any statements or omissions made in reliance upon and in conformity with the Underwriter Information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No Company Party nor any of their subsidiaries has, since the date of the latest audited financial statements included in the Pricing Prospectus, (i) sustained any material loss or material interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute or court or governmental action, order or decree or (ii) entered into any transaction or agreement (whether or not in the ordinary course of business) that is material to the Company and its subsidiaries taken as a whole or incurred any liability or obligation, direct or contingent, that is material to the Company Parties and their subsidiaries taken as a whole, in each case other than as set forth or contemplated in the Pricing Prospectus; and, since the respective dates as of which information is given in the Registration Statement and the Pricing Prospectus, there has not been (x) any change in the capital stock (other than as a result of (i) the Reorganization, (ii) the exercise, vesting or settlement (including any "net" or "cashless" exercises or settlements), if any, of stock options, restricted stock units, incentive units or other equity awards or the award, if any, of stock options, restricted stock units, incentive units or other equity awards in the ordinary course of business pursuant to the Company's equity plans that are described in the Registration Statement, the Pricing Prospectus and the Prospectus or (iii) the issuance, if any, of stock upon the exercise or conversion of Company securities as described in the Pricing Prospectus and the Prospectus) or, except as disclosed in or contemplated by the Pricing Prospectus and the Prospectus, long-term debt of the Company or any of its subsidiaries or (y) any Material Adverse Effect (as defined below); as used in this Agreement, "Material Adverse Effect" shall mean any material adverse change or effect, or any development involving a prospective material adverse change or effect, in or affecting (i) the business, properties, general affairs, management, financial position, stockholders' equity or results of operations of the Company Parties and their subsidiaries, taken as a whole, except as set forth or contemplated in the Pricing Prospectus, or (ii) the ability of the Company to perform its obligations under this Agreement, including the issuance and sale of the Shares, or to consummate the transactions contemplated in the Pricing Prospectus and the Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Company Parties and their subsidiaries have good and marketable title in fee simple to all real property and good and marketable title to all personal property owned by them, in each case free and clear of all liens, encumbrances and defects except (i) such as are described in the Pricing Prospectus and the Prospectus or (ii) such as do not materially affect the value of such property and do not interfere with the use made and proposed to be made of such property by the Company Parties and their subsidiaries; and any real property and buildings held under lease by the Company Parties and their subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not materially interfere with the use made and proposed to be made of such property and buildings by the Company Parties and their subsidiaries;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Each of the Company Parties and each of their subsidiaries has been (i) duly organized and is validly existing and in good standing under the laws of its jurisdiction of organization, with power and authority (corporate and other) to own its properties and conduct its business as described in the Pricing Prospectus, and (ii) duly qualified as a foreign corporation for the transaction of business and is in good standing (or applicable foreign equivalent) under the laws of each other jurisdiction in which it owns or leases properties or conducts any business so as to require such qualification, except, in the case of this clause (ii), where the failure to be so qualified or in good standing (or applicable foreign equivalent) would not, individually or in the aggregate, have a Material Adverse Effect, and each subsidiary of the Company Parties has been listed in the Registration Statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Following the completion of the Reorganization, the Company will have an authorized capitalization as set forth in the Pricing Prospectus and all of the issued shares of capital stock of the Company following the Reorganization will have been duly and validly authorized and issued and are fully paid and non-assessable and conform, in all material respects, to the description of the Stock contained in the Pricing Disclosure Package and Prospectus; and all of the issued shares of capital stock of the Company Parties and each subsidiary of the Company Parties have been duly and validly authorized and issued, will be fully paid and non-assessable and (except, in the case of any foreign subsidiary, for directors' qualifying shares) will be owned directly or indirectly by the Company Parties, free and clear of all liens, encumbrances, equities or claims, except as otherwise disclosed in the Pricing Prospectus and the Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The unissued Shares to be issued and sold by the Company to the Underwriters hereunder have been duly and validly authorized and, when issued and delivered against payment therefor as provided herein, will be duly and validly issued and fully paid and non-assessable and will conform, in all material respects, to the description of the Stock contained in the Pricing Disclosure Package and the Prospectus; and the issuance of the Shares is not subject to any preemptive or similar rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The issue and sale of the Shares and the compliance by the Company Parties with this Agreement and the consummation of the transactions contemplated in this Agreement and the Pricing Prospectus will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, (A) any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which a Company Party or any of its subsidiaries is a party or by which a Company Party or any of its subsidiaries is bound or to which any of the property or assets of a Company Party or any of its subsidiaries is subject, (B) the certificate of incorporation or by-laws (or other applicable organizational document) of a Company Party or any of its subsidiaries, or (C) any statute or any judgment, order, rule or regulation of any court or governmental agency or body having jurisdiction over a Company Party or any of its subsidiaries or any of their properties; except, in the case of clauses (A) and (C) for such defaults, breaches, or violations that would not, individually or in the aggregate, have a Material Adverse Effect, and no consent, approval, authorization, order, registration or qualification of or with any such court or governmental agency or body is required for the issue and sale of the Shares or the consummation by the Company of the transactions contemplated by this Agreement, except such as have been obtained under the Act, the approval by the Financial Industry Regulatory Authority ("FINRA") of the underwriting terms and arrangements, the approval for listing of the Shares on the Nasdaq Global Select Market (the "Exchange") and such consents, approvals, authorizations, orders, registrations or qualifications as may be required under state securities or Blue Sky laws in connection with the purchase and distribution of the Shares by the Underwriters;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) None of the Company Parties nor any of their subsidiaries is (i) in violation of its certificate of incorporation or by-laws (or other applicable organizational document), (ii) in violation of any statute or any judgment, order, rule or regulation of any court or governmental agency or body having jurisdiction over a Company Party or any of its subsidiaries or any of their properties, or (iii) in default in the performance or observance of any obligation, agreement, covenant or condition contained in any indenture, mortgage, deed of trust, loan agreement, lease or other agreement or instrument to which it is a party or by which it or any of its properties may be bound, except, in the case of the foregoing clauses (ii) and (iii), for such violations or defaults as would not, individually or in the aggregate, have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The statements set forth in the Pricing Prospectus and the Prospectus under the caption "Description of Capital Stock", insofar as they purport to constitute a summary of the terms of the Stock, under the caption "Material U.S. Federal Tax Considerations for Non-U.S. Holders", and under the caption "Underwriting", insofar as they purport to describe the provisions of the laws and documents referred to therein, are accurate, complete and fair in all material respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Other than as set forth in the Pricing Prospectus, there are no legal, governmental or regulatory investigations, actions, demands, claims, suits, arbitrations, inquiries or proceedings ("Actions") pending to which a Company Party or any of its subsidiaries or, to the knowledge of the Company Parties, any officer or director of the Company Parties, is a party or of which any property or assets of a Company Party or any of its subsidiaries or, to the knowledge of the Company Parties, any officer or director of the Company Parties, is the subject which, if determined adversely to a Company Party or any of its subsidiaries (or such officer or director), would individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; and, to the knowledge of the Company Parties, no such proceedings are threatened or contemplated by governmental authorities or others; there are no current or pending Actions that are required under the Act to be described in the Registration Statement or the Pricing Prospectus that are not so described therein; and there are no statutes, regulations or contracts or other documents that are required under the Act to be filed as exhibits to the Registration Statement or described in the Registration Statement, the Pricing Prospectus that are not so filed as exhibits to the Registration Statement or described in the Registration Statement and the Pricing Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Each Company Party is not and, after giving effect to the offering and sale of the Shares and the application of the proceeds thereof, will not be an "investment company", as such term is defined in the Investment Company Act of 1940, as amended (the "Investment Company Act");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) At the time of filing the Initial Registration Statement and any post-effective amendment thereto, at the earliest time thereafter that the Company or any offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) under the Act) of the Shares, and at the date hereof, the Company was not and is not an "ineligible issuer," as defined under Rule 405 under the Act;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Each of KPMG LLP, who have certified certain financial statements of the Arxis Businesses, and RSM US LLP, who have certified certain financial statements of Arcline Engineered Polymer Topco L.P. and Hawkeye TopCo L.P., are independent public accountants as required by the Act and the rules and regulations of the Commission thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Each Company Party maintains a system of internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) that (i) complies with the requirements of the Exchange Act, (ii) has been designed by each Company Party's respective principal executive officer and principal financial officer, or under their supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and (iii) is designed to provide reasonable assurance that (A) transactions are executed in accordance with management's general or specific authorization, (B) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain accountability for assets, (C) access to assets is permitted only in accordance with management's general or specific authorization and (D) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences; and except as set forth in the Pricing Prospectus, each Company Party's internal control over financial reporting is effective and no Company Party is aware of any material weaknesses in its internal control over financial reporting**;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Since the date of the latest audited financial statements included in the Pricing Prospectus, there has been no change in any Company Party's internal control over financial reporting that has materially and adversely affected, or is reasonably likely to materially and adversely affect, such Company Party's internal control over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) Each Company Party maintains disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the Exchange Act) that comply with the requirements of the Exchange Act; such disclosure controls and procedures have been designed to ensure that material information relating to the Company Parties and their subsidiaries is made known to the Company's principal executive officer and principal financial officer by others within those entities; and such disclosure controls and procedures are effective;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) This Agreement has been duly authorized, executed and delivered by each Company Party;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) None of the Company Parties nor any of their respective subsidiaries, nor any director or officer thereof nor, to the knowledge of the Company Parties, any employee of the Company Parties or any of their respective subsidiaries or any agent, affiliate or other person associated with or acting on behalf of any Company Party or any of its subsidiaries has (i) made, offered, promised or authorized any unlawful contribution, gift, entertainment or other unlawful expense (or taken any act in furtherance thereof); (ii) made, offered, promised, authorized any direct or indirect unlawful payment; or (iii) violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977, as amended, or the rules and regulations thereunder, the Bribery Act 2010 of the United Kingdom or any other applicable anti-corruption, anti-bribery or related law, statute or regulation (collectively, "Anti-Corruption Laws"); the Company Parties and each of their respective subsidiaries have conducted their businesses in compliance with Anti-Corruption Laws and have instituted and maintained and will continue to maintain policies and procedures reasonably designed to promote and achieve compliance with such laws and with the representations and warranties contained herein; no Company Party nor any of its subsidiaries will use, directly or indirectly, the proceeds of the offering in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any person in violation of Anti-Corruption Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) The operations of the Company Parties and their subsidiaries are and have been conducted at all times in compliance with the requirements of applicable anti-money laundering laws, including, but not limited to, the Bank Secrecy Act of 1970, as amended by the USA PATRIOT ACT of 2001, and the rules and regulations promulgated thereunder, and the anti-money laundering laws of the various jurisdictions in which the Company Parties and their subsidiaries conduct business, the rules and regulations thereunder and any related or similar rules, regulations or guidelines issued, administered or enforced by any governmental agency (collectively, the "Money Laundering Laws") and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the Company Parties, threatened;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) (A) None of the Company Parties nor any of their respective subsidiaries, nor any director, officer or employee of the Company Parties or any of their respective subsidiaries, nor, to the knowledge of the Company Parties, any agent, affiliate or other person associated with or acting on behalf of a Company Party or any of its subsidiaries is an individual or entity ("Person") that is, or is 50% or more owned or controlled by a Person that is currently the subject or the target of any sanctions administered or enforced by the U.S. government, including, without limitation, the Office of Foreign Assets Control of the U.S. Department of the Treasury ("OFAC"), or the U.S. Department of State (and including, without limitation, the designation as a "specially designated national" or "blocked person"), the European Union, His Majesty's Treasury, the United Nations Security Council, or other relevant sanctions authority (collectively, "Sanctions"), or located, organized, or resident in a country or territory that is the subject or target of Sanctions (including, without limitation, the so-called Donetsk People's Republic, or the so-called Luhansk People's Republic or any other Covered Region of Ukraine identified pursuant to Executive Order 14065, and the Crimea region, Cuba, Iran, North Korea and Syria) (a "Sanctioned Jurisdiction"); (B) no Company Party will directly or indirectly use the proceeds of the offering of the Shares hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity (i) to fund or facilitate any activities of or business with any Person, or in any country or territory, that, at the time of such funding or facilitation, is the subject or the target of Sanctions or (ii) in any other manner that will result in a violation by any Person (including any Person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions; and (C) no Company Party nor any of their respective subsidiaries is engaged in, or has, at any time since April 24, 2019, engaged in, any unlawful dealings or transactions with any Sanctioned Jurisdiction or involving any Person that, at the time of such dealing or transaction, is or was the subject or the target of Sanctions; the Company Parties and their subsidiaries have instituted, and maintain, policies and procedures designed to promote and achieve continued compliance with Sanctions;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) The financial statements included in the Registration Statement, the Pricing Prospectus and the Prospectus, together with the related schedules and notes, present fairly in all material respects the financial position of the Arxis Businesses and their subsidiaries at the dates indicated and the statement of operations, stockholders' equity and cash flows of the Arxis Businesses and their subsidiaries for the periods specified; said financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") applied on a consistent basis throughout the periods involved. The supporting schedules, if any, present fairly in all material respects and in accordance with GAAP the information required to be stated therein. The selected financial data and the summary financial information included in the Registration Statement, the Pricing Prospectus and the Prospectus present fairly in all material respects the information shown therein and have been compiled on a basis consistent with that of the audited financial statements included therein. Except as included therein, no historical or pro forma financial statements or supporting schedules are required to be included in the Registration Statement, the Pricing Prospectus or the Prospectus under the Act or the rules and regulations promulgated thereunder. All disclosures contained in the Registration Statement, the Pricing Prospectus and the Prospectus regarding "non-GAAP financial measures" (as such term is defined by the rules and regulations of the Commission) comply in all material respects with Regulation G of the Exchange Act and Item 10 of Regulation S-K of the Act, to the extent applicable. Except as described therein, the unaudited supplemental pro forma financial information and the related notes thereto included in the Registration Statement, the Pricing Prospectus and the Prospectus have been prepared in accordance with the applicable requirements of the Act and the assumptions underlying such pro forma financial information are reasonable and are set forth in the Registration Statement, the Pricing Prospectus and the Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) Except as disclosed in the Pricing Prospectus and the Prospectus or as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (i) each Company Party and each of its subsidiaries own or otherwise possess adequate rights to use all patents, patent applications, trademarks, service marks, trade names, domain names, copyrights and registrations and applications thereof, know-how, inventions, software, systems (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems or procedures) and all other worldwide intellectual property rights (collectively, "Intellectual Property Rights") reasonably necessary for the conduct of their respective businesses; (ii) the Intellectual Property Rights owned by each Company Party and its subsidiaries and, to the Company's knowledge, the Intellectual Property Rights licensed to each Company Party and its subsidiaries are valid, subsisting and enforceable, and there is no pending or, to the knowledge of the Company Parties, threatened action, suit, proceeding or claim by others challenging the ownership, validity, scope or enforceability of any such Intellectual Property Rights; (iii) to the knowledge of the Company Parties, each Company Party and its subsidiaries have not in the preceding three (3) years of the date hereof and do not, and the conduct of their respective businesses have not in the preceding three (3) years of the date hereof and do not, infringe, misappropriate, violate or conflict with any Intellectual Property Rights of others; (iv) neither the Company Parties nor any of their subsidiaries have received any written notice of any claim of infringement, misappropriation, violation or conflict with any Intellectual Property Rights of others; (v) to the knowledge of the Company Parties, no third party is infringing, misappropriating or otherwise violating any Intellectual Property Rights owned by any Company Party or any of its subsidiaries; (vi) all current and former employees, contractors, or consultants engaged in the development of Intellectual Property Rights on behalf of any Company Party or any of its subsidiaries have executed an invention assignment agreement whereby such employees, contractors or consultants presently assign all of their right, title and interest in and to such Intellectual Property Rights to the applicable Company Party or subsidiary, and to the Company's knowledge, no such agreement has been breached or violated; (vii) each Company Party and its subsidiaries have used commercially reasonable efforts to protect the confidentiality of all confidential Intellectual Property Rights owned by each Company Party or its subsidiaries, and no source code for any software owned by any Company Party or any of its subsidiaries has been made available to any person or entity who is not an employee, adviser or consultant of each respective Company Party or its subsidiaries that is bound to commercially reasonable confidentiality obligations with respect thereto; (viii) none of the Intellectual Property Rights used by any Company Party or any of its subsidiaries in their respective businesses has been obtained or used by the applicable Company Party or its subsidiary in violation of any contractual obligation or the rights of any persons; and (ix) neither the Company Parties nor any of their subsidiaries have used or distributed any software or other materials distributed under a "free," "open source," or similar licensing model in any manner that has required (1) the Company Parties or any of their subsidiaries to permit reverse engineering of any software code or other technology owned by the Company Parties or any of their subsidiaries or (2) any software code or other technology owned by the Company Parties or any of their subsidiaries to be (A) disclosed or distributed in source code form, (B) licensed for the purpose of making derivative works or (C) redistributed at no or minimal charge.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) Except as disclosed in the Pricing Prospectus and the Prospectus or as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (i) each Company Party's and its subsidiaries' information technology assets and equipment, computers, systems, networks, hardware, software, websites, applications, and databases used by each Company Party (collectively, "IT Systems") are adequate for, and operate and perform as required in connection with, the operation of the business of such Company Party and its subsidiaries as currently conducted, free and clear, to the knowledge of the Company Parties, of all bugs, errors, viruses, defects, Trojan horses, time bombs, malware and other corruptants; (ii) each Company Party and its subsidiaries have implemented and maintained commercially reasonable controls, policies, procedures, and safeguards designed to maintain and protect the security, continuous operation, redundancy and integrity of their confidential information, IT Systems and data (including all personal, personally identifiable, sensitive, confidential or regulated data ("Personal Data")) used in connection with their businesses, and, to the knowledge of the Company Parties, there have been no breaches, violations, outages or unauthorized or unlawful uses of or accesses to same, except for those that have been remedied without material cost or liability or the duty to notify any other person ("Security Incident"), nor any incidents under internal review or investigations relating to the same; (iii) each Company Party and its subsidiaries are presently in compliance with all applicable laws or statutes and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, publicly available policies, and contractual obligations relating (A) to the privacy and security of IT Systems and Personal Data, (B) to the protection of such IT Systems and Personal Data from unauthorized use, access, misappropriation or modification and (C) to the collection, use, transfer, import, export, storage, protection, disposal and disclosure by such Company Party or any of its subsidiaries of Personal Data (the foregoing clause (C), "Data Security Obligations"); (iv) no Company Party has received any written notification of or written complaint regarding, and is unaware of any other facts that, individually or in the aggregate, would reasonably indicate, non-compliance with any Data Security Obligation; and (v) there is no action, suit or proceeding by or before any court or governmental agency, authority or body pending or, to the knowledge of the Company Parties, threatened regarding a Security Incident or alleging non-compliance with any Data Security Obligation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) Each Company Party and each of its subsidiaries (i) are, and to the Company's knowledge, have been in compliance with any and all applicable foreign, federal, state and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants ("Environmental Laws"), (ii) have received all material permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses, and (iii) are in compliance with all material terms and conditions of any such permit, license or approval, except where such noncompliance with Environmental Laws, failure to receive required permits, licenses or other approvals, or failure to comply with the terms and conditions of such permits, licenses or approvals would not, singly or in the aggregate, reasonably be expected to have a material adverse effect on the Company Parties and their subsidiaries, taken as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) Neither the Company Parties nor any of their subsidiaries is a "covered foreign person", as that term is defined in 31 C.F.R. § 850.209. Neither the Company Parties nor any of their subsidiaries currently engages, or has plans to engage, directly or indirectly, in a "covered activity", as that term is defined in in 31 C.F.R. § 850.208 ("Covered Activity"). The Company Parties do not have any joint ventures that engages in or plans to engage in any Covered Activity. The Company Parties also do not, directly or indirectly, hold a board seat on, have a voting or equity interest in, or have any contractual power to direct or cause the direction of the management or policies of any person or persons that engages or plans to engage in any Covered Activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) There are no costs or liabilities associated with Environmental Laws (including, without limitation, any capital or operating expenditures required for clean up, closure of properties or compliance with Environmental Laws or any permit, license or approval, any related constraints on operating activities and any potential liabilities to third parties) which would, singly or in the aggregate, reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) No forward-looking statement (within the meaning of Section 27A of the Act and Section 21E of the Exchange Act) included or incorporated by reference in any of the Registration Statement, the Pricing Prospectus or the Prospectus has been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) Nothing has come to the attention of the Company Parties that has caused the Company Parties to believe that the statistical and market-related data included in each of the Registration Statement, the Pricing Prospectus and the Prospectus is not based on or derived from sources that are reliable and accurate in all material respects;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) There is and has been no failure on the part of the Company or any of the Company's directors or officers, in their capacities as such, to comply with any provision of the Sarbanes-Oxley Act of 2002, as amended and the rules and regulations promulgated in connection therewith (the "Sarbanes-Oxley Act"), including Section 402 related to loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No Company Party nor any of its controlled affiliates has taken or will take, directly or indirectly, any action designed to or that could reasonably be expected to cause or result in the stabilization or manipulation of the price of any security of the Company Parties or any of their subsidiaries in connection with the offering of the Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) Each Company Party and each of its subsidiaries have such permits, licenses, approvals, consents, franchises, certificates of need and other approvals or authorizations of governmental or regulatory authorities ("Permits") as are necessary under applicable law to own their respective properties and conduct their respective businesses in the manner described in the Registration Statement, the Pricing Prospectus and the Prospectus, except for any of the foregoing that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. None of the Company Parties nor any of its subsidiaries has received notice of any proceedings related to the revocation or modification of any such Permits that, individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) The Company Parties and their subsidiaries, taken as a whole, are insured against such losses and risks and in such amounts as are prudent and customary in the businesses in which they are engaged and as required by law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) There are no contracts, agreements or understandings between the Company Parties and any person granting such person the right to require the Company to file a registration statement under the Act with respect to any securities of the Company Parties or to require the Company to include such securities with the Shares registered pursuant to the Registration Statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) The Company Parties and each of their subsidiaries have filed all federal, state, local and foreign tax returns required to be filed through the date of this Agreement or have requested extensions thereof (except where the failure to file would not, singly or in the aggregate, have a Material Adverse Effect) and have paid all taxes required to be paid thereon (except for cases in which the failure to file or pay would not, singly or in the aggregate, have a Material Adverse Effect, or, except as currently being contested in good faith and for which reserves required by U.S. GAAP have been created in the financial statements of the Arxis Businesses), and no tax deficiency has been determined adversely to the Company Parties or any of its subsidiaries which, singly or in the aggregate, has had (nor does any Company Party nor any of its subsidiaries have any notice or knowledge of any tax deficiency which could reasonably be expected to be determined adversely to the Company Parties or their subsidiaries and which could reasonably be expected to have) a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) Each Company Party has full right, power and authority to execute and deliver the Transaction Documents to which it is a party and to perform its obligations hereunder and thereunder; and all action required to be taken for the due and proper authorization, execution and delivery by it of this Agreement and each of the Transaction Documents to which it is a party and the consummation by it of the transactions contemplated hereby and thereby has been duly and validly taken;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) Each of the Transaction Documents (other than this Agreement and the Amended and Restated Charter) has been duly authorized, executed and delivered by the Company and constitutes a valid and legally binding agreement of the Company enforceable against the Company in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors' rights generally or by equitable principles relating to enforceability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) Each Transaction Document conforms in all material respects to the description thereof contained in the Registration Statement, the Pricing Prospectus and the Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) The Registration Statement, the Prospectus, the Pricing Prospectus and any Preliminary Prospectus comply, and any amendments or supplements thereto will comply, with any applicable laws or regulations of foreign jurisdictions in which the Prospectus, the Pricing Prospectus or any Preliminary Prospectus, as amended or supplemented, if applicable, are distributed in connection with the Directed Share Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No consent, approval, authorization or order of, or qualification with, any governmental body or agency, other than those obtained, is required in connection with the offering of the Directed Shares in any jurisdiction where the Directed Shares are being offered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) The Company has not offered, or caused Morgan Stanley or any Morgan Stanley Entity as defined in Section 10 to offer, Shares to any person pursuant to the Directed Share Program with the specific intent to unlawfully influence (i) a customer or supplier of the Company to alter the customer's or supplier's level or type of business with the Company, or (ii) a trade journalist or publication to write or publish favorable information about the Company or its products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Subject to the terms and conditions herein set forth, (a) the Company agrees to issue and sell to each of the Underwriters, and each of the Underwriters agrees, severally and not jointly, to purchase from the Company, at a purchase price per share of $[•], the number of Firm Shares set forth opposite the name of such Underwriter in Schedule I hereto and (b) in the event and to the extent that the Underwriters shall exercise the election to purchase Optional Shares as provided below, the Company agrees to issue and sell to each of the Underwriters, and each of the Underwriters agrees, severally and not jointly, to purchase from the Company, at the purchase price per share set forth in clause (a) of this Section 2 (provided that the purchase price per Optional Share shall be reduced by an amount per share equal to any dividends or distributions declared by the Company and payable on the Firm Shares but not payable on the Optional Shares), that portion of the number of Optional Shares as to which such election shall have been exercised (to be adjusted by you so as to eliminate fractional shares) determined by multiplying such number of Optional Shares by a fraction, the numerator of which is the maximum number of Optional Shares which such Underwriter is entitled to purchase as set forth opposite the name of such Underwriter in Schedule I hereto and the denominator of which is the maximum number of Optional Shares that all of the Underwriters are entitled to purchase hereunder.

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The Company hereby grants to the Underwriters the right to purchase at their election up to [•] Optional Shares, at the purchase price per share set forth in the paragraph above, provided that the purchase price per Optional Share shall be reduced by an amount per share equal to any dividends or distributions declared by the Company and payable on the Firm Shares but not payable on the Optional Shares. Any such election to purchase Optional Shares may be exercised only by written notice from you to the Company, given within a period of 30 calendar days after the date of this Agreement, setting forth the aggregate number of Optional Shares to be purchased and the date on which such Optional Shares are to be delivered, as determined by you but in no event earlier than the First Time of Delivery (as defined in Section 4 hereof) or, unless you and the Company otherwise agree in writing, earlier than one or later than ten business days after the date of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Upon the authorization by the Company of the release of the Shares, the several Underwriters propose to offer the Shares for sale upon the terms and conditions set forth in the Pricing Disclosure Package and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. (a) The Shares to be purchased by each Underwriter hereunder, in definitive or book-entry form, and in such authorized denominations and registered in such names as the Representatives may request upon at least twenty-four hours' prior notice to the Company shall be delivered by or on behalf of the Company to the Representatives, through the facilities of the Depository Trust Company ("DTC"), for the account of such Underwriter, against payment by or on behalf of such Underwriter of the purchase price therefor by wire transfer of Federal (same-day) funds to the account specified by the Company to the Representatives at least twenty-four hours in advance. The Company will cause the certificates, if any, representing the Shares to be made available for checking and packaging at least twenty-four hours prior to the Time of Delivery (as defined below) with respect thereto at the office of DTC or its designated custodian (the "Designated Office"). The time and date of such delivery and payment shall be, with respect to the Firm Shares, 9:30 a.m., New York City time, on [•], 2026 or such other time and date as the Representatives and the Company may agree upon in writing, and, with respect to the Optional Shares, 9:30 a.m., New York time, on the date specified by the Representatives in the written notice given by the Representatives of the Underwriters' election to purchase such Optional Shares, or such other time and date as the Representatives and the Company may agree upon in writing. Such time and date for delivery of the Firm Shares is herein called the "First Time of Delivery", such time and date for delivery of the Optional Shares, if not the First Time of Delivery, is herein called the "Second Time of Delivery", and each such time and date for delivery is herein called a "Time of Delivery".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The documents to be delivered at each Time of Delivery by or on behalf of the parties hereto pursuant to Section 8 hereof, including the cross receipt for the Shares and any additional documents requested by the Underwriters pursuant to Section 8(j) hereof, will be delivered at the offices of Ropes & Gray LLP, 1211 Avenue of the Americas New York, NY 10036 (the "Closing Location"), and the Shares will be delivered at the Designated Office, all at such Time of Delivery. A meeting will be held at the Closing Location at [•] p.m., New York City time, on the New York Business Day next preceding such Time of Delivery, at which meeting the final drafts of the documents to be delivered pursuant to the preceding sentence will be available for review by the parties hereto. For the purposes of this Section 4, "New York Business Day" shall mean each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in New York City are generally authorized or obligated by law or executive order to close.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Company agrees with each of the Underwriters:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To prepare the Prospectus in a form approved by you and to file such Prospectus pursuant to Rule 424(b) under the Act prior to the earlier of (i) the First Time of Delivery and (ii) the Commission's close of business on the second business day following the execution and delivery of this Agreement, or, if applicable, such earlier time as may be required by Rule 430A(a)(3) under the Act; to make no further amendment or any supplement to the Registration Statement or the Prospectus prior to the last Time of Delivery which shall be disapproved by you promptly after reasonable notice thereof; to advise you, promptly after it receives notice thereof, of the time when any amendment to the Registration Statement has been filed or becomes effective or any amendment or supplement to the Prospectus has been filed and to furnish you with copies thereof; to file promptly all material required to be filed by the Company with the Commission pursuant to Rule 433(d) under the Act; to advise you, promptly after it receives notice thereof, of the issuance by the Commission of any stop order or of any order preventing or suspending the use of any Preliminary Prospectus or other prospectus in respect of the Shares, of the suspension of the qualification of the Shares for offering or sale in any jurisdiction, of the initiation or threatening of any proceeding for any such purpose, or of any request by the Commission for the amending or supplementing of the Registration Statement or the Prospectus or for additional information; and, in the event of the issuance of any stop order or of any order preventing or suspending the use of any Preliminary Prospectus or other prospectus or suspending any such qualification, to promptly use its best efforts to obtain the withdrawal of such order;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Promptly from time to time to take such action as you may reasonably request to qualify the Shares for offering and sale under the securities laws of such jurisdictions as you may reasonably request and to comply with such laws so as to permit the continuance of sales and dealings therein in such jurisdictions for as long as may be necessary to complete the distribution of the Shares, provided that in connection therewith the Company shall not be required to qualify as a foreign corporation (where not otherwise required) or to file a general consent to service of process in any jurisdiction (where not otherwise required);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Prior to 10:00 a.m., New York City time, on the New York Business Day next succeeding the date of this Agreement and from time to time, to furnish the Underwriters with written and electronic copies of the Prospectus in New York City in such quantities as you may reasonably request, and, if the delivery of a prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Act) is required at any time prior to the expiration of nine months after the time of issue of the Prospectus in connection with the offering or sale of the Shares and if at such time any event shall have occurred as a result of which the Prospectus as then amended or supplemented would include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made when such Prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Act) is delivered, not misleading, or, if for any other reason it shall be necessary during such same period to amend or supplement the Prospectus in order to comply with the Act, to notify you and upon your request to prepare and furnish without charge to each Underwriter and to any dealer in securities as many written and electronic copies as you may from time to time reasonably request of an amended Prospectus or a supplement to the Prospectus which will correct such statement or omission or effect such compliance; and in case any Underwriter is required to deliver a prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Act) in connection with sales of any of the Shares at any time nine months or more after the time of issue of the Prospectus, upon your request but at the expense of such Underwriter, to prepare and deliver to such Underwriter as many written and electronic copies as you may request of an amended or supplemented Prospectus complying with Section 10(a)(3) of the Act;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To make generally available to its securityholders as soon as practicable (which may be satisfied by filing with the Commission's Electronic Data Gathering Analysis and Retrieval System ("EDGAR")), but in any event not later than sixteen months after the effective date of the Registration Statement (as defined in Rule 158(c) under the Act), an earnings statement of the Company and its subsidiaries (which need not be audited) complying with Section 11(a) of the Act and the rules and regulations of the Commission thereunder (including, at the option of the Company, Rule 158);

(e)(1) During the period beginning from the date hereof and continuing to and including the date that is one hundred and eighty days after the date of the Prospectus (the "Lock-Up Period"), not to (i) offer, sell, contract to sell, pledge, grant any option to purchase, make any short sale or otherwise transfer or dispose of, directly or indirectly, or file with or confidentially submit to the Commission a registration statement under the Act relating to, any securities of the Company that are substantially similar to the Shares, including but not limited to any options or warrants to purchase shares of Stock or any securities that are convertible into or exchangeable for, or that represent the right to receive, Stock or any such substantially similar securities, or publicly disclose the intention to make any offer, sale, pledge, disposition or filing or (ii) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the Stock or any such other securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Stock or such other securities, in cash or otherwise, without the prior written consent of two of Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Jefferies LLC, in their sole discretion; provided, however, that the restrictions described above shall not apply to (A) the Shares to be sold hereunder, (B) the Stock issued pursuant to employee stock option plans existing on, or upon the conversion or exchange of convertible or exchangeable securities outstanding as of the date of this Agreement, (C) grants of stock options, stock awards, restricted stock, RSUs, stock appreciation rights or any other type of equity awards with respect to shares of Stock to employees, officers, directors, advisors or consultants of the Company and its subsidiaries pursuant to employee plans that are described in the Registration Statement, the Pricing Prospectus and Prospectus and the issuance of Stock or securities convertible into or exercisable or exchangeable for Stock (whether upon the exercise of stock options or otherwise) to the Company's employees, officers, directors, advisors or consultants pursuant to employee plans that are described in the Registration Statement, the Pricing Prospectus and Prospectus, (D) withholding of Stock by the Company in connection with the vesting, settlement or exercise of equity awards, including for the payment of exercise price and tax, remittance and other obligations due as a result of vesting, settlement or exercise of equity awards (in each case, whether by way of "net" or "cashless" exercise, "net settlement" or otherwise) or in connection with the conversion of convertible securities, (E) issuance of Stock in connection with the Reorganization; (F) the issuance, offer or entry into an agreement providing for the issuance of up to 10% of the total number of shares of Stock outstanding immediately following the offering of the Shares contemplated by this Agreement in acquisitions or other strategic transactions, provided that such recipients enter into a lock-up agreement with the Underwriters substantially to the effect set forth in Annex II hereto; (G) the filing of any registration statement on Form S-8 relating to securities granted or to be granted pursuant to any plan in effect on the date of the First Time of Delivery and described in the Pricing Prospectus or any assumed benefit plan pursuant to an acquisition or similar strategic transaction contemplated by clause (F); or (H) the submission of a confidential registration statement in connection with the exercise of any registration rights described in the Pricing Prospectus and any preparations related thereto, provided that such submission or preparations do not require or result in the public filing of a registration statement with the Commission or any other public announcement of such proposed registration by the Company or any third party during the Lock-Up Period (and no such filing, public announcement or activity shall be voluntarily made or taken by the Company or any third party during the Restricted Period), and provided further that the Company shall notify the Representatives prior to making any such submission; and provided, further, that in the case of clauses (B) and (C), the Company shall (a) cause each recipient of such securities that is a member of the Company's board of directors, an executive officer or a beneficial holder of 1% of the fully-diluted capital stock of the Company to execute and deliver to the Representatives, prior to or substantially concurrently with the issuance of such securities, a lock-up agreement substantially to the effect set forth in Annex II hereto (which, for the avoidance of doubt, shall not extend the lock-up period beyond 180 days after the date of the Prospectus) to the extent not already executed and delivered by such recipients as of the date hereof and (b) enter stop transfer instructions with the Company's transfer agent and registrar on such securities with respect to all recipients of such securities, which the Company agrees it will not waive or amend without prior written consent of two of Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Jefferies LLC;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If two of Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Jefferies LLC, in their sole discretion, agree to release or waive the restrictions set forth in a lock-up letter described in Section 8(i) hereof for an officer or director of the Company and provide the Company with notice of the impending release or waiver at least three business days before the effective date of the release or waiver, the Company agrees to announce the impending release or waiver by a press release substantially in the form of Annex I hereto through a major news service at least two business days before the effective date of the release or waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) During a period of three years from the effective date of the Registration Statement, to furnish to its stockholders as soon as practicable after the end of each fiscal year an annual report (including a balance sheet and statements of income, stockholders' equity and cash flows of the Company and its consolidated subsidiaries certified by independent public accountants) and, as soon as practicable after the end of each of the first three quarters of each fiscal year (beginning with the fiscal quarter ending after the effective date of the Registration Statement), to make available to its stockholders consolidated summary financial information of the Company and its subsidiaries for such quarter in reasonable detail; provided, however, that the Company may satisfy the requirements of this Section 5(f) by filing such information through EDGAR;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) During a period of three years from the effective date of the Registration Statement, to furnish to you copies of all reports or other communications (financial or other) furnished to stockholders, and to deliver to you (i) as soon as they are available, copies of any reports and financial statements furnished to or filed with the Commission or any national securities exchange on which any class of securities of the Company is listed; and (ii) such additional information concerning the business and financial condition of the Company as you may from time to time reasonably request (such financial statements to be on a consolidated basis to the extent the accounts of the Company and its subsidiaries are consolidated in reports furnished to its stockholders generally or to the Commission); provided, however, that the Company may satisfy the requirements of this Section 5(g) by filing such information through EDGAR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To use the net proceeds received by it from the sale of the Shares pursuant to this Agreement in the manner specified in the Pricing Prospectus under the caption "Use of Proceeds";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To use its best efforts to list for trading, subject to notice of issuance, the Shares on the Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) To file with the Commission such information on Form 10-Q or Form 10-K as may be required by Rule 463 under the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) If the Company elects to rely upon Rule 462(b), the Company shall file a Rule 462(b) Registration Statement with the Commission in compliance with Rule 462(b) by 10:00 P.M., Washington, D.C. time, on the date of this Agreement, and the Company shall at the time of filing either pay to the Commission the filing fee for the Rule 462(b) Registration Statement or give irrevocable instructions for the payment of such fee pursuant to Rule 3a(c) of the Commission's Informal and Other Procedures (16 CFR 202.3a);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Upon request of any Underwriter, to furnish, or cause to be furnished, to such Underwriter an electronic version of the Company's trademarks, servicemarks and corporate logos for use on the website, if any, operated by such Underwriter solely for the purpose of facilitating the on-line offering of the Shares (the "License"); provided, however, that (i) Underwriter shall use the License solely for the purpose described above, (ii) Underwriter shall not pay any fee for such use, (iii) Underwriter shall not use the License in any manner that would reasonably be expected to, harm the reputation or goodwill of the Company or the Company's rights in the License, and (iv) such right may not be assigned, sublicensed or transferred by the Underwriter; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) To comply with all applicable securities and other laws, rules and regulations in each jurisdiction in which the Directed Shares are offered in connection with the Directed Share Program.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. (a) The Company represents and agrees that, without the prior consent of the Representatives, it has not made and will not make any offer relating to the Shares that would constitute a "free writing prospectus" as defined in Rule 405 under the Act; each Underwriter represents and agrees that, without the prior consent of the Company and the Representatives, it has not made and will not make any offer relating to the Shares that would constitute a free writing prospectus required to be filed with the Commission; any such free writing prospectus the use of which has been consented to by the Company and the Representatives is listed on Schedule II(a) hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company has complied and will comply with the requirements of Rule 433 under the Act applicable to any Issuer Free Writing Prospectus, including timely filing with the Commission or retention where required and legending; and the Company represents that it has satisfied and agrees that it will satisfy the conditions under Rule 433 under the Act to avoid a requirement to file with the Commission any electronic road show;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company agrees that if at any time following issuance of an Issuer Free Writing Prospectus or Written Testing-the-Waters Communication any event occurred or occurs as a result of which such Issuer Free Writing Prospectus or Written Testing-the-Waters Communication would conflict with the information in the Registration Statement, the Pricing Prospectus or the Prospectus or would include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances then prevailing, not misleading, the Company will give prompt notice thereof to the Representatives and, if requested by the Representatives, will prepare and furnish without charge to each Underwriter an Issuer Free Writing Prospectus, Written Testing-the-Waters Communication or other document which will correct such conflict, statement or omission**;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company represents and agrees that (i) it has not engaged in, or authorized any other person to engage in, any Testing-the-Waters Communications, other than Testing-the-Waters Communications with the prior consent of the Representatives with entities that the Company reasonably believes are qualified institutional buyers as defined in Rule 144A under the Act or institutions that are accredited investors as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Act; and (ii) it has not distributed, or authorized any other person to distribute, any Written Testing-the-Waters Communication, other than those distributed with the prior consent of the Representatives that are listed on Schedule III(d) hereto; and the Company reconfirms that the Underwriters have been authorized to act on its behalf in engaging in Testing-the-Waters Communications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each Underwriter represents and agrees that any Testing-the-Waters Communications undertaken by it were with entities that such Underwriter reasonably believes are qualified institutional buyers as defined in Rule 144A under the Act or institutions that are accredited investors as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Each Company Party, jointly and severally, covenants and agrees with the several Underwriters that the Company Parties, jointly and severally, will pay or cause to be paid the following: (i) the fees, disbursements and expenses of the Company Parties' counsel, and accountants in connection with the registration of the Shares under the Act and all other expenses in connection with the preparation, printing, reproduction and filing of the Registration Statement, any Preliminary Prospectus, any Written Testing-the-Waters Communication, any Issuer Free Writing Prospectus and the Prospectus and amendments and supplements thereto and the mailing and delivering of copies thereof to the Underwriters and dealers; (ii) the cost of printing or producing any Agreement among Underwriters, this Agreement, the Blue Sky Memorandum, closing documents (including any compilations thereof) and any other documents in connection with the offering, purchase, sale and delivery of the Shares; (iii) all expenses in connection with the qualification of the Shares for offering and sale under state securities laws as provided in Section 5(b) hereof, including the reasonable and documented fees and disbursements of counsel for the Underwriters in connection with such qualification and in connection with the Blue Sky survey (iv) all fees and expenses in connection with listing the Shares on the Exchange; (v) the reasonable and documented filing fees incident to, and the fees and disbursements of counsel for the Underwriters in connection with, any required review by FINRA of the terms of the sale of the Shares (provided that aggregate fees and disbursements of counsel for the Underwriters pursuant to clause (iii) and this clause (v) of this Section shall not exceed $50,000 in the aggregate); (vi) the cost of preparing stock certificates, to the extent applicable; (vii) the cost and charges of any transfer agent or registrar, (viii) all expenses incurred by the Company Parties in connection with any "roadshow" presentation to potential investors (other than expenses addressed in the final sentence of this Section 7), and (ix) all other costs and expenses incident to the performance of its obligations hereunder which are not otherwise specifically provided for in this Section. In addition, the Company shall pay or cause to be paid all fees and disbursements of counsel incurred by the Underwriters in connection with the Directed Share Program and stamp duties, similar taxes or duties or other taxes, if any, incurred by the Underwriters in connection with the Directed Share Program. It is understood, however, that, except as provided in this Section, and Sections 9, 10 and 13 hereof, the Underwriters will pay (i) all of their own costs and expenses, including the fees of their counsel, documentary, stamp, sales, transactions or similar taxes on resale of any of the Shares by them, and any advertising expenses connected with any offers they may make, and (ii) in connection with any "roadshow" as defined in Rule 433(h) under the Act (a "roadshow") undertaken in connection with the marketing of the offering of the Shares, the travel, lodging and meal expenses of the Underwriters; provided, however, the Representatives and the Company Parties agree that the Underwriters shall pay or cause to be paid fifty percent (50%) of the cost of any aircraft chartered in connection with such roadshow (with the Company Parties paying the remaining fifty percent (50%) of such cost).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The obligations of the Underwriters hereunder**,** as to the Shares to be delivered at each Time of Delivery, shall be subject, in their discretion, to the condition that all representations and warranties and other statements of the Company Parties herein are, at and as of the Applicable Time and such Time of Delivery, true and correct, the condition that each Company Party shall have performed all of its obligations hereunder theretofore to be performed, and the following additional conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Prospectus shall have been filed with the Commission pursuant to Rule 424(b) under the Act within the applicable time period prescribed for such filing by the rules and regulations under the Act and in accordance with Section 5(a) hereof; all material required to be filed by the Company pursuant to Rule 433(d) under the Act shall have been filed with the Commission within the applicable time period prescribed for such filing by Rule 433; if the Company has elected to rely upon Rule 462(b) under the Act, the Rule 462(b) Registration Statement shall have become effective by 10:00 P.M., Washington, D.C. time, on the date of this Agreement; no stop order suspending the effectiveness of the Registration Statement or any part thereof shall have been issued and no proceeding for that purpose or pursuant to Section 8A of the Act shall have been initiated or, to the knowledge of the Company Parties, threatened by the Commission; no stop order suspending or preventing the use of the Pricing Prospectus, Prospectus or any Issuer Free Writing Prospectus shall have been initiated or, to the knowledge of the Company Parties, threatened by the Commission; and all requests for additional information on the part of the Commission shall have been complied with to your reasonable satisfaction;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Ropes & Gray LLP, counsel for the Underwriters, shall have furnished to you such written opinion and negative assurance letter, each dated such Time of Delivery, in form and substance satisfactory to you, and such counsel shall have received such papers and information as they may reasonably request to enable them to pass upon such matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Davis Polk & Wardwell LLP, counsel for the Company, shall have furnished to you their written opinion and negative assurance letter, each dated such Time of Delivery, in form and substance satisfactory to you;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On the date of the Prospectus at a time prior to the execution of this Agreement, at 9:30 a.m., New York City time, on the effective date of any post-effective amendment to the Registration Statement filed subsequent to the date of this Agreement and also at each Time of Delivery, each of KPMG LLP and RSM US LLP shall have furnished to you a letter or letters, dated the respective dates of delivery thereof, in form and substance satisfactory to you;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) (i) No Company Party nor any of its subsidiaries shall have sustained since the date of the latest audited financial statements included in the Pricing Prospectus any loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute or court or governmental action, order or decree, otherwise than as set forth or contemplated in the Pricing Prospectus, and (ii) since the respective dates as of which information is given in the Pricing Prospectus there shall not have been any change in the capital stock (other than as a result of (i) the exercise, vesting or settlement, if any, of stock options, restricted stock units or other equity awards (including any "net" or "cashless" exercises or settlements) or the award, if any, of stock options, restricted stock units or other equity awards in the ordinary course of business pursuant to the Company's equity plans that are described in the Pricing Prospectus and the Prospectus, (ii) the issuance, if any, of stock upon exercise, conversion, exchange or reclassification of Company securities as described in the Pricing Prospectus and the Prospectus or (iii) the Reorganization) or long-term debt of the Company or any of its subsidiaries or any change or effect, or any development involving a prospective change or effect, in or affecting (x) the business, properties, general affairs, management, financial position, stockholders' equity or results of operations of the Company Parties and their subsidiaries, taken as a whole, except as set forth or contemplated in the Pricing Prospectus, or (y) the ability of any Company Party to perform its obligations under this Agreement, including the issuance and sale of the Shares, or to consummate the transactions contemplated in the Pricing Prospectus and the Prospectus, the effect of which, in any such case described in clause (i) or (ii), is in your judgment so material and adverse as to make it impracticable or inadvisable to proceed with the public offering or the delivery of the Shares being delivered at such Time of Delivery on the terms and in the manner contemplated in the Pricing Prospectus and the Prospectus;

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[(f) On or after the Applicable Time (i) no downgrading shall have occurred in the rating accorded the Company Parties' debt securities or preferred stock by any "nationally recognized statistical rating organization," as defined in Section 3(a)(62) of the Exchange Act, and (ii) no such organization shall have publicly announced that it has under surveillance or review, with possible negative implications, its rating of any of the Company Parties' debt securities or preferred stock;]<sup>2</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) On or after the Applicable Time there shall not have occurred any of the following: (i) a suspension or material limitation in trading in securities generally on the New York Stock Exchange or the Exchange; (ii) a suspension or material limitation in trading in the Company's securities on the Exchange; (iii) a general moratorium on commercial banking activities declared by either Federal or New York State authorities or a material disruption in commercial banking or securities settlement or clearance services in the United States; (iv) the outbreak or escalation of hostilities involving the United States or the declaration by the United States of a national emergency or war or (v) the occurrence of any other calamity or crisis or any change in financial, political or economic conditions in the United States or elsewhere, if the effect of any such event specified in clause (iv) or (v) in your judgment makes it impracticable or inadvisable to proceed with the public offering or the delivery of the Shares being delivered at such Time of Delivery on the terms and in the manner contemplated in the Pricing Prospectus and the Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Shares to be sold at such Time of Delivery shall have been duly listed**,** subject to notice of issuance, for quotation on the Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Company shall have obtained and delivered to the Underwriters executed copies of an agreement from each officer, director, and stockholder of the Company listed on Schedule III hereto, substantially to the effect set forth in Annex II hereto in form and substance satisfactory to you;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Company shall have complied with the provisions of Section 5(c) hereof with respect to the furnishing of prospectuses on the New York Business Day next succeeding the date of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Reorganization shall have been consummated on terms substantially consistent with those described in the Registration Statement, the Pricing Prospectus and the Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Company shall have furnished or caused to be furnished to you at such Time of Delivery certificates of officers of the Company satisfactory to you as to the accuracy of the representations and warranties of the Company herein at and as of such Time of Delivery, as to the performance by the Company of all of its obligations hereunder to be performed at or prior to such Time of Delivery, as to the matters set forth in subsections (a) and (e) of this Section and as to such other matters as you may reasonably request;

*<sup>2</sup>* *To include no rated securities rep in lieu of no downgrade CP if no rated securities will be outstanding at the time of IPO.* 

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Company shall have furnished or caused to be furnished to you at such Time of Delivery a certificate of the Chief Financial Officer of the Company satisfactory to you; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Company will deliver to the Underwriters (or its agent), on the date of execution of this Agreement, a properly completed and executed Certification Regarding Beneficial Owners of Legal Entity Customers, together with copies of identifying documentation, and the Company undertakes to provide such additional supporting documentation as the Underwriters may reasonably request in connection with the verification of the foregoing Certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. (a) Each Company Party agrees, jointly and severally, to indemnify and hold harmless each Underwriter against any losses, claims, damages or liabilities, joint or several, to which such Underwriter may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any amendment or supplement thereto, any Issuer Free Writing Prospectus, any "roadshow" as defined in Rule 433(h) under the Act (a "roadshow"), any "issuer information" filed or required to be filed pursuant to Rule 433(d) under the Act or any Testing-the-Waters Communication, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse each Underwriter for any legal or other expenses reasonably incurred by such Underwriter in connection with investigating or defending any such action or claim as such expenses are incurred; provided, however, that the Company Parties shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any amendment or supplement thereto, or any Issuer Free Writing Prospectus or any Testing-the-Waters Communication, in reliance upon and in conformity with the Underwriter Information..

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Underwriter, severally and not jointly, will indemnify and hold harmless each Company Party against any losses, claims, damages or liabilities to which such Company Party may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any amendment or supplement thereto, or any Issuer Free Writing Prospectus, or any roadshow or any Testing-the-Waters Communication, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any amendment or supplement thereto, or any Issuer Free Writing Prospectus, or any roadshow or any Testing-the-Waters Communication, in reliance upon and in conformity with the Underwriter Information; and will reimburse such Company Party for any legal or other expenses reasonably incurred by such Company Party in connection with investigating or defending any such action or claim as such expenses are incurred. As used in this Agreement with respect to an Underwriter and an applicable document, "Underwriter Information" shall mean the written information furnished to the Company Parties by such Underwriter through the Representatives expressly for use therein; it being understood and agreed upon that the only such information furnished by any Underwriter consists of the following information in the Prospectus furnished on behalf of each Underwriter: the concession and reallowance figures appearing in the [•] sentence of the [•] paragraph under the caption "Underwriting", and the [•] sentence of the [•] paragraph under the caption "Underwriting".

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly after receipt by an indemnified party under subsection (a) or (b) of this Section 9 of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; provided that the failure to notify the indemnifying party shall not relieve it from any liability that it may have under the preceding paragraphs of this Section 9 except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided further that the failure to notify the indemnifying party shall not relieve it from any liability that it may have to an indemnified party otherwise than under the preceding paragraphs of this Section 9. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, (1) in the case of a civil proceeding (excluding, for the avoidance of doubt, any governmental, regulatory or non-civil proceeding) (each a "Civil Proceeding"), the indemnifying party shall be entitled to participate therein and, to the extent that it may elect by written notice delivered to the indemnified party, to assume the defense thereof with counsel satisfactory to such indemnified party and any others the indemnifying party may designate in such proceeding, in which case, the indemnifying party shall pay the fees and disbursements of such counsel related to such proceeding (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party); and (2) in the case of any governmental, regulatory or non-civil proceeding, upon request of the indemnified party, the indemnifying party shall retain counsel satisfactory to the indemnified party to represent the indemnified party in such governmental, regulatory or non-civil proceeding and shall pay the fees and disbursements of such counsel related to such governmental, regulatory or non-civil proceeding. After notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, any indemnified party shall have the right to retain its own counsel, but the fees and expenses of such counsel subsequently incurred by such indemnified party in connection with the defense thereof, other than reasonable costs of investigation, shall be at the expense of such indemnified party unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel, (ii) the named parties to any such proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them or (iii) the Company has, in connection with a Civil Proceeding, failed to assume defense of such proceedings in a reasonably prompt manner with counsel reasonably acceptable to such indemnified Party. The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by the third sentence of this paragraph, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement. No indemnifying party shall, without the written consent of the indemnified party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified party is an actual or potential party to such action or claim) unless such settlement, compromise or judgment (i) includes an unconditional release of the indemnified party from all liability arising out of such action or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any indemnified party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the indemnification provided for in this Section 9 is unavailable to or insufficient to hold harmless an indemnified party under subsection (a) or (b) above in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company Parties on the one hand and the Underwriters on the other from the offering of the Shares. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, then each indemnifying party shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company Parties on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company Parties on the one hand and the Underwriters on the other hand in connection with the offering of the Shares shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company Parties bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus. The relative fault of the Company Parties on the one hand and the Underwriters on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company Parties on the one hand or the Underwriters on the other and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company Parties and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by *pro rata* allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters' obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The obligations of the Company Parties under this Section 9 shall be in addition to any liability which the Company Parties may otherwise have and shall extend, upon the same terms and conditions, to each employee, officer and director of each Underwriter and each person, if any, who controls any Underwriter within the meaning of the Act and each broker-dealer or other affiliate of any Underwriter; and the obligations of the Underwriters under this Section 9 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each officer and director of the Company Parties (including any person who, with his or her consent, is named in the Registration Statement as about to become a director of the Company) and to each person, if any, who controls the Company Parties within the meaning of the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. (a) The Company Parties agree, jointly and severally, to indemnify and hold harmless Morgan Stanley, each person, if any, who controls Morgan Stanley within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act and each affiliate of Morgan Stanley within the meaning of Rule 405 of the Securities Act ("Morgan Stanley Entities") from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) (i) that arise out of, or are based upon, any untrue statement or alleged untrue statement of a material fact contained in any material prepared by or with the consent of the Company Parties for distribution to Participants in connection with the Directed Share Program or arise out of, or are based upon, any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) that arise out of, or are based upon, the failure of any Participant to pay for and accept delivery of Directed Shares that the Participant agreed to purchase; or (iii) related to, arising out of, or in connection with the Directed Share Program, other than losses, claims, damages or liabilities (or expenses relating thereto) that are finally judicially determined to have resulted from the bad faith or gross negligence of Morgan Stanley Entities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In case any proceeding (including any governmental investigation) shall be instituted involving any Morgan Stanley Entity in respect of which indemnity may be sought pursuant to Section 10(a), the Morgan Stanley Entity seeking indemnity, shall promptly notify the Company Parties in writing and the Company Parties, upon request of the Morgan Stanley Entity, shall retain counsel reasonably satisfactory to the Morgan Stanley Entity to represent the Morgan Stanley Entity and any others the Company Parties may designate in such proceeding and shall pay the fees and disbursements of such counsel related to such proceeding. In any such proceeding, any Morgan Stanley Entity shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Morgan Stanley Entity unless (i) the Company Parties shall have agreed to the retention of such counsel or (ii) the named parties to any such proceeding (including any impleaded parties) include both the Company Parties and the Morgan Stanley Entity and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. The Company Parties shall not, in respect of the legal expenses of the Morgan Stanley Entities in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all Morgan Stanley Entities. Any such separate firm for the Morgan Stanley Entities shall be designated in writing by Morgan Stanley. The Company Parties shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the Company Parties agree to indemnify the Morgan Stanley Entities from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time a Morgan Stanley Entity shall have requested the Company Parties to reimburse it for fees and expenses of counsel as contemplated by the second and third sentences of this paragraph, the Company Parties agree that they shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by the Company Parties of the aforesaid request and (ii) the Company Parties shall not have reimbursed the Morgan Stanley Entity in accordance with such request prior to the date of such settlement. The Company Parties shall not, without the prior written consent of Morgan Stanley, effect any settlement of any pending or threatened proceeding in respect of which any Morgan Stanley Entity is or could have been a party and indemnity could have been sought hereunder by such Morgan Stanley Entity, unless such settlement includes an unconditional release of the Morgan Stanley Entities from all liability on claims that are the subject matter of such proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent the indemnification provided for in Section 10(a) is unavailable to a Morgan Stanley Entity or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then the Company Parties in lieu of indemnifying the Morgan Stanley Entity thereunder, shall contribute to the amount paid or payable by the Morgan Stanley Entity as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company Parties on the one hand and the Morgan Stanley Entities on the other hand from the offering of the Directed Shares or (ii) if the allocation provided by clause 10(c)(i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause 10(c)(i) above but also the relative fault of the Company Parties on the one hand and of the Morgan Stanley Entities on the other hand in connection with any statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company Parties on the one hand and the Morgan Stanley Entities on the other hand in connection with the offering of the Directed Shares shall be deemed to be in the same respective proportions as the net proceeds from the offering of the Directed Shares (before deducting expenses) and the total underwriting discounts and commissions received by the Morgan Stanley Entities for the Directed Shares, bear to the aggregate initial public offering price of the Directed Shares. If the loss, claim, damage or liability is caused by an untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact, the relative fault of the Company Parties on the one hand and the Morgan Stanley Entities on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement or the omission or alleged omission relates to information supplied by the Company Parties or by the Morgan Stanley Entities and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company Parties and the Morgan Stanley Entities agree that it would not be just or equitable if contribution pursuant to this Section 10 were determined by pro rata allocation (even if the Morgan Stanley Entities were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in Section 10(c). The amount paid or payable by the Morgan Stanley Entities as a result of the losses, claims, damages and liabilities referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by the Morgan Stanley Entities in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 10, no Morgan Stanley Entity shall be required to contribute any amount in excess of the amount by which the total price at which the Directed Shares distributed to the public were offered to the public exceeds the amount of any damages that such Morgan Stanley Entity has otherwise been required to pay. The remedies provided for in this Section 10 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The indemnity and contribution provisions contained in this Section 10 shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of any Morgan Stanley Entity or the Company Parties, their respective officers or directors or any person controlling the Company Parties and (iii) acceptance of and payment for any of the Directed Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. (a) If any Underwriter shall default in its obligation to purchase the Shares which it has agreed to purchase hereunder at a Time of Delivery, you may in your discretion arrange for you or another party or other parties to purchase such Shares on the terms contained herein. If within thirty-six hours after such default by any Underwriter you do not arrange for the purchase of such Shares, then the Company shall be entitled to a further period of thirty-six hours within which to procure another party or other parties satisfactory to you to purchase such Shares on such terms. In the event that, within the respective prescribed periods, you notify the Company that you have so arranged for the purchase of such Shares, or the Company notifies you that it has so arranged for the purchase of such Shares, you or the Company shall have the right to postpone such Time of Delivery for a period of not more than seven days, in order to effect whatever changes may thereby be made necessary in the Registration Statement or the Prospectus, or in any other documents or arrangements, and the Company agrees to file promptly any amendments or supplements to the Registration Statement or the Prospectus which in your opinion may thereby be made necessary. The term "Underwriter" as used in this Agreement shall include any person substituted under this Section with like effect as if such person had originally been a party to this Agreement with respect to such Shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, after giving effect to any arrangements for the purchase of the Shares of a defaulting Underwriter or Underwriters by you and the Company as provided in subsection (a) above, the aggregate number of such Shares which remains unpurchased does not exceed one-eleventh of the aggregate number of all the Shares to be purchased at such Time of Delivery, then the Company shall have the right to require each non-defaulting Underwriter to purchase the number of Shares which such Underwriter agreed to purchase hereunder at such Time of Delivery and, in addition, to require each non-defaulting Underwriter to purchase its pro rata share (based on the number of Shares which such Underwriter agreed to purchase hereunder) of the Shares of such defaulting Underwriter or Underwriters for which such arrangements have not been made; but nothing herein shall relieve a defaulting Underwriter from liability for its default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If, after giving effect to any arrangements for the purchase of the Shares of a defaulting Underwriter or Underwriters by you and the Company as provided in subsection (a) above, the aggregate number of such Shares which remains unpurchased exceeds one-eleventh of the aggregate number of all the Shares to be purchased at such Time of Delivery, or if the Company shall not exercise the right described in subsection (b) above to require non-defaulting Underwriters to purchase Shares of a defaulting Underwriter or Underwriters, then this Agreement (or, with respect to the Second Time of Delivery, the obligations of the Underwriters to purchase and of the Company to sell the Optional Shares) shall thereupon terminate, without liability on the part of any non-defaulting Underwriter or the Company, except for the expenses to be borne by the Company and the Underwriters as provided in Section 7 hereof and the indemnity and contribution agreements in Section 9 hereof; but nothing herein shall relieve a defaulting Underwriter from liability for its default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. The respective indemnities, rights of contribution, agreements, representations, warranties and other statements of the Company Parties and the several Underwriters, as set forth in this Agreement or made by or on behalf of them, respectively, pursuant to this Agreement, shall remain in full force and effect, regardless of any investigation (or any statement as to the results thereof) made by or on behalf of any Underwriter or any director, officer, employee, affiliate or controlling person of any Underwriter, or any Company Party, or any officer or director or controlling person of any Company Party, and shall survive delivery of and payment for the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. If this Agreement shall be terminated pursuant to Section 11 hereof, the Company Parties shall not then be under any liability to any Underwriter except as provided in Sections 7, 9 and 10 hereof; but, if for any other reason, any Shares are not delivered by or on behalf of the Company as provided herein or the Underwriters decline to purchase the Shares for any reason permitted under this Agreement, the Company will reimburse the Underwriters through you for all reasonably incurred and documented out-of-pocket expenses approved in writing by you, including fees and disbursements of counsel, reasonably incurred and documented by the Underwriters in making preparations for the purchase, sale and delivery of the Shares not so delivered, but the Company shall then be under no further liability to any Underwriter except as provided in Sections 7, 9 and 10 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. In all dealings hereunder, the Representatives shall act on behalf of each of the Underwriters, and the parties hereto shall be entitled to act and rely upon any statement, request, notice or agreement on behalf of any Underwriter made or given by you jointly or by the Representatives.

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All statements, requests, notices and agreements hereunder shall be in writing, and if to the Underwriters shall be delivered or sent by mail, telex or facsimile transmission to you as the representatives**:** Goldman Sachs & Co. LLC**,** 200 West Street, New York, New York 10282, Attention: Registration Department; Morgan Stanley & Co. LLC, 1585 Broadway, New York, New York 10036, Attention: Equity Syndicate Desk, with a copy to the Legal Department; and Jefferies LLC, 520 Madison Avenue, New York, New York 10022, Attention General Counsel; and if to the Company shall be delivered or sent by mail, telex or facsimile transmission to the address of the Company set forth in the Registration Statement, Attention: Secretary; provided, however, that any notice to an Underwriter pursuant to Section 9(c) hereof shall be delivered or sent by mail, telex or facsimile transmission to such Underwriter at its address set forth in its Underwriters' Questionnaire, or telex constituting such Questionnaire, which address will be supplied to the Company by you upon request. Any such statements, requests, notices or agreements shall take effect upon receipt thereof.

In accordance with the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), the underwriters are required to obtain, verify and record information that identifies their respective clients, including the Company, which information may include the name and address of their respective clients, as well as other information that will allow the underwriters to properly identify their respective clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. This Agreement shall be binding upon, and inure solely to the benefit of, the Underwriters, the Company Parties and, to the extent provided in Sections 9, 10 and 12 hereof, the officers and directors of the Company Parties and each person who controls any Company Party or any Underwriter, or any director, officer, employee, or affiliate of any Underwriter, and their respective heirs, executors, administrators, successors and assigns, and no other person shall acquire or have any right under or by virtue of this Agreement. No purchaser of any of the Shares from any Underwriter shall be deemed a successor or assign by reason merely of such purchase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. Time shall be of the essence of this Agreement. As used herein, the term "business day" shall mean any day when the Commission's office in Washington, D.C. is open for business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. Each of the Company Parties acknowledges and agrees that (i) the purchase and sale of the Shares pursuant to this Agreement is an arm's-length commercial transaction between the Company Parties, on the one hand, and the several Underwriters, on the other, (ii) in connection therewith and with the process leading to such transaction each Underwriter is acting solely as a principal and not the agent or fiduciary of any Company Party, (iii) no Underwriter has assumed an advisory or fiduciary responsibility in favor of any Company Party with respect to the offering contemplated hereby or the process leading thereto (irrespective of whether such Underwriter has advised or is currently advising any Company Party on other matters) or any other obligation to the Company except the obligations expressly set forth in this Agreement, (iv) the Company Parties have consulted its own legal and financial advisors to the extent it deemed appropriate, and (v) none of the activities of the Underwriters in connection with the transactions contemplated herein constitutes a recommendation, investment advice, or solicitation of any action by the Underwriters with respect to any entity or natural person. Each Company Party agrees that it will not claim that the Underwriters, or any of them, has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to such Company Parties, in connection with such transaction or the process leading thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. This Agreement supersedes all prior agreements and understandings (whether written or oral) between the Company Parties and the Underwriters, or any of them, with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. This Agreement and any transaction contemplated by this Agreement and any claim, controversy or dispute arising under or related thereto shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflict of laws that would results in the application of any other law than the laws of the State of New York. Each Company Party agrees that any suit or proceeding arising in respect of this Agreement or any transaction contemplated by this Agreement will be tried exclusively in the U.S. District Court for the Southern District of New York or, if that court does not have subject matter jurisdiction, in any state court located in The City and County of New York and each Company Party agrees to submit to the jurisdiction of, and to venue in, such courts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. Each Company Party and each of the Underwriters hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. This Agreement may be executed by any one or more of the parties hereto in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including any electronic signature covered by the U.S. federal ESIGN Act of 2000, Uniform Electronic Transactions Act, the Electronic Signatures and Records Act or other applicable law, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. Notwithstanding anything herein to the contrary, the Company Parties are authorized to disclose to any persons the U.S. federal and state income tax treatment and tax structure of the potential transaction and all materials of any kind (including tax opinions and other tax analyses) provided to the Company Parties relating to that treatment and structure, without the Underwriters imposing any limitation of any kind. However, any information relating to the tax treatment and tax structure shall remain confidential (and the foregoing sentence shall not apply) to the extent necessary to enable any person to comply with securities laws. For this purpose, "tax structure" is limited to any facts that may be relevant to that treatment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. Recognition of the U.S. Special Resolution Regimes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that any Underwriter that is a Covered Entity becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer from such Underwriter of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, and any such interest and obligation, were governed by the laws of the United States or a state of the United States.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that any Underwriter that is a Covered Entity or a BHC Act Affiliate of such Underwriter becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against such Underwriter are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As used in this section:

"BHC Act Affiliate" has the meaning assigned to the term "affiliate" in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k).

"Covered Entity" means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

"Default Right" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

"U.S. Special Resolution Regime" means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.

If the foregoing is in accordance with your understanding, please sign and return to us one for the Company and each of the Representatives plus one for each counsel counterparts hereof, and upon the acceptance hereof by you, on behalf of each of the Underwriters, this letter and such acceptance hereof shall constitute a binding agreement between each of the Underwriters and the Company. It is understood that your acceptance of this letter on behalf of each of the Underwriters is pursuant to the authority set forth in a form of Agreement among Underwriters, the form of which shall be submitted to the Company for examination upon request, but without warranty on your part as to the authority of the signers thereof.

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| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| **Arxis, Inc.** | **Arxis, Inc.** |
| By: |  |
|  | Name: |
|  | Title: |
| **Arcline Engineered Polymer Topco L.P.** | **Arcline Engineered Polymer Topco L.P.** |
| By: |  |
|  | Name: |
|  | Title: |
| **Hawkeye TopCo L.P.** | **Hawkeye TopCo L.P.** |
| By: |  |
|  | Name: |
|  | Title: |
| **Connector TopCo, L.P.** | **Connector TopCo, L.P.** |
| By: |  |
|  | Name: |
|  | Title: |
| **Ovation TopCo, L.P.** | **Ovation TopCo, L.P.** |
| By: |  |
|  | Name: |
|  | Title: |

---

---

| | |
|:---|:---|
| Accepted as of the date hereof: | Accepted as of the date hereof: |
| Goldman Sachs & Co. LLC | Goldman Sachs & Co. LLC |
| By: |  |
|  | Name: |
|  | Title: |

---

------

---

| | |
|:---|:---|
| Morgan Stanley & Co. LLC | Morgan Stanley & Co. LLC |
| By: |  |
|  | Name: |
|  | Title: |
| Jefferies LLC | Jefferies LLC |
| By: |  |
|  | Name: |
|  | Title: |

---

On behalf of each of the Underwriters

------

**SCHEDULE I** 

---

| | | |
|:---|:---|:---|
| **Underwriter** | Total<br>Number of<br>Firm<br>Shares<br>to be<br>Purchased | Number of<br>Optional<br>Shares to be<br>Purchased if<br>Maximum<br>Option<br>Exercised |
|  Goldman Sachs & Co. LLC |  |  |
|  Morgan Stanley & Co. LLC |  |  |
|  Jefferies LLC |  |  |
|  Citigroup Global Markets Inc. |  |  |
|  RBC Capital Markets, LLC |  |  |
|  Robert W. Baird & Co. Incorporated |  |  |
|  Guggenheim Securities, LLC |  |  |
|  Wells Fargo Securities, LLC |  |  |
|  William Blair & Company, L.L.C. |  |  |
|  Rothschild & Co US Inc. |  |  |
|  Nomura Securities International, Inc. |  |  |
|  WR Securities, LLC |  |  |
|  Citizens JMP Securities, LLC |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  |  |

---

------

**SCHEDULE II** 

(a) Issuer Free Writing Prospectuses not included in the Pricing Disclosure Package:

[Electronic roadshow dated [•], 2026]

(b) Additional documents incorporated by reference:

[None]

(c) Information other than the Pricing Prospectus that comprise the Pricing Disclosure Package:

The initial public offering price per share for the Shares is $[•]

The number of Firm Shares is [•] shares.

The number of Optional Shares is [•] shares

(d) Written Testing-the-Waters Communications:

[•]

------

SCHEDULE III

**Name of Stockholder Address**<br>

[List officers, directors and stockholders of the Company and, if applicable, Participants]

------

**ANNEX I** 

**Form of Press Release** 

**Arxis, Inc.** 

**[Date]** 

Arxis, Inc. (the "Company") announced today that [Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Jefferies LLC], the lead book-running managers in the Company's recent public sale of [•] shares of common stock, are [waiving] [releasing] a lock-up restriction with respect to [•] shares of the Company's common stock held by [certain officers or directors] [an officer or director] of the Company. The [waiver] [release] will take effect on [•], 2026, and the shares may be sold on or after such date.

**This press release is not an offer for sale of the securities in the United States or in any other jurisdiction where such offer is prohibited, and such securities may not be offered or sold in the United States absent registration or an exemption from registration under the United States Securities Act of 1933, as amended.** 

------

**ANNEX II** 

**Arxis, Inc.** 

**Lock-Up Agreement** 

**[•], 2026** 

Goldman Sachs & Co. LLC

Morgan Stanley & Co. LLC

Jefferies LLC

As Representatives of the several Underwriters

named in Schedule I to the Underwriting Agreement

c/o Goldman Sachs & Co. LLC

200 West Street

New York, NY 10282

c/o Morgan Stanley & Co. LLC

1585 Broadway

New York, New York 10036

c/o Jefferies LLC

520 Madison Avenue

New York, New York 10022

Re: <u>Arxis, Inc.—Lock-Up Agreement</u>

Ladies and Gentlemen:

The undersigned understands that you, as representatives (the "Representatives"), propose to enter into an underwriting agreement (the "Underwriting Agreement") on behalf of the several Underwriters named in Schedule I to such agreement (collectively, the "Underwriters"), with Arxis, Inc., a Delaware corporation (the "Company"), providing for a public offering (the "Public Offering") of shares (the "Shares") of the Class A Common Stock, par value $0.01 per share, of the Company (the "Class A Common Stock") pursuant to a Registration Statement on Form S-1 (the "Registration Statement") to be filed with the Securities and Exchange Commission (the "SEC"). The shares of Class A Common Stock to be outstanding after giving effect to the sales contemplated by the Underwriting Agreement and the Reorganization (as defined in the Underwriting Agreement), together with the shares of Class B Common Stock ("Class B Common Stock") and Class C Common Stock ("Class C Common Stock") of the Company are hereinafter referred to as the "Common Stock."

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In consideration of the agreement by the Underwriters to offer and sell the Shares, and of other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the undersigned agrees that, during the period commencing on the date hereof of this letter agreement (this "Lock-Up Agreement") and ending immediately after the close of the Trading Day on the 180th day after the date of the final prospectus (the "180th Day") or, if the 180th Day is not a Trading Day, immediately after the close of the last Trading Day immediately preceding the 180th Day (such period, the "Lock-Up Period"), the undersigned shall not, and shall not cause or direct any of its affiliates to, (i) offer, sell, contract to sell, pledge, grant any option, right or warrant to purchase, purchase any option or contract to sell, lend or otherwise transfer or dispose of any shares of Common Stock, or any options or warrants to purchase any shares of Common Stock, or any securities convertible into, exchangeable for or that represent the right to receive shares of Common Stock (such shares of Common Stock, options, rights, warrants or other securities, collectively, "Lock-Up Securities"), including without limitation any such Lock-Up Securities now owned or hereafter acquired by the undersigned, (ii) engage in any hedging or other transaction or arrangement (including, without limitation, any short sale or the purchase or sale of, or entry into, any put or call option, or combination thereof, forward, swap or any other derivative transaction or instrument, however described or defined) which is designed to or which reasonably could be expected to lead to or result in a sale, loan, pledge or other disposition (whether by the undersigned or someone other than the undersigned), or transfer of any of the economic consequences of ownership, in whole or in part, directly or indirectly, of any Lock-Up Securities, whether any such transaction or arrangement (or instrument provided for thereunder) would be settled by delivery of Common Stock or other securities, in cash or otherwise (any such sale, loan, pledge or other disposition, or transfer of economic consequences, a "Transfer"), (iii) make any demand for or exercise any right with respect to the registration of any Lock-Up Securities or (iv) otherwise publicly announce any intention to engage in or cause any action, activity, transaction or arrangement described in clause (i), (ii) or (iii) above. The undersigned represents and warrants that the undersigned is not, and has not caused or directed any of its affiliates to be or become, currently a party to any agreement or arrangement that provides for, is designed to or reasonably could be expected to lead to or result in any Transfer during the Lock-Up Period. For purposes of this Letter Agreement, a "Trading Day" is a day on which the Nasdaq is open for the buying and selling of securities.

Notwithstanding the foregoing, the undersigned may:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) transfer the undersigned's Lock-Up Securities (i) as one or
more *bona fide* gifts or charitable contributions, or for *bona fide* estate planning purposes, (ii) upon death by will, testamentary document or intestate succession, (iii) if the undersigned is a natural person, to any member
of the undersigned's immediate family (for purposes of this Lock-Up Agreement, "immediate family" shall mean any relationship by blood, current or former marriage, domestic partnership or
adoption, not more remote than first cousin) or to any trust, partnership, limited liability company or other entity for the direct or indirect benefit of the undersigned or the immediate family of the undersigned or, if the undersigned is a trust,
to a trustor or beneficiary of the trust or the estate of a beneficiary of such trust, (iv) to a partnership, limited liability company or other entity of which the undersigned and the immediate family of the undersigned are the legal and
beneficial owner of all of the outstanding equity securities or similar interests, (v) to a nominee or custodian of a person or entity to whom a disposition or transfer would be permissible under clauses (a)(i) through (iv) above, (vi) if
the undersigned is a corporation, partnership, limited liability company, trust or other business entity, (A) to another corporation, partner, limited partner, manager, member, limited liability company, equityholder, shareholder or other
business entity that is an affiliate (as defined in Rule 405 under the Securities Act of 1933, as amended) of the undersigned, or to any investment fund or other entity which fund or entity controls, is controlled by, manages, is managed by or is
under common control with the undersigned (including, for the avoidance of doubt, if the undersigned is a partnership, to its general partner or a successor partnership or fund, or any other funds managed by such partnership and, if the undersigned
is a trust, to a trustor or beneficiary of the trust) or affiliates of the undersigned, or (B) as part of a distribution by the undersigned to its stockholders, current or former partners, members or other equityholders or to the estate of any
such stockholders, partners, members or other equityholders, (vii) by operation of law, such as pursuant to a qualified domestic order, divorce settlement, divorce decree or separation agreement or other order of a court or regulatory
authority, (viii) to the Company upon death, disability or termination of employment, (ix) if the undersigned is not an officer or director of the Company, in connection with a sale or transfer of the undersigned's shares of Common
Stock acquired (A) from the Underwriters in the Public Offering or (B) in open market transactions after the closing date of the Public Offering, (x) regardless of whether the undersigned is an offer or director, to the Company in
connection with the vesting, settlement or exercise of restricted stock, restricted stock units, options, stock appreciation rights, warrants or other rights with respect to shares of Common Stock (including, in each case, by way of
"net" or "cashless" exercise, "net settlement" or otherwise), including any transfer to the Company or sale in an open market transaction for the payment of exercise price or tax withholdings or remittance
payments due as a result of the vesting, settlement or exercise of such restricted stock, restricted stock units, options, stock appreciation rights, warrants or other rights, or in connection with the conversion of convertible securities, in all
such cases pursuant to equity awards granted under a stock incentive plan or other equity award plan, or pursuant to the terms of convertible securities, each as described in the Registration Statement, the preliminary prospectus relating to the
Shares included in the Registration Statement immediately prior to the time the Underwriting Agreement is executed and the Prospectus, provided that any securities received upon such vesting, settlement, exercise or conversion that are not used for
the purpose of payment of exercise price and/or tax, remittance and other obligations due as a result of the vesting, settlement, or exercise of such awards and rights shall be subject to the terms of this Lock-Up Agreement, (xi) in connection with the conversion, exchange or reclassification of any outstanding securities of the Company into shares of Common Stock, or any conversion, exchange or
reclassification of the Common Stock, provided that any such shares of Common Stock received upon such conversion, exchange or reclassification shall be subject to the terms of this Lock-Up Agreement, or
(xii) with the prior written consent of two of Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Jefferies LLC on behalf of the Underwriters; provided that (A) in the case of clauses (a)(i), (ii), (iii), (iv), (v) and
(vi) above, such transfer or distribution shall not involve a disposition for value, (B) in the case of clauses (a)(i), (ii), (iii), (iv), (v), (vi) and (vii) above, it shall be a condition to the transfer or distribution that the
donee, devisee, transferee or distributee, as the case may be, shall sign and deliver a lock-up agreement in the form of this Lock-Up Agreement, (C) in the case of
clauses (a)(ii), (iii), (iv), (v) and (vi) above, no filing by any party (including, without limitation, any donor, donee, devisee, transferor, transferee, distributor or distributee) under the Securities Exchange Act of 1934, as amended (the
"Exchange Act), or other public filing, report or announcement reporting a reduction in beneficial ownership of Lock-Up Securities shall be required or shall be voluntarily made in connection with such
transfer or distribution, and (D) in the case of clauses (a)(i), (vii), (viii), (ix) and (x) above, no filing under the Exchange Act or other public filing, report or announcement shall be voluntarily made, and if any such filing, report
or announcement shall be legally required during the Lock-Up Period, such filing, report or announcement shall clearly indicate in the footnotes thereto (A) the circumstances of such transfer or
distribution and (B) in the case of a transfer or distribution pursuant to clauses (a)(i) or (vii) above, that the donee, devisee, transferee or distributee has agreed to be bound by a lock-up agreement in the form of this Lock-Up Agreement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) enter into or amend a written plan meeting the requirements of Rule 10b5-1 under the Exchange Act relating to the transfer, sale or other disposition of the undersigned's Lock-Up Securities, if then permitted by the Company,
provided that none of the securities subject to such plan may be transferred, sold or otherwise disposed of until after the expiration of the Lock-Up Period and no public announcement, report or filing under
the Exchange Act, or any other public filing, report or announcement, shall be voluntarily made (whether by or on behalf of the undersigned, the Company or any other party) regarding, or that otherwise discloses, the establishment of such plan
during the Lock-Up Period, and if any such filing, report or announcement shall be legally required during the Lock-Up Period, such filing, report or announcement shall
clearly indicate that that none of the securities subject to such plan may be transferred, sold or otherwise disposed of pursuant to such plan until after the expiration of the Lock-Up Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) transfer the undersigned's Lock-Up Securities pursuant to a bona
fide third-party tender offer, merger, consolidation or other similar transaction that is approved by the Board of Directors of the Company and made to all holders of the Company's capital stock involving a Change of Control of the Company
(for purposes hereof, "Change of Control" shall mean the transfer (whether by tender offer, merger, consolidation or other similar transaction), in one transaction or a series of related transactions, to a person or group of affiliated
persons, of shares of capital stock if, after such transfer, such person or group of affiliated persons would hold at least a majority of the outstanding voting securities of the Company (or the surviving entity)); provided that in the event that
such tender offer, merger, consolidation or other similar transaction is not completed, the undersigned's Lock-Up Securities shall remain subject to the provisions of this Lock-Up Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to the extent the undersigned has demand and/or piggyback registration rights under any registration rights
agreement described in the Prospectus, the undersigned may notify the Company privately that the undersigned is or will be exercising his, her or its demand and/or piggyback registration rights under any such registration rights agreement following
the expiration of the Lock-Up Period and undertake preparations related thereto; provided that the foregoing notification and/or preparations do not request, require or result in the public filing of a
registration statement with the Securities and Exchange Commission or any other public announcement of such proposed registration by the undersigned, the Company or any third party during the Lock-Up Period
(and no such filing, public announcement or activity shall be voluntarily made or taken by the undersigned, the Company or any third party during the Lock-Up Period); provided further that the Company shall
notify the Representatives upon receipt of such notice.

If the undersigned is an officer or director of the Company, the undersigned further agrees that the foregoing provisions shall be equally applicable to any issuer-directed or other Shares the undersigned may purchase in the Public Offering.

If the undersigned is not a natural person, the undersigned represents and warrants that no single natural person, entity or "group" (within the meaning of Section 13(d)(3) of the Exchange Act), other than a natural person, entity or "group" (as described above) that has executed a Lock-Up Agreement in substantially the same form as this Lock-Up Agreement, beneficially owns, directly or indirectly, 50% or more of the common equity interests, or 50% or more of the voting power, in the undersigned.

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If the undersigned is an officer or director of the Company, (i) Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Jefferies LLC agree that, at least three business days before the effective date of any release or waiver of the foregoing restrictions in connection with a transfer of shares of Common Stock, they will notify the Company of the impending release or waiver, and (ii) the Company has agreed in the Underwriting Agreement to announce the impending release or waiver by press release through a major news service (or such other method approved by them that satisfies the requirements of FINRA Rule 5131(d)(2)) at least two business days before the effective date of the release or waiver. Any release or waiver granted by two of Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Jefferies LLC hereunder to any such officer or director shall only be effective two business days after the publication date of such press release. The provisions of this paragraph will not apply if (i) the release or waiver is effected solely to permit a transfer not for consideration or that is to an immediate family member as defined in FINRA Rule 5130(i)(5) and (ii) the transferee has agreed in writing to be bound by the same terms described in this Lock-Up Agreement to the extent and for the duration that such terms remain in effect at the time of the transfer.

The undersigned now has, and, except as contemplated by clauses (a) and (c) of the third paragraph of this Lock-Up Agreement, for the duration of this Lock-Up Agreement will have, good and marketable title to the undersigned's Lock-Up Securities, free and clear of all liens, encumbrances and claims whatsoever. The undersigned also agrees and consents to the entry of stop transfer instructions with the Company's transfer agent and registrar against the transfer of the undersigned's Lock-Up Securities except in compliance with the foregoing restrictions.

The undersigned acknowledges and agrees that none of the Underwriters has made any recommendation or provided any investment or other advice to the undersigned with respect to this Lock-Up Agreement or the subject matter hereof, and the undersigned has consulted its own legal, accounting, financial, regulatory, tax and other advisors with respect to this Lock-Up Agreement and the subject matter hereof to the extent the undersigned has deemed appropriate. The undersigned further acknowledges and agrees that, although the Underwriters may have provided or hereafter provide to the undersigned in connection with the Public Offering a Form CRS and/or certain other disclosures as contemplated by Regulation Best Interest, the Underwriters have not made and are not making a recommendation to the undersigned to enter into this Lock-Up Agreement or to transfer, sell or dispose of, or to refrain from transferring, selling or disposing of, any shares of Common Stock, and nothing set forth in such disclosures or herein is intended to suggest that any Underwriter is making such a recommendation.

This Lock-Up Agreement shall automatically terminate and the undersigned shall be released from all of his, her or its obligations hereunder upon the earlier of (i) the date on which the Registration Statement filed with the SEC with respect to the Public Offering is withdrawn, (ii) the date on which for any reason the Underwriting Agreement is terminated (other than the provisions thereof that survive termination) prior to payment for and delivery of the Shares to be sold thereunder (other than pursuant to the Underwriters' option thereunder to purchase additional Shares), (iii) the date on which the Company notifies the Representatives, in writing and prior to the execution of the Underwriting Agreement, that it does not intend to proceed with the Public Offering and (iv) [•]<sup>1</sup>, in the event that the Underwriting Agreement has not been executed by such date (provided, however, that the Company may, by written notice to the undersigned prior to such date, extend such date by a period of up to an additional 90 days).

*<sup>1</sup>* *NTD: Outside date to be confirmed.*

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The undersigned understands that the Company and the Underwriters are relying upon this Lock-Up Agreement in proceeding toward consummation of the Public Offering. The undersigned further understands that this Lock-Up Agreement is irrevocable and shall be binding upon the undersigned's heirs, legal representatives, successors and assigns. The undersigned hereby represents and warrants that the undersigned has full power and authority to enter into this Lock-Up Agreement. This Lock-Up Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without regard to principles of conflict of laws that would result in the application of any law other than the laws of the State of New York. This Lock-Up Agreement may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com or www.echosign.com) or other transmission method, and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

------

Very truly yours,

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| | | | |
|:---|:---|:---|:---|
| **IF AN INDIVIDUAL:** | **IF AN INDIVIDUAL:** | **IF AN ENTITY:** | **IF AN ENTITY:** |
| By: |  |  |  |
|  | *(duly authorized signature)* | *(please print complete name of entity)* | *(please print complete name of entity)* |
| Name: |  | By: |  |
|  | *(please print full name)* |  | *(duly authorized signature)* |
|  |  | Name: |  |
|  |  |  | *(please print full name)* |
|  |  | Title: |  |
|  |  |  | *(please print full title)* |

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*[Signature Page to Lock-Up Agreement]*

## Exhibit 3.1

**Exhibit 3.1** 

**AMENDED AND RESTATED** 

**CERTIFICATE OF INCORPORATION** 

**OF** 

**ARXIS, INC.** 

The current name of this corporation is Arxis, Inc. (the "<u>Corporation</u>"). The original certificate of incorporation of the Corporation was filed with the Secretary of State of the State of Delaware on October 3, 2025, under its current name. Pursuant to Section 241 of the General Corporation Law of the State of Delaware, the undersigned hereby certifies that the Corporation has not received any payment for its capital stock and that this amended and restated certificate of incorporation, which restates, integrates and amends the provisions of the certificate of incorporation, has been duly adopted in accordance with Sections 241 and 245 of the General Corporation Law of the State of Delaware. The Corporation's certificate of incorporation is hereby amended and restated to read in its entirety as follows:

**Article 1. Name** 

The name of the Corporation is Arxis, Inc.

**Article 2. Registered Office and Agent** 

The address of the Corporation's registered office in the State of Delaware is Corporation Trust Center, 1209 Orange Street, City of Wilmington, County of New Castle, Delaware 19801. The name of the Corporation's registered agent at such address is The Corporation Trust Company.

**Article 3. Purpose and Powers** 

The purpose of the Corporation is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of the State of Delaware (as the same exists or may hereafter be amended, "<u>Delaware Law</u>").

**Article 4. Capital Stock** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Authorized Shares** 

The total number of shares of stock that the Corporation shall have authority to issue is [•] shares, which shall be divided into two classes, consisting of (i) [•] shares of common stock, par value $0.01 per share ("<u>Common Stock</u>"), which shall be divided into four series, consisting of [•] shares of Class A common stock, par value $0.01 per share ("<u>Class</u> <u>A Common Stock</u>"), [•] shares of Class B common stock, par value $0.01 per share ("<u>Class</u> <u>B Common Stock</u>"), [•] shares of Class C common stock, par value $0.01 per share ("<u>Class</u> <u>C Common Stock</u>"), and one share of convertible common stock, par value $0.01 per share ("<u>Convertible Common Stock</u>"), and (ii) [•] shares of Preferred Stock, par value $0.01 per share ("<u>Preferred Stock</u>").

The Corporation's board of directors (the "<u>Board of Directors</u>") is hereby empowered, without any action or vote by the Corporation's stockholders (except as may otherwise be provided by the terms of any series of Preferred Stock then outstanding), to authorize by resolution or resolutions from time to time the issuance, out of any theretofore authorized but unissued and undesignated shares of Preferred Stock, of one or more series of Preferred Stock and to fix the designations, powers (including voting powers), preferences and relative, participating, optional, special or other rights, if any, and the qualifications, limitations or restrictions thereof, if any, with respect to each such series of Preferred Stock and the number of shares constituting each such series, and to increase or decrease the number of shares of any such series, to the extent permitted by Delaware Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Powers and Rights of Common Stock** 

The description of the Class A Common Stock, Class B Common Stock, Class C Common Stock and Convertible Common Stock, and the designations, powers, preferences and relative, participating, optional or other special rights, and the qualifications, limitations or restrictions thereof, are as follows:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*1. Identical Rights*. Except as otherwise expressly provided by this amended and restated certificate of incorporation (as the same may be amended, modified, supplemented and/or restated from time to time, the "<u>Certificate of Incorporation</u>") or required by applicable law, shares of Class A Common Stock, Class B Common Stock, Class C Common Stock and Convertible Common Stock shall have the same rights, powers and privileges and rank equally (including as to dividends and distributions, and in any liquidation, dissolution or winding up of the Corporation), share ratably and be identical in all respects as to all matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2. Reclassification, Split, Subdivision or Combination*. If the Corporation in any manner reclassifies, splits, subdivides or combines the outstanding shares of Class A Common Stock, Class B Common Stock, Class C Common Stock or Convertible Common Stock, the outstanding shares of each other series of Common Stock shall concurrently therewith be proportionately reclassified, split, subdivided or combined in a manner that maintains the same proportionate equity ownership among the holders of the outstanding shares of Class A Common Stock, the holders of the outstanding shares of Class B Common Stock, the holders of the outstanding shares of Class C Common Stock and the holders of the outstanding shares of Convertible Common Stock on the record date for such reclassification, split, subdivision or combination, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*3. Voting Rights*. Except as otherwise expressly provided by this Certificate of Incorporation or required by applicable law, holders of Class A Common Stock, Class B Common Stock, Class C Common Stock and Convertible Common Stock shall vote together as a single class on all matters on which stockholders of the Corporation generally are entitled to vote. To the fullest extent permitted by law, except as otherwise expressly provided by this Certificate of Incorporation or otherwise required by applicable law, (i) each holder of Class A Common Stock, as such, shall be entitled to one vote for each share of Class A Common Stock held of record by such holder on all matters on which stockholders of the Corporation generally are entitled to vote, (ii) each holder of Class B Common Stock, as such, shall be entitled to twenty votes for each share of Class B Common Stock held of record by such holder on all matters on which stockholders of the Corporation generally are entitled to vote, (iii) each holder of Class C Common Stock, as such, shall not be entitled to vote on and shall not have any voting power with respect to shares of Class C Common Stock held of record by such holder on any matter on which stockholders of the Corporation generally are entitled to vote, and (iv) each holder of Convertible Common Stock, as such, shall be entitled to vote on as converted basis, irrespective of whether the Convertible Stock Conversion Conditions have been met, on all matters on which stockholders of the Corporation generally are entitled to vote. Notwithstanding anything to the contrary in this Certificate of Incorporation, except as otherwise required by applicable law, holders of Common Stock, as such, shall not be entitled to vote on any amendment to this Certificate of Incorporation (including any certificate of designations relating to any series of Preferred Stock) that relates solely to the terms of one or more outstanding series of Preferred Stock if the holders of such affected series of Preferred Stock are entitled, either separately or together with the holders of one or more other such affected series of Preferred Stock, to vote thereon pursuant to this Certificate of Incorporation (including any certificate of designations relating to any class or series of Preferred Stock) or pursuant to Delaware Law. Subject to the rights of the holders of any series of Preferred Stock, the number of authorized shares of Common Stock or Preferred Stock may be increased or decreased (but not below the number of shares thereof then outstanding) without a separate class vote of the holders of Common Stock or Preferred Stock irrespective of the provisions of Section 242(b)(2) of Delaware Law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*4. Dividends.* Whenever a dividend is paid to the holders of Class A Common Stock, Class B Common Stock, Class C Common Stock or Convertible Common Stock then outstanding, the Corporation shall also pay to the holders of each other series of Common Stock then outstanding an equal dividend per share on an equal priority, *pari passu* basis, unless different treatment of the shares of each such series is or has been approved by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class A Common Stock entitled to vote thereon, by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class B Common Stock entitled to vote thereon, by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class C Common Stock entitled to vote thereon, and by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Convertible Common Stock entitled to vote thereon, each voting separately as a class; *provided*, *however*, that (x) if the dividend is paid in the form of shares of Class A Common Stock, Class B Common Stock or Class C Common Stock (or securities convertible into or exchangeable for, or that evidence the right to purchase or acquire, shares of Class A Common Stock, Class B Common Stock or Class C Common Stock), then the holders of Class A Common Stock shall receive shares of Class A Common Stock (or securities convertible into or exchangeable for, or that evidence the right to purchase or acquire, shares of Class A Common Stock), holders of Class B Common Stock or Convertible Common Stock shall receive shares of Class B Common Stock (or securities convertible into or exchangeable for, or that evidence the right to purchase or acquire, shares of Class B Common Stock) and holders of Class C Common Stock shall receive shares of Class C Common Stock (or securities convertible into or exchangeable for, or that evidence the right to purchase or acquire, shares of Class C Common Stock), with each share of Common Stock receiving an identical number of shares of Common Stock (or securities convertible into or exchangeable for, or that evidence the right to purchase or acquire, shares of Common Stock), (y) if the dividend is paid in securities of the Corporation other than those in clause (x), then the holders of Class A Common Stock, Class B Common Stock, Class C Common Stock and Convertible Common Stock will receive identical securities on an equal per share basis and (z) if the dividend is paid in securities of a Person other than the Corporation, then the holders of Class A Common Stock, Class B Common Stock, Class C Common Stock and Convertible Common Stock will either receive identical securities on an equal per share basis or receive different classes or series of securities of such Person on an equal per share basis, *provided* that such different classes or series of securities do not differ in any respect other than their relative voting rights, with holders of Class B Common Stock and Convertible Common Stock receiving the class or series of securities having higher relative voting rights as compared to, and proportional with the existing relative voting rights of, the holders of Class A Common Stock, and holders of Class A Common Stock receiving securities of a class or series having lesser relative voting rights as compared to, and proportional with the existing relative voting rights of, the holders of Class B Common Stock, and holders of Class C Common Stock receiving securities of a class or series having no voting rights. No dividends shall be paid in the form of shares of Convertible Common Stock. For the avoidance of doubt, the right of holders of shares of Convertible Common Stock to receive dividends or other distributions is not contingent on the Conversion Conditions having been met.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*5. Mergers and Consolidations.* In connection with any merger or consolidation of the Corporation with or into any other entity, or any other transaction having an effect on stockholders substantially similar to that resulting from a merger or consolidation, shares of Class A Common Stock, Class B Common Stock, Class C Common Stock and Convertible Common Stock shall be treated equally, identically and ratably, on a per share basis, including with respect to any consideration into which such shares are converted or any consideration paid or otherwise distributed to holders of Common Stock, unless different treatment of the shares of each such series is or has been approved by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class A Common Stock entitled to vote thereon, by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class B Common Stock entitled to vote thereon, by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class C Common Stock entitled to vote thereon and the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Convertible Common Stock entitled to vote thereon, each voting separately as a class; *provided*, *however*, the holders of Class A Common Stock, Class B Common Stock, Class C Common Stock and Convertible Common Stock shall be deemed to have been treated equally, identically and ratably, on a per share basis, and no such separate class votes shall be required, if such holders receive different classes or series of securities on an equal per share basis, *provided* that such different classes or series of securities do not differ in any respect other than their relative voting rights, with holders of Class B Common Stock and Convertible Common Stock receiving the class or series of securities having higher relative voting rights as compared to, and proportional with the existing relative voting rights of, the holders of Class A Common Stock, and holders of Class A Common Stock receiving securities of a class or series having lesser relative voting rights as compared to, and proportional with the existing relative voting rights of, the holders of Class B Common Stock, and holders of Class C Common Stock receiving securities of a class or series having no voting rights. Notwithstanding anything to the contrary in this Certificate of Incorporation, in determining whether shares of Class A Common Stock, Class B Common Stock, Class C Common Stock and Convertible Common Stock will be treated equally, identically and ratably, on a per share basis, the following shall not be considered: (i) any consideration to be paid to or received by a holder of Common Stock pursuant to any indemnification, bona fide employment, consulting, severance or similar services arrangement and (ii) any consideration to be paid to or received by a holder of Common Stock pursuant to any negotiated agreement between such holder (or any affiliate thereof) with any counterparty (or affiliate thereof) to such merger, consolidation or other transaction wherein such holder (or affiliate thereof) is contributing, selling, transferring or otherwise disposing of shares of the Corporation's capital stock to such counterparty (or affiliate thereof), or such shares are being converted or exchanged, as part of a "rollover" or similar transaction in connection with such merger, consolidation or other transaction.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*6. Liquidation and Dissolution*. In the event of the voluntary or involuntary liquidation, dissolution or winding up of the Corporation, after payment or provision for payment of the debts and liabilities of the Corporation and subject to the payment in full of the preferential or other amounts to which any series of Preferred Stock are entitled (i) shares of Class A Common Stock, Class B Common Stock and Class C Common Stock shall be treated equally, identically and ratably, on a per share basis, and be entitled to receive an equal amount per share of all the assets of the Corporation of whatever kind available for distribution to holders of shares of any class of capital stock of the Corporation, unless different treatment of the shares of each such series is or has been approved by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class A Common Stock entitled to vote thereon, by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class B Common Stock entitled to vote thereon and by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class C Common Stock entitled to vote thereon, each voting separately as a class, and (ii) subject to the shares of Class A Common Stock, Class B Common Stock and Class C Common Stock, if any, being entitled to receive an amount per share equal to at least 3.0 times the IPO Price, shares of Convertible Common Stock shall be treated equally, identically and ratably, on a per share, as converted, basis with shares of Class A Common Stock and shares of Class B Common Stock, and be entitled to receive an equal amount per share of all the assets of the Corporation of whatever kind available for distribution to holders of shares of Class A Common Stock, shares of Class B Common Stock and shares of Class C Common Stock, if any, irrespective of whether the Conversion Conditions have been met, unless different treatment of the shares of Convertible Common Stock is or has been approved by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Convertible Common Stock entitled to vote thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*7. Redemption of Convertible Common Stock*. On or after the 12-year anniversary of the closing date of the IPO, the Corporation may, at the election of the disinterested directors at that time, redeem any unconverted share of Convertible Common Stock at its option, in whole or in part, at any time and from time to time, for cash at a price per share equal to the amount that would be payable on such share of Convertible Common Stock in a liquidation of the Corporation as of the redemption date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*8. Forfeiture of Convertible Common Stock*. Any and all shares of Convertible Common Stock shall be forfeited (the "Forfeiture") on the earlier of (i) the Price Forfeiture Date if the price of the shares of Class A Common Stock has been equivalent to less than 1.5 times the IPO Price based on the daily volume weighted average price of the shares of Class A Common Stock for 75.0% of the trading days in the 12-month period ending on the trading day immediately preceding the Forfeiture Date, and (ii) the Termination Forfeiture Date. The Forfeiture shall include all dividends or other moneys payable in respect of the forfeited shares and not paid before the applicable Forfeiture Date. Notwithstanding such Forfeiture, such person shall remain liable to the Corporation for any amounts that were due and payable to the Corporation as of the applicable Forfeiture Date with respect to such shares. Any shares of Convertible Common Stock forfeited pursuant to this Article 4.B.8 shall be cancelled. Upon any such Forfeiture, the holder shall cease to be a stockholder of the Corporation with respect to the forfeited shares, and, if certificated, shall surrender to the Corporation for cancellation the certificate or certificates representing the forfeited shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*9. Restrictions on Transfers of Convertible Common Stock.* Shares of Convertible Common Stock shall not be transferred other than pursuant to a Permitted Transfer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Conversion** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*1. Voluntary Conversion of Class B Common Stock*. Subject to this Article 4.C, each share of Class B Common Stock shall be voluntarily convertible into one fully paid and non-assessable share of Class A Common Stock at the option of the holder of such share of Class B Common Stock at any time and from time to time and without payment of additional consideration by such holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2. Mechanics of Voluntary Conversion of Class B Common Stock*. In order for a holder of shares of Class B Common Stock to voluntarily convert such shares of Class B Common Stock into shares of Class A Common Stock pursuant to Article 4.C.1, such holder shall (i) provide written notice ("<u>Conversion Notice</u>") to the Corporation's transfer agent at the office of the transfer agent for the Common Stock (or at the principal office of the Corporation if the Corporation serves as its own transfer agent for the Common Stock), stating the number of shares of Class B Common Stock that such holder elects to convert (and, if applicable, any event on which such conversion is contingent) and such holder's name or the names of the nominees in which such holder wishes the shares of Class A Common Stock to be issued and (ii) surrender the certificate or certificates, if any, representing such shares of Class B Common Stock (or, if such holder alleges that such certificate has been lost, stolen or destroyed, an affidavit stating that such certificate has been lost, stolen or destroyed and an agreement reasonably acceptable to the Corporation (which may include a requirement to post a bond) to indemnify the Corporation against any claim that may be made against the Corporation on account of the alleged loss, theft or destruction of such certificate (a "<u>Lost Certificate Affidavit and Agreement</u>")) at the Corporation's principal executive offices. If required by the Corporation, any certificate or certificates so surrendered shall be endorsed or accompanied by a written instrument or instruments of transfer, in a form reasonably satisfactory to the Corporation, duly executed by the registered holder or by such registered holder's attorney duly authorized in writing. Upon the receipt by the transfer agent (or by the Corporation if the Corporation serves as its own transfer agent) of the documents provided by this Article 4.C.2 (the "<u>Voluntary Conversion Time</u>"), the shares of Class A Common Stock issuable upon conversion of the specified shares shall be deemed to be outstanding of record as of such date and all rights with respect to the shares of Class B Common Stock, converted at such Voluntary Conversion Time shall terminate, except for only (i) the rights of the holder of such shares to receive any dividends declared but unpaid on the shares of Class B Common Stock held of record by such holder as of the record date for such dividend, if such record date was at or prior to the Voluntary Conversion Time, that have been converted into shares of Class A Common Stock at such Voluntary Conversion Time, and (ii) if the shares of Class B Common Stock converted at such Voluntary Conversion Time were represented by a certificate or certificates immediately prior to such Voluntary Conversion Time and less than all of the shares of Class B Common Stock represented by any one certificate were converted at such Voluntary Conversion Time, the rights of the holder of such shares to receive a new certificate representing the shares of Class B Common Stock not so converted at such Voluntary Conversion Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*3. Mandatory Conversion of Class B Common Stock*. Each share of Class B Common Stock shall automatically, without any further action by the Corporation or the holder thereof, be converted into one fully paid and non-assessable share of Class A Common Stock upon the earliest to occur of (each, a "<u>Class</u> <u>B Mandatory Conversion Time</u>"): (i) a Transfer other than a Permitted Transfer of such share of Class B Common Stock; (ii) such share of Class B Common Stock being held by a Person other than a Permitted Transferee; (iii) the approval of such conversion by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class B Common Stock entitled to vote thereon, voting separately as a class, and the satisfaction or occurrence of any condition or event on which such conversion is contingent, as specified in such approval; and (iv) 5:00 p.m., New York time, on the first Business Day after the date on which both (A) outstanding shares of Class B Common Stock constitute less than 10% of the aggregate number of outstanding shares of Common Stock and (B) the Sponsor (and its Permitted Transferees) ceases to Beneficially Own a number of shares of Class B Common Stock that is greater than or equal to 35% of the number of shares of Class B common stock issued to the Sponsor or transferred or to be transferred to the Sponsor in respect of the shares of Class B Common Stock Beneficially Owned by the Funds immediately after the initial closing of the initial public offering of the Corporation's Class A Common Stock.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*4. Policies and Procedures with Respect to Class B Common Stock*. The Corporation may, from time to time, require that a holder of shares of Class B Common Stock furnish affidavits or other proof to the Corporation as it deems necessary to verify the ownership of shares of Class B Common Stock and to confirm that a conversion to shares of Class A Common Stock has not occurred. Promptly following any conversion of Class B Common Stock at a Class B Mandatory Conversion Time, each holder of shares of Class B Common Stock that have been converted into shares of Class A Common Stock at such Class B Mandatory Conversion Time shall surrender the certificate or certificates, if any, representing such shares of Class B Common Stock (or, if such holder alleges that such certificate has been lost, stolen or destroyed, a Lost Certificate Affidavit and Agreement) to the Corporation's transfer agent at the office of the transfer agent for the Common Stock (or at the principal office of the Corporation if the Corporation serves as its own transfer agent for the Common Stock). If required by the Corporation, any certificate or certificates so surrendered shall be endorsed or accompanied by a written instrument or instruments of transfer, in form reasonably satisfactory to the Corporation, duly executed by the registered holder or by such registered holder's attorney duly authorized in writing. Upon the occurrence of a Class B Mandatory Conversion Time, the shares of Class A Common Stock issuable upon conversion of the specified shares shall be deemed to be outstanding of record as of such date and all rights with respect to the shares of Class B Common Stock converted at such Class B Mandatory Conversion Time shall terminate, except for only (i) the rights of the holder of such shares to receive any dividends declared but unpaid on the shares of Class B Common Stock held of record by such holder as of the record date for such dividend, if such record date was at or prior to the Class B Mandatory Conversion Time, that have been converted into shares of Class A Common Stock at such Class B Mandatory Conversion Time, and (ii) if the shares of Class B Common Stock converted at such Class B Mandatory Conversion Time were represented by a certificate or certificates immediately prior to such Class B Mandatory Conversion Time and less than all of the shares of Class B Common Stock represented by any one certificate were converted at such Class B Mandatory Conversion Time, the rights of the holder of such shares to receive a new certificate representing the shares of Class B Common Stock not so converted at such Class B Mandatory Conversion Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*5. Mandatory Conversion of Class C Common Stock*. Each share of Class C Common Stock shall automatically, without any further action by the Corporation or the holder thereof, be converted into one fully paid and non-assessable share of Class A Common Stock upon the earliest to occur of (each, a "<u>Class</u> <u>C Mandatory Conversion Time</u>"): (i) the date on which no shares of Class B Common Stock are outstanding; and (ii) the approval of such conversion by the affirmative vote of the holders of a majority of the voting power of the then-outstanding shares of Class B Common Stock entitled to vote thereon, voting separately as a class, and the satisfaction or occurrence of any condition or event on which such conversion is contingent, as specified in such approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*6. Policies and Procedures with Respect to Class C Common Stock*. Promptly following any conversion of Class C Common Stock at a Class C Mandatory Conversion Time, each holder of shares of Class C Common Stock that have been converted into shares of Class A Common Stock at such Class C Mandatory Conversion Time shall surrender the certificate or certificates, if any, representing such shares of Class C Common Stock (or, if such holder alleges that such certificate has been lost, stolen or destroyed, a Lost Certificate Affidavit and Agreement) to the Corporation's transfer agent at the office of the transfer agent for the Common Stock (or at the principal office of the Corporation if the Corporation serves as its own transfer agent for the Common Stock). If required by the Corporation, any certificate or certificates so surrendered shall be endorsed or accompanied by a written instrument or instruments of transfer, in form reasonably satisfactory to the Corporation, duly executed by the registered holder or by such registered holder's attorney duly authorized in writing. Upon the occurrence of a Class C Mandatory Conversion Time, the shares of Class A Common Stock issuable upon conversion of the specified shares shall be deemed to be outstanding of record as of such date and all rights with respect to the shares of Class C Common Stock converted at such Class C Mandatory Conversion Time shall terminate, except for only the rights of the holder of such shares to receive any dividends declared but unpaid on the shares of Class C Common Stock held of record by such holder as of the record date for such dividend, if such record date was at or prior to the Class C Mandatory Conversion Time, that have been converted into shares of Class A Common Stock at such Class C Mandatory Conversion Time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*7. Voluntary Conversion of Convertible Common Stock*. Subject to this Article 4.C and to the Convertible Stock Conversion Conditions having been met, each share of Convertible Common Stock shall be voluntarily convertible into a number of fully paid and non-assessable shares of Class B Common Stock (or, if no shares of Class B Common Stock are outstanding at the time of such voluntary conversion, shares of Class A Common Stock) equal to the Conversion Ratio at the option of the holder of such share of Convertible Common Stock at any time and from time to time prior to the Conversion Expiration Date and without payment of additional consideration by such holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*8. Mechanics of Voluntary Conversion of Convertible Common Stock*. In order for a holder of shares of Convertible Common Stock to voluntarily convert such shares of Convertible Common Stock into shares of Class B Common Stock pursuant to Article 4.C.7, such holder shall (i) provide written notice ("<u>Convertible Stock Conversion Notice</u>") to the Corporation's transfer agent at the office of the transfer agent for the Common Stock (or at the principal office of the Corporation if the Corporation serves as its own transfer agent for the Common Stock), (A) stating the number of shares of Convertible Common Stock that such holder elects to convert (and, if applicable, any event on which such conversion is contingent) and such holder's name or the names of the nominees in which such holder wishes the shares of Class B Common Stock or Class A Common Stock, as applicable, to be issued, (B) stating the number of shares Class B Common Stock or Class A Common Stock, as applicable, to be issued to such holder or such holder's nominees (C) certifying that the Convertible Stock Conversion Conditions have been met and that the Conversion Expiration Date has not occurred and (D) setting forth in reasonable detail such holders' calculation of the second condition in the definition of "Convertible Stock Conversion Conditions" and (ii) surrender the certificate or certificates, if any, representing such shares of Convertible Common Stock (or, if such holder alleges that such certificate has been lost, stolen or destroyed, a Lost Certificate Affidavit and Agreement) at the Corporation's principal executive offices. If required by the Corporation, any certificate or certificates so surrendered shall be endorsed or accompanied by a written instrument or instruments of transfer, in a form reasonably satisfactory to the Corporation, duly executed by the registered holder or by such registered holder's attorney duly authorized in writing. Upon the receipt by the transfer agent (or by the Corporation if the Corporation serves as its own transfer agent) of the documents provided by this Article 4.C.8 (the "<u>Convertible Stock Voluntary Conversion Time</u>"), the shares of Class B Common Stock or Class A Common Stock, as applicable, issuable upon conversion of the specified shares shall be deemed to be outstanding of record as of such date and all rights with respect to the shares of Convertible Common Stock, converted at such Convertible Stock Voluntary Conversion Time shall terminate, except for only (i) the rights of the holder of such shares to receive any dividends declared but unpaid on the shares of Convertible Common Stock held of record by such holder as of the record date for such dividend, if such record date was at or prior to the Convertible Stock Voluntary Conversion Time, that have been converted into shares of Class B Common Stock or Class A Common Stock, as applicable at such Voluntary Conversion Time, and (ii) if the shares of Convertible Common Stock converted at such Convertible Stock Voluntary Conversion Time were represented by a certificate or certificates immediately prior to such Convertible Stock Voluntary Conversion Time and less than all of the shares of Convertible Common Stock represented by any one certificate were converted at such Convertible Stock Voluntary Conversion Time, the rights of the holder of such shares to receive a new certificate representing the shares of Convertible Common Stock not so converted at such Convertible Stock Voluntary Conversion Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*9. Mandatory Conversion of Convertible Common Stock*. Irrespective of whether the Conversion Conditions have been met, each share of Convertible Common Stock shall automatically, without any further action by the Corporation or the holder thereof, be converted into a number of fully paid and non-assessable shares of Class B Common Stock (or, if no shares of Class B Common Stock are outstanding at the time of such automatic conversion, shares of Class A Common Stock) equal to the Conversion Ratio upon a Qualifying Change of Control Transaction (the "<u>Convertible Mandatory Conversion Time</u>").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*10. Policies and Procedures with Respect to Convertible Common Stock*. The Corporation may, from time to time, require that a holder of shares of Convertible Common Stock furnish affidavits or other proof to the Corporation as it deems necessary to verify the ownership of shares of Convertible Common Stock and to confirm that a conversion to shares of Class B Common Stock or Class A Common Stock, as applicable, has not occurred. Promptly following any conversion of Convertible Common Stock at a Convertible Mandatory Conversion Time, each holder of shares of Convertible Common Stock that have been converted into shares of Class B Common Stock or Class A Common Stock, as applicable, at such Convertible Mandatory Conversion Time shall surrender the certificate or certificates, if any, representing such shares of Convertible Common Stock (or, if such holder alleges that such certificate has been lost, stolen or destroyed, a Lost Certificate Affidavit and Agreement) to the Corporation's transfer agent at the office of the transfer agent for the Common Stock (or at the principal office of the Corporation if the Corporation serves as its own transfer agent for the Common Stock). If required by the Corporation, any certificate or certificates so surrendered shall be endorsed or accompanied by a written instrument or instruments of transfer, in form reasonably satisfactory to the Corporation, duly executed by the registered holder or by such registered holder's attorney duly authorized in writing. Upon the occurrence of a Convertible Mandatory Conversion Time, the shares of Class B Common Stock or Class A Common Stock, as applicable, issuable upon conversion of the specified shares shall be deemed to be outstanding of record as of such date and all rights with respect to the shares of Convertible Common Stock converted at such Convertible Mandatory Conversion Time shall terminate, except for only (i) the rights of the holder of such shares to receive any dividends declared but unpaid on the shares of Convertible Common Stock held of record by such holder as of the record date for such dividend, if such record date was at or prior to the Convertible Mandatory Conversion Time, that have been converted into shares of Class B Common Stock or Class A Common Stock, as applicable, at such Convertible Mandatory Conversion Time, and (ii) if the shares of Convertible Common Stock converted at such Convertible Mandatory Conversion Time were represented by a certificate or certificates immediately prior to such Convertible Mandatory Conversion Time and less than all of the shares of Convertible Common Stock represented by any one certificate were converted at such Convertible Mandatory Conversion Time, the rights of the holder of such shares to receive a new certificate representing the shares of Convertible Common Stock not so converted at such Convertible Mandatory Conversion Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*11. Conversion Ratio; Adjustments.* The "<u>Conversion Ratio</u>" shall be equal to the product of (i) 1.25% of the Company's fully diluted capital stock (including Class B Common Stock or Class A Common Stock, as applicable, issuable upon such conversion) outstanding at the time of conversion multiplied by (ii) (A) two times (B) the value of one *minus* the quotient of (x) the IPO Price divided by (y) the stock price per Class A common share at the time of conversion, as determined by the arithmetic average of the daily volume-weighted average prices of shares of the Class A Common Stock on Nasdaq (or such other principal stock exchange on which such shares are traded at the time of exercise) over the 30 trading day period immediately preceding the conversion date; *provided that* if the number of issued and outstanding shares of Class B Common Stock or Class A Common Stock, as applicable, is increased by a capitalization, stock split, stock aggregation, stock subdivision, stock dividend, reorganization, reclassification, consolidation, merger or sale or other similar event, then, on the effective date of such capitalization, stock split, stock aggregation, stock subdivision, stock dividend, reorganization, reclassification, consolidation, merger or sale or other similar event, the Conversion Ratio in effect for the Convertible Common Stock shall be increased proportionately so that the share of Convertible Common Stock shall thereafter be convertible into such number of shares of Class B Common Stock or Class A Common Stock, as applicable, as would have been issuable had the conversion occurred immediately prior to such event, adjusted to reflect such event, in order that the holder of such share of Convertible Common Stock shall receive the same proportionate interest in the Corporation immediately after such event as immediately prior thereto. Notwithstanding anything else in this Certificate of Incorporation, (i) prior to satisfaction of the Convertible Stock Conversion Conditions, each holder of Convertible Common stock, as such, is entitled to vote, to consent, to receive dividends, if any, to receive notices as stockholders with respect to any meeting of stockholders and to exercise any rights whatsoever as our stockholders in an amount of equal to the number of shares of Class B Common Stock that represent 1.25% of the Company's fully diluted capital stock, and (ii) after satisfaction of the Convertible Stock Conversion Conditions, if ever, each holder of convertible stock, as such, is entitled, on an as-converted basis, to vote, to consent, to receive dividends, if any, to receive notices as stockholders with respect to any meeting of stockholders and to exercise any rights whatsoever as our stockholders until such time as each holder of Convertible Common Stock becomes a holder of the shares of our Common Stock issued upon conversion of the Convertible Common Stock.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*12. Effect of Conversion*. Any shares of Class B Common Stock converted pursuant to this Certificate of Incorporation shall be automatically and immediately cancelled and retired and shall not be reissued, sold or transferred, and the authorized number of shares of Class B Common Stock shall be automatically reduced accordingly. Any shares of Class C Common Stock converted pursuant to this Certificate of Incorporation shall be automatically and immediately cancelled and retired. Any shares of Convertible Common Stock converted pursuant to this Certificate of Incorporation shall be automatically and immediately cancelled and retired and shall not be reissued, sold or transferred, and the authorized number of shares of Convertible Common Stock shall be automatically reduced accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Reservation of Stock** 

The Corporation shall at all times while shares of Class B Common Stock or Class C Common Stock are outstanding reserve and keep available out of its authorized but unissued shares of Class A Common Stock, solely for the purpose of effecting the conversion of the outstanding shares of Class B Common Stock and Class C Common Stock, such number of shares of Class A Common Stock as will from time to time be sufficient to effect the conversion of all outstanding shares of Class B Common Stock and Class C Common Stock into shares of Class A Common Stock. The Corporation shall at all times while shares of Convertible Common Stock are outstanding reserve and keep available out of its authorized but unissued shares of Class B Common Stock (or, from such time as no shares of Class B Common Stock are outstanding, shares of Class A Common Stock), solely for the purpose of effecting the conversion of the outstanding shares of Convertible Common Stock, such number of shares of Class B Common Stock or Class A Common Stock, as applicable, as will from time to time be sufficient to effect the conversion of all outstanding shares of Convertible Common Stock into shares of Class B Common Stock or Class A Common Stock, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. No Further Issuances** 

Except for any dividend payable in accordance with Article 4.B.4, any consideration to be paid to or received in connection with any merger or consolidation of the Corporation, or any other transaction having an effect on stockholders substantially similar to that resulting from a merger or consolidation, in accordance with Article 4.B.5, or a reclassification, split, subdivision or combination in accordance with Article 4.B.2, the Corporation shall not issue any additional shares of Class B Common Stock after the initial closing of the initial public offering of the Corporation's Class A Common Stock.

The Corporation shall not issue any additional shares of Class C Common Stock or Convertible Common Stock after the date on which no shares of Class B Common Stock is outstanding.

**Article 5. Bylaws** 

The Board of Directors shall have the power to adopt, amend or repeal, in whole or in part, the bylaws of the Corporation (as in effect from time to time, the "<u>Bylaws</u>") without the assent or vote of the stockholders in any manner not inconsistent with Delaware Law or this Certificate of Incorporation.

The stockholders may adopt, amend or repeal, in whole or in part, the Bylaws only with the affirmative vote of the holders of not less than 75% of the voting power of all outstanding capital stock of the Corporation entitled to vote generally in the election of directors, voting together as a single class.

**Article 6. Board of Directors** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Power of the Board of Directors** 

Except as otherwise provided by this Certificate of Incorporation or Delaware Law, the business and affairs of the Corporation shall be managed by or under the direction of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Number, Election and Removal of Directors** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*1. Number*. Subject to the special rights of the holders of any outstanding series of Preferred Stock, voting separately as a separate series or together with the holders of one or more other series, to elect directors, the total number of directors constituting the Board of Directors shall be a number not less than three nor more than nine, with the exact number of directors to be determined from time to time exclusively by the affirmative vote of a majority of the members of the Board of Directors then in office.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2. Classification and Term*. Prior to the Triggering Event, the directors shall form one class. Each director shall serve for a term ending on the date of the first annual meeting of stockholders next following the annual meeting at which such director was elected, *provided* that directors in office at the Effective Time shall serve for a term ending on the date of the first annual meeting of stockholders following the initial public offering of the Corporation's Class A Common Stock. Notwithstanding the foregoing, each director shall hold office until the annual meeting at which such director's term expires and until such director's successor shall have been duly elected and qualified or until such director's earlier death, resignation, retirement, disqualification or removal from office. In no event will a decrease in the number of directors shorten the term of any incumbent director.

Following the Triggering Event, the directors shall be divided into three classes, designated Class I, Class II and Class III. Each director shall serve for a term ending on the date of the third annual meeting of stockholders next following the annual meeting at which such director was elected; *provided* that directors initially designated as Class I directors shall serve for a term ending on the date of the first annual meeting of stockholders following the Triggering Event, directors initially designated as Class II directors shall serve for a term ending on the date of the second annual meeting of stockholders following the Triggering Event and directors initially designated as Class III directors shall serve for a term ending on the date of the third annual meeting of stockholders following the Triggering Event. Notwithstanding the foregoing, each director shall hold office until the annual meeting at which such director's term expires and until such director's successor shall have been duly elected and qualified or until such director's earlier death, resignation, retirement, disqualification or removal from office. The Board of Directors is authorized to assign members of the Board of Directors in office immediately prior to the Triggering Event to such classes at the time such classification becomes effective. In no event will a decrease in the number of directors shorten the term of any incumbent director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*3. Election*. There shall be no cumulative voting in the election of directors. Unless and except to the extent that the Bylaws shall so require, the election of directors need not be by written ballot.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*4. Vacancies*. Vacancies on the Board of Directors resulting from the death, resignation, retirement, disqualification, removal from office or otherwise of a director or directors and newly created directorships resulting from any increase in the number of directors shall, except as otherwise required by law, be filled solely by a majority of the directors then in office (although less than a quorum) or by the sole remaining director (and not by stockholders), and each director so elected shall hold office for a term that shall coincide with the term of the class to which such director shall have been elected and until such director's successor shall have been duly elected and qualified or until such director's earlier death, resignation, retirement, disqualification or removal from office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*5. Removal*. Prior to the Triggering Event, no director may be removed from office except with the affirmative vote of the holders of not less than a majority of the total voting power of all outstanding shares of capital stock of the Corporation entitled to vote generally in the election of directors, voting together as a single class.

Following the Triggering Event, no director may be removed from office except for cause with the affirmative vote of the holders of not less than a majority of the total voting power of all outstanding shares of capital stock of the Corporation entitled to vote generally in the election of directors, voting together as a single class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*6. Definition*. For purposes of this Certificate of Incorporation, "<u>Triggering Event</u>" means date (if any) on which the Sponsor, the Funds and their respective Permitted Transferees cease to Beneficially Own shares of capital stock of the Corporation representing a majority of the total voting power of all outstanding shares of capital stock of the Corporation entitled to vote generally in the election of directors.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Preferred Stock Directors** 

Notwithstanding any other provision of this Article 6, and except as otherwise required by law, whenever the holders of any outstanding series of Preferred Stock shall have the right, voting separately as a series or together with one or more other series, to elect one or more directors, the term of office, the filling of vacancies, the removal from office and other features of such directorships shall be governed by the terms of such series of Preferred Stock as set forth in this Certificate of Incorporation (including any certificate of designations relating to any series of Preferred Stock) and such directors shall not be included in any of the classes created pursuant to Article 6.B unless expressly provided by such terms. Except as otherwise provided for or fixed pursuant to the provisions of Article 4, whenever the holders of any outstanding series of Preferred Stock having such right to elect additional directors are divested of such right pursuant to said provisions, the terms of office of all directors elected by the holders of such Preferred Stock, or elected to fill any vacancies resulting from the death, resignation, disqualification or removal from office of such additional directors, shall forthwith terminate (in which case such director shall cease to be qualified as a director and shall cease to be a director) and the total authorized number of directors of the Corporation shall be automatically reduced accordingly.

**Article 7. Meetings and Actions of Stockholders** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Special Meetings** 

Special meetings of the stockholders may be called only by the Board of Directors, the Chairperson of the Board of Directors, the Corporation's Chief Executive Officer or the holders of a majority of the then-outstanding shares of Class B Common Stock. Notwithstanding the foregoing, whenever holders of any outstanding series of Preferred Stock shall have the right, voting separately as a series or together with one or more other series of Preferred Stock, to elect directors, such holders may call, pursuant to the terms of such series of Preferred Stock adopted by resolution or resolutions adopted by the Board of Directors pursuant to Article 4.A hereto, a special meeting of the holders of such series of Preferred Stock for the purpose of voting on the election or removal of any such director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Action by Written Consent of Stockholders without a Meeting** 

Prior to the Triggering Event, any action required or permitted to be taken at any annual or special meeting of stockholders may be taken upon the vote of stockholders at an annual or special meeting of stockholders or by written consent of stockholders without a meeting.

Following the Triggering Event, subject to the rights of the holders of any series of Preferred Stock then outstanding, as may be set forth in the resolution or resolutions adopted by the Board of Directors pursuant to Article 4.A hereto for such series of Preferred Stock, any action required or permitted to be taken at any annual or special meeting of stockholders may be taken only upon the vote of stockholders at an annual or special meeting of stockholders and may not be taken by written consent of stockholders without a meeting.

**Article 8. Indemnification** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Limited Liability** 

To the fullest extent permitted by Delaware Law, no director or officer (within the meaning of Section 102(b)(7) of Delaware Law) of the Corporation shall be personally liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director or officer. Any amendment, repeal or elimination of this Article 8 or the adoption of any provision of the Certificate of Incorporation inconsistent with this Article 8, shall not affect its application with respect to an act or omission by a director or officer occurring before such amendment, adoption, repeal or elimination.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Right to Indemnification** 

Each person (and the heirs, executors or administrators of such person) (a "<u>Covered Person</u>") who was or is a party or is threatened to be made a party to, or is involved in any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that such person is or was a director or officer of the Corporation or, while a director or officer, is or was serving at the request of the Corporation as a director or officer of another corporation, partnership, joint venture, trust or other enterprise, shall be indemnified and held harmless by the Corporation to the fullest extent permitted by Delaware Law against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by the Covered Person in connection with such action, suit or proceeding. Notwithstanding the preceding sentence, the Corporation shall be required to indemnify a Covered Person in connection with a proceeding (or part thereof) commenced by such Covered Person only if commencement of such proceeding (or part thereof) by the Covered Person was authorized in the specific case by the Board of Directors of the Corporation. The right to indemnification conferred in this Article 8 upon each Covered Person shall also include the right to be paid by the Corporation the expenses incurred in connection with any such action, suit or proceeding in advance of its final disposition to the fullest extent authorized by Delaware Law; *provided*, *however*, that, to the extent required by law, such payment of expenses in advance of the final disposition of the proceeding shall be made only upon receipt of an undertaking by the Covered Person to repay all amounts advanced if it should be ultimately determined that the Covered Person is not entitled to be indemnified under this Article 8 or otherwise. The right to indemnification and advancement of expenses conferred in this Article 8 upon a Covered Person shall be a contract right and shall not be exclusive of any rights provided in the Bylaws, any agreement between the Corporation and any Covered Persons or by resolution of the Board of Directors.

The Corporation may, by action of its Board of Directors, provide indemnification and advancement of expenses to any employees and agents of the Corporation to such extent and to such effect as the Board of Directors shall determine to be appropriate and authorized by Delaware Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Insurance** 

The Corporation shall have power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against any expense, liability or loss incurred by such person in any such capacity or arising out of such person's status as such, whether or not the Corporation would have the power to indemnify such person against such liability under Delaware Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Non-Exclusivity of Rights** 

The rights and authority conferred in this Article 8 shall not be exclusive of any other right that any person may otherwise have or hereafter acquire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Preservation of Rights** 

Neither the amendment nor repeal of this Article 8, nor the adoption of any provision of this Certificate of Incorporation or the Bylaws, nor, to the fullest extent permitted by Delaware Law, any modification of law, shall adversely affect any right or protection of any person granted pursuant hereto existing at, or arising out of or related to any event, act or omission that occurred prior to, the time of such amendment, repeal, adoption or modification (regardless of when any proceeding (or part thereof) relating to such event, act or omission arises or is first threatened, commenced or completed).

**Article 9. Dispute Resolution** 

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The Court of Chancery of the State of Delaware (or if the Court of Chancery does not have jurisdiction, another court of the State of Delaware, or if no court of the State of Delaware has jurisdiction, the federal district court for the District of Delaware) shall have the fullest authority allowed by law to issue an anti-suit injunction to enforce this forum selection clause and to preclude suit in any other forum. Any person or entity holding, purchasing or otherwise acquiring any interest in shares of capital stock of the Corporation shall be deemed to have notice of and to have consented to this Article 9 and to have consent to (i) the personal jurisdiction of the Court of Chancery of the State of Delaware (or if the Court of Chancery does not have jurisdiction, another court of the State of Delaware, or if no court of the State of Delaware has jurisdiction, the federal district court for the District of Delaware) in any proceeding brought to enjoin, or otherwise enforce this Article 9 with respect to, any action by that person or entity that is inconsistent with the exclusive jurisdiction provided for in this Article 9 (an "<u>Inconsistent Action</u>") and (ii) having service of process made upon such person or entity in any such proceeding by service upon such person's or entity's counsel in such Inconsistent Action as agent for such person or entity.

**Article 10. Corporate Opportunities** 

To the fullest extent permitted by law, no Identified Person shall (i) have any duty to refrain from directly or indirectly engaging in the same or similar business activities or lines of business in which the Corporation or any of its subsidiaries now engages or proposes to engage or otherwise competing with the Corporation or any of its subsidiaries or (ii) be liable to the Corporation or its stockholders or subsidiaries for breach of any fiduciary duty solely by reason of the fact that such Identified Person engages in any such activities. To the fullest extent permitted by law, the Corporation hereby renounces any interest or expectancy in, or right to be offered an opportunity to participate in, any business opportunity that may be a corporate opportunity for an Identified Person and the Corporation or any of its subsidiaries; *provided* that the Corporation does not renounce its interest in any corporate opportunity offered to any Non-Employee Director if such opportunity is expressly offered to such person solely in his or her capacity as a director or officer of the Corporation. Subject to the proviso in the foregoing sentence, in the event that any Identified Person acquires knowledge of a potential transaction or other business opportunity that may be a corporate opportunity for itself, herself or himself and the Corporation or any of its subsidiaries, to the fullest extent permitted by law, such Identified Person shall have no duty to communicate or offer such transaction or other business opportunity to the Corporation or any of its subsidiaries and shall not be liable to the Corporation or its stockholders or subsidiaries for breach of any fiduciary duty as a stockholder, director or officer of the Corporation solely by reason of the fact that such Identified Person pursues or acquires such corporate opportunity for itself, herself or himself, or offers or directs such corporate opportunity to another Person or does not communicate information regarding such corporate opportunity to the Corporation or its subsidiaries.

Notwithstanding anything to the contrary, the provisions of this Article 10 shall not release any Person who is or was an employee of the Corporation or any of its subsidiaries from any obligations or duties that such Person may have pursuant to any other agreement that such Person may have with the Corporation or any of its subsidiaries.

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For the purposes of this Article 10, a potential corporate opportunity shall not be deemed to be a corporate opportunity for the Corporation or any of its subsidiaries if it is a business opportunity that (i) the Corporation is neither financially or legally able, nor contractually permitted, to undertake, (ii) from its nature, is not in the line of the Corporation's business or is of no practical advantage to the Corporation or (iii) is one in which the Corporation has no interest or reasonable expectancy.

Any person or entity holding, purchasing or otherwise acquiring any interest in shares of capital stock of the Corporation shall be deemed to have notice of and to have consented to this Article 10.

**Article 11. Amendments** 

The Corporation reserves the right to amend, alter, change or repeal this Certificate of Incorporation in any manner permitted by Delaware Law and this Certificate of Incorporation and all rights and powers conferred upon stockholders, directors and officers herein are granted subject to this reservation. Notwithstanding the foregoing, the provisions set forth in Article 4.B, Article 4.C, Article 5, Article 6, Article 7, Article 8, Article 9, Article 10 and this Article 11 may not be repealed or amended in any respect, and no other provision may be adopted, amended or repealed which would be inconsistent with the provisions set forth in any of Article 4.B, Article 4.C, Article 5, Article 6, Article 7, Article 8, Article 9, Article 10 or this Article 11, unless, in addition to any vote required by Delaware Law, such action is approved by the affirmative vote of the holders of not less than 75% of the total voting power of all outstanding capital stock of the Corporation entitled to vote generally in the election of directors, voting together as a single class.

**Article 12. Definitions** 

For purposes of this Certificate of Incorporation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• " <u>affiliate</u>," with respect to a specified Person, means any Person that directly, or indirectly
through one or more intermediaries, controls, is controlled by or is under common control with such specified Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• " <u>Beneficially Owned</u> " (including the terms " <u>Beneficial Ownership</u> " and
" <u>Beneficially Owns</u> ") has such meaning as is set forth in Rule 13d-3 of the Exchange Act (as defined below) in effect as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• " <u>Business Day</u> " means a day other than a Saturday, Sunday, federal or New York State holiday or
other day on which commercial banks in New York City are authorized or required by law to close.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• " <u>control</u> " (including the terms " <u>controlling</u>," " <u>controlled by</u> " and " <u>under common control with</u> "), with respect to the relationship between or among two or more Persons, means the possession, directly or indirectly through one or more intermediaries, of the power to direct or
cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• " <u>Conversion Expiration Date</u> " means the 10-year anniversary of the closing date of the IPO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• " <u>Convertible Stock Conversion Conditions</u> " means the following two conditions, both of which
must be met: (i) the five year anniversary of the closing date of the IPO must have occurred and (ii) as of the conversion date, the price of the shares of Class A Common Stock has been equivalent to at least 2.0 times the IPO Price
based on the daily volume weighted average price of the shares of Class A Common Stock for 20 trading days over the 30 trading day period ending on the trading day immediately preceding the conversion date (subject to adjustment to reflect
stock splits, stock dividends, reorganizations, reclassifications, consolidations, mergers or sales or similar events).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• " <u>Forfeiture Date"</u> means the Price Forfeiture Date and the Termination Forfeiture Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• " <u>Funds</u> " means investment funds managed by the Sponsor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• " <u>Identified Persons</u> " means the Sponsor, any investment fund managed by the Sponsor, any Non-Employee Director (including any Non-Employee Director who serves as an officer of the Corporation in both his or her director and officer capacities) or any of their
respective affiliates, other than the Corporation and any of its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• " <u>IPO</u> " means the initial public offering of the Corporation on the New York Stock Exchange or
the NASDAQ.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• " <u>IPO Price</u> " means the initial price per share of Class A Common Stock paid by the public
in the IPO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• " <u>Non-Employee Director</u> " means a member of the Board of
Directors who is not an employee of the Corporation or any of its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• " <u>Permitted Transfer</u> " means a Transfer from a holder of shares of Class B Common Stock or
Convertible Common Stock, as applicable, to any Permitted Transferee, or a transfer from a Permitted Transferee to another Permitted Transferee or back to such original holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• " <u>Permitted Transferee</u> " means (i) any Fund, (ii) any affiliate of the Sponsor, other
than the Funds, and (iii) any entity controlled by any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• " <u>Person</u> " means a natural person, corporation, limited liability company, partnership, joint
venture, trust, unincorporated association or other legal entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• " <u>Price Forfeiture Date</u> " means the 11-year anniversary
of the closing date of the IPO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• " <u>Qualifying Change of Control Transaction</u> " means a merger or consolidation of the Corporation,
or any other transaction having an effect on stockholders substantially similar to that resulting from a merger or consolidation as a result of which the Sponsor and/or its affiliates shall no longer control the Corporation; *provided that* (i) the consideration per share payable in such transaction is equivalent to at least 2.0 times the IPO Price, and (ii) the closing of such transaction occurs on or after the third anniversary of the closing date of the IPO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• " <u>Sponsor</u> " means Arcline Investment Management LP and its founding partners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• " <u>Termination Forfeiture Date</u> " means the date on which the Amended and Restated Advisory and
Consulting Services Agreement between Arcline Investment Management LP and the Company dated as of [•], 2026 (as amended or supplemented from time to time) is terminated pursuant to its terms.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• " <u>Transfer</u> " of a share of Class B Common Stock or a share of Convertible Common Stock, as
applicable, shall mean any direct or indirect sale, assignment, transfer, conveyance, hypothecation or other transfer or disposition of such share or any legal or beneficial interest in such share (a " <u>transfer</u> "), whether or not
for value and whether voluntary or involuntary or by merger, consolidation or by operation of law, including, without limitation, a transfer of a share of Class B Common Stock or a share of Convertible Common Stock, as applicable, to a broker
or other nominee (regardless of whether there is a corresponding change in Beneficial Ownership), a transfer of a share of Class B Common Stock or a share of Convertible Common Stock, as applicable, among two or more unaffiliated or unrelated
holders, or the transfer of, or entering into a binding agreement with respect to, Voting Control over such share by proxy or otherwise (unless, in each case, otherwise explicitly exempted from the definition of "Transfer" hereunder), *provided*, *however*, that the following shall not be considered a "Transfer": (i) the grant of a proxy to officers or directors of the Corporation at the request of the Board of Directors in connection with actions to be
taken at an annual or special meeting of stockholders; (ii) the pledge of shares of Class B Common Stock or shares of Convertible Common Stock, as applicable, by a stockholder that creates a mere security interest in such shares pursuant
to a bona fide loan or indebtedness transaction for so long as such stockholder continues to exercise Voting Control over such pledged shares; *provided*, *however*, that a foreclosure on such shares or other similar action by the pledgee
shall constitute a Transfer unless such foreclosure or similar action qualifies as a Permitted Transfer; (iii) the fact that the spouse of any holder of shares of Class B Common Stock or shares of Convertible Common Stock, as applicable,
possesses or obtains an interest in such holder's shares of Class B Common Stock or shares of Convertible Common Stock, as applicable, arising solely by reason of the application of the community property laws of any jurisdiction, so long
as no other event or circumstance shall exist or have occurred that constitutes a "Transfer" of such shares of Class B Common Stock or shares of Convertible Common Stock, as applicable,; *provided* that any transfer of shares
by any holder of shares of Class B Common Stock or shares of Convertible Common Stock, as applicable, to such holder's spouse, including a transfer in connection with a divorce proceeding, domestic relations order or similar legal
requirement, shall constitute a "Transfer" of such shares of Class B Common Stock or shares of Convertible Common Stock, as applicable, unless otherwise exempt from the definition of "Transfer"; (iv) entering into a
trading plan pursuant to Rule 10b5-1 under the Exchange Act with a broker or other nominee where the holder entering into the plan retains Voting Control over the shares; *provided*, *however*, that
a Transfer of such shares of Class B Common Stock or a share of Convertible Common Stock, as applicable, by such broker or other nominee shall constitute a "Transfer" at the time of such Transfer; or (v) entering into a
support, voting, tender or similar agreement, arrangement or understanding (with or without granting a proxy) in connection with a merger or consolidation of the Corporation, or any other transaction having an effect on stockholders substantially
similar to that resulting from a merger or consolidation, or taking any actions contemplated thereby; *provided* that such merger, consolidation or other transaction and such agreement or understanding were approved by the Board of Directors in
advance of the entry into such agreement or understanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• " <u>Voting Control</u> " means, with respect to a share of Class B Common Stock or a share of
Convertible Common Stock, as applicable, the exclusive power (whether directly or indirectly) to vote or direct the voting of such share of Class B Common Stock or share of Convertible Common Stock, as applicable, by proxy, voting agreement or
otherwise.

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This Amended and Restated Certificate of Incorporation of the Corporation shall be effective at 8:00 a.m. (ET) on [•], 2026 (the "<u>Effective Time</u>").

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IN WITNESS WHEREOF, the undersigned has executed this Amended and Restated Certificate of Incorporation on [•]. 2026.

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| | |
|:---|:---|
| Arxis, Inc. | Arxis, Inc. |
| By: |  |
|  | Name: Azad Badakhsh |
|  | Title: Chief Financial Officer |

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## Exhibit 3.2

**Exhibit 3.2** 

**AMENDED AND RESTATED BYLAWS** 

**OF** 

**ARXIS, INC.** 

Capitalized terms used in these Amended and Restated Bylaws (as the same may be further amended and/or restated from time to time, the "<u>Bylaws</u>") but not otherwise defined herein shall have the meanings given such terms under the Corporation's Amended and Restated Certificate of Incorporation filed with the Secretary of State of the State of Delaware on [•], 2026 (as amended and/or restated from time to time, the "<u>Certificate of Incorporation</u>").

ARTICLE 1

Offices

Section 1.01 *. Registered Office.* The registered office of Arxis, Inc. (the "<u>Corporation</u>") in the State of Delaware shall be as set forth in the Certificate of Incorporation.

Section 1.02 *. Other Offices.* The Corporation may also have offices at such other places both within and without the State of Delaware as the Board of Directors may from time to time determine or the business of the Corporation may require.

Section 1.03 *. Books.* The books of the Corporation may be kept within or without the State of Delaware as the Board of Directors may from time to time determine or the business of the Corporation may require.

ARTICLE 2

Meetings of Stockholders

Section 2.01 *. Time and Place of Meetings.* All meetings of stockholders shall be held at such place, either within or without the State of Delaware, or at no place (by means of remote communication), on such date and at such time as may be determined from time to time by the Board of Directors (or the Chairperson of the Board of Directors in the absence of a designation by the Board of Directors). The Board of Directors may, in its sole discretion, determine that a meeting of stockholders shall not be held at any place, but may instead be held solely by means of remote communication as authorized under Delaware Law. If no determination is made by the Board of Directors, the place of meeting shall be the principal executive offices of the Corporation.

Section 2.02 *. Annual Meetings.* An annual meeting of stockholders shall be held for the election of directors to succeed those whose terms expire and to transact such other business as may properly be brought before the meeting in accordance with these Bylaws.

Section 2.03 *. Special Meetings.* Unless otherwise provided by the Certificate of Incorporation, special meetings of the stockholders may be called only by the Board of Directors, the Chairperson of the Board of Directors, the Corporation's Chief Executive Officer or the holders of a majority of the then-outstanding Class B Common Stock of the Corporation.

Section 2.04 *. Notice of Meetings and Adjourned Meetings; Waivers of Notice.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Whenever stockholders are required or permitted to take any action at a meeting, a written notice of the meeting shall be given which shall state the place, if any, date and hour of the meeting, the means of remote communications, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such meeting, the record date for determining the stockholders entitled to vote at the meeting (if such date is different from the record date for stockholders entitled to notice of the meeting) and, in the case of a special meeting, the purpose or purposes for which the meeting is called. Unless otherwise provided by Delaware Law, the Certificate of Incorporation or these Bylaws, such notice shall be given not less than 10 nor more than 60 days before the date of the meeting to each stockholder of record entitled to vote at such meeting. The Board of Directors or the chairperson of the meeting may adjourn the meeting to another time or place (whether or not a quorum is present), and notice need not be given of the adjourned meeting if the time, place, if any, and the means of remote communications, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such meeting, are announced at the meeting at which such adjournment is made or provided in any other manner permitted by Delaware Law. At the adjourned meeting, the Corporation may transact any business which might have been transacted at the original meeting. If the adjournment is for more than 30 days, or after the adjournment a new record date is fixed for the adjourned meeting, a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A written waiver of any such notice signed by the person entitled thereto, or a waiver by electronic transmission by the person entitled to notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends the meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Business transacted at any special meeting of stockholders shall be limited to the purposes stated in the notice.

Section 2.05 *. Quorum.* Unless otherwise provided under the Certificate of Incorporation or these Bylaws and subject to Delaware Law, the presence, in person or by proxy, of the holders of a majority in voting power of the outstanding capital stock of the Corporation generally entitled to vote at a meeting of stockholders shall constitute a quorum for the transaction of business. If, however, such quorum shall not be present or represented at any meeting of the stockholders, the chairperson of the meeting or the holders of a majority in voting power of the capital stock present in person or represented by proxy may adjourn the meeting, without notice other than announcement at the meeting, until a quorum shall be present or represented. At such adjourned meeting at which a quorum shall be present or represented any business may be transacted that might have been transacted at the meeting as originally notified.

Section 2.06 *. Voting.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each stockholder shall be entitled to the number of votes for each outstanding share of capital stock held by such stockholder as set forth in the Certificate of Incorporation. Any share of capital stock held by the Corporation shall have no voting rights. Except as otherwise provided by the Certificate of Incorporation or these Bylaws or required by law, in all matters other than the election of directors, the affirmative vote of a majority of the votes cast on the subject matter by the stockholders present in person or represented by proxy at the meeting and entitled to vote thereon shall be the act of the stockholders. Abstentions and broker non-votes shall not be counted as votes cast. Subject to the rights of the holders of any series of preferred stock to elect additional directors under specific circumstances, as may be set forth in the certificate of designations for such series of preferred stock, directors shall be elected by a plurality of the votes cast in respect of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each stockholder entitled to vote at a meeting of stockholders or to express consent or dissent to a corporate action in writing without a meeting may authorize another person or persons to act for such stockholder by proxy. No proxy shall be voted after three years from its date, unless said proxy provides for a longer period. The authorization of a person to act as proxy may be documented, signed and delivered in accordance with Delaware Law; *provided* that such authorization shall set forth, or be delivered with, information enabling the Corporation to determine the identity of the stockholder granting such authorization. A proxy shall be irrevocable if it states that it is irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. A stockholder may revoke any proxy which is not irrevocable by attending the meeting and voting in person or by delivering to the Secretary of the Corporation a revocation of the proxy or a new proxy bearing a later date.

Section 2.07 *. Action by Consent.* Except as otherwise provided in the Certificate of Incorporation and subject to the rights of the holders of any series of preferred stock then outstanding, as may be set forth in the certificate of designations for such series of preferred stock, any action required or permitted to be taken at any annual or special meeting of stockholders may be taken only upon the vote of stockholders at an annual or special meeting, as the case may be, duly noticed and called in accordance with Delaware Law and may not be taken by written consent of stockholders without a meeting.

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Section 2.08 *. Organization.* At each meeting of stockholders, the Chairperson of the Board of Directors, if one shall have been elected, or in the Chairperson's absence or if one shall not have been elected, such other director or officer of the Corporation designated by the Board of Directors, shall act as chairperson of the meeting. The Secretary (or in the Secretary's absence or inability to act, the person whom the chairperson of the meeting shall appoint secretary of the meeting) shall act as secretary of the meeting and keep the minutes thereof. The Board of Directors may adopt such rules and regulations for the conduct of the meeting of stockholders as it shall deem appropriate. Except to the extent inconsistent with these Bylaws or such rules and regulations as adopted by the Board of Directors, the chairperson of a meeting shall have the right and authority to convene and (for any or no reason) to recess and/or to adjourn the meeting, to prescribe such rules, regulations and procedures and to do all such acts as, in the judgment of such chairperson, are appropriate for the proper conduct of the meeting.

Section 2.09 *. Order of Business.* The order of business at all meetings of stockholders shall be as determined by the chairperson of the meeting or the Board of Directors.

Section 2.10. *Nomination of Directors and Proposal of Other Business*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Annual Meetings of Stockholders*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Nominations of persons for election to the Board of Directors or the proposal of other business to be transacted by the stockholders at an annual meeting of stockholders may be made only (A) pursuant to the Corporation's notice of meeting (or any supplement thereto), (B) by or at the direction of the Board of Directors or any committee thereof duly authorized, (C) as may be provided in the certificate of designations for any series of preferred stock or (D) by any stockholder of the Corporation who is a stockholder of record at the time of giving of notice provided for in Section 2.10(a)(ii) and at the time of the annual meeting, who shall be entitled to vote at the meeting and who complies with the procedures set forth in this Section 2.10(a), and, except as otherwise required by law, any failure to comply with these procedures shall result in the nullification of such nomination or proposal. For the avoidance of doubt, the foregoing clause (D) shall be the exclusive means for a stockholder to make nominations or propose other business at an annual meeting of stockholders (other than a proposal included in the Corporation's proxy statement pursuant to and in compliance with Rule 14a-8 under the Securities Exchange Act of 1934, as amended (together with the rules and regulations promulgated thereunder, the "<u>Exchange Act</u>")).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) For nominations or other business to be properly brought before an annual meeting of stockholders by a stockholder pursuant to clause (D) of Section 2.10(a)(i), the stockholder must have given timely notice thereof in writing to the Secretary of the Corporation and any such proposed business (other than the nominations of persons for election to the Board of Directors) must constitute a proper matter for stockholder action. To be timely, a stockholder's notice shall be delivered to, or mailed to and received by, the Secretary of the Corporation at the principal executive offices of the Corporation not less than 90 days nor more than 120 days prior to the first anniversary of the preceding year's annual meeting of stockholders (which prior year's annual meeting shall, for purposes of the Corporation's first annual meeting of stockholders following its initial public offering of shares of its Class A Common Stock, be deemed to have occurred on [•], 2026); *provided, however*, that in the event that the date of the annual meeting is advanced more than 30 days prior to such anniversary date or delayed more than 70 days after such anniversary date then to be timely such notice must be received by the Corporation no earlier than 120 days prior to such annual meeting and no later than the later of 90 days prior to the date of the meeting or the 10th day following the day on which public announcement of the date of the meeting was first made by the Corporation. The minimum timeliness requirements of this paragraph shall apply for purposes of determining whether a stockholder's notice is timely under these Bylaws despite any different timeline described in Rule 14a-19 or elsewhere in Regulation 14A under the Exchange Act, including with respect to any statements or information required to be provided to the Corporation pursuant to Rule 14a-19 of the Exchange Act by a stockholder and not otherwise specified herein. In no event shall the adjournment, recess or postponement of any meeting, or any announcement thereof, commence a new time period (or extend any time period) for the giving of a stockholder's notice as described above. The number of nominees a stockholder may nominate for election at the annual meeting on its own behalf (or in the case of a stockholder giving the notice on behalf of a beneficial owner, the number of nominees a stockholder may nominate for election at the annual meeting on behalf of such beneficial owner) shall not exceed the number of directors to be elected at such annual meeting.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) A stockholder's notice to the Secretary shall set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) as to each person whom the stockholder proposes to nominate for election or reelection as a director: (1) the name, age, business address and residence address of such person; (2) the principal occupation or employment of such person; (3) (i) for each class or series, the number of shares of capital stock of the Corporation that are held of record or are beneficially owned (and proof of any such beneficial ownership) by such person and any affiliates or associates (each within the meaning of Rule 12b-2 promulgated under the Exchange Act for purposes of these Bylaws) of such person, including any such shares that such person, or any affiliates or associates of such person, has the right to acquire beneficial ownership of, (ii) the name of each nominee holder of shares of all capital stock of the Corporation owned beneficially (and proof of any such beneficial ownership) but not of record by such person or any affiliates or associates of such person, and the number of such shares of each class or series of capital stock held by each such nominee holder, including any such shares that such nominee holder has the right to acquire beneficial ownership of, (iii) any agreement, arrangement, relationship or understanding pursuant to which such person, or any affiliates or associates of such person, has a right to vote any shares of any security of the Corporation, (iv) a description of any agreement, arrangement or understanding (including, regardless of the form of settlement, any derivative, long or short positions, profit interests, forwards, futures, swaps, options, warrants, convertible securities, stock appreciation or similar rights, hedging transactions and borrowed or loaned shares) that has been entered into by or on behalf of, or any other agreement, arrangement or understanding that has been made, the effect or intent of which is to create or mitigate loss to, manage risk or benefit of share price changes for or increase or decrease the voting power of, such person, or any affiliates or associates of such person, with respect to the Corporation's securities and (v) any direct or indirect interest of such person, or any affiliates or associates of such person, in any employment agreement, collective bargaining agreement or consulting agreement with the Corporation; (4) all information relating to such person, or any affiliates or associates of such person, that is required to be disclosed in solicitations of proxies for election of directors, or is otherwise required, in each case pursuant to Regulation 14A under the Exchange Act; (5) all completed and signed questionnaires in the same form as those questionnaires required of the Corporation's directors (which will be provided to such person within five business days following a written request therefor); (6) a statement that such person has read the Corporation's corporate governance guidelines and any other Corporation policies and guidelines applicable to directors (which will be provided to such person within five business days following a written request therefor), and a written agreement from such person to adhere to the foregoing policies and guidelines, as amended from time to time, if he or she is elected as a director; (7) an executed agreement by such person: (i) consenting to serve as a director if elected and (if applicable) to being named in the Corporation's proxy statement and/or form of proxy relating to the meeting at which directors are to be elected, along with a representation that such person intends to serve a full term as a director if elected, and (ii) that such person is not and will not become a party to (x) any direct or indirect compensatory, payment or other financial agreement, arrangement or understanding with any other person or entity other than the Corporation, in each case in connection with candidacy or service as a director of the Corporation (a "<u>Third-Party Compensation Arrangement</u>") that has not been fully disclosed to the Corporation prior to, or concurrently with, the submission of the notice from the stockholder required by this Section 2.10, (y) any agreement, arrangement or understanding, including the amount of any payment or payments received or receivable thereunder, with any other person or entity as to how such person would vote or act on any issue or question as a director (a "<u>Voting Commitment</u>") that has not been fully disclosed to the Corporation prior to, or concurrently with, the submission of the notice from the stockholder required by this Section 2.10 or (z) any Voting Commitment that could limit or interfere with such person's ability to comply, if elected as a director of the Corporation, with such person's fiduciary duties under applicable law; and (8) such other information reasonably requested by the Corporation to determine whether such person is qualified under the Certificate of Incorporation, these Bylaws, the rules or regulations of any stock exchange applicable to the Corporation or any law or regulation applicable to the Corporation to serve as a director and/or independent director of the Corporation;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) as to any other business that the stockholder proposes to bring before the meeting: (1) a brief description of the business desired to be brought before the meeting; (2) the text of the proposal or business (including the text of any resolutions proposed for consideration and in the event that such business includes a proposal to amend these Bylaws, the text of the proposed amendment); (3) the reasons for conducting such business; and (4) any substantial interest (within the meaning of Item 5 of Schedule 14A under the Exchange Act) in such business of such stockholder and the beneficial owner, if any, on whose behalf the proposal is made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) as to the stockholder giving the notice and the beneficial owner, if any, on whose behalf the nomination or proposal is made: (1) the name and address of such stockholder (as they appear on the Corporation's books) and any such beneficial owner; (2) a representation as to whether such stockholder or such beneficial owner has complied with all applicable legal requirements in connection with its acquisition of shares or other securities of the Corporation; (3) a written agreement from such stockholder that it is a holder of record of stock of the Corporation entitled to vote at such meeting and intends to appear at the meeting in person or through a qualified representative (as defined in Section 2.10(c)(ii)) to make such nomination or proposal; (4) in the case of a nomination, a written agreement from such stockholder (and such beneficial owner) that it (or they) will not submit any substitute nominations unless they are made within the time periods set forth in this Section 2.10 and the stockholder and the substitute nominees will otherwise comply with this Section 2.10; (5) in the case of a nomination, a written agreement from such stockholder (and such beneficial owner) that it (or they) has not, and shall not, nominate a number of nominees (inclusive of substitutes) that exceeds the number of directors to be elected at the annual meeting; and (6) a written agreement that such stockholder (and such beneficial owner) shall (i) update and supplement the notice required by this Section 2.10, if necessary, so that the information provided or required in such notice shall be true and correct as of the record date for determining the stockholders entitled to receive notice of the annual meeting, and as of the date that is five business days prior to the meeting or any adjournment or postponement thereof and (ii) deliver such update and supplement so that it is received by the Secretary at the principal executive offices of the Corporation (A) not later than the later of (x) five business days after the record date for determining the stockholders entitled to receive notice of the annual meeting and (y) five business days after the first public announcement of such record date, in the case of any update and supplement required to be made as of the record date, and (B) not later than five business days before the meeting or any adjournment or postponement thereof, in the case of any update and supplement required to be made as of the date that is five business days prior to the meeting or any adjournment or postponement thereof. For the avoidance of doubt, the obligation to update and supplement as set forth in this Section 2.10 or any other section of these Bylaws shall not limit the Corporation's rights with respect to any deficiencies in any stockholder's notice, extend any applicable deadlines under these Bylaws or enable or be deemed to permit a stockholder who has previously submitted a stockholder's notice under these Bylaws to amend or update any proposal or to submit any new proposal, including by changing or adding nominees, matters, business and/or resolutions proposed to be brought before a meeting of stockholders;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) as to each stockholder giving the notice, the beneficial owner, if any, on whose behalf the nomination or proposal is made, and, if such stockholder or beneficial owner is an entity, each person controlling, controlled by or under common control with such stockholder or beneficial owner (each such person or entity contemplated by this clause (D), a "<u>Proposing Person</u>"): (1) for each class or series, the number of shares of capital stock of the Corporation that are held of record or are beneficially owned (and proof of any such beneficial ownership) by such Proposing Person, or any associates (within the meaning of Rule 12b-2 promulgated under the Exchange Act for purposes of these Bylaws) of such Proposing Person, including any such shares that such Proposing Person, or any associates of such Proposing Person, has the right to acquire beneficial ownership of; (2) the name of each nominee holder of each class or series of capital stock of the Corporation that are owned beneficially (and proof of any such beneficial ownership) but not of record by such Proposing Person, or any associates of such Proposing Person, and the number of such shares of each class or series of capital stock of the Corporation held by each such nominee holder, including any such shares that such nominee holder has the right to acquire beneficial ownership of; (3) a description of any agreement, arrangement, relationship or understanding pursuant to which such Proposing Person, or any associates of such Proposing Person, has a right to vote any shares of any security of the Corporation; (4) a description of any material pending or threatened legal proceeding in which such Proposing Person is a party or material participant involving the Corporation or any of its officers or directors, or any affiliate of the Corporation; (5) a description of (i) any plans or proposals which any such Proposing Person may have with respect to securities of the Corporation that would be required to be disclosed pursuant to Item 4 of Exchange Act Schedule 13D (regardless of whether the requirement to file a Schedule 13D is applicable) and (ii) any agreement, arrangement or understanding (including the identity of the parties thereto) with respect to the nomination or other business between or among such Proposing Parties and any other parties, including without limitation any agreements that would be required to be disclosed pursuant to Item 5 or Item 6 of Exchange Act Schedule 13D (regardless of whether the requirement to file a Schedule 13D is applicable), in each case as of the date the notice required by this Section 2.10 is delivered to the Corporation by the stockholder, or beneficial owner in such business, if any, presenting the nomination or other proposal; (6) a description of any agreement, arrangement or understanding (including, regardless of the form of settlement, any derivative, long or short positions, profit interests, forwards, futures, swaps, options, warrants, convertible securities, stock appreciation or similar rights, hedging transactions and borrowed or loaned shares) that has been entered into by or on behalf of, or any other agreement, arrangement or understanding that has been made, the effect or intent of which is to create or mitigate loss to, manage risk or benefit of share price changes for or increase or decrease the voting power of, such Proposing Person, or any associates of such Proposing Person, with respect to the Corporation's securities; (7) a written representation as to whether any Proposing Person, or any other participant as defined in Item 4 of Schedule 14A under the Exchange Act, will engage in a solicitation with respect to such nomination or other business and, if so, whether such solicitation will be conducted as an exempt solicitation under Rule 14a-2(b) of the Exchange Act, the name of each participant in such solicitation and the amount of the cost of solicitation that has been and will be borne, directly or indirectly, by each participant in such solicitation and (x) in the case of a proposal of business other than nominations, whether such person or group intends to deliver a proxy statement and/or form of proxy to holders of at least the percentage of the Corporation's voting shares required under applicable law to carry the proposal, (y) in the case of any solicitation that is subject to Rule 14a-19 of the Exchange Act, confirming that such person or group will deliver, through means satisfying each of the conditions that would be applicable to the Corporation under either Exchange Act Rule 14a-16(a) or Exchange Act Rule 14a-16(n), a proxy statement and/or form of proxy to holders of at least 67% of the voting power of the Corporation's capital stock entitled to vote generally in the election of directors and/or (z) whether such person or group intends to otherwise solicit proxies or votes from holders in support of such proposal or nomination (for purposes of this clause (7), the term "holders" shall include, in addition to stockholders of record, any beneficial owners pursuant to Rule 14b-1 and Rule 14b-2 of the Exchange Act); (8) a representation that promptly after any Proposing Person solicits the holders of the Corporation's stock referred to in the representation required under the preceding clause, and in any event no later than five business days before the applicable meeting, such Proposing Person will provide the Corporation with reasonable documentary evidence (as determined by the Corporation or one of its representatives, acting in good faith), which may take the form of a certified statement and documentation from a proxy solicitor, specifically demonstrating that the necessary steps have been taken to deliver a proxy statement and/or form of proxy to holders of such percentage of the Corporation's stock; (9) any direct or indirect interest of such Proposing Person, or any associates of such Proposing Person, in any contract (including, in any such case, any employment agreement, collective bargaining agreement or consulting agreement) with the Corporation, or any affiliate of the Corporation; (10) any other information relating to such Proposing Person, or any associates of such Proposing Person, or proposed business that would be required to be disclosed in a proxy statement or other filing required to be made in connection with the solicitation of proxies in support of such nominee or proposal pursuant to Section 14 of the Exchange Act; and (11) such other information relating to any proposed item of business as the Corporation may reasonably require to determine whether such proposed item of business is a proper matter for stockholder action.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Special Meetings of Stockholders*. If the election of directors is included as business to be brought before a special meeting in the Corporation's notice of meeting, then nominations of persons for election to the Board of Directors at a special meeting of stockholders may be made by any stockholder who is a stockholder of record at the time of giving of notice provided for in this Section 2.10(b) and at the time of the special meeting, who shall be entitled to vote at the meeting and who complies with the procedures set forth in this Section 2.10(b); *provided, however*, that the number of nominees a stockholder may nominate for election at the special meeting on its own behalf (or in the case of a stockholder giving the notice on behalf of a beneficial owner, the number of nominees a stockholder may nominate for election at the special meeting on behalf of such beneficial owner) shall not exceed the number of directors to be elected at such special meeting. For nominations to be properly brought by a stockholder before a special meeting of stockholders pursuant to this Section 2.10(b), the stockholder must have given timely notice thereof in writing to the Secretary of the Corporation. To be timely, a stockholder's notice shall be delivered to or mailed and received at the principal executive offices of the Corporation (i) not earlier than 120 days prior to the date of the special meeting nor (ii) later than the later of 90 days prior to the date of the special meeting and the 10th day following the day on which public announcement of the date of the special meeting was first made by the Corporation. A stockholder's notice to the Secretary shall comply with the notice requirements of Section 2.10(a)(iii). The minimum timeliness requirements of this paragraph shall apply for purposes of determining whether a stockholder's notice is timely under these Bylaws despite any different timeline described in Rule 14a-19 or elsewhere in Regulation 14A under the Exchange Act, including with respect to any statements or information required to be provided to the Corporation pursuant to Rule 14a-19 of the Exchange Act by a stockholder and not otherwise specified herein. In no event shall the adjournment, recess or postponement of a special meeting, or any announcement thereof, commence a new time period (or extend any time period) for the giving of a stockholder's notice as described above. Such notice of a stockholder shall include the same information, representations, certifications and agreements that would be required if the stockholder were to make a nomination in connection with an annual meeting of stockholders pursuant to the preceding provisions of this Section 2.10, and such stockholder shall be obligated to provide the same supplemental or additional information in connection with a special meeting of stockholders as required pursuant to the preceding provisions of this Section 2.10 in connection with an annual meeting of stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *General*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No person shall be eligible to be nominated by a stockholder to be elected or reelected at any meeting of stockholders to serve as a director of the Corporation unless nominated in accordance with the procedures set forth in this Section 2.10. No business proposed by a stockholder shall be conducted at a stockholder meeting except in accordance with this Section 2.10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting any remedy available to the Corporation, and unless otherwise determined by the Board of Directors, the Chairperson of the Board of Directors, or the chairperson of the meeting, a stockholder may not present nominations for director or business proposals at an annual or special meeting of stockholders (and any such nominee shall be disqualified from standing for election or re-election), notwithstanding proxies or votes may have been solicited and/or received with respect thereto, if such stockholder, any beneficial owner, any Proposing Person or any nominee or substitute nominee for director: (A) acted contrary to any representation, statement, certification or agreement required by the applicable provisions of these Bylaws; (B) otherwise failed to comply with these Bylaws or with any law, rule or regulation identified in these Bylaws, including all applicable requirements of the Exchange Act and the rules and regulations thereunder with respect to the matters set forth in this Section 2.10; *provided, however*, that any references in these Bylaws to the Exchange Act or the rules and regulations promulgated thereunder are not intended to and shall not limit any requirements applicable to nominations or proposals as to any other business to be considered pursuant to this Section 2.10; or (C) provided information to the Corporation (whether required by these Bylaws or otherwise) that is false, misleading, inaccurate or incomplete in any material respect. The Board of Directors, the Chairperson of the Board of Directors or the chairperson of the meeting shall, if the facts warrant, determine and declare to the meeting that a nomination was not made in accordance with the procedures prescribed by these Bylaws or that business was not properly brought before the meeting, and if he/she should so determine, he/she shall so declare to the meeting and the defective nomination shall be disregarded or such business shall not be transacted, as the case may be. Notwithstanding the foregoing provisions of this Section 2.10, unless otherwise required by law, if the stockholder (or a qualified representative of the stockholder) does not appear at the annual or special meeting of stockholders of the Corporation to present a nomination or other proposed business, such nomination shall be disregarded or such proposed business shall not be transacted, as the case may be, notwithstanding that proxies in respect of such vote may have been received by the Corporation and counted for purposes of determining a quorum. For purposes of this Section 2.10, to be considered a qualified representative of the stockholder, a person must be a duly authorized officer, manager or partner of such stockholder or must be authorized by a writing executed by such stockholder or an electronic transmission delivered by such stockholder to act for such stockholder as proxy at the meeting of stockholders and such person must produce such writing or electronic transmission, or a reliable reproduction of the writing or electronic transmission, at the meeting of stockholders.

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Notwithstanding anything to the contrary in these Bylaws, unless otherwise required by law, if any Proposing Person (1) provides notice pursuant to Rule 14a-19(b) promulgated under the Exchange Act (or has previously filed a preliminary or definitive proxy statement with the information required by Rule 14a-19(b)) with respect to any proposed nominee for election as a director of the Corporation and (2) subsequently fails to comply with the requirements of Rule 14a-19(a)(2) or Rule 14a-19(a)(3) promulgated under the Exchange Act (or fails to timely provide reasonable evidence sufficient to satisfy the Corporation that such Proposing Person has met the requirements of Rule 14a-19(a)(3) promulgated under the Exchange Act in accordance with the following sentence), then the nomination of each such proposed nominee shall be disregarded, notwithstanding that the nominee is included as a nominee in the Corporation's proxy statement, notice of meeting or other proxy materials for any meeting (or any supplement thereto) and notwithstanding that proxies or votes in respect of the election of such proposed nominees may have been received by the Corporation (which proxies and votes shall be disregarded). Upon request by the Corporation, if any Proposing Person provides notice pursuant to Rule 14a-19(b) promulgated under the Exchange Act (or has previously filed a preliminary or definitive proxy statement with the information required by Rule 14a-19(b)), such Proposing Person, shall deliver to the Corporation, no later than five business days prior to the applicable meeting, reasonable evidence that it has met the requirements of Rule 14a-19(a)(3) promulgated under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Compliance with Section 2.10(a) and Section 2.10(b) shall be the exclusive means for a stockholder to make nominations or submit other business (other than as provided in Section 2.10(c)(iv)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notwithstanding anything to the contrary, the notice requirements set forth herein with respect to the proposal of any business pursuant to this Section 2.10 shall be deemed satisfied by a stockholder if such stockholder has submitted a proposal to the Corporation in compliance with Rule 14a-8 under the Exchange Act, and such stockholder's proposal has been included in a proxy statement that has been prepared by the Corporation to solicit proxies for the meeting of stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Any stockholder directly or indirectly soliciting proxies from other stockholders in connection with any annual or special meeting of stockholders must use a proxy card color other than white, which shall be reserved for the exclusive use for solicitation by or on behalf of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) For purposes of these Bylaws, "business day" means any day other than Saturday, Sunday or a day on which banks are closed in New York City, New York; and "close of business" means 5:00 p.m. local time at the principal executive offices of the Corporation on any calendar day, whether or not the day is a business day.

Section 2.11 *. Delivery to the Corporation.* Whenever Section 2.10 requires one or more persons (including a record or beneficial owner of capital stock) to deliver a document or information to the Corporation or any officer, employee or agent thereof (including any notice, request, questionnaire, revocation, representation or other document or agreement), except as otherwise requested or consented to by the Corporation, such document or information shall be in writing exclusively (and not in an electronic transmission) and shall be delivered exclusively by hand (including, without limitation, overnight courier service) or by certified or registered mail, return receipt requested, and the Corporation shall not be required to accept delivery of any document not in such written form or so delivered.

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ARTICLE 3

Directors

Section 3.01 *. Number, Election and Term of Office.* The total number of directors constituting the Board of Directors shall be fixed by or in the manner provided in the Certificate of Incorporation. Directors shall be elected by the stockholders at the annual meeting, and the term of each director so elected shall be as set forth in the Certificate of Incorporation. Notwithstanding the foregoing, each director shall hold office until such director's successor shall have been duly elected and qualified or until such director's earlier death, resignation, retirement, disqualification or removal from office. Directors need not be stockholders.

Section 3.02 *. Quorum and Manner of Acting.* Except as otherwise provided in the Certificate of Incorporation or these Bylaws or required by law, a majority of directors constituting the Board of Directors shall constitute a quorum for the transaction of business at any meeting of the Board of Directors, and the act of a majority of the directors present at any meeting at which a quorum is present shall be the act of the Board of Directors. When a meeting of the Board of Directors is adjourned to another time or place (whether or not a quorum is present), notice need not be given of the adjourned meeting if the time and place thereof are announced at the meeting at which the adjournment is taken. At the adjourned meeting, the Board of Directors may transact any business which might have been transacted at the original meeting. If a quorum shall not be present at any meeting of the Board of Directors, the directors present thereat shall adjourn the meeting, from time to time, without notice other than announcement at the meeting, until a quorum shall be present.

Section 3.03 *. Time and Place of Meetings.* The Board of Directors shall hold its meetings at such place, either within or without the State of Delaware, and at such time as may be determined from time to time by the Board of Directors (or the Chairperson of the Board of Directors in the absence of a determination by the Board of Directors).

Section 3.04 *. Annual Meeting.* The Board of Directors may meet for the purpose of organization, the election of officers and the transaction of other business, as soon as practicable after each annual meeting of stockholders. Notice of such meeting need not be given. In the event such annual meeting is not so held, the annual meeting of the Board of Directors may be held at such place, if any, either within or without the State of Delaware, on such date and at such time as shall be specified in a notice thereof given as hereinafter provided in Section 3.06 herein or in a waiver of notice thereof signed by any director who chooses to waive the requirement of notice.

Section 3.05. *Regular Meetings*. Regular meetings of the Board of Directors may be held at such places and times as shall be determined from time to time by the Board of Directors. After the place, if any, and time of regular meetings of the Board of Directors shall have been determined and notice thereof shall have been once given to each member of the Board of Directors, regular meetings may be held without further notice being given.

Section 3.06 *. Special Meetings.* Special meetings of the Board of Directors may be called by the Chairperson of the Board of Directors or the Corporation's Chief Executive Officer and shall be called by the Chairperson of the Board of Directors, the Corporation's Chief Executive Officer or the Secretary on the written request of any director. Notice of special meetings of the Board of Directors shall be given to each director by written notice, electronic transmission or orally (in person or by telephone) at least 24 hours before the scheduled start of the meeting. A director may waive notice of a special meeting, which waiver may be given before, at or after the meeting. Attendance by a director at a special meeting is waiver of notice of that meeting, unless the director objects at the beginning of the meeting to the transaction of business because the meeting is not lawfully called or convened and thereafter does not participate in the meeting.

Section 3.07 *. Committees.* The Board of Directors may designate one or more committees, each committee to consist of one or more of the directors of the Corporation. The Board of Directors may designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. In the absence or disqualification of a member of a committee, the member or members present at any meeting and not disqualified from voting, whether or not such member or members constitute a quorum, may unanimously appoint another member of the Board of Directors to act at the meeting in the place of any such absent or disqualified member. Any such committee, to the extent provided in the resolution of the Board of Directors, shall have and may exercise all the powers and authority of the Board of Directors in the management of the business and affairs of the Corporation, and may authorize the seal of the Corporation to be affixed to all papers which may require it; but no such committee shall have the power or authority in reference to the following matters: (a) approving or adopting, or recommending to the stockholders, any action or matter expressly required by Delaware Law to be submitted to the stockholders for approval or (b) adopting, amending or repealing any Bylaw of the Corporation. Each committee shall keep regular minutes of its meetings and report the same to the Board of Directors when required.

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Section 3.08 *. Action by Consent.* Unless otherwise restricted by the Certificate of Incorporation or these Bylaws, any action required or permitted to be taken at any meeting of the Board of Directors or of any committee thereof may be taken without a meeting, if all members of the Board of Directors or committee, as the case may be, consent thereto in writing or by electronic transmission. A consent may be documented, signed and delivered in any manner permitted by Delaware Law. After an action is taken, the consent or consents relating thereto shall be filed with the minutes of proceedings of the Board of Directors or committee, in the same paper or electronic form as the minutes are maintained.

Section 3.09 *. Remote Meetings.* Unless otherwise restricted by the Certificate of Incorporation or these Bylaws, members of the Board of Directors, or any committee designated by the Board of Directors, may participate in a meeting of the Board of Directors, or such committee, as the case may be, by means of conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other, and such participation in a meeting shall constitute presence in person at the meeting.

Section 3.10 *. Resignation.* Any director may resign from the Board of Directors at any time by giving notice in writing or by electronic transmission to the Board of Directors or to the Secretary of the Corporation. The resignation of any director shall take effect upon receipt of notice thereof or at such later time as shall be specified in such notice; and unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

Section 3.11 *. Vacancies.* Except as otherwise provided in the Certificate of Incorporation or required by law, vacancies on the Board of Directors resulting from the death, resignation, retirement, disqualification, removal from office or otherwise of a director or directors and newly created directorships resulting from any increase in the number of directors shall be filled in accordance with the Certificate of Incorporation.

Section 3.12 *. Removal.* Directors of the Corporation may be removed from office in the manner provided in the Certificate of Incorporation and applicable law.

Section 3.13 *. Compensation.* Unless otherwise restricted by the Certificate of Incorporation or these Bylaws, the Board of Directors shall have authority to fix the compensation of directors, including fees and reimbursement of expenses.

ARTICLE 4

Officers

Section 4.01 *. Principal Officers.* The principal officers of the Corporation shall be appointed by the Board of Directors and may consist of a Chief Executive Officer, a President, one or more Vice Presidents, a Treasurer and a Secretary who shall have the duty, among other things, to record the proceedings of the meetings of stockholders and directors in a book kept for that purpose. The Corporation may also have such other principal officers as the Board of Directors may in its discretion appoint. One person may hold the offices and perform the duties of any two or more of said offices, except that no one person shall hold the offices and perform the duties of President and Secretary.

Section 4.02 *. Appointment, Term of Office and Remuneration.* The principal officers of the Corporation shall be appointed by the Board of Directors in the manner determined by the Board of Directors. Each such officer shall hold office for such period as the Board of Directors may from time to time determine and until his or her successor is appointed, or until his or her earlier death, resignation, retirement, disqualification or removal from office. The remuneration of all officers of the Corporation shall be fixed by the Board of Directors. Any vacancy in any office shall be filled in such manner as the Board of Directors shall determine.

------

Section 4.03 *. Subordinate Officers.* In addition to the principal officers enumerated in Section 4.01 herein, the Corporation may have one or more Assistant Treasurers, Assistant Secretaries and Assistant Controllers and such other subordinate officers, agents and employees as the Board of Directors may deem necessary, each of whom shall hold office for such period as the Board of Directors may from time to time determine. The Board of Directors may delegate to any principal officer the power to appoint and to remove any such subordinate officers, agents or employees.

Section 4.04 *. Removal.* Any officer may be removed, with or without cause, at any time, by resolution adopted by the Board of Directors or, with respect to any subordinate officer appointed pursuant to Section 4.03, by any principal officer to whom the Board of Directors has delegated the power to remove such officer.

Section 4.05 *. Resignations.* Any officer may resign at any time by giving written notice to the Board of Directors (or to a principal officer if the Board of Directors has delegated to such principal officer the power to appoint and to remove such officer). The resignation of any officer shall take effect upon receipt of notice thereof or at such later time as shall be specified in such notice; and unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

Section 4.06 *. Powers and Duties.* The officers of the Corporation shall have such powers and perform such duties incident to each of their respective offices and such other duties as may from time to time be conferred upon or assigned to them by the Board of Directors.

ARTICLE 5

CAPITAL STOCK

Section 5.01 *. Certificates for Stock; Uncertificated Shares.* The shares of the Corporation shall be in book-entry, uncertificated form; *provided* that the Board of Directors may provide by resolution or resolutions that some or all of any or all classes or series of its stock shall be certificated shares or a combination of certificated and uncertificated shares. Except as otherwise required by law, the rights and obligations of the holders of uncertificated shares and the rights and obligations of the holders of shares represented by certificates of the same class and series shall be identical. Every holder of stock represented by certificates shall be entitled to have a certificate signed by, or in the name of, the Corporation by any two authorized officers of the Corporation representing the number of shares registered in certificate form. Any or all of the signatures on the certificate may be a facsimile. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the Corporation with the same effect as if such person were such officer, transfer agent or registrar at the date of issue. The Corporation shall not have power to issue a certificate in bearer form.

Section 5.02. *Lost Certificates*. The Corporation may issue a new certificate of stock or uncertificated shares in the place of any certificate theretofore issued by it that is alleged to have been lost, stolen or destroyed, and the Corporation may require the owner of the lost, stolen or destroyed certificate, or such owner's legal representative, to give the Corporation a bond sufficient to indemnify it against any claim that may be made against it on account of the alleged loss, theft or destruction of any such certificate or the issuance of such new certificate or uncertificated shares.

Section 5.03 *. Transfer of Shares.* Shares of the stock of the Corporation may be transferred on the record of stockholders of the Corporation by the holder thereof or by such holder's duly authorized attorney upon surrender of a certificate therefor properly endorsed or upon receipt of proper transfer instructions from the registered holder of uncertificated shares or by such holder's duly authorized attorney and upon compliance with appropriate procedures for transferring shares in uncertificated form, unless waived by the Corporation.

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Section 5.04 *. Authority for Additional Rules Regarding Transfer.* Subject to any limitations under Delaware Law, the Board of Directors shall have the power and authority to make all such rules and regulations as they may deem expedient concerning the issue, transfer and registration of certificated or uncertificated shares of the stock of the Corporation, as well as for the issuance of new certificates in lieu of those which may be lost or destroyed, and may require of any stockholder requesting replacement of lost or destroyed certificates bond in such amount and in such form as they may deem expedient to indemnify the Corporation, and/or the transfer agents and/or the registrars of its stock against any claims arising in connection therewith.

ARTICLE 6

General Provisions

Section 6.01 *. Fixing the Record Date.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In order that the Corporation may determine the stockholders entitled to notice of any meeting of stockholders or any adjournment thereof, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing such record date is adopted by the Board of Directors, and which record date shall not be more than 60 nor less than 10 days before the date of such meeting. If the Board of Directors so fixes a date, such date shall also be the record date for determining the stockholders entitled to vote at such meeting unless the Board of Directors determines, at the time it fixes such record date, that a later date on or before the date of the meeting shall be the date for making such determination. If no record date is fixed by the Board of Directors, the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held. A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; *provided, however,* that the Board of Directors may in its sole discretion or as required by law fix a new record date for determination of stockholders entitled to vote at the adjourned meeting, and in such case shall fix the same date or an earlier date as the record date for stockholders entitled to notice of such adjourned meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In order that the Corporation may determine the stockholders entitled to receive payment of any dividend or other distribution or allotment of any rights or the stockholders entitled to exercise any rights in respect of any change, conversion or exchange of stock, or for the purpose of any other lawful action, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted, and which record date shall not be more than 60 days prior to such action. If no record date is fixed, the record date for determining stockholders for any such purpose shall be at the close of business on the day on which the Board of Directors adopts the resolution relating thereto.

Section 6.02 *. Dividends.* Subject to limitations contained in Delaware Law and the Certificate of Incorporation, the Board of Directors may declare and pay dividends upon the shares of capital stock of the Corporation, which dividends may be paid either in cash, in property or in shares of the capital stock of the Corporation.

Section 6.03 *. Year.* The fiscal year of the Corporation shall commence on January 1 and end on December 31 of each year.

Section 6.04 *. Corporate Seal.* The corporate seal shall have inscribed thereon the name of the Corporation, the year of its organization and the words "Corporate Seal, Delaware." The seal may be used by causing it or a facsimile thereof to be impressed, affixed or otherwise reproduced.

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Section 6.05 *. Voting of Stock Owned by the Corporation.* The Board of Directors may authorize any person, on behalf of the Corporation, to attend, vote at and grant proxies to be used at any meeting of stockholders of any corporation (except this Corporation) in which the Corporation may hold stock.

Section 6.06 *. Amendments.* The Board of Directors shall have the power to adopt, amend or repeal, in whole or in part, these Bylaws without the assent or vote of the stockholders in any manner not inconsistent with Delaware Law or the Certificate of Incorporation. Except as otherwise provided by the Certificate of Incorporation, the stockholders may adopt, amend or repeal, in whole or in part, these Bylaws only with the affirmative vote of the holders of not less than 75% of the voting power of all outstanding securities of the Corporation entitled to vote generally in the election of directors, voting together as a single class.

## Exhibit 10.1

**Exhibit 10.1** 

**EXECUTION VERSION** 

**CREDIT AGREEMENT** 

**DATED AS OF FEBRUARY 26, 2025** 

**AMONG** 

**KAMAN CORPORATION,** 

**QUANTIC ELECTRONICS, LLC,** 

**QUANTIC CORPORATE HOLDINGS, INC.** 

**QNNECT, LLC,** 

**and** 

**SANDERS INDUSTRIES HOLDINGS, INC.,** 

**AS THE BORROWERS,** 

**OVATION PARENT, INC.,** 

**HAWKEYE MIDCO, LLC,** 

**CONNECTOR INTERMEDIATE HOLDCO, LLC,** 

**and** 

**SI INTERMEDIATE HOLDING, INC.,** 

**EACH AS A HOLDING COMPANY,** 

**CITIBANK, N.A.,** 

**AS ADMINISTRATIVE AGENT, COLLATERAL AGENT AND A L/C ISSUER** 

**AND** 

**THE OTHER LENDERS AND L/C ISSUERS PARTY HERETO** 

**\*\*\*\*\*** 

**CITIBANK, N.A.,** 

**BMO CAPITAL MARKETS CORP.,** 

**MORGAN STANLEY SENIOR FUNDING, INC.,** 

**BARCLAYS BANK PLC,** 

**BOFA SECURITIES, INC.,** 

**ROYAL BANK OF CANADA,** 

**JEFFERIES FINANCE LLC,** 

**WELLS FARGO SECURITIES, LLC,** 

**MACQUARIE CAPITAL (USA) INC.,** 

**GOLDMAN SACHS BANK USA,** 

**J.P. MORGAN CHASE BANK, N.A.,** 

**AND** 

**KEYBANC CAPITAL MARKETS INC.,** 

**AS JOINT LEAD ARRANGERS AND JOINT BOOKRUNNERS** 

------

**TABLE OF CONTENTS** 

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| | | |
|:---|:---|:---|
|  |  | **Page** |
|  ARTICLE I DEFINITIONS AND ACCOUNTING TERMS | ARTICLE I DEFINITIONS AND ACCOUNTING TERMS | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.01 | Defined Terms | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.02 | Other Interpretive Provisions | 128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.03 | Accounting Terms | 132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.04 | Rounding | 133 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.05 | References to Agreements and Laws | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.06 | Times of Day | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.07 | Timing of Payment or Performance | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.08 | Currency Equivalents Generally | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.09 | Letter of Credit Amounts | 135 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.10 | Pro Forma Calculations | 136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.11 | Calculation of Baskets | 136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.12 | Additional Alternative Currencies | 137 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.13 | Agreed Security Principles | 138 |
|  ARTICLE II THE COMMITMENTS AND CREDIT EXTENSIONS | ARTICLE II THE COMMITMENTS AND CREDIT EXTENSIONS | 138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.01 | The Loans | 138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.02 | Borrowings, Conversions and Continuations of Loans | 139 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.03 | Letters of Credit | 142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.04 | Swing Line Loans | 148 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.05 | Prepayments | 154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.06 | Termination or Reduction of Commitments | 158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.07 | Repayment of Loans | 167 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.08 | Interest | 169 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.09 | Fees | 170 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.10 | Computation of Interest and Fees | 171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.11 | Evidence of Indebtedness | 172 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.12 | Payments Generally; Administrative Agent's Clawback | 172 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.13 | Sharing of Payments | 173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.14 | Incremental Facilities | 176 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.15 | Incremental Equivalent Debt | 177 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.16 | Cash Collateral | 186 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.17 | Defaulting Lenders | 189 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.18 | Specified Refinancing Debt | 190 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.19 | Extension of Term Loans and Revolving Credit Commitments | 192 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.20 | Permitted Debt Exchanges | 196 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.21 | Alternative Rate of Interest | 200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.22 | Effect of Benchmark Transition Event | 201 |
|  ARTICLE III TAXES, INCREASED COSTS PROTECTION AND ILLEGALITY | ARTICLE III TAXES, INCREASED COSTS PROTECTION AND ILLEGALITY | 202 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.01 | Taxes | 204 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.02 | [Reserved] | 204 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.03 | Illegality | 208 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.04 | [Reserved] | 209 |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.05 | Increased Cost and Reduced Return; Capital Adequacy and Liquidity Requirements | 209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.06 | [Reserved] | 210 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.07 | Matters Applicable to All Requests for Compensation | 210 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.08 | Replacement of Lenders Under Certain Circumstances | 212 |
|  ARTICLE IV CONDITIONS PRECEDENT TO CREDIT EXTENSIONS | ARTICLE IV CONDITIONS PRECEDENT TO CREDIT EXTENSIONS | 214 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.01 | Conditions to the Initial Credit Extension on the Closing Date | 214 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.02 | Conditions to All Credit Extensions | 216 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.03 | Conditions to Borrowings of Delayed Draw Term Loans | 217 |
|  ARTICLE V REPRESENTATIONS AND WARRANTIES | ARTICLE V REPRESENTATIONS AND WARRANTIES | 217 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.01 | Existence, Qualification and Power | 217 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.02 | Authorization; No Contravention | 218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.03 | Governmental Authorization | 218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.04 | Binding Effect | 218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.05 | Financial Statements; No Material Adverse Effect | 218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.06 | Litigation | 220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.07 | Use of Proceeds | 220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.08 | Ownership of Property; Liens | 220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.09 | Environmental Compliance | 220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.10 | Taxes | 221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.11 | Employee Benefit Plans | 222 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.12 | Subsidiaries; Capital Stock | 223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.13 | Margin Regulations; Investment Company Act | 223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.14 | Disclosure | 223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.15 | Compliance with Laws | 224 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.16 | Intellectual Property; Licenses, Etc. | 224 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.17 | Solvency | 224 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.18 | Perfection, Etc. | 225 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.19 | Sanctions; OFAC | 225 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.20 | Anti-Corruption Laws; PATRIOT Act | 226 |
|  ARTICLE VI AFFIRMATIVE COVENANTS | ARTICLE VI AFFIRMATIVE COVENANTS | 226 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.01 | Financial Statements | 226 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.02 | Certificates; Other Information | 229 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.03 | Notices | 231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.04 | Payment of Taxes | 231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.05 | Preservation of Existence, Etc. | 231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.06 | Maintenance of Properties | 231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.07 | Maintenance of Insurance | 232 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.08 | Compliance with Laws | 232 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.09 | Books and Records | 232 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.10 | Inspection Rights | 233 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.11 | Use of Proceeds | 233 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.12 | Covenant to Guarantee Obligations and Give Security | 233 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.13 | Reserved | 235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.14 | Further Assurances | 235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.15 | Maintenance of Ratings | 236 |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.16 | Post-Closing Undertakings | 236.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.17 | Line of Business | 236.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.18 | Transactions with Affiliates | 236.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.19 | Quarterly Lender Calls | 240.0 |
|  ARTICLE VII NEGATIVE COVENANTS | ARTICLE VII NEGATIVE COVENANTS | 241.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.01 | Indebtedness | 241.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.02 | Limitations on Liens | 250.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.03 | Fundamental Changes | 251.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.04 | Asset Sales | 253.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.05 | Restricted Payments | 255.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.06 | Burdensome Agreements | 265.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.07 | [Reserved] | 267.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.08 | Financial Covenant | 268.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.09 | Holding Companies | 269.0 |
|  ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES | ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES | 269.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.01 | Events of Default | 273.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.02 | Remedies Upon Event of Default | 274.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.03 | Right to Cure | 276.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.04 | Application of Funds | 278.0 |
|  ARTICLE IX ADMINISTRATIVE AGENT AND OTHER AGENTS | ARTICLE IX ADMINISTRATIVE AGENT AND OTHER AGENTS | 278.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.01 | Appointment and Authorization of Agents | 280.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.02 | Delegation of Duties | 280.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.03 | Liability of Agents | 282.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.04 | Reliance by Agents | 283.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.05 | Notice of Default | 283.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.06 | Credit Decision; Disclosure of Information by Agents | 284.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.07 | Indemnification of Agents | 285.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.08 | Agents in Their Individual Capacities | 285.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.09 | Successor Agents | 287.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.10 | Administrative Agent May File Proofs of Claim | 287.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.11 | Collateral and Guaranty Matters | 290.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.12 | Other Agents; Arranger and Managers | 290.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.13 | Secured Cash Management Agreements, Secured Hedge Agreements | 290.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.14 | Appointment of Supplemental Agents, Incremental Arrangers, Incremental Equivalent Debt Arrangers and Specified Refinancing Agents | 291.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.15 | Intercreditor Agreement | 292.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.16 | Erroneous Payment | 293.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.17 | Credit Bidding | 295.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.18 | Certain ERISA Matters | 297.0 |
|  ARTICLE X MISCELLANEOUS | ARTICLE X MISCELLANEOUS | 298.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.01 | Amendments, Etc. | 298.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.02 | Notices; Electronic Communications | 303.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.03 | No Waiver; Cumulative Remedies; Enforcement | 306.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.04 | Expenses | 307.0 |

---

iii

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---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.05 | Indemnification by the Borrower | 308.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.06 | Payments Set Aside | 310.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.07 | Successors and Assigns | 311.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.08 | Confidentiality | 321.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.09 | Setoff | 323.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.10 | Interest Rate Limitation | 323.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.11 | Counterparts | 324.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.12 | Integration; Effectiveness | 324.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.13 | Survival of Representations and Warranties | 324.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.14 | Severability | 325.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.15 | Governing Law; Jurisdiction; Etc | 325.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.16 | Service of Process | 326.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.17 | Waiver of Right to Trial by Jury | 326.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.18 | Binding Effect | 326.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.19 | No Advisory or Fiduciary Responsibility | 327.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.20 | Affiliate Activities | 327.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.21 | Electronic Execution of Assignments and Certain Other Documents | 328.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.22 | USA PATRIOT Act | 328.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.23 | Judgment Currency | 328.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.24 | Acknowledgement and Consent to Bail-In of Affected Financial Institutions | 329.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.25 | Acknowledgement Regarding Any Supported QFCs | 329.0 |
|  ARTICLE XI CO-BORROWER ARRANGEMENTS; LIMITATIONS | ARTICLE XI CO-BORROWER ARRANGEMENTS; LIMITATIONS | 331.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.01 | Addition of Co-Borrowers | 331.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.02 | Status of Co-Borrowers | 332.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.03 | Resignation of Co-Borrowers | 332.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.04 | Authorization of Borrower Representative by Borrowers | 333.0 |

---

iv

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<u>SCHEDULES</u> 

---

| | |
|:---|:---|
| 1 | Guarantors |
| 1.01(b) | Specified Real Property |
| 1.01(c) | Existing Letters of Credit |
| 1.01(f) | Closing Date L/C Issuers and Letter of Credit Sublimit |
| 2.01 | Commitments and Pro Rata Shares |
| 5.12 | Subsidiaries and Other Equity Investments |
| 5.16 | Intellectual Property Matters |
| 6.16 | Post-Closing Undertakings |
| 7.01 | Closing Date Indebtedness |
| 7.02 | Closing Date Liens |
| 7.05(a) | Closing Date Investments |
| 10.02 | Administrative Agent's Office, Certain Addresses for Notices |

---

<u>EXHIBITS</u> 

Form of

---

| | |
|:---|:---|
| A-1 | Committed Loan Notice |
| A-2 | Request for L/C Credit Extension |
| A-3 | Swing Line Loan Request |
| B-1 | Term Note |
| B-2 | Revolving Credit Note |
| B-3 | Swing Line Note |
| B-4 | Delayed Draw Term Note |
| C | Compliance Certificate |
| D-1 | Assignment and Assumption |
| D-2 | Affiliate Lender Assignment and Assumption |
| D-3 | Administrative Questionnaire |
| E-1 | Holdings Guaranty |
| E-2 | Subsidiary Guaranty |
| F | Security Agreement |
| G-1 | First Lien/Second Lien Intercreditor Agreement |
| G-2 | First Lien Pari Passu Intercreditor Agreement |
| H | Intercompany Subordination Agreement |
| I-1 | U.S. Tax Compliance Certificate |
| I-2 | U.S. Tax Compliance Certificate |
| I-3 | U.S. Tax Compliance Certificate |
| I-4 | U.S. Tax Compliance Certificate |
| J | Optional Prepayment of Loans |
| K | Form of Co-Borrowers Joinder Agreement |
| L | Solvency Certificate |
| M | Secured Party Joinder Notice |

---

------

This **CREDIT AGREEMENT** is entered into as of February 26, 2025, among Kaman Corporation, a Connecticut corporation ("**Kaman**"), Quantic Electronics, LLC, a Delaware limited liability company ("**Quantic**"), Quantic Corporate Holdings, Inc., a Delaware corporation ("**Quantic Corporate**"), Qnnect, LLC, a Delaware limited liability company ("**Qnnect**"), and Sanders Industries Holdings, Inc., a Delaware corporation ("**Sanders**"; collectively with Kaman, Quantic, Quantic Corporate and Qnnect, the "**Initial Borrowers**" and each, an "**Initial Borrower**"), Ovation Parent, Inc., a Delaware corporation ("**Kaman Holdings**"), Hawkeye MidCo, LLC, a Delaware limited liability company ("**Quantic Holdings**"), Connector Intermediate HoldCo, LLC, a Delaware limited liability company ("**Qnnect Holdings**"), and SI Intermediate Holding, Inc., a Delaware corporation ("**Sanders Holdings**"; collectively with Kaman Holdings, Quantic Holdings and Qnnect Holdings, the "**Initial Holding Companies**" and each, an "**Initial Holding Company**") and each lender from time to time party hereto (collectively, the "**Lenders**" and individually, a "**Lender**"), each L/C Issuer party hereto and Citibank, N.A. ("**Citibank**"), as Administrative Agent, Collateral Agent and an L/C Issuer.

**PRELIMINARY STATEMENTS** 

**WHEREAS**, the Borrowers have requested that, upon the satisfaction or waiver of the conditions precedent set forth in the applicable provisions of <u>Article IV</u> below, the applicable Lenders (i) make term loans to the Borrowers in an aggregate principal amount of $2,650,000,000 under the Initial Term Commitment, (ii) make available to the Borrowers Delayed Draw Commitments in an amount of $250,000,000, and (iii) make available to the Borrowers a $400,000,000 multicurrency revolving credit facility for the making, from time to time, of revolving loans (including swing line loans) and the issuance, from time to time, of letters of credit, in each case on the terms and subject to the conditions set forth in this Agreement.

**WHEREAS**, the Borrowers intend to use a portion of the proceeds of the initial borrowing under the Facilities to finance (i) the repayment in full of outstanding loans under that certain (A) Credit Agreement, dated as of April 19, 2024, by and among Kaman Holdings, as borrower, Ovation Parent Holdings, Inc., a Delaware corporation, as holdings, the other loan parties party thereto from time to time, the lenders party thereto from time to time and Morgan Stanley Senior Funding, Inc., in its capacity as administrative agent (as such may have been amended, restated, amended and restated, modified or supplemented prior to the Closing Date, the "**Existing Kaman Credit Agreement**"), (B) Credit Agreement, dated as of November 19, 2020, by and among Quantic, as borrower, Quantic Holdings, as holdings, the other loan parties party thereto from time to time, the lenders party thereto from time to time and Adams Street Credit Advisors LP, as administrative agent (as such may have been amended, restated, amended and restated, modified or supplemented prior to the Closing Date, the "**Existing Quantic Credit Agreement**"), (C) Credit Agreement, dated as of November 2, 2022, by and among Qnnect, as borrower, Qnnect Holdings, as holdings, the other loan parties party thereto from time to time, the lenders party thereto from time to time and Ares Capital Corporation, as administrative agent (as such may have been amended, restated, amended and restated, modified or supplemented prior to the Closing Date, the "**Existing Qnnect Credit Agreement**"), and (D) Credit Agreement, dated as of July 25, 2019, by and among SI

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Holdings, Inc., a Delaware corporation, as borrower, Arcline Engineered Polymer Holdco LLC, as holdings, the other loan parties party thereto from time to time, the lenders party thereto from time to time and MidCap Financial Trust, as administrative agent (as such may have been amended, restated, amended and restated, modified or supplemented prior to the Closing Date, the "**Existing Sanders Credit Agreement**", together with the Existing Kaman Credit Agreement, the Existing Quantic Credit Agreement and the Existing Qnnect Credit Agreement, the "**Existing Credit Agreements**") (collectively, the "**Closing Date Refinancing**"), (ii) working capital purposes and general corporate purposes, and (iii) Transaction Costs (as defined below).

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

**ARTICLE I** 

**DEFINITIONS AND ACCOUNTING TERMS** 

Section 1.01 <u>Defined Terms</u>. As used in this Agreement, the following terms shall have the meanings set forth below:

"**Acceleration**" has the meaning specified in <u>Section</u> <u>8.01(e)</u>.

"**Acquired Indebtedness**" means, with respect to any specified Person, (a) Indebtedness of any other Person existing at the time such other Person is merged, amalgamated or consolidated with or into or becomes a Restricted Subsidiary of such specified Person, whether or not such Indebtedness is Incurred in connection with, or in contemplation of, such other Person merging, amalgamating or consolidating with or into, or becoming a Restricted Subsidiary of, such specified Person, and (b) Indebtedness secured by a Lien encumbering any asset acquired by such specified Person.

"**Adjusted Cash**" means the amount of unrestricted cash after giving effect to unrealized gains and losses under (and as determined by) any currency Swap Contracts in place at the time of determination (but only with respect to the then-elapsed portion of the current monthly or quarterly (as applicable under the relevant currency Swap Contract) calculation period thereunder).

"**Administrative Agent**" means Citibank acting through such of its Affiliates or branches as it may designate, in its capacity as administrative agent under any of the Loan Documents, or any successor administrative agent permitted by the terms hereof.

"**Administrative Agent's Office**" means the Administrative Agent's address and, as appropriate, account as set forth on <u>Schedule 10.02</u> or such other address or account as the Administrative Agent may from time to time notify the Borrower Representative and the Lenders.

"**Administrative Questionnaire**" means an Administrative Questionnaire in substantially the form of <u>Exhibit D-3</u> or any other form approved by the Administrative Agent.

------

"**Affected Financial Institution**" means (a) any EEA Financial Institution or (b) any UK Financial Institution.

"**Affiliate**" of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For purposes of this definition, "control" (including, with correlative meanings, the terms "controlling," "controlled by" and "under common control with"), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise. For greater certainty, any reference to an Affiliate of the Administrative Agent, a Lender or any other Secured Party shall include a domestic or foreign branch of such Person. For purposes of this Agreement and the other Loan Documents, Jefferies LLC and its Affiliates shall be deemed to be Affiliates of Jefferies Finance LLC and its Affiliates.

"**Affiliate Lenders**" means at any time, Lenders that are either the Sponsor and an Affiliate of the Sponsor (other than any Natural Person, the Holding Companies, the Borrowers and any of the Holding Companies' or the Borrowers' respective Subsidiaries).

"**Affiliate Transaction**" has the meaning specified in <u>Section</u> <u>6.18(a)</u>.

"**Affiliated Law Firm**" means the Law Office of Robert C. Nelson, P.C.

"**Agent-Related Distress Event**" means, with respect to the Administrative Agent, the Collateral Agent or any Person that directly or indirectly controls the Administrative Agent or the Collateral Agent (each, a "**Distressed Agent-Related Person**"), a voluntary or involuntary case with respect to such Distressed Agent-Related Person under any Debtor Relief Law is commenced, or a custodian, conservator, receiver, interim receiver, monitor or similar official is appointed for such Distressed Agent-Related Person or any substantial part of such Distressed Agent-Related Person's assets, or such Distressed Agent-Related Person makes a general assignment for the benefit of creditors or is otherwise adjudicated as, or determined by any Governmental Authority having regulatory authority over such Distressed Agent-Related Person to be, insolvent or bankrupt; *provided* that an Agent-Related Distress Event shall not be deemed to have occurred solely by virtue of the ownership or acquisition of any Equity Interests in the Administrative Agent, the Collateral Agent or any Person that directly or indirectly controls the Administrative Agent by a Governmental Authority or an instrumentality thereof, so long as such ownership interest does not result in or provide the Administrative Agent or the Collateral Agent with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit the Administrative Agent or the Collateral Agent (or such Governmental Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made with the Administrative Agent or the Collateral Agent.

"**Agent-Related Persons**" means each Agent, together with its respective Related Parties.

------

"**Agent's Spot Rate of Exchange**" has the meaning specified in <u>Section</u> <u>1.08(a)</u>.

"**Agents**" means, collectively, the Administrative Agent, the Collateral Agent, the Arrangers, the Incremental Arrangers (if any) and the Supplemental Agents (if any).

"**Aggregate Commitments**" means the Commitments of all the Lenders.

"**Agreed Security Principles**" means security principles for each applicable jurisdiction consistent with the scope of security granted by the Loan Parties formed or incorporated in the United States (as the grant or requirement to perfect is limited by this Agreement or any other Loan Document, including as set forth in the definitions of "Excluded Property" and "Perfection Exceptions") to the extent that the provision of such security is customary in such jurisdictions as reasonably determined by the Borrower Representative and the Collateral Agent from time to time (it being understood and agreed that the scope of security with respect to any applicable jurisdiction may be broader than the scope of security granted by the Loan Parties formed or incorporated in the United States to the extent customary for similarly sized credit facilities for sponsor-backed borrowers in such jurisdiction, as reasonably determined by the Borrower Representative and the Collateral Agent).

"**Agreement**" means this credit agreement, as amended, restated, amended and restated, supplemented or otherwise modified from time to time.

"**Agreement Currency**" has the meaning specified in <u>Section</u> <u>10.23</u>.

"**AHYDO Catch-up Payment**" means any payment required to be made under the terms of Indebtedness in order to avoid the application of Section 163(e)(5) of the Code to such Indebtedness (as determined by the applicable Holding Company or Borrower Party).

"**Alternative Currencies**" means (i) Euros, (ii) Pounds Sterling, (iii) Canadian Dollars, and (iv) any other currency (x) that is a lawful currency (other than Dollars) that is readily available and freely transferable and convertible into Dollars on the international interbank market available to the Lenders or the L/C Issuers, as applicable, in such market and as to which a Dollar Amount may be readily calculated, (y) so long as a quoted rate is available for such currency in the Administrative Agent's reasonable discretion and (z) that is agreed to by the Administrative Agent, each of the Revolving Credit Lenders, the L/C Issuers (in the case of any such request with respect to the issuance of Letters of Credit) and the Swing Line Lenders (in the case of any such request with respect to the issuance of Swing Line Loans), in each case in accordance with <u>Section</u> <u>1.12</u>.

"**Alternative Currency Daily Rate**" means, for any day, with respect to any credit extension: (i) denominated in Sterling, the rate per annum equal to SONIA determined pursuant to the definition thereof; (ii) denominated in Canadian Dollars, the rate per annum equal to the Canadian Prime Rate and (iii) denominated in any other Alternative Currency (to the extent such Loans denominated in such currency will bear interest at a daily rate), the daily rate per annum as designated with respect to such Alternative Currency at the time such Alternative Currency is approved by the Administrative Agent and the relevant Revolving Credit Lenders; *provided*, that, if any Alternative Currency Daily Rate shall be less than the Floor, such rate shall be deemed the Floor for purposes of this Agreement. Any change in an Alternative Currency Daily Rate shall be effective from and including the date of such change without further notice.

------

"**Alternative Currency Daily Rate Loan**" means a Loan that bears interest at a rate based on the definition of "Alternative Currency Daily Rate." All Alternative Currency Daily Rate Loans must be denominated in an Alternative Currency.

"**Alternative Currency Loan**" means a Loan denominated in an Alternative Currency, which can be in the form of an Alternative Currency Daily Rate Loan or an Alternative Currency Term Rate Loan, as applicable.

"**Alternative Currency Term Rate**" means, for any Interest Period, with respect to any credit extension: (i) denominated in Euros, the rate per annum equal to the Euro Interbank Offered Rate ("**EURIBOR**"), as published on the applicable Reuters screen page (or such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time) on the day that is two TARGET Days preceding the first day of such Interest Period with a term equivalent to such Interest Period; (ii) denominated in Canadian Dollars, Term CORRA for such Interest Period; and (iii) denominated in any other Alternative Currency (to the extent such Loans denominated in such currency will bear interest at a term rate), the term rate per annum as designated with respect to such Alternative Currency at the time such Alternative Currency is approved by the Administrative Agent and the relevant Revolving Credit Lenders; <u>provided</u>, <u>that</u>, if any Alternative Currency Term Rate shall be less than the Floor, such rate shall be deemed the Floor for purposes of this Agreement.

"**Alternative Currency Term Rate Loan**" means a Loan that bears interest at a rate based on the definition of "Alternative Currency Term Rate." All Alternative Currency Term Rate Loans must be denominated in an Alternative Currency.

"**Anticipated Cure Deadline**" has the meaning specified in <u>Section</u> <u>8.03(a)</u>.

"**Anti-Corruption Laws**" has the meaning specified in <u>Section</u> <u>5.20</u>.

"**Anti-Money Laundering Laws**" has the meaning specified in <u>Section</u> <u>5.19(a)</u>.

"**Applicable Commitment Fee**" means a percentage *per annum* that shall be equal to,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) from the Closing Date until the date on which the Administrative Agent shall have received the applicable financial statements and a Compliance Certificate pursuant to <u>Section</u> <u>6.02(a)</u> calculating the Consolidated First Lien Net Leverage Ratio in respect of the first full fiscal quarter ending after the Closing Date, 0.50% per annum, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) thereafter, the applicable rate per annum set forth below under the caption "Applicable Commitment Fee" based upon the Consolidated First Lien Net Leverage Ratio as of the last day of the most recent Test Period as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to <u>Section</u> <u>6.02(a)</u>:

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| | | |
|:---|:---|:---|
| **Pricing<br>Level** | **Consolidated First Lien Net Leverage Ratio** | **Applicable<br>Commitment<br>Fee** |
| 1 | Above 5.25 to 1.00 | 0.500% |
| 2 | Equal to or below 5.25 to 1.00 but greater than 4.75 to 1.00 | 0.375% |
| 3 | Equal to or below 4.75 to 1.00 | 0.250% |

---

Any increase or decrease in the Applicable Commitment Fee resulting from a change in the Consolidated First Lien Net Leverage Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to <u>Section</u> <u>6.02(a)</u>; *provided*, *however*, that "Pricing Level 1" shall apply without regard to the Consolidated First Lien Net Leverage Ratio at any time after the date on which any annual or quarterly financial statement was required to have been delivered pursuant to <u>Section</u> <u>6.01(a)</u> or <u>Section</u> <u>6.01(b)</u> but was not delivered (or the Compliance Certificate related to such financial statements was required to have been delivered pursuant to <u>Section</u> <u>6.02(a)</u> but was not delivered), commencing with the third Business Day immediately following such date and continuing until the first Business Day immediately following the date on which such financial statements (or, if later, the Compliance Certificate related to such financial statements) are delivered.

"**Applicable Discount**" has the meaning specified in the definition of "Dutch Auction".

"**Applicable Intercreditor Arrangements**" means

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to any Indebtedness that is secured on a *pari passu* basis with the Initial Term Loans and/or the Initial Revolving Tranche, a Pari Passu Intercreditor Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to any Indebtedness that is junior to the Initial Term Loans and/or the Initial Revolving Credit Loans in right of security, an intercreditor agreement substantially in the form of the first lien/second lien intercreditor agreement attached as <u>Exhibit G-1</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to any other Indebtedness, any other intercreditor or subordination agreement or arrangement (which may take the form of a "waterfall" or similar provision), as applicable, the terms of which are reasonably acceptable to the Borrower Representative and the Administrative Agent so long as the Administrative Agent has not received written notice of objection to such amendment from Lenders comprising Required Lenders by the fifth (5th) Business Day after any such proposed intercreditor or subordination agreement or arrangement has been posted to all Lenders*.*

"**Applicable Jurisdiction**" means the United States and any other jurisdiction approved by the Revolving Credit Lenders or the Term Lenders of the applicable Tranche, as applicable, and the Administrative Agent, in each case, acting reasonably and in good faith.

------

"**Applicable Rate**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to the Initial Term Loans and any Delayed Draw Term Loans, (i) from the Closing Date until the first Business Day that immediately follows the date on which a Compliance Certificate is delivered pursuant to Section 6.02(a) in respect of the first full fiscal quarter ending after the Closing Date, a percentage per annum equal to, 2.75% per annum for SOFR Loans and 1.75% per annum for Base Rate Loans; and (ii) thereafter, the applicable percentage per annum set forth below, as determined by reference to the Consolidated First Lien Net Leverage Ratio, as set forth in the then most recent Compliance Certificate received by the Administrative Agent pursuant to Section 6.02(a):

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| | | | |
|:---|:---|:---|:---|
| **Pricing<br>Level** | **Consolidated First Lien Net Leverage Ratio** | **SOFR<br>Loans** | **Base<br>Rate<br>Loans** |
| 1 | Above 4.75 to 1.00 | 2.75% | 1.75% |
| 2 | Equal to or below 4.75 to 1.00 | 2.50% | 1.50% |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to Revolving Credit Loans, (i) from the Closing Date until the first Business Day that immediately follows the date on which a Compliance Certificate is delivered pursuant to <u>Section</u> <u>6.02(a)</u> in respect of the first full fiscal quarter ending after the Closing Date, a percentage per annum equal to for SOFR Loans and Alternative Currency Term Rate Loans, 2.00% and for Base Rate Loans and Alternative Currency Daily Rate Loans, 1.00% and (ii) thereafter, the applicable percentage per annum set forth below, as determined by reference to the Consolidated First Lien Net Leverage Ratio, as set forth in the then most recent Compliance Certificate received by the Administrative Agent pursuant to <u>Section</u> <u>6.02(a)</u>:

---

| | | | |
|:---|:---|:---|:---|
| **Pricing<br>Level** | **Consolidated First Lien Net Leverage Ratio** | **Revolving<br>Credit<br>Loans**<br>**SOFR<br>Loans and<br>Alternative<br>Currency<br>Term Rate<br>Loans** | **Revolving<br>Credit<br>Loans**<br>**Base Rate<br>Loans and<br>Alternative<br>Currency<br>Daily Rate<br>Loans** |
| 1 | Above 5.25 to 1.00 | 2.00% | 1.00% |
| 2 | Equal to or below 5.25 to 1.00 but greater than 4.75 to 1.00 | 1.75% | 0.75% |
| 3 | Equal to or below 4.75 to 1.00 | 1.50% | 0.50% |

---

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Following the occurrence of a Qualified IPO, each pricing level in <u>clause (a)</u> and <u>(b)</u> above shall be automatically decreased by 0.25%. Any increase or decrease in the Applicable Rate resulting from a change in the Consolidated First Lien Net Leverage Ratio shall become effective as of the third Business Day immediately following the date a Compliance Certificate is delivered pursuant to <u>Section</u> <u>6.02(a)</u>; *provided*, *however*, that "Pricing Level 1" for the table set forth in <u>clause (b)</u> above shall apply without regard to the Consolidated First Lien Net Leverage Ratio at any time after the date on which any annual or quarterly financial statement was required to have been delivered pursuant to <u>Section</u> <u>6.01(a)</u> or <u>Section</u> <u>6.01(b)</u> but was not delivered (or the Compliance Certificate related to such financial statements was required to have been delivered pursuant to <u>Section</u> <u>6.02(a)</u> but was not delivered), commencing with the third Business Day immediately following such date and continuing until the first Business Day immediately following the date on which such financial statements (or, if later, the Compliance Certificate related to such financial statements) are delivered.

"**Appropriate Lender**" means, at any time, (a) with respect to any Facility, a Lender that has a Commitment with respect to such Facility or holds Loans made under such Facility at such time, and (b) solely with respect to the determination of the Letter of Credit Sublimit, (i) each L/C Issuer and (ii) if any Letters of Credit have been issued pursuant to <u>Section</u> <u>2.03(a)</u>, the Revolving Credit Lenders.

"**Approved Borrower Portal**" has the meaning assigned to it in <u>Section</u> <u>10.02(b)(ii)</u>.

"**Approved Commercial Bank**" means a commercial bank with a consolidated combined capital and surplus of at least $5,000,000,000.

"**Approved Fund**" means any Fund that is administered, advised or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers, advises or manages a Lender and controls such Lender.

"**Arrangers**" means each of Citibank, N.A., BMO Capital Markets Corp., Morgan Stanley Senior Funding, Inc., Barclays Bank PLC, BofA Securities, Inc., Royal Bank of Canada, Jefferies Finance LLC, Wells Fargo Securities, LLC, Macquarie Capital (USA) Inc., Goldman Sachs Bank USA, J.P. Morgan Chase Bank, N.A., and Keybanc Capital Markets Inc., in their respective capacities as exclusive joint lead arrangers and bookrunners.

"**Asset Sale**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the sale, conveyance, transfer or other disposition (whether in a single transaction or a series of related transactions) of property or assets of any Borrower Party (including any disposition of property to a Divided LLC or Divided LP pursuant to an LLC Division or LP Division, respectively, or any allocation of assets to any Series LLC or Series LP), or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the issuance or sale of Equity Interests (other than Preferred Stock and Disqualified Stock of Restricted Subsidiaries issued in compliance with <u>Section</u> <u>7.01</u> and directors' qualifying shares or shares or interests required to be held by foreign nationals or other third parties to the extent required by applicable law) of any Restricted Subsidiary of a Borrower (other than to the Borrowers or another Restricted Subsidiary) (whether in a single transaction or a series of related transactions) (each of the foregoing referred to in this definition as a "**Disposition**"; the term **"Dispose**" as a verb has a corresponding meaning).

Notwithstanding the preceding, the following items will be deemed not to be an Asset Sale:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a sale, exchange or other disposition of cash, Cash Equivalents or Investment Grade Securities, or of obsolete, damaged, unnecessary, surplus, immaterial, unsuitable or worn out equipment or other assets in the ordinary course of business, or dispositions of property no longer used, useful or economically practicable to maintain in the conduct of the business of the Borrower Parties (including allowing any registrations or any applications for registration of any intellectual property or other intellectual property rights, to lapse or become abandoned, or otherwise selling, licensing, transferring, or disposing of any such intellectual property rights);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Disposition in compliance with <u>Section</u> <u>7.03</u> other than any provision of <u>Section</u> <u>7.03</u> that permits dispositions permitted under this Agreement (including under <u>Section</u> <u>7.04</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Restricted Payment that is permitted to be made, and is made, pursuant to <u>Section</u> <u>7.05</u> (including pursuant to any exceptions provided for in the definition of "Restricted Payment") or any Permitted Investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) other than in connection with the determination of Leverage Excess Proceeds, any Disposition of assets or issuance or sale of Equity Interests of any Restricted Subsidiary, in a single transaction or series of related transactions, with an aggregate Fair Market Value of less than or equal to the greater of (x) $115,000,000 and (y) 25.0% of Four Quarter Consolidated EBITDA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any transfer or Disposition of property or assets or issuance or sale of Equity Interests by a Restricted Subsidiary to a Borrower or by any Borrower Party to another Restricted Subsidiary (including conversions of intercompany Indebtedness held by the Borrowers or any Subsidiary into Capital Stock in any Subsidiary permitted under <u>Section</u> <u>7.05</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the creation of any Lien permitted under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any issuance, sale, pledge or other disposition of the Equity Interests in, or Indebtedness or other securities of, an Unrestricted Subsidiary;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the sale, lease, assignment, license or sublease of inventory, equipment, accounts receivable, notes receivable or other current assets held for sale in the ordinary course of business or the conversion of accounts receivable and related assets to notes receivable or dispositions of accounts receivable and related assets in connection with the collection or compromise thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the lease, assignment, license, sublicense or sublease of any real or personal property in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) a sale, assignment or other transfer of Receivables Assets, or participations therein, and related assets (i) to a Receivables Subsidiary in a Qualified Receivables Financing or (ii) to any other Person in a Qualified Receivables Factoring;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) a sale, assignment or other transfer of Receivables Assets, or participations therein, and related assets by a Receivables Subsidiary in a Qualified Receivables Financing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) any exchange of assets for Related Business Assets (including a combination of Related Business Assets and a de minimis amount of cash or Cash Equivalents) of comparable or greater market value than the assets exchanged, as determined in good faith by the Borrower Representative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) (i) non-exclusive licenses, sublicenses or cross-licenses of intellectual property, other intellectual property rights or other general intangibles and (ii) exclusive (with respect to field or territory) licenses, sublicenses or cross-licenses of intellectual property, other intellectual property rights or other general intangibles in the ordinary course of business of the Borrower Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) any transfer in a Sale/Leaseback Transaction of any Specified Real Property or any property acquired or built after the Closing Date; *provided* that such sale is for at least Fair Market Value (as determined in good faith by the Borrower Representative on the date on which a definitive agreement for such Sale/Leaseback Transaction was entered into);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) the surrender or waiver of obligations of trade creditors or customers or other contract rights that were incurred in the ordinary course of business of any Borrower Party, including pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of any trade creditor or customer or compromise, settlement, release or surrender of a contract, tort or other litigation claim, arbitration or other disputes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Dispositions arising from foreclosures, condemnations, eminent domain, seizure, nationalization or any similar action with respect to assets and dispositions of property subject to casualty events;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) (i) the issuance or sale of Equity Interests of a Joint Venture Subsidiary by such Joint Venture Subsidiary, provided that after giving effect to any such issuance or sale, such Joint Venture Subsidiary continues to be a Joint Venture Subsidiary, or (ii) Dispositions of Investments (including Equity Interests) in joint ventures to the extent required by, or made pursuant to customary buy/sell arrangements or rights of first refusal between, the joint venture parties set forth in joint venture arrangements and similar binding arrangements;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) to the extent allowable under Section 1031 of the Code, any exchange of like property (excluding any boot thereon) for use in a Similar Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) the issuance of directors' qualifying shares and shares issued to foreign nationals to the extent required by applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) Dispositions of property to the extent that (i) such property is exchanged for credit against the purchase price of similar replacement property that is purchased within 365 days of such disposition or (ii) the proceeds of such Asset Sale are applied within 365 days of such disposition to the purchase price of such replacement property (which replacement property is purchased within 365 days of such disposition);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) a sale or transfer of equipment receivables, or participations therein, and related assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any Dispositions in connection with the Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) (i) the Disposition of assets acquired pursuant to any Permitted Investment or other Investment permitted under <u>Section</u> <u>7.05</u>, which assets are not used or useful to the core or principal business of the Borrower Parties or which Disposition is required by regulatory (including antitrust) authorities; and (ii) the Disposition of assets that are necessary or advisable, in the good faith judgment of the Borrower Representative, in order to obtain the approval of any Governmental Authority to consummate or avoid the prohibition or other restrictions on the consummation of any Permitted Investment, any other Investment permitted under <u>Section</u> <u>7.05</u> or acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) any Disposition to effect the formation of any Restricted Subsidiary that is a Divided LLC or a Divided LP and would otherwise not be prohibited hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) other sales or Dispositions in an amount not to exceed the greater of $230,000,000 and 50.0% of Four Quarter Consolidated EBITDA in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) Dispositions of assets that are made subject to a Capitalized Lease Obligation within 365 days after the acquisition, construction, lease or improvement of the asset financed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) the forgiveness of obligations made in reliance of <u>clause (30)</u> of the definition of "Permitted Investments".

For the avoidance of doubt, the unwinding of Swap Contracts shall be deemed not to constitute an Asset Sale.

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"**Assignee Group**" means two or more Eligible Assignees that are Affiliates of one another or two or more Approved Funds managed by the same investment advisor.

"**Assignment and Assumption**" means an Assignment and Assumption substantially in the form of <u>Exhibit D-1</u>, or otherwise in form and substance reasonably acceptable to the Administrative Agent.

"**ASU**" has the meaning specified in <u>Section</u> <u>1.03(a)</u>.

"**Attributable Debt**" means, in respect of a Sale/Leaseback Transaction, at the time of determination, the present value of the obligation of the Loan Party that acquires, leases or licenses back the right to use all or a material portion of the subject property for net rental, license or other payments during the remaining term of the lease, license or other arrangement included in such Sale/Leaseback Transaction including any period for which such lease, license or other arrangement has been extended or may, at the sole option of the other party (or parties) thereto, be extended. Such present value shall be calculated using a discount rate equal to the rate of interest implicit in such transaction, determined in accordance with GAAP.

"**Auction Amount**" has the meaning specified in the definition of "Dutch Auction".

"**Auction Notice**" has the meaning specified in the definition of "Dutch Auction".

"**Auto-Extension Letter of Credit**" has the meaning specified in <u>Section</u> <u>2.03(c)(iii)</u>.

"**Available Tenor**" means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (x) if such Benchmark (or component thereof) is a term rate, any tenor for such Benchmark (or component thereof) that is or may be used for determining the length of an interest period pursuant to this Agreement or (y) otherwise, any payment period for interest calculated with reference to such Benchmark (or component thereof) that is or may be used for determining any frequency of making payments of interest calculated with reference to such Benchmark pursuant to this Agreement, in each case, as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then- removed from the definition of "Interest Period" pursuant to <u>Section</u> <u>2.22(d)</u> (but including any tenor for such Benchmark that is added to the definition of "Interest Period" pursuant to <u>Section</u> <u>2.22(d))</u>.

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

"**Bail-In Legislation**" means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

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"**Base Rate**" means, for any day, a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate on such day *plus* 1/2 of 1.00%, (b) the Prime Lending Rate on such day and (c) Term SOFR (after giving effect to any "floor" applicable thereto) published on such day (or if such day is not a Business Day the next previous Business Day) for an Interest Period of one month *plus* 1.00%. If the Administrative Agent shall have determined (which determination shall be conclusive absent manifest error) that it is unable to ascertain the Federal Funds Rate for any reason, including the inability or failure of the Administrative Agent to obtain sufficient quotations in accordance with the terms of the definition thereof, the Base Rate shall be determined without regard to <u>clause (a)</u> above until the circumstances giving rise to such inability no longer exist. If the Base Rate is being used as an alternate rate pursuant to <u>Section</u> <u>2.22</u> (for the avoidance of doubt, only until the Benchmark Replacement has been determined pursuant to <u>Section</u> <u>2.22</u>), then the Base Rate shall be the greater of <u>clauses (a)</u> and <u>(b)</u> above and shall be determined without reference to <u>clause (c)</u> above; *provided* that, if Base Rate as so determined would be less than 1.50%, then Base Rate shall be deemed to be 1.50%.

"**Base Rate Loan**" means a Term Loan that bears interest based on the Base Rate.

"**Base Rate Term SOFR Determination Day**" has the meaning set forth in the definition of "Term SOFR".

"**Benchmark**" means, initially, the Term SOFR Reference Rate (if denominated in Dollars) and the applicable Alternative Currency Term Rate (if denominated in an Alternative Currency); *provided* that if a Benchmark Transition Event or an Early Opt-in Election and the related Benchmark Replacement Date have occurred with respect to the Term SOFR Reference Rate, an Alternative Currency Term Rate or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to <u>clause (a)</u> of <u>Section</u> <u>2.22</u>.

"**Benchmark Replacement**" means with respect to any Benchmark Transition Event, the sum of (i) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower Representative giving due consideration to (1) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (2) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement to the then-current Benchmark for Dollar-denominated syndicated credit facilities at such time and (ii) the related Benchmark Replacement Adjustment; *provided* that if such Benchmark Replacement would be less than the Floor, such Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.

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"**Benchmark Replacement Adjustment**" means, with respect to any replacement of the then- current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower Representative giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar- denominated syndicated credit facilities.

"**Benchmark Replacement Conforming Changes**" means, with respect to the use, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Base Rate," the definition of "Business Day," the definition of "Canadian Prime Rate", the definition of "SOFR", the definition of "Term SOFR", the definition of "U.S. Government Securities Business Day," the definition of "Interest Period" or any similar or analogous definition (or the addition of a concept of "interest period"), the definition of "SONIA", the definition of "CORRA", the definition of "Term CORRA", or any proposed Benchmark Replacement for an Alternative Currency, as applicable, the definition of "Alternative Currency Daily Rate", the definition of "Alternative Currency Term Rate", timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods and other technical, administrative or operational matters) that the Administrative Agent reasonably decides (in consultation with the Borrower Representative) may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines (in consultation with the Borrower Representative) that no market practice for the administration of any such rate exists, in such other manner of administration as the Administrative Agent decides (in consultation with the Borrower Representative) is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).

"**Benchmark Replacement Date**" means the earliest to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the case of <u>clause (1)</u> or <u>(2)</u> of the definition of "Benchmark Transition Event," the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) in the case of <u>clause (3)</u> of the definition of "Benchmark Transition Event", the first date on which such Benchmark (or the published component used in the calculation thereof) has been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be non-representative; *provided* that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such <u>clause (3)</u> and even if any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

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For the avoidance of doubt, the "Benchmark Replacement Date" will be deemed to have occurred in the case of <u>clause (1)</u> or <u>(2)</u> with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

"**Benchmark Transition Event**" means the occurrence of one or more of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely; *provided* that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Federal Reserve Board, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely; *provided* that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are not, or as of a specified future date will not be, representative.

For the avoidance of doubt, a "Benchmark Transition Event" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

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"**Benchmark Transition Start Date**" means, (a) in the case of a Benchmark Transition Event, the earlier of (i) the applicable Benchmark Replacement Date and (ii) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the ninetieth (90th) day (or such other date selected by the Administrative Agent and the Borrower Representative) prior to the expected date of such event as of such public statement or publication of information (as such expected date may be delayed pursuant to any subsequent public statement or event) (or if the expected date of such prospective event is fewer than ninety (90) days (or such other date selected by the Administrative Agent and the Borrower Representative) after such statement or publication, the date of such statement or publication) and (b) in the case of an Early Opt-in Election, the date jointly elected by the Administrative Agent and the Borrower Representative and specified by the Administrative Agent by written notice to the Borrower Representative and the Lenders.

"**Benchmark Unavailability Period**" means the period (if any) (x) beginning at the time that a Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with <u>Section</u> <u>2.22</u> and (y) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with <u>Section</u> <u>2.22</u>.

"**beneficial owner**" has the meaning given to that term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, in each case as in effect on the date hereof, except that in calculating the beneficial ownership of any particular "person" (as that term is used in Section 13(d)(3) of the Exchange Act, as in effect on the date hereof), such "person" will be deemed not to have beneficial ownership of any securities that such "person" has the right to acquire or vote only upon the happening of any future event or contingency (including the passage of time) that has not yet occurred. The terms "beneficial ownership," "beneficially owns" and "beneficially owned" have a corresponding meaning.

"**Beneficial Ownership Certification**" means a certification regarding beneficial ownership required by the Beneficial Ownership Regulation, in form and substance substantially the same as the form of Certification Regarding Beneficial Owners of Legal Entity Customers published jointly, in May 2018, by the Loan Syndications and Trading Association and Securities Industry and Financial Markets Association.

"**Beneficial Ownership Regulation**" means 31 C.F.R. § 1010.230.

"**Benefit Plan**" means any of (a) an "employee benefit plan" (as defined in ERISA) that is subject to Title I of ERISA, (b) a "plan" as defined in and subject to Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such "employee benefit plan" or "plan".

"**BHC ACT Affiliate**" means an "affiliate" (as defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)).

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"**Board of Directors**" means as to any Person, the board of directors, board of managers, sole member or managing member or other governing body of such Person, or if such Person is owned or managed by a single entity or has a general partner, the board of directors, board of managers, sole member or managing member or other governing body of such entity or general partner, or in each case, any duly authorized committee or designee thereof, and the term "directors" means members of the Board of Directors.

"**Borrower**" means, collectively, (i) the Initial Borrowers and (ii) the Co-Borrowers (or, as the context requires, any one of them). In the event a Borrower (a) consummates any merger, amalgamation or consolidation in accordance with <u>Section</u> <u>7.03</u>, the surviving Person in such merger, amalgamation or consolidation shall be deemed to be a "Borrower" for all purposes of this Agreement and the other Loan Documents and (b) is subject to a Permitted Core Business Disposition, such Person shall cease to be a Borrower for all purposes of this Agreement and the other Loan Documents.

"**Borrower Communications**" means, collectively, any Committed Loan Notice, notice of prepayment, notice requesting the issuance, amendment or extension of a Letter of Credit or other notice, demand, communication, information, document or other material provided by or on behalf of any Loan Party pursuant to any Loan Document or the transactions contemplated therein which is distributed by the Borrower Representative to the Administrative Agent through an Approved Borrower Portal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Lenders, each of the L/C Issuers and the Borrowers agrees that the Administrative Agent may, but (except as may be required by applicable law) shall not be obligated to, store the Borrower Communications on the Approved Borrower Portal in accordance with the Administrative Agent's generally applicable document retention procedures and policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Nothing herein shall prejudice the right of the Borrower Representative or any other Borrower to give any notice or other communication pursuant to any Loan Document in any other manner specified in such Loan Document.

"**Borrower Materials**" has the meaning specified in <u>Section</u> <u>6.02</u>.

"**Borrower Parties**" means the collective reference to the Borrowers and their respective Restricted Subsidiaries, and "**Borrower Party**" means any one of them.

"**Borrower Representative**" has the meaning specified in <u>Section</u> <u>11.04</u>.

"**Borrowing**" means a Revolving Credit Borrowing or a Term Borrowing, as the context may require.

"**Business Day**" means (a) for all purposes other than as covered by <u>clause (b)</u> below, any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed and (b) if such day relates to any fundings, disbursements, settlements or payments in connection with a SOFR Loan, any day described in <u>clause (a)</u> that is also a U.S. Government Securities Business Day; *provided* that

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if such day relates to any interest rate settings as to an Alternative Currency Loan denominated in Euros, any fundings, disbursements, settlements and payments in Euros in respect of any such Alternative Currency Loan, or any other dealings in Euro to be carried out pursuant to this Agreement in respect of any such Alternative Currency Loan, means a Business Day that is also a TARGET Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if such day relates to any interest rate settings as to an Alternative Currency Loan denominated in (i) Sterling, means a day other than a day banks are closed for general business in London because such day is a Saturday, Sunday or a legal holiday under the laws of the United Kingdom; and (ii) Canadian Dollars, means a day other than a day banks are closed for general business in Toronto because such day is a Saturday, Sunday or a legal holiday under the laws of Canada;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if such day relates to any interest rate settings as to an Alternative Currency Loan denominated in a currency other than, Euro, Sterling or Canadian Dollars, means any such day on which dealings in deposits in the relevant currency are conducted by and between banks in the applicable offshore interbank market for such currency; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if such day relates to any fundings, disbursements, settlements and payments in a currency other than Euro, Sterling or Canadian Dollars in respect of an Alternative Currency Loan, or any other dealings in any currency other than Euro, Sterling or Canadian Dollars to be carried out pursuant to this Agreement in respect of any such Alternative Currency Loan (other than any interest rate settings), means any such day on which banks are open for foreign exchange business in the principal financial center of the country of such currency.

"**Canadian Dollars**" means the lawful currency of Canada.

"**Canadian Prime Rate**" means, on any day, a rate per annum determined by the Administrative Agent to be the higher of (i) rate equal to the PRIMCAN Index rate that appears on the Bloomberg screen at 10:15 a.m. Toronto, Ontario time on such day (or, in the event that the PRIMCAN Index is not published by Bloomberg, any other information service that publishes such index from time to time, as selected by the Administrative Agent in its reasonable discretion), and (ii) Term CORRA for a one (1) month Interest Period as published two (2) Business Days prior to such day (or, if such day is not a Business day, then on the immediately preceding Business Day) plus 1.0% per annum; *provided* that if any of the above rates shall be less than the Floor, such rate shall be deemed to be the Floor for purposes of this Agreement. Any change in the Canadian Prime Rate due to a change in the PRIMCAN Index shall be effective from and including the effective date of such change in the PRIMCAN Index.

"**Canadian Prime Rate Loan**" means a Loan that bears interest based on the Canadian Prime Rate.

"**Capital Stock**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of a corporation or company, corporate stock or share capital;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in the case of a partnership or limited liability company, partnership or membership interests (whether general or limited); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person (it being understood and agreed, for the avoidance of doubt, that "cash-settled phantom appreciation programs" in connection with employee benefits that do not require a dividend or distribution shall not constitute Capital Stock).

"**Capitalized Lease Obligation**" means, subject to <u>Section</u> <u>1.03(a)</u>, at the time any determination thereof is to be made, the amount of the liability in respect of a capital lease that would at such time be required to be capitalized and reflected as a liability on a balance sheet (excluding the footnotes thereto) in accordance with GAAP.

"**Cash-Capped Incremental Facility**" has the meaning specified in <u>Section</u> <u>2.14(a)</u>.

"**Cash Collateralize**" means to pledge and deposit with or deliver to the Administrative Agent, for the benefit of the Administrative Agent or L/C Issuer (as applicable) and the Lenders, as collateral for L/C Obligations or obligations of Lenders to fund participations in respect of either thereof (as the context may require), cash, Cash Equivalents (if reasonably acceptable to the Administrative Agent and the applicable L/C Issuer) or deposit account balances (in the case of L/C Obligations in the respective currency or currencies in which the applicable L/C Obligations are denominated unless otherwise agreed by the Administrative Agent or L/C Issuer benefiting from such collateral) or, if the Administrative Agent or L/C Issuer benefiting from such collateral shall agree in its sole discretion, other credit support (including by backstop with a letter of credit satisfactory to the applicable L/C Issuer or by being deemed reissued under another agreement acceptable to the applicable L/C Issuer), in each case pursuant to documentation in form and substance reasonably satisfactory to (a) the Administrative Agent and (b) the applicable L/C Issuer (which documents are hereby consented to by the Lenders). "Cash Collateral" shall have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support.

"**Cash Equivalents**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Dollars, Alternative Currencies, the national currency of any Participating Member State of the European Union (as it is constituted on the Closing Date) and, with respect to any Non-U.S. Subsidiaries, other currencies held by such Non-U.S. Subsidiary in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) securities issued or directly guaranteed or insured by the government of the United States, the United Kingdom, Canada, Japan, or any Participating Member State of the European Union (as it is constituted on the Closing Date) or any agency or instrumentality thereof in each case with maturities not exceeding two years from the date of acquisition;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) money market deposits, certificates of deposit, time deposits and eurodollar time deposits with (i) maturities of two years or less from the date of acquisition, bankers' acceptances, in each case with maturities not exceeding two years, and overnight bank deposits, in each case with any commercial bank having capital and surplus in excess of $250,000,000 in the case of domestic banks or $100,000,000 (or the equivalent Dollar Amount) in the case of foreign banks or (ii) financial institution that is a member of the Federal Reserve System (or organized in any foreign country recognized by the United States) and whose senior unsecured debt is rated at least P-2, A-2 or F2, short-term, or A2, A or A, long-term, by Moody's, S&P or Fitch;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) repurchase obligations for underlying securities of the types described in <u>clauses (2)</u> and <u>(3)</u> above and <u>clause (6)</u> below entered into with any financial institution or securities dealers of recognized national standing meeting the qualifications specified in <u>clause (3)</u> above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) commercial paper or variable or fixed rate notes issued by a corporation or other Person (other than an Affiliate of a Borrower) rated at least "A-2", "P-2" or "F2" or the equivalent thereof by Moody's, S&P or Fitch (or reasonably equivalent ratings of another internationally recognized ratings agency) and in each case maturing within two years after the date of acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) readily marketable direct obligations issued by any state, commonwealth or territory of the United States of America or any political subdivision or taxing authority thereof having an Investment Grade Rating from Moody's, S&P or Fitch (or reasonably equivalent ratings of another internationally recognized ratings agency) in each case with maturities not exceeding two years from the date of acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Indebtedness issued by Persons (other than the Sponsor) with a rating of "A" or higher from S&P, "A-2" or higher from Moody's or "A" or higher from Fitch (or reasonably equivalent ratings of another internationally recognized ratings agency) in each case with maturities not exceeding two years from the date of acquisition, and marketable short-term money market and similar securities having a rating of at least "A-2", "P-2" or "F-2" from S&P, Moody's or Fitch (or reasonably equivalent ratings of another internationally recognized ratings agency);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) investment funds investing at least 95.0% of their assets in investments of the types described in <u>clauses (1)</u> through <u>(7)</u> above and <u>(9)</u> and <u>(10)</u> below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Investments with average maturities of 12 months or less from the date of acquisition in money market funds rated AAA (or the equivalent thereof) or better by S&P, Aaa3 (or the equivalent thereof) or better by Moody's or AAA (or the equivalent thereof) or better by Fitch (or reasonably equivalent ratings of another internationally recognized ratings agency); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) in the case of investments by any Non-U.S. Subsidiary or investments made in a country outside the United States of America, other investments of comparable tenor and credit quality to those described in the foregoing <u>clauses (1)</u> through <u>(9)</u> customarily utilized in the countries where such NonU.S. Subsidiary is located or in which such investment is made and other short-term investments in accordance with normal investment practices for cash management in investments analogous to the foregoing investments in <u>clauses (1)</u> through <u>(10)</u> in this clause.

Notwithstanding the foregoing, Cash Equivalents shall include amounts denominated in currencies other than those set forth in <u>clause (1)</u> above; *provided* that such amounts are converted into any currency listed in <u>clause (1)</u> as promptly as practicable and in any event within ten Business Days following the receipt of such amounts.

"**Cash Management Agreement**" means any agreement or arrangement to provide Cash Management Services to any of the Holding Companies or any Borrower Party.

"**Cash Management Bank**" means any Person (a) that (i) is at the time it enters into a Cash Management Agreement, an Arranger, Lender or an Agent or an Affiliate of an Arranger, Lender or an Agent, (ii) in the case of any Cash Management Agreement in effect on or prior to the Closing Date, is, as of the Closing Date or within 45 days thereafter, an Arranger, Lender or an Agent or an Affiliate of an Arranger, Lender or an Agent and a party to a Cash Management Agreement, or (iii) within 45 days after the time it enters into the applicable Cash Management Agreement, becomes an Arranger, Lender or an Affiliate of an Arranger, Lender or an Agent or (b) that (i) has been designated by the Borrower Representative in writing to the Administrative Agent as a "Cash Management Bank" for purposes of this Agreement and the other Loan Documents and (ii) that shall have appointed the Administrative Agent and the Collateral Agent as its agents under the applicable Loan Documents and agreed to be bound by the provisions of Article IX as if it were a Lender pursuant to a writing substantially in the form of <u>Exhibit M</u> or in such other form or manner as is reasonably satisfactory to the Borrower Representative and the Administrative Agent.

"**Cash Management Services**" means any of the following: automated clearing house transactions, treasury and/or cash management services, including, without limitation, treasury, depository, overdraft, credit, purchasing, stored value, or debit card, non-card e-payable services, electronic funds transfer, treasury management services (including controlled disbursement services, netting services, check drawing services, overdraft automatic clearing house fund transfer services, return items and interstate depository network services), cash pooling services, supplier financing services, other demand deposit or operating account relationships, supply chain financial services, foreign exchange facilities, and merchant services.

"**Casualty Event**" means any event that gives rise to the receipt by any Borrower Party of any casualty insurance proceeds or condemnation awards or that gives rise to a taking by a Governmental Authority in respect of any equipment, fixed assets or real property (including any improvements thereon) to replace, restore or repair, or compensate for the loss of, such equipment, fixed assets or real property.

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"**Cause of Action**" means any action, claim, cause of action, controversy, demand, right, action, lien, indemnity, interest, guaranty, suit, obligation, liability, damage, judgment, account, defense, offset, power, privilege, and license of any kind or character whatsoever, whether known, unknown, contingent or non-contingent, matured or unmatured, suspected or unsuspected, liquidated or unliquidated, disputed or undisputed, secured or unsecured, assertable directly or derivatively, whether arising before, on, or after the Closing Date, in contract or in tort, in law (whether local, state, or federal U.S. or non-U.S. law) or in equity, or pursuant to any other theory of local, state, or federal U.S. or non-U.S. law. For the avoidance of doubt, "Cause of Action" includes: (a) any right of setoff, counterclaim, or recoupment and any claim for breach of contract or for breach of duties imposed by law or in equity; (b) any claim based on or relating to, or in any manner arising from, in whole or in part, tort, breach of contract, breach of fiduciary duty, fraudulent transfer or fraudulent conveyance or voidable transaction law, violation of local, state, or federal or non-U.S. law or breach of any duty imposed by law or in equity, including securities laws, negligence, and gross negligence; (c) any claim pursuant to section 362 or chapter 5 of the title 11 of the United States Code or similar local, state, or federal U.S. or non-U.S. law; (d) any claim or defense including fraud, mistake, duress, and usury, and any other defenses set forth in section 558 of title 11 of the United States Code; (e) any state or foreign law pertaining to actual or constructive fraudulent transfer, fraudulent conveyance, or similar claim; and (f) any "lender liability" or equitable subordination claims or defenses.

"**CERCLA**" means the Comprehensive Environmental Response, Compensation, and Liability Act of 1980.

A "**Change of Control**" will be deemed to occur if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at any time, unless permitted by <u>Section</u> <u>7.03</u>, one or more Holding Companies shall cease to own, directly or indirectly, legally or beneficially, 100.0% of the issued and outstanding Equity Interests of any one of the Initial Borrowers; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) at any time prior to the consummation of a Qualified IPO, the Permitted Holders, taken together, shall cease to legally or beneficially own, directly or indirectly, at least 50.1% of the Voting Stock (measured by reference to ordinary voting power) of any one of the Holding Companies (determined on a fully diluted basis); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) at any time after the consummation of a Qualified IPO, any Person or "group" (within the meaning of Rule 13d-3 and Rule 13d-5 under the Exchange Act as in effect on the date hereof, but excluding any underwriters in connection with any Qualified IPO and any employee benefit plan and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan), other than one or more Permitted Holders, acquires legal or beneficial ownership of both (i) more than 50.0% of the Voting Stock (measured by reference to ordinary voting power) of any Holding Company (determined on a fully diluted basis) and (ii) more than the percentage of Voting Stock (measured by reference to ordinary voting power) of any Holding Company that is at the time legally or beneficially owned, directly or indirectly, by the Permitted Holders, taken together.

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Notwithstanding the foregoing, (1) a Permitted Change of Control shall not constitute a Change of Control, (2) any Permitted Core Business Disposition shall not constitute a Change of Control and (3) a Change of Control shall be deemed not to have occurred pursuant to <u>clause (b)</u> or <u>(c)</u> above at any time if the Permitted Holders have, at such time, directly or indirectly, the right or the ability, by voting power, contract or otherwise, to elect or designate for election at least a majority of the Board of Directors of each Holding Company.

"**Citibank**" has the meaning specified in the introductory paragraph of this Agreement.

"**Closing Date**" means February 26, 2025.

"**Closing Date Refinancing**" has the meaning specified in the Preliminary Statements of this Agreement.

"**Closing Date Term Loans"** means the Initial Term Loans incurred on the Closing Date and Delayed Draw Term Loans arising from Delayed Draw Commitments made available on the Closing Date.

"**Co-Borrower Joinder Agreement**" means a joinder agreement, in substantially the form of <u>Exhibit K</u> hereto or otherwise reasonably acceptable to the Administrative Agent, pursuant to which a CoBorrower agrees to become an obligor in respect of Borrowings under this Agreement.

"**Co-Borrowers**" means Wholly Owned Restricted Subsidiaries organized in any Applicable Jurisdiction from time to time designated by the Borrower Representative to the Administrative Agent as "borrowers" with respect to Borrowings in accordance with <u>Section</u> <u>11.01</u>, and "Co-Borrower" means any one of them.

"**Code**" means the U.S. Internal Revenue Code of 1986, as amended from time to time.

"**Collateral**" means all of the "Collateral" (or similar term) referred to in the Collateral Documents and all of the other property and assets that are or are required under the terms of the Collateral Documents to be subject to Liens in favor of the Collateral Agent for the benefit of the Secured Parties, which shall exclude, for the avoidance of doubt, any Excluded Property.

"**Collateral Agent**" means Citibank, acting through such of its Affiliates or branches as it may designate, in its capacity as collateral agent under any of the Loan Documents, or any successor collateral agent permitted by the terms hereof.

"**Collateral Documents**" means, collectively, the Security Agreement and each other security agreement, pledge agreement or other similar agreement delivered to the Collateral Agent pursuant to <u>Section</u> <u>6.12</u>, <u>Section</u> <u>6.14</u> or <u>Section</u> <u>6.16</u>, and each of the other agreements, instruments or documents that creates or purports to create a Lien in favor of the Collateral Agent for the benefit of the Secured Parties.

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"**Commitment**" means a Term Commitment and/or a Revolving Credit Commitment, as the context may require.

"**Committed Loan Notice**" means a notice of (a) a Term Borrowing, (b) a Revolving Credit Borrowing, (c) a conversion of Loans from one Type to another or (d) a continuation of SOFR Loans or Alternative Currency Term Rate Loans, pursuant to <u>Section</u> <u>2.02(a)</u>, which, if in writing, shall be substantially in the form of <u>Exhibit A-1</u>.

"**Commodity Exchange Act**" means the Commodity Exchange Act (7 U.S.C. §§ 1 *et. seq.)*, as amended from time to time, and any successor statute.

"**Company Competitor**" means any Person that competes with the business of the Holding Companies, the Borrowers and their respective direct and indirect Subsidiaries from time to time.

"**Compliance Certificate**" means a certificate substantially in the form of <u>Exhibit C</u> or such other form as may be agreed between the Borrower Representative and the Administrative Agent.

"**Consolidated**" means, with reference to any term defined herein, that term as applied to the accounts of the applicable Persons to which it relates, combined and/or, if prepared on a consolidated basis, consolidated, in accordance with GAAP.

"**Consolidated Cash Interest Expense**" means, with respect to any Person for any period, without duplication, the cash interest expense (including that attributable to any Capitalized Lease Obligation), net of cash interest income, with respect to Consolidated Funded Indebtedness of such Person and its Restricted Subsidiaries for such period, other than non-recourse Indebtedness, including commissions, discounts and other fees and charges owed with respect to letters of credit and bankers' acceptance financing and net cash costs under hedging agreements (other than in connection with the early termination thereof); excluding, in each case:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) amortization of deferred financing costs, debt issuance costs, commissions, fees and expenses and any other amounts of non-cash interest (including as a result of the effects of acquisition method accounting or pushdown accounting),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) interest expense attributable to the movement of the mark-to-market valuation of obligations under Swap Obligations or other derivative instruments,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) costs associated with incurring or terminating Swap Contracts and cash costs associated with breakage in respect of hedging agreements for interest rates,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) commissions, discounts, yield, make-whole premium and other fees and charges (including any interest expense) incurred in connection with any non-recourse Indebtedness and any Qualified Receivables Financings,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "additional interest" owing pursuant to a registration rights agreement with respect to any securities,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any payments with respect to make-whole premiums or other breakage costs of any Indebtedness, including any Indebtedness issued in connection with the Transactions,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) penalties and interest relating to Taxes,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) accretion or accrual of discounted liabilities not constituting Indebtedness,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) interest expense attributable to the Holding Companies resulting from push-down accounting,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) any expense resulting from the discounting of Indebtedness in connection with the application of recapitalization or purchase accounting,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) any interest expense attributable to the exercise of appraisal rights and the settlement of any claims or actions (whether actual, contingent or potential) with respect thereto in connection with the Transactions, any acquisition or Investment, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) annual agency fees paid to any trustees, administrative agents and collateral agents with respect to any secured or unsecured loans, debt facilities, debentures, bonds, commercial paper facilities or other forms of Indebtedness (including any security or collateral trust arrangements related thereto).

For purposes of this definition, interest on a Capitalized Lease Obligation will be deemed to accrue at an interest rate reasonably determined by such Person to be the rate of interest implicit in such Capitalized Lease Obligation in accordance with GAAP.

"**Consolidated Current Assets**" means, with respect to any Person and its Restricted Subsidiaries on a Consolidated basis, all assets of such Person and its Restricted Subsidiaries on a Consolidated basis that, in accordance with GAAP, would be classified as current assets on the balance sheet of a company conducting a business the same as or similar to that of such Person and its Restricted Subsidiaries on a Consolidated basis, after deducting appropriate and adequate reserves therefrom in each case in which a reserve is proper in accordance with GAAP, but excluding (i) cash, (ii) Cash Equivalents, (iii) Swap Contracts to the extent that the mark-to-market Swap Termination Value would be reflected as an asset on the Consolidated balance sheet of such Person, (iv) deferred financing fees, (v) amounts related to current or deferred taxes (but excluding assets held for sale, loans (permitted) to third parties, pension assets, deferred bank fees and derivative financial instruments) (so long as the items described in <u>clauses (iv)</u> and <u>(v)</u> are non-cash items), (vi) in the event that a Qualified Receivables Factoring or Qualified Receivables Financing is accounted for off balance sheet, (x) gross accounts receivable comprising part of the receivables and other related assets subject to such Qualified Receivables Factoring or Qualified Receivables Financing, as applicable, *minus* (y) collection by such Person against the amounts sold pursuant to <u>clause (x)</u> and (vii) the effects of adjustments pursuant to GAAP resulting from the application of recapitalization accounting or purchase accounting, as the case may be, in relation to the Transactions or any consummated acquisition.

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"**Consolidated Current Liabilities**" means, with respect to any Person and its Restricted Subsidiaries on a Consolidated basis, all liabilities in accordance with GAAP that would be classified as current liabilities on the Consolidated balance sheet of such Person, but excluding (a) the current portion of Indebtedness (including the Swap Termination Value of any Swap Contracts) to the extent reflected as a liability on the Consolidated balance sheet of such Person, (b) the current portion of interest, (c) accruals for current or deferred taxes based on income or profits, (d) accruals of any costs or expenses related to restructuring reserves or severance, (e) deferred revenue, (f) escrow account balances, (g) the current portion of pension liabilities, (h) liabilities in respect of unpaid earn-outs, (i) amounts related to derivative financial instruments and assets held for sale, (j) any L/C Obligations or Revolving Credit Loans and any letter of credit obligations, swing line loans or revolving loans under any other revolving credit facility, (k) the current portion of other long-term liabilities and (l) the effects of adjustments pursuant to GAAP resulting from the application of recapitalization accounting or purchase accounting, as the case may be, in relation to the Transactions or any consummated acquisition.

"**Consolidated EBITDA**" means, with respect to any Person and its Restricted Subsidiaries on a Consolidated basis for any period, the Consolidated Net Income of such Person for such period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) *increased*, in each case (other than with respect to <u>clauses (k)</u>, <u>(l)</u>, <u>(p)</u> and <u>(q)</u> below) to the extent deducted and not added back or excluded in calculating such Consolidated Net Income (and without duplication), by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) provision for taxes based on income, profits or capital, including federal, state, provincial, territorial, franchise, excise, property and similar taxes and foreign withholding taxes paid or accrued, including giving effect to any penalties and interest with respect thereto, and state taxes in lieu of business fees (including business license fees) and payroll tax credits, income tax credits and similar credits and including an amount equal to the amount of tax distributions actually made to the holders of Equity Interests of such Person or its Restricted Subsidiaries or any direct or indirect parent of such Person or its Restricted Subsidiaries in respect of such period (in each case, to the extent attributable to the operations of such Person and its Restricted Subsidiaries), which shall be included as though such amounts had been paid as income taxes directly by such Person or its Restricted Subsidiaries; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Consolidated Interest Expense; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all depreciation and amortization charges and expenses, including amortization or expense recorded for upfront payments related to any contract signing and signing bonus and incentive payments; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) (A) all fees, costs and expenses incurred due to the implementation of ASC 606 or any similar rule under applicable accounting standards and (B) all non-cash losses, charges, accruals or transitional adjustments (to the extent deducted in determining Consolidated Net Income) resulting from the application of ASC 606 or any similar rule under applicable accounting standards; *plus*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the amount of management, board of directors, monitoring, consulting, transaction and advisory fees (including termination fees) and related indemnities, charges and expenses paid or accrued to or on behalf of any direct or indirect parent of a Borrower or any of the Permitted Holders and payments to outside directors of a Borrower (or its direct or indirect parent companies), in each case, to the extent permitted by <u>Section</u> <u>6.18</u>; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) earn-out obligations incurred in connection with any acquisition or other Investment and paid or accrued during the applicable period, including any mark to market adjustments; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all payments, charges, costs, expenses, accruals or reserves in connection with the rollover, acceleration or payout of equity interests held by any future, present or former director, officer, employee, manager, consultant or independent contractor of any Borrower Party and all losses, charges and expenses related to payments made to holders of options, cash-settled appreciation rights, awards under any successor plans of the Borrowers' option or equity plans or other derivative equity interests in the common equity of such Person or any direct or indirect parent of a Borrower in connection with, or as a result of, any distribution being made to equityholders of such Person or any of its direct or indirect parents, which payments are being made to compensate such holders as though they were equityholders at the time of, and entitled to share in, such distribution; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) all non-cash losses, charges and expenses, including any write-offs or write-downs; *provided* that if any such non-cash loss, charge or expense represents an accrual or reserve for potential cash items in any future four-fiscal quarter period, (i) such Person may determine not to addback such noncash loss, charge or expense in the period for which Consolidated EBITDA is being calculated and (ii) to the extent such Person does decide to addback such non-cash loss, charge or expense, the cash payment in respect thereof in such future four-fiscal quarter period will be subtracted from Consolidated EBITDA for such future four-fiscal quarter period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all costs and expenses in connection with pre-opening and opening and closure and/or consolidation of facilities; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) expenses, charges, costs, accruals, reserves and losses related to operating expense reductions, restructurings, integration, platform consolidations and migrations, transition, insourcing initiatives, operating improvements, cost savings initiatives and other business optimization initiatives, actions or events (including, without limitation, those related to the start-up, pre-opening, opening, closure, reconfiguration and/or consolidation of distribution centers, operations, offices and facilities (including future lease commitments, lease breakage and vacant facilities) and relocation and reallocation of employees, equipment and other assets and resources; new product design, development and introductions (including intellectual property development); strategic initiatives; project start-up costs (including entry into new market/channels, new service offerings, new platforms or new contracts); curtailments or modifications to pension and post-retirement employee benefit plans (including excess pension charges and any settlement of pension liabilities); exiting, winding down or termination of lines of business; settlement

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costs; costs related to customer disputes, distribution networks or sales channels; the implementation, replacement, development or upgrade of operational, reporting and information technology systems and technology initiatives; contract termination, retention, recruiting, severance, signing, consulting and transition services arrangements; systems establishment costs; systems, facilities or equipment conversion costs; expenses attributable to the implementation of costs savings initiatives; costs associated with tax projects/audits, expenses relating to any decommissioning or reconfiguration of fixed assets for alternative uses and costs consisting of professional consulting or other fees relating to any of the foregoing; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Pro Forma Cost Savings; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) amounts included in the EBITDA reconciliations set forth in the lender presentation dated January 21, 2025 or amounts of a similar nature to those set forth therein, without duplication, to the extent adjustments of such nature continue to be applicable during the period in which Consolidated EBITDA is being calculated; *provided* that any such adjustments that consist of reductions in costs and other operating improvements or synergies shall be calculated in accordance with, and satisfy the requirements specified in, the definition of "Pro Forma Basis"; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the amount of loss or discount on sale of receivables and related assets to a Receivables Subsidiary in connection with a Receivables Financing; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) with respect to any joint venture of such Person or any Restricted Subsidiary thereof that is not a Restricted Subsidiary, an amount equal to (i) such Person's or such Restricted Subsidiary's proportionate share of the net income of such joint venture that is excluded from Consolidated Net Income as a result of <u>clause (h)(i)</u> of the definition of "Consolidated Net Income" and (ii) the proportion of those items described in <u>clauses (a)</u>, <u>(b)</u> and <u>(c)</u> above relating to such joint venture corresponding to such Person's and the Restricted Subsidiaries' proportionate share of such joint venture's Consolidated Net Income (determined as if such joint venture were a Restricted Subsidiary) solely to the extent Consolidated Net Income was reduced thereby; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) charges consisting of income attributable to minority interests and noncontrolling interests of third parties in any Restricted Subsidiary that is not a Wholly Owned Restricted Subsidiary, excluding cash distributions in respect thereof; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) the amount of value that the Borrower Representative in good faith reasonably believes would have been realized or achieved as Consolidated EBITDA contribution from (i) increased pricing, volume initiatives, inventory optimization, cost rationalization and supply-chain optimization and/or (ii) the entry into (and performance under) binding and effective new agreements (including purchase orders) with new customers or, if generating value, new agreements (or amendments to existing agreements) (including purchase orders) with existing customers (collectively, "**New Contracts**") during such period had such New Contracts been effective and had performance thereunder commenced as of the beginning of such period (including, without limitation, such incremental contract value attributable to New Contracts that are in excess of (but without

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duplication of) contract value attributable to New Contracts that has been actually realized as Consolidated EBITDA contribution during such period) as long as such incremental contract value is reasonably identifiable and factually supportable; *provided* that such value shall be calculated on a Pro Forma Basis as though the full run rate effect of such value had been realized as Consolidated EBITDA contributed on the first day of such period; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) at the option of the Borrower Representative, any adjustments (including pro forma adjustments) of the type (w) reflected in the Sponsor Model, (x) reflected in any quality of earnings report obtained in connection with the Transactions or (y) reflected in any quality of earnings report obtained and, in the case of this <u>clause (y)</u>, made available to the Administrative Agent and prepared by a nationally recognized accounting firm that is reasonably acceptable to the Administrative Agent (it being understood and agreed that any of the "big four" accounting firms, FTI Consulting, Inc., RSM US LLP, Grant Thornton LLP, Alvarez & Marsal Holdings, LLC and BDO USA, P.C. are acceptable to the Administrative Agent) (in each case, without regard to time or amounts) and (z) Regulation S-X adjustments, in each case, without regard to time or amounts; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) pro forma adjustments for (i) pre-acquisition EBITDA for acquisitions and (ii) attributable EBITDA for abandoned dispositions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) *decreased* (without duplication and to the extent increasing such Consolidated Net Income for such period) by (i) non-cash gains or income, excluding any non-cash gains that represent the reversal of any accrual of, or cash reserve for, anticipated cash charges that were deducted (and not added back) in the calculation of Consolidated EBITDA for any prior period ending after the Closing Date and (ii) the amount of any loss attributable to minority equity interest of third parties in any Restricted Subsidiary that is not a Wholly Owned Subsidiary (to the extent not deducted from Consolidated Net Income for such period);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) *increased* (with respect to losses) or *decreased* (with respect to gains) by, without duplication, any net realized gains and losses relating to (i) amounts denominated in foreign currencies resulting from the application of FASB ASC 830 (including net realized gains and losses from exchange rate fluctuations on intercompany balances and balance sheet items, net of realized gains or losses from related Swap Contracts (entered into in the ordinary course of business or consistent with past practice)) or (ii) any other amounts denominated in or otherwise trued-up to provide similar accounting as if it were denominated in foreign currencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) *increased* (with respect to losses) or *decreased* (with respect to gains) by, without duplication, any gain or loss relating to Swap Contracts (excluding Swap Contracts entered into in the ordinary course of business or consistent with past practice);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) *increased* (with respect to losses) or *decreased* (with respect to gains) by any net loss or reduction or net gain or increase in revenue included in Consolidated Net Income attributable to changes in accounting methodology or principles used by any Person, property, business or asset acquired in connection with an Investment permitted hereunder from the methodology or principles used by such Person, property, business or asset immediately prior to such Investment to the methodology used by the Loan Parties following such acquisition or Investment; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) *decreased* (without duplication and to the extent increasing such Consolidated Net Income for such period) by any non-cash gains, charges or adjustments resulting from the application of ASC 606 or any similar rule under applicable accounting standards;

*provided*, that the Borrowers may, in their sole discretion, elect to not make any adjustment for any item pursuant to the foregoing <u>clauses (1)</u> through <u>(6)</u> above if any such item individually is less than $7,500,000 in any fiscal quarter or such adjustment would have the effect of increasing Consolidated EBITDA.

"**Consolidated First Lien Net Leverage Ratio**" means, as of any date of determination, the ratio of (a) Consolidated Funded First Lien Indebtedness of the Borrower Parties as of such date (less (x) the amount of Adjusted Cash and unrestricted Cash Equivalents of the Borrower Parties and (y) the amount of cash and Cash Equivalents of the Borrower Parties restricted in favor of the Term Facilities, any other Indebtedness that is secured by a Lien on the Collateral that is *pari passu* with the Lien securing the Term Facilities and/or any other secured Indebtedness included in the numerator of the Consolidated First Lien Net Leverage Ratio (which may also include cash and Cash Equivalents securing other Indebtedness secured by a Lien on the Collateral), in each case as of such date) to (b) Four Quarter Consolidated EBITDA.

"**Consolidated Funded First Lien Indebtedness**" means Consolidated Funded Indebtedness of the Borrower Parties that is secured by a Lien on the Collateral on an equivalent priority basis (but, in each case, without regard to the control of remedies) with the Liens on the Collateral securing the Initial Term Loans. For the avoidance of doubt, Consolidated Funded First Lien Indebtedness shall not include Capitalized Lease Obligations other than those that are secured on an equal priority basis with the Liens on the Collateral securing the Initial Term Loans.

"**Consolidated Funded Indebtedness**" of a Person means all Indebtedness of the type described in <u>clauses (a)(i)</u>, <u>(a)(ii)</u> (but excluding surety bonds, performance bonds or other similar instruments), and <u>clause (b)</u> (in respect of Indebtedness of the type described in <u>clauses (a)(i)</u> and <u>(a)(ii)</u> (but excluding Indebtedness constituting surety bonds, performance bonds or other similar instruments) of the definition of "Indebtedness" of such Person and its Restricted Subsidiaries on a Consolidated basis, in an amount that would be reflected on a balance sheet prepared as of such date on a Consolidated basis in accordance with GAAP (but (x) excluding the effects of any discounting of Indebtedness resulting from the application of purchase accounting in connection with the Transactions or any acquisition and (y) any Indebtedness that is issued at a discount to its initial principal amount shall be calculated based on the entire stated principal amount thereof, without giving effect to any discounts or upfront payments), excluding obligations in respect of letters of credit, bank guarantees and guarantees on first demand, in each case, except to the extent of unreimbursed amounts thereunder. For the avoidance of doubt, it is understood that obligations (a) under Swap Contracts and Cash Management Services and (b) owed by Unrestricted Subsidiaries do not constitute Consolidated Funded Indebtedness.

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"**Consolidated Funded Senior Secured Indebtedness**" means Consolidated Funded Indebtedness of the Borrower Parties that is secured by a Lien on the Collateral; *provided* that such Consolidated Funded Indebtedness is not expressly subordinated pursuant to a written agreement in right of payment to the Obligations.

"**Consolidated Interest Coverage Ratio**" means, as of any date of determination, the ratio of (a) Four Quarter Consolidated EBITDA to (b) Consolidated Cash Interest Expense of the Borrower Parties on a Consolidated basis for the Test Period ended on such date, in each case, calculated on a Pro Forma Basis.

"**Consolidated Interest Expense**" means, with respect to any Person for any period, the sum, without duplication, of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the aggregate interest expense of such Person and its Restricted Subsidiaries for such period, calculated on a Consolidated basis in accordance with GAAP, to the extent such expense was deducted (and not added back) in computing Consolidated Net Income (including pay in kind interest payments, amortization of original issue discount, the interest component of Capitalized Lease Obligations and net payments and receipts (if any) pursuant to interest rate Swap Contracts (other than in connection with the early termination thereof) but excluding any non-cash interest expense attributable to the movement in the mark-to-market valuation of Indebtedness, Swap Contracts or other derivative instruments, all amortization and write-offs of deferred financing fees, debt issuance costs, commissions, discounts, fees and expenses and expensing of any bridge, commitment or other financing fees, costs of surety bonds, charges owed with respect to letters of credit, bankers' acceptances or similar facilities, all discounts, commissions, fees and other charges associated with any Receivables Financing or Factoring Transaction, and any expense resulting from the discounting of Indebtedness in connection with the application of recapitalization or purchase accounting); *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Consolidated capitalized interest of the referent Person and its Restricted Subsidiaries for such period, whether paid or accrued; *less*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) interest income of the referent Person and its Restricted Subsidiaries for such period; *provided* that (i) when determining Consolidated Interest Expense in respect of any four-quarter period ending prior to the first anniversary of the Closing Date, Consolidated Interest Expense will be calculated by multiplying the aggregate Consolidated Interest Expense accrued since the Closing Date by 365 and then dividing such product by the number of days from and including the Closing Date to and including the last day of such period and (ii) in the case of any Person that became a Restricted Subsidiary of such Person after the commencement of such four-quarter period, the interest expense of such Person paid in cash prior to the date on which it became a Restricted Subsidiary of such Person will be disregarded. For purposes of this definition, interest on Capitalized Lease Obligations will be deemed to accrue at the interest rate reasonably

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determined by such Person to be the rate of interest implicit in such Capitalized Lease Obligations in accordance with GAAP.

"**Consolidated Net Income**" means, with respect to any Person for any period, the aggregate of the after-tax net income (or loss) of such Person and its Restricted Subsidiaries for such period, calculated on a Consolidated basis in accordance with GAAP and before any reduction in respect of Preferred Stock dividends; *provided* that (without duplication):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all net after-tax extraordinary, nonrecurring, infrequent, exceptional or unusual gains, losses, income, expenses, charges, costs, accruals and reserves (including any of the foregoing related to any single or one-time event), in each case, as determined in good faith by such Person, and in any event including, without limitation, all losses, expenses, charges, costs, accrual and reserves relating to marketing or rebranding, compliance with accounting standards, enhanced accounting function (including the purchase of and/or initial costs of subscription to an enterprise resource planning (ERP) system and/or niche financial solution(s) to unify accounting applications into a single platform, support multinational accounting and reporting requirements, and comply with the application of current and future Accounting Standards Codification) or other transaction costs or operational changes or improvements or associated with becoming a standalone entity or public company, in each case, whether or not consummated, all restructuring, severance, relocation, retention and completion bonuses or payments, consolidation, integration or other similar charges and expenses, contract termination costs, system establishment charges, conversion costs, start-up or closure or transition costs, expenses related to any reconstruction, decommissioning, recommissioning or reconfiguration of fixed assets for alternative uses, fees, expenses or charges relating to curtailments, settlements or modifications to pension and post-retirement employee benefit plans in connection with the Transactions or any acquisition or Permitted Investment, expenses associated with strategic initiatives, facilities shutdown and opening costs and any fees, expenses, charges or change in control payments related to the Transactions or any acquisition or Permitted Investment (including any transition-related expenses (including retention or transaction-related bonuses or payments) incurred before, on or after the Closing Date), will be excluded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all (i) losses, charges, costs and expenses relating to the Transactions, (ii) transaction fees, costs and expenses incurred in connection with any contemplated equity issuances, investments, acquisitions, dispositions, recapitalizations, mergers, amalgamations, option buyouts and the Incurrence, modification or repayment of Indebtedness permitted to be Incurred under this Agreement (including any Refinancing Indebtedness in respect thereof) or any amendments, forbearance, waivers or other modifications under the agreements relating to such Indebtedness or similar transactions (in each case, whether or not consummated), and (iii) without duplication of any of the foregoing, non-operating or nonrecurring professional fees, costs and expenses for such period will be excluded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all net after-tax income, loss, expense or charge from abandoned, closed or discontinued operations and any net after-tax gain or loss on the disposal of abandoned, closed or discontinued operations (and all related expenses) other than in the ordinary course of business (as determined in good faith by such Person) will be excluded;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all net after-tax gain, loss, expense or charge attributable to business dispositions and asset dispositions, including the sale or other disposition of any Equity Interests of any Person, other than in the ordinary course of business (as determined in good faith by such Person), will be excluded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all net after-tax income, loss, expense or charge attributable to the early extinguishment, conversion or cancellation of Indebtedness, Swap Contracts or other derivative instruments (including deferred financing costs written off and premiums paid) will be excluded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all non-cash gains, losses, expenses or charges attributable to the movement in the mark- to-market valuation of Indebtedness, Swap Contracts or other derivative instruments will be excluded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any non-cash or unrealized currency translation or foreign currency transaction gains and losses related to changes in currency exchange rates (including, without limitation, remeasurements of Indebtedness and any net loss or gain resulting from (i) Swap Contracts for currency exchange risk and (ii) intercompany Indebtedness), will be excluded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) (i) the net income for such period of any Person that is not the referent Person or a Restricted Subsidiary of the referent Person or that is accounted for by the equity method of accounting, will be included only to the extent of the amount of dividends or distributions or other payments that are paid in or converted into cash or that, as reasonably determined by a responsible financial or accounting officer of the referent Person or a Restricted Subsidiary of the referent Person, could have been paid in or converted into (subject, in the case of a dividend or other distribution or return on investment to a Restricted Subsidiary, to the limitations contained in <u>clause (v)</u> below), cash with respect to such equity ownership to the referent Person or a Restricted Subsidiary thereof in respect of such period; and (ii) without duplication, the net income for such period will include any ordinary course dividends or distributions or other payments paid in cash (or converted into cash) with respect to such equity ownership received from any such Person during such period in excess of the amounts included in <u>subclause (i)</u> above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the cumulative effect of a change in accounting principles and changes as a result of the adoption or modification of accounting policies will be excluded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the effects of purchase accounting, fair value accounting or recapitalization accounting adjustments (including the effects of such adjustments pushed down to the referent Person and its Restricted Subsidiaries) resulting from the application of purchase accounting, fair value accounting or recapitalization accounting, including in relation to the Transactions and any acquisition consummated before or after the Closing Date (including in the inventory, property and equipment, software, goodwill, intangible assets,

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in-process research and development, deferred revenue and debt line items), and the amortization, write-down or write-off of any amounts thereof, net of taxes, will be excluded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) all non-cash impairment charges and asset write-ups, write-downs and write-offs, in each case pursuant to GAAP, and the amortization of intangibles arising from the application of GAAP will be excluded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) all non-cash expenses realized in connection with or resulting from equity or equity-linked compensation plans, employee benefit plans or agreements or post-employment benefit plans or agreements, or grants or sales of stock, stock appreciation, awards under any successor plans of the Borrowers' option or equity plans or similar rights, stock options, restricted stock, preferred stock, stock appreciation or other similar rights will be excluded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) any costs or expenses incurred in connection with the payment of dividend equivalent rights to holders of equity-based incentive awards pursuant to any management equity plan, stock option plan or any other management or employee benefit plan or agreement or post-employment benefit plan or agreement will be excluded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) accruals and reserves for liabilities or expenses that are established or adjusted as a result of the Transactions within 24 months after the Closing Date will be excluded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) all amortization and write-offs of deferred financing fees, debt issuance costs, commissions, fees and expenses, costs of surety bonds, charges owed with respect to letters of credit, bankers' acceptances or similar facilities, and expensing of any bridge, commitment or other financing fees (including in connection with a transaction undertaken but not completed), will be excluded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) all discounts, commissions, fees and other charges (including interest expense) associated with any Receivables Financing or Factoring Transaction will be excluded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) (i) the non-cash portion of "straight-line" rent expense will be excluded and (ii) the cash portion of "straight-line" rent expense that exceeds the amount expensed in respect of such rent expense will be included;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) expenses and lost profits with respect to liability or casualty events or business interruption will be disregarded to the extent covered by insurance and actually reimbursed, or, so long as such Person has made a determination that there exists reasonable evidence that such amount will in fact be reimbursed by the insurer, but only to the extent that such amount (i) has not been denied by the applicable carrier in writing and (ii) is in fact reimbursed within 365 days of the date on which such liability was discovered or such casualty event or business interruption occurred (with a deduction for any amounts so added back that are not reimbursed within such 365-day period); *provided* that any proceeds of such reimbursement when received will be excluded from the calculation of Consolidated Net Income to the extent the expense or lost profit reimbursed was previously disregarded pursuant to this <u>clause (r)</u>;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) losses, charges and expenses that are covered by indemnification or other reimbursement provisions in connection with any asset disposition will be excluded to the extent actually reimbursed, or, so long as such Person has made a determination that a reasonable basis exists for indemnification or reimbursement, but only to the extent that such amount is in fact indemnified or reimbursed within 365 days of such determination (with a deduction in the applicable future period for any amount so added back to the extent not so indemnified or reimbursed within such 365 days);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) non-cash charges or income relating to increases or decreases of deferred tax asset valuation allowances will be excluded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) any after-tax cash dividends or returns of capital from Investments (such return of capital not reducing the ownership interest in the underlying Investment), in each case received during such period, to the extent not otherwise included in Consolidated Net Income for that period or any prior period subsequent to the Closing Date will be included;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) solely for the purpose of determining the amount available for Restricted Payments under <u>clause (c)</u> of the first paragraph of <u>Section</u> <u>7.05</u>, and without duplication of provisions under <u>clause (c)</u> of the first paragraph of <u>Section</u> <u>7.05</u> with respect to cash dividends or returns on Investments, the net income (or loss) for such period of any Restricted Subsidiary (other than the Borrowers or a Guarantor) will be excluded to the extent that the declaration or payment of dividends or similar distributions by that Restricted Subsidiary is not at the date of determination permitted without any prior governmental approval (which has not been obtained) or, directly or indirectly, by the operation of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that Restricted Subsidiary or its stockholders, unless such restriction with respect to the payment of dividends or similar distributions has been legally waived; *provided* that Consolidated Net Income of such Person will be increased by the amount of dividends or other distributions or other payments actually paid in cash (or to the extent converted into cash) to such Person or any of its Restricted Subsidiaries in respect of such period, to the extent not already included therein (subject, in the case of a dividend to another Restricted Subsidiary (other than a Guarantor), to the limitation contained in this <u>clause (v)</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) any Public Company Costs will be excluded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) any (i) severance or relocation costs or expenses, (ii) one-time non-cash compensation charges, (iii) the costs and expenses related to employment of terminated employees, or (iv) costs or expenses realized in connection with or resulting from stock appreciation or similar rights, stock options or other rights of officers, directors and employees, in each case of such Person or any of its Restricted Subsidiaries, shall be excluded; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) any non-cash interest expense and non-cash interest income, in each case to the extent there is no associated cash disbursement or receipt, as the case may be, before the latest maturity date of any then outstanding Term Loan Tranche, shall be excluded;

*provided* that the Borrowers may, in their sole discretion, elect to not make any adjustment for any item pursuant to <u>clauses (a)</u> through <u>(y)</u> above if any such item individually is less than $7,500,000 in any fiscal quarter or such adjustment would have the effect of increasing Consolidated Net Income.

For the purpose of <u>Section</u> <u>7.05</u> only, there shall be excluded from Consolidated Net Income any income arising from the sale or other disposition of Restricted Investments, from repurchases or redemptions of Restricted Investments, from repayments of loans or advances which constituted Restricted Investments or from any dividends, repayments of loans or advances or other transfers of assets from Unrestricted Subsidiaries, in each case to the extent such amounts increase the amount of Restricted Payments permitted under such covenant pursuant to <u>clauses (d)(v)</u> or <u>(d)(vi)</u> of the first paragraph thereof.

For purposes of this definition, the phrase "after-tax" means, without duplication, net of any taxes paid or payable by the applicable Person and its Restricted Subsidiaries and net of any distributions paid pursuant to <u>clause (13)</u>, <u>(14)(a)</u> or <u>(14)(e)</u> of the second paragraph under <u>Section</u> <u>7.05</u>.

"**Consolidated Senior Secured Net Leverage Ratio**" means, as of any date of determination, the ratio of (a) Consolidated Funded Senior Secured Indebtedness of the Borrower Parties as of such date (less (x) the amount of Adjusted Cash and unrestricted Cash Equivalents of the Borrower Parties and (y) the amount of cash and Cash Equivalents of the Borrower Parties restricted in favor of the Term Facilities, any other Indebtedness that is secured by a Lien on the Collateral that is *pari passu* with the Lien securing the Term Facilities, any Junior Financing (if any), any other Indebtedness that is secured by a Lien on the Collateral that is junior to the Lien securing the Term Facilities and/or any other secured Indebtedness included in the numerator of the Consolidated Senior Secured Net Leverage Ratio (which may also include cash and Cash Equivalents securing other Indebtedness secured by a Lien on the Collateral), in each case as of such date), to (b) Four Quarter Consolidated EBITDA.

"**Consolidated Total Assets**" means the total Consolidated assets of the Borrower Parties, as shown on the most recent Consolidated balance sheet of the Borrower Parties, determined on a Pro Forma Basis.

"**Consolidated Total Net Leverage Ratio**" means, as of any date of determination, the ratio of (a) Consolidated Funded Indebtedness of the Borrower Parties as of such date (less (x) the amount of Adjusted Cash and unrestricted Cash Equivalents of the Borrower Parties and (y) the amount of cash and Cash Equivalents of the Borrower Parties restricted in favor of the Collateral Agent or any Lender (which may also include cash and Cash Equivalents securing other Indebtedness secured by a Lien on the Collateral), in each case as of such date) to (b) Four Quarter Consolidated EBITDA.

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"**Contingent Obligations**" means, with respect to any Person, any obligation of such Person guaranteeing any leases, dividends or other obligations that do not constitute Indebtedness ("**primary obligations**") of any other Person (the "**primary obligor**") in any manner, whether directly or indirectly, including, without limitation, any obligation of such Person, whether or not contingent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) to purchase any such primary obligation or any property constituting direct or indirect security therefor,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) to advance or supply funds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for the purchase or payment of any such primary obligation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation against loss in respect thereof.

"**Contractual Obligation**" means, as to any Person, any provision of any security issued by such Person or of any agreement, loan agreement, indenture, mortgage, deed of trust, lease, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.

"**Contribution Indebtedness**" means Indebtedness of any Borrower Party in an aggregate principal amount not greater than 200.0% of the aggregate amount of Permitted Equity Issuances (other than Excluded Contributions) made to the capital of any Borrower (other than Cure Equity) or any Restricted Subsidiary (other than, in the case of such Restricted Subsidiary, contributions by any Borrower Party to its capital) after the Closing Date.

"**Controlled Non-U.S. Subsidiary**" means any direct or indirect Subsidiary of a Borrower that is (or is a Subsidiary of) a "controlled foreign corporation" within the meaning of Section 957 of the Code any shares of which are treated as owned directly or indirectly by a United States Shareholder (within the meaning of Section 951(b) of the Code) as measured for purposes of Section 958(a) of the Code.

"**Convertible Debt**" means customary "bridge" loans, escrow or similar arrangements which by their terms of which provide for the conversion of such debt to equity interests prior to the scheduled maturity date of the Initial Term Loans then-in effect.

"**Core Business**" means any of the following businesses:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) electronic components, electronic subsystems and other similar components,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) interconnect solutions, electronic hermetic packaging, cable assemblies and/or similar components,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) metallized specialty bearings, seals, gaskets, contacts, springs and other components, and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) elastomeric seals, gaskets, ducting, fabric and other materials and components.

"**CORRA**" means the Canadian Overnight Repo Rate Average administered and published by the Bank of Canada (or any successor administrator).

"**CORRA Administrator**" means the Bank of Canada (or any successor administrator).

"**Covered Entity**" has the meaning specified in <u>Section</u> <u>10.25</u>.

"**Credit Agreement**" means (i) this Agreement and (ii) whether or not this Agreement remains outstanding, if designated by the Borrower Representative to be included in the definition of "Credit Agreement," one or more (A) debt facilities, indentures or commercial paper facilities providing for revolving credit loans, term loans, notes, debentures, receivables financing (including through the sale of receivables to lenders or to special purpose entities formed to borrow from lenders against such receivables) or letters of credit, (B) debt securities, notes, mortgages, guarantees, collateral documents, indentures or other forms of debt financing (including convertible or exchangeable debt instruments or bank guarantees or bankers' acceptances), or (C) instruments or agreements evidencing any other Indebtedness, in each case, with the same or different borrower(s) or issuer(s) and, in each case, as amended, supplemented, modified, extended, restructured, renewed, refinanced, restated, increased (*provided* that such increase in borrowings is permitted under this Agreement), replaced or refunded in whole or in part from time to time and whether by the same or any other agent, lender or investor or group of lenders or investors.

"**Credit Extension**" means each of the following: (a) a Borrowing and (b) an L/C Credit Extension.

"**Cure Amount**" has the meaning specified in <u>Section</u> <u>8.03(a)</u>.

"**Cure Equity**" has the meaning specified in <u>Section</u> <u>8.03(a)</u>.

"**Cure Period**" means the period commencing on the first day of the fiscal quarter for which a breach of a Financial Covenant has occurred and ending on the date that is fifteen Business Days following the date an Event of Default for failure to deliver the Compliance Certificate related to such fiscal quarter would occur.

"**Cure Right**" has the meaning specified in <u>Section</u> <u>8.03(a)</u>.

"**Cured Default**" has the meaning specified in <u>Section</u> <u>8.01</u>.

"**De Minimis Asset Sale Proceeds**" means the amount of (a) Net Cash Proceeds received by the Borrowers and/or any Restricted Subsidiary in respect of any Asset Sale and/or (b) Net Cash Proceeds received by the Borrowers and/or any Restricted Subsidiary in respect of a Casualty Event, in each case that are not required to be applied to prepay

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the Term Loans pursuant to <u>Section</u> <u>2.05(b)(ii)</u> on account of the De Minimis Proceeds Threshold.

"**De Minimis ECF Threshold**" has the meaning assigned to such term in the proviso to <u>Section</u> <u>2.05(b)</u>.

"**De Minimis Proceeds Threshold**" has the meaning assigned to such term in <u>Section</u> <u>2.05(b)(ii)</u>.

"**Debt Fund Affiliate**" means any Affiliate of the Sponsor (other than the Holding Companies and their Subsidiaries) that is primarily engaged in, or advises funds or other investment vehicles that are engaged in, making, purchasing, holding or otherwise investing in commercial loans, bonds and similar extensions of credit or securities in the ordinary course and with respect to which the Sponsor does not, directly or indirectly, possess the power to direct or cause the direction of the investment policies of any such Affiliate. Notwithstanding the foregoing, in no event shall a Natural Person be a Debt Fund Affiliate.

"**Debtor Relief Laws**" means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, judicial management, reorganization, or similar debtor relief Laws of the United States or other Applicable Jurisdictions from time to time in effect and affecting the rights of creditors generally.

"**Declining Lender**" has the meaning specified in <u>Section</u> <u>2.05(c)</u>.

"**Default**" means any event or condition set forth in <u>Section</u> <u>8.01</u> that constitutes an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default.

"**Default Rate**" means an interest rate equal to (after as well as before judgment), (a) with respect to any overdue principal for any Loan, the applicable interest rate for such Loan *plus* 2.00% per annum (*provided* that with respect to SOFR Loans or Alternative Currency Term Rate Loans, the determination of the applicable interest rate is subject to <u>Section</u> <u>2.02(c)</u> to the extent that SOFR Loans or such Alternative Currency Term Rate Loans may not be converted to, or continued as, SOFR Loans or Alternative Currency Term Rate Loans pursuant thereto) and (b) with respect to any other overdue amount, including overdue interest, the interest rate applicable to Base Rate Loans that are Initial Term Loans *plus* 2.00% per annum, in each case, to the fullest extent permitted by applicable Laws.

"**Defaulting Lender**" means, subject to <u>Section</u> <u>2.17(b)</u>, any Lender that (a) has (i) refused (which may be given verbally or in writing and has not been retracted) or failed to perform any of its funding obligations hereunder, including in respect of its Loans or participations in respect of Letters of Credit within two Business Days of the date required to be funded by it hereunder which refusal or failure is not cured within one Business Day after the date of such refusal or failure, or (ii) failed to pay to the Administrative Agent, the Swing Line Lenders, the L/C Issuers or any other Lender any other amount required to

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be paid by it under the Loan Documents within one Business Day of the date when due, (b) has notified the Borrower Representative or the Administrative Agent that it does not intend to comply with its funding obligations or has made a public statement to that effect with respect to its funding obligations hereunder or under other agreements generally in which it commits to extend credit unless such Lender notifies the Administrative Agent and the Borrower Representative in writing that such failure is the result of such Lender's good faith determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, (c) has failed, within three Business Days after reasonable request by the Administrative Agent, to confirm in a manner satisfactory to the Administrative Agent that it will comply with its funding obligations (*provided* that the Administrative Agent shall request such confirmation upon reasonable request from any L/C Issuer; *provided*, *further*, that such Lender shall cease to be a Defaulting Lender pursuant to this <u>clause (c)</u> upon receipt of such confirmation by the Administrative Agent) or (d) has, or has a direct or indirect parent company that has, other than via an Undisclosed Administration, (i) become the subject of a proceeding under any Debtor Relief Law, (ii) had a receiver, interim receiver, conservator, trustee, monitor, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of at least a substantial portion of its business or a custodian appointed for it, (iii) taken any action in furtherance of, or indicated its consent to, approval of or acquiescence in any such proceeding or appointment or (iv) become the subject of a Bail-In Action; *provided* that no Lender shall be a Defaulting Lender solely by virtue of (x) the ownership or acquisition by a Governmental Authority of any Equity Interest in that Lender or any direct or indirect parent company thereof so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender, or (y) the occurrence of any of the events described in <u>clause (d)(i)</u>, <u>(d)(ii)</u> or <u>(d)(iii)</u> of this definition which in each case has been dismissed or terminated prior to the date of this Agreement. Any determination by the Administrative Agent (or the Required Lenders to the extent that the Administrative Agent is a Defaulting Lender) that a Lender is a Defaulting Lender under any one or more of <u>clauses (a)</u> through <u>(d)</u> above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to <u>Section</u> <u>2.17(b)</u>) upon delivery of written notice of such determination to the Administrative Agent, the Borrower Representative, each L/C Issuer and each Lender, as applicable.

"**Delayed Draw Closing Date**" means the date of any Borrowing of Delayed Draw Term Loans in accordance with <u>Sections 2.01</u> and <u>4.03</u>.

"**Delayed Draw Commitment**" means, as to each Lender, its obligation to make a Delayed Draw Term Loan to the Borrowers hereunder during the Delayed Draw Commitment Period, expressed as an amount representing the maximum principal amount of the Delayed Draw Term Loans to be made by such Lender under this Agreement, as such commitment may be (a) automatically reduced to $0 on the Delayed Draw Commitment Termination Date, (b) reduced from time to time pursuant to <u>Section</u> <u>2.06</u> and (c) reduced or increased from time to time pursuant to (i) assignments by or to such

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Lender pursuant to an Assignment and Assumption, (ii) <u>Section</u> <u>2.14</u>, (iii) a Refinancing Amendment or (iv) an Extension. The initial amount of each Lender's Delayed Draw Commitment is set forth on <u>Schedule 2.01</u> under the caption "Delayed Draw Commitment" or, otherwise, in the Assignment and Assumption, Refinancing Amendment or other agreement pursuant to which such Lender shall have assumed its Delayed Draw Commitment, as the case may be. The initial aggregate amount of the Delayed Draw Commitments is $250,000,000.

"**Delayed Draw Commitment Period**" means the period from the Closing Date to and including the Delayed Draw Commitment Termination Date.

"**Delayed Draw Commitment Termination Date**" means the earliest to occur of (i) 5:00 p.m. on the date that is 24 months after the Closing Date (at which date and time all unfunded Delayed Draw Commitments shall automatically be reduced to $0), (ii) the date on which all Delayed Draw Commitments then outstanding have been funded in one or more Borrowings pursuant to <u>Section</u> <u>2.01</u> and (iii) the date on which all unfunded Delayed Draw Commitments have been terminated by the Borrowers pursuant to <u>Section</u> <u>2.06</u> or reduced to $0 pursuant to <u>Section</u> <u>8.02</u>.

"**Delayed Draw Facility**" means the Facility comprised of the Delayed Draw Commitments.

"**Delayed Draw Lender**" means each Lender with an unfunded Delayed Draw Commitment or Delayed Draw Term Loan.

"**Delayed Draw Term Loan**" has the meaning assigned to such term in <u>Section</u> <u>2.01(a)</u>.

"**Designated Non-Cash Consideration**" means the Fair Market Value of non-cash consideration received by any Borrower Party in connection with an Asset Sale that is so designated as Designated NonCash Consideration, less the amount of cash or Cash Equivalents received in connection with a subsequent sale of or collection on such Designated Non-Cash Consideration.

"**Designated Preferred Stock**" means Preferred Stock of any of the Holding Companies or any Parent Holding Company, as applicable (other than Excluded Equity), that is issued after the Closing Date for cash and is so designated as Designated Preferred Stock, the cash proceeds of which are contributed to the capital of the Borrowers (if issued by one or more of the Holding Companies or any Parent Holding Company) and excluded from the calculation set forth in <u>clause (c)</u> of the first paragraph of <u>Section</u> <u>7.05</u>.

"**Designated Earlier Maturing Debt**" means any Term Commitment Increase, New Term Facility, Incremental Equivalent Debt, Ratio Debt, Refinancing Indebtedness, Refinancing Notes and permitted refinancings of Term Commitment Increase, New Term Facility and any of the foregoing that is (i) Incurred in the form of Extendable Bridge Loans/Interim Debt, (ii) Incurred in the form of Convertible Debt, (iii) Incurred in connection with a Permitted Acquisition or any other Investment permitted hereunder (other than an investment in cash or Cash Equivalents), (iv) Incurred in the form of

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Indebtedness that constitutes a customary term "A" loan facility as reasonably determined by the Borrower Representative in good faith, or (v) designated by the Borrower Representative as "Designated Earlier Maturing Debt"; *provided* that, at the time of any incurrence of such Indebtedness pursuant to this <u>clause (v)</u>, the aggregate principal amount of all such Indebtedness incurred pursuant to this <u>clause (v)</u> shall not exceed the greater of (a) $460,000,000 and (B) 100.0% of Four Quarter Consolidated EBITDA for the Test Period most recently ended on or prior to such date of determination.

"**Designation Date**" has the meaning specified in <u>Section</u> <u>2.19(f)</u>.

"**Discount Range**" has the meaning specified in the definition of "Dutch Auction".

"**Disposition**" or **"Dispose**" has the meaning specified in the definition of "Asset Sale".

"**Disqualified Institution**" means (a) each person identified as a "Disqualified Institution" on a list delivered to the Arrangers by or on behalf of the Borrower Representative on or prior to January 10, 2025 (as such list may be updated from time to time (i) prior to the Closing Date with the consent of the Arrangers (such consent not to be unreasonably withheld, conditioned or delayed) and/or (ii) after the Closing Date with the Administrative Agent's consent (such consent not to be unreasonably withheld, conditioned or delayed)), (b) any Company Competitor identified on a list delivered to the Administrative Agent by the Borrower Representative from time to time and (c) as to any entity referenced in each of <u>clauses (a)</u> and <u>(b)</u> above (the "**Primary Disqualified Institution**"), any of such Primary Disqualified Institution's known Affiliates or Affiliates identified in writing to the Administrative Agent from time to time or otherwise readily identifiable as such by name, but excluding, any Affiliate that is primarily engaged in, or that advises funds or other investment vehicles that are engaged in, making, purchasing, holding or otherwise investing in commercial loans, bonds and similar extensions of credit or securities in the ordinary course and with respect to which the Primary Disqualified Institution does not, directly or indirectly, possess the power to direct or cause the direction of the investment policies of such entity; *provided* that any additional designation permitted by the foregoing shall not apply retroactively to any prior or pending assignment or participation to any Lender or Participant. Any additions, deletions or other modifications to the list of Disqualified Institutions shall become effective, (I) in the case of the preceding clause (a)(ii), one Business Day after the Administrative Agent consents thereto and (II) otherwise, two Business Days after delivery to the Administrative Agent.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise (other than as a result of a change of control, initial public offering or asset sale; *provided* that any purchase requirement triggered thereby may not become operative until compliance with, in the case of an asset sale, the provisions of <u>Section</u> <u>7.04</u> or, in the

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case of a change of control or initial public offering, the repayment in full of the Obligations (other than contingent indemnification obligations as to which no claim has been asserted and obligations and liabilities under Secured Cash Management Agreements, Secured Hedge Agreements, Secured Third Party Letters of Credit and Letters of Credit that have been Cash Collateralized or as to which arrangements satisfactory to the L/C Issuer that issued such Letters of Credit shall have been made) and termination of the Aggregate Commitments,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) is convertible or exchangeable for Indebtedness or Disqualified Stock, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) is redeemable at the option of the holder thereof, in whole or in part, in each case prior to the date that is 91 days after the Latest Maturity Date of the Term Loans at the time of issuance of the respective Disqualified Stock (other than as a result of a change of control, initial public offering or asset sale; *provided* that any purchase requirement triggered thereby may not become operative until compliance with, in the case of an asset sale, the provisions of <u>Section</u> <u>7.04</u> or, in the case of a change of control or initial public offering, the repayment in full of the Obligations (other than contingent indemnification obligations as to which no claim has been asserted and obligations and liabilities under Secured Cash Management Agreements, Secured Hedge Agreements, Secured Third Party Letters of Credit, and Letters of Credit that have been Cash Collateralized or as to which arrangements satisfactory to the L/C Issuer that issued such Letters of Credit shall have been made) and termination of the Aggregate Commitments; *provided* that only the portion of Equity Interests that so matures or is mandatorily redeemable, is so convertible or exchangeable or is so redeemable at the option of the holder thereof prior to such date shall be deemed to be Disqualified Stock; *provided*, *further*, that if such Equity Interests are issued to any employee or to any plan for the benefit of employees of the Borrowers or their Subsidiaries or a direct or indirect parent of the Borrowers or by any such plan to such employees, such Equity Interests shall not constitute Disqualified Stock solely because it may be required to be repurchased by the Borrowers or their Subsidiaries or a direct or indirect parent of the Borrowers in order to satisfy applicable statutory or regulatory obligations or as a result of such employee's termination, death or disability; *provided*, *further*, that any class of Equity Interests of such Person that by its terms authorizes such Person to satisfy its obligations thereunder by delivery of Equity Interests that are not Disqualified Stock shall be deemed not to be Disqualified Stock.

"**Divided LLC**" means a limited liability company which has been formed upon the consummation of an LLC Division.

"**Divided LP**" means a limited partnership which has been formed upon the consummation of an LP Division.

"**Dollar**" and "$" mean lawful money of the United States.

"**Dollar Amount**" means, at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to any Loan or Letter of Credit denominated in Dollars, the principal amount thereof then outstanding (or in which such participation is held);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to any Loan denominated in an Alternative Currency or other currency other than Dollars, the principal amount thereof then outstanding in the relevant Alternative Currency, converted to Dollars in accordance with <u>Section</u> <u>1.08</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in relation to any Letter of Credit denominated in an Alternative Currency, the principal amount of L/C Obligations in respect thereof converted to Dollars at the Agent's Spot Rate of Exchange at the time of issuance of any Letter of Credit and as of the first Business Day of each calendar month thereafter so long as such Letter of Credit remains outstanding.

"**Dutch Auction**" means an auction (an "**Auction**") conducted by one of the Holding Companies or one of their Subsidiaries in order to purchase any Term Loans under a Term Loan Tranche (the "**Purchase**") in accordance with the following procedures or such other procedures as may be agreed to between the Administrative Agent and the Borrower Representative:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Notice Procedures**. In connection with any Auction, the Borrower Representative shall provide notification to the Administrative Agent (for distribution to the Appropriate Lenders) of the Term Loans under such Term Loan Tranche that will be the subject of the Auction (an "**Auction Notice**"). Each Auction Notice shall be in a form reasonably acceptable to the Administrative Agent and shall specify (i) the total cash value of the bid, in a minimum amount of $10,000,000 with minimum increments of $2,000,000 in excess thereof (the "**Auction Amount**") and (ii) the discounts to par, which shall be expressed as a range of percentages of the par principal amount of the Term Loans under such Term Loan Tranche at issue (the "**Discount Range**"), representing the range of purchase prices that could be paid in the Auction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Reply Procedures**. In connection with any Auction, each applicable Lender may, in its sole discretion, participate in such Auction by providing the Administrative Agent with a notice of participation (the "**Return Bid**") which shall be in a form reasonably acceptable to the Administrative Agent and shall specify (i) a discount to par that must be expressed as a price (the "**Reply Discount**"), which must be within the Discount Range, and (ii) a principal amount of the applicable Term Loans such Lender is willing to sell, which must be in increments of $2,000,000 or in an amount equal to such Lender's entire remaining amount of the applicable Term Loans (the "**Reply Amount**"). Lenders may only submit one Return Bid per Auction. In addition to the Return Bid, each Lender wishing to participate in such Auction must execute and deliver, to be held in escrow by the Administrative Agent, an assignment and acceptance agreement in a form reasonably acceptable to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Acceptance Procedures**. Based on the Reply Discounts and Reply Amounts received by the Administrative Agent, the Administrative Agent, in consultation with the Borrower Representative, will determine the applicable discount (the "**Applicable Discount**") for the Auction, which shall be the lowest Reply Discount for which a Holding Company or its Subsidiary, as applicable, can complete the Auction at the Auction Amount; *provided* that, in the event that the Reply Amounts are insufficient to allow a Holding Company or its applicable Subsidiary, as applicable, to complete a purchase of the entire

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Auction Amount, the applicable Holding Company or such Subsidiary shall either, at its election, (i) withdraw the Auction or (ii) complete the Auction at an Applicable Discount equal to the lowest Reply Discount that would allow a Holding Company or its applicable Subsidiary, as applicable, to complete a purchase of the entire Auction Amount. The applicable Holding Company or its applicable Subsidiary, as applicable, shall purchase the applicable Loans (or the respective portions thereof) from each applicable Lender with a Reply Discount that is equal to or greater than the Applicable Discount ("**Qualifying Bids**") at the Applicable Discount; *provided* that if the aggregate proceeds required to purchase all applicable Loans subject to Qualifying Bids would exceed the Auction Amount for such Auction, the applicable Holding Company or its Subsidiary, as applicable, shall purchase such Loans at the Applicable Discount ratably based on the principal amounts of such Qualifying Bids (subject to adjustment for rounding as specified by the Administrative Agent). Each participating Lender will receive notice of a Qualifying Bid as soon as reasonably practicable but in no case later than five Business Days from the date the Return Bid was due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Additional Procedures**. After being initiated by an Auction Notice, the applicable Holding Company or any of their Subsidiaries, as applicable, may withdraw an Auction in their sole and absolute discretion at any time. Furthermore, in connection with any Auction, upon submission by a Lender of a Qualifying Bid, such Lender will be obligated to sell the entirety or its allocable portion of the Reply Amount, as the case may be, at the Applicable Discount. The Purchase shall be consummated pursuant to and in accordance with <u>Section</u> <u>10.07</u> and, to the extent not otherwise provided herein, shall otherwise be consummated pursuant to procedures (including as to timing, rounding and minimum amounts, Interest Periods, and other notices by such Holding Company or such Subsidiary, as applicable) reasonably acceptable to the Administrative Agent and the Borrower Representative.

"**Early Opt-in Election**" means the joint election by the Administrative Agent and the Borrower Representative to trigger a fallback from a then-current Benchmark.

"**ECF Prepayment Amount**" has the meaning specified in <u>Section</u> <u>2.05(b)(i)</u>.

"**EEA Financial Institution**" means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in <u>clause (a)</u> of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in <u>clause (a)</u> or <u>(b)</u> of this definition and is subject to consolidated supervision with its parent.

"**EEA Member Country**" means any of the member states of the European Union, Iceland, Liechtenstein and Norway.

"**EEA Resolution Authority**" means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

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"**Effective Extension Incremental Facility**" has the meaning specified in <u>Section</u> <u>2.14(a)</u>.

"**Elected Loan Party**" means any Restricted Subsidiary that has elected in writing by notice to the Collateral Agent to become an obligor (whether as a Borrower or Guarantor) in respect of the Obligations.

"**Electronic Signature**" means an electronic sound, symbol, or process attached to, or associated with, a contract or other record and adopted by a Person with the intent to sign, authenticate or accept such contract or record.

"**Eligible Assignee**" means any Person that meets the requirements to be an assignee under <u>Section</u> <u>10.07(b)</u> (subject to receipt of such consents, if any, as may be required for the assignment of the applicable Loan and/or Commitments to such Person under <u>Section</u> <u>10.07(b)(iii)</u>).

"**EMU**" means the economic and monetary union as contemplated in the EU Treaty.

"**EMU Legislation**" means the legislative measures of the EMU for the introduction of, changeover to, or operation of the Euro in one or more member states.

"**Enterprise Transformative Event**" means any merger, acquisition, amalgamation, investment, dissolution, liquidation, consolidation or disposition that is either (a) not permitted by the terms of the Loan Documents immediately prior to the consummation of such transaction or (b) if permitted by the terms of the Loan Documents immediately prior to the consummation of such transaction, would not provide the Borrower Parties with adequate flexibility under the Loan Documents for the continuation and/or expansion of their combined operations following such consummation, as reasonably determined by the Borrower Representative acting in good faith.

"**Environment**" means ambient air, indoor air, surface water, groundwater, drinking water, land surface, sediments, and subsurface strata and natural resources such as wetlands, flora and fauna.

"**Environmental Laws**" means any and all applicable federal, state, provincial, territorial, local and foreign statutes, laws, including common law, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses or governmental restrictions or agreements with any Governmental Authority relating to pollution, the protection of the Environment, and human health and safety (to the extent relating to exposure to hazardous materials), including those related to hazardous materials, air emissions and discharges to public pollution control systems.

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"**Environmental Liability**" means any liability (including any liability for damages, costs of environmental remediation, monitoring or oversight by a Governmental Authority, fines, penalties or indemnities) directly or indirectly resulting from or based upon (a) any actual or alleged violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, disposal or treatment of any Hazardous Materials, (c) human exposure to any Hazardous Materials, (d) the Release or threatened Release of any Hazardous Materials into the Environment or (e) any contract, agreement or other binding consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

"**Environmental Permit**" means any permit, approval, identification number, license or other authorization required under any Environmental Law.

"**Equity Interests**" means Capital Stock and all warrants, options or other rights to acquire Capital Stock (but excluding any Capital Stock that arises only by reason of the happening of a contingency that is outside the control of the holder of such Capital Stock or any debt security that is convertible into, or exchangeable for, Capital Stock).

"**Equity Issuance**" means any issuance by any Person to any other Person of (a) its Equity Interests for cash, (b) any of its Equity Interests pursuant to the exercise of options or warrants, (c) any of its Equity Interests pursuant to the conversion of any debt securities to equity or (d) any options or warrants relating to its Equity Interests.

"**Equity Offering**" means any public or private sale on or after the Closing Date of Capital Stock or Preferred Stock of a Borrower or any direct or indirect parent of a Borrower, as applicable (other than Disqualified Stock), other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) public offerings with respect to such Borrower's or such direct or indirect parent's common stock registered on Form S-4 or Form S-8 or successor form thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) issuances to any Subsidiary of a Borrower; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) any such public or private sale that constitutes an Excluded Contribution or Refunding Capital Stock.

"**ERISA**" means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder.

"**ERISA Affiliate**" means any Person who together with any Loan Party or any of its Affiliates is treated as a single employer within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code) or Section 4001 of ERISA.

"**ERISA Event**" means (a) a Reportable Event with respect to a Plan; (b) the withdrawal of any Loan Party or any ERISA Affiliate from a Plan subject to Section 4063 of ERISA during a plan year in which such entity 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 Loan Party or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is insolvent (within the meaning of Section 4245 of ERISA); (d) the filing of a written notice of intent to terminate or the treatment of a Plan amendment as a

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termination under Section 4041 or 4041A of ERISA, respectively; (e) the institution by the PBGC of, or the receipt of any notice by any Loan Party or any ERISA Affiliate from the PBGC or a plan administrator indicating an intent by the PBGC to institute, proceedings to terminate a Plan or Multiemployer Plan; (f) 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 Plan or Multiemployer Plan; (g) the determination that any Plan is considered an at-risk plan within the meaning of Section 430 of the Code or Section 303 of ERISA; (h) the determination that any Multiemployer Plan is considered a plan in "endangered", "critical", or "critical and declining" status within the meaning of Section 432 of the Code or Section 305 of ERISA; (i) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon any Loan Party or any ERISA Affiliate; (j) the conditions for the imposition of a Lien under Section 430(k) of the Code or Section 303(k) of ERISA shall have been met with respect to any Plan; or (k) any Foreign Benefit Event.

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

"**EU Treaty**" means the Treaty on European Union.

"**Euro**", "**Euros**" and/or "**EUR**" means the single currency of the Participating Member States introduced in accordance with the provisions of Article 109(i)4 of the EU Treaty.

"**Event of Default**" has the meaning specified in <u>Section</u> <u>8.01</u>.

"**Excess Cash Flow**" means, with respect to any Excess Cash Flow Period, an amount, not less than zero, equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Consolidated Net Income of the Borrower Parties for such Excess Cash Flow Period, *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the sum, without duplication (in each case, for the Borrower Parties on a Consolidated basis), of, unless otherwise elected by the Borrowers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) repayments, prepayments, repurchases, redemptions and other cash payments made with respect to the principal of any Indebtedness that is secured by a Lien on the Collateral on a *pari passu* basis with the Initial Term Loans and the Initial Revolving Tranche (including principal representing capitalized interest) or the principal component of any Capitalized Lease Obligations of such Person or any of its Restricted Subsidiaries during such period (excluding (A) repayments and prepayments of Indebtedness deducted from the amount of Term Loans required to be prepaid pursuant to <u>clauses (1)</u>, <u>(2)</u> or <u>(4)</u> of <u>Section</u> <u>2.05(b)(i)(B)</u> and (B) voluntary and mandatory prepayments of Term Loans, but including all premium, make-whole or penalty payments paid in cash (to the extent such payments are not expensed during such period or are not deducted in calculating Consolidated Net Income and such payments are not otherwise prohibited under this Agreement) and all repayments with respect to revolving Indebtedness to the extent

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accompanied by a corresponding permanent reduction in commitments (excluding repayments of Indebtedness deducted from the amount of Term Loans required to be prepaid pursuant to <u>clauses (1)</u>, <u>(2)</u> or <u>(4)</u> of <u>Section</u> <u>2.05(b)(i)(B)</u>)); *provided* that, with respect to any mandatory prepayment of Indebtedness (other than, for the avoidance of doubt, Term Loans), such prepayments shall only be deducted pursuant to this <u>clause (i)</u> to the extent not deducted in the computation of net proceeds in respect of the asset disposition or condemnation giving rise thereto; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) payments made in cash or accrued by such Person or any of its Restricted Subsidiaries during such period in respect of Restricted Payments (excluding (A) Restricted Payments made or accrued pursuant to <u>clause (d)(i)</u> of the first paragraph of <u>Section</u> <u>7.05</u> and pursuant to <u>clauses (2)</u>, <u>(3)</u>, <u>(18)</u> and <u>(24)</u> of the second paragraph of <u>Section</u> <u>7.05</u> (other than such Restricted Payments made to pay or accrued in respect of interest expense for Qualified Holding Company Indebtedness or any other Indebtedness of any Holding Company or any Parent Holding Company and (B) repayments and prepayments of Indebtedness deducted from the amount of Term Loans required to be prepaid pursuant to <u>clauses (8)</u> or <u>(9)</u> of <u>Section</u> <u>2.05(b)(i)(B)</u>); *provided* that payments made in cash or accrued in respect of <u>clause (24)</u> will be included under this <u>clause (ii)</u> to the extent the applicable cash payments or accruals utilized for any Restricted Payment thereunder resulted in an increase to Consolidated Net Income during such Excess Cash Flow Period (and only to the extent of such increase) and (B) payments made in cash or accrued in respect of Restricted Payments reducing mandatory prepayments of the Term Loans pursuant to <u>clause (8)</u> of <u>Section</u> <u>2.05(b)(i)(B)</u>); *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) cash payments made by such Person or any of its Restricted Subsidiaries during such period in respect of Taxes (including distributions to a Holding Company or any Parent Holding Company or other direct or indirect equity owner of a Holding Company in respect of Taxes), to the extent such payments exceed the amount of tax expense deducted in calculating such Consolidated Net Income, and (B) cash payments that such Person or any of its Restricted Subsidiaries will be required to make in respect of Taxes (including distributions to a Holding Company or any Parent Holding Company in respect of Taxes) (as determined in good faith by the Borrower Representative) within 180 days after the end of such period; *provided* that amounts described in this <u>clause (B)</u> will not reduce Excess Cash Flow in subsequent periods, and, to the extent not paid, will increase Excess Cash Flow in the subsequent period; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) (A) cash payments made by such Person or any of its Restricted Subsidiaries during such period in respect of Investments (including, without limitation, any acquisitions and acquisitions of intellectual property) (other than any of the foregoing reducing mandatory prepayments of the Term Loans pursuant to <u>Section</u> <u>2.05(b)(i)(B)(6)</u>) and (B) cash payments that such Person or any Restricted Subsidiaries has committed to make or is required to make or plans to make in respect of Restricted Payments, including Investments (including, without limitation, any acquisitions and acquisitions of intellectual property) or capital expenditures planned to be consummated or made, in each case, during the period of four consecutive fiscal quarters of the Borrowers following the end of such fiscal year (other than any of the foregoing reducing mandatory prepayments of the Term Loans pursuant to <u>Section</u> <u>2.05(b)(i)(B)(7)</u> or <u>(9)</u>); *provided* that amounts described in <u>clause (B)</u> will not reduce Excess Cash Flow in subsequent periods, and, to the extent not paid, will increase Excess Cash Flow in the subsequent period; *minus*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all cash payments and other cash expenditures made by such Person or any of its Restricted Subsidiaries during such period (other than capital expenditures reducing mandatory prepayments of the Term Loans pursuant to <u>Section</u> <u>2.05(b)(i)(B)(5)</u>) (A) with respect to items that were excluded in the calculation of such Consolidated Net Income pursuant to <u>clauses (a)</u> through <u>(y)</u> of the definition of "Consolidated Net Income" or (B) that were not expensed during such period in accordance with GAAP; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) (A) all non-cash credits or gains included in calculating such Consolidated Net Income (including insured or indemnified losses referred to in <u>clauses (r)</u> and <u>(s)</u> of the definition of "Consolidated Net Income" to the extent not reimbursed in cash during such period) and (B) the amount, if any, that, in the determination of Consolidated Net Income for such Excess Cash Flow Period, has been included in respect of income or gain from any Disposition outside of the ordinary course of business (including Dispositions constituting covered losses or taking of assets); *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) an amount equal to the sum of (A) the increase in the Working Capital of such Person during such period (measured as the excess, if any, of Working Capital at the end of such Excess Cash Flow Period *minus* Working Capital at the beginning of such Excess Cash Flow Period), if any, *plus* (B) the increase in long-term accounts receivable of such Person and its Restricted Subsidiaries, if any; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) cash payments made in satisfaction of noncurrent liabilities (excluding payments of Indebtedness for borrowed money) not made directly or indirectly using proceeds, payments or any other amounts available from events or circumstances that were not included in determining Consolidated Net Income during such period; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) to the extent not deducted in arriving at Consolidated Net Income, cash fees, expenses and purchase price adjustments incurred in connection with the Transactions, any acquisition consummated before or after the Closing Date or any Permitted Investment, Equity Issuance or debt issuance, dispositions, repayment of indebtedness, refinancing transactions (including any amendments) (whether or not consummated) and any Restricted Payment made to pay any of the foregoing incurred by any Holding Company (other than those reducing mandatory prepayments of the Term Loans pursuant to <u>Section</u> <u>2.05(b)(i)(B)(6)</u>); *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) the amount of cash payments made in respect of pensions and other postemployment benefits in such period to the extent not deducted in arriving at such Consolidated Net Income; *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) cash payments made by such Person or any of its Restricted Subsidiaries during such period in respect of items for which an accrual or reserve was established in a prior period, in each case to the extent such payments are not expensed during such period or are not deducted in calculating Consolidated Net Income; *plus*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) all non-cash charges, losses and expenses (including, without limitation, taxes) of such Person or any of its Restricted Subsidiaries that were deducted in calculating such Consolidated Net Income (*provided*, in each case, that if any non-cash charge represents an accrual or reserve for cash items in any future period, the cash payment in respect thereof in such future period shall be subtracted from Excess Cash Flow in such future period); *minus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) cash expenditures in respect of Swap Obligations during such period to the extent not deducted in arriving at such Consolidated Net Income; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) an amount equal to the sum of (A) the decrease in Working Capital of such Person during such period (measured as the excess, if any, of Working Capital at the beginning of such Excess Cash Flow Period *minus* Working Capital at the end of such Excess Cash Flow Period), if any, *plus* (B) the decrease in long-term accounts receivable of such Person and its Restricted Subsidiaries, if any (other than any such decreases contemplated by <u>clauses (A)</u> and <u>(B)</u> of this <u>clause (xiv)</u> that are (x) directly attributable to acquisitions and/or dispositions of a Person or business unit by the Borrower Parties during such period, (y) as a result of the reclassification of items from short-term to long-term or vice versa or (z) the application of recapitalization or purchase accounting); *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) all amounts referred to in <u>clauses (b)(i)</u>, <u>(b)(ii)</u> and <u>(b)(iv)</u> above to the extent funded with the proceeds of the issuance or the incurrence of Indebtedness (other than proceeds of revolving loans) and the sale or issuance of Equity Interests.

"**Excess Cash Flow Period**" means any fiscal year of the Borrowers, commencing with the fiscal year ending on December 31, 2026.

"**Exchange Act**" means the U.S. Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder.

"**Exchange Agent**" means (a) the Administrative Agent or (b) any other financial institution or advisor employed by the Borrowers (whether or not an Affiliate of the Administrative Agent), after consultation with the Administrative Agent, to act as an arranger in connection with any Permitted Debt Exchange pursuant to <u>Section</u> <u>2.20</u>; *provided* that the Borrower Representative shall not designate the Administrative Agent as the Exchange Agent without the written consent of the Administrative Agent (it being understood that the Administrative Agent shall be under no obligation to agree to act as the Exchange Agent); *provided*, *further*, that neither a Borrower nor any of its Affiliates may act as the Exchange Agent.

"**Exchange Rate**" means on any day with respect to any currency other than Dollars, the rate at which such currency may be exchanged into Dollars in the London foreign exchange market at or about 11:00 a.m. London time (or New York City time, as applicable) on a particular day as displayed by ICE Data Services as the "ask price", or as displayed on such other information service which publishes that rate of exchange from time to time in place of ICE Data Services (or if such service ceases to be available, the equivalent of such amount in Dollars as determined by reference to such other publicly available service

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for displaying exchange rates as may be agreed upon by the Administrative Agent and the Borrower Representative, or, in the absence of such agreement, such Exchange Rate shall instead be the arithmetic average of the spot rates of exchange of the Administrative Agent in the market where its foreign currency exchange operations in respect of such currency are then being conducted), at or about 10:00 a.m. (New York City time) on such date for the purchase of Dollars for delivery two Business Days later.

"**Excluded Accounts**" means (1) payroll, healthcare and other employee wage and benefit accounts, (2) tax accounts, including, without limitation, sales tax accounts, (3) escrow, defeasance and redemption accounts, (4) fiduciary or trust accounts, (5) cash collateral accounts subject to Permitted Liens, (6) disbursement accounts and (7) the funds or other property held in or maintained for such purposes in any such account described in <u>clauses (1)</u> through <u>(6)</u>.

"**Excluded Contributions**" means the Net Cash Proceeds and Cash Equivalents, or the Fair Market Value of other assets, received by a Borrower after the Closing Date from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) contributions to its common equity capital, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the sale of Capital Stock (other than Excluded Equity) of a Borrower, in each case designated as Excluded Contributions or that are utilized to make a Restricted Payment pursuant to <u>clause (2)</u> of the second paragraph of <u>Section</u> <u>7.05</u>. Excluded Contributions will be excluded from the calculation set forth in <u>clause (c)</u> of the first paragraph of <u>Section</u> <u>7.05</u>.

"**Excluded Equity**" means (i) Disqualified Stock, (ii) any Equity Interests issued or sold to a Restricted Subsidiary or any employee stock ownership plan or trust established a Holding Company or any of their Subsidiaries or a direct or indirect parent of a Holding Company (to the extent such employee stock ownership plan or trust has been funded by any Holding Company or any Subsidiary or a direct or indirect parent of a Holding Company), and (iii) any Equity Interest that has already been used or designated (x) as (or the proceeds of which have been used or designated as) Designated Preferred Stock, an Excluded Contribution or Refunding Capital Stock, or (y) to increase the amount available under <u>clause (5)(a)</u> of the second paragraph under <u>Section</u> <u>7.05</u> or <u>clause (14)</u> of the definition of "Permitted Investments" or is proceeds of Indebtedness referred to in <u>clause (14)(b)</u> of the second paragraph in <u>Section</u> <u>7.05</u>.

"**Excluded Information**" has the meaning specified in <u>Section</u> <u>10.07(j)</u>.

"**Excluded Property**" means, with respect to any Loan Party or any direct or indirect Subsidiary of such Loan Party, (a) any fee-owned real property and any real property leasehold or subleasehold interests and the last day of any term of any lease of real property, (b) motor vehicles, airplanes and other assets or goods subject to certificates of title to the extent a Lien thereon cannot be perfected by filing a UCC financing statement, (c) goods, chattel paper, investment property, documents of title, instruments, money, intangibles and other assets to the extent a security interest in such goods, chattel paper,

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investment property, documents of title, instruments, money, intangibles and other assets would result in adverse tax consequences that are not de minimis to a Holding Company or the Borrower Parties or any of their direct or indirect equity owners (including, without limitation, as a result of any law or regulation in any applicable jurisdiction similar to Section 956 of the Code), or material adverse regulatory consequences, in each case, as reasonably determined in good faith by the Borrower Representative, (d) any goods, chattel paper, investment property, documents of title, instruments, money, intangibles and other assets, in each case, of or in which pledges or security interests in favor of the Collateral Agent are prohibited by applicable Law (including any requirement to obtain the consent of any Governmental Authority or third person, unless such consent has been obtained) or by any contract binding on such goods, chattel paper, investment property, documents of title, instruments, money, intangibles and other assets at the time of its acquisition and not entered into in contemplation thereof, or would result in material adverse accounting or regulatory consequences, as reasonably determined by the Borrower Representative; *provided* that (i) any such limitation described in this <u>clause (d)</u> on the security interests granted under the Collateral Documents shall only apply to the extent that any such prohibition could not be rendered ineffective pursuant to the UCC or any other applicable Law or principles of equity and shall not apply (where the UCC is applicable) to any proceeds or receivables thereof, the assignment of which is expressly deemed effective under the UCC notwithstanding such prohibition and (ii) in the event of the termination or elimination of any such prohibition contained in any applicable Law, a security interest in such goods, chattel paper, investment property, documents of title, instruments, money, intangibles and other assets shall be automatically and simultaneously granted under the applicable Collateral Documents and shall be included as Collateral, (e) any governmental licenses (but not the proceeds thereof) or state, provincial or local franchises, charters and authorizations, to the extent security interests in favor of the Collateral Agent in such licenses, franchises, charters or authorizations are prohibited or restricted thereby; *provided* that (i) any such limitation described in this <u>clause (e)</u> on the security interests granted shall only apply to the extent that any such prohibition or restriction could not be rendered ineffective pursuant to the Uniform Commercial Code of any applicable jurisdiction or any other applicable Law or principles of equity and shall not apply (where the UCC is applicable) to any proceeds or receivables thereof, the assignment of which is expressly deemed effective under the UCC notwithstanding such prohibition and (ii) in the event of the termination or elimination of any such prohibition or restriction contained in any applicable license, franchise, charter or authorization, a security interest in such licenses, franchises, charters or authorizations shall be automatically and simultaneously granted under the applicable Collateral Documents and such licenses, franchises, charters or authorizations shall be included as Collateral, (f) Equity Interests in (A) any Person (other than the Borrowers and Wholly Owned Restricted Subsidiaries of the Borrowers) to the extent and for so long as the pledge thereof in favor of the Collateral Agent is not permitted by the terms of such Person's joint venture agreement or other applicable Organization Documents; *provided* that such prohibition exists on the Closing Date or at the time such Equity Interests are acquired (so long as such prohibition did not arise in contemplation of the Closing Date or such acquisition), (B) any not-for-profit Subsidiary, (C) any captive insurance Subsidiary or any Subsidiary thereof, (D) any special purpose securitization vehicle (or similar entity), including any Receivables Subsidiary, (E) any Unrestricted

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Subsidiary, (F) any Person which is acquired after the date hereof to the extent and for so long as such Equity Interests are pledged in respect of Acquired Indebtedness and such pledge constitutes a Permitted Lien and (G) subject to <u>clause (o)</u> below, any Person that is an Excluded Subsidiary pursuant to <u>clause (c)</u> or <u>(e)</u> of the definition of "Excluded Subsidiary", (g) any lease, license or other agreement or any goods or other property, in each case pursuant to arrangements permitted under this Agreement, to the extent that a grant of a security interest therein would violate or invalidate such lease, license, capital lease or agreement or purchase money arrangement or create a right of termination in favor of any other party thereto (other than a Loan Party or their Wholly Owned Subsidiaries), in each case, except to the extent such prohibition is unenforceable after giving effect to the applicable anti-assignment provisions of the Uniform Commercial Code of any applicable jurisdiction, other than proceeds and receivables thereof, the assignment of which is expressly deemed effective under the Uniform Commercial Code of any applicable jurisdiction notwithstanding such prohibition, (h) "intent-to-use" trademark applications prior to the filing of a "Statement of Use" or "Amendment to Allege Use", (i) any goods, intangibles or other assets sold pursuant to a Qualified Receivables Factoring or Qualified Receivables Financing or other factoring or receivables arrangement permitted hereunder, (j) any goods, chattel paper, investment property, documents of title, instruments, money, intangibles or other assets of (including Equity Interests held by) (A) any Controlled Non-U.S. Subsidiary or any direct or indirect subsidiary of a Controlled Non-U.S. Subsidiary, (B) any FSHCO or any direct or indirect subsidiary of a FSHCO, (C) any Unrestricted Subsidiary, (D) any not-for- profit Subsidiary, (E) any captive insurance Subsidiary or any Subsidiary thereof, (F) any special purpose securitization vehicle (or similar entity), including any Receivables Subsidiary or (G) any Immaterial Subsidiary, (k) Margin Stock, (l) cash to secure letter of credit reimbursement obligations to the extent such letters of credit are permitted by this Agreement (excluding Cash Collateral securing L/C Obligations under this Agreement), (m) Excluded Accounts, (n) any commercial tort claim, (o) Voting Stock (including voting instruments treated as equity for U.S. federal income Tax purposes) in excess of 65.0% of the Voting Stock (including voting instruments treated as equity for U.S. federal income Tax purposes) of any first-tier Controlled Non-U.S. Subsidiary or of any first-tier FSHCO, (p) Equity Interests of or any other instruments issued by any non-first tier Controlled Non-U.S. Subsidiary or any non-first tier FSHCO, (q) in the case of Equity Interests issued to a non-U.S. Loan Party, any asset that would constitute "Excluded Equity Interests" pursuant to the Agreed Security Principles, or (r) with respect to non-U.S. Loan Parties, any asset that would constitute "Excluded Property" pursuant to the Agreed Security Principles. Other goods, chattel paper, investment property, documents of title, instruments, money, intangibles and other assets shall be deemed to be "Excluded Property" if the Administrative Agent and the Borrower Representative agree in writing that the cost or other consequences of obtaining or perfecting a security interest in such goods, chattel paper, investment property, documents of title, instruments, money, intangibles and other assets is excessive in relation to either the value of such goods, chattel paper, investment property, documents of title, instruments, money, intangibles and other assets as Collateral or to the benefit of the Lenders of the security afforded thereby. Notwithstanding anything herein or the Collateral Documents to the contrary, Excluded Property shall not include any Proceeds (as defined in the UCC), substitutions or replacements of any Excluded Property (unless such Proceeds,

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substitutions or replacements would otherwise constitute Excluded Property referred to above).

"**Excluded Subsidiary**" means any direct or indirect Subsidiary of a Borrower that is (a) [reserved], (b) an Unrestricted Subsidiary, (c) not a Wholly Owned Restricted Subsidiary of the Borrowers, (d) an Immaterial Subsidiary, (e) any FSHCO or Controlled Non-U.S. Subsidiary (or any direct or indirect Subsidiary of a FSHCO or Controlled Non-U.S. Subsidiary), (f) established or created pursuant to <u>clause (14)(g)</u> of the second paragraph of <u>Section</u> <u>7.05</u> and meeting the requirements of the proviso thereto; *provided* that such Subsidiary shall only be an Excluded Subsidiary for the period immediately prior to such acquisition, (g) a Non-U.S. Subsidiary, (h) a Subsidiary that is prohibited by applicable Law from guaranteeing the Facilities, or which would require governmental (including regulatory) consent, approval, license or authorization to provide a guarantee unless, such consent, approval, license or authorization has been received, (i) a Subsidiary that is prohibited from guaranteeing the Facilities by any Contractual Obligation in existence on the Closing Date (but not entered into in contemplation thereof) and for so long as any such Contractual Obligation exists (or, in the case of any newly-acquired Subsidiary, in existence at the time of acquisition thereof but not entered into in contemplation thereof and for so long as any such Contractual Obligation exists), (j) a Subsidiary with respect to which a guarantee by it of the Facilities would result in adverse tax consequences that are not de minimis to a Holding Company or the Borrower Parties (including, without limitation, as a result of any law or regulation in any applicable jurisdiction similar to Section 956 of the Code), or material adverse regulatory consequences, in each case, as determined in good faith by the Borrower Representative, (k) any Receivables Subsidiary, (l) not-for-profit subsidiaries, (m) [reserved], (n) Subsidiaries that are special purpose entities, (o) captive insurance Subsidiaries or any Subsidiary thereof and (o) any other Subsidiary with respect to which, in the reasonable judgment of the Administrative Agent and the Borrower Representative, the cost or other consequences of guaranteeing the Facilities would be excessive in view of the benefits to be obtained by the Lenders therefrom; *provided* that if a Subsidiary executes the Subsidiary Guaranty as a "Subsidiary Guarantor," then it shall not constitute an "Excluded Subsidiary" (unless released from its obligations under the Subsidiary Guaranty, as a "Subsidiary Guarantor" in accordance with the terms hereof and thereof); *provided*, *further*, that no Subsidiary of a Borrower shall be an Excluded Subsidiary if such Subsidiary is a guarantor with respect to any Refinancing Notes or any Incremental Equivalent Debt, in each case, with an aggregate outstanding principal amount in excess of $10,000,000. Notwithstanding anything herein to the contrary, (x) none of the Holding Companies, the Borrowers or any of their respective Restricted Subsidiaries shall transfer any Material Intellectual Property to any Excluded Subsidiary (*provided* that, for the avoidance of doubt, this sentence shall not restrict the Holding Companies, any Borrower or any of their respective Restricted Subsidiaries from licensing intellectual property to the extent otherwise permitted under this Agreement, in each case other than on an exclusive basis) and no Excluded Subsidiary shall own (or have an exclusive license to) any Material Intellectual Property, (y) no Borrower nor Holding Company may be an Excluded Subsidiary and (z) to the extent a Subsidiary has become an Elected Loan Party, for the avoidance of doubt and notwithstanding anything else to the contrary in any Loan Document, such Elected Loan Party and, to the extent incorporated in the United States, any Applicable Jurisdiction or

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the jurisdiction of its Elected Loan Party parent, each of the Elected Loan Party's direct or indirect Subsidiaries, shall not be an Excluded Subsidiary under <u>clauses (e)(i)</u> and <u>(g)(i)</u> above.

"**Excluded Swap Obligation**" means, with respect to any Guarantor, (a) any Swap Obligation if, and to the extent that, all or a portion of the Guarantee of such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Swap Obligation (or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation, or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) (i) by virtue of such Guarantor's failure to constitute an "eligible contract participant," as defined in the Commodity Exchange Act and the regulations thereunder (determined after giving effect to any applicable keepwell, support, or other agreement for the benefit of such Guarantor), at the time the guarantee of (or grant of such security interest by, as applicable) such Guarantor becomes or would become effective with respect to such Swap Obligation or (ii) in the case of a Swap Obligation that is subject to a clearing requirement pursuant to section 2(h) of the Commodity Exchange Act, because such Guarantor is a "financial entity," as defined in section 2(h)(7)(C) the Commodity Exchange Act, at the time the guarantee of (or grant of such security interest by, as applicable) such Guarantor becomes or would become effective with respect to such Swap Obligation or (b) any other Swap Obligation designated as an "Excluded Swap Obligation" of such Guarantor as specified in any agreement between the relevant Loan Parties and Hedge Bank applicable to such Swap Obligation.

"**Excluded Taxes**" means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient: (a) Taxes imposed on or measured by net income, profits or capital (however denominated), franchise Taxes and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, being resident in, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, any U.S. federal withholding Taxes imposed pursuant to a Law in effect on the date on which such Lender acquires an interest in a Loan or Commitment (other than any Lender acquiring an interest in a Loan or Commitment pursuant to a request by any Loan Party under <u>Section</u> <u>3.08</u>) or changes its lending office, except in each case to the extent that, pursuant to <u>Section</u> <u>3.01</u>, additional amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changes its lending office, (c) Taxes attributable to such Recipient's failure to comply with <u>Section</u> <u>3.01(h)</u> and (d) any Taxes imposed under FATCA.

"**Executive Order**" means Executive Order No. 13224 of September 23, 2001, entitled Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)).

"**Existing Credit Agreements**" has the meaning specified in the Preliminary Statements of this Agreement.

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"**Existing Letters of Credit**" means each letter of credit issued prior to the Closing Date, as in effect on the Closing Date and listed on Schedule 1.01(c).

"**Existing Loans**" has the meaning specified in <u>Section</u> <u>2.19(a)</u>.

"**Existing Revolving Tranche**" has the meaning specified in <u>Section</u> <u>2.19(a)</u>.

"**Existing Term Loans**" has the meaning specified in <u>Section</u> <u>2.19(a)</u>.

"**Existing Term Tranche**" has the meaning specified in <u>Section</u> <u>2.19(a)</u>.

"**Existing Tranche**" has the meaning specified in <u>Section</u> <u>2.19(a)</u>.

"**Export Controls**" means all laws, rules and regulations of or relating to U.S. export controls, including the International Traffic in Arms Regulations and Export Administration Regulations.

"**Extendable Bridge Loans/Interim Debt**" means customary "bridge" loans, escrow or similar arrangements which by their terms will be automatically converted into loans or other Indebtedness that have, or extended such that they have, a scheduled maturity date later than Initial Term Loans then-in effect.

"**Extended Loans**" has the meaning specified in <u>Section</u> <u>2.19(a)</u>.

"**Extended Loans Agent**" has the meaning specified in <u>Section</u> <u>2.19(a)</u>.

"**Extended Revolving Commitments**" has the meaning specified in <u>Section</u> <u>2.19(a)</u>.

"**Extended Revolving Tranche**" has the meaning specified in <u>Section</u> <u>2.19(a)</u>.

"**Extended Term Loans**" has the meaning specified in <u>Section</u> <u>2.19(a)</u>.

"**Extended Term Tranche**" has the meaning specified in <u>Section</u> <u>2.19(a)</u>.

"**Extended Tranche**" has the meaning specified in <u>Section</u> <u>2.19(a)</u>.

"**Extending Lender**" has the meaning specified in <u>Section</u> <u>2.19(b)</u>.

"**Extension**" has the meaning specified in <u>Section</u> <u>2.19(b)</u>.

"**Extension Amendment**" has the meaning specified in <u>Section</u> <u>2.19(c)</u>.

"**Extension Date**" has the meaning specified in <u>Section</u> <u>2.19(d)</u>.

"**Extension Election**" has the meaning specified in <u>Section</u> <u>2.19(b)</u>.

"**Extension Request**" has the meaning specified in <u>Section</u> <u>2.19(a)</u>.

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"**Facility**" or "**Facilities**" means the Term Facilities, any Revolving Credit Facility or the Letter of Credit Sublimit, as the context may require.

"**Factoring Transaction**" means any transaction or series of transactions that may be entered into by any Borrower Party pursuant to which any Borrower Party may sell, convey, assign or otherwise transfer Receivables Assets (which may include a backup or precautionary grant of security interest in such Receivables Assets so sold, conveyed, assigned or otherwise transferred or purported to be so sold, conveyed, assigned or otherwise transferred) to any Person that is not a Restricted Subsidiary; *provided* that any such person that is a Subsidiary meets the qualifications in <u>clauses (1)</u> through <u>(3)</u> of the definition of "Receivables Subsidiary".

"**Fair Market Value**" means, with respect to any asset or property, the price that could be negotiated in an arm's-length, free market transaction, for cash, between a willing seller and a willing and able buyer, neither of whom is under undue pressure or compulsion to complete the transaction (as determined in good faith by the senior management or the Board of Directors of a Borrower, a Holding Company or any Parent Holding Company, whose determination will be conclusive for all purposes under the Loan Documents).

"**FATCA**" means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version to the extent it is substantively comparable and not materially more onerous to comply with), any current or future Treasury Regulations or official administrative interpretations thereof, any agreements entered into pursuant to current Section 1471(b)(1) of the Code (or any amended or successor version described above), any intergovernmental agreement among Governmental Authorities implementing the foregoing and any fiscal or regulatory legislation, rules or practices adopted pursuant to any such intergovernmental agreement, treaty or convention and applicable official implementing guidance with respect to any of the foregoing.

"**Federal Funds Rate**" means, for any day, the rate per annum calculated by the NYFRB based on such day's federal funds transactions by depositary institutions, as determined in such manner as the NYFRB shall set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as the effective federal funds rate, *provided* that if the Federal Funds Rate as so determined would be less than zero, such rate shall be deemed to zero for the purposes of this Agreement.

"**Fee Letter**" means the Fee Letter, dated as of January 6, 2025, by and among Citigroup Global Markets Inc. and the Borrowers.

"**Financial Covenant**" has the meaning specified in <u>Section</u> <u>7.08</u>.

"**Financial Covenant Event of Default**" has the meaning specified in <u>Section</u> <u>8.01(b)</u>.

"**First Lien Specified Debt**" means Indebtedness in respect of any Term Facility (including, for the avoidance of doubt, any New Term Facility), any Revolving Credit Facility (including, for the avoidance of doubt, any New Revolving Facility), any other

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loans incurred pursuant to any Loan Document, any Incremental Equivalent Debt, any Ratio Debt, any Permitted Debt Exchange Notes, any Ratio Acquisitions Debt, any Specified Refinancing Debt, any Refinancing Notes, any Refinancing Indebtedness and/or any Permitted Refinancing of any of the foregoing, in each case, that is secured by a Lien on the Collateral on a *pari passu* basis with the Initial Term Loans and the Initial Revolving Tranche.

"**Fitch**" means Fitch Ratings, Inc. or any successor to the rating agency business thereof.

"**fixed baskets**" has the meaning specified in <u>Section</u> <u>1.02(k)</u>.

"**Floor**" means a rate of interest equal to 0.50% per annum.

"**Foreign Benefit Event**" means, with respect to any Foreign Plan, (a) the existence of unfunded liabilities in excess of the amount permitted under any applicable Law, or in excess of the amount that would be permitted absent a waiver from a Governmental Authority, (b) the failure to make the required contributions or payments, under any applicable Law, on or before the due date for such contributions or payments, (c) the receipt of a notice by a Governmental Authority relating to the intention to terminate any such Foreign Plan or to appoint a trustee or similar official to administer any such Foreign Plan, or alleging the insolvency of any such Foreign Plan, (d) the incurrence of any liability by any Borrower Party under applicable Law on account of the complete or partial termination of such Foreign Plan or the complete or partial withdrawal of any participating employer therein or (e) the occurrence of any transaction that is prohibited under any applicable Law and that would reasonably be expected to result in the incurrence of any liability by any Borrower Party, or the imposition on any Borrower Party of, any fine, excise tax or penalty resulting from any noncompliance with any applicable Law.

"**Foreign Plan**" means any pension plan, benefit plan, fund (including any superannuation fund) or other similar program established, maintained or contributed to by a Loan Party primarily for the benefit of employees employed and residing outside the United States (other than plans, funds or other similar programs that are maintained exclusively by a Governmental Authority), and which plan is not subject to ERISA or the Code.

"**Four Quarter Consolidated EBITDA**" means as of any date of determination with respect to any Test Period, Consolidated EBITDA of the Borrower Parties on a Consolidated basis for such Test Period on a Pro Forma Basis; *provided*, that upon the consummation of a Permitted Core Business Disposition, Four Quarter Consolidated EBITDA shall in each case be calculated on a Pro Forma Basis to reflect the removal of Consolidated EBITDA (if any) attributable to the Core Business subject to such Permitted Core Business Disposition.

"**FRB**" means the Board of Governors of the Federal Reserve System of the United States.

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"**Fronting Exposure**" means, at any time there is a Defaulting Lender, with respect to an L/C Issuer, such Defaulting Lender's Pro Rata Share of the outstanding L/C Obligations (other than L/C Obligations as to which such Defaulting Lender's participation obligation has been reallocated to other Non-Defaulting Lenders or Cash Collateralized in accordance with the terms hereof), and with respect to the Swing Line Lenders, such Defaulting Lender's Pro Rata Share of the outstanding Obligations with respect to Swing Line Loans extended by the Swing Line Lenders other than such Obligations as to which such Defaulting Lender's participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof.

"**FSHCO**" means any direct or indirect Subsidiary of any Holding Company, substantially all of the assets of which consist of (a) Equity Interests and/or indebtedness in one or more Controlled Non-U.S. Subsidiaries and/or one or more other FSHCOs and (b) cash or Cash Equivalents.

"**Fund**" means any Person (other than a Natural Person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business.

"**GAAP**" means generally accepted accounting principles (which, unless specified otherwise by the Borrowers to the Administrative Agent, shall be a private company adoption) in the United States of America as in effect from time to time, including those set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as approved by a significant segment of the accounting profession (but excluding the policies, rules and regulations of the SEC applicable only to public companies). All ratios and computations based on GAAP contained in this Agreement shall be computed in conformity with GAAP.

"**Governmental Authority**" means the government of the United States of America or any other nation, or of any state or local, province, territory or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, administrative tribunal, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government, including any applicable supranational bodies (such as the European Union or the European Central Bank).

"**Granting Lender**" has the meaning specified in <u>Section</u> <u>10.07(g)</u>.

"**Guarantee**" means, as to any Person, without duplication, (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other monetary obligation payable or performable by another Person (the "**primary obligor**") in any manner, whether directly or indirectly, and including any Obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other monetary obligation, (ii) to purchase or lease property, securities or services for the purpose

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of assuring the obligee in respect of such Indebtedness or other monetary obligation of the payment or performance of such Indebtedness or other monetary obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other monetary obligation or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other monetary obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part) or (b) any Lien on any assets of such Person securing any Indebtedness or other monetary obligation of any other Person, whether or not such Indebtedness or other monetary obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien); *provided* that the term "**Guarantee**" shall not include endorsements for collection or deposit, in either case in the ordinary course of business, or customary or reasonable indemnity obligations in effect on the Closing Date, or entered into in connection with any acquisition or Disposition of assets permitted under this Agreement (other than such obligations with respect to Indebtedness). The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith. The term "**Guarantee**" as a verb has a corresponding meaning.

"**Guarantors**" means, collectively, the Holding Companies, the Borrowers and, as of the Closing Date, the Restricted Subsidiaries of the Borrowers listed on <u>Schedule 1</u> and each other Restricted Subsidiary of the Borrowers that executes and delivers a Guaranty or guaranty supplement pursuant to the Guaranty, <u>Section</u> <u>6.12</u> or <u>6.16</u>, unless any such Restricted Subsidiary of a Borrower has ceased to be a Guarantor pursuant to the terms hereof or such Guaranty. For the avoidance of doubt, other than an Elected Loan Party, no Controlled Non-U.S. Subsidiary or FSHCO (or direct or indirect Subsidiary of a Controlled Non-U.S. Subsidiary or FSHCO) shall be a Guarantor.

"**Guaranty**" means, collectively, the Holdings Guaranty and the Subsidiary Guaranty.

"**Hazardous Materials**" means all explosive or radioactive substances or wastes, contaminants, pollutants and hazardous or toxic substances, materials or wastes, including petroleum or petroleum distillates, asbestos or asbestos-containing materials, toxic mold, polychlorinated biphenyls, per- and polyfluoroalkyl substances, radon gas, infectious or medical wastes and all other substances, materials or wastes of any nature regulated pursuant to any Environmental Law.

"**Hedge Bank**" means any Person (a) that (i) at the time it enters into a Swap Contract, is an Arranger, Lender or an Agent or an Affiliate of an Arranger, Lender or an Agent, (ii) within 45 days after the time it enters into a Swap Contract, becomes an Arranger, Lender or an Agent or an Affiliate of an Arranger, Lender or an Agent, (iii) in the case of any Person party to a Swap Contract in effect as of the Closing Date, either is an Arranger, Lender or an Agent or an Affiliate of an Arranger, Lender or an Agent as of

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the Closing Date or becomes an Arranger, Lender or an Agent or an Affiliate of an Arranger, Lender within 45 days after the Closing Date or (b) (x) that has been designated by the Borrower Representative in writing to the Administrative Agent as a "Hedge Bank" for purposes of this Agreement and the other Loan Documents and (y) shall have appointed the Administrative Agent and the Collateral Agent as its agents under the applicable Loan Documents and agreed to be bound by the provisions of Article IX as if it were a Lender pursuant to a writing substantially in the form of <u>Exhibit M</u> or in such other form or manner as is reasonably satisfactory to the Borrower Representative and the Administrative Agent.

"**Holding Companies**" means (i) on or after the Closing Date, the Initial Holding Companies or (ii) after the Closing Date, any other Person ("**New Holdings**") that is a direct or indirect parent of a Holding Company (or the previous New Holdings, as the case may be) (**"Previous Holdings**"); *provided* that (a) New Holdings shall directly (or indirectly, as the case may be) own 100.0% of the Equity Interests of the applicable Borrower of such Previous Holdings, (b) New Holdings shall expressly assume all the obligations of such Previous Holdings under this Agreement and the other Loan Documents pursuant to a supplement hereto or thereto in form and substance reasonably satisfactory to the Administrative Agent and the Borrower Representative, (c) if reasonably requested by the Administrative Agent, a customary opinion of counsel covering matters reasonably requested by the Administrative Agent shall be delivered on behalf of the Borrowers to the Administrative Agent, (d) (i) substantially all of the other assets of such Previous Holdings shall be contributed or otherwise transferred, directly or indirectly, to New Holdings and pledged to secure the Obligations and (ii) all Capital Stock and all other assets of the applicable Borrower and the Subsidiary Guarantors that constituted Collateral prior to such substitution shall remain Collateral and shall remain subject to Liens thereon securing the Obligations that are valid and enforceable to the same extent as such Liens were valid and enforceable prior to such substitution, (e) (i) no Event of Default shall occur and be continuing at the time of such substitution and such substitution shall not result in any Event of Default and (ii) such substitution shall not result in any adverse tax consequences in the aggregate, to the Lenders or, individually, to the Administrative Agent, (f) the Administrative Agent shall have received at least five Business Days' prior written notice (or such shorter period as the Administrative Agent may agree in its reasonable discretion) of the proposed transaction and such Previous Holdings, New Holdings and the Borrowers shall promptly and in any event at least three Business Days' prior to the consummation of the transaction provide all information any Lender or any Agent may reasonably request to satisfy its "know your customer", Beneficial Ownership Certification and other similar requirements necessary for such Person to comply with regulatory requirements with respect to the proposed successor New Holdings, (g) New Holdings shall be an entity organized or existing under the laws of (i) the United States, any state thereof or the District of Columbia, (ii) Canada, (iii) the Cayman Islands, (iv) Bermuda, (v) Luxembourg, (vi) The Netherlands, (vii) England and Wales or (viii) any other jurisdiction permitted by the Administrative Agent in its reasonable discretion, (h) if reasonably requested by the Administrative Agent, (i) the Loan Parties shall execute and deliver amendments, supplements and other modifications to all Loan Documents, instruments and agreements executed in connection therewith or additional Collateral Documents necessary to perfect and protect the liens and security interests in the Collateral of New Holdings, in each case in form and substance substantially consistent with the instruments and

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agreements previously delivered in respect thereof or reasonably satisfactory to the Administrative Agent; *provided* that, with the consent of the Administrative Agent (such consent not to be unreasonably withheld, conditioned, delayed or denied), such amendments, supplements, modifications, instruments and/or agreements may be executed and delivered following such substitution and shall not constitute a condition to the effectiveness of New Holdings' substitution for Previous Holdings and (ii) the Loan Parties shall execute and deliver any documentation reasonably necessary to comply with the local law requirements of the applicable jurisdiction and (i) the Borrower Representative shall deliver a certificate of a Responsible Officer with respect to the satisfaction of the conditions set forth in <u>clauses (a)</u>, <u>(d)</u>, <u>(e)(i)</u> and <u>(g)</u> of this definition; *provided*, *further*, that if each of the foregoing is satisfied, Previous Holdings shall be automatically released of all its obligations as a "Holding Company" under the Loan Documents and any reference to the "Holding Companies" in the Loan Documents shall include New Holdings. Notwithstanding the foregoing, if a Holding Company or any of its Subsidiaries is subject to a Permitted Core Business Disposition, such Person shall cease to be a Holding Company for all purposes of this Agreement and the other Loan Documents.

"**Holdings Guaranty**" means the Holdings Guaranty made by the Holding Companies in favor of the Administrative Agent on behalf of the Secured Parties, substantially in the form of <u>Exhibit E-1</u>.

"**Honor Date**" has the meaning specified in <u>Section</u> <u>2.03(d)(i)</u>.

"**Immaterial Subsidiary**" means any Restricted Subsidiary of a Borrower that, for any Test Period, does not have (a) assets (when Consolidated with the assets of all other Immaterial Subsidiaries, prior to giving effect to pro forma adjustments and after eliminating goodwill and intercompany obligations) in excess of 7.50% of Consolidated Total Assets or (b) Consolidated EBITDA (when Consolidated with the Consolidated EBITDA of all other Immaterial Subsidiaries, prior to giving effect to pro forma adjustments and after eliminating goodwill and intercompany obligations) for such Test Period in excess of 7.50% of the Four Quarter Consolidated EBITDA of the Borrower Parties for such period; *<u>provided</u>*, that at all times prior to the first delivery of financial statements pursuant to <u>Section</u> <u>6.01(a)</u> or <u>(b)</u>, this definition shall be applied based on the period of four (4) consecutive Fiscal Quarters most recently ended for which financial statements were delivered pursuant to <u>Section</u> <u>4.01</u> or are otherwise internally available.

"**Increase Effective Date**" has the meaning specified in <u>Section</u> <u>2.14(c)</u>.

"**Incremental Amount**" has the meaning specified in <u>Section</u> <u>2.14(a)</u>.

"**Incremental Arranger**" has the meaning specified in <u>Section</u> <u>2.14(a)</u>.

"**Incremental Delayed Draw Term Loan Commitment**" shall have the meaning provided in the definition of "Maximum Leverage Requirement".

"**Incremental Delayed Draw Term Loan Commitment/Revolver Incurrence Election Provision**" shall have the meaning provided in the definition of "Maximum Leverage Requirement".

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"**Incremental Equivalent Debt**" has the meaning specified in <u>Section</u> <u>2.15(a)</u>.

"**Incremental Equivalent Debt Arranger**" has the meaning specified in <u>Section</u> <u>2.15(a)</u>.

"**Incremental Equivalent Debt Documents**" means, collectively, the indentures, credit agreements, facilities agreements or other similar agreements pursuant to which any Incremental Equivalent Debt is incurred, together with all instruments and other agreements in connection therewith, as amended, supplemented or otherwise modified from time to time in accordance with the terms thereof, but only to the extent permitted under the terms of the Loan Documents.

"**Incur**" or "**incur**" means, with respect to any Indebtedness, Capital Stock or Lien, to issue, assume, guarantee, incur or otherwise become liable for such Indebtedness, Capital Stock or Lien, as applicable; *provided* that any Indebtedness, Capital Stock or Lien of a Person existing at the time such Person becomes a Subsidiary (whether by merger, amalgamation, consolidation, acquisition or otherwise) shall be deemed to be Incurred by such Person at the time it becomes a Subsidiary. The term "**Incurrence**" has a corresponding meaning.

"**incurrence-based baskets**" has the meaning specified in <u>Section</u> <u>1.02(k)</u>.

"**Indebtedness**" means, with respect to any Person, without duplication:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the principal of any indebtedness of such Person, whether or not contingent, (i) in respect of borrowed money, (ii) evidenced by bonds, notes, debentures or similar instruments or letters of credit or bankers' acceptances (or, without duplication, reimbursement agreements in respect thereof), (iii) representing the deferred and unpaid purchase price of any property, (iv) in respect of Capitalized Lease Obligations or (v) representing any Swap Contracts, in each case, if and to the extent that any of the foregoing Indebtedness (other than letters of credit and Swap Contracts) would appear as a liability on a balance sheet (excluding the footnotes thereto) of such Person prepared in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the extent not otherwise included, any guarantee by such Person of the Indebtedness of another Person (other than by endorsement of negotiable instruments for collection in the ordinary course of business); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to the extent not otherwise included, Indebtedness of another Person secured by a Lien on any asset owned by such Person (whether or not such Indebtedness is assumed by such Person); *provided*, *however*, that the amount of such Indebtedness will be the lesser of: (i) the Fair Market Value of such asset on the date such Indebtedness was Incurred or, at the option of such Person, at such date of determination, and (ii) the amount of such Indebtedness of such other Person.

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The term "Indebtedness" (x) shall not include any lease, concession or license of property (or guarantee thereof) that would be considered an operating lease under GAAP as in effect prior to the issuance by the Financial Accounting Standards Board on February 25, 2016 of an ASU, (y) shall not include any prepayments of deposits received from clients or customers in the ordinary course of business or consistent with past practices, or obligations under any license, permit or other approval (or guarantees given in respect of such obligations) Incurred prior to the Closing Date or in the ordinary course of business or consistent with past practices and (z) shall not include Indebtedness of any of the Holding Companies or any Parent Holding Company appearing on the Consolidated balance sheet of the Borrower Parties solely by reason of push-down accounting.

Notwithstanding the above provisions, in no event shall the following constitute Indebtedness:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Contingent Obligations Incurred in the ordinary course of business or consistent with past practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) obligations under or in respect of Receivables Financings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any balance that constitutes a trade payable, accrued expense or similar obligation to a trade creditor, in each case Incurred in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) intercompany liabilities that would be eliminated on the Consolidated balance sheet of the Borrower Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) prepaid or deferred revenue arising in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Cash Management Services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) in connection with the purchase by any Borrower Party of any business, any post-closing payment adjustments to which the seller may become entitled to the extent such payment is determined by a final closing balance sheet or such payment depends on the performance of such business after the closing; *provided*, *however*, that, at the time of closing, the amount of any such payment is not determinable and, to the extent such payment thereafter becomes fixed and determined, the amount is paid in a timely manner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) obligations, to the extent such obligations would otherwise constitute Indebtedness, under any agreement that has been defeased or satisfied and discharged pursuant to the terms of such agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) for the avoidance of doubt, any obligations in respect of workers' compensation claims, early retirement or termination obligations, deferred compensatory or employee or director equity plans, pension fund obligations or contributions or similar claims, obligations or contributions or social security or wage taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Capital Stock (other than Disqualified Stock of the Borrower Parties and Preferred Stock of a Non-Loan Party Subsidiary);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) indebtedness that constitutes "Indebtedness" merely by virtue of a pledge of an Investment (without any accompanying guaranty) in an Unrestricted Subsidiary; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) any obligations under any lease resulting from a Sale/Leaseback Transaction.

"**Indemnified Liabilities**" has the meaning specified in <u>Section</u> <u>10.05</u>.

"**Indemnified Taxes**" means (a) all Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Loan Party under any Loan Document and (b) to the extent not otherwise described in <u>clause (a)</u>, all Other Taxes.

"**Indemnitees**" has the meaning specified in <u>Section</u> <u>10.05</u>.

"**Independent Financial Advisor**" means an accounting, appraisal or investment banking firm or consultant, in each case of nationally recognized standing that is, in the good faith determination of the Borrower Representative, qualified to perform the task for which it has been engaged or otherwise reasonably acceptable to the Administrative Agent.

"**Information**" has the meaning specified in <u>Section</u> <u>10.08</u>.

"**Initial Borrower**" has the meaning assigned in the introductory paragraph of this Agreement.

"**Initial Default**" has the meaning specified in <u>Section</u> <u>8.01</u>.

"**Initial Holding Company**" has the meaning assigned in the introductory paragraph of this Agreement.

"**Initial Revolving Credit Loans**" means the Loans made pursuant to the Initial Revolving Tranche.

"**Initial Revolving Tranche**" means the Revolving Tranche established pursuant to <u>Section</u> <u>2.01(b)</u> on the Closing Date.

"**Initial Term Borrowing**" means a borrowing consisting of simultaneous Initial Term Loans of the same Type and, in the case of SOFR Loans, having the same Interest Period made by each of the Initial Term Lenders pursuant to <u>Section</u> <u>2.01(a)</u>, in each case, on the Closing Date.

"**Initial Term Commitment**" means, as to each Initial Term Lender, its obligation to make Initial Term Loans to the Borrowers pursuant to <u>Section</u> <u>2.01(a)</u> in an aggregate principal amount not to exceed the amount set forth opposite such Initial Term Lender's name on <u>Schedule 2.01</u> under the caption "Initial Term Commitment" as such amount may be adjusted from time to time in accordance with this Agreement. The initial aggregate amount of the Initial Term Commitments is $2,650,000,000.

"**Initial Term Lender**" means (a) at any time on or prior to the Closing Date, any Lender that has an Initial Term Commitment at such time and (b) at any time after the Closing Date, any Lender that holds Initial Term Loans at such time.

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"**Initial Term Loans**" has the meaning specified in <u>Section</u> <u>2.01(a)</u>.

"**Intercompany Subordination Agreement**" means an intercompany subordination agreement, in substantially the form of <u>Exhibit H</u> hereto, or otherwise in form and substance reasonably satisfactory to the Administrative Agent.

"**Interest Payment Date**" means, (a) with respect to any Base Rate Loan (other than a Swing Line Loan), the last day of each March, June, September and December and the Maturity Date, (b) with respect to any Alternative Currency Daily Rate, (1) each date that is on the numerically corresponding day in each calendar month that is one month after the Borrowing of such Loan (or, if there is no such numerically corresponding day in such month, then the last day of such month) and (2) the Maturity Date, (c) with respect to any Term Borrowing or Alternative Currency Term Rate, the last day of each Interest Period applicable to the Borrowing and, in the case of a Term Borrowing with an Interest Period of more than three months' duration, each day prior to the last day of such Interest Period that occurs at intervals of three months' duration after the first day of such Interest Period, and the Maturity Date and (d) with respect to any Swing Line Loan, the day that such Loan is required to be repaid and the Maturity Date.

"**Interest Period**" means, as to each SOFR Loan or Alternative Currency Term Rate Loan, the period commencing on the date such SOFR Loan or Alternative Currency Term Rate Loan, as applicable, is disbursed or converted to or continued as a SOFR Loan or Alternative Currency Term Rate Loan, as applicable, and ending on the date one, three or six months thereafter (in each case, with respect to Alternative Currency Term Rate Loans, to the extent applicable), or to the extent consented to by the Administrative Agent and all Appropriate Lenders, 12 months thereafter (or such shorter interest period as may be agreed to by all Lenders of the applicable Tranche) as the Borrower Representative may elect in a Committed Loan Notice; *provided* that:

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no Interest Period shall extend beyond the scheduled Maturity Date of the Facility under which such Loan was made.

"**Investment**" means, with respect to any Person, (i) all investments by such Person in other Persons (including Affiliates) in the form of (a) loans (including guarantees of Indebtedness), (b) advances or capital contributions (excluding accounts receivable, credit card and debit card receivables, trade credit and advances or other payments made to customers, dealers, suppliers and distributors and payroll, commission, travel and similar

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advances to officers, directors, managers, employees consultants and independent contractors made in the ordinary course of business), and (c) purchases or other acquisitions for consideration of Indebtedness, Equity Interests or other securities issued by any such other Person and (ii) investments that are required by GAAP to be classified on the balance sheet of the Borrower Parties in the same manner as the other investments included in <u>clause (i)</u> of this definition to the extent such transactions involve the transfer of cash or other property; *provided* that Investments shall not include, in the case of the Borrower Parties, intercompany loans, advances, or Indebtedness having a term not exceeding 364 days (inclusive of any roll-over or extensions of terms) and made in the ordinary course of business. If any Borrower Party sells or otherwise disposes of any Equity Interests of any Restricted Subsidiary, or any Restricted Subsidiary issues any Equity Interests, in either case, such that, after giving effect to any such sale or disposition, such Person is no longer a Subsidiary of a Borrower, the applicable Borrower shall be deemed to have made an Investment on the date of any such sale or other disposition equal to the Fair Market Value of the Equity Interests of and all other Investments in such Restricted Subsidiary retained. In no event shall a guarantee of an operating lease of any Borrower Party be deemed an Investment. For purposes of the definition of "Unrestricted Subsidiary" and <u>Section</u> <u>7.05</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) "Investments" shall include the portion (proportionate to such Borrower's equity interest in such Subsidiary) of the Fair Market Value of the net assets of a Subsidiary of a Borrower at the time that such Subsidiary is designated an Unrestricted Subsidiary; *provided*, *however*, that upon a redesignation of such Subsidiary as a Restricted Subsidiary, the applicable Borrower shall be deemed to continue to have a permanent "Investment" in an Unrestricted Subsidiary in an amount (if positive) equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Borrowers' "Investment" in such Subsidiary at the time of such redesignation less

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the portion (proportionate to the Borrowers' equity interest in such Subsidiary) of the Fair Market Value of the net assets of such Subsidiary at the time of such redesignation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) any property transferred to or from an Unrestricted Subsidiary shall be valued at its Fair Market Value at the time of such transfer.

The amount of any Investment outstanding at any time (including for purposes of calculating the amount of any Investment outstanding at any time under any provision of <u>Section</u> <u>7.05</u> and otherwise determining compliance with such covenant) shall be the original cost of such Investment (determined, in the case of any Investment made with assets of any Borrower Party, based on the Fair Market Value of the assets invested and without taking into account subsequent increases or decreases in value), reduced by any dividend, distribution, interest payment, return of capital, repayment or other amount received in cash by any Borrower Party in respect of such Investment and shall be net of any Investment by such Person in any Borrower Party.

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"**Investment Grade Rating**" means a rating equal to or higher than Baa3 (or the equivalent) by Moody's, BBB- (or the equivalent) by S&P and BBB- (or the equivalent) by Fitch, or an equivalent rating by any other Rating Agency.

"**Investment Grade Securities**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) securities issued or directly guaranteed or insured by the U.S. government or any agency or instrumentality thereof (other than Cash Equivalents),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) securities that have an Investment Grade Rating, but excluding any debt securities or instruments constituting loans or advances among the Borrowers and their Subsidiaries,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) investments in any fund that invests at least 95.0% of its assets in investments of the type described in <u>clauses (1)</u> and <u>(2)</u> above and <u>clause (4)</u> below which fund may also hold immaterial amounts of cash pending investment and/or distribution, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) corresponding instruments in countries other than the United States customarily utilized for high quality investments and in each case with maturities not exceeding two years from the date of acquisition.

"**IP Rights**" has the meaning specified in <u>Section</u> <u>5.16</u>.

"**IRS**" means the United States Internal Revenue Service.

"**ISDA CDS Definitions**" has the meaning specified in <u>Section</u> <u>10.01(j)</u>.

"**ISDA Definitions**" means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time by the International Swaps and Derivatives Association, Inc. or such successor thereto.

"**ISP**" means, with respect to any Letter of Credit, the "International Standby Practices 1998" published by the Institute of International Banking Law & Practice, Inc. (or such later version thereof as may be in effect at the time of issuance and to which such Letter of Credit is subject).

"**Issuer Documents**" means, with respect to any Letter of Credit, the Letter of Credit Application, and any other document, agreement and instrument entered into by the applicable L/C Issuer and a Borrower (or, if applicable, a Restricted Subsidiary) or in favor of such L/C Issuer and relating to such Letter of Credit.

"**joint venture**" means any joint venture or similar arrangement (in each case, regardless of legal formation), including but not limited to collaboration arrangements, profit sharing arrangements or other contractual arrangements.

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"**Joint Venture Subsidiary**" means any Subsidiary that is not wholly-owned, directly or indirectly, by a Borrower and the business and management thereof is jointly controlled by the holders of the Equity Interests in such Subsidiary pursuant to customary joint venture arrangements; *provided* that such Subsidiary does not have and is not liable in respect of any Indebtedness other than Indebtedness of such Subsidiary that is not recourse to any Borrower Party (other than such Subsidiary).

"**Judgment Currency**" has the meaning specified in <u>Section</u> <u>10.23</u>.

"**Junior Financing**" has the meaning specified in <u>clause (3)</u> of the first paragraph of <u>Section</u> <u>7.05</u>.

"**Junior Financing Documentation**" means any documentation governing any Junior Financing.

"**Junior Lien Specified Debt**" means Indebtedness in respect of any Term Facility (including, for the avoidance of doubt, any New Term Facility), any Revolving Credit Facility (including, for the avoidance of doubt, any New Revolving Facility), any other loans incurred pursuant to any Loan Document, any Incremental Equivalent Debt, any Ratio Debt, any Permitted Debt Exchange Notes, any Ratio Acquisitions Debt, any Specified Refinancing Debt, any Refinancing Notes, any Refinancing Indebtedness and/or any Permitted Refinancing of any of the foregoing, in each case, that is secured by a Lien on the Collateral on a junior basis to the Initial Term Loans.

"**JV Distribution**" means, at any time, the aggregate amount of all cash dividends or distributions received by any Borrower Party as a return on an Investment in a Permitted Joint Venture during the period from the Closing Date through the end of the fiscal quarter most recently ended immediately prior to such date for which financial statements are internally available; *provided* that no Borrower Party is required to reinvest such dividends or distributions in the Permitted Joint Venture.

"**Latest Maturity Date**" means, at any date of determination, the latest maturity or expiration date applicable to any Term Loan Tranche or Revolving Tranche at such time under this Agreement, in each case as extended in accordance with this Agreement from time to time.

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

"**L/C Advance**" means, with respect to each Revolving Credit Lender, such Lender's funding of its participation in any L/C Borrowing in accordance with its applicable Pro Rata Share.

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"**L/C Borrowing**" means an extension of credit resulting from a drawing under any Letter of Credit which has not been reimbursed by the Borrowers on the date required under <u>Section</u> <u>2.03(d)(i)</u> or refinanced as a Revolving Credit Borrowing.

"**L/C Credit Extension**" means, with respect to any Letter of Credit, the issuance thereof or extension of the expiry date thereof, or the renewal or increase of the amount thereof.

"**L/C Issuer**" means (a) each of the L/C Issuers identified on <u>Schedule 1.01(f)</u> in their capacity as an issuer of Letters of Credit hereunder (it being understood that (i) Jefferies Finance LLC, Bank of America, N.A., Barclays Bank PLC, Morgan Stanley Senior Funding, Inc., Macquarie Capital Funding LLC and Royal Bank of Canada shall not be obligated to issue any letters of credit hereunder other than standby letters of credit and (ii) no L/C Issuer shall be required to issue letters of credit in excess of its ratable share of the Letter of Credit Sublimit), and (b) any other Lender reasonably acceptable to the Borrower Representative and the Administrative Agent (which consent shall not be unreasonably withheld, delayed or conditioned) that agrees to issue Letters of Credit pursuant hereto, in each case in its capacity as an issuer of Letters of Credit hereunder, or any successor issuer of Letters of Credit hereunder, and in each case, applicable Affiliates; *provided* that any Revolving Credit Lender may provide bank guarantees as agreed in such Revolving Credit Lender's sole discretion. Jefferies Finance LLC will cause Letters of Credit to be issued by unaffiliated financial institutions and such Letters of Credit shall be treated as issued by Jefferies Finance LLC for all purposes under the Loan Documents.

"**L/C Obligations**" means, as at any date of determination, the aggregate amount available to be drawn under all outstanding Letters of Credit *plus* the aggregate of all Unreimbursed Amounts, including all L/C Borrowings. For purposes of computing the amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with <u>Section</u> <u>1.09</u>. For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but (a) any amount may still be drawn thereunder by reason of the operation of Rule 3.13 or Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be "outstanding" in the amount so remaining available to be drawn, or (b) any drawing was made thereunder on or before the last day permitted thereunder and such drawing has not been honored or refused by the applicable L/C Issuer, such Letter of Credit shall be deemed to be "outstanding" in the amount of such drawing.

"**Legal Reservations**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the principle that equitable remedies may be granted or refused at the discretion of a court, the limitation of enforcement by laws relating to insolvency, bankruptcy, liquidation, judicial management, reorganization, court schemes, moratoria, administration and other laws generally affecting the rights of creditors and similar principles or limitations under the laws of any applicable jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the time barring of claims under applicable limitation laws, the possibility that an undertaking to assume liability for or indemnify a person against non-payment of stamp duty may be void and defenses of set-off or counterclaim and similar principles or limitations under the laws of any applicable jurisdiction;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any general principles, reservations or qualifications, in each case as to matters of law as set out in any legal opinion delivered to the Administrative Agent in connection with any provision of any Loan Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the principle that any additional interest imposed under any relevant agreement may be held to be unenforceable on the grounds that it is a penalty and thus void;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the principle that in certain circumstances security granted by way of fixed charge may be characterized as a floating charge or that security purported to be constituted by way of an assignment may be recharacterized as a charge;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the principle that a court may not give effect to an indemnity for legal costs incurred by an unsuccessful litigant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the principle that the creation or purported creation of security over any contract or agreement which is subject to a prohibition against transfer, assignment or charging may be void, ineffective or invalid and may give rise to a breach entitling the contracting party to terminate or take any other action in relation to such contract or agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) provisions of a contract being invalid or unenforceable for reasons of oppression or undue influence; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) similar principles, rights and defenses under the laws of any relevant jurisdiction.

"**Lender**" has the meaning specified in the preamble to this Agreement and, as the context requires, includes each Swing Line Lender and each L/C Issuer.

"**Lending Office**" means, as to any Lender, the office or offices or branch of such Lender or any of its Affiliates described as such in such Lender's Administrative Questionnaire, or such other office or offices or as a Lender or any of its Affiliates may from time to time notify the Borrower Representative and the Administrative Agent.

"**Letter of Credit**" means the Existing Letters of Credit and any letter of credit issued, renewed, extended or amended hereunder. A Letter of Credit may be a standby, documentary, commercial or trade letter of credit, letter of guarantee, bank guarantee, bankers' acceptance, performance bond, surety bond or other similar instrument.

"**Letter of Credit Application**" means an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by the applicable L/C Issuer, together with a request for L/C Credit Extension, substantially in the form of <u>Exhibit A-2</u> hereto.

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**"Letter of Credit Commitment**" means, with respect to any L/C Issuer, the amount identified opposite such L/C Issuer's name on <u>Schedule 1.01(f)</u> as such L/C Issuer's Letter of Credit Commitment.

"**Letter of Credit Expiration Date**" means, subject to <u>Section</u> <u>2.03(a)(ii)(C)</u>, the day that is three Business Days prior to the scheduled Maturity Date then in effect for the Revolving Credit Facility (or, if such day is not a Business Day, the next preceding Business Day).

"**Letter of Credit Sublimit**" means an amount equal to $65,000,000 (or such higher amount as the Borrowers, the L/C Issuers and the Administrative Agent may agree from time to time). The Letter of Credit Sublimit is part of, and not in addition to, the Revolving Credit Facility.

"**Leverage Excess Proceeds**" has the meaning specified in <u>Section</u> <u>2.05(b)(ii)</u>.

"**Lien**" means, with respect to any asset, any mortgage, lien, pledge, hypothecation, charge, security interest, preference, priority or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law (including any conditional sale or other title retention agreement, any lease in the nature thereof, any option or other agreement to sell or give a security interest in and any filing of or agreement to give any financing statement under the Uniform Commercial Code (or equivalent or similar statutes) of any jurisdiction); *provided* that in no event shall an operating lease, an agreement to sell, or a non-exclusive license of IP Rights be deemed to constitute a Lien.

"**Limited Condition Transaction**" has the meaning specified in <u>Section</u> <u>1.02(i)</u>.

"**LLC Conversion**" means the conversion of any Restricted Subsidiary of a Borrower that is a U.S. Subsidiary from a corporation into a limited liability company.

"**LLC Division**" means the statutory division of any limited liability company into two or more limited liability companies pursuant to Section 18-217 of the Delaware Limited Liability Company Act or a comparable provision of any other Law.

"**Loan**" means an extension of credit by a Lender to one or more Borrowers under <u>Article II</u> in the form of a Term Loan, an Extended Term Loan, a Revolving Credit Loan, a Swing Line Loan, an Extended Revolving Commitment or a Specified Refinancing Revolving Loan.

"**Loan Documents**" means, collectively, (i) this Agreement, (ii) the Notes, (iii) each Guaranty, (iv) the Collateral Documents, (v) the Intercompany Subordination Agreement, (vi) any intercreditor agreement required to be entered into pursuant to the terms of this Agreement, (vii) any Refinancing Amendment, (viii) any agreement creating or perfecting rights in Cash Collateral pursuant to the provisions of <u>Section</u> <u>2.16</u> of this Agreement, (ix) any Co-Borrower Joinder Agreement and (x) any other document or agreement designated as such by the Borrowers and the Administrative Agent.

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"**Loan Parties**" means, collectively, the Holding Companies, the Borrowers and each other Guarantor.

"**LP Division**" means the statutory division of any limited partnership into two or more limited partnerships pursuant to Section 17-220 of the Delaware Limited Partnership Act or a comparable provision of any other Law.

"**LTM EBITDA**" has the meaning given to such term in the definition of "Test Period".

"**Majority Lenders**" of any Tranche means those Non-Defaulting Lenders which would constitute the Required Lenders under, and as defined in, this Agreement if all outstanding Obligations of the other Tranches under this Agreement were repaid in full and all Commitments with respect thereto were terminated.

"**Management Agreement**" means (i) each of the following, collectively, (a) Advisory Services Agreement dated as of November 19, 2020 by Hawkeye TopCo, LP and any of its Subsidiaries and the Sponsor, (b) Consulting Services Agreement dated as of November 19, 2020 by Hawkeye TopCo, LP and any of its Subsidiaries and the Sponsor, (c) Advisory Services Agreement, dated as of April 12, 2022, by and between Connector TopCo, LP and the Sponsor, (d) Consulting Services Agreement, dated as of April 12, 2022, by and between Connector TopCo, LP and the Sponsor, (e) Advisory Services Agreement dated as of July 25, 2019, by and among Arcline Engineered Polymer TopCo LP and the Sponsor, (f) Consulting Services Agreement dated as of July 25, 2019, by and among Arcline Engineered Polymer TopCo LP and the Sponsor, (g) Advisory Services Agreement dated on or after April 19, 2024 by Ovation Parent Holdings, Inc. and/or any of its Subsidiaries and the Sponsor and (h) Consulting Agreement dated as on or after April 19, 2024 by Ovation Parent Holdings, Inc. and/or any of its Subsidiaries and the Sponsor, in each case, as amended, restated, amended and restated, supplemented or otherwise modified from time to time on or prior to the Closing Date and (ii) those certain services agreements or monitoring agreements between any Holding Company and/or any of its Subsidiaries or any of their respective Affiliates, on the one hand, and the Sponsor, on the other hand, entered into after the Closing Date to the extent such advisory agreements or consulting agreements would result in the payment of management, monitoring, advisory or similar fees (but, for the avoidance of doubt, excluding out-of-pocket or reasonable expenses and indemnity amounts, which, in each case, shall not be limited or capped) in an amount paid per annum not to exceed the greater of (a) the greater of $23,000,000 and 5.00% of Four Quarter Consolidated EBITDA or (b) an amount otherwise reasonably acceptable to the Required Lenders, which amount shall be deemed to be reasonably acceptable to the Required Lenders if the Administrative Agent has not received written notice of objection to the proposed amount from Lenders comprising Required Lenders by the fifth (5th) Business Day after any such consent request has been posted to all Lenders (such greater amount from time to time, the "**Management Fee Cap**") and, in each case, as amended, restated, amended and restated, supplemented or otherwise modified from time to time, so long as such amendment, restatement, supplement or modification does not result in the management, monitoring, advisory or similar fees (but, for the avoidance of doubt, excluding out-of-pocket or reasonable expenses and indemnity amounts, which, in each case, shall not be limited or capped) paid per annum to exceed the Management Fee Cap.

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"**Management Fee Cap**" has the meaning assigned to such term in the definition of "Management Agreement".

"**Margin Stock**" has the meaning assigned to such term in Regulation U of the FRB as from time to time in effect.

"**Market Capitalization**" means an amount equal to (i) the total number of issued and outstanding shares of Equity Interests of the Borrowers (or any successor entity) or any direct or indirect parent of the Borrowers on the date of the declaration or making of the relevant Restricted Payment multiplied by (ii) the arithmetic mean of the closing prices per share of such Equity Interests for the 30 consecutive trading days immediately preceding the date of declaration or making of such Restricted Payment.

"**Material Adverse Effect**" means (i) a material adverse effect on the business, assets, property, liabilities (actual or contingent), financial condition or results of operations of the Borrower Parties, taken as a whole, (ii) a material adverse effect on the ability of the Loan Parties (taken as a whole) to perform their respective obligations under the Loan Documents or (iii) a material adverse effect on the rights or remedies of the Agents or the Lenders under the Loan Documents (taken as a whole) (other than, in the case of this <u>clause (iii)</u>, solely as a result of any action taken by the Agents or the Lenders (excluding any action against any Agent or Lender taken by the Holding Companies, the Borrowers, their respective Subsidiaries or their respective Affiliates)).

"**Material Intellectual Property**" means intellectual property that is necessary to the business of the Borrowers and their Restricted Subsidiaries, taken as a whole.

"**Material Subsidiary**" means any Restricted Subsidiary of the Borrowers constituting, or group of Restricted Subsidiaries of the Borrowers in the aggregate constituting (as if such Restricted Subsidiaries constituted a single Subsidiary), a "significant subsidiary" in accordance with Rule 1-02 under Regulation S-X.

"**Maturity Date**" means: (a) with respect to the Revolving Credit Facility, the earlier of (i) the fifth anniversary of the Closing Date and (ii) the date of termination in whole of the Revolving Credit Commitments pursuant to <u>Section</u> <u>2.06(a)</u> or <u>8.02</u>; and (b) with respect to the Initial Term Loans and Delayed Draw Term Loans, the earliest of (i) the seventh anniversary of the Closing Date, (ii) the date of termination in whole of the Initial Term Commitments pursuant to <u>Section</u> <u>2.06(a)</u> prior to any Initial Term Borrowing and (iii) the date that the Initial Term Loans are declared due and payable pursuant to <u>Section</u> <u>8.02</u>; *provided* that the reference to Maturity Date with respect to (x) Term Loans and Revolving Credit Commitments that are the subject of Extension pursuant to <u>Section</u> <u>2.19</u> and (y) Term Loans and Revolving Credit Commitments that are incurred pursuant to <u>Section</u> <u>2.14</u> or <u>2.18</u> shall, in each case, be the final maturity date as specified in the loan modification documentation, incremental documentation, or specified refinancing documentation, as applicable thereto.

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"**Maximum Leverage Requirement**" means, with respect to any request made in reliance on this definition for an increase in any Revolving Tranche or any Term Loan Tranche, for a New Revolving Facility, or for a New Term Facility or for the incurrence of Incremental Equivalent Debt and with respect to any Incurrence of Ratio Debt or Incurrence or assumption of Ratio Acquisitions Debt, the requirement that, on a Pro Forma Basis, after giving effect to the incurrence of any such increase, such new Facility, such Incremental Equivalent Debt, such Ratio Debt or such Ratio Acquisitions Debt (and, in each case, (x) after giving effect to any acquisition consummated concurrently therewith and all other appropriate pro forma adjustment events, (y) calculated in accordance with the Incremental Delayed Draw Term Loan Commitment/Revolver Incurrence Election Provision but without netting any portion of the cash proceeds of such Indebtedness then being incurred that are otherwise applied and (z) without giving effect to any concurrent or substantially simultaneous borrowing under any Revolving Credit Facility or incurrence under a fixed dollar Indebtedness basket otherwise permitted hereunder), (a) for any such Indebtedness that is secured by a Lien on the Collateral on a *pari passu* basis with the Initial Term Loans and the Initial Revolving Tranche, at the election of the Borrower Representative, either the Consolidated First Lien Net Leverage Ratio on a Pro Forma Basis as of the most recently ended Test Period does not exceed (i) 6.00:1.00, or (ii) if any such request is in relation to Indebtedness to be incurred in connection with a Permitted Acquisition or Investment (other than investments in cash or Cash Equivalents), the Consolidated First Lien Net Leverage Ratio immediately prior to the incurrence of such Indebtedness; (b) for any such Indebtedness that is secured by a Lien on the Collateral on a junior lien basis to the Initial Term Loans, the Consolidated Senior Secured Net Leverage Ratio on a Pro Forma Basis as of the most recently ended Test Period does not exceed, at the election of the Borrower Representative, either (i) 6.50:1.00 or (ii) if any such request is in relation to Indebtedness to be incurred in connection with a Permitted Acquisition or Investment (other than investments in cash or Cash Equivalents), the Consolidated Senior Secured Net Leverage Ratio immediately prior to the incurrence of such Indebtedness; or (c) for any such Indebtedness that is secured solely by assets not constituting Collateral or unsecured (the "**Non-Collateral Ratio Facility**"), at the election of the Borrower Representative, either (A) the Consolidated Total Net Leverage Ratio on a Pro Forma Basis as of the most recently ended Test Period does not exceed, at the election of the Borrower Representative, either (i) 7.00:1.00 or (ii) if any such request is in relation to Indebtedness to be incurred in connection with a Permitted Acquisition or Investment (other than investments in cash or Cash Equivalents), the Consolidated Total Net Leverage Ratio immediately prior to the incurrence of such Indebtedness, or (B) the Consolidated Interest Coverage Ratio on a Pro Forma Basis as of the most recently ended Test Period is not less than, at the election of the Borrower Representative, (i) 2.00:1.00 or (ii) if any such request is in relation to Indebtedness to be incurred in connection with an acquisition or similar Investment, the lesser of (I) 1.75:1.00 or (II) the Consolidated Interest Coverage Ratio immediately prior to the incurrence of such Indebtedness.

In the case of any New Term Facility, New Revolving Facility, increase in any existing Term Tranche or Revolving Tranche or for the incurrence of Incremental Equivalent Debt and with respect to any Incurrence of Ratio Debt or Incurrence or assumption of Ratio Acquisitions Debt established in the form of a delayed draw term loan commitment (each, an "**Incremental Delayed Draw Term Loan Commitment**") or a

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revolving facility, for purposes of determining capacity under, and compliance with the Maximum Leverage Requirement (including for purposes of incurring or establishing any such Incremental Delayed Draw Term Loan Commitment (and any associated loan when such Incremental Delayed Draw Term Loan Commitment is funded)), (A) in the case of a revolving facility, such revolving facility shall be deemed to be fully drawn at the time such revolving facility becomes effective (for the avoidance of doubt, in the case of this <u>clause (A)</u>, the actual drawing of such revolving facility shall be deemed not to be an additional incurrence of Indebtedness for purposes of this definition of Maximum Leverage Requirement) and, (B) in the case of an Incremental Delayed Draw Term Loan Commitment, at the election of the Borrower Representative, either (i) such Incremental Delayed Draw Term Loan Commitment shall be deemed to be fully drawn at the time such Incremental Delayed Draw Term Loan Commitment becomes effective (for the avoidance of doubt, in the case of this <u>clause (i)</u>, the actual drawing of such Incremental Delayed Draw Term Loan Commitment shall be deemed not to be an additional incurrence of Indebtedness for purposes of this definition of Maximum Leverage Requirement) or (B) such Incremental Delayed Draw Term Loan Commitment shall be incurred as and when the applicable Indebtedness under such Incremental Delayed Draw Term Loan Commitment is funded in accordance with the terms of such Incremental Delayed Draw Term Loan Commitment (for the avoidance of doubt, in the case of this <u>clause (ii)</u>, such New Term Facility or for the incurrence of Incremental Equivalent Debt and with respect to any Incurrence of Ratio Debt or Incurrence or assumption of Ratio Acquisitions Debt established in the form of an Incremental Delayed Draw Term Loan Commitment or revolving facility shall be deemed not to be drawn for purposes of determining the Maximum Leverage Requirement or any other incurrence-based baskets except to the extent of any actual drawing thereunder) (this paragraph, the "**Incremental Delayed Draw Term Loan Commitment/Revolver Incurrence Election Provision**").

"**Maximum Rate**" has the meaning specified in <u>Section</u> <u>10.10</u>.

"**MFN Provision**" has the meaning specified in <u>Section</u> <u>2.14(f)</u>.

"**Minimum Extension Condition**" has the meaning specified in <u>Section</u> <u>2.19(g)</u>.

"**Minimum Permitted Change of Control Equity Contribution**" has the meaning set forth in the definition of "Permitted Change of Control."

"**Minimum Tender Condition**" has the meaning specified in <u>Section</u> <u>2.20(b)</u>.

"**Moody's**" means Moody's Investors Service, Inc. or any successor to the rating agency business thereof.

"**Mortgage**" means, collectively, the deeds of trust, trust deeds and mortgages in respect of mortgaged properties made by the Loan Parties in favor or for the benefit of the Collateral Agent on behalf of the Lenders in form and substance reasonably satisfactory to the Administrative Agent, in each case as the same may be amended, amended and restated, extended, supplemented, substituted or otherwise modified from time to time.

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"**Multiemployer Plan**" means a "multiemployer plan" as defined in Section 4001(a)(3) of ERISA, to which any Loan Party or any ERISA Affiliate makes or is obligated to make contributions or has any liability or obligation to contribute to, whether fixed or contingent.

"**Natural Person**" means (a) any natural person or (b) a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of a natural person.

"**Net Cash Proceeds**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to the Disposition of any asset by any Borrower Party (other than any Disposition of any Receivables Assets in a Qualified Receivables Factoring or Qualified Receivables Financing) or any Casualty Event, the excess, if any, of (i) the sum of cash and Cash Equivalents received in connection with such Disposition or Casualty Event (including any cash or Cash Equivalents received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received and, with respect to any Casualty Event, any insurance proceeds or condemnation awards in respect of such Casualty Event received by or paid to or for the account of any Borrower Party and including any proceeds received as a result of unwinding any related Swap Contract in connection with any related transaction, but excluding proceeds of business interruption insurance) over (ii) the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the principal amount of any Indebtedness that is secured by a Lien on the asset subject to such Disposition or Casualty Event and that is required to be repaid in connection with such Disposition or Casualty Event (other than (x) Indebtedness under the Loan Documents and (y) if such asset constitutes Collateral, any Indebtedness secured by such asset with a Lien ranking *pari passu* with or junior to the Lien securing the Obligations, together with any applicable premiums, penalties, interest or breakage costs),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the fees and out-of-pocket expenses incurred by any Borrower Party in connection with such Disposition or Casualty Event (including attorneys' fees, accountants' fees, investment banking fees, survey costs, title insurance premiums, and related search and recording charges, transfer taxes, deed or mortgage recording taxes, other customary expenses and brokerage, consultant and other customary fees actually incurred in connection therewith),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) all taxes paid or reasonably estimated to be payable in connection with such Disposition or Casualty Event (or any tax distribution made as a result of or in connection with such Disposition or Casualty Event and including any such Taxes paid or payable by the direct and indirect owners of the Borrower Party) and any repatriation costs associated with receipt or distribution by the applicable taxpayer of such proceeds,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any costs associated with unwinding any related Swap Contract in connection with such transaction,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any reserve for adjustment in respect of (x) the sale price of the property that is the subject of such Disposition established in accordance with GAAP and (y) any liabilities associated with such property and retained by any Borrower Party after such Disposition, including pension and other postemployment benefit liabilities and liabilities related to environmental matters or against any indemnification obligations associated with such transaction, and it being understood that "Net Cash Proceeds" shall include, without limitation, any cash or Cash Equivalents (i) received upon the Disposition of any non-cash consideration received by any Borrower Party in any such Disposition and (ii) upon the reversal (without the satisfaction of any applicable liabilities in cash in a corresponding amount) of any reserve described in this <u>clause (E)</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) in the case of any Disposition or Casualty Event by a Restricted Subsidiary that is a joint venture or other Restricted Subsidiary that is not a Wholly Owned Restricted Subsidiary, the pro rata portion of the Net Cash Proceeds thereof (calculated without regard to this <u>clause (F)</u>) attributable to the minority interests and not available for distribution to or for the account of a Holding Company or a Wholly Owned Restricted Subsidiary as a result thereof, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) any amounts used to repay or return any customer deposits required to be repaid or returned as a result of any Disposition or Casualty Event; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to the incurrence or issuance of any Indebtedness by any Borrower Party, the excess, if any, of (i) the sum of the cash received in connection with such incurrence or issuance and in connection with unwinding any related Swap Contract in connection therewith over (ii) the investment banking fees, underwriting discounts and commissions, premiums, expenses, accrued interest and fees related thereto, taxes reasonably estimated to be payable (or any tax distribution made as a result of or in connection with the issuance of such Indebtedness and including any such Taxes paid or payable by the direct and indirect owners of the Borrower Party) and other out-of-pocket expenses and other customary expenses, incurred by any Borrower Party in connection with such incurrence or issuance and any costs associated with unwinding any related Swap Contract in connection therewith and, in the case of Indebtedness of any Non-U.S. Subsidiary, deductions in respect of taxes that are or would otherwise be payable in cash if such funds were repatriated to the United States.

"**Net Short Lender**" has the meaning specified in <u>Section</u> <u>10.01</u>.

"**New Contracts**" has the meaning specified in <u>clause (p)</u> of the definition of "Consolidated EBITDA".

"**New Equity Contribution**" has the meaning set forth in the definition of "Permitted Change of Control".

"**New Holdings**" has the meaning specified in the definition of "Holding Companies".

"**New Loan Commitments**" has the meaning specified in <u>Section</u> <u>2.14(a)</u>.

"**New Revolving Commitment**" has the meaning specified in <u>Section</u> <u>2.14(a)</u>.

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"**New Revolving Facility**" has the meaning specified in <u>Section</u> <u>2.14(a)</u>.

"**New Revolving Loan**" has the meaning specified in <u>Section</u> <u>2.14(a)</u>.

"**New Sponsor**" has the meaning set forth in the definition of "Permitted Change of Control".

"**New Term Commitment**" has the meaning specified in <u>Section</u> <u>2.14(a)</u>.

"**New Term Facility**" has the meaning specified in <u>Section</u> <u>2.14(a)</u>.

"**New Term Loan**" has the meaning specified in <u>Section</u> <u>2.14(a)</u>.

"**Non-Consenting Lender**" has the meaning specified in <u>Section</u> <u>3.08(c)</u>.

"**Non-Debt Fund Affiliate**" means any Affiliate of the Sponsor other than (i) any Holding Company, the Borrowers or any of their respective subsidiaries, (ii) any Debt Fund Affiliates and (iii) any natural person.

"**Non-Defaulting Lender**" means any Lender other than a Defaulting Lender.

"**Non-Extending Lender**" has the meaning specified in <u>Section</u> <u>2.19(e)</u>.

"**Non-Loan Party Subsidiary**" means any Restricted Subsidiary of a Borrower that is not a Borrower or Guarantor.

"**Non-U.S. Lender**" means a lender that is not a U.S. Person.

"**Non-U.S. Subsidiary**" means any direct or indirect Subsidiary of a Borrower that is not a U.S. Subsidiary.

"**Note**" means a Term Note, a Revolving Credit Note or a Swing Line Note, as the context may require.

"**NPL**" means the National Priorities List under CERCLA.

"**NYFRB**" means the Federal Reserve Bank of New York.

"**Obligations**" means all advances to, and debts, liabilities, obligations, covenants and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan, Letter of Credit, Secured Cash Management Agreement, Secured Hedge Agreement, or Secured Third Party Letter of Credit, in each case whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Loan Party of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding; *provided* that (a) obligations of any Loan Party under any Secured Cash Management Agreement, Secured Hedge Agreement or Secured Third Party Letter of Credit shall be secured and guaranteed

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pursuant to the Collateral Documents only to the extent that, and for so long as, the other Obligations are so secured and guaranteed, (b) any release of Collateral or Guarantors effected in the manner permitted by this Agreement shall not require the consent of holders of obligations under Secured Hedge Agreements, Secured Cash Management Agreements, or Secured Third Party Letters of Credit and (c) the Obligations with respect to any Guarantor shall not include Excluded Swap Obligations of such Guarantor. Without limiting the generality of the foregoing, the Obligations of the Loan Parties under the Loan Documents include (a) the obligation to pay principal, interest, Letter of Credit commissions, charges, expenses, fees, indemnities and other amounts payable by any Loan Party under any Loan Document and (b) the obligation of any Loan Party to reimburse any amount in respect of any of the foregoing pursuant to <u>Section</u> <u>10.04</u>.

"**OFAC**" shall have the meaning specified in the definition of Sanctions Laws and Regulations.

"**OID**" means original issue discount.

"**Organization Documents**" means (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction), (b) with respect to any limited liability company, the certificate or articles of formation or organization and operating or limited liability company agreement (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction) and (c) with respect to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture, trust or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity.

"**Other Connection Taxes**" means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising solely from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).

"**Other LC**" has the meaning specified in <u>Section</u> <u>2.03(c)(v)</u>.

"**Other Specified Debt**" means Indebtedness in respect of any Term Facility (including, for the avoidance of doubt, any New Term Facility), any Revolving Credit Facility (including, for the avoidance of doubt, any New Revolving Facility), any other loans incurred pursuant to any Loan Document, any Incremental Equivalent Debt, any Ratio Debt, any Permitted Debt Exchange Notes, any Ratio Acquisitions Debt, any Specified Refinancing Debt, any Refinancing Notes, any Refinancing Indebtedness and/or any Permitted Refinancing of any of the foregoing, in each case, that is secured by a Lien on assets not constituting Collateral or unsecured, in each case, so long as such Indebtedness is permitted to be secured by a Lien on assets not constituting Collateral or unsecured under this Agreement.

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"**Other Taxes**" means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes that are imposed with respect to an assignment (other than an assignment made pursuant to <u>Section</u> <u>3.08</u>).

"**Outstanding Amount**" means: (a) with respect to the Term Loans, Revolving Credit Loans and Specified Refinancing Revolving Loans on any date, the aggregate outstanding principal Dollar Amount thereof after giving effect to any Borrowings and prepayments or repayments of the Term Loans, Revolving Credit Loans (including any refinancing of outstanding unpaid drawings under Letters of Credit or L/C Credit Extensions as a Revolving Credit Borrowing) and Specified Refinancing Revolving Loans, as the case may be, occurring on such date; and (b) with respect to any L/C Obligations on any date, the Dollar Amount of such L/C Obligations on such date after giving effect to any L/C Credit Extension occurring on such date and any other changes in the aggregate Dollar Amount of the L/C Obligations as of such date, including as a result of any reimbursements of outstanding unpaid drawings under any Letters of Credit (including any refinancing of outstanding unpaid drawings under Letters of Credit or L/C Credit Extensions as a Revolving Credit Borrowing) or any reductions in the maximum Dollar Amount available for drawing under Letters of Credit taking effect on such date.

"**Parent Holding Company**" means any direct or indirect parent entity of a Holding Company which holds directly or indirectly 100.0% of the Equity Interest of a Holding Company and which does not hold Capital Stock in any other Person (except for any other Parent Holding Company).

"**Pari Passu Intercreditor Agreement**" means any pari passu intercreditor agreement substantially in the form of <u>Exhibit G-2</u>.

"**Participant**" has the meaning specified in <u>Section</u> <u>10.07(d)</u>.

"**Participant Register**" has the meaning specified in <u>Section</u> <u>10.07(m)</u>.

"**Participating Member State**" means each state as described in any EMU Legislation.

"**PATRIOT Act**" has the meaning specified in <u>Section</u> <u>10.22</u>.

"**Payment Block**" means any of the circumstances described in <u>Section</u> <u>2.05(b)(viii)</u> and <u>(ix)</u>.

"**PBGC**" means the Pension Benefit Guaranty Corporation.

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"**Pension Funding Rules**" means the rules of the Code and ERISA regarding minimum required contributions (including any installment payment thereof) to Plans and set forth in Section 412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA.

"**Perfection Exceptions**" means that no Loan Party shall be required to (i) enter into control agreements, lockbox or similar arrangements with respect to, or otherwise perfect any security interest by "control" (or similar arrangements) over commodities accounts, securities accounts, deposit accounts, futures accounts, other bank accounts, cash and cash equivalents and accounts related to the clearing, payment processing and similar operations of the Borrower Parties, (ii) perfect the security interest in the following other than by the filing of (a) "all asset" filings pursuant to the UCC in the office of the secretary of state (or similar central filing office) of the relevant state(s), filings of comparable "all present and after acquired personal property" financing statements under the UCC (or, in each case, the equivalent offices to the extent required by the Agreed Security Principles); (b) filings in (A) the United States Patent and Trademark Office with respect to any U.S. registered patents and trademarks and (B) the United States Copyright Office or the Library of Congress with respect to material copyright registrations, in the case of each of (A) and (B), constituting Collateral (or, in each case, the equivalent offices to the extent required by the Agreed Security Principles); and (c) delivery to the Administrative Agent or Collateral Agent (or a bailee or other agent of the Administrative Agent or Collateral Agent) to be held in its possession of all Collateral consisting of (A) certificates representing pledged equity (other than Excluded Property), and (B) promissory notes and other instruments constituting Collateral, in each case, in the manner provided in the Loan Documents; *provided* that promissory notes and instruments having an outstanding aggregate principal amount not exceeding $50,000,000 need not be delivered to the Collateral Agent, (iii) send notices to account debtors or other contractual third-parties unless an Event of Default has not been cured or waived and is continuing and the Administrative Agent has exercised its acceleration rights pursuant to <u>Section</u> <u>8.02</u> of this Agreement, (iv) except to the extent required by the Agreed Security Principles, enter into any (x) security documents to be governed by the law of any jurisdiction in which assets are located other than the laws of the United States, any state thereof or the District of Columbia or (y) other foreign-law filings, consents or corporate or organizational action, including with respect to any intellectual property registered in any non-U.S. jurisdiction and any share pledges other than in the U.S., (v) deliver landlord waivers, estoppels, Mortgages or collateral access letters, (vi) enter into any source code escrow arrangement or be obligated to register intellectual property or (vii) take any action with respect to perfecting a Lien with respect to letters of credit, letter of credit rights, chattel paper or assets subject to a certificate of title or similar statute (except, in each case, where perfecting a Lien over such assets can be obtained by filing a UCC-1 financing statement).

"**Periodic Term CORRA Determination Day**" has the meaning assigned to such term in the definition of "Term CORRA".

"**Periodic Term SOFR Determination Day**" has the meaning specified in the definition of "Term SOFR".

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"**Permitted Acquisition**" shall have the meaning provided in <u>clause (4)</u> of the definition of "Permitted Investments."

"**Permitted Asset Swap**" means the purchase and sale or exchange of Related Business Assets or a combination of Related Business Assets and cash or Cash Equivalents between the Holding Companies or any of their Restricted Subsidiaries and another Person; *provided* that such purchase and sale or exchange must occur within 365 days of each other and any cash or Cash Equivalents received must be applied in accordance with <u>Section</u> <u>7.04</u>.

"**Permitted Change of Control**" means any transaction or series of related transactions that would otherwise constitute a Change of Control; *provided* that, subject to <u>Section</u> <u>1.02(i)</u>, (a) the definitive documentation with respect thereto is executed on or prior to the third anniversary of the Closing Date, (b) the Consolidated Total Net Leverage Ratio on a Pro Forma Basis (including any Indebtedness incurred in connection with such transaction) as of the last day of the most recently ended Test Period does not exceed 6.75:1.00 and the Consolidated First Lien Net Leverage Ratio on a Pro Forma Basis (including any indebtedness incurred in connection with such transaction) as of the last day of the most recently ended Test Period does not exceed 6.25:1.00, (c) immediately prior to and after giving effect to such transaction or series of transactions, no Event of Default shall have occurred and be continuing, (d) the applicable buyer (the "**New Sponsor**") is either (x) a financial sponsor or other financial institution with commitment capital and assets under management of at least $1,000,000,000 in the aggregate, or (y) a strategic buyer in one or more of the Core Businesses, (e) the New Sponsor (together with its controlled affiliates and any funds managed or advised by buyer and its and their respective controlled affiliates) and/or any other investors, which may include members of management and/or existing direct or indirect equityholders of the Borrowers, shall have made, or substantially concurrently therewith, shall make, cash equity contributions, directly or indirectly, to the buyer's acquisition vehicle on or prior to the Permitted Change of Control Effective Date in an aggregate amount (the "**New Equity Contribution**"), when combined with the fair market value of any Equity Interests of members of management and other existing direct or indirect equityholders of the Borrower that will be retained, rolled over or converted (the "**Rollover Equity Contribution**" and, together with the New Equity Contribution, the "**Permitted Change of Control Equity Contribution**"), equal to not less than 30% (the "**Minimum Permitted Change of Control Equity Contribution**") of the sum of the Permitted Change of Control Equity Contribution and the aggregate outstanding principal amount of Consolidated Funded Indebtedness of the Borrower Parties as of immediately after the Permitted Change of Control Effective Date; *provided*, that the New Equity Contribution shall be greater than the Rollover Equity Contribution as of immediately after the Permitted Change of Control Effective Date, (f) there shall only be one Permitted Change of Control Effective Date; (g) (x) at least ten (10) Business Days prior to the Permitted Change of Control Effective Date (or such later date as may be agreed by the Administrative Agent in its reasonable discretion), the Borrowers shall have delivered notice to the Administrative Agent of such Permitted Change of Control and of the identity of the New Sponsor and (y) the Administrative Agent and each Revolving Credit Lender (other than any Revolving Credit Lender whose Revolving Credit Commitment is being terminated or assigned in its entirety on or prior to the Permitted

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Change of Control Effective Date) shall have received and be satisfied with such documentation and other information that the Administrative Agent or any Revolving Credit Lender reasonably believes is required by regulatory authorities with respect to the New Sponsor, its subsidiaries or its acquisition vehicle under applicable "know your customer", anti-money laundering, beneficial ownership rules and regulations, and leveraged lending regulatory requirements, including adequate debt repayment capacity; and (h) the Administrative Agent shall have received an officer's certificate from the Borrowers stating that the conditions described in <u>clauses (a)</u> through <u>(f)</u> of this proviso have been satisfied.

"**Permitted Change of Control Effective Date**" means the date of consummation of a Permitted Change of Control.

"**Permitted Change of Control Equity Contribution**" has the meaning set forth in the definition of "Permitted Change of Control".

"**Permitted Core Business Disposition**" means any sale, transfer or other disposition of all or substantially all (as determined in good faith by the Borrower Representative) of any one or more Core Businesses as long as after giving effect to such sale, transfer or other disposition the Borrowers continue to own at least two Core Businesses.

"**Permitted Core Business Disposition Leverage Excess Proceeds**" has the meaning specified in <u>Section</u> <u>2.05(b)(ii)(B)</u>.

"**Permitted Debt**" has the meaning specified in <u>Section</u> <u>7.01</u>.

"**Permitted Debt Exchange**" has the meaning specified in <u>Section</u> <u>2.20(a)</u>.

"**Permitted Debt Exchange Notes**" means Indebtedness in the form of unsecured, first lien, second lien or other junior lien notes or notes secured by a Lien on assets not constituting Collateral; *provided* that such Indebtedness (i) satisfies the Permitted Other Debt Conditions, (ii) the covenants of such Indebtedness are, when taken as a whole, not materially more restrictive to the Borrower Parties than those applicable to the Initial Term Loans (taken as a whole) (except for (x) covenants applicable only to periods after the Maturity Date of the Initial Term Loans existing at the time of incurrence or issuance of such Permitted Debt Exchange Notes and (y) any covenant to the extent such covenant is also added for the benefit of the Lenders holding the Initial Term Loans, without further Lender approval or voting requirement) or otherwise are customary for similar debt securities in light of then-prevailing market conditions at the time of issuance (as determined by the Borrower Representative in good faith; *provided* that, at the Borrower Representative's option, delivery of a certificate of a Responsible Officer of the Borrower Representative to the Administrative Agent in good faith at least three Business Days (or such shorter period as may be agreed by the Administrative Agent) prior to the incurrence of such Indebtedness, together with a reasonably detailed description of the material terms and conditions of such Indebtedness or drafts of the documentation relating thereto, stating that the Borrower Representative has determined in good faith that such terms and

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conditions satisfy the requirement set forth in this <u>clause (ii)</u>, shall be conclusive evidence that such terms and conditions satisfy such requirement unless the Administrative Agent provides notice to the Borrower Representative of its objection during such three Business Day (or shorter) period (including a reasonable description of the basis upon which it objects)), (iii) does not mature prior to the Latest Maturity Date of the Initial Term Loans; *provided* that Designated Earlier Maturing Debt may have a maturity date earlier than the Latest Maturity Date for the then outstanding Initial Term Loans and (iv) such Indebtedness (A) if incurred or Guaranteed by the Borrowers or any Guarantor, shall not be Guaranteed by any Subsidiary that is not a Loan Party or does not become a Loan Party substantially concurrently with the incurrence of such Indebtedness, (B) if secured by a lien on all or any portion of the Collateral, shall not be secured by any assets of any Loan Party other than assets that constitute Collateral, and (C) at the option of the Borrower Representative, shall be (1) secured by a lien on the Collateral on a pari passu basis with the Initial Term Loans and the Initial Revolving Tranche, (2) secured by a lien on the Collateral on a junior basis to the Initial Term Loans, (3) secured by a Lien on assets not constituting Collateral or (4) unsecured; *provided* that, if such Indebtedness is secured by a lien on all or any portion of the Collateral, such Indebtedness shall be subject to Applicable Intercreditor Arrangements.

"**Permitted Debt Exchange Offer**" has the meaning specified in <u>Section</u> <u>2.20(a)</u>.

"**Permitted Equity Issuance**" means any

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) public or private sale or issuance of any Equity Interests (other than Disqualified Stock) of the Borrowers, the Holding Companies or any Parent Holding Company (other than Cure Equity);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) contribution to the equity capital of a Borrower or any other Loan Party (other than (i) Cure Equity or (ii) in exchange for Disqualified Stock) after the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) sale or issuance after the Closing Date of Indebtedness of the Holding Companies, the Borrowers or a Restricted Subsidiary (other than intercompany Indebtedness or Cure Equity) that have been converted into or exchanged for Equity Interests (other than Disqualified Stock) of a Holding Company, a Borrower, a Restricted Subsidiary or any Parent Holding Company;

*provided* that the amount of any Permitted Equity Issuance will be the amount of cash and Cash Equivalents received by a Loan Party or Restricted Subsidiary in connection with such sale, issuance, contribution, interest, return, profit, dividend, distribution or similar amount and the fair market value of any other property received in connection with such sale, issuance, contribution, interest, return, profit, dividend, distribution or similar amount (measured at the time made), without adjustment for subsequent changes in the value.

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"**Permitted Holders**" means each of (a) the Sponsor, (b) managers and members of management of the Borrowers (or any Permitted Parent (other than <u>clause (c)</u> of the definition thereof)) or their Subsidiaries that have ownership interests in the Borrowers (or such Permitted Parent (other than <u>clause (c)</u> of the definition thereof)), (c) any other Person that directly or indirectly has ownership interests in a Borrower (or such Permitted Parent (other than <u>clause (c)</u> of the definition thereof)) on the Closing Date, (d) any person or "group" (within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act as in effect on the date hereof) of which any of the Persons described in <u>clause (a)</u>, <u>(b)</u> or <u>(c)</u> above are members; *provided* that, without giving effect to the existence of such group or any other group, any of the Persons described in <u>clauses (a)</u>, <u>(b)</u> and <u>(c)</u>, collectively, beneficially own Voting Stock representing 50.0% or more of the total voting power of the Voting Stock of the Borrowers (or any Permitted Parent (other than <u>clause (c)</u> of the definition thereof)) then held by such group and (e) any Permitted Parent.

"**Permitted Investments**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) any Investment in cash and Cash Equivalents or Investment Grade Securities and Investments that were Cash Equivalents or Investment Grade Securities when made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) any Investment in any Borrower Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) any Investments by Subsidiaries that are not Restricted Subsidiaries in other Subsidiaries that are not Restricted Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) any Investment by any Borrower Party in a Person that is primarily engaged in a Similar Business if as a result of such Investment (each, a "**Permitted Acquisition**") (a) such Person becomes a Restricted Subsidiary, or (b) such Person, in one transaction or a series of related transactions, is merged, consolidated or amalgamated with or into, or transfers or conveys all or substantially all of its assets to, or is liquidated into, any Borrower Party (and any Investment held by such Person that was not acquired by such Person in contemplation of so becoming a Restricted Subsidiary or in contemplation of such merger, consolidation, amalgamation, transfer, conveyance or liquidation);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) any Investment in securities or other assets received in connection with an Asset Sale made pursuant to <u>Section</u> <u>7.04</u> or any other Disposition of assets not constituting an Asset Sale;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) any Investment (x) existing on the Closing Date, (y) made pursuant to binding commitments in effect on the Closing Date and, if intended to be in excess of $50,000,000, listed on <u>Schedule 7.05(a)</u> or (z) that replaces, refinances, refunds, renews, modifies, amends or extends any Investment described under either of the immediately preceding <u>clauses (x)</u> or <u>(y)</u>; *provided* that any such Investment is in an amount that does not exceed the amount replaced, refinanced, refunded, renewed, modified, amended or extended, except as contemplated pursuant to the terms of such Investment in existence on the Closing Date or as otherwise permitted under this definition or otherwise under <u>Section</u> <u>7.05</u>;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) loans and advances to, or guarantees of Indebtedness of, employees, directors, officers, managers, consultants or independent contractors in an aggregate amount, taken together with all other Investments made pursuant to this <u>clause (7)</u> that are at the time outstanding, not in excess of the greater of (x) $46,000,000 and (y) 10.0% of Four Quarter Consolidated EBITDA outstanding at any one time in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) loans and advances to officers, directors, employees, managers, consultants and independent contractors for business related travel and entertainment expenses, moving and relocation expenses and other similar expenses, in each case in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) any Investment (x) acquired by any Borrower Party (a) in exchange for any other Investment or accounts receivable held by a Borrower or any such Restricted Subsidiary in connection with or as a result of a bankruptcy, workout, reorganization or recapitalization by a Borrower or any such Restricted Subsidiary of such other Investment or accounts receivable, or (b) as a result of a foreclosure or other remedial action by any Borrower Party with respect to any Investment or other transfer of title with respect to any Investment in default and (y) received in compromise or resolution of (A) obligations of trade creditors or customers that were incurred in the ordinary course of business of any Borrower Party, including pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of any trade creditor or customer, or (B) litigation, arbitration or other disputes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) Swap Contracts and Cash Management Services permitted under <u>Section</u> <u>7.01(j)</u>, including any payments in connection with the termination thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) any Investment by any Borrower Party in a Similar Business in an aggregate amount, taken together with all other Investments made pursuant to this <u>clause (11)</u> that are at the time outstanding, not to exceed the greater of (x) $276,000,000 and (y) 60.0% of Four Quarter Consolidated EBITDA; *provided*, *however*, that if any Investment pursuant to this <u>clause (11)</u> is made in any Person that is not a Restricted Subsidiary at the date of the making of such Investment and such Person becomes a Restricted Subsidiary after such date, such Investment shall thereafter be deemed to have been made pursuant to <u>clause (2)</u> above and shall cease to have been made pursuant to this <u>clause (11)</u> for so long as such Person continues to be a Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) additional Investments by any Borrower Party in an aggregate amount, taken together with all other Investments made pursuant to this <u>clause (12)</u> that are at the time outstanding, not to exceed an amount equal to the sum of (x) the greater of (i) $276,000,000 and (ii) 60.0% of Four Quarter Consolidated EBITDA, *plus* (y) amounts reallocated, at the Borrowers' option, from the General RP Basket, *plus* (z) amounts reallocated, at the Borrowers' option, from the General Restricted Debt Payments Basket; *provided*, *however*, that if any Investment pursuant to this <u>clause (12)</u> is made in any Person that is not a Restricted Subsidiary at the date of the making of such Investment and such Person becomes a Restricted Subsidiary after such date, such Investment shall thereafter be deemed to have been made pursuant to <u>clause (2)</u> above and shall cease to have been made pursuant to this <u>clause (12)</u> for so long as such Person continues to be a Restricted Subsidiary;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) any transaction to the extent it constitutes an Investment that is permitted and made in accordance with the provisions of <u>Section</u> <u>6.18(b)</u> (except transactions described in <u>clause (2)</u>, <u>(3)</u>, <u>(4)</u>, <u>(9)</u>, <u>(13)</u> or <u>(14)</u> of such <u>Section</u> <u>6.18(b)</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) Investments the payment for which consists of Equity Interests (other than Excluded Equity) of the Borrowers or any direct or indirect parent of the Borrowers, as applicable; *provided*, *however*, that such Equity Interests will not increase the amount available for Restricted Payments under <u>clause (c)</u> of the first paragraph of <u>Section</u> <u>7.05</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) Investments consisting of the leasing, licensing, or sublicensing of intellectual property in the ordinary course of business or pursuant to joint marketing arrangements with other Persons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) Investments consisting of purchases or acquisitions of inventory, supplies, materials and equipment or purchases, acquisitions, licenses, sublicenses or leases or subleases of intellectual property, or other rights or assets, in each case in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) any Investment in a Receivables Subsidiary or any Investment by a Receivables Subsidiary in any other Person in connection with a Qualified Receivables Financing, including Investments of funds held in accounts permitted or required by the arrangements governing such Qualified Receivables Financing or any related Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) Investments consisting of (v) Liens permitted under <u>Section</u> <u>7.02</u>, (w) Indebtedness (including guarantees) permitted under <u>Section</u> <u>7.01</u>, (x) mergers, amalgamations, consolidations and transfers of all or substantially all assets permitted under <u>Section</u> <u>7.03</u>, (y) Asset Sales permitted under <u>Section</u> <u>7.04</u>, or (z) Restricted Payments permitted under <u>Section</u> <u>7.05</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20) guarantees of Indebtedness permitted to be Incurred under <u>Section</u> <u>7.01</u> and obligations relating to such Indebtedness and guarantees (other than guarantees of Indebtedness) and other Contingent Obligations in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21) advances, loans or extensions of trade credit in the ordinary course of business by any Borrower Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22) Investments consisting of purchases and acquisitions of assets or services in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23) Investments in the ordinary course of business consisting of Uniform Commercial Code Article 3 endorsements for collection or deposit and Uniform Commercial Code Article 4 customary trade arrangements with customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24) intercompany current liabilities owed to non-Loan Parties, Unrestricted Subsidiaries or joint ventures Incurred in the ordinary course of business in connection with the cash management operations of the Borrowers and their Subsidiaries;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(25) Investments in (i) joint ventures of any Borrower Party and any Unrestricted Subsidiary or (ii) in any Restricted Subsidiary to enable such Restricted Subsidiary to make substantially concurrent Investments in such joint ventures of any Borrower Party or any Unrestricted Subsidiary; *provided* that at the time any such Investment is made, the aggregate outstanding amount of all such Investments made pursuant to this <u>clause (25)</u> that are at the time outstanding shall not exceed the greater of (x) $207,000,000 and (y) 45.0% of Four Quarter Consolidated EBITDA; *provided* that the Investments permitted pursuant to this <u>clause (25)</u> may, at the Borrowers' option, be increased by the amount of JV Distributions, without duplication of dividends or distributions increasing amounts available pursuant to <u>clause (d)</u> of the first paragraph of <u>Section</u> <u>7.05</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(26) to the extent constituting an Investment, advances in respect of transfer pricing and cost-sharing arrangements (i.e., "<u>cost-plus</u>" arrangements) that are in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(27) accounts receivable, security deposits and prepayments and other credits granted or made in the ordinary course of business and any Investments received in satisfaction or partial satisfaction thereof from financially troubled account debtors and others, including in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes with or judgments against, such account debtors and others, in each case in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(28) Investments acquired as a result of a foreclosure by any Borrower Party with respect to any secured Investments or other transfer of title with respect to any secured Investment in default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(29) Investments resulting from pledges and deposits that are Permitted Liens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(30) acquisitions of obligations of one or more officers or other employees of any direct or indirect parent of a Borrower, the Borrowers or any Subsidiary of the Borrowers in connection with such officer's or employee's acquisition of Equity Interests of any direct or indirect parent of a Borrower, so long as no cash is actually advanced by any Borrower Party to such officers or employees in connection with the acquisition of any such obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(31) guarantees of operating leases (for the avoidance of doubt, excluding Capitalized Lease Obligations) or of other obligations that do not constitute Indebtedness, in each case, entered into by any Borrower Party in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(32) Investments consisting of the redemption, purchase, repurchase or retirement of any Equity Interests permitted by <u>Section</u> <u>7.05</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(33) non-cash Investments made in connection with tax planning and reorganization activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(34) Investments made pursuant to obligations entered into when the Investment would have been permitted hereunder so long as such Investment when made reduces the amount available under the clause under which the Investment would have been permitted;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(35) Investments made in the ordinary course of business in connection with obtaining, maintaining or renewing client and customer contracts and loans or advances made to, and guarantees with respect to obligations of, distributors, suppliers, licensors and licensees in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(36) Investments of a Restricted Subsidiary acquired after the Closing Date or of an entity merged into or amalgamated or consolidated with a Restricted Subsidiary in a transaction that is not prohibited by <u>Section</u> <u>7.03</u> after the Closing Date to the extent that such Investments were not made in contemplation of such acquisition, merger, amalgamation or consolidation and were in existence on the date of such acquisition, merger, amalgamation or consolidation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(37) any (i) Permitted Tax Reorganization and (ii) Permitted IPO Reorganization.

"**Permitted IPO Reorganization**" means any transactions or actions taken in connection with and reasonably related to consummating an initial public offering, so long as, immediately after giving effect thereto, the security interest of the Lenders in the Collateral and the value of the Guarantees given by the Guarantors, taken as a whole, are not materially impaired.

"**Permitted Joint Venture**" means, with respect to any specified Person, a joint venture in any other Person engaged in a Similar Business in respect of which any Borrower Party beneficially owns at least 25.0% of the shares of Equity Interests of such Person.

"**Permitted Liens**" means, with respect to any Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Liens Incurred in connection with workers' compensation laws, unemployment insurance laws or similar legislation, or in connection with bids, tenders, contracts (other than for the payment of Indebtedness) or leases to which such Person is a party, or to secure public or statutory obligations of such Person or to secure surety, stay, customs or appeal bonds to which such Person is a party, or as security for contested taxes or import duties or for the payment of rent, in each case Incurred in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Liens imposed by law, such as carriers', warehousemen's, landlords', materialmen's, repairman's, construction contractors', mechanics', airports', navigation authority's or other like Liens, in each case for sums not yet overdue by more than 60 days or being contested in good faith by appropriate proceedings or other Liens arising out of judgments or awards against such Person with respect to which such Person shall then be proceeding with an appeal or other proceedings for review (or which, if due and payable, are being contested in good faith by appropriate proceedings and for which adequate reserves are being maintained, to the extent required by GAAP) or with respect to which the failure to make payment would not reasonably be expected to have a Material Adverse Effect as determined in good faith by management of the Borrower Representative or a direct or indirect parent of the Borrowers;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Liens for Taxes, assessments or other governmental charges or levies (i) which are not yet overdue for 30 days or not yet due or payable, (ii) which are being contested in good faith by appropriate proceedings and for which adequate reserves are being maintained to the extent required by GAAP, or for property Taxes on property such Person or one of its Subsidiaries has determined to abandon if the sole recourse for such Tax, assessment, charge, levy or claim is to such property or (iii) with respect to which the failure to make payment would not reasonably be expected to have a Material Adverse Effect as determined in good faith by management of the Borrower Representative or a direct or indirect parent of the Borrowers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Liens in favor of the issuers of performance and surety bonds, bid, indemnity, warranty, release, appeal or similar bonds or with respect to regulatory requirements or letters of credit, bank guarantees or bankers' acceptances issued (which includes Liens over both the applicable cash or Cash Equivalents and the accounts into which the same are deposited) and completion of guarantees provided for, in each case, pursuant to the request of and for the account of such Person in the ordinary course of its business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) as to real property of such Person, survey exceptions, encumbrances, ground leases, easements or reservations of, or rights of others for, licenses, rights-of-way, servitudes, sewers, electric lines, drains, telegraph and telephone and cable television lines, gas and oil pipelines and other similar purposes, reservations of rights or zoning, building codes or other restrictions (including, without limitation, minor defects or irregularities in title and similar encumbrances) as to the use of real properties or Liens incidental to the conduct of the business of such Person or to the ownership of its properties which do not in the aggregate materially adversely interfere with the ordinary conduct of the business of such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Liens Incurred to secure obligations in respect of Indebtedness permitted to be Incurred pursuant to <u>Section</u> <u>7.01(a)</u> or <u>(d)</u> and obligations secured ratably thereunder; *provided* that, in the case of Liens securing Indebtedness permitted to be incurred pursuant to <u>Section</u> <u>7.01(d)</u>, such Lien extends only to the assets and/or Capital Stock the acquisition, lease, construction, repair, replacement or improvement of which is financed thereby and any replacements, additions and accessions thereto and any income or profits thereof; *provided*, *further*, that individual financings provided by a lender may be cross collateralized to other financings provided by such lender or its affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Liens on assets of any Borrower Party existing on the Closing Date and, solely to the extent securing Indebtedness or obligations in excess of $50,000,000 listed on <u>Schedule 7.02</u> and any modifications, replacements, renewals or extensions thereof; *provided* that (i) the Lien does not extend to any additional property other than (A) after-acquired property that is affixed or incorporated into the property covered by such Lien or (B) proceeds and products thereof; *provided* that individual financings provided by a lender may be cross collateralized to other financings provided by such lender or its affiliates and (ii) the modification, replacement, renewal, extension or refinancing of the obligations secured or benefited by such Liens (if such obligations constitute Permitted Debt);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Liens on assets of, or Equity Interests in, a Person at the time such Person becomes a Subsidiary; *provided*, *however*, that such Liens are not created or Incurred in connection with, or in contemplation of, such other Person becoming such a Subsidiary; *provided*, *further*, that such Liens are limited to all or a portion of the assets (and improvements on such assets) that secured (or, under the written arrangements under which the Liens arose, could secure) the obligations to which such Liens relate; *provided*, *further*, that for purposes of this <u>clause (8)</u>, if a Person becomes a Subsidiary, any Subsidiary of such Person shall be deemed to become a Subsidiary of the applicable Borrower, and any property or assets of such Person or any Subsidiary of such Person shall be deemed acquired by the Borrowers at the time of such merger, amalgamation or consolidation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Liens on assets at the time any Borrower Party acquired the assets, including any acquisition by means of a merger, amalgamation or consolidation with or into any Borrower Party; *provided*, *however*, that such Liens are not created or Incurred in connection with, or in contemplation of, such acquisition; *provided*, *further*, that such Liens are limited to all or a portion of the property or assets (and improvements on such property or assets) that secured (or, under the written arrangements under which the Liens arose, could secure) the obligations to which such Liens relate; *provided*, *further*, that for purposes of this <u>clause (9)</u>, if, in connection with an acquisition by means of a merger, amalgamation or consolidation with or into any Borrower Party, a Person other than the Borrowers or Restricted Subsidiary is the successor company with respect thereto, any Subsidiary of such Person shall be deemed to become a Subsidiary of any Borrower Party, as applicable, and any property or assets of such Person or any such Subsidiary of such Person shall be deemed acquired by any Borrower Party, as the case may be, at the time of such merger, amalgamation or consolidation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) Liens securing Indebtedness or other obligations of any Borrower Party owing to the Borrowers or another Subsidiary Guarantor permitted to be Incurred in accordance with <u>Section</u> <u>7.01</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) Liens securing Swap Contracts Incurred in accordance with <u>Section</u> <u>7.01</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) Liens on specific items of inventory or other goods and proceeds of any Person securing such Person's obligations in respect of bankers' acceptances, bank guarantees or letters of credit entered into in the ordinary course of business issued or created for the account of such Person to facilitate the purchase, shipment or storage of such inventory or other goods;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) leases, subleases, licenses, sublicenses, occupancy agreements or assignments of or in respect of real or personal property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) Liens arising from, or from Uniform Commercial Code financing statement filings regarding, operating leases or consignments entered into by any Borrower Party in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) Liens in favor of the Borrowers or any Subsidiary Guarantor;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) (i) Liens on Receivables Assets and related assets, or created in respect of bank accounts into which only the collections in respect of Receivables Assets have been, sold, conveyed, assigned or otherwise transferred or purported to be so sold, conveyed, assigned or otherwise transferred in connection with a Qualified Receivables Factoring and/or Qualified Receivables Financing and (ii) Liens securing Indebtedness or other obligations of any Receivables Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) deposits made or other security provided in the ordinary course of business to secure liability to insurance carriers or under self-insurance arrangements in respect of such obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) Liens on the Equity Interests of Unrestricted Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19) non-exclusive grants of software, technology, and other intellectual property licenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20) judgment and attachment Liens not giving rise to an Event of Default pursuant to <u>Section</u> <u>8.01(f)</u>, <u>(g)</u> or <u>(h)</u> and notices of *lis pendens* and associated rights related to litigation being contested in good faith by appropriate proceedings and for which adequate reserves have been made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21) Liens arising out of conditional sale, title retention, consignment or similar arrangements for the sale of goods entered into in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22) Liens Incurred to secure Cash Management Services and other "bank products" (including those described in <u>Sections 7.01(j)</u> and <u>(w)</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23) Liens to secure any refinancing, refunding, extension, renewal or replacement (or successive refinancings, refundings, extensions, renewals or replacements) as a whole, or in part, of any Indebtedness secured by any Lien referred to in <u>clause (6)</u>, <u>(7)</u>, <u>(8)</u>, <u>(9)</u>, <u>(11)</u>, <u>(24)</u> or <u>(25)</u> of this definition; *provided*, *however*, that (x) such new Lien shall be limited to all or part of the same property that secured (or, under the written arrangements under which the original Lien arose, could secure) the original Lien (plus any replacements, additions, accessions and improvements on such property), (y) the Indebtedness secured by such Lien at such time is not increased to any amount greater than the sum of (A) the outstanding principal amount or, if greater, committed amount of the Indebtedness described under <u>clause (6)</u>, <u>(7)</u>, <u>(8)</u>, <u>(9)</u>, <u>(11)</u>, <u>(24)</u> or <u>(25)</u> of this definition at the time the original Lien became a Permitted Lien and (B) an amount necessary to pay any Refinancing Expenses, related to such refinancing, refunding, extension, renewal or replacement and (z) (A) any amounts Incurred under this <u>clause (23)</u> as refinancing indebtedness of <u>clause (24)</u> of this definition hereunder shall be secured to the same extent, including with respect to any subordination provisions, and subject to Applicable Intercreditor Arrangements, and (B) any amounts incurred under this <u>clause (23)</u> as refinancing indebtedness of <u>clause (25)</u> of this definition shall reduce the amount available under such <u>clause (25)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24) Liens securing Ratio Debt permitted to be Incurred pursuant to <u>Section</u> <u>7.01</u> and other Indebtedness permitted to be Incurred under <u>Section</u> <u>7.01,</u> (<u>o)</u> and <u>(r)</u>;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(25) other Liens securing obligations the principal amount of which does not exceed the greater of (x) $276,000,000 and (y) 60.0% of Four Quarter Consolidated EBITDA at any one time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(26) Liens on the Equity Interests or assets of a joint venture (including Joint Venture Subsidiaries) to secure Indebtedness of such joint venture Incurred pursuant to <u>Section</u> <u>7.01(u)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(27) Liens on equipment of any Borrower Party granted in the ordinary course of business to any Borrower Party's client at which such equipment is located;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(28) Liens securing Indebtedness permitted to be Incurred pursuant to <u>Section</u> <u>7.01(b)</u>, including liens on proceeds or other cash collateral securing reimbursement obligations thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(29) Liens on property or assets used to redeem, repay, defease or to satisfy and discharge Indebtedness; *provided* that such redemption, repayment, defeasance or satisfaction and discharge is not prohibited by this Agreement and that such deposit shall be deemed for purposes of <u>Section</u> <u>7.05</u> (to the extent applicable) to be a prepayment of such Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(30) 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 and exportation of goods in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(31) Liens (i) of a collection bank arising under Section 4-210 of the Uniform Commercial Code, or any comparable or successor provision, on items in the course of collection; (ii) attaching to pooling, commodity trading accounts or other commodity brokerage accounts Incurred in the ordinary course of business; and (iii) in favor of banking or other financial institutions or entities, or electronic payment service providers, arising as a matter of law encumbering deposits (including the right of set-off) and which are within the general parameters customary in the banking or finance industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(32) Liens that are contractual rights of set-off (i) relating to the establishment of depository relations with banks or other Persons not given in connection with the issuance of Indebtedness; (ii) relating to pooled deposit or sweep accounts of any Borrower Party to permit satisfaction of overdraft or similar obligations Incurred in the ordinary course of business of any Borrower Party; or (iii) relating to purchase orders and other agreements entered into with customers of any Borrower Party in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(33) any encumbrance or restriction (including put and call arrangements) with respect to Equity Interests of any joint venture or similar arrangement pursuant to any joint venture or similar agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(34) Liens on insurance policies and the proceeds thereof securing the financing of the premiums with respect thereto;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(35) Liens on vehicles or equipment of any Borrower Party granted in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(36) Liens on assets of Non-Loan Party Subsidiaries securing Indebtedness Incurred in accordance with <u>Section</u> <u>7.01(t)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(37) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(38) Liens arising solely by virtue of any statutory or common law provision or customary business provision relating to banker's liens, rights of set-off or similar rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(39) (a) Liens solely on any cash earnest money deposits made by any Borrower Party in connection with any letter of intent or other agreement in respect of any Permitted Investment or other Investment permitted by <u>Section</u> <u>7.05</u>, (b) Liens on advances of cash or Cash Equivalents in favor of the seller of any property to be acquired in a Permitted Investment to be applied against the purchase price for such Investment and (c) Liens on cash collateral in respect of letters of credit entered into in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(40) the prior rights of consignees and their lenders under consignment arrangements entered into in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(41) Liens on securities that are the subject of repurchase agreements constituting Cash Equivalents under <u>clause (4)</u> of the definition thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(42) Liens encumbering reasonable customary initial deposits and margin deposits and similar Liens attaching to commodity trading accounts or other brokerage accounts Incurred in the ordinary course of business and not for speculative purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(43) rights reserved or vested in any Person by the terms of any lease, license, franchise, grant or permit held by any Borrower Party or by a statutory provision, to terminate any such lease, license, franchise, grant or permit, or to require annual or periodic payments as a condition to the continuance thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(44) restrictive covenants affecting the use to which real property may be put; *provided* that such covenants are complied with;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(45) security given to a public utility or any municipality or governmental authority when required by such utility or authority in connection with the operations of that Person in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(46) zoning by-laws and other land use restrictions, including, without limitation, site plan agreements, development agreements and contract zoning agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(47) Liens on cash proceeds of Indebtedness (and related escrow accounts) in connection with the issuance of such Indebtedness into (and pending the release from) a customary escrow arrangement, to the extent such Indebtedness is incurred in compliance with <u>Section</u> <u>7.01</u>; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(48) Liens on property constituting Collateral securing obligations issued or incurred under (i) any Refinancing Notes and the Refinancing Notes Indentures related thereto, (ii) any Incremental Equivalent Debt and the Incremental Equivalent Debt Documents related thereto and (iii) Permitted Debt Exchange Notes, and, in each case, any Permitted Refinancings thereof (or successive Permitted Refinancings thereof); *provided* that such Liens are subject to customary Applicable Intercreditor Arrangements.

For all purposes hereunder, (w) a Lien need not be Incurred solely by reference to one category of Permitted Liens described in this definition but may be Incurred under any combination of such categories (including in part under one such category and in part under any other such category), (x) in the event that a Lien (or any portion thereof) meets the criteria of one or more of such categories of Permitted Liens, the Borrowers may, in their sole discretion, classify or reclassify such Lien (or any portion thereof) in any manner that complies with this definition, (y) in the event that a portion of the Indebtedness secured by a Lien could be classified as secured in part pursuant to <u>clause (6)</u> (solely with respect to Indebtedness Incurred pursuant to the Ratio-Based Incremental Facility), or <u>clause (24)</u> above, the Borrowers may in their sole discretion, may classify such portion of such Indebtedness (and any obligations in respect thereof) as having been secured pursuant to <u>clause (6)</u> (solely with respect to Indebtedness Incurred pursuant to the Ratio-Based Incremental Facility), or <u>clause (24)</u> above and thereafter the remainder of the Indebtedness as having been secured pursuant to one or more of the other clauses of this definition and (z) in the event that a portion of the Indebtedness secured by a Lien could be classified as secured in part pursuant to <u>clause (6)</u> (solely with respect to Indebtedness Incurred pursuant to the Ratio-Based Incremental Facility) or <u>clause (24)</u> above (giving effect to the Incurrence of such portion of such Indebtedness), any calculation of the Consolidated First Lien Net Leverage Ratio, Consolidated Interest Coverage Ratio, Consolidated Senior Secured Net Leverage Ratio or Consolidated Total Net Leverage Ratio on such date of determination shall not include any such Indebtedness (and shall not give effect to any netting of Indebtedness from the proceeds thereof) to the extent secured pursuant to any such other clause of this definition.

"**Permitted Other Debt Conditions**" means that such applicable Indebtedness does not mature or have scheduled amortization payments of principal and is not subject to mandatory redemption, repurchase, prepayment or sinking fund obligations (except (v) payments of Designated Earlier Maturing Debt described in <u>clause (v)</u> of the definition thereof, (w) customary offers or obligations to repurchase, repay or redeem upon a change of control, asset sale, casualty or condemnation event or initial public offering, (x) maturity payments and customary mandatory prepayments for Designated Earlier Maturing Debt, (y) special mandatory redemptions in connection with customary escrow arrangements and customary acceleration rights after an event of default or (z) AHYDO Catch-up Payments), in each case prior to the Latest Maturity Date at the time such Indebtedness is incurred.

"**Permitted Parent**" means (a) any direct or indirect parent of a Borrower so long as a Permitted Holder pursuant to <u>clause (a)</u>, <u>(b)</u>, <u>(c)</u> or <u>(d)</u> of the definition thereof holds 50.0% or more of the Voting Stock of such direct or indirect parent of a Borrower, (b) each of the Holding Companies, so long as such Holding Company constitutes a Permitted Holder pursuant to <u>clause (a), (b), (c) or (d)</u> of the definition thereof, and (c) any Public

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Company (or Wholly Owned Subsidiary of such Public Company) to the extent and until such time as any Person or group (other than a Permitted Holder under <u>clause (a), (b), (c) or (d)</u> of the definition thereof) is deemed to be or become a beneficial owner of Voting Stock of such Public Company representing more than 50.0% of the total voting power of the Voting Stock of such Public Company.

"**Permitted Refinancing**" means, with respect to any Person, any modification, amendment, refinancing, refunding, renewal, replacement, exchange or extension of any Indebtedness of such Person; *provided* that (a) the principal amount (or accreted value, if applicable) thereof does not exceed the principal amount (or accreted value, if applicable) of the Indebtedness so modified, refinanced, refunded, renewed, replaced, exchanged or extended except by an amount equal to accrued and unpaid interest and any premium thereon *plus* other reasonable amounts paid, and fees and expenses incurred (including OID and upfront fees), in connection with such modification, refinancing, refunding, renewal, replacement, exchange or extension and by an amount equal to any existing commitments unutilized thereunder plus additional Indebtedness that could be incurred pursuant to <u>Section</u> <u>7.01</u> (and any amounts so incurred shall be deemed a utilization under the applicable clause and shall reduce the amount available under such clause); (b) other than with respect to Indebtedness under <u>Section</u> <u>7.01(d)</u> or with respect to the initial maturity date for Designated Earlier Maturing Debt, such modification, refinancing, refunding, renewal, replacement, exchange or extension has a final maturity date equal to or later than the final maturity date of, and has a Weighted Average Life to Maturity equal to or greater than the Weighted Average Life to Maturity of, the Indebtedness being modified, refinanced, refunded, renewed, replaced, exchanged or extended; (c) if the Indebtedness being modified, refinanced, refunded, renewed, replaced, exchanged or extended is subordinated in right of payment to the Obligations, such modification, refinancing, refunding, renewal, replacement, exchange or extension is subordinated in right of payment to the Obligations on subordination terms, taken as a whole, as favorable in all material respects to the Lenders (including, if applicable, as to collateral) as those subordination terms contained in the documentation governing the Indebtedness being modified, refinanced, refunded, renewed, replaced, exchanged or extended or otherwise reasonably acceptable to the Administrative Agent; (d) if the Indebtedness being modified, amended, refinanced, refunded, renewed, replaced, exchanged or extended is (i) unsecured, such modification, amendment, refinancing, refunding, renewal, replacement, exchange or extension is unsecured, or (ii) secured by Liens on the Collateral, such modification, refinancing, refunding, replacement, renewal or extension is secured to the same extent, including with respect to any subordination provisions, and subject to Applicable Intercreditor Arrangements; (e) the terms and conditions (including, if applicable, as to collateral) of any such modified, refinanced, refunded, renewed, replaced, exchanged or extended (other than to the extent permitted by any other clause of this definition or with respect to interest rate, optional prepayment premiums and optional redemption provisions) Indebtedness are, either (i) substantially identical to or less favorable to the investors providing such Permitted Refinancing, taken as a whole, than the terms and conditions of the Indebtedness being modified, refinanced, refunded, renewed, replaced, exchanged or extended, or (ii) when taken as a whole, not more materially restrictive to the Borrower Parties than those applicable to the Initial Term Loans (taken as a whole) (except for (x) covenants applicable only to periods after the Maturity Date of the Initial Term Loans

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existing at the time of incurrence or issuance of such Indebtedness and (y) any covenant to the extent such covenant is also added for the benefit of the Lenders holding the Initial Term Loans, without further Lender approval or voting requirement) or otherwise are customary for similar indebtedness in light of then-prevailing market conditions at the time of incurrence (as determined by the Borrower Representative in good faith; *provided* that, at the Borrower Representative's option, delivery of a certificate of a Responsible Officer of the Borrower Representative to the Administrative Agent in good faith at least three Business Days (or such shorter period as may be agreed by the Administrative Agent) prior to the incurrence of such Indebtedness, together with a reasonably detailed description of the material terms and conditions of such Indebtedness or drafts of the documentation relating thereto, stating that the Borrower Representative has determined in good faith that such terms and conditions satisfy the requirement set forth in this <u>clause (e)</u>, shall be conclusive evidence that such terms and conditions satisfy such requirement unless the Administrative Agent provides notice to the Borrower Representative of its objection during such three Business Day (or shorter) period (including a reasonable description of the basis upon which it objects)), in each case, except for terms and conditions only applicable to periods after the Latest Maturity Date; (f) such modification, amendment, refinancing, refunding, renewal, replacement, exchange or extension is incurred by the Person who is or would have been permitted to be the obligor or guarantor (or any successor thereto) on the Indebtedness being modified, amended, refinanced, refunded, renewed, replaced or extended (it being understood that the roles of such obligors as a borrower or a guarantor with respect to such obligations may be interchanged); and (g) at the time thereof, other than with respect to Indebtedness under <u>Section</u> <u>7.01(d)</u> and <u>Section</u> <u>7.01(j)</u>, no Event of Default under <u>Section</u> <u>8.01(f)</u> or <u>(g)</u> shall have occurred and be continuing.

"**Permitted Tax Reorganization**" means any re-organizations and other activities and actions related to tax planning and re-organization, so long as, immediately after giving effect thereto the security interest of the Lenders in the Collateral and the value of the Guarantees given by the Guarantors, taken as a whole, are not materially impaired.

"**Person**" means any individual, corporation, company, partnership, limited liability company, joint venture, association, joint stock company, trust, unincorporated organization, government (or any agency or political subdivision thereof) or any other entity.

"**Plan**" means any "employee benefit plan" (other than a Multiemployer Plan) within the meaning of Section 3(3) of ERISA that is maintained or is contributed to by a Loan Party or any ERISA Affiliate or under which any Loan Party or ERISA Affiliate has any liability or obligation to contribute to, whether fixed or contingent, and, in any case, is subject to Title IV of ERISA or the minimum funding standards under Section 412 of the Code or Section 302 of ERISA. For greater certainty, "Plan" excludes any Foreign Plan.

"**Platform**" has the meaning specified in <u>Section</u> <u>6.02</u>.

"**Pledged Debt**" means "Pledged Debt" (or similar term) as defined in the Security Agreement.

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"**Pledged Interests**" means "Pledged Interests" (or similar term) as defined in the Security Agreement.

"**Pounds Sterling**" means the lawful currency of the United Kingdom.

"**Preferred Stock**" means any Equity Interest with preferential right of payment of dividends or upon liquidation, dissolution or winding up.

"**Prepayment Amount**" has the meaning specified in <u>Section</u> <u>2.05(c)</u>.

"**Prepayment-Based Incremental Facility**" has the meaning specified in <u>Section</u> <u>2.14(a)</u>.

"**Prepayment Date**" has the meaning specified in <u>Section</u> <u>2.05(c)</u>.

"**Previous Holdings**" has the meaning specified in the definition of "Holding Companies".

"**Primary Disqualified Institution**" has the meaning specified in the definition of "Disqualified Institution".

"**primary obligations**" has the meaning specified in the definition of "Contingent Obligations".

"**primary obligor**" has the meaning specified in the definition of "Contingent Obligations".

"**Prime Lending Rate**" means, for any day, the rate of interest last quoted by *The Wall Street Journal* as the "Prime Rate" in the U.S. for such day or, if *The Wall Street Journal* ceases to quote such rate, the highest per annum interest rate published by the FRB in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the "bank prime loan" rate for such day or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the Administrative Agent) or any similar release by the FRB (as determined by the Administrative Agent), in each case, for such day. Each change in the Prime Lending Rate shall be effective on the date that such change is publicly announced or quoted as being effective.

"**Pro Forma Basis**," "**Pro Forma Compliance**" and "**Pro Forma Effect**" mean, with respect to the calculation of any test, financial ratio, basket or covenant under this Agreement, including the Consolidated First Lien Net Leverage Ratio, the Consolidated Interest Coverage Ratio, the Consolidated Senior Secured Net Leverage Ratio and the Consolidated Total Net Leverage Ratio and the calculation of Consolidated Cash Interest Expense, Consolidated EBITDA, Consolidated Interest Expense, Consolidated Net Income, Consolidated Total Assets and Four Quarter Consolidated EBITDA, of any Person and its Restricted Subsidiaries, as of any date, that pro forma effect will be given to the Transactions, any Specified Transactions, any acquisition, merger, amalgamation, consolidation, Investment, any issuance, Incurrence, assumption or repayment or redemption of Indebtedness (including Indebtedness issued, Incurred or assumed or repaid

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or redeemed as a result of, or to finance, any relevant transaction and for which any such test, financial ratio, basket or covenant is being calculated), any issuance or redemption of Preferred Stock or Disqualified Stock, all sales, transfers and other dispositions or discontinuance of any Subsidiary, line of business, division, segment or operating unit, any operational change (including the entry into any material contract or arrangement) or any designation of a Restricted Subsidiary to an Unrestricted Subsidiary or of an Unrestricted Subsidiary to a Restricted Subsidiary, in each case that have occurred during the four consecutive fiscal quarter period or twelve consecutive month period of such Person being used to calculate such test, financial ratio, basket or covenant (the "**Reference Period**"), or subsequent to the end of the Reference Period but prior to such date or prior to or substantially simultaneously with the event for which a determination under this definition is made (including (i) any such event occurring at a Person who became a Restricted Subsidiary of the subject Person or was merged, amalgamated or consolidated with or into the subject Person or any other Restricted Subsidiary of the subject Person after the commencement of the Reference Period and (ii) with respect to any proposed Investment or acquisition of the subject Person for which committed financing is or is sought to be obtained, the event for which a determination under this definition is made may occur after the date upon which the relevant determination or calculation is made), in each case, as if each such event occurred on the first day of the Reference Period; *provided* that (x) pro forma effect will be given to reasonably identifiable and quantifiable pro forma cost savings or expense reductions related to operational efficiencies (including the entry into or renegotiation of any material contract or arrangement), strategic initiatives or purchasing improvements and other cost savings, improvements or synergies, in each case, that have been realized, or are reasonably expected to be realized, by such Person and its Restricted Subsidiaries based upon actions to be taken within the first thirty- six (36) months after the consummation or commencement, as applicable, of the action as if such cost savings, expense reductions, improvements and synergies occurred (or were realized) on the first day of the Reference Period and (y) no amount shall be added back pursuant to this definition to the extent duplicative of amounts that are otherwise included in computing Consolidated EBITDA for such Reference Period; *provided*, *however*, that (1) notwithstanding the foregoing, pro forma effect will not be given to any interest expense attributable to any Indebtedness Incurred or Disqualified Stock or Preferred Stock issued or, in each case, assumed in anticipation of, or in connection with, the transaction or series of related transactions for which such computation is required to be made, and (2) to the extent not already covered above, any such calculation may include adjustments calculated in accordance with Regulation S-X.

Any pro forma calculation may include, at the option of the Borrower Representative, without limitation, (1) adjustments calculated in accordance with Regulation S-X, (2) adjustments calculated to give effect to any Pro Forma Cost Savings and (3) all adjustments of the type included in the Sponsor Model or any quality of earnings report made available to the Administrative Agent and prepared by a nationally recognized accounting firm that is reasonably acceptable to the Administrative Agent (it being understood and agreed that any of the "big four" accounting firms, FTI Consulting, Inc., RSM US LLP, Grant Thornton LLP, Alvarez & Marsal Holdings, LLC and BDO USA, P.C. are acceptable to the Administrative Agent), without regard to time or amounts, to the extent such adjustments, without duplication, continue to be applicable to the Reference Period.

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The Borrowers may estimate GAAP results if the financial statements with respect to an acquisition or Investment are not maintained in accordance with GAAP, and the Borrowers may make such further adjustments as reasonably necessary in connection with Consolidation of such financial statements with those of the Borrowers.

"**Pro Forma Cost Savings**" means, without duplication of any amounts referenced in the definition of "Pro Forma Basis," an amount equal to the amount of cost savings, operating expense reductions, synergies, business optimization initiatives and other operating improvements, in each case, related to the Transactions, mergers or other business combinations, acquisitions or other investments, divestitures, restructurings, integration, insourcing initiatives, operating improvements, cost savings initiatives or any other initiative, action or event (including optimization actions and other revenue enhancements), including any of the foregoing consummated prior to the Closing Date, in each case, projected by the Borrowers in good faith to be realized (calculated on a pro forma basis as though such items had been realized on the first day of such period) as a result of actions taken or with respect to which substantial steps have been taken or are expected to be taken by the Borrowers (or any successor thereto) or any Restricted Subsidiary, net of the amount of actual benefits realized or expected to be realized during such period that are otherwise included in the calculation of Consolidated EBITDA from such actions; *provided* that such cost savings, operating expense reductions, synergies, business optimization initiatives and other operating improvements are reasonably identifiable (as determined in good faith by a responsible financial or accounting officer, in his or her capacity as such and not in his or her personal capacity, of the Borrower Representative (or any successor thereto) or of any direct or indirect parent of the Borrower Representative) and are reasonably anticipated to result from actions taken or with respect to which substantial steps have been taken or are expected to be taken within the first thirty-six (36) months after the consummation or commencement, as applicable, of any change that is expected to result in such cost savings, operating expense reductions, operating improvements or synergies; *provided* that no cost savings, operating expense reductions, operating improvements and synergies shall be added pursuant to this definition to the extent duplicative of any expenses or charges otherwise added to Consolidated Net Income or Consolidated EBITDA, whether through a pro forma adjustment, addback, exclusion or otherwise, for such period.

"**Pro Rata Share**" means, with respect to each Lender and any Facility or all the Facilities or any Tranche or all the Tranches (as the case may be) at any time, a fraction (expressed as a percentage, carried out to the ninth decimal place, and subject to adjustment as provided in <u>Section</u> <u>2.17</u>), the numerator of which is the amount of the Commitments of such Lender under the applicable Facility or the Facilities or Tranche or Tranches (and, in the case of any Term Loan Tranche after the applicable borrowing date and without duplication, the outstanding principal amount of Term Loans under such Tranche, of such Lender, at such time) at such time and the denominator of which is the amount of the Aggregate Commitments under the applicable Facility or the Facilities or Tranche or Tranches at such time (and, in the case of any Term Loan Tranche and without duplication,

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the outstanding principal amount of Term Loans under such Tranche, at such time); *provided* that if the commitment of each Lender to make Loans and the obligation of each L/C Issuer to make L/C Credit Extensions have been terminated pursuant to <u>Section</u> <u>8.02</u>, then the Pro Rata Share of each Lender shall be determined based on the Pro Rata Share of such Lender immediately prior to such termination and after giving effect to any subsequent assignments made pursuant to the terms hereof. The initial Pro Rata Share of each Lender is set forth opposite the name of such Lender on <u>Schedule 2.01</u> or in the Assignment and Assumption pursuant to which such Lender became a party hereto, as applicable.

"**Proceeds Carry-Forward Amount**" has the meaning assigned to such term in <u>Section</u> <u>2.05(b)(ii)</u>.

"**PTE**" means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

"**Public Company**" means any Person with a class or series of Voting Stock that is traded on a stock exchange or in the over-the-counter market.

"**Public Company Costs**" means, as to any Person, fees, costs and expenses associated with becoming a standalone entity or a public company and public company costs (including, for the avoidance of doubt, fees, costs and expenses relating to compliance with the provisions of the Securities Act and the Exchange Act (or similar regulations applicable in other listing jurisdictions), as applicable to companies with equity securities held by the public, costs associated with, or in anticipation of, or preparation for, compliance with the requirements of the Sarbanes Oxley Act of 2002 (or similar non-U.S. regulations) and the rules and regulations promulgated in connection therewith (or similar regulations applicable in other listing jurisdictions), the rules of national securities exchange companies with listed equity or debt securities, directors' or managers' compensation, fees and expense reimbursement, costs and expenses relating to investor relations, shareholder meetings and reports to shareholders, directors' and officers' insurance and other executive costs, legal and other professional fees, and listing fees, in each case to the extent arising solely by virtue of the initial listing of such Person's equity securities on a national securities exchange (or similar non-U.S. exchange)).

"**Public Lender**" has the meaning specified in <u>Section</u> <u>6.02</u>.

"**Public Side Information**" has the meaning specified in <u>Section</u> <u>6.02</u>.

"**Qualified Holding Company Indebtedness**" means Indebtedness of a Holding Company (A) that is not subject to any Guarantee by any Restricted Subsidiary of any Holding Company (other than a Subsidiary as provided for under <u>clause (i)</u> of the proviso in <u>Section</u> <u>7.09</u> of this Agreement), (B) that has no scheduled amortization or scheduled payments of principal and is not subject to mandatory redemption, repurchase, prepayment or sinking fund obligation, in each case, other than at the final maturity of such Indebtedness (it being understood that such Indebtedness may have mandatory prepayment, repurchase or redemption provisions satisfying the requirements of <u>clause (C)</u> below), (C)

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that has mandatory prepayment, repurchase or redemption, covenant, default and remedy provisions customary for senior notes (or no more restrictive than is customary) of an issuer that is the parent of a borrower under senior secured credit facilities, and in any event, with respect to covenant, default and remedy provisions, no more restrictive (taken as a whole) than those set forth in this Agreement (other than provisions customary for senior notes of a holding company, including (x) customary assets sale, change of control provisions and customary acceleration rights after an event of default, (y) AHYDO Catch-up Payments and (z) special mandatory redemptions in connection with customary escrow arrangements and customary acceleration rights after an event of default) and (D) if such Indebtedness is secured, it shall only be secured by assets of any Parent Holding Company (other than the Holding Companies) and any Subsidiary of a Holding Company that is not prohibited from guaranteeing such Indebtedness as provided in <u>clause (A)</u> of this definition; *provided* that, at such Holding Company's option, delivery of a certificate of a Responsible Officer to the Administrative Agent at least five Business Days (or such shorter period as may be agreed by the Administrative Agent) prior to the incurrence of such Indebtedness, together with a reasonably detailed description of the material terms and conditions of such Indebtedness or drafts of the documentation relating thereto, stating that the applicable Holding Company has reasonably determined in good faith that such terms and conditions satisfy the foregoing requirement shall be conclusive evidence that such terms and conditions satisfy the foregoing requirement unless the Administrative Agent notifies such Holding Company within such five Business Day period that it disagrees with such determination (including a reasonably detailed description of the basis upon which it disagrees); *provided*, *further*, that any such Indebtedness shall constitute Qualified Holding Company Indebtedness only if immediately after giving effect to the issuance or incurrence thereof and the use of proceeds thereof, no Event of Default under <u>Section</u> <u>8.01(f)</u> or <u>(g)</u> shall have occurred and be continuing.

"**Qualified IPO**" means the consummation of an offering (on either a primary or secondary basis), including any merger, consolidation or otherwise with and into a special purpose acquisition company or other Person that has consummated (or will consummate) an offering of the common Equity Interests of any Holding Company or any Parent Holding Company (other than an offering pursuant to a registration statement on Form S-8) resulting in such Equity Interests being listed on a nationally-recognized stock exchange in the applicable jurisdiction.

"**Qualified Receivables Factoring**" means any Factoring Transaction that meets the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) such Factoring Transaction is non-recourse to, and does not obligate, any Borrower Party, or their respective properties or assets (other than Receivables Assets) in any way other than pursuant to Standard Securitization Undertakings,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) all sales, conveyances, assignments and/or contributions of Receivables Assets by any Borrower Party are made at Fair Market Value in the context of a Factoring Transaction (as determined in good faith by the Borrower Representative), and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) such Factoring Transaction (including financing terms, covenants, termination events (if any) and other provisions thereof) is on market terms at the time such Factoring Transaction is first entered into (as determined in good faith by the Borrower Representative) and may include Standard Securitization Undertakings.

The grant of a security interest in any accounts receivable of any Borrower Party (other than a Receivables Subsidiary) to secure any Credit Agreement shall not be deemed a Qualified Receivables Factoring.

"**Qualified Receivables Financing**" means any Receivables Financing that meets the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) all sales, conveyances, assignments and/or contributions of Receivables Assets by any Borrower Party to any Receivables Subsidiary are made at Fair Market Value in the context of a Receivables Financing (as determined in good faith by the Borrower Representative), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the financing terms, covenants, termination events and other provisions thereof shall be on market terms at the time such Receivables Financing is first entered into (as determined in good faith by the Borrower Representative) and may include Standard Securitization Undertakings, the grant of a security interest in any accounts receivable of any Borrower Party (other than a Receivables Subsidiary) to secure any Credit Agreement shall not be deemed a Qualified Receivables Financing.

"**Qualified Reporting Subsidiary**" has the meaning specified in <u>Section</u> <u>6.01</u>.

"**Qualifying Bids**" has the meaning specified in the definition of "Dutch Auction".

"**Rate Determination Date**" means, in the case of an Alternative Currency Loan, two (2) Business Days prior to the commencement of such Interest Period (or such other day as is generally treated as the rate fixing day by market practice in such interbank market, as determined by the Administrative Agent; *provided* that, to the extent such market practice is not administratively feasible for the Administrative Agent, then "Rate Determination Date" means such other day as otherwise reasonably determined by the Administrative Agent).

"**Rating Agency**" means (1) each of Fitch, Moody's and S&P and (2) if Moody's or S&P ceases to rate the Term Facilities for reasons outside of the Borrowers' control, a "nationally recognized statistical rating organization" within the meaning of Section 3 under the Exchange Act selected by the Borrower Representative or any direct or indirect parent of the Borrower Representative as a replacement agency for Moody's or S&P, as the case may be.

"**Ratio Acquisitions Debt**" has the meaning specified in the first paragraph of <u>Section</u> <u>7.01</u>.

"**Ratio Debt**" has the meaning specified in the first paragraph of <u>Section</u> <u>7.01</u>.

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"**Ratio-Based Incremental Facility**" has the meaning specified in <u>Section</u> <u>2.14(a)</u>.

"**Receivables Assets**" means (a) any accounts receivable, revenue stream or other right of payment owed to (whether now existing or arising in the future) the Borrowers or any of their Subsidiaries that are, or are in the process of becoming, subject to a Qualified Receivables Financing or Qualified Receivables Factoring, and (b) all assets related thereto including, without limitation, all collateral securing such accounts receivable, revenue stream or other right of payment (including any collateral over any bank account or collection account), all contracts and contract rights, guarantees or other obligations (including, without limitation, letters of credit, promissory notes or trade credit insurance) in respect of such accounts receivable, revenue stream or other right of payment, all records with respect to such accounts receivable, revenue stream or other right of payment, proceeds of such accounts receivable, revenue stream or other right of payment and other assets which are customarily transferred or in respect of which security interests are customarily granted in connection with non-recourse accounts receivable factoring arrangements involving accounts receivable and which are sold, conveyed, assigned, charged or otherwise transferred or pledged by the Borrowers or a Subsidiary to a commercial bank or an Affiliate thereof in connection with a Receivables Financing and any Swap Contracts entered into by the Borrowers or any such Subsidiary in connection with such accounts receivable.

"**Receivables Fees**" means distributions or payments made directly or by means of discounts with respect to any participation interest issued or sold in connection with, and other fees paid to a Person that is not a Restricted Subsidiary in connection with, any Receivables Financing or Factoring Transaction.

"**Receivables Financing**" means any transaction or series of transactions that may be entered into by a Borrower or any of its Subsidiaries pursuant to which the Borrowers or any of their Subsidiaries may sell, contribute, convey, assign or otherwise transfer Receivables Assets to (a) a Receivables Subsidiary (in the case of a transfer by the Borrowers or any of their Subsidiaries), and (b) any other Person (in the case of a transfer by a Receivables Subsidiary), which in either case, may include a backup or precautionary grant of security interest in such Receivables Assets so sold, contributed, conveyed, assigned or otherwise transferred.

"**Receivables Repurchase Obligation**" means (i) any obligation of a seller of receivables in a Qualified Receivables Factoring or Qualified Receivables Financing to repurchase receivables arising as a result of a breach of a representation, warranty or covenant or otherwise, including as a result of a receivable or portion thereof becoming subject to any asserted defense, dispute, off-set or counterclaim of any kind as a result of any action taken by, any failure to take action by or any other event relating to the seller, or (ii) any right of a seller of receivables in a Qualified Receivables Factoring or Qualified Receivables Financing to repurchase defaulted receivables for the purposes of claiming sales tax bad debt relief.

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"**Receivables Subsidiary**" means a Wholly Owned Restricted Subsidiary of a Borrower (or another Person formed for the purposes of engaging in a Qualified Receivables Financing with the Borrowers and/or one or more of their Subsidiaries (including, a special purpose securitization vehicle (or similar entity)) in which the Borrowers or any Subsidiary of the Borrowers or a direct or indirect parent of the Borrowers makes an Investment (or which otherwise owes to the Borrowers or one of their Subsidiaries any deferral of part of the purchase price of the Receivables Assets for the purpose of credit enhancement given under the Qualified Receivables Financing) and to which the Borrowers or any Subsidiary of the Borrowers or a direct or indirect parent of the Borrowers sells, conveys, assigns or otherwise transfers Receivables Assets (which may include a backup or precautionary grant of security interest in such Receivables Assets sold, conveyed, assigned or otherwise transferred or purported to be so sold, conveyed, assigned or otherwise transferred)) which engages in no activities other than in connection with the purchase, acquisition or financing of Receivables Assets of the Borrowers and their Subsidiaries or a direct or indirect parent of a Borrower, all proceeds thereof and all rights (contractual or other), collateral and other assets relating thereto, and any business or activities incidental or related to such business, and which is designated by the Board of Directors of a Borrower, a Holding Company, or a Parent Holding Company as a Receivables Subsidiary and:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) no portion of the Indebtedness or any other obligations (contingent or otherwise) of which (i) is guaranteed by any Borrower Party (other than a Receivables Subsidiary, excluding guarantees of obligations (other than the principal of, and interest on, Indebtedness) pursuant to Standard Securitization Undertakings), (ii) is recourse to or obligates any Borrower Party (other than a Receivables Subsidiary) in any way other than pursuant to Standard Securitization Undertakings, or (iii) subjects any property or asset of any Borrower Party (other than a Receivables Subsidiary), directly or indirectly, contingently or otherwise, to the satisfaction thereof, other than pursuant to Standard Securitization Undertakings,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) with which neither the Borrowers nor any Restricted Subsidiary (other than a Receivables Subsidiary) has any material contract, agreement, arrangement or understanding other than on terms which the Borrowers reasonably believe to be no less favorable to the Borrowers or such Subsidiary than those that might be obtained at the time from Persons that are not Affiliates of the Borrowers, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) to which neither the Borrowers nor any other Subsidiary of the Borrowers has any obligation to maintain or preserve such entity's financial condition or cause such entity to achieve certain levels of operating results.

Any such designation by the Board of Directors of a Borrower, a Holding Company, or any Parent Holding Company shall be evidenced to the Administrative Agent by filing with the Administrative Agent a certified copy of the resolution of the Board of Directors of such Borrower, such Holding Company or such Parent Holding Company giving effect to such designation and an officer's certificate certifying that such designation complied with the foregoing conditions.

"**Recipient**" means the Administrative Agent, any Lender, any L/C Issuer or any Participant.

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"**Reference Period**" has the meaning given to such term in the definition of "Pro Forma Basis".

"**Refinancing Amendment**" means an amendment to this Agreement, in form and substance reasonably satisfactory to the Administrative Agent, among the Borrowers, the Administrative Agent and the Lenders providing Specified Refinancing Debt, effecting the incurrence of such Specified Refinancing Debt in accordance with <u>Section</u> <u>2.18</u>.

"**Refinancing Expenses**" means, in connection with any refinancing of any Indebtedness, Disqualified Stock or Preferred Stock otherwise permitted by this Agreement, the aggregate principal amount of additional Indebtedness, Disqualified Stock or Preferred Stock Incurred to pay (1) accrued and unpaid interest, (2) the increased principal amount of any Indebtedness being refinanced resulting from the in-kind payment of interest on such Indebtedness (or in the case of Disqualified Stock or Preferred Stock being refinanced, additional shares of such Disqualified Stock or Preferred Stock); (3) the aggregate amount of original issue discount on the Indebtedness, Disqualified Stock or Preferred Stock being refinanced; (4) premiums (including tender premiums) and other costs associated with the redemption, repurchase, retirement, discharge or defeasance of Indebtedness, Disqualified Stock or Preferred Stock being refinanced, and (5) all fees and expenses (including underwriting discounts, commitment, ticking and similar fees, expenses and discounts) associated with the repayment of the Indebtedness, Disqualified Stock or Preferred Stock being refinanced and the incurrence of the Indebtedness, Disqualified Stock or Preferred Stock incurred in connection with such refinancing.

"**Refinancing Indebtedness**" has the meaning specified in <u>Section</u> <u>7.01(o)</u>.

"**Refinancing Notes**" means one or more series of senior unsecured notes, senior secured notes secured by a lien on the Collateral on a pari passu basis with the Initial Term Loans and the Initial Revolving Tranche, senior secured notes secured by a lien on the Collateral on a junior basis to the Initial Term Loans or senior secured notes secured by a Lien on assets not constituting Collateral, in each case issued in respect of a refinancing of outstanding Indebtedness of a Borrower under any one or more Term Loan Tranches; *provided* that (a) such Refinancing Notes, if incurred or Guaranteed by the Borrowers or any Guarantor, shall not be Guaranteed by any Person that is not a Loan Party or does not become a Loan Party substantially concurrently with the incurrence of such Refinancing Notes; (b) such Refinancing Notes, (x) if secured by a lien on all or any portion of the Collateral, shall not be secured by any assets other than assets that constitute Collateral, and (y) at the option of the Borrower Representative, shall be secured by a lien on the Collateral on a pari passu basis with the Initial Term Loans and the Initial Revolving Tranche, secured by a lien on the Collateral on a junior basis to the Initial Term Loans, secured by a Lien on assets not constituting Collateral or unsecured; *provided* that, if such Refinancing Notes are secured by a lien on all or any portion of the Collateral, such Refinancing Notes shall be subject to Applicable Intercreditor Arrangements; (c) other than with respect to the initial maturity date for Designated Earlier Maturing Debt, no Refinancing Notes shall (i) mature prior to the Latest Maturity Date of the Term Loan Tranche being refinanced or (ii) be subject to any amortization prior to the final maturity thereof (except if such Refinancing Notes are in the form of term loans that are secured on

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a *pari passu* basis with the Initial Term Loans, customary amortization not to exceed 1.0% per annum), or be subject to any mandatory redemption or prepayment provisions or rights (except (x) customary assets sale, casualty events or similar event, change of control provisions, special mandatory redemptions in connection with customary escrow arrangements and customary acceleration rights after an event of default and (y) AHYDO Catch-up Payments); (d) such Refinancing Notes shall have covenants and events of default (excluding optional prepayment and redemption terms) that are, taken as a whole, not more materially restrictive to the Borrower Parties than those applicable to the Initial Term Loans (taken as a whole) (except for (x) covenants and events of default applicable only to periods after the Maturity Date of the Initial Term Loans and existing at the time of incurrence or issuance of such Refinancing Notes and (y) any covenant to the extent such covenant is also added for the benefit of the Lenders holding the Initial Term Loans, without further Lender approval or voting requirement) or otherwise customary for similar debt securities in light of then- prevailing market conditions at the time of issuance (as determined by the Borrower Representative in good faith; *provided* that, at the Borrower Representative's option, delivery of a certificate of a Responsible Officer of the Borrower Representative to the Administrative Agent in good faith at least three Business Days (or such shorter period as may be agreed by the Administrative Agent) prior to the incurrence of such Refinancing Notes, together with a reasonably detailed description of the material terms and conditions of such Refinancing Notes or drafts of the documentation relating thereto, stating that the Borrower Representative has determined in good faith that such terms and conditions satisfy the requirement set forth in this <u>clause (d)</u>, shall be conclusive evidence that such terms and conditions satisfy such requirement unless the Administrative Agent provides notice to the Borrower Representative of its objection during such three Business Day (or shorter) period (including a reasonable description of the basis upon which it objects)); (e) such Refinancing Notes may not have obligors or Liens that are more extensive than those which applied to the Indebtedness being refinanced (it being understood that the roles of such obligors as a borrower or a guarantor with respect to such obligations may be interchanged); and (f) the Net Cash Proceeds of such Refinancing Notes shall be applied, substantially concurrently with the incurrence thereof, to the pro rata prepayment of outstanding Term Loans under the applicable Term Loan Tranche being so refinanced (or to the less than pro rata prepayment of the applicable outstanding Term Loans made by any Term Lenders that will be purchasers of the Refinancing Notes, as approved by such Term Lenders) and the payment of fees, expenses and premiums, if any, payable in connection therewith.

"**Refinancing Notes Indentures**" means, collectively, the indentures or other similar agreements pursuant to which any Refinancing Notes are issued, together with all instruments and other agreements in connection therewith, as amended, supplemented or otherwise modified from time to time in accordance with the terms thereof, but only to the extent permitted under the terms of the Loan Documents.

"**Refunded Swing Line Loans**" has the meaning specified in <u>Section</u> <u>2.04(c)(i)</u>.

"**Refunding Capital Stock**" has the meaning specified in <u>Section</u> <u>7.05</u>.

"**Register**" has the meaning specified in <u>Section</u> <u>10.07(c)</u>.

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"**Regulated Bank**" means an Approved Commercial Bank that is (i) a U.S. depository institution the deposits of which are insured by the Federal Deposit Insurance Corporation; (ii) a corporation organized under section 25A of the U.S. Federal Reserve Act of 1913; (iii) a branch, agency or commercial lending company of a foreign bank operating pursuant to approval by and under the supervision of the Board under 12 CFR part 211; (iv) a non-U.S. branch of a foreign bank managed and controlled by a U.S. branch referred to in <u>clause (iii)</u>; or (v) any other U.S. or non-U.S. depository institution or any branch, agency or similar office thereof supervised by a bank regulatory authority in any jurisdiction.

"**Regulation S-X**" means Regulation S-X under the Securities Act.

"**Related Business Assets**" means assets (other than cash or Cash Equivalents) used or useful in a Similar Business; *provided* that any assets received by any Borrower Party in exchange for assets transferred by any Borrower Party will not be deemed to be Related Business Assets if they consist of securities of a Person, unless such Person is, or upon receipt of the securities of such Person, such Person would become, a Restricted Subsidiary.

"**Related Parties**" means, with respect to any Person, such Person's Affiliates and the partners, members, directors, managers, officers, employees, agents, attorneys-in-fact, trustees and advisors of such Person and of such Person's Affiliates.

"**Release**" means any release, spill, emission, leaking, pumping, pouring, emptying, injection, escaping, deposit, disposal, discharge, dispersal, dumping, leaching or migration of any Hazardous Materials into the Environment (including the abandonment or disposal of any barrels, containers or other closed receptacles containing any Hazardous Materials), including the movement of any Hazardous Materials through the air, soil, surface water or groundwater.

"**Relevant Governmental Body**" means (i) with respect to a Benchmark Replacement in respect of Loans denominated in Dollars, the Board of Governors or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Board of Governors or the Federal Reserve Bank of New York, or any successor thereto and (ii) with respect to a Benchmark Replacement in respect of Loans denominated in Canadian Dollars, the Bank of Canada, or a committee officially endorsed or convened by the Bank of Canada, or any successor thereto.

"**Relevant Transaction**" has the meaning specified in <u>Section</u> <u>2.05(b)(ii)</u>.

"**Replaceable Lender**" has the meaning specified in <u>Section</u> <u>3.08(a)</u>.

"**Replacement Assets**" means (1) substantially all the assets of a Person primarily engaged in a Similar Business or (2) a majority of the Voting Stock of any Person primarily engaged in a Similar Business that will become, on the date of acquisition thereof, a Restricted Subsidiary.

"**Reply Amount**" has the meaning specified in the definition of "Dutch Auction".

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"**Reply Discount**" has the meaning specified in the definition of "Dutch Auction".

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

"**Repricing Event**" means (i) any prepayment or repayment of any tranche of Closing Date Term Loans, in whole or in part, with the proceeds of, or conversion of any portion of such Closing Date Term Loans into, any new or replacement tranche of syndicated term loans of like currency under credit facilities (whether under this Agreement or otherwise) incurred for the primary purpose of repaying, refinancing, or replacing the Closing Date Term Loans with loans bearing interest with an interest rate margin less than the interest rate margin applicable to the Closing Date Term Loans and (ii) any repricing of any tranche of Closing Date Term Loans (whether pursuant to an amendment, amendment and restatement, mandatory assignment or otherwise) which reduces the interest rate margin applicable to the Closing Date Term Loans; *provided* that notwithstanding the foregoing, no prepayment, repayment or amendment (or assignment), the primary purpose of which was not lowering the interest rate margin applicable to the Closing Date Term Loans (including, without limitation, the consummation of (a) an Enterprise Transformative Event, (c) a public common Equity Offering, (c) a Change of Control, (d) permitted sale-leaseback transactions, (e) term loan A indebtedness (as determined in good faith by the Borrower Representative), (f) indebtedness that is not U.S. dollar denominated, (g) indebtedness that is not subject to an interest rate that includes a floating rate, and (h) other indebtedness, in the case of this <u>clause (h)</u>, not to exceed an original principal amount equal to the greater of (A) $460,000,000 and (B) 100.0% of Four Quarter Consolidated EBITDA) shall constitute a Repricing Event.

"**Request for Credit Extension**" means (a) with respect to a Borrowing, conversion or continuation of Loans, a Committed Loan Notice and (b) with respect to an L/C Credit Extension, a Letter of Credit Application.

"**Required Delayed Draw Lenders**" means, as of any date of determination, Delayed Draw Lenders holding more than 50.0% of the sum of (a) the aggregate principal amount of Delayed Draw Term Loans and (b) aggregate unused Delayed Draw Commitments; *provided* that the unused Delayed Draw Commitments of, and the portion of the Delayed Draw Term Loans held by (x) any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders and (y) any Affiliate Lenders (other than Debt Fund Affiliates) shall be deemed to have voted in the same proportion as Lenders that are not Affiliate Lenders vote on such matter.

"**Required Lenders**" means, as of any date of determination, Lenders having more than 50.0% of the sum of the (a) Total Outstandings (with the aggregate amount of each Lender's risk participation and funded participation in L/C Obligations being deemed "held" by such Lender for purposes of this definition), (b) aggregate unused Term Commitments and (c) aggregate unused Revolving Credit Commitments; *provided* that the unused Term Commitments of and unused Revolving Credit Commitment of, and the portion of the Total Outstandings held by (x) any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders and (y) any Affiliate Lenders (other than Debt Fund Affiliates) shall be deemed to have voted in the same proportion as Lenders that are not Affiliate Lenders vote on such matter; *provided* that, for purposes of this definition, the outstanding principal amount of Alternative Currency Loans as of any date of determination shall be determined using the Dollar Amount thereof.

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"**Required Revolving Lenders**" means, as of any date of determination, Revolving Credit Lenders holding more than 50.0% of the sum of (a) Total Revolving Credit Outstandings (with the aggregate amount of each Revolving Credit Lender's risk participation and funded participation in L/C Obligations being deemed "held" by such Revolving Credit Lender for purposes of this definition) and (b) aggregate unused Revolving Credit Commitments; *provided* that the unused Revolving Credit Commitment of, and the portion of the Total Revolving Credit Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Revolving Lenders; *provided* that, for purposes of this definition, the outstanding principal amount of Alternative Currency Loans as of any date of determination shall be determined using the Dollar Amount thereof.

"**Resolution Authority**" means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

"**Restricted Investment**" means an Investment other than a Permitted Investment.

"**Restricted Payment**" has the meaning specified in <u>Section</u> <u>7.05</u>.

"**Restricted Subsidiary**" means any Subsidiary of a Person other than an Unrestricted Subsidiary of such Person. Unless otherwise indicated in this Agreement, all references to Restricted Subsidiaries shall mean Restricted Subsidiaries of the Borrowers.

"**Retained Declined Proceeds**" has the meaning specified in <u>Section</u> <u>2.05(c)</u>.

"**Retained Excess Cash Flow Amount**" means, at any date of determination, an amount no less than zero and determined on a cumulative basis, that is equal to the aggregate cumulative sum of Excess Cash Flow that is not required to be applied to made a payment under <u>Section</u> <u>2.05(b)(i)</u> for each fiscal year of the Borrowers, commencing with the fiscal year ending December 31, 2026.

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"**Retired Capital Stock**" has the meaning specified in <u>Section</u> <u>7.05</u>.

"**Return Bid**" has the meaning specified in the definition of "Dutch Auction".

"**Revolving Commitment Increase Lender**" has the meaning specified in <u>Section</u> <u>2.14(e)</u>.

"**Revolving Commitment Period**" means the period from the Closing Date to the Maturity Date described in <u>clause (a)(i)</u> of the definition of Maturity Date.

"**Revolving Credit Borrowing**" means a borrowing under the Revolving Credit Facility consisting of simultaneous Revolving Credit Loans of the same Type and, in the case of SOFR Loans or Alternative Currency Term Rate Loans, having the same Interest Period made by each of the Revolving Credit Lenders pursuant to <u>Section</u> <u>2.01(b)</u>.

"**Revolving Credit Commitment Increase**" has the meaning specified in <u>Section</u> <u>2.14(a)</u>.

"**Revolving Credit Commitments**" means, as to any Revolving Credit Lender, its obligation to (a) make Revolving Credit Loans to the Borrowers pursuant to <u>Section</u> <u>2.01(b)</u> or New Revolving Commitments to the Borrowers established pursuant to <u>Section</u> <u>2.14</u>, (b) make Swing Line Loans to the Borrowers pursuant to <u>Section</u> <u>2.04</u> and (c) purchase participations in L/C Obligations, in an aggregate principal amount and/or Dollar Amount not to exceed the amount set forth under the heading "Revolving Credit Commitment" opposite such Lender's name on <u>Schedule 2.01</u>, or in the Assignment and Assumption pursuant to which such Lender became a party hereto, or in any incremental amendment establishing New Revolving Commitments pursuant to <u>Section</u> <u>2.14</u>, as applicable, as the same may be adjusted from time to time in accordance with this Agreement. The Revolving Credit Commitments shall include all Revolving Credit Commitment Increases, New Revolving Commitments and Specified Refinancing Revolving Credit Commitments. The original Dollar Amount of the Revolving Credit Commitments shall be $400,000,000 on the Closing Date, as such amount may be adjusted from time to time in accordance with the terms of this Agreement; *provided* that, upon the consummation of any Permitted Core Business Disposition, the Dollar Amount of the Revolving Credit Commitments shall be adjusted to an aggregate principal amount equal to the lesser of (x) $400,000,000 and (y) 100.0% of LTM EBITDA, calculated on a Pro Forma Basis to reflect the removal of the Consolidated EBITDA (if any) attributable to the Core Business subject to such Permitted Core Business Disposition.

"**Revolving Credit Facility**" means, at any time, the aggregate amount of the Revolving Credit Lenders' Revolving Credit Commitments in respect of any Revolving Tranche at such time.

"**Revolving Credit Lender**" means, at any time, any Lender that has a Revolving Credit Commitment at such time (and after the termination of all Revolving Credit Commitments, any Lender that holds any Outstanding Amount in respect of Revolving Credit Loans, Swing Line Loans and/or L/C Obligations).

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"**Revolving Credit Loan**" has the meaning specified in <u>Section</u> <u>2.01(b)</u>.

"**Revolving Credit Note**" means a promissory note of the applicable Borrowers payable to any Revolving Credit Lender or its registered assigns, in substantially the form of <u>Exhibit B-2</u> hereto, evidencing the aggregate indebtedness of such applicable Borrowers to such Revolving Credit Lender resulting from the applicable Revolving Credit Loans made by such Revolving Credit Lender.

"**Revolving Tranche**" means (a) the Revolving Credit Facility pursuant to which Revolving Credit Loans, New Revolving Loans or Letters of Credit are made under the Revolving Credit Commitments and (b) any Specified Refinancing Debt constituting revolving credit facility commitments, in each case, including the extensions of credit made thereunder. Additional Revolving Tranches may be added after the Closing Date pursuant to the terms hereof, *e.g.*, New Revolving Commitments and Extended Revolving Commitments.

"**Rollover Equity Contribution**" has the meaning set forth in the definition of "Permitted Change of Control".

"**S&P**" means Standard & Poor's Ratings Services, a Standard & Poor's Financial Services LLC business or any successor to the rating agency business thereof.

"**Sale/Leaseback Transaction**" means an arrangement relating to property now owned or hereafter acquired by any Borrower Party whereby any Borrower Party transfers such property to a Person and any Borrower Party leases it from such Person, other than leases between a Borrower and a Restricted Subsidiary or between Restricted Subsidiaries.

"**Sanctioned Country**" means, at any time, a country, region, or territory that is the subject of a general export, import, financial, investment or other trade-related embargo under any Sanctions Laws and Regulations, which as of the date of this Agreement consist of the so-called Donetsk People's Republic, the so-called Luhansk People's Republic, the Crimea region of Ukraine, Cuba, Iran, North Korea, Syria and the non-government controlled areas of the Kherson and Zaporizhzhia regions of Ukraine.

"**Sanctioned Person**" means, at any time, any Person that is the target of Sanctions Laws and Regulations, including (a) any Person listed in any Sanctions Laws and Regulations-related lists of designated Persons maintained by the U.S. government (including OFAC's Specially Designated Nationals and Blocked Persons List, the U.S. Department of State's list of Debarred Parties, and the U.S. Department of Commerce's Entity List), the United Nations Security Council, His Majesty's Treasury of the United Kingdom or any European Union member state, (b) any Person located, organized, or resident in a Sanctioned Country, and (c) any Person owned or controlled by any Person or Persons described in (a) or (b) above.

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"**Sanctions Laws and Regulations**" means (i) any economic or financial sanctions or other requirements imposed by, or based upon the obligations or authorities set forth in, the U.S. International Emergency Economic Powers Act (50 U.S.C. §§ 1701-1706), the U.S. Trading with the Enemy Act (50 U.S.C. App. §§ 4301 *et seq*.), the Export Administration Act, the Export Administration Regulations, the U.S. Syria Accountability and Lebanese Sovereignty Act, the U.S. Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, the Iran Sanctions Act of 1996, Section 1245 of the National Defense Authorization Act of 2012, all as amended, or any of the foreign assets control regulations (including but not limited to 31 C.F.R., Subtitle B, Chapter V, as amended) or any other law, rule or executive order relating thereto administered by the U.S. Department of the Treasury Office of Foreign Assets Control ("**OFAC**"), the U.S. Department of Commerce, the U.S. Department of State, and any similar law, regulation, or executive order that may be enacted, from time to time, by the United States government and (ii) any economic or financial sanctions or other requirements imposed under similar laws or regulations enacted by the United Nations Security Council, the European Union or any member state thereof or the United Kingdom, or administered, enacted or enforced by the respective governmental institutions or agencies of any of the foregoing, including, without limitation, His Majesty's Treasury of the United Kingdom (as any of the foregoing laws may from time to time be amended, renewed, extended or replaced).

"**SEC**" means the U.S. Securities and Exchange Commission or any governmental authority succeeding to any of its principal functions.

"**Section 2.19 Additional Amendment**" has the meaning specified in <u>Section</u> <u>2.19(c)</u>.

"**Secured Cash Management Agreement**" means any Cash Management Agreement that is entered into by and between any Loan Party or any Restricted Subsidiary and any Cash Management Bank, except for any such Cash Management Agreement designated by the Borrower Representative in writing to the Administrative Agent and the relevant Cash Management Bank as an "unsecured cash management agreement" as of the Closing Date or, if later, on or about the time of entering into such Cash Management Agreement.

"**Secured Hedge Agreement**" means any Swap Contract permitted under <u>Article VII</u> that is entered into by and between any Loan Party or any Restricted Subsidiary and any Hedge Bank, except for any such Swap Contract designated by the Borrower Representative and the applicable Hedge Bank in writing to the Administrative Agent as an "unsecured hedge agreement" as of the Closing Date or, if later, as of the time of entering into such Swap Contract.

"**Secured Obligations**" means all Obligations other than Excluded Swap Obligations.

"**Secured Third Party Letter of Credit**" means any Third Party Letter of Credit permitted under <u>Article VII</u> that is issued by a Third Party Letter of Credit Issuer at the request of any Loan Party or any Restricted Subsidiary, except for any such Third Party Letter of Credit designated by the Borrower Representative and the applicable Third Party Letter of Credit Issuer in writing to the Administrative Agent as an "unsecured letter of credit" as of the Closing Date or, if later, as of the time of issuing such Third Party Letter of Credit.

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"**Secured Parties**" means, collectively, the Administrative Agent, the Collateral Agent, the Lenders (including, for the avoidance of doubt, the Swing Line Lenders and the L/C Issuers), the Hedge Banks to the extent they are party to one or more Secured Hedge Agreements, the Cash Management Banks to the extent they are party to one or more Secured Cash Management Agreements, the Third Party Letter of Credit Issuers to the extent they have issued a Secured Third Party Letter of Credit, and each co-agent or subagent appointed by the Administrative Agent or the Collateral Agent from time to time pursuant to <u>Article IX</u>.

"**Securities Act**" means the U.S. Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder.

"**Security Agreement**" means, collectively, the Security Agreement, dated as of the date hereof, executed by the Loan Parties party thereto, substantially in the form of <u>Exhibit F</u>, together with each other security agreement and security agreement supplement executed and delivered pursuant to <u>Section</u> <u>6.12</u>, <u>6.14</u> or <u>6.16</u>.

"**Security Agreement Supplement**" means the Security Agreement Supplements, as defined in the Security Agreement.

"**SEMS**" means the Superfund Enterprise Management System maintained by the U.S. Environmental Protection Agency.

"**Series LLC**" means any series of a limited liability company (including any protected or registered series) established in accordance with Section 18-215(b) or 18-218 of the Delaware Limited Liability Company Act or a comparable provision of any other Law.

"**Series LP**" means any series of a limited partnership (including any protected or registered series) established in accordance with Section 17-218(b) or 17-221 of the Delaware Limited Partnership Act or a comparable provision of any other Law.

"**Similar Business**" means any business engaged or proposed to be engaged in by the Holding Companies and their Subsidiaries on the Closing Date and any business or other activities that are similar, ancillary, complementary, incidental or related thereto, or an extension, development or expansion of, the businesses in which the Holding Companies and their Subsidiaries are engaged following the Closing Date.

"**SOFR**" means, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator's Website on the immediately succeeding Business Day.

"**SOFR Administrator**" means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

"**SOFR Administrator's Website**" means the website of the Federal Reserve Bank of New York, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

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"**SOFR Borrowing**" means a Borrowing comprising SOFR Loans.

"**SOFR Loan**" shall mean a Loan that bears interest at a rate based on Term SOFR, other than pursuant to <u>clause (c)</u> of the definition of "Base Rate".

"**Solvent**" means, with respect to any Person on any date of determination, that on such date (a) the fair value (on a going concern basis) of the assets of such Person and its Subsidiaries, on a Consolidated basis, exceeds their debts and liabilities, subordinated, contingent or otherwise, on a Consolidated basis, (b) the present fair saleable value (on a going concern basis) of the property of such Person and its Subsidiaries, on a Consolidated basis, is greater than the amount that will be required to pay the probable liability, on a Consolidated basis, of their debts and other liabilities, subordinated, contingent or otherwise, on a Consolidated basis, as such debts and other liabilities become absolute and matured, (c) such Person and its Subsidiaries, on a Consolidated basis, are able to generally pay their debts and liabilities, subordinated, contingent or otherwise, on a Consolidated basis, as such liabilities become absolute and matured and (d) such Person and its Subsidiaries, on a Consolidated basis, are not engaged in, and are not about to engage in, business for which they have unreasonably small capital. The amount of contingent liabilities at any time will be computed as the amount that would reasonably be expected to become an actual and matured liability.

"**SONIA**" means, with respect to any applicable determination date, the Sterling Overnight Index Average Reference Rate published on the second Business Day preceding such date on the applicable Reuters screen page (or such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time); *provided*, *however*, that if such determination date is not a Business Day, SONIA means such rate that applied on the first Business Day immediately prior thereto.

"**SPC**" has the meaning specified in <u>Section</u> <u>10.07(g)</u>.

"**Specified Existing Tranche**" has the meaning specified in <u>Section</u> <u>2.19(a)</u>.

"**Specified Real Property**" means the real property described on <u>Schedule 1.01(b)</u> and other real property owned in fee simple by a Borrower Party from time to time.

"**Specified Refinancing Agent**" has the meaning specified in <u>Section</u> <u>2.18(a)</u>.

"**Specified Refinancing Debt**" has the meaning specified in <u>Section</u> <u>2.18(a)</u>.

"**Specified Refinancing Revolving Credit Commitment**" has the meaning specified in <u>Section</u> <u>2.18(a)</u>.

"**Specified Refinancing Revolving Loans**" means Specified Refinancing Debt constituting revolving loans.

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"**Specified Refinancing Term Commitment**" has the meaning specified in <u>Section</u> <u>2.18(a)</u>.

"**Specified Refinancing Term Loans**" means Specified Refinancing Debt constituting term loans.

"**Specified Transaction**" means any incurrence or repayment of Indebtedness (excluding Indebtedness incurred for working capital purposes other than pursuant to this Agreement) or Investment (including any proposed Investment or acquisition) that results in a Person becoming a Subsidiary, any designation of a Subsidiary as a Restricted Subsidiary or as an Unrestricted Subsidiary, any acquisition or any Disposition that results in a Restricted Subsidiary ceasing to be a Subsidiary of a Borrower, any Investment constituting an acquisition of assets constituting a business unit, line of business or division of another Person or any Disposition of a business unit, line of business or division of any Borrower Party, in each case whether by merger, consolidation, amalgamation or otherwise or any material restructuring of a Borrower or implementation of any initiative not in the ordinary course of business and a Permitted Change of Control.

"**Sponsor**" means (a) prior to a Permitted Change of Control, Arcline Investment Management and/or its Affiliates or associated funds and (b) after a Permitted Change of Control, the New Sponsor and/or its Affiliates or associated funds.

"**Sponsor Model**" means that certain model delivered to the Arrangers prior to January 21, 2025 (as supplemented, updated or otherwise modified from time to time on or prior to the Closing Date).

"**Standard Securitization Undertakings**" means representations, warranties, covenants, indemnities and guarantees of performance entered into by a Borrower or any Subsidiary of a Borrower which the applicable Borrower has determined in good faith to be customary in a Factoring Transaction or Receivables Financing, including, without limitation, those relating to the servicing of the assets of a Receivables Subsidiary, it being understood that any Receivables Repurchase Obligation shall be deemed to be a Standard Securitization Undertaking.

"**Stated Maturity**" means with respect to any security or Indebtedness, the date specified in such security or the documentation governing such Indebtedness as the fixed date on which the final payment of principal of such security or Indebtedness is due and payable, including pursuant to any mandatory redemption provision (but excluding any provision providing for the repurchase of such security or Indebtedness at the option of the holder thereof upon the happening of any contingency unless such contingency has occurred)."**Subject Lien**" has the meaning specified in <u>Section</u> <u>7.02</u>.

"**Subordinated Indebtedness**" means (a) with respect to the Borrowers, any third-party Indebtedness of a Borrower which is by its terms expressly subordinated in right of payment to the Obligations and (b) with respect to any Guarantor, any third-party Indebtedness of such Guarantor which is by its terms expressly subordinated in right of payment to its Guarantee of the Obligations.

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"**Subsidiary**" means, with respect to any Person (1) any corporation, association or other business entity (other than a partnership, joint venture, limited liability company or similar entity) of which more than 50.0% of the total voting power of the Voting Stock is at the time of determination owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person or a combination thereof, (2) any partnership, joint venture, limited liability company or similar entity of which (x) more than 50.0% of the capital accounts, distribution rights, total equity and voting interests or general and limited partnership interests, as applicable, are owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person or a combination thereof, whether in the form of membership, general, special or limited partnership interests or otherwise, and (y) such Person or any Restricted Subsidiary of such Person is a controlling general partner or otherwise controls such entity and (3) for purposes of <u>Section</u> <u>6.01</u>, any Person that is Consolidated in the Consolidated financial statements of the specified Person in accordance with GAAP.

"**Subsidiary Guarantor**" means, collectively, all applicable Guarantors other than the Holding Companies.

"**Subsidiary Guaranty**" means, collectively, the Subsidiary Guaranty made by the Borrowers and the Subsidiary Guarantors in favor of the Administrative Agent on behalf of the Secured Parties, substantially in the form of <u>Exhibit E-2</u>, together with each other guaranty and guaranty supplement delivered pursuant to <u>Section</u> <u>6.12</u> or <u>6.16</u>.

"**Subsidiary Redesignation**" has the meaning given to such term in the definition of "Unrestricted Subsidiary".

"**Supplemental Agent**" has the meaning specified in <u>Section</u> <u>9.14(a)</u>.

"**Supported QFC**" has the meaning specified in <u>Section</u> <u>10.25</u>.

"**Swap Contract**" means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement, including any obligations or liabilities under any such master agreement.

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"**Swap Obligation**" means, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a "swap" within the meaning of section 1a(47) of the Commodity Exchange Act.

"**Swap Termination Value**" means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in <u>clause (a)</u>, the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender).

"**Swing Line Lenders**" means Citibank, in its capacity as a Swing Line Lender hereunder, together with its permitted successors and assigns in such capacity.

"**Swing Line Loan**" means the swing line loan made by the Swing Line Lenders to the Borrowers pursuant to <u>Section</u> <u>2.04</u>.

"**Swing Line Loan Request**" means a Swing Line Loan Request substantially in the form of Exhibit A-3, or such other form as approved by the Administrative Agent (including any form on an electronic platform or electronic transmission system as shall be approved by the Administrative Agent), appropriately completed and signed by a Responsible Officer of the Borrower Representative.

"**Swing Line Note**" means a promissory note in the form of Exhibit B-3, as it may be amended, restated, amended and restated, supplemented or otherwise modified from time to time.

"**Swing Line Sublimit**" means the greater of (a) $100,000,000 and (b) such higher amount as the Borrower Representative and the Administrative Agent may from time to time agree.

"**T2**" means the real time gross settlement system operated by the Eurosystem, or any successor system.

"**TARGET Day**" means any day on which T2 is open for the settlement of payments in Euro.

"**Taxes**" means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"**Term Borrowing**" means a borrowing of the same Type of Term Loan of a single Tranche from all the Lenders having Term Commitments or Term Loans of the respective Tranche on a given date (or resulting from a conversion or conversions on such date) having in the case of SOFR Loans or Alternative Currency Term Rate Loans, the same Interest Period.

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"**Term Commitment**" means, as to each Term Lender, (i) its Initial Term Commitment, (ii) its Term Commitment Increase, (iii) its New Term Commitment or (iv) its Specified Refinancing Term Commitment. The amount of each Lender's Initial Term Commitment is as set forth in the definition thereof and the amount of each Lender's other Term Commitments shall be as set forth in the Assignment and Assumption, or in the amendment or agreement relating to the respective Term Commitment Increase, New Term Commitment or Specified Refinancing Term Commitment pursuant to which such Lender shall have assumed its Term Commitment, as the case may be, as such amounts may be adjusted from time to time in accordance with this Agreement.

"**Term Commitment Increase**" has the meaning specified in <u>Section</u> <u>2.14(a)</u>.

"**Term CORRA**" means, for any calculation with respect to a Term CORRA Loan or Canadian Prime Rate Loan, the Term CORRA Reference Rate for a tenor comparable to the applicable Interest Period on the day (such day, the "Periodic Term CORRA Determination Day") that is two (2) Business Days prior to the first day of such Interest Period, as such rate is published by the Term CORRA Administrator; *provided*, *however*, that if as of 1:00 p.m. (Toronto time) on any Periodic Term CORRA Determination Day the Term CORRA Reference Rate for the applicable tenor has not been published by the Term CORRA Administrator and a Benchmark Replacement Date with respect to the Term CORRA Reference Rate has not occurred, then Term CORRA will be the Term CORRA Reference Rate for such tenor as published by the Term CORRA Administrator on the first preceding Business Day for which such Term CORRA Reference Rate for such tenor was published by the Term CORRA Administrator so long as such first preceding Business Day is not more than five (5) Business Days prior to such Periodic Term CORRA Determination Day; *provided* that, if Term CORRA as so determined would be less than the Floor, then Term CORRA shall be deemed to be the Floor.

"**Term CORRA Administrator**" means CanDeal Benchmark Administration Services Inc., TSX Inc., or any successor administrator.

"**Term CORRA Loan**" shall mean a Loan that bears interest at a rate based on Term CORRA.

"**Term CORRA Reference Rate**" means the forward-looking term rate based on CORRA.

"**Term Facility**" means a facility in respect of any Term Loan Tranche (including the Delayed Draw Facility and any Term Commitment Increase with respect to any Term Loan Tranche), as the context may require.

"**Term Lender**" means (a) at any time on or prior to the Closing Date, any Lender that has an Initial Term Commitment at such time and (b) at any time after the Closing Date, any Lender that holds Term Loans and/or Term Commitments at such time.

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"**Term Loan**" means an advance made by any Term Lender under any Term Facility, including the Initial Term Loans and Delayed Draw Term Loans.

"**Term Loan Tranche**" means the respective facility and commitments utilized in making (or, where applicable, conversion of) Term Loans hereunder. Additional Term Loan Tranches may be added after the Closing Date, pursuant to the terms hereof, *e.g.*, New Term Loans, Specified Refinancing Term Loans, New Term Commitments, Extended Term Loans and Specified Refinancing Term Commitments.

"**Term Note**" means a promissory note of the Borrowers payable to any Term Lender or its registered assigns, in substantially the form of <u>Exhibit B-1</u> hereto, evidencing the indebtedness of the Borrowers to such Term Lender resulting from the Term Loans under the same Term Loan Tranche made or held by such Term Lender.

"**Term SOFR**" means,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for any calculation with respect to a SOFR Loan, the Term SOFR Reference Rate for a tenor comparable to the applicable Interest Period on the day (such day, the "<u>Periodic Term SOFR Determination Day</u>") that is two (2) U.S. Government Securities Business Days prior to the first day of such Interest Period, as such rate is published by the Term SOFR Administrator; *provided*, *however*, that if as of 5:00 p.m. (New York City time) on any Periodic Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Periodic Term SOFR Determination Day, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for any calculation with respect to a Base Rate Loan on any day, Term SOFR Reference Rate for a tenor of one month on the day (such day, the "<u>Base Rate Term SOFR Determination Day</u>") that is two (2) U.S. Government Securities Business Days prior such day, as such rate is published by the Term SOFR Administrator; *provided*, *however*, that if as of 5:00 p.m. (New York City time) on any Base Rate Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Base Rate Term SOFR Determination Day;

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*provided* that, if Term SOFR as so determined would be less than the Floor, then Term SOFR shall be deemed to be the Floor.

"**Term SOFR Administrator**" means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Administrative Agent in its reasonable discretion in consultation with the Borrower Representative).

"**Term SOFR Reference Rate**" means the per annum forward-looking term rate based on SOFR.

"**Termination Conditions**" means, collectively, (a) the payment in full in cash of the Obligations (other than (i) contingent indemnification obligations as to which no claim has been asserted, (ii) Obligations under Secured Hedge Agreements as to which alternative arrangements acceptable to the Hedge Bank thereunder have been made, (iii) Obligations under Secured Cash Management Agreements as to which alternative arrangements acceptable to the Cash Management Bank thereunder have been made, (iv) Letters of Credit, and (v) Obligations under Secured Third Party Letters of Credit as to which alternative arrangements acceptable to the Third Party Letter of Credit Issuer thereunder have been made) and (b) the termination of the Commitments and the termination or expiration of all Letters of Credit under this Agreement (unless backstopped or Cash Collateralized in an amount (not exceeding 103% of the maximum drawable amount of any such Letter of Credit) and a manner reasonably acceptable to the L/C Issuers and the Borrower Representative.

"**Test Period**" means (i) for purposes of the definition of "Applicable Commitment Fee", "Applicable Rate" and the Financial Covenant (other than for the purpose of determining compliance with the Financial Covenant on a Pro Forma Basis), the four consecutive fiscal quarters of the Borrowers then last ended and for which financial statements for each such quarter or fiscal year in such period have been delivered to the Administrative Agent, and (ii) for all other purposes of the Loan Documents, at the election of the Borrowers, either: (x) the four consecutive fiscal quarters of the Borrowers then last ended for which financial statements for each such quarter or fiscal year in such period have been delivered or (y) the most recent period for which quarterly financial statements are internally available; *provided* that, with respect to this <u>clause (ii)(y)</u>, at the option of the Borrowers, such tests or conditions may instead be determined based on the most recent twelve consecutive month period as to which financial statements of the Borrowers are internally available as of such date of determination (this clause (ii), "**LTM EBITDA**"); *provided*, *further*, that at all times prior to the first delivery of financial statements pursuant to <u>Section</u> <u>6.01(a)</u> or <u>(b)</u>, this definition shall be applied based on the period of four (4) consecutive Fiscal Quarters most recently ended for which financial statements were delivered pursuant to <u>Section</u> <u>4.01</u> or are otherwise internally available. Any determination in this definition of whether financial statements are internally available shall be made by the Borrower Representative in good faith.

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"**Third Party Letter of Credit**" means any letter of credit issued, renewed, extended or amended not under this Agreement. A Third Party Letter of Credit may be a standby, documentary, commercial or trade letter of credit, letter of guarantee, bank guarantee, bankers' acceptance, performance bond, surety bond or other similar instrument.

"**Third Party Letter of Credit Issuer**" means any Person (a) that (i) is, at the time it issues, renews, extends or amends a Third Party Letter of Credit, an Arranger, Lender or an Agent or an Affiliate of an Arranger, Lender or an Agent, (ii) in the case of any Third Party Letter of Credit in effect on or prior to the Closing Date, is, as of the Closing Date or within 45 days thereafter, an Arranger, Lender or an Agent or an Affiliate of an Arranger, Lender or an Agent and the issuer of a Third Party Letter of Credit, or (iii) within 45 days after the time it issues, renews, extends or amends a Third Party Letter of Credit, becomes an Arranger, Lender or an Affiliate of an Arranger, Lender or an Agent or (b) that (i) has been designated by the Borrower Representative in writing to the Administrative Agent as a "Third Party Letter of Credit Issuer" for purposes of this Agreement and the other Loan Documents and (ii) that shall have appointed the Administrative Agent and the Collateral Agent as its agents under the applicable Loan Documents and agreed to be bound by the provisions of Article IX as if it were a Lender pursuant to a writing substantially in the form of <u>Exhibit M</u> or in such other form or manner as is reasonably satisfactory to the Borrower Representative and the Administrative Agent.

"**Threshold Amount**" means the greater of (x) $161,000,000 and (y) 35.0% of Four Quarter Consolidated EBITDA.

"**Total Outstandings**" means the aggregate Outstanding Amount of all Loans and all L/C Obligations.

"**Total Revolving Credit Outstandings**" means the aggregate Outstanding Amount of all Revolving Credit Loans, Swing Line Loans and L/C Obligations.

"**Tranche**" means any Term Loan Tranche or any Revolving Tranche.

"**Transaction Commitment Date**" has the meaning specified in <u>Section</u> <u>1.02(i)</u>.

"**Transaction Costs**" has the meaning given to such term in the definition of "Transactions".

"**Transactions**" means (a) the Borrowers obtaining the initial Facilities hereunder (including, the borrowing of the initial Term Loans hereunder on the Closing Date), (b) the consummation of the Closing Date Refinancing, (c) distributions and other Restricted Payments to any of the Holding Companies, the proceeds of which will be used (i) to repay certain bridge facilities made available by the Sponsor and (ii) for distributions to the Sponsor and other investors and (d) the payment of all premiums, fees, costs and expenses incurred in connection with the transactions described in the foregoing provisions of this definition or in connection with the negotiation, execution, delivery and performance of the Loan Documents and the transactions contemplated thereby, including to fund any original issue discount, upfront fees or legal fees and to grant and perfect any security interests (this <u>clause (d)</u>, the "**Transaction Costs**").

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"**Type**" means, with respect to a Loan, its character as a Base Rate Loan, an Alternative Currency Daily Rate Loan, a SOFR Loan or an Alternative Currency Term Rate Loan.

"**UK Financial Institution**" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"**UK Resolution Authority**" means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"**Unadjusted Benchmark Replacement**" means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

"**Undisclosed Administration**" means in relation to a Lender or its direct or indirect parent company the appointment of an administrator, provisional liquidator, conservator, receiver, interim receiver, trustee, monitor, custodian or other similar official by a supervisory authority or regulator under or based on the law in the country where such Person is subject to home jurisdiction supervision if applicable law requires that such appointment is not to be publicly disclosed.

"**Unfunded Advances/Participations**" means (a) with respect to the Administrative Agent, the aggregate amount, if any (i) made available to the Borrowers on the assumption that each Lender has made available to the Administrative Agent such Lender's share of the applicable Borrowing available to the Administrative Agent as contemplated by <u>Section</u> <u>2.12(b)</u> and (ii) with respect to which a corresponding amount shall not in fact have been returned to the Administrative Agent by the Borrowers or made available to the Administrative Agent by any such Lender and (b) with respect to any L/C Issuer, the aggregate amount, if any, of amounts drawn under Letters of Credit in respect of which a Revolving Credit Lender shall have failed to make Revolving Credit Loans or L/C Advances to reimburse such L/C Issuer pursuant to <u>Section</u> <u>2.03(d)</u>.

"**Unfunded Pension Liability**" means the excess of a Plan's benefit liabilities under Section 4001(a) of ERISA over the current value of such Plan's assets, determined in accordance with assumptions used for funding the Plan pursuant to Section 412 of the Code for the applicable plan year.

"**Uniform Commercial Code**" or "**UCC**" means the Uniform Commercial Code as the same may from time to time be in effect in the State of New York or the Uniform Commercial Code (or similar code or statute) of another jurisdiction, to the extent it may be required to apply to any item or items of Collateral.

"**United States**" and "**U.S.**" mean the United States of America.

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"**Unpaid Amount**" has the meaning specified in <u>Section</u> <u>7.05</u>.

"**Unreimbursed Amount**" has the meaning specified in <u>Section</u> <u>2.03(d)(i)</u>.

"**Unrestricted Subsidiary**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) any Subsidiary of a Borrower (other than a Borrower or any direct or indirect parent of a Borrower) that at the time of determination shall be designated an Unrestricted Subsidiary by the Borrower Representative in the manner provided below; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) any Subsidiary of an Unrestricted Subsidiary (other than a Borrower or any direct or indirect parent of a Borrower).

The Borrower Representative may designate any Subsidiary of a Borrower (including any existing Subsidiary and any newly acquired or newly formed Subsidiary of a Borrower, but excluding any Borrower or any direct or indirect parent of the Borrower) to be an Unrestricted Subsidiary; *provided*, *however*, that immediately after giving effect to such designation (x) no Event of Default pursuant to Sections 8.01(a), (f) or (g) shall have occurred and be continuing as a result of such designation and (y) such Subsidiary does not own, directly or indirectly, any Equity Interests or hold any Indebtedness of, or hold a lien on any property of, any Loan Party or any other Restricted Subsidiary (other than a Restricted Subsidiary being designated as a Restricted Subsidiary at such time). The designation of any Restricted Subsidiary as an Unrestricted Subsidiary after the Closing Date shall constitute an Investment by the applicable Borrower (or its applicable Restricted Subsidiary) therein at the date of designation in an amount equal to the Fair Market Value of the applicable Borrower's or the applicable Restricted Subsidiary's investment therein.

The Borrower Representative may designate any Unrestricted Subsidiary to be a Restricted Subsidiary (a **"Subsidiary Redesignation**"). Any Indebtedness of such Subsidiary and any Liens encumbering its assets at the time of such designation shall be deemed newly incurred or established, as applicable, at such time.

Notwithstanding the foregoing, (i) none of the Holding Companies, the Borrowers or any of their respective Restricted Subsidiaries shall transfer or license (on an exclusive basis) any Material Intellectual Property to any Unrestricted Subsidiary (*provided* that, for the avoidance of doubt, this <u>clause (i)</u> shall not restrict the Holding Companies, the Borrowers or any of their respective Restricted Subsidiaries from licensing intellectual property to the extent otherwise permitted under this Agreement, in each case other than an exclusive license), and (ii) no Restricted Subsidiary that owns (or is the exclusive licensee of) any Material Intellectual Property, or that owns the Equity Interests of any Restricted Subsidiary that owns (or is the exclusive licensee of) any Material Intellectual Property may be designated as an Unrestricted Subsidiary.

For the avoidance of doubt, a Borrower may not be designated or constituted as an Unrestricted Subsidiary at any time; *provided*, *however*, that any Co-Borrower that has ceased to be a Co-Borrower pursuant to <u>Section</u> <u>11.03</u> prior to the effectiveness of such designation may be designated as an Unrestricted Subsidiary (*provided* that such designation is otherwise permitted hereunder).

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"**U.S. Government Securities Business Day**" means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

"**U.S. Person**" means any Person that is a "United States person" as defined in Section 7701(a)(30) of the Code.

"**U.S. Subsidiary**" means any Subsidiary of the Borrowers that is organized under the laws of the United States, any state thereof or the District of Columbia.

"**U.S. Tax Compliance Certificate**" has the meaning assigned to such term in <u>Section</u> <u>3.01(h)(ii)(B)(3)</u>.

"**Voting Stock**" of any Person as of any date means the Capital Stock of such Person that is at the time entitled to vote (without regard to the occurrence of any contingency) in the election of the Board of Directors of such Person.

"**Weighted Average Life to Maturity**" means, when applied to any Indebtedness or Disqualified Stock or Preferred Stock, as the case may be, at any date, the number of years (and/or portion thereof) obtained by dividing: (a) the sum of the products obtained by multiplying (i) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect of such Indebtedness or redemption or similar payment, in respect of such Disqualified Stock or Preferred Stock, by (ii) the number of years (calculated to the nearest onetwelfth) that will elapse between such date and the making of such payment; by (b) the then outstanding principal amount of such Indebtedness.

"**Wholly Owned Restricted Subsidiary**" means any Wholly Owned Subsidiary that is a Restricted Subsidiary.

"**Wholly Owned Subsidiary**" of any Person means a direct or indirect Subsidiary of such Person 100.0% of the outstanding Capital Stock or other ownership interests of which (other than directors' qualifying shares or shares or interests required to be held by foreign nationals or other third parties to the extent required by applicable law) shall at the time be owned by such Person or by one or more Wholly Owned Subsidiaries of such Person.

"**Withholding Agent**" means any Loan Party and the Administrative Agent.

"**Working Capital**" means, with respect to the Borrower Parties on a Consolidated basis, Consolidated Current Assets *minus* Consolidated Current Liabilities.

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"**Write-Down and Conversion Powers**" means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the BailIn Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that Person or any other Person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

Section 1.02 <u>Other Interpretive Provisions</u>. With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The meanings of defined terms are equally applicable to the singular and plural forms of the defined terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The words "herein," "hereto," "hereof" and "hereunder" and words of similar import when used in any Loan Document shall refer to such Loan Document as a whole and not to any particular provision thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) References in this Agreement to an Exhibit, Schedule, Article, Section, clause or subclause refer (A) to the appropriate Exhibit or Schedule to, or Article, Section, clause or subclause in this Agreement or (B) to the extent such references are not present in this Agreement, to the Loan Document in which such reference appears.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The term "including" is by way of example and not limitation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The term "documents" includes any and all instruments, documents, agreements, certificates, notices, reports, financial statements and other writings, however evidenced, whether in physical or electronic form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Any reference herein to any Person shall be construed to include such Person's successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In the computation of periods of time from a specified date to a later specified date, the word "from" means "from and including;" the words "to" and "until" each mean "to but excluding;" and the word "through" means "to and including."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) With respect to any (x) Investment or acquisition, merger, amalgamation or similar transaction or Disposition that has been definitively agreed to or publicly announced, (y) repayment, repurchase or refinancing of Indebtedness, Disqualified Stock or Preferred Stock with respect to which a notice of repayment (or similar notice), which may be conditional, has been delivered or (z) Permitted Change of Control (each, a "**Limited Condition Transaction**"), in each case for purposes of determining:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) whether any Indebtedness (including Acquired Indebtedness), Disqualified Stock or Preferred Stock that is being Incurred in connection with such Limited Condition Transaction is permitted to be incurred in compliance with <u>Article II</u> or <u>Section</u> <u>7.01</u>, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) whether any Lien being Incurred in connection with such Limited Condition Transaction or to secure any such Indebtedness is permitted to be Incurred in accordance with <u>Section</u> <u>7.02</u> or the definition of "Permitted Liens";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) whether any other transaction or action undertaken or proposed to be undertaken in connection with such Limited Condition Transaction (including any Restricted Payments, Dispositions, fundamental changes or designations of Restricted Subsidiaries or Unrestricted Subsidiaries) complies with the covenants or agreements contained in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) any calculation of the ratios, tests, baskets or financial metrics, including Consolidated Cash Interest Expense, Consolidated EBITDA, Consolidated First Lien Net Leverage Ratio, Consolidated Interest Coverage Ratio, Consolidated Interest Expense, Consolidated Net Income, Consolidated Senior Secured Net Leverage Ratio, Consolidated Total Assets, Consolidated Total Net Leverage Ratio, Four Quarter Consolidated EBITDA, Pro Forma Cost Savings and/or Minimum Permitted Change of Control Equity Contribution and baskets determined by reference to Consolidated EBITDA, Consolidated Net Income, Consolidated Total Assets or Four Quarter Consolidated EBITDA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) whether a Default or Event of Default exists;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) other than in connection with any L/C Credit Extension or any Revolving Credit Borrowing with respect to the Revolving Credit Commitments that exist on the Closing Date, whether any Default or Event of Default (or any specified Default or Event of Default) has occurred, is continuing or would result from such Limited Condition Transaction and any related transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) other than in connection with any L/C Credit Extension or any Revolving Credit Borrowing with respect to the Revolving Credit Commitments that exist on the Closing Date, whether any representations and warranties (or any specified representations and warranties) are true and correct; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) whether any condition precedent to the Limited Condition Transaction or any related transaction or action, including the Incurrence of Indebtedness (including Acquired Indebtedness), Disqualified Stock, Preferred Stock or Liens, in each case, that is being Incurred in connection with such Limited Condition Transaction is satisfied,

at the option of the Borrower Representative, the date that the definitive agreement (or other relevant definitive documentation) for or public announcement of such Limited Condition Transaction is entered into or the date of any notice, which may be conditional

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(the "**Transaction Commitment Date**") may be used as the applicable date of determination, as the case may be, in each case with such pro forma adjustments as are appropriate and consistent with the pro forma adjustment provisions set forth in the definition of "Pro Forma Basis" or "Consolidated EBITDA". For the avoidance of doubt, if the Borrower Representative elects to use the Transaction Commitment Date as the applicable date of determination in accordance with the foregoing, (a) any fluctuation or change in (i) the Consolidated Cash Interest Expense, Consolidated EBITDA, Consolidated First Lien Net Leverage Ratio, Consolidated Interest Coverage Ratio, Consolidated Interest Expense, Consolidated Net Income, Consolidated Senior Secured Net Leverage Ratio, Consolidated Total Assets, Consolidated Total Net Leverage Ratio, Four Quarter Consolidated EBITDA, Pro Forma Cost Savings and/or total consolidated pro forma gross debt and equity capitalization of the Borrower Parties and (ii) the applicable exchange rate utilized in calculating compliance with any dollarbased provision of this Agreement, from the Transaction Commitment Date to the date of consummation of such Limited Condition Transaction, will not be taken into account for purposes of determining whether any Indebtedness or Lien that is being incurred in connection with such Limited Condition Transaction, or in connection with compliance by any Holding Company or any Borrower Party with any other provision of the Loan Documents or any other transaction undertaken in connection with such Limited Condition Transaction, is permitted to be incurred, (b) for purposes of determining compliance with any provision which requires that no Default, Event of Default or specified Default or Event of Default, as applicable, has occurred, is continuing or would result from any such Limited Condition Transaction, such condition shall be deemed satisfied so long as no Default, Event of Default or specified Default or Event of Default, as applicable, exists on the Transaction Commitment Date, (c) for purposes of determining whether the bring down of representations and warranties (or specified representations and warranties) in connection with any such Limited Condition Transaction are true and correct, such condition shall be deemed satisfied so long as such representations and warranties, as applicable, are true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) on the Transaction Commitment Date, and (d) until such Limited Condition Transaction is consummated or such definitive agreements (or other relevant definitive documentation) are terminated (or conditions in any conditional notice can no longer be met or public announcements with respect thereto are withdrawn), such Limited Condition Transaction and all transactions proposed to be undertaken in connection therewith (including the incurrence of Indebtedness and Liens) will be given pro forma effect when determining compliance of other transactions (including the incurrence of Indebtedness and Liens unrelated to such Investment, acquisition or repayment, repurchase or refinancing of Indebtedness) that are consummated after the Transaction Commitment Date and on or prior to the date of consummation of such Investment, acquisition or repayment, repurchase or refinancing of Indebtedness and any such transactions (including any incurrence of Indebtedness and the use of proceeds thereof) will be deemed to have occurred on the date the definitive agreements (or other relevant definitive documentation) are entered into or public announcement is made and deemed to be outstanding thereafter for purposes of calculating any baskets or ratios under the Loan Documents after the date of such agreement and before the date of consummation of such Limited Condition Transaction; *provided* that, if financial statements for one or more

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subsequent Test Periods shall have become available, prior to the consummation of the applicable Limited Condition Transaction, the Borrower Representative may elect, in its sole discretion, to re-determine availability under any applicable ratios, tests, baskets or financial metrics, for purposes of <u>clauses (1)</u> through <u>(3)</u> (in each case, to the extent such compliance requires the calculation of any ratios, tests, baskets or financial metrics) and <u>clause (4)</u> above on the basis of such financial statements, in which case, such date of redetermination shall thereafter be deemed to be the applicable Transaction Commitment Date of such ratio, test, basket or financial metric for purposes of such clauses. For the avoidance of doubt, the Borrowers shall not be required to give effect to prospective pricing "flex" or similar rights that have not been exercised on or prior to the Transaction Commitment Date for purposes of calculating any ratio, test, basket or financial metric in connection with this <u>Section</u> <u>1.02(i)</u>.

For purposes hereof, the "**Maximum Fixed Repurchase Price**" of any Disqualified Stock or Preferred Stock that does not have a fixed repurchase price shall be calculated in accordance with the terms of such Disqualified Stock or Preferred Stock as if such Disqualified Stock or Preferred Stock were purchased on any date on which Consolidated Funded Indebtedness shall be required to be determined pursuant to this Agreement, and if such price is based upon, or measured by, the fair market value of such Disqualified Stock or Preferred Stock, such fair market value shall be determined reasonably and in good faith by the Borrower Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) For the purposes of <u>Sections 2.05(b)(ii)</u>, <u>6.12</u>, <u>7.03</u>, <u>7.04</u> and <u>7.05</u>, an allocation of assets to a division of a Restricted Subsidiary that is a limited liability company, or an allocation of assets to a series of a Restricted Subsidiary that is a limited liability company, shall be treated as a transfer of assets from one Restricted Subsidiary to another Restricted Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) If at any time any action or transaction meets the criteria of one or more than one of the categories of exceptions, thresholds or baskets set forth in <u>Article VII</u> or any definition used therein, the Borrowers may divide, classify and/or designate such action or transaction (or any portion thereof), and later (on one or more occasions) may re-divide, re-classify and/or re-designate such action or transaction (or any portion thereof), as consummated in reliance on one or more of such exceptions, thresholds and baskets as the Borrowers may determine in their sole discretion from time to time, including by re-dividing, re-classifying and/or re-designating any action or transaction originally consummated in reliance on one or more fixed exceptions, thresholds or baskets ("**fixed baskets**") as consummated in reliance on any available incurrence-based exception, threshold or basket ("**incurrence-based baskets**") available at the time of such re-division, reclassification and/or re-designation (for the avoidance of doubt, which determination shall be made without duplication of such applicable action or transaction to be re-divided, re-classified and/or re-designated) and if any ratio or financial test set forth in any applicable incurrence-based basket would be satisfied at any time after consummation of such action or transaction, such re-division, re-classification and/or re-designation shall be deemed to have automatically occurred if not elected by the Borrowers (*provided* that all Indebtedness under this Agreement Incurred on or after the Closing Date shall be deemed to have been Incurred pursuant to <u>Section</u> <u>7.01(a))</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) If any fixed baskets are intended to be utilized together with any incurrence-based baskets in any action or transaction, (i) compliance with or satisfaction of any applicable financial ratios or tests for such action or transaction (or any portion thereof) to be consummated under any incurrence-based baskets shall first be calculated without giving effect to amounts being utilized pursuant to any fixed baskets or any revolving credit loans incurred substantially concurrently with such action or transaction, but giving full Pro Forma Effect to all applicable and related transactions (including, subject to the foregoing with respect to fixed baskets, any incurrence and repayments of Indebtedness) and all other permitted pro forma adjustments, and (ii) thereafter, incurrence of the portion of such action or transaction to be consummated under any fixed baskets shall be calculated. No effect shall be given to any concurrent or substantially simultaneous borrowing under any Revolving Credit Facility in the calculation of any incurrence-based baskets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) All references to "in the ordinary course of business" of any Holding Company or any Borrower Party means (i) in the ordinary course of business of, or in furtherance of an objective that is in the ordinary course of business of such Holding Company or such Borrower Party, as applicable, (ii) customary and usual in the industry or industries of the Holding Companies and the Borrower Parties in the United States or any other jurisdiction in which the Holding Companies or any Borrower Party does business, as applicable, or (iii) generally consistent with the past or current practice of such Holding Company or such Borrower Party, as applicable, or any similarly situated businesses in the United States or any other jurisdiction in which any Holding Company or any Borrower Party does business, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) All references to "knowledge" of any Loan Party or a Restricted Subsidiary means the actual knowledge of a Responsible Officer of such Loan Party or Restricted Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Notwithstanding anything to the contrary in this Agreement and the other Loan Documents, all of the Transactions are expressly permitted under this Agreement and the other Loan Documents and without using or reducing any baskets or caps set forth in this Agreement or any other Loan Document. All schedules to (and disclosures pursuant to the representations, warranties and certificates made or deemed made on the Closing Date in) the Loan Documents entered into and delivered by the Persons party thereto on the Closing Date shall be deemed to be effective immediately after giving effect to the consummation of the Transactions on the Closing Date.

Section 1.03 <u>Accounting Terms</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All financial statements and all financial data required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP, as in effect from time to time, and all terms of an accounting or financial nature shall be construed and interpreted in accordance with GAAP, as in effect on the date hereof. Notwithstanding anything to the contrary above or elsewhere in this Agreement, unless the Borrower Representative elects otherwise, all obligations of any Person that are or would have been treated as operating leases for purposes of GAAP prior to the issuance by the Financial Accounting Standards Board on February 25, 2016 of an Accounting Standards Update

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(the "**ASU**") shall continue to be accounted for as operating leases (and not be treated as financing or capital lease obligations or Indebtedness) for purposes of all financial definitions, calculations and deliverables under this Agreement or any other Loan Document (including the calculation of Capitalized Lease Obligation, Consolidated Cash Interest Expense, Consolidated Current Liabilities, Consolidated EBITDA, Consolidated Interest Expense, Consolidated Net Income, Four Quarter Consolidated EBITDA and Indebtedness) (whether or not such operating lease obligations were in effect on such date) notwithstanding the fact that such obligations are required in accordance with the ASU or any other change in accounting treatment or otherwise (on a prospective or retroactive basis or otherwise) to be treated as or to be recharacterized as financing or capital lease obligations or otherwise accounted for as liabilities in financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If at any time any change in GAAP or the application thereof would affect the computation or interpretation of any financial ratio, basket, requirement or other provision set forth in any Loan Document, and either the Borrower Representative or the Required Lenders shall so request, the Administrative Agent and the Borrower Representative shall negotiate in good faith to amend such ratio, basket, requirement or other provision to preserve the original intent thereof in light of such change in GAAP or the application thereof (subject to the approval of the Required Lenders, such consent not to be unreasonably withheld, conditioned or delayed (which shall be deemed granted so long as the Administrative Agent has not received written notice of objection to such amendment from Lenders comprising Required Lenders by the fifth (5th) Business Day after any such proposed amendment has been posted to all Lenders) (provided that any change affecting the computation of the ratio set forth in <u>Section</u> <u>7.08</u> shall be subject solely to the approval of the Required Revolving Lenders (not to be unreasonably withheld, conditioned or delayed) and the Borrower Representative); *provided* that, until so amended, (i) such ratio, basket, requirement or other provision shall continue to be computed or interpreted in accordance with GAAP or the application thereof prior to such change therein or (ii) the Borrower Representative may elect to fix GAAP (for purposes of such ratio, basket, requirement or other provision) as of another later date notified in writing to the Administrative Agent from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary contained herein, all such financial statements shall be prepared, and all financial covenants contained herein or in any other Loan Document shall be calculated, in each case, without giving effect to any election under FASB ASC 825 (or any similar accounting principle) permitting a Person to value its financial liabilities at the fair value thereof.

Section 1.04 <u>Rounding</u>. Any financial ratios required to be maintained by the Borrowers, or satisfied in order for a specific action to be permitted, under this Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).

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Section 1.05 <u>References to Agreements and Laws</u>. Unless otherwise expressly provided herein, (a) references to Organization Documents, agreements (including the Loan Documents) and other contractual instruments shall be deemed to include all subsequent amendments, restatements, extensions, supplements and other modifications thereto, but only to the extent that such amendments, restatements, extensions, supplements and other modifications are permitted by any Loan Document and (b) references to any Law shall include all statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting such Law.

Section 1.06 <u>Times of Day</u>. Unless otherwise specified, all references herein to times of day shall be references to New York City time (daylight savings or standard, as applicable).

Section 1.07 <u>Timing of Payment or Performance</u>. When the payment of any obligation or the performance of any covenant, duty or obligation is stated to be due or performance required on a day which is not a Business Day, the date of such payment (other than as specifically provided in <u>Section</u> <u>2.12</u> or as described in the definition of "Interest Period") or performance shall extend to the immediately succeeding Business Day.

Section 1.08 <u>Currency Equivalents Generally</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any amount specified in this Agreement (other than in <u>Articles II</u>, <u>IX</u> and <u>X</u> or as set forth in <u>clause (b)</u> of this <u>Section</u> <u>1.08</u>) or any of the other Loan Documents to be in Dollars shall also include the equivalent of such amount in any currency other than Dollars, such equivalent amount (the "**Agent's Spot Rate of Exchange**") to be determined at the rate of exchange for the purchase of Dollars with the Alternative Currency or other currency in the London foreign exchange market at or about 11:00 a.m. London time (or New York City time, as applicable) on a particular day as displayed by ICE Data Services as the "ask price" or as displayed on such other information service which publishes that rate of exchange from time to time in place of ICE Data Services (or if such service ceases to be available, the equivalent of such amount in dollars as determined by reference to such other publicly available service for displaying exchange rates as may be agreed upon by the Administrative Agent and the Borrowers, or, in the absence of such agreement, such rate shall instead be the arithmetic average of the spot rates of exchange of the Administrative Agent in the market where its foreign currency exchange operations in respect of such currency are then being conducted, at or about 10:00 a.m. (New York City time) on such date for the purchase of Dollars for delivery two Business Days later); *provided* that if any basket is exceeded solely as a result of fluctuations in applicable currency exchange rates after the last time such basket was utilized, such basket will be deemed not to have been exceeded solely as a result of such fluctuations in currency exchange rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of determining the Consolidated First Lien Net Leverage Ratio, the Consolidated Interest Coverage Ratio, the Consolidated Senior Secured Net Leverage Ratio and the Consolidated Total Net Leverage Ratio, amounts denominated in a currency other than Dollars will be converted to Dollars for the purposes of (i) testing the Financial Covenant, at the Exchange Rate as of the last day of the fiscal quarter for which such measurement is being made, and (ii) calculating the Consolidated First Lien Net Leverage

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Ratio (other than for the purposes of determining compliance with <u>Section</u> <u>7.08</u>), the Consolidated Interest Coverage Ratio, the Consolidated Senior Secured Net Leverage Ratio and the Consolidated Total Net Leverage Ratio, at the Exchange Rate as of the date of determination, and will, in the case of Indebtedness and Consolidated Funded Indebtedness, be the weighted average exchange rates used for determining Consolidated EBITDA for the relevant period; *provided* that if any Borrower Party has entered into any currency Swap Contracts in respect of any borrowings, the Dollar Amount of such borrowings shall be determined by first taking into account the effects of that currency Swap Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent shall determine the Dollar Amount of each Revolving Credit Loan denominated in an Alternative Currency and L/C Obligation in respect of Letters of Credit denominated in an Alternative Currency (i) for Revolving Credit Loans, as of the first day of each Interest Period applicable thereto, (ii) upon the issuance and increase of any Letter of Credit denominated in an Alternative Currency and (iii) shall, on a semi-annual basis, promptly notify the applicable Borrower and the Revolving Credit Lenders of each Dollar Amount so determined by it. Each such determination shall be based on the Exchange Rate on the date of the related Committed Loan Notice for purposes of the initial such determination for any Revolving Credit Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary in this Agreement, (i) any representation or warranty that would be untrue or inaccurate, (ii) any undertaking that would be breached or (iii) any event that would constitute a Default or an Event of Default, in each case, solely as a result of fluctuations in applicable currency exchange rates, shall be deemed not to be untrue, inaccurate, breached or so constituted, as applicable, solely as a result of such fluctuations in currency exchange rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Wherever in this Agreement in connection with a Borrowing, conversion, continuation or prepayment of a SOFR Loan or Alternative Currency Loans or the issuance, amendment or extension of a Letter of Credit, an amount, such as a required minimum or multiple amount, is expressed in Dollars, but such Borrowing, SOFR Loan, or Alternative Currency Loans or Letter of Credit is denominated in an Alternative Currency such amount shall be the relevant Dollar Amount of such Alternative Currency (rounded to the nearest unit of such Alternative Currency, with 0.5 of a unit being rounded upward), as determined by the Administrative Agent or the L/C Issuer, as the case may be.

Section 1.09 <u>Letter of Credit Amounts</u>. Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the stated Dollar Amount of such Letter of Credit in effect at such time after giving effect to any expiration periods applicable thereto; *provided*, *however*, that (i) if any presentation of drawing documents shall have been made on or prior to the expiration date of such Letter of Credit and the applicable L/C Issuer shall not yet have honored such drawing or given notice of dishonor, the amount of such Letter of Credit that is the subject of such drawing shall be treated as still outstanding and (ii) with respect to any Letter of Credit that, by its terms or the terms of any Issuer Document related thereto, provides for one or more automatic increases in the stated amount thereof, the Dollar Amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time.

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Section 1.10 <u>Pro Forma Calculations</u> . Notwithstanding anything to the contrary herein (subject to <u>Section</u> <u>1.02(i)</u>), the Consolidated Cash Interest Expense, Consolidated EBITDA, Consolidated First Lien Net Leverage Ratio, Consolidated Interest Coverage Ratio, Consolidated Interest Expense, Consolidated Net Income, Consolidated Senior Secured Net Leverage Ratio, Consolidated Total Assets, Consolidated Total Net Leverage Ratio, Four Quarter Consolidated EBITDA, Pro Forma Cost Savings and/or Minimum Permitted Change of Control Equity Contribution shall be calculated (including, in each case, for purposes of <u>Sections 2.14</u> and <u>2.15</u>) on a Pro Forma Basis with respect to each Specified Transaction occurring during the applicable four quarter period to which such calculation relates, and/or subsequent to the end of such four quarter period (including, with respect to any proposed Investment or acquisition pursuant to Rule 2.7 of The City Code on Takeovers and Mergers (or a similar arrangement) for which committed financing is obtained or is sought to be obtained, the relevant determination or calculation may be made with respect to an event occurring or intended to occur subsequent to such four- quarter period); *provided* that notwithstanding the foregoing, when calculating the Consolidated First Lien Net Leverage Ratio for purposes of (i) determining the applicable percentage of Excess Cash Flow for purposes of <u>Section</u> <u>2.05(b)</u>, (ii) the Applicable Rate and (iii) determining actual compliance (and not Pro Forma Compliance or compliance on a Pro Forma Basis) with the Financial Covenant, any Specified Transaction and any related adjustment contemplated in the definition of "Pro Forma Basis" (and corresponding provisions of the definition of "Consolidated EBITDA") that occurred subsequent to the end of the applicable four quarter period shall not be given Pro Forma Effect; *provided further*, that notwithstanding the foregoing, when calculating the Consolidated First Lien Net Leverage Ratio for purposes of determining the applicable percentage of Excess Cash Flow for purposes of <u>Section</u> <u>2.05(b)</u>, at the election of the Borrower Representative, the Consolidated First Lien Net Leverage Ratio may be calculated to give Pro Forma Effect to the Excess Cash Flow payment to be made in respect of such Excess Cash Flow Period and all prepayments, amounts and expenditures that are committed to be made during the applicable Excess Cash Flow Period or at any time during the period of four consecutive fiscal quarters following the end of the applicable Excess Cash Flow Period. . Notwithstanding anything to the contrary contained herein, for purposes of calculating any leverage ratio herein in connection with the incurrence of any Indebtedness, there shall be no netting of the cash proceeds proposed to be received in connection with the incurrence of such Indebtedness. For calculations of LTM EBITDA, each reference in this Agreement or the other Loan Documents to the applicable four quarter period (or similar terms) shall be deemed to refer to the most recent twelve consecutive month period as to which financial statements of the Borrowers are internally available (as determined by the Borrower Representative in good faith) as of such date of determination.

Section 1.11 <u>Calculation of Baskets</u>. If any of the baskets set forth in this Agreement are exceeded solely as a result of fluctuations to Four Quarter Consolidated EBITDA and/or Consolidated Total Assets for the most recently completed fiscal quarter after the last time such baskets were calculated for any purpose under this Agreement, such baskets will be deemed not to have been exceeded solely as a result of such fluctuations.

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Section 1.12 <u>Additional Alternative Currencies</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrowers may from time to time request that Revolving Credit Loans be made and/or Letters of Credit be issued in a currency other than those specifically listed in the definition of "Alternative Currency"; *provided* that such requested currency is a lawful currency that is readily available and freely transferable and convertible into Dollars and so long as a quoted rate is available for such currency in the Administrative Agent's reasonable discretion. In the case of any such request with respect to the making of Revolving Credit Loans to a Borrower, such request shall be subject to the approval of the Administrative Agent and each applicable Revolving Credit Lender to such Borrower; and, in the case of any such request with respect to the issuance of Letters of Credit, such request shall be subject to the approval of the Administrative Agent and the applicable L/C Issuer; and in the case of any such request with respect to the issuance of Swing Line Loans, such request shall be subject to the approval of the Administrative Agent and the applicable Swing Line Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any such request shall be made to the Administrative Agent not later than 11:00 a.m. ten Business Days prior to the date of the desired Borrowing (or such other time or date as may be agreed by the Administrative Agent and, in the case of any such request pertaining to Letters of Credit, the relevant L/C Issuer, in its or their sole discretion). In the case of any such request pertaining to Revolving Credit Loans, the Administrative Agent shall promptly notify each applicable Revolving Credit Lender thereof and in the case of any such request pertaining to Letters of Credit, the Administrative Agent shall promptly notify the relevant L/C Issuer. Each such Revolving Credit Lender (in the case of any such request pertaining to Revolving Credit Loans) or the L/C Issuer (in the case of a request pertaining to Letters of Credit) shall notify the Administrative Agent, not later than 11:00 a.m., five Business Days after receipt of such request whether it consents, in its sole discretion, to the making of such Revolving Credit Loans or the issuance of Letters of Credit, as the case may be, in the requested currency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any failure by any applicable Revolving Credit Lender or any L/C Issuer, as the case may be, to respond to such request within the time period specified in the preceding <u>paragraph (b)</u> shall be deemed to be a refusal by such Revolving Credit Lender or L/C Issuer, as the case may be, to permit Revolving Credit Loans to be made or Letters of Credit to be issued in such requested currency. If the Administrative Agent and all the Revolving Credit Lenders that would be obligated to make Revolving Credit Loans denominated in such requested currency consent to making Revolving Credit Loans in such requested currency, the Administrative Agent shall so notify the Borrowers and such currency shall thereupon be deemed for all purposes to be an Alternative Currency hereunder for purposes of any Borrowings of Revolving Credit Loans; and if the Administrative Agent and the relevant L/C Issuer consent to the issuance of Letters of Credit in such requested currency, the Administrative Agent shall so notify the Borrowers and such currency shall thereupon be deemed for all purposes to be an Alternative Currency hereunder for purposes of any Letter of Credit issuances. If the Administrative Agent shall fail to obtain the requisite consent to any request for an additional currency under this <u>Section</u> <u>1.12</u>, the Administrative Agent shall promptly so notify the Borrowers.

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Section 1.13 <u>Agreed Security Principles</u>. The determination of the guarantees to be provided by the Non-U.S. Subsidiaries and the determination of Collateral to be provided by the Non-U.S. Subsidiaries and the Collateral Documents to be delivered under this Agreement by the Non-U.S. Subsidiaries, and any obligation to enter into such document or obligation and/or provide security in any Collateral, by any such Non-U.S. Subsidiaries, shall be subject in all respects to the Agreed Security Principles.

**ARTICLE II** 

**THE COMMITMENTS AND CREDIT EXTENSIONS** 

Section 2.01 <u>The Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Term Borrowings</u>. Subject to the terms and conditions set forth herein, each Initial Term Lender severally agrees to make a single loan denominated in Dollars to the Borrowers on the Closing Date in an amount not to exceed such Initial Term Lender's Initial Term Commitment (the "**Initial Term Loans**"); *provided* that any Delayed Draw Term Loans that are funded hereunder shall also be deemed to constitute Initial Term Loans following such funding. The Initial Term Borrowing shall consist of Initial Term Loans made simultaneously by the Initial Term Lenders in accordance with their respective Initial Term Commitments. At any time and from time to time during the Delayed Draw Commitment Period, on no more than twelve (12) occasions (or such greater number to the extent permitted by the Required Delayed Draw Lenders (and only such Lenders)), subject to the terms and conditions set forth in <u>Section</u> <u>4.03</u> hereof, each Delayed Draw Lender with a Delayed Draw Commitment severally agrees to make to the Borrowers on the applicable Delayed Draw Closing Date a Term Loan denominated in Dollars in an aggregate amount requested by the Borrowers but not exceeding such Delayed Draw Lender's unfunded Delayed Draw Commitment as of such date immediately prior to giving effect to such Borrowing (the "**Delayed Draw Term Loans**"); *provided* that the aggregate principal amount of all such Borrowings of Delayed Draw Term Loans shall not exceed the aggregate amount of the Delayed Draw Commitments as of the Closing Date. Amounts borrowed under this <u>Section</u> <u>2.01(a)</u> and subsequently repaid or prepaid may not be reborrowed (it being understood, however, that prepayments will be taken into account for purposes of any Prepayment-Based Incremental Facility to the extent provided by <u>Section</u> <u>2.14</u>). Initial Term Loans and Delayed Draw Term Loans may be Base Rate Loans or SOFR Loans as further provided herein. The Initial Term Loans and Delayed Draw Term Loans will be treated as the same Tranche (i.e., "fungible," including for U.S. federal income Tax purposes) and will have the same CUSIP if applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>The Revolving Credit Borrowings</u>. Subject to the terms and conditions set forth herein, each Revolving Credit Lender severally agrees to make loans denominated in Dollars or in one or more Alternative Currencies to the Borrowers (each such loan, a "**Revolving Credit Loan**") from time to time on and after the Closing Date on any Business Day until and excluding the Business Day preceding the Maturity Date for the Revolving Credit Facility, in an aggregate amount not to exceed at any time outstanding the amount of such Lender's Revolving Credit Commitment; *provided*, *however*, that after giving effect to any Revolving Credit Borrowing, (i) the Total Revolving Credit

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Outstandings shall not exceed the Aggregate Commitments under the Revolving Credit Facility and (ii) the aggregate Pro Rata Share of the Outstanding Amount of the Revolving Credit Loans of any Lender, *plus* such Lender's Pro Rata Share of the Outstanding Amount of Swing Line Loans, *plus* such Lender's Pro Rata Share of the Outstanding Amount of all L/C Obligations shall not exceed such Lender's Revolving Credit Commitment. Within the limits of each Lender's Revolving Credit Commitment, and subject to the other terms and conditions hereof, the Borrowers may borrow under this <u>Section</u> <u>2.01(b)</u>, prepay under <u>Section</u> <u>2.05</u>, and reborrow under this <u>Section</u> <u>2.01(b)</u>. Revolving Credit Loans may be Base Rate Loans (in the case of Revolving Credit Loans denominated in Dollars), Alternative Currency Daily Rate Loans (in the case of Revolving Credit Loans denominated in Alternative Currencies), SOFR Loans or Alternative Currency Term Rate Loans (in the case of Revolving Credit Loans denominated in Alternative Currencies), as further provided herein. To the extent that any portion of the Revolving Credit Facility has been refinanced with one or more new revolving credit facilities constituting Specified Refinancing Debt, each Revolving Credit Borrowing (including any deemed Revolving Credit Borrowings made pursuant to <u>Section</u> <u>2.03</u>) shall be allocated pro rata among the Revolving Tranches.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) After the Closing Date, subject to and upon the terms and conditions set forth herein, each Lender with a Term Commitment (other than an Initial Term Commitment) with respect to any Tranche of Term Loans (other than Initial Term Loans) severally agrees to make a Term Loan denominated in Dollars or such other Alternative Currency under such Tranche to the Borrowers in an amount not to exceed such Term Lender's Term Commitment under such Tranche on the date of incurrence thereof, which Term Loans under such Tranche shall be incurred pursuant to a single drawing on the date set forth for such incurrence. Such Term Loans may be Base Rate Loans, SOFR Loans or Alternative Currency Loans as further provided herein. Once repaid, Term Loans incurred hereunder may not be reborrowed (it being understood, however, that prepayments will be taken into account for purposes of any Prepayment-Based Incremental Facility to the extent provided by <u>Section</u> <u>2.14</u>).

Section 2.02 <u>Borrowings, Conversions and Continuations of Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Term Borrowing, each Revolving Credit Borrowing, each conversion of Term Loans, Specified Refinancing Revolving Loans or Revolving Credit Loans from one Type to another, and each continuation of SOFR Loans or Alternative Currency Term Rate Loans, shall be made upon irrevocable notice by the Borrower Representative to the Administrative Agent. Each such notice must be in writing and must be received by the Administrative Agent not later than (i) 11:00 a.m. (New York City time) three Business Days prior to the requested date of any Borrowing of, conversion of Base Rate Loans to, or continuation of, SOFR Loans (other than a Borrowing on the Closing Date, which may be made one Business Day prior to the requested date of such Borrowing), (ii) 11:00 a.m. (New York City time) on the requested date of any Borrowing of Base Rate Loans or of any conversion of SOFR Loans to Base Rate Loans, (iii) 11:00 a.m. (New York City time) three Business Days prior to the requested date of any Borrowing of, or conversion of Loans referencing EURIBOR to, or continuation of, Loans referencing EURIBOR, (iv) 12:00 p.m. (New York City time) three Business Days prior to the requested date of any

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Borrowing of, or conversion of Loans referencing Term CORRA to, or continuation of, Loans referencing Term CORRA; and (v) for Borrowings of, or conversions of Loans referencing an Alternative Currency Daily Rate or Alternative Currency Term Rate (in each case, other than EURIBOR and Term CORRA), as advised by the Administrative Agent in writing from time to time. Each notice pursuant to this <u>Section</u> <u>2.02(a)</u> shall be delivered to the Administrative Agent in the form of a written Committed Loan Notice, appropriately completed and signed by a Responsible Officer of the Borrower Representative; *provided however* that (x) each request for a Swing Line Loan Borrowing shall be made in accordance with <u>Section</u> <u>2.04</u> and (y) such notices may be conditioned on the occurrence of the Closing Date or any transaction anticipated to occur in connection with the Borrowing of such Loans, in which case such notice may be revoked or extended by the Borrower Representative (by written notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.

Each Term Borrowing of, conversion to or continuation of SOFR Loans or Alternative Currency Loans shall be (i) in a principal amount of $1,000,000 (or the equivalent Dollar Amount) (or, solely in the case of the Delayed Draw Term Loans, $15,000,000 (or the equivalent Dollar Amount), or the remainder thereof, if less), or (ii) a whole multiple of $500,000 (or the equivalent Dollar Amount) in excess thereof, or the remainder thereof, if less. Except as provided in <u>Section</u> <u>2.03(d)</u>, each Term Borrowing of, or conversion to, Base Rate Loans or Alternative Currency Daily Rate Loans shall be (i) in a principal amount of $1,000,000 (or the equivalent Dollar Amount) (or, solely in the case of the Delayed Draw Term Loans, $15,000,000 (or the equivalent Dollar Amount, or the remainder thereof, if less)), or (ii) a whole multiple of $500,000 (or the equivalent Dollar Amount) in excess thereof, or the remainder thereof, if less. Each other Borrowing of, conversion to or continuation of SOFR Loans or Alternative Currency Term Rate Loans shall be (i) in a principal amount of $500,000 (or the equivalent Dollar Amount) (or, solely in the case of the Delayed Draw Term Loans, $15,000,000 (or the equivalent Dollar Amount), or the remainder thereof, if less), or (ii) a whole multiple of $100,000 (or the equivalent Dollar Amount) in excess thereof, or the remainder thereof, if less. Except as provided in <u>Section</u> <u>2.03(d)</u>, each other Borrowing of, or conversion to, Base Rate Loans or Alternative Currency Daily Rate Loans shall be (i) in a principal amount of $500,000 (or the equivalent Dollar Amount) (or, solely in the case of the Delayed Draw Term Loans, $15,000,000 (or the equivalent Dollar Amount) , or the remainder thereof, if less), or (ii) a whole multiple of $100,000 (or the equivalent Dollar Amount) in excess thereof, or the remainder thereof, if less.

Each Committed Loan Notice shall specify (i) the identity of the Borrower requesting a Credit Extension, (ii) whether such Borrower is requesting a Term Borrowing, a Revolving Credit Borrowing, a conversion of a Tranche of Term Loans, Specified Refinancing Revolving Loans or Revolving Credit Loans from one Type to another, or a continuation of SOFR Loans or Alternative Currency Term Rate Loans, (iii) the requested date of the Borrowing, conversion or continuation, as the case may be (which shall be a Business Day), (iv) the principal amount of Loans to be borrowed, converted or continued, (v) the Type of Loans to be borrowed or to which existing Tranche of Term Loans, Specified Refinancing Revolving Loans or Revolving Credit Loans are to be converted, (vi) if applicable, the duration of the Interest Period with respect thereto, and (vii) the

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currency in which the Loans to be borrowed are to be denominated (which shall be Dollars or an Alternative Currency). If, with respect to any SOFR Loans or Alternative Currency Term Rate Loans, the applicable Borrower fails to specify a Type of Loan in a Committed Loan Notice or if the applicable Borrower fails to give a timely notice requesting a conversion or continuation, then the applicable Tranche of Term Loans, Specified Refinancing Revolving Loans, or Revolving Credit Loans shall be made as, or converted to, SOFR Loans or Alternative Currency Term Rate Loans with an Interest Period of one month. Any such automatic conversion or continuation pursuant to the immediately preceding sentence shall be effective as of the last day of the Interest Period then in effect with respect to the applicable SOFR Loans or Alternative Currency Term Rate Loans. If a Borrower requests a Borrowing of, conversion to, or continuation of SOFR Loans or Alternative Currency Term Rate Loans in any such Committed Loan Notice, but fails to specify an Interest Period, it will be deemed to have specified an Interest Period of one month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Following receipt of a Committed Loan Notice, the Administrative Agent shall promptly notify each applicable Lender of the amount of its Pro Rata Share of the applicable Tranche of Term Loans, Specified Refinancing Revolving Loans or Revolving Credit Loans, and if no timely notice of a conversion or continuation of SOFR Loan or Alternative Currency Term Rate Loan is provided by the Borrower Representative, the Administrative Agent shall notify each Lender of the details of any automatic conversion to or continuation of SOFR Loans or Alternative Currency Term Rate Loans with an Interest Period of one month as described in <u>Section</u> <u>2.02(a)</u>. In the case of a Term Borrowing or a Revolving Credit Borrowing, each Appropriate Lender shall make the amount of its Loan available to the Administrative Agent in immediately available funds at the Administrative Agent's Office not later than 3:00 p.m. (New York City time) in the case of Loans denominated in Dollars, and not later than the applicable time specified by the Administrative Agent in the case of any Revolving Credit Loan denominated in an Alternative Currency, in each case, on the Business Day specified in the applicable Committed Loan Notice. Each Lender may, at its option, make any Loan available to the applicable Borrowers by causing any foreign or domestic branch or Affiliate of such Lender to make such Loan; *provided* that any exercise of such option shall not affect the obligation of the applicable Borrowers to repay such Loan in accordance with the terms of this Agreement. Upon satisfaction of the applicable conditions set forth in <u>Section</u> <u>4.02</u> (or, if such Borrowing is the initial Credit Extension, the other conditions set forth in <u>Section</u> <u>4.01</u>, or, if such Borrowing is a Delayed Draw Term Loan, <u>Section</u> <u>4.03</u>), the Administrative Agent shall make all funds so received available to the applicable Borrower in like funds as received by the Administrative Agent either by (i) crediting the account of the applicable Borrower on the books of the Administrative Agent with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to (and reasonably acceptable to) the Administrative Agent by the applicable Borrower; *provided*, *however*, that if, on the date the Committed Loan Notice with respect to such Borrowing is given by the Borrower Representative and to be made available to the Borrowers, there are L/C Borrowings or Swing Line Loans outstanding, then the proceeds of such Borrowing shall be applied, <u>first</u>, to the payment in full of any such L/C Borrowings, <u>second</u>, to the payment in full of any such Swing Line Loans, and <u>third</u>, to the applicable Borrowers as provided above.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as otherwise provided herein, a SOFR Loan and/or an Alternative Currency Term Rate Loan may be continued or converted only on the last day of an Interest Period for such SOFR Loan or Alternative Currency Term Rate Loan. During the existence of an Event of Default, at the prior written election of the Required Lenders, no Loans may be requested as, converted to or continued as (i) SOFR Loans or (ii) Alternative Currency Term Rate Loans denominated in any Alternative Currency for which there is an available Alternative Currency Daily Rate. For the avoidance of doubt, Swing Line Loans may not be converted or continued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent shall promptly notify the Borrowers and the Lenders of the interest rate applicable to any Interest Period for SOFR Loans or Alternative Currency Term Rate Loans upon determination of such interest rate. The determination of the SOFR, CORRA, Term CORRA or EURIBOR by the Administrative Agent shall be conclusive in the absence of manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) After giving effect to all Term Borrowings, all Revolving Credit Borrowings, all conversions of Term Loans or Revolving Credit Loans from one Type to another, and all continuations of Term Loans or Revolving Credit Loans of the same Type, there shall not be more than ten Interest Periods in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The failure of any Lender to make the Loan to be made by it as part of any Borrowing shall not relieve any other Lender of its obligation, if any, hereunder to make its Loan on the date of such Borrowing, but no Lender shall be responsible for the failure of any other Lender to make the Loan to be made by such other Lender on the date of any Borrowing, which for the avoidance of doubt does not limit such Lender's obligations under <u>Section</u> <u>2.17</u>.

Section 2.03 <u>Letters of Credit</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>The Letter of Credit Commitment</u>. (i) Subject to the terms and conditions set forth herein,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) each L/C Issuer agrees, in reliance upon (among other things) the agreements of the other Revolving Credit Lenders set forth in this <u>Section</u> <u>2.03</u>, (1) from time to time on any Business Day during the period from the Closing Date until the Letter of Credit Expiration Date, to issue Letters of Credit denominated in Dollars (or such other currencies that may be agreed by the applicable L/C Issuer and the Borrowers from time to time in accordance with <u>Section</u> <u>1.12</u>) for the account of any Borrower Party (*provided* that the Borrowers hereby irrevocably agrees to reimburse the applicable L/C Issuer for amounts drawn on any Letters of Credit issued for the account of any Borrower Party on a joint and several basis with such Restricted Subsidiary and shall be a co-applicant for each such Letter of Credit issued for the account of a Restricted Subsidiary, but in no event shall any Controlled Non-U.S. Subsidiary, any FSHCO or any direct or indirect Subsidiary of a Controlled Non-U.S. Subsidiary or FSHCO be responsible for any amounts drawn on any Letters of Credit issued for the account of the Borrowers or a Subsidiary) and to amend or renew Letters of Credit previously issued by it, in accordance with <u>Section</u> <u>2.03(c)</u>, and (2) to honor drafts under the Letters of Credit; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Revolving Credit Lenders severally agree to participate in Letters of Credit issued for the account of any Borrower Party; *provided* that no L/C Issuer shall be obligated to make any L/C Credit Extension with respect to any Letter of Credit, and no Lender shall be obligated to participate in any Letter of Credit, if as of the date of such L/C Credit Extension (v) the Total Revolving Credit Outstandings in respect of any Revolving Tranche would exceed the Aggregate Commitment under such Revolving Tranche, (w) the Total Revolving Credit Outstandings would exceed the Aggregate Commitment under the Revolving Credit Facility, (x) the aggregate Pro Rata Share of the Outstanding Amount of the Revolving Credit Loans of any Lender, *plus* such Lender's Pro Rata Share of the Outstanding Amount of all L/C Obligations would exceed such Lender's Revolving Credit Commitment, (y) the Outstanding Amount of the L/C Obligations of the applicable L/C Issuer would exceed such L/C Issuers Letter of Credit Commitment or (z) the Outstanding Amount of the L/C Obligations would exceed the Letter of Credit Sublimit; *provided*, *further*, that no L/C Issuer identified on <u>Schedule 1.01(f)</u> shall have any obligation to make an L/C Credit Extension if, after giving effect thereto, the L/C Obligations in respect of Letters of Credit issued by such L/C Issuer would exceed the amount set forth opposite such L/C Issuer's name on <u>Schedule 1.01(f)</u>. Within the foregoing limits, and subject to the terms and conditions hereof, the Borrowers' ability to obtain Letters of Credit shall be fully revolving, and accordingly the Borrowers may, during the foregoing period, obtain Letters of Credit to replace Letters of Credit that have expired or been terminated or that have been drawn upon and reimbursed. All Letters of Credit shall be denominated in Dollars or an Alternative Currency; *provided* that each L/C Issuer's obligation to issue Letters of Credit in any Alternative Currency shall be subject to the currency limitations set forth on <u>Schedule 1.01(f)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No L/C Issuer shall be under any obligation to issue any Letter of Credit (and, in the case of <u>clause (B)</u> and <u>(C)</u> unless the applicable requisite consents specified therein have been obtained, no L/C Issuer shall issue any Letter of Credit) if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain such L/C Issuer from issuing such Letter of Credit, or any Law applicable to such L/C Issuer or any request or directive (whether or not having the force of Law) from any Governmental Authority with jurisdiction over such L/C Issuer shall prohibit, or request that such L/C Issuer refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon such L/C Issuer with respect to such Letter of Credit any restriction, reserve or capital requirement (for which such L/C Issuer is not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose upon such L/C Issuer any unreimbursed loss, cost or expense which was not applicable on the Closing Date and which, in each case, such L/C Issuer in good faith deems material to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) subject to <u>Section</u> <u>2.03(c)(iii)</u>, the expiry date of such requested Letter of Credit would occur after the earlier of (x) five Business Days prior to the scheduled Maturity Date then in effect for the Revolving Credit Facility (or, if such day is not a Business Day, the next preceding Business Day) and (y) more than 12 months after the date of issuance or last renewal, unless the applicable L/C Issuer, in its sole discretion, have approved in writing such expiry date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the expiry date of such requested Letter of Credit would occur after the Letter of Credit Expiration Date, unless (i) all the Revolving Credit Lenders and the applicable L/C Issuer have approved in writing such expiry date and/or (ii) the applicable L/C Issuer has approved in writing such expiry date and such requested Letter of Credit has been Cash Collateralized by the applicant requesting such Letter of Credit in accordance with <u>Section</u> <u>2.16</u> at least three Business Days prior to the Letter of Credit Expiration Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the issuance of such Letter of Credit would violate one or more generally applicable policies of such L/C Issuer in place at the time of such request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) such Letter of Credit is in an initial stated amount of less than $5,000 (or the equivalent Dollar Amount) or such lesser amount as is acceptable to the applicable L/C Issuer in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) such Letter of Credit is denominated in a currency other than Dollars (or such other currencies that may be agreed by L/C Issuers and the Borrowers from time to time in accordance with <u>Section</u> <u>1.12</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) the proceeds of any Letter of Credit would be made available to any Person (i) to fund any activity or business of or with any Sanctioned Person, or any dealing or investment in or with any country or territory that, at the time of such funding, is a Sanctioned Country, in each case, in violation of applicable Sanctions Laws and Regulations or (ii) in any manner that would result in a violation of any applicable Sanctions Laws and Regulations by any party to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) such L/C Issuer does not as of the issuance date of such requested Letter of Credit issue Letters of Credit in the requested currency; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) any Revolving Credit Lender is at that time a Defaulting Lender, unless the applicable L/C Issuer has entered into arrangements, including reallocation of the Defaulting Lender's Pro Rata Share of the outstanding L/C Obligations pursuant to <u>Section</u> <u>2.17(a)(iv)</u> or the delivery of Cash Collateral in accordance with <u>Section</u> <u>2.16</u> with the Borrowers or such Lender to eliminate such L/C Issuer's actual or potential Fronting Exposure (after giving effect to <u>Section</u> <u>2.17(a)(iv)</u>) with respect to the Defaulting Lender arising from either the Letter of Credit then proposed to be issued or that Letter of Credit and all other L/C Obligations as to which such L/C Issuer has actual or potential Fronting Exposure under such Tranche.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) No L/C Issuer shall be under any obligation to amend any Letter of Credit if (A) such L/C Issuer would have no obligation at such time to issue such Letter of Credit in its amended form under the terms hereof or (B) the beneficiary of such Letter of Credit does not accept the proposed amendment to such Letter of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Each L/C Issuer shall act on behalf of the Revolving Credit Lenders with respect to any Letters of Credit issued by it and the documents associated therewith, and each L/C Issuer shall have all of the benefits and immunities (A) provided to the Administrative Agent in <u>Article IX</u> with respect to any acts taken or omissions suffered by such L/C Issuer in connection with Letters of Credit issued by it or proposed to be issued by it and Issuer Documents pertaining to such Letters of Credit as fully as if the term "Administrative Agent" as used in <u>Article IX</u> included each L/C Issuer with respect to such acts or omissions, and (B) as additionally provided herein with respect to each L/C Issuer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Notwithstanding anything to the contrary contained in this Agreement, (x) the applicant for the Existing Letter of Credit #2024041901 set forth on Schedule 1.01(c) shall be permitted to be Kaman Holdings, an Initial Holding Company, (y) such Existing Letter of Credit shall be treated under this Agreement as if the applicant therefor were a Borrower and (z) such applicant shall be subject to the obligations expressly set forth in this Agreement with respect to such Existing Letter of Credit as if it were a Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The foregoing benefits and immunities shall not excuse any L/C Issuer from liability to the Borrowers to the extent of any direct damages (as opposed to indirect, special, consequential, punitive or exemplary damages claims which are hereby waived by the Borrowers to the extent permitted by applicable law) suffered by the Borrowers that are caused by such L/C Issuer's gross negligence, bad faith or willful misconduct as determined by a court of competent jurisdiction in a final and nonappealable judgment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Letter of Credit shall be issued or amended, as the case may be, upon the request of the applicable Borrower delivered to the applicable L/C Issuer (with a copy to the Administrative Agent) in the form of an irrevocable Letter of Credit Application, including agreed-upon draft language for such Letter of Credit reasonably acceptable to the applicable L/C Issuer (it being understood that such draft language for each such Letter of Credit must be in English or, if agreed to in the sole discretion of the applicable L/C Issuer, accompanied by an English translation certified by the Borrower Representative to be a true and correct English translation), appropriately completed and signed by a Responsible Officer of the Borrower Representative. Such Letter of Credit Application must be received by the applicable L/C Issuer and the Administrative Agent not later than 2:00 p.m. (New York City time) at least five Business Days (or such shorter period as such L/C Issuer and the Administrative Agent may agree in a particular instance in their sole discretion) prior to the proposed issuance date or date of amendment, as the case may be. In the case of a request for an initial issuance of a Letter of Credit, such Letter of Credit Application shall specify in form and detail reasonably satisfactory to the applicable L/C Issuer: (A) the proposed issuance date of the requested Letter of Credit (which shall be a Business Day not later than 30 days prior to the Maturity Date of the Revolving Credit Facility, unless the Administrative Agent and the applicable L/C Issuer otherwise agree); (B) the amount thereof and the currency in which such Letter of Credit is to be denominated; (C) the expiry date thereof; (D) the name and address of the beneficiary thereof; (E) the documents to be presented by such beneficiary in case of any drawing thereunder; (F) the full text of any certificate or other documents to be presented by such beneficiary in case of any drawing thereunder; (G) the Person for whose account the requested Letter of Credit is to be issued (which must be a Borrower Party); and (H) such other matters as the applicable L/C Issuer may reasonably request. In the case of a request for an amendment

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of any outstanding Letter of Credit, such Letter of Credit Application shall specify in form and detail reasonably satisfactory to the applicable L/C Issuer: (1) the Letter of Credit to be amended; (2) the proposed date of amendment thereof (which shall be a Business Day); (3) the nature of the proposed amendment; and (4) such other matters as the applicable L/C Issuer may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Promptly following delivery of any Letter of Credit Application to the applicable L/C Issuer, the applicable L/C Issuer will confirm with the Administrative Agent that the Administrative Agent has received a copy of such Letter of Credit Application and, if the Administrative Agent has not received a copy of such Letter of Credit Application, then the applicable L/C Issuer will provide the Administrative Agent with a copy thereof. Upon receipt by such L/C Issuer of confirmation from the Administrative Agent that the requested issuance or amendment is permitted in accordance with the terms hereof, then, subject to the terms and conditions hereof, such L/C Issuer shall, on the requested date, issue a Letter of Credit for the account of any Borrower Party (as designated in the Letter of Credit Application) or enter into the applicable amendment, as the case may be. Immediately upon the issuance of each Letter of Credit, each Revolving Credit Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the applicable L/C Issuer a risk participation in such Letter of Credit in an amount equal to such Lender's Pro Rata Share of the Revolving Credit Facility multiplied by the amount of such Letter of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If a Borrower so requests in any applicable Letter of Credit Application, the applicable L/C Issuer may, in its sole and absolute discretion, agree to issue a Letter of Credit that has automatic extension or renewal provisions (each, an "**Auto-Extension Letter of Credit**"); *provided* that any such Auto-Extension Letter of Credit must permit such L/C Issuer to prevent any such extension or renewal at least once in each 12-month period (commencing with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day in each such 12-month period to be agreed upon at the time such Letter of Credit is issued. Unless otherwise directed by the applicable L/C Issuer, the Borrowers shall not be required to make a specific request to such L/C Issuer for any such extension or renewal. Once an Auto-Extension Letter of Credit has been issued, the Revolving Credit Lenders shall be deemed to have authorized (but may not require) the applicable L/C Issuer to permit the extension or renewal of such Letter of Credit at any time to an expiry date not later than the Letter of Credit Expiration Date; *provided*, *however*, that such L/C Issuer shall not permit any such extension or renewal if such L/C Issuer has determined that it would have no obligation at such time to issue such Letter of Credit in its extended or renewed form under the terms hereof (by reason of the provisions of <u>Section</u> <u>2.03(a)(ii)</u> or otherwise).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Promptly upon request thereof by a Borrower or the Administrative Agent and after its delivery of any Letter of Credit or any amendment to a Letter of Credit to an advising bank with respect thereto or to the beneficiary thereof, the applicable L/C Issuer will also (A) deliver to the Borrower Representative, the applicable Borrower Party and the Administrative Agent a true and complete copy of such Letter of Credit or amendment and (B) the Administrative Agent in turn will notify each Revolving Credit Lender of such issuance or amendment and the amount of such Revolving Credit Lender's Pro Rata Share therein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Notwithstanding anything to the contrary set forth above, the issuance of any Letters of Credit by any L/C Issuer under this Agreement shall be subject to such reasonable additional letter of credit issuance procedures and requirements as may be required by such L/C Issuer's internal letter of credit issuance policies and procedures, in its sole discretion, as in effect at the time of such issuance, including requirements with respect to the prior receipt by such L/C Issuer of customary "know your customer" information regarding a prospective account party or applicant that is not a Borrower hereunder, as well as regarding any beneficiaries of a requested Letter of Credit. Additionally, if (a) the beneficiary of a Letter of Credit issued hereunder is an issuer of a letter of credit not governed by this Agreement for the account of any Borrower Party (an "**Other LC**"), and (b) such Letter of Credit is issued to provide credit support for such Other LC, no amendments may be made to such Other LC without the consent of the applicable L/C Issuer hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Drawings and Reimbursements; Funding of Participations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon receipt from the beneficiary of any Letter of Credit of any drawing under such Letter of Credit, the applicable L/C Issuer shall, within the period determined by applicable Law or rules specified in such Letter of Credit, examine drawing document(s). After such examination of drawing document(s), the applicable L/C Issuer shall notify the Borrower Representative of the date and the amount of a draft presented under any Letter of Credit and paid by such L/C Issuer. Each L/C Issuer shall notify the Borrower Representative on the date of any payment by such L/C Issuer under a Letter of Credit (each such date, an "**Honor Date**"), and the Borrowers shall reimburse such L/C Issuer through the Administrative Agent in an amount equal to the amount and in the currency of such drawing no later than on the next succeeding Business Day (and any reimbursement made on such next Business Day shall be taken into account in computing interest and fees in respect of any such Letter of Credit) after the Borrower Representative shall have received notice of such payment with interest on the amount so paid or disbursed by such L/C Issuer, to the extent not reimbursed prior to 12:00 p.m. (New York time) in the case of drawings in Dollars or an Alternative Currency, in each case, on the applicable Honor Date, from and including the date paid or disbursed to but excluding the date such L/C Issuer was reimbursed by the Borrowers therefor at a rate per annum equal to the Base Rate as in effect from time to time *plus* the Applicable Rate as in effect from time to time for Revolving Credit Loans that are maintained as Base Rate Loans. If the Borrowers fail to so reimburse such L/C Issuer on such next Business Day, the L/C Issuer will notify the Administrative Agent thereof and the Administrative Agent shall promptly notify each Revolving Credit Lender under the applicable Revolving Tranche of the Honor Date, the amount of the unreimbursed drawing (the "**Unreimbursed Amount**"), and the amount of such Revolving Credit Lender's Pro Rata Share thereof. In such event, in the case of an Unreimbursed Amount, the Borrowers shall be deemed to have requested a Revolving Credit Borrowing of Base Rate Loans in Dollars or the applicable Alternative Currency, as applicable, to be disbursed on such date in an amount equal to, and denominated in the same currency as, the Unreimbursed Amount, in accordance with the requirements of

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 <u>Section</u> <u>2.02</u> but without regard to the minimum and multiples specified in <u>Section</u> <u>2.02</u> for the principal amount of Base Rate Loans, Alternative Currency Daily Rate Loans, SOFR Loans or Alternative Currency Term Rate Loans, as the case may be, but subject to the amount of the unused portion of the Revolving Credit Commitments under such Revolving Tranche and the conditions set forth in <u>Section</u> <u>4.02</u> (other than the delivery of a Committed Loan Notice). Any notice given by an L/C Issuer or the Administrative Agent pursuant to this <u>Section</u> <u>2.03(d)(i)</u> may be given by telephone if promptly confirmed in writing; *provided* that the lack of such a prompt confirmation shall not affect the conclusiveness or binding effect of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each Revolving Credit Lender (including each Lender acting as an L/C Issuer) under the applicable Revolving Tranche shall upon any notice pursuant to <u>Section</u> <u>2.03(d)(i)</u> make funds available (and the Administrative Agent may apply Cash Collateral provided for this purpose) for the account of the applicable L/C Issuer, at the Administrative Agent's Office in an amount equal to, and in Dollars, its applicable Pro Rata Share of the Unreimbursed Amount not later than 12:00 p.m. (New York Time) on the Business Day specified in such notice by the Administrative Agent, whereupon, subject to the provisions of <u>Section</u> <u>2.03(d)(iii)</u>, each Revolving Credit Lender under such Revolving Tranche that so makes funds available shall be deemed to have made a Base Rate Revolving Credit Loan under such Revolving Tranche to the Borrowers in such amount. The Administrative Agent shall promptly remit the funds so received to the applicable L/C Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) With respect to any Unreimbursed Amount that is not fully refinanced by a Revolving Credit Borrowing of Base Rate Loans because the conditions set forth in <u>Section</u> <u>4.02</u> cannot be satisfied (other than the condition in <u>Section</u> <u>4.02(c)</u>, which shall be deemed to be satisfied) or for any other reason, the Borrowers shall be deemed to have incurred from the applicable L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due and payable on demand (together with interest) and shall bear interest at the Default Rate then applicable to Base Rate Revolving Credit Loans. In such event, each such Revolving Credit Lender's payment to the Administrative Agent for the account of the applicable L/C Issuer pursuant to <u>Section</u> <u>2.03(d)(ii)</u> shall be deemed payment in respect of its participation in such L/C Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its participation obligation under this <u>Section</u> <u>2.03</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Until each Revolving Credit Lender under the applicable Revolving Tranche funds its Revolving Credit Loan or L/C Advance pursuant to this <u>Section</u> <u>2.03(d)</u> to reimburse the applicable L/C Issuer for any amount drawn under any Letter of Credit, interest in respect of such Lender's applicable Pro Rata Share of such amount shall be solely for the account of such L/C Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Each applicable Revolving Credit Lender's obligation to make Revolving Credit Loans or L/C Advances to reimburse the applicable L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this <u>Section</u> <u>2.03(d)</u>, shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right which such Lender may have against such

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L/C Issuer, the Borrowers or any other Person for any reason whatsoever, (B) the occurrence or continuance of a Default or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing; *provided*, *however*, that each such Revolving Credit Lender's obligation to make Revolving Credit Loans pursuant to this <u>Section</u> <u>2.03(d)</u> is subject to the conditions set forth in <u>Section</u> <u>4.02</u> (other than delivery by the Borrower Representative of a Committed Loan Notice). No such making of an L/C Advance shall relieve or otherwise impair the obligation of the Borrowers to reimburse the applicable L/C Issuer for the amount of any payment made by the applicable L/C Issuer under any Letter of Credit, together with interest as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) If any Revolving Credit Lender fails to make available to the Administrative Agent for the account of the applicable L/C Issuer any amount required to be paid by such Lender pursuant to the foregoing provisions of this <u>Section</u> <u>2.03(d)</u> by the time specified in <u>Section</u> <u>2.03(d)(ii)</u>, then, without limiting the other provisions of this Agreement, such L/C Issuer shall be entitled to recover from such Lender (acting through the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to such L/C Issuer at a rate per annum equal to the greater of the Federal Funds Rate from time to time in effect and a rate reasonably determined by such L/C Issuer in accordance with banking industry rules on interbank compensation, *plus* any reasonable administrative, processing or similar fees customarily charged by such L/C Issuer in connection with the foregoing. If such Lender pays such principal amount, the amount so paid (less interest and fees) shall constitute such Lender's Loan included in the relevant Borrowing or L/C Advance in respect of the relevant L/C Borrowing, as the case may be. A certificate of the applicable L/C Issuer submitted to any Revolving Credit Lender (through the Administrative Agent) with respect to any amounts owing under this <u>Section</u> <u>2.03(d)(vi)</u> shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Repayment of Participations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If, at any time after an L/C Issuer has made a payment under any Letter of Credit issued by it and has received from any Revolving Credit Lender such Lender's L/C Advance in respect of such payment in accordance with <u>Section</u> <u>2.03(d)</u>, the Administrative Agent receives for the account of such L/C Issuer any payment in respect of the related Unreimbursed Amount or interest thereon (whether directly from the Borrowers or otherwise, including proceeds of Cash Collateral applied thereto by the Administrative Agent), the Administrative Agent will distribute to such Lender its applicable Pro Rata Share thereof (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender's L/C Advance was outstanding) in the same funds as those received by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If any payment received by the Administrative Agent for the account of an L/C Issuer pursuant to <u>Section</u> <u>2.03(d)(i)</u> is required to be returned under any of the circumstances described in <u>Section</u> <u>10.06</u> (including pursuant to any settlement entered into by such L/C Issuer in its discretion), each Revolving Credit Lender shall pay to the Administrative Agent for the account of such L/C Issuer its applicable Pro Rata Share thereof on demand of the Administrative Agent, *plus* interest thereon from the date of such demand to the date such amount is returned by such Lender, at a rate per annum equal to the Federal Funds Rate from time to time in effect. The obligations of the Lenders under this clause shall survive the payment in full of the Obligations and the termination of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Obligations Absolute</u>. The obligation of the Borrowers to reimburse the applicable L/C Issuer for each drawing under each Letter of Credit and to repay each L/C Borrowing shall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement under all circumstances, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any lack of validity or enforceability of such Letter of Credit, this Agreement, or any other agreement or instrument relating thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the existence of any claim, counterclaim, setoff, defense or other right that the Borrowers or any Subsidiary may have at any time against any beneficiary or any transferee of such Letter of Credit (or any Person for whom any such beneficiary or any such transferee may be acting), the applicable L/C Issuer or any other Person, whether in connection with this Agreement, the transactions contemplated hereby or by such Letter of Credit or any agreement or instrument relating thereto, or any unrelated transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any draft, demand, certificate or other document presented under such Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; or any loss or delay in the transmission or otherwise of any document required in order to make a drawing under such Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any payment by the applicable L/C Issuer under such Letter of Credit against presentation of a draft, certificate or other drawing document that does not comply with the terms of such Letter of Credit; or any payment made by the applicable L/C Issuer under such Letter of Credit to any Person purporting to be a trustee in bankruptcy, debtorin-possession, assignee for the benefit of creditors, administrator, administrative receiver, judicial manager, liquidator, receiver, interim receiver or other representative of or successor to any beneficiary or any transferee of such Letter of Credit, including any arising in connection with any proceeding under any Debtor Relief Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any exchange, release or non-perfection of any Collateral, or any release or amendment or waiver of or consent to departure from the Guaranty or any other guarantee, for all or any of the Obligations of the Borrowers in respect of such Letter of Credit; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing, including any other circumstance that might otherwise constitute a defense available to, or a legal or equitable discharge of, or provide a right of setoff against the Borrowers' obligations hereunder.

The Borrowers shall promptly examine a copy of each Letter of Credit and each amendment thereto that is delivered to it and, in the event of any claim of noncompliance with the instructions of a Borrower or other irregularity, the Borrower Representative will promptly notify the applicable L/C Issuer. The Borrowers shall be conclusively deemed to have waived any such claim against any L/C Issuer and its correspondents unless such notice is given as aforesaid.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Role of L/C Issuer</u>. Each Lender and the Borrowers agree that, in paying any drawing under a Letter of Credit, the applicable L/C Issuer shall not have any responsibility to obtain any document (other than any sight draft, certificates and other documents expressly required by the Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the authority of the Person executing or delivering any such document. None of the applicable L/C Issuer, any Agent-Related Person nor any of the respective correspondents, participants or assignees of the applicable L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in connection herewith at the request or with the approval of the Revolving Credit Lenders or the Required Revolving Lenders, as applicable; (ii) any action taken or omitted in the absence of bad faith, gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final and nonappealable judgment; or (iii) the due execution, effectiveness, validity or enforceability of any document or instrument related to any Letter of Credit or Letter of Credit Application. The Borrowers hereby assume all risks of the acts or omissions of any beneficiary or transferee with respect to its use of any Letter of Credit; *provided*, *however*, that this assumption is not intended to, and shall not, preclude the Borrowers from pursuing such rights and remedies as it may have against the beneficiary or transferee at Law or under any other agreement. None of the applicable L/C Issuer, any Agent-Related Person, nor any of the respective correspondents, participants or assignees of such L/C Issuer, shall be liable or responsible for any of the matters described in <u>clauses (i)</u> through <u>(vi)</u> of <u>Section</u> <u>2.03(f)</u>; *provided*, *however*, that anything in such clauses to the contrary notwithstanding, the Borrowers may have a claim against such L/C Issuer, and such L/C Issuer may be liable to the Borrowers, to the extent, but only to the extent, of any direct, as opposed to indirect, special, punitive, consequential or exemplary, damages suffered by a Borrower which a court of competent jurisdiction determines in a final non-appealable judgment were caused by such L/C Issuer's bad faith, willful misconduct or gross negligence. In furtherance and not in limitation of the foregoing, the applicable L/C Issuer may, in its sole discretion, either accept documents that appear on their face to be in order and make payment upon such documents, without responsibility for further investigation, regardless of any notice or information to the contrary, and such L/C Issuer shall not be responsible for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a 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 or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Letter of Credit Fees</u>. The Borrowers shall pay to the Administrative Agent for the account of each Revolving Credit Lender in accordance with its applicable Pro Rata Share, a Letter of Credit fee in Dollars which shall accrue for each Letter of Credit on the Dollar Amount thereof in an amount equal to the Applicable Rate then in effect for SOFR Loans with respect to the Revolving Credit Facility multiplied by the daily maximum amount then available to be drawn under such Letter of Credit (whether or not such maximum amount is then in effect under such Letter of Credit if such maximum amount

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increases automatically pursuant to the terms of such Letter of Credit); *provided*, *however*, that any Letter of Credit fees otherwise payable for the account of a Defaulting Lender with respect to any Letter of Credit as to which such Defaulting Lender has not provided Cash Collateral satisfactory to the applicable L/C Issuer pursuant to this <u>Section</u> <u>2.03</u> shall be payable, to the maximum extent permitted by applicable Law, to the other Revolving Credit Lenders in accordance with the upward adjustments in their respective applicable Pro Rata Shares allocable to such Letter of Credit pursuant to <u>Section</u> <u>2.17(a)(iv)</u>, with the balance of such fee, if any, payable to the applicable L/C Issuer for its own account. Such Letter of Credit fees shall be computed on a quarterly basis in arrears and shall be due and payable fifteen Business Days following each fiscal quarter, in respect of the quarterly period then ending (or portion thereof, in the case of the first payment), commencing with the first such date to occur after the issuance of such Letter of Credit, the date of termination or expiration of the applicable Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand. If there is any change in the Applicable Rate during any quarter, the daily maximum amount of each Letter of Credit shall be computed and multiplied by the Applicable Rate separately for each period during such quarter that such Applicable Rate was in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Fronting Fee and Documentary and Processing Charges Payable to an L/C Issuer</u>. The Borrowers shall pay directly to the applicable L/C Issuer for its own account to be agreed between the Borrowers and the applicable L/C Issuer (not to exceed 0.125% *per annum*) multiplied by the maximum daily amount then available to be drawn under such Letter of Credit on a quarterly basis in arrears and based on the Dollar Amount thereof. Such fronting fee shall be due and payable fifteen days after the last day of each fiscal quarter in arrears, commencing with the first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand. For purposes of computing the maximum daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with <u>Section</u> <u>1.09</u>. Such fronting fees shall be computed on a 360 days in a year basis. In addition, the Borrowers shall pay directly to the applicable L/C Issuer for its own account the customary issuance, presentation, administration, amendment and other processing fees, and other standard costs and charges, of such L/C Issuer relating to letters of credit as from time to time in effect. Such customary fees and standard costs and charges are due and payable within five Business Days of demand and are nonrefundable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Conflict with Letter of Credit Application</u>. In the event of any conflict between the terms hereof and the terms of any Letter of Credit Application, the terms hereof shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Reporting</u>. To the extent that any Letters of Credit are issued by an L/C Issuer other than the Administrative Agent, each such L/C Issuer shall furnish to the Administrative Agent a report detailing the L/C Obligations outstanding under all Letters of Credit issued by it, such report to be in a form and at reporting intervals as shall be agreed between the Administrative Agent and such L/C Issuer; *provided* that in no event shall such reports be furnished at intervals less than 31 days (and in no event shall any such report be provided earlier than the fifth Business Day after the end of any calendar month in respect of a calendar month period); *provided*, *further*, that failure to provide any such reporting shall not impair the rights of an L/C Issuer under the Loan Documents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Provisions Related to Extended Revolving Credit Commitments</u>. If the Maturity Date in respect of any Tranche of Revolving Credit Commitments occurs prior to the expiration of any Letter of Credit, then (i) if one or more other Tranches of Revolving Credit Commitments in respect of which the Maturity Date shall not have occurred are then in effect, such Letters of Credit shall automatically be deemed to have been issued (including for purposes of the obligations of the Revolving Credit Lenders to purchase participations therein and to make Revolving Credit Loans and payments in respect thereof pursuant to this <u>Section</u> <u>2.03</u>) under (and ratably participated in by Lenders pursuant to) the Revolving Credit Commitments in respect of such non-terminating Tranches up to an aggregate amount not to exceed the aggregate principal amount of the unused Revolving Credit Commitments thereunder at such time (it being understood that no partial face amount of any Letter of Credit may be so reallocated) and to the extent any Letters of Credit are not able to be reallocated pursuant to this <u>clause (l)</u> and there are outstanding Revolving Credit Loans under the non-terminating Tranches, the Borrowers agree to repay all such Revolving Credit Loans (or such lesser amount as is necessary to reallocate all Letters of Credit pursuant to this <u>clause (l)</u>) or (ii) to the extent not reallocated pursuant to immediately preceding <u>clause (i)</u>, the Borrowers shall Cash Collateralize any such Letter of Credit in accordance with <u>Section</u> <u>2.16</u> but only up to the amount of such Letter of Credit not so reallocated. Except to the extent of reallocations of participations pursuant to <u>clause (i)</u> of the immediately preceding sentence, the occurrence of a Maturity Date with respect to a given tranche of Revolving Credit Commitments shall have no effect upon (and shall not diminish) the percentage participations of the Revolving Credit Lenders in any Letter of Credit issued before such Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Letters of Credit Issued for Account of Restricted Subsidiaries</u>. Notwithstanding that a Letter of Credit issued or outstanding hereunder supports any obligations of, or is for the account of, a Restricted Subsidiary, or states that a Restricted Subsidiary is the "account party," "applicant," "customer," "instructing party," or the like of or for such Letter of Credit, and without derogating from any rights of the applicable L/C Issuer (whether arising by contract, at law, in equity or otherwise) against such Restricted Subsidiary in respect of such Letter of Credit, the Borrowers (i) shall reimburse, indemnify and compensate the applicable L/C Issuer hereunder for such Letter of Credit (including to reimburse any and all drawings thereunder) as if such Letter of Credit had been issued solely for the account of the applicable Borrower and (ii) irrevocably waives any and all defenses that might otherwise be available to it as a guarantor or surety of any or all of the obligations of such Restricted Subsidiary in respect of such Letter of Credit. The Borrowers hereby acknowledge that the issuance of such Letters of Credit for their Restricted Subsidiaries inures to the benefit of the Borrowers, and that the Borrowers' business derives substantial benefits from the businesses of such Restricted Subsidiaries.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Applicability of ISP and UCP</u>. Unless otherwise expressly agreed in writing by the applicable L/C Issuer and the applicable Borrower when a Letter of Credit is issued by such L/C Issuer, (i) the rules of the ISP shall apply to each standby Letter of Credit and (ii) the rules of the UCP shall apply to each commercial Letter of Credit. Notwithstanding the foregoing, no L/C Issuer shall be responsible to the Borrowers for, and such L/C Issuer's rights and remedies against the Borrowers shall not be impaired by, any action or inaction of such L/C Issuer required or permitted under any law, order, or practice that is required or permitted to be applied to any Letter of Credit or this Agreement, including the Laws or any order of a jurisdiction where such L/C Issuer or the beneficiary is located, the practice stated in the ISP or UCP, as applicable, or in the decisions, opinions, practice statements, or official commentary of the International Chamber of Commerce Banking Commission, the Bankers Association for Finance and Trade (BAFT), or the Institute of International Banking Law & Practice, whether or not any Letter of Credit chooses such laws or practice rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Replacement of an L/C Issuer</u>. Any L/C Issuer may be replaced at any time by written agreement between the Borrower Representative, the Administrative Agent, the replaced L/C Issuer and the successor L/C Issuer. The Administrative Agent shall notify the Revolving Credit Lenders of any such replacement of an L/C Issuer. At the time any such replacement shall become effective, the Borrower shall pay all unpaid fees accrued for the account of the replaced L/C Issuer pursuant to <u>clauses (h)</u> and <u>(i)</u> above. From and after the effective date of any such replacement, (i) the successor L/C Issuer shall have all the rights and obligations of an L/C Issuer under this Agreement with respect to Letters of Credit to be issued by it thereafter and (ii) references herein to the term "L/C Issuer" shall be deemed to include such successor or any previous L/C Issuer, or such successor and all previous L/C Issuers, as the context shall require. After the replacement of an L/C Issuer hereunder, the replaced L/C Issuer shall remain a party hereto and shall continue to have all the rights and obligations of an L/C Issuer under this Agreement with respect to Letters of Credit issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit or to extend, reinstate, or otherwise amend any then existing Letter of Credit.

Section 2.04 <u>Swing Line Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Swing Line Loan</u>. Subject only to the satisfaction (or waiver by the Swing Line Lenders) of the conditions set forth in <u>Section</u> <u>4.02</u>, the Swing Line Lenders, in reliance on the agreements of the Revolving Credit Lenders set forth in this <u>Section</u> <u>2.04</u>, agree to make Swing Line Loans in Dollars to the Borrowers from time to time on any Business Day during the Revolving Commitment Period, in an aggregate principal amount not to exceed at any time outstanding the amount of the Swing Line Sublimit; *provided* that, after giving effect to any Swing Line Loan, (x) (i) the Total Revolving Credit Outstandings shall not exceed the Revolving Credit Commitments and (ii) the aggregate principal amount outstanding of all Swing Line Loans shall not exceed the Swing Line Sublimit and (y) the aggregate Pro Rata Share of the Outstanding Amount of the Revolving Credit Loans of any Lender, *plus* such Lender's Pro Rata Share of the Outstanding Amount of Swing Line Loans, *plus* such Lender's Pro Rata Share of the Outstanding Amount of all L/C Obligations shall not exceed such Lender's Revolving Credit Commitment. Within the foregoing limits, the Borrowers may borrow, prepay and reborrow Swing Line Loans. Immediately upon the making of a Swing Line Loan by a Swing Line Lender, each Revolving Credit Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Swing Line Lenders a participation in such Swing Line Loan in an amount equal to such Revolving Credit Lender's Pro Rata Share of the amount of such Swing Line Loan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Borrowing Mechanics for Swing Line Loans</u>. Each Swing Line Loan Borrowing shall be made upon the Borrower Representative's irrevocable notice (on behalf of a Borrower) to the Swing Line Lenders and the Administrative Agent; *provided however* that such notice may be conditioned on the occurrence of any transaction anticipated to occur in connection with the Borrowing of such Swing Line Loans. Each such notice may be given by (A) telephone, or (B) a Swing Line Loan Request; *provided* that any telephonic notice by the Borrower Representative must be confirmed immediately thereafter by delivery to the Swing Line Lenders and the Administrative Agent of a Swing Line Loan Request. Each such Swing Line Loan Request must be received by the Swing Line Lenders and the Administrative Agent not later than 12:00 p.m. on the date of the requested Swing Line Loan Borrowing, and such notice shall specify (i) the amount to be borrowed, which shall be in a minimum of $100,000 or a whole multiple of $100,000 (or such lesser amounts agreed by the Swing Line Lenders) and (ii) the date of such Swing Line Loan Borrowing (which shall be a Business Day). Promptly after receipt by the Swing Line Lenders of such notice, the Swing Line Lenders will confirm with the Administrative Agent that the Administrative Agent has also received such notice and, if not, the Swing Line Lenders will notify the Administrative Agent of the contents thereof. Unless the Swing Line Lenders has received notice from the Administrative Agent (including at the request of the Required Revolving Lenders) prior to 3:30 p.m. on such requested borrowing date that one or more of the applicable conditions set forth in <u>Section</u> <u>4.02</u> is not then satisfied, then, the Swing Line Lenders shall make each Swing Line Loan available to the Borrowers, by wire transfer thereof in accordance with instructions provided to (and reasonably acceptable to) the Swing Line Lenders on the requested date of such Swing Line Loan (which instructions may include standing payment instructions, which may be updated from time to time by the Borrowers, *provided* that, unless the Swing Line Lenders shall otherwise agree, any such update shall not take effect until the Business Day immediately following the date on which such update is provided to the Swing Line Lenders).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Refinancing of Swing Line Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Swing Line Lenders at any time in its sole and absolute discretion may request, on behalf of the Borrowers (which hereby irrevocably authorizes the Swing Line Lenders to so request on its behalf), that each Revolving Credit Lender make a Revolving Credit Loan that is a Base Rate Loan in an amount equal to such Lender's Pro Rata Share of the amount of Swing Line Loans made by then Swing Line Lenders then outstanding (the "**Refunded Swing Line Loans**"). Such request shall be made in writing (which written request shall be deemed to be a Committed Loan Notice for purposes hereof) and in accordance (including with respect to prior notice requirements) with the requirements of <u>Section</u> <u>2.02(b)</u>**<u>Error! Reference source not found.</u>**, without regard to the minimum and multiples specified therein, but subject to the aggregate unused Revolving Credit Commitments and the conditions set forth in <u>Section</u> <u>4.02</u>. The Swing Line Lenders shall furnish the Borrower Representative with a copy of such Committed Loan Notice promptly after delivering such notice to the Administrative Agent. Each Revolving Credit Lender shall make an amount equal to its Pro Rata Share of the amount specified in such

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Committed Loan Notice available to the Administrative Agent in immediately available funds (and the Administrative Agent may apply Cash Collateral available with respect to the applicable Swing Line Loan) for the account of such Swing Line Lender at the Administrative Agent's Office not later than 1:00 p.m. on the day specified in such Committed Loan Notice, whereupon, subject to <u>Section</u> <u>2.04(c)(ii)</u>, each Revolving Credit Lender that so makes funds available shall be deemed to have made a Revolving Credit Loan that is a Base Rate Loan to the Borrowers in such amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If for any reason any Swing Line Loan cannot be refinanced by such a Revolving Credit Borrowing in accordance with <u>Section</u> <u>2.04(c)(i)</u>, the request for Revolving Credit Loans that are Base Rate Loans submitted by the Swing Line Lenders as set forth herein shall be deemed to be a request by the Swing Line Lenders that each of the Revolving Credit Lenders holding Revolving Credit Commitments fund its participation in the relevant Swing Line Loan, and each such Revolving Credit Lender's payment to the Administrative Agent for the account of the Swing Line Lenders pursuant to <u>Section</u> <u>2.04(c)(i)</u> shall be deemed payment in respect of such participation. The Administrative Agent shall notify the Borrower Representative of any participations in any Swing Line Loan funded pursuant to this <u>clause (ii)</u>, and thereafter payments in respect of such Swing Line Loan (to the extent of such funded participations) shall be made to the Administrative Agent for the benefit of the Lenders and not to the Swing Line Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If any Revolving Credit Lender fails to make available to the Administrative Agent for the account of the Swing Line Lenders any amount required to be paid by such Revolving Credit Lender pursuant to the foregoing provisions of this <u>Section</u> <u>2.04(c)</u> by the time specified in <u>Section</u> <u>2.04(c)(i)</u>, the Swing Line Lenders (acting through the Administrative Agent) shall be entitled to recover from such Revolving Credit Lender, on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to such Swing Line Lender at a rate per annum equal to the greater of the Federal Funds Rate from time to time in effect and a rate determined by the Swing Line Lenders in accordance with banking industry rules on interbank compensation, *<u>plus</u>* any reasonable administrative, processing or similar fees customarily charged by the Swing Line Lenders in connection with the foregoing. If such Revolving Credit Lender pays such amount (with interest and fees as aforesaid), the amount so paid shall constitute such Lender's Revolving Credit Loan included in the relevant Revolving Credit Borrowing or funded participation in the relevant Swing Line Loan, as the case may be. A certificate of the Swing Line Lenders submitted (through the Administrative Agent) to any Revolving Credit Lender with respect to any amounts owing under this <u>clause (iii)</u> shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Each such Revolving Credit Lender's obligation to make Revolving Credit Loans or to purchase and fund participations in Swing Line Loans pursuant to this <u>Section</u> <u>2.04(c)</u> shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right which such Lender may have against the Swing Line Lenders, the Borrowers or any other Person for any reason whatsoever, (B) the occurrence or continuance of a Default or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing; *provided* that each such Revolving Credit Lender's obligation to make Revolving Credit Loans

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pursuant to this <u>Section</u> <u>2.04(c)</u> is subject to the conditions set forth in <u>Section</u> <u>4.02</u>; *provided further* that, for the avoidance of doubt, the conditions set forth in <u>Section</u> <u>4.02</u> shall not apply to the purchase or funding of participations pursuant to this <u>Section</u> <u>2.04(e)</u>. No such funding of participations shall relieve or otherwise impair the obligation of the Borrowers to repay Swing Line Loans, together with interest as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Repayment of Participations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) At any time after any Revolving Credit Lender has purchased and funded a participation in a Swing Line Loan, if the Swing Line Lenders receive any payment on account of such Swing Line Loan, the Swing Line Lenders will promptly remit such Revolving Credit Lender's Pro Rata Share of such payment to the Administrative Agent (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Revolving Credit Lender's participation was funded) in like funds as received by the Swing Line Lenders, and any such amounts received by the Administrative Agent will be remitted by the Administrative Agent to the Revolving Credit Lenders that shall have funded their participations pursuant to <u>Section</u> <u>2.04(c)(ii)</u> to the extent of their interests therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If any payment received by the Swing Line Lenders in respect of principal or interest on any Swing Line Loan is required to be returned by the Swing Line Lenders under any of the circumstances described in <u>Section</u> <u>11.04</u> (including pursuant to any settlement entered into by the Swing Line Lenders in its reasonable discretion), each Revolving Credit Lender shall pay to such Swing Line Lender its Pro Rata Share thereof on demand of the Administrative Agent, *<u>plus</u>* interest thereon from the date of such demand to the date such amount is returned at a rate per annum equal to the Federal Funds Rate from time to time in effect. The Administrative Agent will make such demand upon the request of the Swing Line Lenders. The obligations of the Revolving Credit Lenders under this <u>clause (ii)</u> shall survive the payment in full of the Obligations and the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Interest for Account of Swing Line Lenders</u>. The Swing Line Lenders shall be responsible for invoicing the Borrowers for interest on the Swing Line Loans made by the Swing Line Lenders. Until each Revolving Credit Lender funds its Revolving Credit Loan that is a Base Rate Loan or participation pursuant to this <u>Section</u> <u>2.04</u> to refinance such Lender's Pro Rata Share of any Swing Line Loan made by the Swing Line Lenders, interest in respect of such Lender's share thereof shall be solely for the account of the Swing Line Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Payments Directly to Swing Line Lenders</u>. Except as otherwise expressly provided herein, the Borrowers shall make all payments of principal and interest in respect of the Swing Line Loans directly to the applicable Swing Line Lender.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Replacement of Swing Line Lenders</u>. Any Swing Line Lender may be replaced at any time by written agreement among the Borrower Representative, the Administrative Agent, the replaced Swing Line Lender and the successor Swing Line Lender. The Administrative Agent shall notify the Lenders of any such replacement of a Swing Line Lender. At the time any such replacement shall become effective, the Borrowers shall pay all unpaid interest accrued for the account of the replaced Swing Line Lender pursuant to <u>Section</u> <u>2.13(a)</u>. From and after the effective date of any such replacement, (x) the successor Swing Line Lender shall have all the rights and obligations of the replaced Swing Line Lender under this Agreement with respect to Swing Line Loans made thereafter and (y) references herein to the term "Swing Line Lender" shall be deemed to refer to such successor or to any previous Swing Line Lender, or to such successor and all previous Swing Line Lenders, as the context shall require. After the replacement of a Swing Line Lender hereunder, the replaced Swing Line Lender shall remain a party hereto and shall continue to have all the rights and obligations of a Swing Line Lender under this Agreement with respect to Swing Line Loans made by it prior to its replacement, but shall not be required to make additional Swing Line Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Resignation of Swing Line Lenders</u>. Subject to the appointment and acceptance of a successor Swing Line Lender, any Swing Line Lender may resign as a Swing Line Lender at any time upon thirty days' prior written notice to the Administrative Agent, the Borrower Representative and the Lenders, in which case, such Swing Line Lender shall be replaced in accordance with <u>Section</u> <u>2.04(g)</u> above.

Section 2.05 <u>Prepayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Optional</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrowers may, upon notice substantially in the form of <u>Exhibit J</u> to the Administrative Agent, at any time or from time to time voluntarily prepay Loans in whole or in part without premium or penalty except as set forth in <u>Sections 2.05(a)(iii)</u> below; *provided* that (1) such notice must be received by the Administrative Agent not later than (A) 12:00 p.m. (New York City time) three Business Days prior to any date of prepayment of SOFR Loan or Alternative Currency Term Rate Loans and (B) 11:00 a.m. (New York City time) one Business Day prior to any date of prepayment of Base Rate Loans (including Swing Line Loans) or Alternative Currency Daily Rate Loans (or such shorter period as the Administrative Agent shall agree); (2) any prepayment of SOFR Loans shall be (x) in a principal amount of $1,000,000 (or the equivalent Dollar Amount), or (y) a whole multiple of $500,000 (or the equivalent Dollar Amount) in excess thereof; and (3) any prepayment of Base Rate Loans shall be (x) in a principal amount of $1,000,000 (or the equivalent Dollar Amount), or (y) a whole multiple of $500,000 (or the equivalent Dollar Amount) in excess thereof or, in each case, if less, the entire principal amount thereof then outstanding. Each such notice shall specify the date and amount of such prepayment, the Tranche of Loans to be prepaid, the Type(s) of Loans to be prepaid and, if SOFR Loans or Alternative Currency Term Rate Loans are to be prepaid, the Interest Period(s) of such Loans (except that if the class of Loans to be prepaid includes two or more of Base Rate Loans, Alternative Currency Daily Rate Loans, SOFR Loans and Alternative Currency Term Rate Loans, absent direction by the Borrower Representative, the applicable prepayment shall be applied first to, if such prepayment is to be made in Dollars, Base Rate Loans to the full extent thereof before application to SOFR Loans, and if such prepayment is to be made in an Alternative Currency, to the Alternative Currency Daily Rate Loans denominated in such Alternative Currency prior to application to any

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Alternative Currency Term Rate Loans). The Administrative Agent will promptly notify each Lender of its receipt of each such notice, and of the amount of such Lender's ratable portion of such prepayment (based on such Lender's ratable share of the relevant Facility). If such notice is given by the Borrowers, subject to <u>clause (ii)</u> below, the applicable Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein. Any prepayment of a SOFR Loan or an Alternative Currency Term Rate Loan shall be accompanied by all accrued interest thereon, together with any additional amounts required pursuant to <u>Section</u> <u>2.05(a)(iii)</u>. Each prepayment of the principal of, and interest on, any Revolving Credit Loans denominated in an Alternative Currency, shall be made in the relevant Alternative Currency. Subject to <u>Section</u> <u>2.17</u>, each prepayment of outstanding Term Loan Tranches pursuant to this <u>Section</u> <u>2.05(a)</u> shall be applied to the Term Loan Tranche or Term Loan Tranches designated on such notice on a pro rata basis within such Term Loan Tranche. Subject to <u>Section</u> <u>2.17</u>, each prepayment of an outstanding Term Loan Tranche pursuant to this <u>Section</u> <u>2.05(a)</u> shall be applied to the remaining amortization payments of such Term Loan Tranche as directed by the Borrower Representative (or, if the Borrower Representative has not made such designation, in direct order of maturity), but, in any event, on a pro rata basis to the Lenders within such Term Loan Tranche.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding anything to the contrary contained in this Agreement, any notice of prepayment under <u>Section</u> <u>2.05(a)(i)</u> may state that it is conditioned upon the occurrence or non-occurrence of any event specified therein (including the effectiveness of other credit facilities), in which case such notice may be revoked or extended by the Borrower Representative (by written notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If a Borrower (A) makes a voluntary prepayment of the Closing Date Term Loans pursuant to this <u>Section</u> <u>2.05(a)</u> resulting in a Repricing Event, (B) effects an amendment with respect to Closing Date Term Loans resulting in a Repricing Event or (C) makes a prepayment of Closing Date Term Loans pursuant to <u>Section</u> <u>2.05(b)(iii)</u> resulting in a Repricing Event, in each case prior to the six-month anniversary of the Closing Date, the Borrowers shall pay to the Administrative Agent, for the ratable account of the applicable Term Lenders, a prepayment premium in an amount equal to 1.0% of the principal amount prepaid (or in the case of <u>clause (B)</u>, a prepayment premium in an amount equal to 1.0% of the principal amount of affected Closing Date Term Loans held by Term Lenders not consenting to such amendment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Mandatory</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For any Excess Cash Flow Period, within ten Business Days after financial statements have been delivered pursuant to <u>Section</u> <u>6.01(a)</u> and the related Compliance Certificate has been delivered pursuant to <u>Section</u> <u>6.02(a)</u> (or, if later, the date on which such financial statements and such Compliance Certificate are required to be delivered), the Borrowers shall prepay an aggregate principal amount of Term Loans in an amount equal to (A) 50.0% (as may be adjusted pursuant to the proviso below) of Excess Cash Flow for such Excess Cash Flow Period, *minus* (B) at the option of the Borrower Representative, the sum of, without duplication:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the aggregate amount of voluntary principal prepayments of the Loans or Indebtedness that is secured by a Lien on the Collateral on a *pari passu* basis with the Initial Term Loans and the Initial Revolving Tranche, in each case, made during the period commencing on the first day of the relevant Excess Cash Flow Period and ending on the last day of the applicable Excess Cash Flow Period (or, at the Borrowers' option, after the end of the relevant Excess Cash Flow Period but prior to the time such Excess Cash Flow payment is due; *provided* that to the extent the Borrowers exercise such option, such deducted amount shall not be permitted as a reduction against the subsequent Excess Cash Flow Period calculation) (including prepayments at a discount to par and open market purchases, with credit given for the aggregate principal amount prepaid or purchased in connection with lender replacement provisions (including pursuant to <u>Section</u> <u>3.08</u>) (except Loans under any Revolving Tranche or other prepayments of revolving Indebtedness that is secured by a Lien on the Collateral on a *pari passu* basis with the Revolving Credit Commitments that are not accompanied by a corresponding permanent commitment reduction of the Revolving Tranches), in each case other than to the extent that any such prepayment is funded with the proceeds of Specified Refinancing Debt, Refinancing Notes or any other long-term Indebtedness (other than revolving Indebtedness),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the aggregate amount of expenditures actually made by the Borrower Parties to the extent not financed with the proceeds of long-term funded Indebtedness (other than Indebtedness under revolving credit facilities) (including expenditures for the payment of financing fees) during the period commencing on the first day of the relevant Excess Cash Flow Period and ending on the last day of the applicable Excess Cash Flow Period (or, at the Borrowers' option, after the end of the relevant Excess Cash Flow Period but prior to the time such Excess Cash Flow payment is due; *provided* that to the extent the Borrowers exercise such option, such deducted amount shall not be permitted as a reduction against the subsequent Excess Cash Flow Period calculation), to the extent that such expenditures are not expensed during such fiscal year or are not deducted in calculating Consolidated Net Income (and so long as there has not been any reduction in respect of such expenditures in arriving at Consolidated Net Income for such period),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) any amount not required to be applied to such prepayment pursuant to <u>Section</u> <u>2.05(b)(viii)</u> or <u>(ix)</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the portion of the Excess Cash Flow applied (to the extent any Borrower Party is required by the terms thereof) to prepay, repay or purchase Indebtedness that is secured by a Lien on the Collateral on a *pari passu* basis with the Initial Term Loans and the Initial Revolving Tranche (to the extent the documentation governing such Indebtedness requires such a prepayment or repurchase thereof with Excess Cash Flow, in each case in an amount not to exceed the product of (x) the amount of Excess Cash Flow and (y) a fraction, the numerator of which is the outstanding principal amount of such other Indebtedness (or to the extent such amount is not in Dollars, such equivalent amount of such Indebtedness converted into Dollars as determined in accordance with <u>Section</u> <u>1.08</u>) and the denominator of which is the aggregate outstanding principal amount of Term Loans and all such other Indebtedness), in each case other than to the extent that any such prepayment is funded with the proceeds of Specified Refinancing Debt, Refinancing Notes or any other long-term Indebtedness (other than revolving Indebtedness),

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the aggregate amount of capital expenditures and acquisitions of intellectual property either made in cash or accrued by the Borrower Parties during the period commencing on the first day of the relevant Excess Cash Flow Period and ending on the last day of the applicable Excess Cash Flow Period (or, at the Borrowers' option, after the end of the relevant Excess Cash Flow Period but prior to the time such Excess Cash Flow payment is due; *provided* that to the extent the Borrowers exercise such option, such deducted amount shall not be permitted as a reduction against the subsequent Excess Cash Flow Period calculation) and in each case other than to the extent that any such capital expenditures are funded with the proceeds of Specified Refinancing Debt, Refinancing Notes or any other long-term Indebtedness (other than revolving Indebtedness),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) the aggregate amount of cash (including costs and expenses related thereto) paid by the Borrower Parties in connection with Investments (including, without limitation, any acquisitions and, without duplication of <u>clause (5)</u> above, acquisitions of intellectual property, but excluding investments in cash and Cash Equivalents and intercompany Investments) during the period commencing on the first day of the relevant Excess Cash Flow Period and ending on the last day of the applicable Excess Cash Flow Period (or, at the Borrowers' option, after the end of the relevant Excess Cash Flow Period but prior to the time such Excess Cash Flow payment is due; *provided* that to the extent the Borrowers exercise such option, such deducted amount shall not be permitted as a reduction against the subsequent Excess Cash Flow Period calculation) and in each case other than to the extent that any such cash is funded with the proceeds of Specified Refinancing Debt, Refinancing Notes or any other long-term Indebtedness (other than revolving Indebtedness),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) cash payments by the Borrowers and the Restricted Subsidiaries actually made to the extent not financed with the proceeds of longterm funded Indebtedness (other than Indebtedness under revolving credit facilities) in respect of any purchase price holdbacks, earn-out obligations, transaction bonuses or long-term liabilities of the Borrowers and the Restricted Subsidiaries (other than Indebtedness) during the period commencing on the first day of the relevant Excess Cash Flow Period and ending on the last day of the applicable Excess Cash Flow Period (or, at the Borrowers' option, after the end of the relevant Excess Cash Flow Period but prior to the time such Excess Cash Flow payment is due; *provided* that to the extent the Borrowers exercise such option, such deducted amount shall not be permitted as a reduction against the subsequent Excess Cash Flow Period calculation) and in each case other than to the extent that any such cash is funded with the proceeds of Specified Refinancing Debt, Refinancing Notes or any other long-term Indebtedness (other than revolving Indebtedness);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) the Fair Market Value of any Restricted Payments actually paid (and permitted to be paid) pursuant to <u>Section</u> <u>7.05</u> (excluding <u>clause (8)</u> <u>thereof</u>) to the extent such Restricted Payments were not financed with the proceeds of long-term funded Indebtedness (other than Indebtedness under revolving credit facilities), during the period commencing on the first day of the relevant Excess Cash Flow Period and ending on the last day of the applicable Excess Cash Flow Period (or, at the Borrowers' option, after the end of the relevant Excess Cash Flow Period but prior to the time such Excess Cash Flow payment is due; *provided* that to the extent the Borrowers exercise such option, such deducted amount shall not be permitted as a reduction against the subsequent Excess Cash Flow Period calculation); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) without duplication of amounts deducted from Excess Cash Flow in prior periods, (i) the aggregate consideration required (or in the case of letters of intent, contemplated) to be paid in cash by the Borrowers or any of the Restricted Subsidiaries pursuant to signed letters of intent, binding contracts or commitments, or purchase orders (to the extent not financed with the proceeds of long-term funded Indebtedness (other than Indebtedness under revolving credit facilities), the "**Contract Consideration**") relating to Permitted Acquisitions, other Investments, capital expenditures or acquisitions of intellectual property to be consummated and/or (ii) otherwise committed or budgeted to be made in connection with capital expenditures, acquisitions or other Investments or Restricted Payments described in <u>clause (8)</u> above; *provided* that, to the extent the aggregate amount actually utilized to finance such Permitted Acquisitions, other Investments, capital expenditures or acquisitions of intellectual property during any period is less than the Contract Consideration that reduced Excess Cash Flow for the prior period, the amount of such shortfall shall be added to the calculation of Excess Cash Flow for the period in which such Permitted Acquisition, other Investment, capital expenditure or acquisitions of intellectual property is consummated;

*provided* that such percentage in respect of any Excess Cash Flow Period shall be reduced to 25.0% and to 0.0% if, after giving Pro Forma Effect to any prepayment pursuant to this <u>clause (i)</u>, the Consolidated First Lien Net Leverage Ratio as of the last day of the fiscal year to which such Excess Cash Flow Period relates was equal to or less than 5.25:1.00 or 4.75:1.00, respectively (the amount described in this <u>clause (i)</u>, the "**ECF Prepayment Amount**"); *provided*, *further*, that (w) no prepayment shall be required with respect to any Excess Cash Flow Period unless the ECF Prepayment Amount exceeds the greater of $115,000,000 and 25.0% of Four Quarter Consolidated EBITDA (the "**De Minimis ECF Threshold**"), and in such case, the ECF Prepayment Amount shall be the amount in excess thereof, (x) if the amount of any required prepayment pursuant to this <u>Section</u> <u>2.05(b)(i)</u> (without giving effect to the De Minimis ECF Threshold) for any Excess Cash Flow Period is less than the De Minimis ECF Threshold for such Excess Cash Flow Period, the excess, if any, of (X) the De Minimis ECF Threshold for such Excess Cash Flow Period <u>minus</u> (Y) the amount of the required prepayment (without giving effect to the De Minimis ECF Threshold) pursuant to this <u>Section</u> <u>2.05(b)(i)</u> for such Excess Cash Flow Period (the "**ECF Carry-Forward Amount**") shall be applied to increase the De Minimis ECF Threshold in succeeding Excess Cash Flow Periods, (y) Excess Cash Flow prepayments in any Fiscal Year shall first reduce the De Minimis ECF Threshold for such year (without giving effect to any ECF Carry-Forward Amount from the prior Fiscal Year) and then to reduce the ECF Carry-Forward Amount from the prior Fiscal Year and (z) the portion of the De Minimis ECF Threshold projected by the Borrowers in good faith to be available under this <u>Section</u> <u>2.05(b)(i)</u> in the immediately succeeding Excess Cash Flow Period shall be permitted to be carried back to the then current Excess Cash Flow Period to increase the De Minimis ECF Threshold only for such Excess Cash Flow Period); *provided*, *further*, that, if the Consolidated First Lien Net Leverage Ratio on a Pro Forma Basis after giving effect to any Excess Cash Flow prepayment would result in the percentage in respect of the applicable Excess Cash Flow Period being reduced to 25.0% or 0.0%, then such reduced percentage applicable to the Excess Cash Flow prepayment required to be made shall apply.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (A) If any Asset Sale pursuant to <u>Section</u> <u>7.04</u> (other than a Permitted Core Business Disposition) or Casualty Event (or series of related Asset Sales pursuant to <u>Section</u> <u>7.04</u> (other than a Permitted Core Business Disposition) or Casualty Events), in each case, with respect to Collateral results in the receipt by any Borrower Party of aggregate after-tax Net Cash Proceeds in excess of the greater of $115,000,000 and 25.0% of Four Quarter Consolidated EBITDA ("**Relevant Transaction**"; *provided*, that, in no case shall a Relevant Transaction occur as a result of an Asset Sale required by Governmental Authorities or applicable Law, as determined in good faith by the Borrower Representative), then, except to the extent the Borrower Representative elects to reinvest an amount equal to all or a portion of such Net Cash Proceeds in accordance with <u>Section</u> <u>7.04</u>, the applicable Borrowers shall prepay, subject to <u>Section</u> <u>2.05(b)(viii)</u> and <u>Section</u> <u>2.05(b)(ix)</u>, an aggregate principal amount of Term Loans in an amount equal to 50% (as may be adjusted pursuant to the second proviso below) of the Net Cash Proceeds received from such Relevant Transaction within 30 Business Days of receipt thereof (or within 30 Business Days after the later of the date the threshold referred to above is first exceeded and the date the relevant Net Cash Proceeds are received) by any Borrower Party; *provided* that the applicable Borrower may use a portion of the Net Cash Proceeds received from such Relevant Transaction to prepay or repurchase any other Indebtedness that is *pari passu* in right of payment and security with the Initial Term Loans to the extent such other Indebtedness and the Liens securing the same are permitted hereunder and the documentation governing such other Indebtedness requires such a prepayment or repurchase thereof with the proceeds of such Relevant Transaction, to the extent not deducted in the calculation of Net Cash Proceeds, in each case in an amount not to exceed the product of (1) the amount of such Net Cash Proceeds and (2) a fraction, the numerator of which is the outstanding principal amount of such other Indebtedness (or to the extent such amount is not in Dollars, such equivalent amount of such Indebtedness converted into Dollars as determined in accordance with <u>Section</u> <u>1.08</u>) and the denominator of which is the aggregate outstanding principal amount of Term Loans and such other Indebtedness (or to the extent such amount is not in Dollars, such equivalent amount of such Indebtedness converted into Dollars as determined in accordance with <u>Section</u> <u>1.08</u>) to the extent otherwise required hereunder that the Lenders are offered a ratable share of such Net Cash Proceeds; *provided*, *further*, that (i) such prepayment percentage shall be reduced from 50.0% to 25.0% to 0.0% if, on a Pro Forma Basis after giving effect to such Asset Sale or Casualty Event, as the case may be, and the use of proceeds therefrom, the Consolidated First Lien Net Leverage Ratio would be equal to or less than 5.25:1.00 or 4.75:1.00, respectively (any Net Cash Proceeds in respect of any such Asset Sale or Casualty Event not required to be applied in accordance with this <u>Section</u> <u>2.05(b)</u> as a result of the application of this proviso shall collectively constitute "**Leverage Excess Proceeds**"); *provided*, *further*, that only the amount of Net Cash Proceeds in excess of the greater of $115,000,000 and 25.0% of Four Quarter Consolidated EBITDA for any Asset Sale or Casualty Event (or series of related Asset Sales or Casualty Events) shall be subject to prepayment pursuant to this <u>Section</u> <u>2.05(b)(ii)</u> (collectively, the "**De Minimis Proceeds Threshold**") and, in such case, the required prepayment shall be only the amount in excess thereof; *provided, further*, that (1) if the amount of any prepayment that would have been

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required pursuant to this <u>Section</u> <u>2.05(b)(ii)</u> (without giving effect to the De Minimis Proceeds Threshold) for any Fiscal Year is less than the De Minimis Proceeds Threshold for such Fiscal Year, the excess, if any, of (x) the De Minimis Proceeds Threshold for such Fiscal Year <u>minus</u> (y) the amount of the prepayment that would have been required but for the De Minimis Proceeds Threshold pursuant to this <u>Section</u> <u>2.05(b)(ii)</u> for such Fiscal Year (the "**Proceeds Carry-Forward Amount**") shall be applied to increase the De Minimis Proceeds Threshold only in the immediately succeeding Fiscal Year and (2) prepayments in accordance with this <u>Section</u> <u>2.11(b)(ii)</u> in any Fiscal Year shall first reduce the De Minimis Proceeds Threshold for such year (without giving effect to the Proceeds Carry-Forward Amount from the prior Fiscal Year) and then reduce the Proceeds Carry-Forward Amount from the prior Fiscal Year; and (B) upon the consummation of a Permitted Core Business Disposition, except to the extent the Borrower Representative elects to reinvest an amount equal to all or a portion of such Net Cash Proceeds in accordance with <u>Section</u> <u>7.04</u>, subject to <u>Section</u> <u>2.05(b)(viii)</u> and <u>Section</u> <u>2.05(b)(ix)</u>, the Borrowers shall apply 100% of the aggregate Net Cash Proceeds received from such Permitted Core Business Disposition to prepay the aggregate principal amount of Term Loans until the Consolidated First Lien Net Leverage Ratio equals 5.75:1.00, calculated to give Pro Forma Effect to such Permitted Core Business Disposition, but without netting any of the proceeds in connection therewith except to the extent actually applied in prepayment of the Term Loans (any Net Cash Proceeds in respect of any such Permitted Core Business Disposition not required to be applied in accordance with this <u>Section</u> <u>2.05(b)</u> shall collectively constitute "**Permitted Core Business Disposition Leverage Excess Proceeds**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Upon the incurrence or issuance by any Borrower Party of any Refinancing Notes, any Specified Refinancing Term Loans or any Indebtedness not expressly permitted to be incurred or issued pursuant to <u>Section</u> <u>7.01</u>, the Borrowers shall prepay an aggregate principal amount of Term Loan Tranches in an amount equal to 100.0% of all Net Cash Proceeds received therefrom immediately upon receipt thereof by such Borrower Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Upon the incurrence by any Borrower Party of any Specified Refinancing Debt constituting revolving credit facilities, the Borrowers shall prepay an aggregate principal amount of Revolving Credit Loans in an amount equal to 100.0% of all Net Cash Proceeds received therefrom and terminate the commitments related thereto immediately upon receipt thereof by such Borrower Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) If for any reason the sum of the Total Revolving Credit Outstandings or the sum of outstanding Specified Refinancing Revolving Loans at any time exceed the sum of the applicable Revolving Tranche in respect thereof (including after giving effect to any reduction in such Revolving Credit Commitments pursuant to <u>Section</u> <u>2.06</u>), the Borrowers shall immediately prepay the Loans under the applicable Revolving Tranche and/or Cash Collateralize the L/C Obligations related thereto in an aggregate amount equal to such excess; *provided*, *however*, that the Borrowers shall not be required to Cash Collateralize the L/C Obligations pursuant to this <u>Section</u> <u>2.05(b)(v)</u> unless after the prepayment in full of the Loans under the applicable Revolving Tranche the sum of the Total Revolving Credit Outstandings or the outstanding Specified Refinancing Revolving Loans, as the case may be, exceed the aggregate Revolving Credit Commitments or the commitments to make Specified Refinancing Revolving Loans, as the case may be, then in effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Subject to <u>Section</u> <u>2.17</u>, the aggregate amount of any prepayment of Term Loans that is required pursuant to this <u>Section</u> <u>2.05(b)</u> shall be made to each Term Loan Tranche on a pro rata basis (or, if agreed to in writing by the Majority Lenders of a Term Loan Tranche, in a manner that provides for more favorable prepayment treatment of other Term Loan Tranches, so long as each other such Term Loan Tranche receives its Pro Rata Share of any amount to be applied more favorably, except to the extent otherwise agreed by the Majority Lenders of each Term Loan Tranche receiving less than such Pro Rata Share) (other than a prepayment of (x) Term Loans or Revolving Credit Loans, as applicable, with the proceeds of Indebtedness incurred pursuant to <u>Section</u> <u>2.18</u>, which shall be applied to the Term Loan Tranche or Revolving Tranche, as applicable, being refinanced pursuant thereto or (y) Term Loans with the proceeds of any Refinancing Notes issued to the extent permitted under <u>Section</u> <u>7.01(a)</u>, which shall be applied to the Term Loan Tranche being refinanced pursuant thereto). Amounts to be applied to a Term Loan Tranche in connection with prepayments made pursuant to this <u>Section</u> <u>2.05(b)</u> shall be applied to interest on each such Term Loan Tranche on a pro rata basis that is accrued and payable at such time and thereafter to the remaining scheduled installments with respect to such Term Loan Tranche as directed by the Borrower Representative (or, if the Borrower Representative has not made such designation, in direct order of maturity). Each prepayment of Term Loans under a particular Term Loan Tranche of a Facility pursuant to this <u>Section</u> <u>2.05(b)</u> shall be applied on a pro rata basis to the then outstanding Base Rate Loans and SOFR Loans under such Term Loan Tranche; *provided* that, if there are no Declining Lenders with respect to such prepayment, then the amount thereof shall be applied first to Base Rate Loans under such Term Loan Tranche to the full extent thereof before application to SOFR Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) All prepayments under this <u>Section</u> <u>2.05</u> shall be made together with, to the extent applicable, any additional amounts required pursuant to <u>Section</u> <u>2.05(a)(iii)</u>. Notwithstanding any of the other provisions of this <u>Section</u> <u>2.05(b)</u>, so long as no Event of Default shall have occurred and be continuing, if any prepayment of SOFR Loans or Alternative Currency Term Rate Loans is required to be made under this <u>Section</u> <u>2.05(b)</u>, other than on the last day of the Interest Period therefor, the applicable Borrower may, in its sole discretion, deposit the amount of any such prepayment otherwise required to be made thereunder into a Cash Collateral account until the last day of such Interest Period, at which time the Administrative Agent shall be authorized (without any further action by or notice to or from the Borrowers or any other Loan Party) to apply such amount to the prepayment of such Loans in accordance with this <u>Section</u> <u>2.05(b)</u> (it being agreed, for clarity, that interest shall continue to accrue on the Loans so prepaid until the amount so deposited is actually applied to prepay such Loans). Upon the occurrence and during the continuance of any Event of Default, the Administrative Agent shall also be authorized (without any further action by or notice to or from the Borrowers or any other Loan Party) to apply such amount to the prepayment of the outstanding Loans in accordance with this <u>Section</u> <u>2.05(b)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Notwithstanding any other provisions of this <u>Section</u> <u>2.05</u>, to the extent that any or all of the Net Cash Proceeds of any Asset Sale by a Non-U.S. Subsidiary (or a U.S. Subsidiary of a Non-U.S. Subsidiary) or the Net Cash Proceeds of any Casualty Event from a Non-U.S. Subsidiary (or a U.S. Subsidiary of a Non-U.S. Subsidiary), in each case giving rise to a prepayment event pursuant to <u>Section</u> <u>2.05(b)(ii)</u>, or Excess Cash Flow giving rise to a prepayment event pursuant to <u>Section</u> <u>2.05(b)(i)</u> are or is prohibited, restricted or delayed by applicable local law, rule or regulation (including, without limitation, financial assistance and corporate benefit restrictions and fiduciary and statutory duties of any director or officer of such Subsidiaries) from being repatriated to the Borrowers or so prepaid or such repatriation or prepayment would present a material risk of liability for the applicable Subsidiary or its directors or officers (or gives rise to a material risk of breach of fiduciary or statutory duties by any director or officer), the portion of such Net Cash Proceeds or Excess Cash Flow so affected will not be required to be applied to repay Term Loans at the times provided in this <u>Section</u> <u>2.05</u> but may be retained by the applicable Non-U.S. Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Notwithstanding any other provisions of this <u>Section</u> <u>2.05</u>, to the extent that the Borrowers have determined in good faith that repatriation of any or all of the Net Cash Proceeds of any Asset Sale or any Casualty Event, in each case by or with respect to a Subsidiary giving rise to a prepayment event pursuant to <u>Section</u> <u>2.05(b)(ii)</u>, or Excess Cash Flow giving rise to a prepayment event pursuant to <u>Section</u> <u>2.05(b)(i)</u>, would result in adverse tax consequences that are not de minimis (as determined by the Borrower Representative in good faith), the Net Cash Proceeds or Excess Cash Flow so affected will not be required to be applied to repay Term Loans at the times provided in this <u>Section</u> <u>2.05</u> but may be retained by the applicable Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) The Borrowers shall not be required to monitor any Payment Block and/or reserve cash for future repatriation after the Borrower Representative has notified the Administrative Agent of the existence of such Payment Block.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Term Lender Opt-Out</u>. With respect to any mandatory prepayment of Initial Term Loans, and, unless otherwise specified in the documents therefor, other Term Loan Tranches, pursuant to <u>Section</u> <u>2.05(b)(i)</u> or <u>(ii)(A)</u>, any Appropriate Lender, at its option (but solely to the extent the Borrower Representative elects for this <u>clause (c)</u> to be applicable to a given prepayment, other than in connection with any Refinancing Notes or any Specified Refinancing Term Loans), may elect not to accept such prepayment as provided below. The Borrower Representative may notify the Administrative Agent of any event giving rise to a prepayment under <u>Section</u> <u>2.05(b)(i)</u> or <u>(ii)(A)</u> at least ten Business Days prior to the date of such prepayment. Each such notice shall specify the date of such prepayment and provide a reasonably detailed calculation of the amount of such prepayment that is required to be made under <u>Section</u> <u>2.05(b)(i)</u> or <u>(ii)</u> (the "**Prepayment Amount**"). The Administrative Agent will promptly notify each Appropriate Lender of the contents of any such prepayment notice so received from the Borrowers, including the date on which such prepayment is to be made (the "**Prepayment Date**"). Any Appropriate Lender may (but solely to the extent the Borrower Representative elects for this <u>clause (c)</u> to be applicable to a given prepayment) decline to accept all (but not less than all) of its share of any such prepayment (any such Lender, a "**Declining Lender**") by providing

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written notice to the Administrative Agent no later than five Business Days after the date of such Appropriate Lender's receipt of notice from the Administrative Agent regarding such prepayment. If any Appropriate Lender does not give a notice to the Administrative Agent on or prior to such fifth Business Day informing the Administrative Agent that it declines to accept the applicable prepayment, then such Lender will be deemed to have accepted such prepayment. On any Prepayment Date, an amount equal to the Prepayment Amount *minus* the portion thereof allocable to Declining Lenders, in each case for such Prepayment Date, shall be paid to the Administrative Agent by the applicable Borrower and applied by the Administrative Agent ratably to prepay Term Loans under the Term Loan Tranches owing to Appropriate Lenders (other than Declining Lenders) in the manner described in <u>Section</u> <u>2.05(b)</u> for such prepayment. Any amounts that would otherwise have been applied to prepay Term Loans, New Term Loans or Specified Refinancing Term Loans owing to Declining Lenders but declined or not required to be applied shall be retained by the Borrowers (any Net Cash Proceeds retained by the Borrowers in accordance with this <u>Section</u> <u>2.05(c)</u>, shall constitute "**Retained Declined Proceeds**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All Loans shall be repaid, whether pursuant to this <u>Section</u> <u>2.05</u> or otherwise, in the currency in which they were made.

Section 2.06 <u>Termination or Reduction of Commitments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Optional</u>. The Borrowers may, upon written notice by the Borrower Representative to the Administrative Agent, terminate the unused portions of the Commitments under any Term Loan Tranche, the Letter of Credit Sublimit or the unused Revolving Credit Commitments under any Revolving Tranche, or from time to time permanently reduce the unused portions of the Commitments under any Term Loan Tranche, the Letter of Credit Sublimit or the unused Revolving Credit Commitments under any Revolving Tranche without any premium or penalty; *provided* that (i) any such notice shall be received by the Administrative Agent three Business Days (or such shorter period as the Administrative Agent shall agree) prior to the date of termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of $500,000 (or the equivalent Dollar Amount) or any whole multiple of $100,000 (or the equivalent Dollar Amount) in excess thereof and (iii) the Borrowers shall not terminate or reduce (A) the Commitments under any Tranche of the Revolving Credit Facility if, after giving effect thereto and to any concurrent prepayments hereunder, (x) the Total Revolving Credit Outstandings would exceed the Revolving Credit Facility or (y) the Total Revolving Credit Outstandings with respect to such Tranche would exceed the Revolving Credit Commitments under such Tranche or (B) the Letter of Credit Sublimit if, after giving effect thereto, the Outstanding Amount of L/C Obligations not fully Cash Collateralized hereunder would exceed the Letter of Credit Sublimit. Any such notice of termination or reduction of commitments pursuant to this <u>Section</u> <u>2.06(a)</u> may state that it is conditioned upon the occurrence or non-occurrence of any event specified therein (including the effectiveness of other credit facilities), in which case such notice may be revoked by the Borrower Representative (by written notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied. For the avoidance of doubt, upon termination of the Aggregate Commitments and payment in full of all Obligations in cash and in immediately available funds (other than (A) contingent indemnification obligations as to which no claim

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has been asserted and (B) obligations and liabilities under Secured Cash Management Agreements, Secured Hedge Agreements, and Secured Third Party Letters of Credit) and the expiration without any pending drawing or termination of all Letters of Credit (other than Letters of Credit that have been Cash Collateralized or as to which arrangements satisfactory to the L/C Issuer that issued such Letters of Credit shall have been made), this Agreement shall automatically terminate and the Administrative Agent shall comply with <u>Section</u> <u>9.01(c)</u> and <u>Section</u> <u>9.11</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Mandatory</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Initial Term Loan Commitment of each Lender shall be automatically and permanently reduced to $0 upon the making of such Lender's Initial Term Loans pursuant to <u>Section</u> <u>2.01(a)</u>. The Delayed Draw Commitment of each Lender shall be automatically and permanently reduced (x) by the aggregate principal amount of Delayed Draw Term Loans made from time to time by such Lender pursuant to <u>Section</u> <u>2.01(a)</u> and (y) to $0 upon the Delayed Draw Commitment Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Upon the incurrence by any Borrower Party of any Specified Refinancing Debt constituting revolving credit facilities, the Revolving Credit Commitments of the Lenders under the Tranche of Revolving Credit Loans being refinanced shall be automatically and permanently reduced on a ratable basis by an amount equal to 100.0% of the Commitments under such revolving credit facilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If after giving effect to any reduction or termination of Revolving Credit Commitments under this <u>Section</u> <u>2.06</u>, the Letter of Credit Sublimit exceeds the amount of the Revolving Credit Facility at such time, the Letter of Credit Sublimit shall be automatically reduced by the amount of such excess, or the Swing Line Sublimit exceeds the amount of the Revolving Credit Facility at such time, the Swing Line Sublimit shall be automatically reduced by the amount of such excess.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The aggregate Revolving Credit Commitments with respect to any Tranche of the Revolving Credit Facility shall automatically and permanently be reduced to zero on the Maturity Date with respect to such Tranche of the Revolving Credit Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Application of Commitment Reductions; Payment of Fees</u>. The Administrative Agent will promptly notify the applicable Lenders of the applicable Facility of any termination or reduction of the Commitments under any Term Loan Tranche, the Letter of Credit Sublimit, the Swing Line Sublimit or the Revolving Credit Commitment under this <u>Section</u> <u>2.06</u>. Upon any reduction of Commitments under a Facility or a Tranche thereof, the Commitment of each Lender under such Facility or Tranche thereof shall be reduced by such Lender's ratable share of the amount by which such Facility or Tranche thereof is reduced (other than the termination of the Commitment of any Lender as provided in <u>Section</u> <u>3.08</u>). All facility fees accrued until the effective date of any termination of the Aggregate Commitments and unpaid, shall be paid on the effective date of such termination. For the avoidance of doubt, to the extent that any portion of the Revolving Credit Loans have been refinanced with one or more new revolving credit facilities constituting Specified Refinancing Debt, any prepayments of revolving Loans made pursuant to this <u>Section</u> <u>2.06</u> (other than any prepayments of revolving Loans made pursuant to <u>Section</u> <u>2.06(b)(ii)</u>) shall be allocated ratably among the Revolving Tranches of the Borrowers.

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Section 2.07 <u>Repayment of Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Initial Term Loans</u>. The Borrowers shall repay to the Administrative Agent for the ratable account of the Initial Term Lenders the aggregate principal amount of the Initial Term Loans outstanding in consecutive quarterly installments as follows (which installments shall, to the extent applicable, be reduced as a result of the application of prepayments in accordance with the order of priority set forth in <u>Sections 2.05</u> and <u>2.06</u>, or be increased as a result of any increase in the amount of Initial Term Loans pursuant to <u>Section</u> <u>2.14</u> (such increased amortization payments to be calculated in the same manner (and on the same basis) as the schedule set forth below for the Initial Term Loans made as of the Closing Date)):

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| | |
|:---|:---|
| **Date** | **Amount** |
| The last day of each fiscal quarter ending prior to the Maturity Date for the Initial Term Loans starting with the fiscal quarter ending on September 30, 2025 | 0.25% of the aggregate initial principal amount of the Initial Term Loans on the Closing Date |
| Maturity Date for the Initial Term Loans | All unpaid aggregate principal amounts of any outstanding Initial Term Loans |

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*provided*, *however*, that (i) if the date scheduled for any principal repayment installment is not a Business Day, such principal repayment installment shall be repaid on the next preceding Business Day, and (ii) the final principal repayment installment of the Initial Term Loans shall be repaid on the Maturity Date for the Initial Term Loans and in any event shall be in an amount equal to the aggregate principal amount of all Initial Term Loans outstanding on such date; *provided, further*, that, at the election of the Borrower Representative and such Initial Term Lenders, the table set forth above may be amended to increase the amortization in connection with the Borrowing of any New Term Loans that are secured by Liens on the Collateral that are *pari passu* in priority with the Liens on the Collateral that secure the Initial Term Loans if and to the extent necessary so that such New Term Loans and the Initial Term Loans and to the extent possible, a "fungible" tranche (including for U.S. federal income tax purposes), in each case, without the consent of any other party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Revolving Credit Loans</u>. The Borrowers shall repay to the Administrative Agent for the ratable account of the Appropriate Lenders on the applicable Maturity Date for the Revolving Credit Facilities of a given Tranche the aggregate principal amount of all of its Revolving Credit Loans of such Tranche outstanding on such date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Delayed Draw Term Loans</u>. The Borrowers shall repay to the Administrative Agent for the ratable account of the Delayed Draw Lenders the aggregate principal amount of the Delayed Draw Term Loans outstanding after the applicable Delayed Draw Closing Date in an aggregate principal amount equal to 0.25% of the aggregate principal amount thereof funded on the applicable Delayed Draw Closing Date (which shall commence with the later of (x) the last day of each fiscal quarter in which the first Delayed Draw Closing Date occurs unless such Delayed Draw Closing Date is the last Business Day of a fiscal quarter, in which case such amortization shall commence with the last day of the next fiscal quarter and (y) September 30, 2025); *provided*, *however*, that (i) if the date scheduled for any principal repayment installment is not a Business Day, such principal repayment installment shall be repaid on the next preceding Business Day, and (ii) the final principal repayment installment of the Delayed Draw Term Loans shall be repaid on the Maturity Date for the Delayed Draw Term Loans and in any event shall be in an amount equal to the aggregate principal amount of all Delayed Draw Term Loans outstanding on such date; *provided further*, that, at the election of the Borrower Representative and such Delayed Draw Lenders, the amortization of such Delayed Draw Term Loans may increase in connection with the Borrowing of any New Term Loans that are secured by Liens on the Collateral that are pari passu in priority with the Liens on the Collateral that secure such Delayed Draw Term Loans if and to the extent necessary so that such New Term Loans and such Delayed Draw Term Loans and to the extent possible, a "fungible" tranche (including for U.S. federal income tax purposes), in each case, without the consent of any other party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All Loans shall be repaid, whether pursuant to this <u>Section</u> <u>2.07</u> or otherwise, in the currency in which they were made.

Section 2.08 <u>Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions of the following sentence, (i) each SOFR Loan under a Facility shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the sum of (A) the Term SOFR for such Interest Period *plus* (B) the Applicable Rate for SOFR Loans under such Facility; (ii) each Base Rate Loan under a Facility shall bear interest on the outstanding principal amount thereof from the applicable borrowing date or conversion date, as the case may be, at a rate per annum equal to the sum of (A) the Base Rate *plus* (B) the Applicable Rate for Base Rate Loans under such Facility; (iii) each Alternative Currency Daily Rate Loan under a Facility shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the sum of (A) Alternative Currency Daily Rate applicable for such Alternative Currency *<u>plus</u>* (B) the Applicable Rate for Alternative Currency Daily Rate Loans, and (iv) each Alternative Currency Term Rate Loan under a Facility shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the sum of (A) the Alternative Currency Term Rate for such Interest Period applicable to such Alternative Currency *<u>plus</u>* (B) the Applicable Rate for Alternative Currency Term Rate Loans. During the continuance of an Event of Default under <u>Section</u> <u>8.01(a)</u>, <u>(f)</u> or <u>(g)</u>, the applicable Borrowers shall pay interest on all overdue Obligations hereunder, as applicable, which shall include all Obligations following an acceleration pursuant to <u>Section</u> <u>8.02</u> (including an automatic acceleration), at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws. Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable upon demand.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Accrued interest on each Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto and at such other times as may be specified herein; *provided* that in the event of any repayment or prepayment of any Loan (other than Revolving Credit Loans bearing interest based on the Base Rate that are repaid or prepaid without any corresponding termination or reduction of the Revolving Credit Commitments other than as set forth in <u>Section</u> <u>2.14(e)</u>), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment. Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Interest on each Loan shall be payable in the currency in which each Loan was made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All computations of interest hereunder shall be made in accordance with <u>Section</u> <u>2.10</u> of this Agreement.

Section 2.09 <u>Fees.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Revolving Credit Commitments Commitment Fee</u>. The Borrowers shall pay to the Administrative Agent for the account of each Revolving Credit Lender in accordance with its Pro Rata Share of each Tranche of the Revolving Credit Facility, a commitment fee equal to the Applicable Commitment Fee multiplied by the actual daily amount by which the aggregate Revolving Credit Commitments under such Tranche exceed the sum of (A) the Outstanding Amount of Revolving Credit Loans under such Tranche and (B) the Outstanding Amount of L/C Obligations under such Tranche, subject to adjustment as provided in <u>Section</u> <u>2.17</u>. The foregoing commitment fee shall accrue at all times from the Closing Date until the Maturity Date for each such Revolving Credit Facility, and shall be due and payable quarterly in arrears on the day that is 15 days after the last day of each fiscal quarter (or, if not a Business Day, the immediately preceding Business Day), commencing with the last day of the first full fiscal quarter to end following the Closing Date, and on the Maturity Date for each such Revolving Credit Facility. For the avoidance of doubt, the commitment fee payable hereunder shall accrue and be payable in Dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Other Fees</u>. The Borrowers shall pay (or cause to be paid) to the Lenders, the Arrangers, the Administrative Agent and the Collateral Agent such fees as shall have been separately agreed upon in writing in the amounts and at the times so specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Delayed Draw Commitment Fee.</u> The Borrowers shall pay to the Administrative Agent a fee (the "**Unused DDTL Commitment Fee**") for the account of each Delayed Draw Lender in an amount equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) from the Closing Date through the date that is ninety days thereafter, 0.00%;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) from and after the day that is ninety-one days after the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the average daily balance of the Delayed Draw Commitment of such Delayed Draw Lender (other than any Defaulting Lender) during the preceding calendar quarter, multiplied by

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) one percent (1.00%) per annum;

with such Unused DDTL Commitment Fee be due and payable quarterly in arrears on the day that is 15 days after the last day of each fiscal quarter (or, if not a Business Day, the immediately preceding Business Day), commencing with the last day of the first full fiscal quarter to end following the Closing Date, and on the last day of the Delayed Draw Commitment Period.

Section 2.10 <u>Computation of Interest and Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All computations of interest for Base Rate Loans based on <u>clause (b)</u> in the definition of "Base Rate" shall be made on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed. All other computations of fees and interest shall be made on the basis of a 360-day year and actual days elapsed (which results in more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year) or, in the case of interest in respect of Loans denominated in Alternative Currencies as to which generally accepted market practice differs from the foregoing, in accordance with such generally accepted market practice. Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid; *provided* that any Loan that is repaid on the same day on which it is made shall, subject to <u>Section</u> <u>2.12(a)</u>, bear interest for one day. Each determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error. The Administrative Agent shall, at the request of the Borrower Representative, deliver to the Borrower Representative a statement showing the quotations used by the Administrative Agent in determining any interest rate hereunder.

Section 2.11 <u>Evidence of Indebtedness</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Credit Extensions made by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and evidenced by one or more entries in the Register maintained by the Administrative Agent, acting solely for purposes of United States Treasury Regulations Section 5f.103- 1(c) and Proposed United States Treasury Regulations Section 1.163- 5(b) (or any amended or successor version), as a non-fiduciary agent for the Borrowers, in each case in the ordinary course of business. The accounts or records maintained by each Lender shall be prima facie evidence absent manifest error of the amount of the Credit Extensions made by the Lenders to the applicable Borrowers and the interest and payments thereon. Any failure to so record or any error in doing so shall not, however, limit the obligation of the applicable Borrowers hereunder to pay any amount owing with respect to its applicable portion of the Obligations. In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error. Upon the written request of any Lender made through the Administrative Agent, the applicable Borrowers shall execute and deliver to such Lender (through the Administrative Agent) a Note payable to such Lender, which execution and delivery the Administrative Agent shall record in the Register, which, to the extent consistent with the records in the Register, shall evidence such Lender's Loans in addition to such accounts or records. Each Lender may attach schedules to its Note and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and payments with respect thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition to the accounts and records referred to in <u>Section</u> <u>2.11(a)</u>, each Lender and the Administrative Agent shall maintain in accordance with its usual practice accounts or records and, in the case of the Administrative Agent, entries in the Register, evidencing the purchases and sales by such Lender of participations in Letters of Credit. In the event of any conflict between the accounts and records maintained by the Administrative Agent and the accounts and records of any Lender in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Entries made in good faith by the Administrative Agent in the Register pursuant to Sections <u>2.11(a)</u> and <u>(b)</u>, and by each Lender in its accounts or records pursuant to Sections <u>2.11(a)</u> and <u>(b)</u> (to the extent not inconsistent with the Register), shall be prima facie evidence of the amount of principal and interest due and payable or to become due and payable from the applicable Borrowers to such Lender, under this Agreement and the other Loan Documents, absent manifest error; *<u>provided</u>* that the failure of the Administrative Agent or such Lender to make an entry, or any finding that an entry is incorrect, in the Register or such accounts or records shall not limit the obligations of the applicable Borrowers under this Agreement and the other Loan Documents.

Section 2.12 <u>Payments Generally; Administrative Agent's Clawback</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. All payments to be made by the Borrowers shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein and except with respect to payments in an Alternative Currency, all payments by the Borrowers hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the Administrative Agent's Office in Dollars and in immediately available funds not later than 3:00 p.m. (New York City time) on the date specified herein. Except as otherwise expressly provided herein, all payments by the Borrowers hereunder in an Alternative Currency shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the Administrative Agent's Office in such Alternative Currency and in immediately available funds not later than the applicable time specified by the Administrative Agent on the dates specified herein. If, for any reason, the Borrowers are prohibited by any Law from making any required payment hereunder in an Alternative Currency, the Borrowers shall make such payment in Dollars in the equivalent Dollar Amount. The Administrative Agent will promptly distribute to each Lender its ratable share in respect of the relevant Facility or Tranche thereof (or other applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender's Lending Office. All payments received by the Administrative Agent after 3:00 p.m. (New York City time) shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue. If any payment to be made by the Borrowers shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest or fees,

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as the case may be; *provided*, *however*, that if such extension would cause payment of interest on or principal of SOFR Loans or Alternative Currency Term Rate Loan to be made in the next succeeding calendar month, such payment shall be made on the immediately preceding Business Day. An L/C Issuer can elect to receive payments in respect of Letters of Credit in Dollars rather than in an Alternative Currency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Funding by Lenders; Presumption by Administrative Agent</u>.

Unless the Administrative Agent shall have received notice from a Lender three Business Days prior to the proposed date of any SOFR Borrowing or Alternative Currency Term Rate Loan referencing EURIBOR or Term CORRA (or, in the case of any Borrowing of Base Rate Loans, prior to 12:00 p.m. (New York City time) on the date of such Borrowing and, in the case of Loans referencing an Alternative Currency Daily Rate or Alternative Currency Term Rate other than EURIBOR or Term CORRA, such time as advised by the Administrative Agent from time to time) that such Lender will not make available to the Administrative Agent such Lender's share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with and at the time required by <u>Section</u> <u>2.02(b)</u> and may, in reliance upon such assumption, make available to the applicable Borrowers a corresponding amount. In such event, if any Lender does not in fact make its share of the applicable Borrowing available to the Administrative Agent, then such Lender and the applicable Borrowers agrees to pay to the Administrative Agent forthwith on demand an amount equal to such applicable share in immediately available funds with interest thereon, for each day from and including the date such amount is made available to the applicable Borrowers by the Administrative Agent to but excluding the date of payment to the Administrative Agent, at (A) in the case of a payment to be made by such Lender, the greater of the Federal Funds Rate and a rate reasonably determined by the Administrative Agent in accordance with banking industry rules on interbank compensation, *plus* any reasonable administrative, processing or similar fees customarily charged by the Administrative Agent in connection with the foregoing and (B) in the case of a payment to be made by the applicable Borrowers, the interest rate applicable to Base Rate Loans under the applicable Facility. If both the applicable Borrowers and such Lender pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the applicable Borrower the amount of such interest paid by such Borrowers for such period. If such Lender pays its share of the applicable Borrowing to the Administrative Agent, then the amount so paid (less interest and fees) shall constitute such Lender's Loan included in such Borrowing. Any payment by any Borrowers shall be without prejudice to any claim such Borrowers may have against a Lender that shall have failed to make its share of any Borrowing available to the Administrative Agent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Payments by a Borrower; Presumptions by Administrative Agent</u>. Unless the Administrative Agent shall have received notice from the Borrower Representative prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or an L/C Issuer hereunder that a Borrower will not make any such payment, the Administrative Agent may assume that such Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Appropriate Lenders or the applicable L/C Issuer, as the case may be, the amount due. In such event, if the applicable Borrowers do not in fact make such payment, then each of the Appropriate Lenders or the applicable L/C Issuer, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or such L/C Issuer, in immediately available funds with interest thereon, for each day from and including the date such amount is distributed by the Administrative Agent to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate reasonably determined by the Administrative Agent in accordance with banking industry rules on interbank compensation, *plus* any reasonable administrative, processing or similar fees customarily charged by the Administrative Agent in connection with the foregoing.

A notice of the Administrative Agent to any Lender or the Borrower Representative with respect to any amount owing under this <u>Section</u> <u>2.12(b)</u> shall be conclusive, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Failure to Satisfy Conditions Precedent</u>. If any Lender makes available to the Administrative Agent funds for any Loan to be made by such Lender as provided in the foregoing provisions of this <u>Article II</u>, and such funds are not made available to the applicable Borrowers by the Administrative Agent because the conditions to the applicable Credit Extension set forth in <u>Article IV</u> are not satisfied or waived in accordance with the terms hereof, the Administrative Agent shall return such funds (in like funds as received from such Lender) to such Lender on demand, without interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Obligations of the Lenders Several</u>. The obligations of the Lenders hereunder to make Loans, to fund participations in Letters of Credit and to make payments pursuant to <u>Section</u> <u>9.07</u> are several and not joint. The failure of any Lender to make any Loan or to fund any such participation or to make any payment under <u>Section</u> <u>9.07</u> on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Loan or, to fund its participation or to make its payment under <u>Section</u> <u>9.07.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Funding Source</u>. Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan in any particular place or manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Insufficient Funds</u>. If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, L/C Borrowings, interest and fees then due hereunder, such funds shall be applied (i) <u>first</u>, toward payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) <u>second</u>, toward payment of principal and L/C Borrowings then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal and L/C Borrowings then due to such parties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Unallocated Funds</u>. If the Administrative Agent receives funds for application to the Obligations of the Loan Parties under or in respect of the Loan Documents under circumstances for which the Loan Documents do not specify the manner in which such funds are to be applied, the Administrative Agent may, but shall not be obligated to, elect to distribute such funds to each of the Lenders in accordance with such Lender's ratable share of the sum of (a) the Outstanding Amount of all Loans outstanding at such time and (b) the Outstanding Amount of all L/C Obligations outstanding at such time, in repayment or prepayment of such of the outstanding Loans or other Obligations then owing to such Lender.

Section 2.13 <u>Sharing of Payments</u>. If, other than as expressly provided elsewhere herein (including the application of funds arising from the existence of a Defaulting Lender), any Lender shall obtain on account of the Loans made by it, or the participations in L/C Obligations held by it, any payment (whether voluntary, involuntary, through the exercise of any right of setoff, or otherwise) in excess of its ratable share (or other share contemplated hereunder) thereof, such Lender shall immediately (a) notify the Administrative Agent of such fact and (b) purchase from the other Lenders such participations in the Loans made by them and/or such subparticipations in the participations in L/C Obligations held by them, as the case may be, as shall be necessary to cause such purchasing Lender to share the excess payment in respect of such Loans or such participations, as the case may be, pro rata with each of them; *provided*, *however*, that if all or any portion of such excess payment is thereafter recovered from the purchasing Lender under any of the circumstances described in <u>Section</u> <u>10.06</u> (including pursuant to any settlement entered into by the purchasing Lender in its discretion), such purchase shall to that extent be rescinded and each other Lender shall repay to the purchasing Lender the purchase price paid therefor, together with an amount equal to such paying Lender's ratable share (according to the proportion of (i) the amount of such paying Lender's required repayment to (ii) the total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered, without further interest thereon. The Borrowers agree that any Lender so purchasing a participation from another Lender may, to the fullest extent permitted by Law, exercise all its rights of payment (including the right of setoff, but subject to <u>Section</u> <u>10.09</u>) with respect to such participation as fully as if such Lender were the direct creditor of the Borrowers in the amount of such participation. The Administrative Agent will keep records (which shall be conclusive and binding in the absence of manifest error) of participations purchased under this <u>Section</u> <u>2.13</u> and will in each case notify the Lenders following any such purchases or repayments. Each Lender that purchases a participation pursuant to this <u>Section</u> <u>2.13</u> shall from and after such purchase have the right to give all notices, requests, demands, directions and other communications under this Agreement with respect to the portion of the Obligations purchased to the same extent as though the purchasing Lender were the original owner of the Obligations purchased. For the avoidance of doubt, the provisions of this Section shall not be construed to apply to (A) the application of Cash Collateral provided for in <u>Section</u> <u>2.16</u>, (B) the assignments and participations (including by means of a Dutch Auction and open market debt repurchases) described in <u>Section</u> <u>10.07</u>, (C) (i) the incurrence of any New Term Loans in accordance with <u>Section</u> <u>2.14</u>, (ii) the prepayment of Revolving Credit Loans in accordance with <u>Section</u> <u>2.14(e)</u> in connection with a Revolving Credit Commitment Increase or (iii) any Specified Refinancing Debt in accordance with <u>Section</u> <u>2.18</u>, (D) any Extension described in <u>Section</u> <u>2.19</u>, or (E) any applicable circumstances contemplated by <u>Section</u> <u>2.05(b)</u>, <u>2.14</u>, <u>2.17</u> or <u>3.08</u>.

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Section 2.14 <u>Incremental Facilities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower Representative may, from time to time after the Closing Date, upon notice by the Borrower Representative to the Administrative Agent and the Person appointed by the Borrower Representative to arrange an incremental Facility (such Person (who may be (i) the Administrative Agent, if it so agrees, or (ii) any other Person appointed by the Borrower Representative), the "**Incremental Arranger**") specifying the proposed Borrower (which may be one or more Initial Borrowers or Co-Borrowers), the proposed amount thereof and the proposed currency denomination thereof, request (i) an increase in the Commitments under any Revolving Tranche (which shall be on the same terms as, and become part of, the Revolving Tranche proposed to be increased) (each, a "**Revolving Credit Commitment Increase**"), (ii) an increase in any Term Loan Tranche then outstanding (which shall be on the same terms as, and become part of, the Term Loan Tranche proposed to be increased hereunder (except for any fees and original issue discount and as otherwise provided in <u>clause (d)</u> below with respect to amortization and terms that will be incorporated in this Agreement for the benefit of the applicable Term Loan Tranche)) (each, a "**Term Commitment Increase**"), (iii) the addition of one or more new revolving credit facilities to the Facilities, in each case, in such currency or currencies as the Borrower Representative identifies in such notice (each, a "**New Revolving Facility**" and, any advance made by a Lender thereunder, a "**New Revolving Loan**"; and the commitments thereof, the "**New Revolving Commitment**") and (iv) the addition of one or more new term loan facilities (which may be in the form of delayed draw term commitments) (each, a "**New Term Facility**"; and any advance made by a Lender thereunder, a "**New Term Loan**"; and the commitments thereof, the "**New Term Commitment**" and together with the Revolving Credit Commitment Increase, the New Revolving Commitments and the Term Commitment Increase, the "**New Loan Commitments**") in an amount not to exceed the sum of (v) (i) the greater of (A) $460,000,000 and (B) 100.0% of Four Quarter Consolidated EBITDA, *minus* (ii) the amount of any Indebtedness previously incurred in reliance on this <u>clause (v)</u> (and not redesignated as incurred under any other provision of the Incremental Amount in accordance with this Agreement) (the "**Cash-Capped Incremental Facility**"), (w) an unlimited amount (the "**Ratio-Based Incremental Facility**") so long as the Maximum Leverage Requirement is satisfied, (x) an amount equal to (i) (A) all voluntary prepayments of any long-term Indebtedness that is (1) secured by a Lien on the Collateral on a *pari passu* basis with the Initial Term Loans and the Initial Revolving Tranche (including, for the avoidance of doubt, any New Term Loans that are secured by a Lien on the Collateral on a *pari passu* basis with the Initial Term Loans and the Initial Revolving Tranche) (including any payments made pursuant to <u>Section</u> <u>2.05(a)</u> or <u>Section</u> <u>3.08(a)</u>), (2) secured by a Lien on the Collateral on a junior basis with the Initial Term Loans and the Initial Revolving Tranche or (3) any other Indebtedness; *provided* that, with respect to long-term Indebtedness described in <u>clause (2)</u>, such New Loan Commitment shall only be in the form of Indebtedness secured by a Lien on the Collateral on a junior basis with the Initial Term Loans and the Initial Revolving Tranche or unsecured Indebtedness, or with respect to long-term Indebtedness described in <u>clause (3)</u>, any such New Loan Commitment shall only be in the form of Indebtedness secured solely

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by assets not constituting Collateral or unsecured Indebtedness, in each case, except to the extent initially incurred in reliance on (or re-classified to) the Cash-Capped Incremental Facility, in which case such New Loan Commitment may be in the form of Indebtedness that is secured by a Lien on the Collateral on a *pari passu* basis or junior basis with the Initial Term Loans and the Initial Revolving Tranche or unsecured Indebtedness, and (B) all repurchases and/or cancellations (including purchases at or below par and payments through Dutch auction procedures, which shall be credited at the amount of debt so retired, if acquired below par) of any long-term Indebtedness that is (1) secured by a Lien on the Collateral on a *pari passu* basis with the Initial Term Loans and the Initial Revolving Tranche (including, for the avoidance of doubt, any New Term Loans that are secured by a Lien on the Collateral on a *pari passu* basis with the Initial Term Loans and the Initial Revolving Tranche), (2) secured by a Lien on the Collateral on a junior basis with the Initial Term Loans and the Initial Revolving Tranche or (3) secured solely by assets not constituting Collateral or unsecured, in an amount equal to the actual amount of cash utilized for such repurchase; *provided* that, with respect to long-term Indebtedness described in <u>clause (2)</u>, any such New Loan Commitment shall only be in the form of Indebtedness secured by a Lien on the Collateral on a junior basis with the Initial Term Loans and the Initial Revolving Tranche or unsecured Indebtedness, or with respect to long-term Indebtedness described in <u>clause (3)</u>, any such New Loan Commitment shall only be in the form of Indebtedness secured solely by assets not constituting Collateral or unsecured Indebtedness, in each case, except to the extent initially incurred in reliance on (or re-classified to) the Cash-Capped Incremental Facility, in which case such New Loan Commitment may be in the form of Indebtedness that is secured by a Lien on the Collateral on a *pari passu* basis or junior basis with the Initial Term Loans and the Initial Revolving Tranche or unsecured Indebtedness, and (ii) (A) all voluntary prepayments of any revolving credit loans that are (1) secured by a Lien on the Collateral on a *pari passu* basis with the Initial Term Loans and the Initial Revolving Tranche (including any payments made pursuant to <u>Section</u> <u>2.05(a)</u> or <u>Section</u> <u>3.08(a)</u>), (2) secured by a Lien on the Collateral on a junior basis with the Initial Term Loans and the Initial Revolving Tranche or (3) secured solely by assets not constituting Collateral or unsecured, and to the extent accompanied by a corresponding, permanent reduction in the applicable revolving credit commitment; *provided* that, with respect to any revolving credit loans described in <u>clause (2)</u>, any such New Loan Commitment shall only be in the form of Indebtedness secured by a Lien on the Collateral on a junior basis with the Initial Term Loans and the Initial Revolving Tranche, or with respect to any revolving credit loans described in <u>clause (3)</u>, any such New Loan Commitment shall only be in the form of Indebtedness secured solely by assets not constituting Collateral or unsecured Indebtedness, in each case, except to the extent initially incurred in reliance on (or re-classified to) the Cash-Capped Incremental Facility, in which case such New Loan Commitment may be in the form of Indebtedness that is secured by a Lien on the Collateral on a *pari passu* basis or junior basis with the Initial Term Loans and the Initial Revolving Tranche or unsecured Indebtedness and (B) all repurchases and/or cancellations of any revolving credit loans that are (1) secured by a Lien on the Collateral on a *pari passu* basis with the Initial Term Loans and the Initial Revolving Tranche, (2) secured by a Lien on the Collateral on a junior basis with the Initial Term Loans and the Initial Revolving Tranche or (3) secured solely by assets not constituting Collateral or unsecured, to the extent accompanied by a corresponding, permanent

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reduction in the applicable revolving credit commitment; *provided* that, with respect to revolving credit loans described in <u>clause (2)</u>, any such New Loan Commitment shall only be in the form of Indebtedness secured by a Lien on the Collateral on a junior basis with the Initial Term Loans and the Initial Revolving Tranche, or with respect to revolving credit loans described in <u>clause (3)</u>, any such New Loan Commitment shall only be in the form of Indebtedness secured solely by assets not constituting Collateral or unsecured Indebtedness, in each case, in an amount equal to the actual amount of cash utilized for such repurchase, in each case under this <u>clause (x)</u>, to the extent not funded with the proceeds of long-term Indebtedness (it being agreed and understood, for the avoidance of doubt, that (I) Indebtedness incurred pursuant to any revolving credit facility (including the Revolving Credit Facility) and (II) intercompany Indebtedness shall not constitute long-term Indebtedness for such purpose) (the "**Prepayment-Based Incremental Facility**"), (y) in the case of any New Revolving Facility or New Term Facility that effectively extends the maturity date (without increasing or elevating the priority of the liens securing such Indebtedness) of any First Lien Specified Debt, Junior Lien Specified Debt or Other Specified Debt, an amount equal to the portion of such First Lien Specified Debt, Junior Lien Specified Debt or Other Specified Debt that will be replaced by such New Revolving Facility or New Term Facility; *provided* that any such New Revolving Facility or New Term Facility so effectively extending the maturity date of any Indebtedness secured by a Lien on the Collateral on a junior basis with the Initial Term Loans and the Initial Revolving Tranche shall only be in the form of Indebtedness secured by a Lien on the Collateral on a junior basis with the Initial Term Loans and the Initial Revolving Tranche or unsecured Indebtedness, and any New Revolving Facility or New Term Facility so effectively extending the maturity date of, or refinancing, any Indebtedness secured solely by assets not constituting Collateral or unsecured Indebtedness shall only be in the form of Indebtedness secured solely by assets not constituting Collateral or unsecured Indebtedness, in each case except to the extent initially incurred in reliance on (or re-classified to) the Cash-Capped Incremental Facility, in which case such New Revolving Facility or New Term Facility may be in the form of Indebtedness that is secured by a Lien on the Collateral on a *pari passu* basis or junior basis with the Initial Term Loans and the Initial Revolving Tranche or unsecured Indebtedness (the "**Effective Extension Incremental Facility**"), and (z) amounts reallocated, at the Borrowers' option, from the Indebtedness permitted to be incurred in reliance on the General Debt Basket (the "**Reallocated General Debt Facility**"; which, for the avoidance of doubt, may be in the form of Indebtedness secured by a Lien on the Collateral on a *pari passu* basis or junior basis with the Initial Term Loans and the Initial Revolving Tranche or unsecured Indebtedness) (such sum, at any such time and subject to <u>Section</u> <u>1.02(i)</u>, the "**Incremental Amount**"); *provided* that any such request for an increase shall be in a minimum amount of the lesser of (x) $5,000,000 or, in the case of any New Loan Commitments denominated in an Alternative Currency, the equivalent Dollar Amount, and (y) the entire amount of any increase that may be requested under this <u>Section</u> <u>2.14</u>; *provided*, *further*, that for purposes of any New Loan Commitments established pursuant to this <u>Section</u> <u>2.14</u>, Incremental Equivalent Debt Incurred pursuant to <u>Section</u> <u>2.15</u>, any Ratio Debt and any Ratio Acquisitions Debt:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) unless the Borrowers elect otherwise, (x) the Borrowers shall be deemed to have used amounts under the Ratio-Based Incremental Facility (to the extent compliant therewith) prior to using amounts under the Effective Extension Incremental Facility, the Prepayment-Based Incremental Facility, the Cash-Capped Incremental Facility, or the Reallocated General Debt Facility, (y) the Borrowers shall be deemed to have used the Prepayment-Based Incremental Facility prior to utilization of the CashCapped Incremental Facility and the Reallocated General Debt Facility, and (z) the Borrowers shall be deemed to have used the Cash-Capped Incremental Facility prior to utilization of the Reallocated General Debt Facility,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) New Loan Commitments pursuant to this <u>Section</u> <u>2.14</u>, Incremental Equivalent Debt pursuant to <u>Section</u> <u>2.15</u>, Ratio Debt and Ratio Acquisitions Debt may be incurred substantially concurrently under the Ratio-Based Incremental Facility (to the extent compliant therewith), the Effective Extension Incremental Facility, the Prepayment-Based Incremental Facility, the Cash-Capped Incremental Facility and the Reallocated General Debt Facility or any combination of any of the foregoing, and proceeds from any such incurrence may be utilized in a single transaction or series of related transactions by, unless the Borrower Representative elects otherwise, first, calculating the incurrence under the Ratio-Based Incremental Facility (without inclusion of (x) any amounts incurred substantially concurrently pursuant to the Prepayment-Based Incremental Facility, the Cash-Capped Incremental Facility or the Reallocated General Debt Facility, (y) any amounts incurred substantially concurrently under any fixed basket under <u>Section</u> <u>7.01</u> or (z) any revolving credit loans incurred substantially concurrently with such single transaction or series of related transactions) and then calculating the incurrence under the Prepayment-Based Incremental Facility (without inclusion of any amounts utilized pursuant to the Cash-Capped Incremental Facility and the Reallocated General Debt Facility) and then calculating the incurrence under the Cash-Capped Incremental Facility and the Reallocated General Debt Facility,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) all or any portion of Indebtedness originally designated as incurred under the Prepayment-Based Incremental Facility, the Cash-Capped Incremental Facility, or the Reallocated General Debt Facility shall automatically cease to be deemed incurred under the Prepayment-Based Incremental Facility, the Cash-Capped Incremental Facility or the Reallocated General Debt Facility and shall instead be deemed incurred under the Ratio-Based Incremental Facility from and after the first date on which the Borrowers would be permitted to incur all or such portion, as applicable, of the aggregate principal amount of such Indebtedness under the Ratio-Based Incremental Facility (for the avoidance of doubt, which determination shall be made without duplication of such Indebtedness originally designated as incurred under the Prepayment-Based Incremental Facility, the Cash-Capped Incremental Facility or the Reallocated General Debt Facility) (which, for the avoidance of doubt, shall have the effect of increasing the PrepaymentBased Incremental Facility, the Reallocated General Debt Facility and/or the Cash-Capped Incremental Facility, as applicable, by all or such portion, as applicable, of the aggregate principal amount of such Indebtedness); *provided* that, for the avoidance of doubt, any Indebtedness originally designated as incurred under the Prepayment-Based Incremental Facility, the Cash-Capped Incremental Facility, or the Reallocated General Debt Facility and subsequently deemed to be incurred under the Ratio-Based Incremental Facility pursuant to this <u>clause (C)</u> shall not be subject to the MFN Provision as a result of being deemed incurred under the Ratio-Based Incremental Facility; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) solely for the purpose of cash netting in calculating the Consolidated First Lien Net Leverage Ratio, the Consolidated Senior Secured Net Leverage Ratio or the Consolidated Total Net Leverage Ratio to determine the availability under the Ratio-Based Incremental Facility at the time of incurrence, any cash proceeds of any New Loan Commitments established pursuant to this <u>Section</u> <u>2.14</u>, any Incremental Equivalent Debt Incurred pursuant to <u>Section</u> <u>2.15</u>, any Ratio Debt and any Ratio Acquisitions Debt, in each case, incurred at such test date shall be excluded for purposes of calculating Adjusted Cash or Cash Equivalents.

The Borrowers may designate any Incremental Arranger of any New Loan Commitments with such titles under the New Loan Commitments as the Borrowers may deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For the avoidance of doubt, the Borrowers will not be obligated to approach any Lender to participate in any New Loan Commitments. Any Lender approached to participate in any New Loan Commitments may elect or decline, in its sole discretion, to participate in such increase or new facility. The Borrowers may also invite additional Eligible Assignees reasonably satisfactory to the Incremental Arranger and, solely in connection with a Revolving Credit Commitment Increase or New Revolving Facility, with the consent of each L/C Issuer and each Swing Line Lender (to the extent the consent of any of the foregoing would be required to assign Revolving Credit Loans to such Eligible Assignee, which consent shall not be unreasonably withheld, delayed or conditioned) to become Lenders pursuant to a joinder agreement to this Agreement. The Administrative Agent shall be permitted to execute, accept and acknowledge any joinder agreement pursuant to this <u>Section</u> <u>2.14</u> solely for purposes of determining that the operational and agency provisions (if any) contained in such documentation are reasonably satisfactory to the Administrative Agent (which shall also be reasonably satisfactory to the Borrower Representative) and that such execution, acceptance or acknowledgement shall not be unreasonably withheld, conditioned or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If (i) a Revolving Tranche or a Term Loan Tranche is increased in accordance with this <u>Section</u> <u>2.14</u> or (ii) a New Term Facility or New Revolving Facility is added in accordance with this <u>Section</u> <u>2.14</u>, the Incremental Arranger and the Borrower Representative shall determine the effective date (the "**Increase Effective Date**") and the final allocation of such increase, New Term Facility or New Revolving Facility among the applicable Lenders. The Incremental Arranger shall promptly notify the applicable Lenders of the final allocation of such increase, New Term Facility or New Revolving Facility and the Increase Effective Date. In connection with (i) any increase in a Term Loan Tranche or Revolving Tranche or (ii) any addition of a New Term Facility or New Revolving Facility, in each case, pursuant to this <u>Section</u> <u>2.14</u>, this Agreement and the other Loan Documents may be amended in writing (which may be executed and delivered by the Borrowers and the Incremental Arranger (and the Lenders hereby authorize any such Incremental Arranger to execute and deliver any such documentation)) in order to establish the New Term Facility or New Revolving Facility or to effectuate the increases to the Term Loan Tranche or Revolving Tranche and to reflect any technical changes necessary or appropriate to give effect to such increase or new facility in accordance with its terms as set forth herein pursuant to the documentation relating to such New Term Facility or New Revolving Facility. As of the Increase Effective Date, in the case of an increase to an existing Term

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Loan Tranche, the amortization schedule for the Term Loan Tranche then increased set forth in <u>Section</u> <u>2.07(a)</u> (or any other applicable amortization schedule for New Term Loans or Specified Refinancing Term Loans) shall be amended in writing (which may be executed and delivered by the Borrowers and the Incremental Arranger (and the Lenders hereby authorize any such Incremental Arranger to execute and deliver any such documentation)) to increase the then-remaining unpaid installments of principal by an aggregate amount equal to the additional Loans under such Term Loan Tranche being made on such date, such aggregate amount to be applied to increase such installments ratably in accordance with the amounts in effect immediately prior to the Increase Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) With respect to any Revolving Credit Commitment Increase, Term Commitment Increase or addition of New Term Facility or New Revolving Facility pursuant to this <u>Section</u> <u>2.14</u>, (i) subject to <u>Section</u> <u>1.02(i)</u>, (A) no Event of Default would exist immediately after giving effect thereto; *provided*, that the condition set forth in this <u>clause (i)(A)</u> may be limited to no Event of Default pursuant to <u>Sections 8.01(a)</u>, <u>(f)</u> and <u>(g)</u> at the election of the Persons providing such New Loan Commitments and (B) the representations and warranties of the Borrowers and each other Loan Party contained in <u>Article V</u> or any other Loan Document shall be true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) on and as of such date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) as of such earlier date, and except that for purposes of this <u>clause (i)(B)</u>, the representations and warranties contained in <u>Sections 5.05(a)</u> and <u>(b)</u> shall be deemed to refer to the most recent financial statements furnished pursuant to <u>Sections 6.01(a)</u> and <u>(b)</u>, respectively, prior to such date; *provided*, that the condition set forth in this <u>clause (i)(B)</u> may be waived or not required by the Persons providing such New Loan Commitments; (ii) (A) in the case of any increase of the Revolving Tranche, (1) the final maturity shall be the same as the Maturity Date applicable to the Initial Revolving Tranche, (2) no amortization or mandatory commitment reduction prior to the Maturity Date applicable to the Initial Revolving Tranche shall be required and (3) the terms and documentation applicable to the Initial Revolving Tranche shall apply, (B) in the case of any New Revolving Facility, (1) the final maturity shall be no earlier than the Maturity Date applicable to the Initial Revolving Tranche and (2) no amortization or mandatory commitment reduction prior to the Maturity Date applicable to the Initial Revolving Tranche shall be required, (C) in the case of an increase to an existing Term Loan Tranche, (1) the final maturity shall be the same as the Maturity Date applicable to the applicable Term Loan Tranche, (2) the amortization shall be as described under <u>clause (c)</u> above and (3) except as otherwise set forth in this <u>Section</u> <u>2.14</u>, the terms and documentation applicable to the applicable existing Term Loan Tranche shall apply and (D) in the case of any New Term Facility, the final maturity of the New Term Loans thereunder shall be no earlier than the Latest Maturity Date for, and such New Term Loans shall not have a Weighted Average Life to Maturity shorter than the remaining Weighted Average Life to Maturity of, the then outstanding Initial Term Loans; *provided* that Designated Earlier Maturing Debt may have a maturity date earlier than the Latest Maturity Date for the then outstanding Initial Term Loans and, with respect to Designated Earlier Maturing Debt, the Weighted Average Life to Maturity thereof may be shorter than the remaining Weighted

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Average Life to Maturity of the then outstanding Term Facilities (without giving effect to any amortization or prepayment of such Term Loans); (iii) except as set forth in <u>subclause (f)(iv)</u> below with respect to the interest rate margin applicable to any New Term Facility described therein and as set forth in <u>subclause (d)(ii)(D)</u> above with respect to final maturity and Weighted Average Life to Maturity of any New Term Facility, any such New Term Facility or New Revolving Facility shall have such terms as are agreed to by the Borrowers and the Incremental Arranger; *provided* that the covenants, events of default, guarantees and other terms of such New Term Facility (other than maturity, fees, discounts, interest rate, optional redemption terms and redemption premiums), if not consistent with the terms of the Initial Term Loans, shall not be materially more restrictive to the Borrower Parties, when taken as a whole, than the terms of the Initial Term Loans (as reasonably determined by the Borrower Representative) unless (x) the Lenders of the Initial Term Loans receive the benefit of such more restrictive terms or (y) any such provisions (1) apply after the Latest Maturity Date of the Initial Term Loans or (2) are consistent with market terms as determined in good faith by the Borrower Representative and (iv) to the extent reasonably requested by the Incremental Arranger and expressly set forth in the documentation relating to such New Loan Commitments, the Incremental Arranger shall have received legal opinions, resolutions, officers' certificates, reaffirmation agreements and/or subsequent ranking agreements or amendment agreements to, confirmations of and/or lower ranking Collateral Documents, as applicable, consistent with those delivered on the Closing Date under <u>Section</u> <u>4.01</u> or delivered from time to time pursuant to <u>Section</u> <u>6.12</u>, <u>6.14</u> and/or <u>Section</u> <u>6.16</u> (other than changes to such legal opinions resulting from a change in Law, change in fact or change to counsel's form of opinion). Subject to the foregoing, the conditions precedent to each such increase or New Loan Commitment shall be solely those agreed to by the Lenders providing such increase or New Loan Commitment, as applicable, and the applicable Borrowers. Notwithstanding the foregoing, (x) to the extent any terms of any Term Commitment Increase, Revolving Credit Commitment Increase, New Term Facility or New Revolving Facility are more materially favorable (with respect to the lenders thereunder) than the comparable terms hereunder (with respect to the Lenders under the Initial Term Loans or the Initial Revolving Tranche, as applicable) and are applicable prior to the Latest Maturity Date, such terms (if favorable to the applicable Lenders) may be, at the option of the Borrowers in their sole discretion and in consultation with the Incremental Arranger, incorporated into this Agreement (or any other applicable Loan Document) for the benefit of the applicable Lenders (to the extent applicable to such Lender) without further amendment requirements (it being agreed and understood, for the avoidance of doubt, that, at the option of the Borrower Representative, the Borrowers may, but shall not be required to, increase the Applicable Rate or amortization payments relating to any existing Term Facility to bring such Applicable Rate in line with the relevant Term Commitment Increase or New Term Facility to achieve fungibility (including for U.S. federal income tax purposes) with such existing Term Facility), (y) the terms of any New Revolving Facility (other than (A) terms that are incorporated into this Agreement pursuant to <u>clause (x)</u> above or (B) terms that are applicable only after the then Latest Maturity Date of the Initial Revolving Tranche) shall either (1) be substantially the same as those applicable to the Initial Revolving Tranche or (2) be consistent with market terms as determined in good faith by the Borrower Representative and (z) such terms other than the terms described in <u>clause (x)</u> above may

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be, at the option of the Borrowers in their sole discretion in consultation with the Administrative Agent, incorporated into this Agreement (or any other applicable Loan Document) for the benefit of the applicable Lenders (to the extent applicable to such Lender) without further amendment requirements if reasonably satisfactory to the Borrower Representative, the Incremental Arranger and the Administrative Agent. To the extent a Borrower establishes a New Revolving Facility, then the Administrative Agent and a Borrower shall be permitted to amend this Agreement to require borrowings and repayments on a pro rata basis among Revolving Tranches (except for (A) payments of interest and fees at different rates on the Revolving Credit Commitments (and related outstandings), (B) repayments required upon the Maturity Date of any Revolving Credit Loan, and (C) repayments made in connection with a permanent repayment and termination of the Revolving Credit Loans or Revolving Credit Commitments of Revolving Credit Loans after the effective date of such New Revolving Facility).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) On the Increase Effective Date with respect to an increase to an Existing Revolving Tranche, (x) each Revolving Credit Lender immediately prior to such increase will automatically and without further act be deemed to have assigned to each Lender providing a portion of the increase to the Revolving Credit Commitments (each, a "**Revolving Commitment Increase Lender**"), and each such Revolving Commitment Increase Lender will automatically and without further act be deemed to have assumed, a portion of such Revolving Credit Lender's participations hereunder in outstanding L/C Obligations such that, after giving effect to each such deemed assignment and assumption of participations, the percentage of the aggregate outstanding participations hereunder in L/C Obligations will equal the Pro Rata Share of the aggregate Revolving Credit Commitments of all Revolving Credit Lenders represented by such Revolving Credit Lender's Revolving Credit Commitment and (y) if, on the date of such increase, there are any Revolving Credit Loans outstanding, such Revolving Credit Loans shall on or prior to the Increase Effective Date be prepaid from the proceeds of Revolving Credit Loans made hereunder (reflecting such increase in Revolving Credit Commitments), which prepayment shall be accompanied by accrued interest on the Revolving Credit Loans being prepaid. The Administrative Agent and the Lenders hereby agree that the minimum borrowing, pro rata borrowing and pro rata payment requirements contained elsewhere in this Agreement shall not apply to the transactions effected pursuant to the immediately preceding sentence. The additional Term Loans made under the Term Loan Tranche subject to the increases shall be made by the applicable Lenders participating therein pursuant to the procedures set forth in <u>Sections 2.01</u> and <u>2.02</u> and on the date of the making of such new Term Loans, and notwithstanding anything to the contrary set forth in <u>Sections 2.01</u> and <u>2.02</u>, such new Loans shall be added to (and form part of) each Borrowing of outstanding Term Loans under such Term Loan Tranche on a pro rata basis (based on the relative sizes of the various outstanding Borrowings), so that each Lender under such Term Loan Tranche will participate proportionately in each then outstanding Borrowing of Term Loans under the Term Loan Tranche.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) (i) Any New Revolving Facility and New Term Facility, (A) if incurred or Guaranteed by a Borrower or any Guarantor, shall not be Guaranteed by any Person that is not a Loan Party or does not become a Loan Party substantially concurrently with the incurrence of such New Revolving Facility or New Term Facility, (B) if secured by a lien on all or any portion of the Collateral, shall not be secured by any assets other than assets that constitute Collateral (except (1) customary cash collateral in favor of an agent, letter of credit issuer or similar "fronting" lender, (2) any liens on property or assets to the extent that a Lien on such property or asset is also added for the benefit of the Lenders under the Initial Term Loans and the Initial Revolving Credit Loans, as applicable, and (3) to the extent incurred in reliance on (or re-classified to) the Cash-Capped Incremental Facility or the Non-Collateral Ratio Facility), and (C) at the option of a Borrower, shall be secured by a lien on the Collateral on a *pari passu* basis with the Initial Term Loans and the Initial Revolving Tranche, secured by a lien on the Collateral on a junior basis to the Initial Term Loans, secured by a Lien on assets not constituting Collateral or unsecured; *provided* that, if such New Revolving Facility or New Term Facility is incurred under the Effective Extension Incremental Facility, (x) such New Revolving Facility or New Term Facility may be secured by a lien on the Collateral on a *pari passu* basis with the Initial Term Loans and the Initial Revolving Tranche only to the extent such New Revolving Facility or New Term Facility effectively extends the maturity date of First Lien Specified Debt, and (y) such New Revolving Facility or New Term Facility may be secured by a lien on the Collateral only to the extent such New Revolving Facility or New Term Facility effectively extends the maturity date of First Lien Specified Debt or Junior Lien Specified Debt; *provided*, *further*, that if such New Revolving Facility or New Term Facility is secured by a lien on all or any portion of the Collateral, such New Revolving Facility or New Term Facility shall be subject to Applicable Intercreditor Arrangements, (ii) the New Term Facility or New Revolving Facility, as applicable, shall, for purposes of prepayments, be treated substantially the same as (and in any event no more favorably than) the Initial Term Loans or Initial Revolving Tranche, as the case may be, unless the Borrowers otherwise elect (but in any event no more favorably than the Initial Term Loans or the Initial Revolving Tranche, as applicable), (iii) any New Term Facility that is secured by a lien on the Collateral on (x) a *pari passu* basis with the Initial Term Loans shall share ratably (or on a lesser basis) with respect to any mandatory prepayments of the Initial Term Loans (other than mandatory prepayments resulting from a refinancing of any Facility, which may be applied exclusively to the Facility being refinanced) and (y) a junior basis or unsecured basis shall not be subject to any mandatory prepayments unless such mandatory prepayments are first made or offered to the Initial Term Loans and (iv) solely with respect to any broadly syndicated floating rate term loans denominated in Dollars incurred on or prior to the date that is six months after the Closing Date under a New Term Facility that is (x) incurred under the Cash-Capped Incremental Facility, the Prepayment-Based Incremental Facility, the Effective Extension Incremental Facility or the Reallocated General Debt Facility, (y) *pari passu* in right of payment with the Initial Term Loans and (z) secured by liens on the Collateral on a *pari passu* basis with the Initial Term Loans, the interest rate margin (to the extent payable in cash) in excess of the applicable index rate (and excluding, for the avoidance of doubt, (x) any original issue discount, upfront fees, index rate floor or any other fees (including, without limitation, arrangement fees, structuring fees, commitment fees, underwriting fees, success fees, advisory fees, ticking fees, consent fees or amendment fees or (y) the effect of any margin step downs applicable to the Initial Term Loans)) applicable to such New Term Facility shall not be more than 100 basis points higher than the interest rate margin payable by the Borrowers in respect of the Initial Term Loans unless the interest rate margin applicable to the Initial Term Loans

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is increased by an amount necessary so that the difference between the interest rate margin payable by the Borrowers in respect of such New Term Facility and the interest rate margin payable by the Borrowers in respect of the Initial Term Loans is no greater than 100 basis points (this <u>clause (iv)</u>, the "**MFN Provision**"); *provided* that for the avoidance of doubt, if Term Loans are outstanding in the form of a U.S. dollar-denominated Tranche and one or more non-U.S. dollar-denominated Tranches at such time, this <u>clause (iv)</u> shall only apply to such Term Loans outstanding in the form of a U.S. dollar denominated Tranche; *provided further* that this <u>clause (f)</u> shall not apply to any New Term Facility (1) that is incurred more than six months after the Closing Date, (2) is in an aggregate amount equal to or less than the greater of $920,000,000 and 200% of Four Quarter Consolidated EBITDA, (3) that has a final maturity at least one year after the Latest Maturity Date of the then outstanding Initial Term Loans, (4) is incurred in connection with a Permitted Acquisition or similar investment, or (5) for the avoidance of doubt, is incurred in reliance under the Ratio-Based Incremental Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If the Incremental Arranger is not the Administrative Agent, the actions authorized to be taken by the Incremental Arranger herein shall be done in consultation with the Administrative Agent and, with respect to the preparation of any documentation necessary or appropriate to carry out the provisions of this <u>Section</u> <u>2.14</u> (including amendments to this Agreement and the other Loan Documents), any comments to such documentation with respect to operational and agency provisions reasonably requested by the Administrative Agent shall be reflected therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To the extent any New Revolving Facility or New Term Facility shall be denominated in an Alternative Currency, this Agreement and the other Loan Documents shall be amended to the extent necessary or appropriate to provide for the administrative and operational provisions applicable to such Alternative Currency, in each case as are reasonably satisfactory to the Administrative Agent.

Section 2.15 <u>Incremental Equivalent Debt</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any Loan Party may from time to time after the Closing Date issue one or more series of senior secured, senior unsecured, senior subordinated or subordinated notes, loans or Indebtedness (such notes, loans and/or Indebtedness, collectively, "**Incremental Equivalent Debt**") in an amount not to exceed the Incremental Amount (at the time of incurrence, subject to <u>Section</u> <u>1.02(i)</u>); *provided* that (i) subject to <u>Section</u> <u>1.02(i)</u>, (A) no Event of Default would exist immediately after giving effect to any such incurrence of Incremental Equivalent Debt; *provided*, that the condition set forth in this <u>clause (i)(A)</u> may be limited to no Event of Default pursuant to <u>Sections 8.01(a)</u>, <u>(f)</u> and <u>(g)</u> at the election of the Persons providing such Incremental Equivalent Debt and (B) the representations and warranties of the Borrowers and each other Loan Party contained in <u>Article V</u> or any other Loan Document shall be true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) on and as of such date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) as of such earlier date, and except that for purposes of this <u>clause</u> 

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 <u>(i)(B)</u>, the representations and warranties contained in <u>Sections 5.05(a)</u> and <u>(b)</u> shall be deemed to refer to the most recent financial statements furnished pursuant to <u>Sections 6.01(a)</u> and <u>(b)</u>, respectively, prior to such date; *provided*, that the condition set forth in this <u>clause (i)(B)</u> may be waived or not required by the Persons providing such Incremental Equivalent Debt and (ii) any such incurrence of Incremental Equivalent Debt shall be in a minimum amount of the lesser of (x) $5,000,000 (or the equivalent Dollar Amount) and (y) the entire amount that may be requested under this <u>Section</u> <u>2.15</u>; *provided*, *further*, that (A) unless the Borrower Representative elects otherwise, (x) the Borrowers shall be deemed to have used amounts under the Ratio-Based Incremental Facility (to the extent compliant therewith) prior to using amounts under the Effective Extension Incremental Facility, the Prepayment-Based Incremental Facility, the Cash-Capped Incremental Facility or the Reallocated General Debt Facility, (y) the Borrowers shall be deemed to have used the Prepayment-Based Incremental Facility prior to utilization of the Cash-Capped Incremental Facility and the Reallocated General Debt Facility, and (z) the Borrowers shall be deemed to have used the Cash-Capped Incremental Facility prior to utilization of the Reallocated General Debt Facility, (B) New Loan Commitments pursuant to <u>Section</u> <u>2.14</u>, Incremental Equivalent Debt pursuant to this <u>Section</u> <u>2.15</u>, Ratio Debt and Ratio Acquisitions Debt may be incurred substantially concurrently under the Ratio-Based Incremental Facility (to the extent compliant therewith), the Effective Extension Incremental Facility, the Prepayment-Based Incremental Facility, the Cash-Capped Incremental Facility, and the Reallocated General Debt Facility or any combination of any of the foregoing, and proceeds from any such incurrence may be utilized in a single transaction or series of related transactions by, unless the Borrower Representative elects otherwise, first, calculating the incurrence under the Ratio-Based Incremental Facility (without inclusion of (x) any amounts incurred substantially concurrently pursuant to the Prepayment-Based Incremental Facility, the Cash-Capped Incremental Facility, or the Reallocated General Debt Facility, (y) any amounts incurred substantially concurrently under any fixed basket under <u>Section</u> <u>7.01</u> or (z) any revolving credit loans incurred substantially concurrently with such single transaction or series of related transactions) and then calculating the incurrence under the Prepayment-Based Incremental Facility (without inclusion of any amounts utilized pursuant to the Cash-Capped Incremental Facility and the Reallocated General Debt Facility) and then calculating the incurrence under the Effective Extension Incremental Facility, the Prepayment-Based Incremental Facility, the Cash-Capped Incremental Facility, and the Reallocated General Debt Facility, as applicable, (C) all or any portion of Indebtedness originally designated as incurred under the Prepayment-Based Incremental Facility, the Cash-Capped Incremental Facility, or the Reallocated General Debt Facility shall automatically cease to be deemed incurred under the Prepayment-Based Incremental Facility, the Cash-Capped Incremental Facility, or the Reallocated General Debt Facility and shall instead be deemed incurred under the Ratio-Based Incremental Facility from and after the first date on which the Borrowers would be permitted to incur all or such portion, as applicable, of the aggregate principal amount of such Indebtedness under the Ratio-Based Incremental Facility (for the avoidance of doubt, which determination shall be made without duplication of such Indebtedness originally designated as incurred under the Prepayment-Based Incremental Facility, the Cash-Capped Incremental Facility, or the Reallocated General Debt Facility) (which, for the avoidance of doubt, shall have the effect of increasing the Prepayment-Based Incremental Facility,

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the Reallocated General Debt Facility and/or the Cash-Capped Incremental Facility, as applicable, by all or such portion, as applicable, of the aggregate principal amount of such Indebtedness), and (D) solely for the purpose of cash netting in calculating the Consolidated First Lien Net Leverage Ratio, the Consolidated Senior Secured Net Leverage Ratio or the Consolidated Total Net Leverage Ratio to determine the availability under the Ratio-Based Incremental Facility at the time of incurrence, any cash proceeds of any New Loan Commitments incurred pursuant to <u>Section</u> <u>2.14</u>, any Incremental Equivalent Debt Incurred pursuant to this <u>Section</u> <u>2.15</u>, any Ratio Debt and any Ratio Acquisitions Debt, in each case, incurred at such test date shall be excluded for purposes of calculating Adjusted Cash or Cash Equivalents. The Borrowers may appoint any Person as arranger of such Incremental Equivalent Debt (such Person (who may be the Administrative Agent, if it so agrees), the "**Incremental Equivalent Debt Arranger**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) Any Incremental Equivalent Debt, (A) if incurred or Guaranteed by the Borrowers or any Guarantor, shall not be Guaranteed by any Person that is not a Loan Party or does not become a Loan Party substantially concurrently with the incurrence of such Incremental Equivalent Debt, (B) if secured by a lien on all or any portion of the Collateral, shall not be secured by any assets other than assets that constitute Collateral (except (1) customary cash collateral in favor of an agent, letter of credit issuer or similar "fronting" lender, (2) any liens on property or assets to the extent that a Lien on such property or asset is also added for the benefit of the Lenders under the Initial Term Loans and the Revolving Credit Loans, as applicable, and (3) to the extent incurred in reliance on (or re-classified to) the Cash-Capped Incremental Facility or the NonCollateral Ratio Facility), and (C) at the option of the Borrower Representative, shall be secured by a lien on the Collateral on a *pari passu* basis with the Initial Term Loans and the Initial Revolving Tranche, secured by a lien on the Collateral on a junior basis to the Initial Term Loans, secured by a Lien on assets not constituting Collateral or unsecured; *provided* that, if such Incremental Equivalent Debt is incurred under the Effective Extension Incremental Facility, (x) such Incremental Equivalent Debt may be secured by a lien on the Collateral on a *pari passu* basis with the Initial Term Loans and the Initial Revolving Tranche only to the extent such Incremental Equivalent Debt effectively extends the maturity date of First Lien Specified Debt, and (y) such Incremental Equivalent Debt may be secured by a lien on the Collateral only to the extent such Incremental Equivalent Debt effectively extends the maturity date of First Lien Specified Debt or Junior Lien Specified Debt; *provided*, *further*, that, if such Incremental Equivalent Debt is secured by a lien on all or any portion of the Collateral, such Incremental Equivalent Debt shall be subject to Applicable Intercreditor Arrangements, (ii) the final maturity of any Incremental Equivalent Debt shall be no earlier than the Latest Maturity Date for, and such Incremental Equivalent Debt shall not have a Weighted Average Life to Maturity shorter than the remaining Weighted Average Life to Maturity of, the then outstanding Initial Term Loans; *provided* that Designated Earlier Maturing Debt may have a maturity date earlier than the Latest Maturity Date for the then outstanding Initial Term Loans and, with respect to Designated Earlier Maturing Debt, the Weighted Average Life to Maturity thereof may be shorter than the remaining Weighted Average Life to Maturity of the then outstanding Term Facilities (without giving effect to any amortization or prepayments of such Term Loans), (iii) [reserved], (iv) [reserved], and (v) any Incremental Equivalent Debt (other than any Designated Earlier Maturing Debt) shall not be subject to any mandatory redemption or prepayment provisions or rights

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(except (x) with respect to any Incremental Equivalent Debt that is secured by a lien on the Collateral on a *pari passu* basis with the Initial Term Loans, to the extent any such mandatory redemption or prepayment is required to be applied pro rata (or greater than pro rata) to the Initial Term Loans and other Incremental Equivalent Debt that is secured by a lien on the Collateral on a *pari passu* basis with the Initial Term Loans and (y) with respect to any Incremental Equivalent Debt that is secured by a lien on the Collateral on a junior basis with the Initial Term Loans or that is unsecured, to the extent that any such mandatory redemption or prepayment is first made or offered to the Initial Term Loans). Subject to the foregoing, the conditions precedent to each such incurrence shall be agreed to by the creditors providing such Incremental Equivalent Debt and the applicable Borrowers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Lenders hereby authorize the Incremental Equivalent Debt Arranger (and the Lenders hereby authorize the Incremental Equivalent Debt Arranger to execute and deliver such amendments) to enter into amendments to this Agreement and the other Loan Documents with the Borrowers as may be necessary in order to secure any Incremental Equivalent Debt with the Collateral and/or to make such technical amendments as may be necessary or appropriate in the reasonable opinion of the Incremental Equivalent Debt Arranger and the Borrowers in connection with the incurrence of such Incremental Equivalent Debt, in each case on terms consistent with this <u>Section</u> <u>2.15</u>. If the Incremental Equivalent Debt Arranger is not the Administrative Agent, the actions authorized to be taken by the Incremental Equivalent Debt Arranger herein shall be done in consultation with the Administrative Agent and, with respect to applicable documentation (including amendments to this Agreement and the other Loan Documents), any comments to such documentation with respect to operational and agency provisions reasonably requested by the Administrative Agent shall be reflected therein.

Section 2.16 <u>Cash Collateral</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon the request of the Administrative Agent or the applicable L/C Issuer (i) if the applicable L/C Issuer has honored any full or partial drawing request under any Letter of Credit and such drawing has resulted in an L/C Borrowing or (ii) if, as of the Letter of Credit Expiration Date, any L/C Obligation for any reason remains outstanding, the Borrowers shall, in each case, promptly deliver to the Administrative Agent Cash Collateral in an amount sufficient to cover 103.0% of the then Outstanding Amount of all L/C Obligations. At any time that there shall exist a Defaulting Lender, promptly upon the request of the Administrative Agent or the applicable L/C Issuer, the Borrowers shall deliver to the Administrative Agent Cash Collateral in an amount sufficient to cover 103.0% of all Fronting Exposure of such Defaulting Lender after giving effect to <u>Section</u> <u>2.17(a)(iv)</u> and any Cash Collateral provided by such Defaulting Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All Cash Collateral (other than credit support not constituting funds subject to deposit) shall be maintained in blocked, deposit accounts at the Administrative Agent or the Collateral Agent (or other financial institution selected by any of them). The Borrowers, and to the extent provided by any Lender, such Lender, hereby grant to (and subject to the control of) the Administrative Agent and the Collateral Agent, for the benefit of the Administrative Agent, the applicable L/C Issuer and the Lenders, and agrees to maintain, a first priority security interest in all such cash, deposit accounts and all balances therein,

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and all other property so provided as collateral pursuant hereto, and in all proceeds of the foregoing, all as security for the obligations to which such Cash Collateral may be applied pursuant to <u>Section</u> <u>2.16(c)</u>. If at any time the Administrative Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Administrative Agent as herein provided or that the total amount of such Cash Collateral is less than the applicable Fronting Exposure and other obligations secured thereby, the Borrowers and the relevant Defaulting Lender shall, promptly upon demand by the Administrative Agent, pay or provide to the Administrative Agent additional Cash Collateral in an amount sufficient to eliminate such deficiency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under any of this <u>Section</u> <u>2.16</u> or <u>Section</u> <u>2.03</u>, <u>2.05</u>, <u>2.06</u>, <u>2.17</u>, <u>8.02</u> or <u>8.04</u> in respect of Letters of Credit shall be held and applied to the satisfaction of the specific L/C Obligations, obligations to fund participations therein (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) and other obligations for which the Cash Collateral was so provided prior to any other application of such property as may be provided for herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Cash Collateral (or the appropriate portion thereof) provided to reduce Fronting Exposure or other obligations shall be released promptly following (i) the elimination of the applicable Fronting Exposure (after giving effect to such release) or other obligations giving rise thereto (including by the termination of Defaulting Lender status of the applicable Lender (or, as appropriate, its assignee following compliance with <u>Section</u> <u>10.07(b)(viii)</u>)) or (ii) the Administrative Agent's good faith determination that there exists excess Cash Collateral; *provided*, *however*, that (x) Cash Collateral furnished by or on behalf of a Loan Party shall not be released during the continuance of a Default under <u>Section</u> <u>8.01(a)</u>, <u>(f)</u> or <u>(g)</u> or an Event of Default (and following application as provided in this <u>Section</u> <u>2.16</u> may be otherwise applied in accordance with <u>Section</u> <u>8.04</u>) and (y) the Person providing Cash Collateral and the applicable L/C Issuer may agree that Cash Collateral shall not be released but instead held to support future anticipated Fronting Exposure or other obligations.

Section 2.17 <u>Defaulting Lenders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as that Lender is no longer a Defaulting Lender, to the extent permitted by applicable Law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) That Defaulting Lender's right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in <u>Section</u> <u>10.01</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of that Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to <u>Article VIII</u> or otherwise, and including any amounts made available to the Administrative Agent by that Defaulting Lender pursuant to <u>Section</u> <u>10.09</u>), shall be applied at such time or times as may be determined by the Administrative

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Agent as follows: <u>first</u>, to the payment of any amounts owing by that Defaulting Lender to the Administrative Agent hereunder; <u>second</u>, to the payment on a pro rata basis of any amounts owing by that Defaulting Lender to the L/C Issuers hereunder; <u>third</u>, if so reasonably determined by the Administrative Agent or reasonably requested by the applicable L/C Issuer, to be held as Cash Collateral for future funding obligations of that Defaulting Lender of any participation in any Letter of Credit; <u>fourth</u>, as the Borrower Representative may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which that Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; <u>fifth</u>, if so determined by the Administrative Agent and the Borrower Representative, to be held in a non-interest bearing deposit account and released in order to satisfy obligations of that Defaulting Lender to fund Loans under this Agreement; <u>sixth</u>, to the payment of any amounts owing to the Lenders or any L/C Issuer as a result of any non-appealable judgment of a court of competent jurisdiction obtained by any Lender or any L/C Issuer against that Defaulting Lender as a result of that Defaulting Lender's breach of its obligations under this Agreement; <u>seventh</u>, so long as no Default or Event of Default pursuant to <u>Section</u> <u>8.01(a)</u>, <u>(f)</u> or <u>(g)</u> exists, to the payment of any amounts owing to the Borrowers as a result of any non-appealable judgment of a court of competent jurisdiction obtained by the Borrowers against that Defaulting Lender as a result of that Defaulting Lender's breach of its obligations under this Agreement; and <u>eighth</u>, to that Defaulting Lender or as otherwise directed by a court of competent jurisdiction; *provided* that if (x) such payment is a payment of the principal amount of any Loans or L/C Borrowings in respect of which that Defaulting Lender has not fully funded its appropriate share and (y) such Loans or L/C Borrowings were made at a time when the conditions set forth in <u>Section</u> <u>4.02</u> were satisfied or waived, such payment shall be applied solely to pay the Loans of, and L/C Borrowings owed to, all non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or L/C Borrowings owed to, that Defaulting Lender. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this <u>Section</u> <u>2.17(a)(ii)</u> shall be deemed paid to and redirected by that Defaulting Lender, and each Lender irrevocably consents hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) That Defaulting Lender (x) shall not be entitled to receive any commitment fee pursuant to <u>Section</u> <u>2.09(a)</u> for any period during which that Lender is a Defaulting Lender (and the Borrowers shall not be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender), (y) shall not be entitled to receive any interest accruing at the Default Rate pursuant to <u>Section</u> <u>2.08(a)</u> for any period during which that Lender is a Defaulting Lender (and the Borrowers shall not be required to pay any such accrued default interest that otherwise would have been required to have been paid to that Defaulting Lender), and (z) shall be limited in its right to receive Letter of Credit fees as provided in <u>Section</u> <u>2.03(h)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) During any period in which there is a Defaulting Lender, for purposes of computing the amount of the obligation of each non-Defaulting Lender to acquire, refinance or fund participations in Letters of Credit pursuant to <u>Section</u> <u>2.03</u>, the Pro Rata Share of each non-Defaulting Lender under a Revolving Tranche shall be determined without giving effect to the Commitment under such Revolving Tranche of that Defaulting

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Lender; *provided* that the aggregate obligation of each non-Defaulting Lender under a Revolving Tranche to acquire, refinance or fund participations in Letters of Credit issued under such Revolving Tranche shall not exceed the positive difference, if any, of (1) the Commitment under such Revolving Tranche of that non-Defaulting Lender *minus* (2) the aggregate Outstanding Amount of the Loans under such Revolving Tranche of that Revolving Credit Lender. No reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender's increased exposure following such reallocation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Borrower Representative, the Administrative Agent and each L/C Issuer agree in writing in their sole discretion that a Defaulting Lender should no longer be deemed to be a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable, purchase that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may reasonably determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit to be held on a pro rata basis by the Lenders in accordance with their ratable shares (without giving effect to the application of <u>Section</u> <u>2.17(a)(iv)</u>) in respect of that Lender, whereupon that Lender will cease to be a Defaulting Lender; *provided* that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrowers while that Lender was a Defaulting Lender; and *provided, further*, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender having been a Defaulting Lender.

Section 2.18 <u>Specified Refinancing Debt</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrowers may, from time to time after the Closing Date, add one or more new term loan facilities and new revolving credit facilities to the Facilities ("**Specified Refinancing Debt**"; and the commitments in respect of such new term facilities, the "**Specified Refinancing Term Commitment**" and the commitments in respect of such new revolving credit facilities, the "**Specified Refinancing Revolving Credit Commitment**") pursuant to procedures reasonably specified by any Person appointed by the Borrowers, as agent under such Specified Refinancing Debt (such Person (who may be the Administrative Agent, if it so agrees), the "**Specified Refinancing Agent**") and reasonably acceptable to the Borrower Representative, to refinance (including by extending the maturity) (i) all or any portion of any Term Loan Tranches then outstanding under this Agreement, (ii) all or any portion of any Revolving Tranches then in effect under this Agreement or (iii) all or any portion of any Revolving Credit Commitment Increase, Term Commitment Increase, New Term Facility or New Revolving Facility incurred under <u>Section</u> <u>2.14</u>, in each case pursuant to a Refinancing Amendment; *provided* that such Specified Refinancing Debt: (i) may not have obligors or Liens that are more extensive than those which applied to the Indebtedness being refinanced (it being understood that the roles of such obligors as a borrower or a guarantor with respect to such obligations may be

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interchanged; (ii) if incurred or Guaranteed by the Borrowers or any Guarantor, shall not be Guaranteed by any Subsidiary that is not a Loan Party or does not become a Loan Party substantially concurrently with the incurrence of such Specified Refinancing Debt; (iii) (x) if secured by a lien on all or any portion of the Collateral, shall not be secured by any assets of any Loan Party other than assets that constitute Collateral, and (y) at the option of the Borrowers, shall be secured by a lien on the Collateral on a *pari passu* basis with the Initial Term Loans and the Initial Revolving Tranche, secured by a lien on the Collateral on a junior basis to the Initial Term Loans, secured by a Lien on assets not constituting Collateral or unsecured; *provided* that, if such Specified Refinancing Debt is secured by a lien on all or any portion of the Collateral, such Specified Refinancing Debt shall be subject to Applicable Intercreditor Arrangements); (iv) [reserved]; (v) shall have such pricing and optional prepayment terms as may be agreed by the applicable Borrowers and the applicable Lenders thereof; (vi) (x) to the extent constituting revolving credit facilities, shall not have a maturity date (or have mandatory commitment reductions or amortization) that is prior to the scheduled Maturity Date of the Revolving Tranche being refinanced and (y) to the extent constituting term loan facilities, shall have a maturity date that is not prior to the date that is the Latest Maturity Date of, and will have a Weighted Average Life to Maturity that is not shorter than the remaining Weighted Average Life to Maturity of, the Term Loans being refinanced; *provided* that Designated Earlier Maturing Debt may have a maturity date that is earlier than the Latest Maturity Date of the Term Loans being refinanced and, with respect to Designated Earlier Maturing Debt, the Weighted Average Life to Maturity thereof may be shorter than the remaining Weighted Average Life to Maturity of the Term Loans being refinanced; (vii) in the case of Specified Refinancing Term Loans, shall share ratably in any mandatory prepayments of the then outstanding Initial Term Loans pursuant to <u>Section</u> <u>2.05</u> (or otherwise provide for more favorable prepayment treatment for the then outstanding Initial Term Loans than the Specified Refinancing Term Loans); (viii) in the case of Specified Refinancing Revolving Credit Commitments, shall provide that each Revolving Credit Borrowing (including any deemed Revolving Credit Borrowings made pursuant to <u>Section</u> <u>2.03</u>) and participations in Letters of Credit pursuant to <u>Section</u> <u>2.03</u> shall be allocated pro rata among the Revolving Tranches; (ix) subject to <u>clauses (v)</u> and <u>(vi)</u> above, shall have covenants and events of default (excluding optional prepayment and redemption terms) that are, taken as a whole, not materially more restrictive to the Borrower Parties than those applicable to the Initial Term Loans (taken as a whole) (except for (x) covenants and events of default applicable only to periods after the Maturity Date of the Initial Term Loans and existing at the time of incurrence or issuance of such Specified Refinancing Debt and (y) any covenant to the extent such covenant is also added for the benefit of the Lenders holding the Initial Term Loans, without further Lender approval or voting requirement) or otherwise are customary for similar debt securities in light of then-prevailing market conditions at the time of issuance (as determined by the Borrower Representative in good faith; *provided* that, at the Borrower Representative's option, delivery of a certificate of a Responsible Officer of the Borrower Representative to the Specified Refinancing Agent in good faith at least three Business Days (or such shorter period as may be agreed by the Specified Refinancing Agent) prior to the incurrence of such Specified Refinancing Debt, together with a reasonably detailed description of the material terms and conditions of such Specified Refinancing Debt or drafts of the documentation relating thereto, stating that the Borrower

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Representative has determined in good faith that such terms and conditions satisfy the requirement set forth in this <u>clause (a)</u>, shall be conclusive evidence that such terms and conditions satisfy such requirement unless the Specified Refinancing Agent provides notice to the Borrower Representative of its objection during such three Business Day (or shorter) period (including a reasonable description of the basis upon which it objects)); and the Net Cash Proceeds of such Specified Refinancing Debt shall be applied, substantially concurrently with the incurrence thereof, to the pro rata prepayment of outstanding Loans being so refinanced (or less than the pro rata prepayment of outstanding Loans made by any Term Lenders or the Revolving Credit Lenders, as applicable, that will be lenders of the Specified Refinancing Debt, as approved by such Term Lenders or the Revolving Credit Lenders, as applicable; *provided* that in the case of Revolving Credit Loans, a corresponding amount of Revolving Credit Commitments shall be permanently reduced), in each case pursuant to <u>Section</u> <u>2.05</u> and <u>2.06</u>, as applicable, and the payment of fees, expenses and premiums, if any, payable in connection therewith; *provided*, *however*, that such Specified Refinancing Debt shall not have a principal or commitment amount (or accreted value) greater than the Loans being refinanced (plus an amount equal to accrued interest, fees, discounts, premiums and expenses). Any Lender approached to provide all or a portion of any Specified Refinancing Debt may elect or decline, in its sole discretion, to provide such Specified Refinancing Debt. To achieve the full amount of a requested issuance of Specified Refinancing Debt, and subject to the approval of the Administrative Agent and each L/C Issuer in the case of Specified Refinancing Revolving Credit Commitments, the Borrowers may also invite additional Eligible Assignees reasonably satisfactory to the Specified Refinancing Agent, to become Lenders in respect of such Specified Refinancing Debt pursuant to a joinder agreement to this Agreement in form and substance reasonably satisfactory to the Specified Refinancing Agent (to the extent the consent of any of the foregoing would be required to assign Loans hereunder, with such consent may not be unreasonably withheld, conditioned or delayed). For the avoidance of doubt, any allocations of Specified Refinancing Debt shall be made at the Borrowers' sole discretion, and the Borrowers will not be obligated to allocate any Specified Refinancing Debt to any Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The effectiveness of any Refinancing Amendment shall be subject to conditions as are mutually agreed with the participating Lenders providing such Specified Refinancing Debt and to the extent reasonably requested by the Specified Refinancing Agent, receipt by the Specified Refinancing Agent of legal opinions, board resolutions, officers' certificates and/or reaffirmation agreements with respect to the Borrowers and the Guarantors, including any supplements or amendments to the Collateral Documents providing for such Specified Refinancing Debt to be secured thereby, consistent with those delivered on the Closing Date under <u>Section</u> <u>4.01</u> or delivered from time to time pursuant to <u>Section</u> <u>6.12</u>, <u>6.14</u> and/or <u>Section</u> <u>6.16</u> (other than changes to such legal opinions resulting from a change in Law, change in fact or change to counsel's form of opinion). The Lenders hereby authorize the Specified Refinancing Agent to enter into amendments to this Agreement and the other Loan Documents with the Borrowers as may be necessary in order to establish new Tranches of Specified Refinancing Debt and to make such technical amendments as may be necessary or appropriate in the reasonable opinion of the Specified Refinancing Agent and the Borrowers in connection with the establishment of such new Tranches, in each case on terms consistent with and/or to effect the provisions of this <u>Section</u> <u>2.18</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each class of Specified Refinancing Debt incurred under this <u>Section</u> <u>2.18</u> shall be in an aggregate principal amount that is (x) not less $5,000,000 (or the equivalent Dollar Amount) and (y) an integral multiple of $1,000,000 (or the equivalent Dollar Amount) in excess thereof. Any Refinancing Amendment may provide for the issuance of Letters of Credit for the account of the Borrowers in respect of a Revolving Tranche pursuant to any revolving credit facility established thereby, in each case on terms substantially equivalent to the terms applicable to Letters of Credit under the Revolving Credit Commitments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Specified Refinancing Agent shall promptly notify each Lender as to the effectiveness of each Refinancing Amendment. Each of the parties hereto hereby agrees that, upon the effectiveness of any Refinancing Amendment, this Agreement shall be deemed amended to the extent (but only to the extent) necessary to reflect the existence and terms of the Specified Refinancing Debt incurred pursuant thereto (including the addition of such Specified Refinancing Debt as separate "Facilities" hereunder and treated in a manner consistent with the Facilities being refinanced, including for purposes of prepayments and voting). Any Refinancing Amendment may, without the consent of any Person other than the Borrowers, the Specified Refinancing Agent and the Lenders providing such Specified Refinancing Debt, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the Specified Refinancing Agent and the Borrowers, to effect the provisions of or consistent with this <u>Section</u> <u>2.18</u>. In addition, if so provided in the relevant Refinancing Amendment and with the consent of each L/C Issuer, participations in Letters of Credit expiring on or after the scheduled Maturity Date in respect of a Revolving Tranche shall be reallocated from Lenders holding Revolving Credit Commitments to Lenders holding extended revolving commitments in accordance with the terms of such Refinancing Amendment; *provided*, *however*, that such participation interests shall, upon receipt thereof by the relevant Lenders holding extended revolving commitments, be deemed to be participation interests in respect of such extended revolving commitments and the terms of such participation interests (including the commission applicable thereto) shall be adjusted accordingly. If the Specified Refinancing Agent is not the Administrative Agent, the actions authorized to be taken by the Specified Refinancing Agent herein shall be done in consultation with the Administrative Agent and, with respect to the preparation of any documentation necessary or appropriate to carry out the provisions of this <u>Section</u> <u>2.18</u> (including amendments to this Agreement and the other Loan Documents), any comments to such documentation reasonably requested by the Administrative Agent shall be reflected therein.

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Section 2.19 <u>Extension of Term Loans and Revolving Credit Commitments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrowers may at any time and from time to time request that all or a portion of the (i) Term Loans of one or more Tranches existing at the time of such request (each, an "**Existing Term Tranche**", and the Term Loans of such Tranche, the "**Existing Term Loans**") or (ii) Revolving Credit Commitments of one or more Tranches existing at the time of such request (each, an "**Existing Revolving Tranche**" and together with the Existing Term Tranches, each an "**Existing Tranche**", and the Revolving Credit Commitments of such Existing Revolving Tranche together with the Existing Term Loans, the "**Existing Loans**"), in each case, be converted to extend the scheduled maturity date(s) of any payment of principal with respect to all or a portion of any principal amount of any Existing Tranche (any such Existing Tranche which has been so extended, an "**Extended Term Tranche**" or "**Extended Revolving Tranche**", as applicable, and each an "**Extended Tranche**", and the Term Loans or Revolving Credit Commitments, as applicable, of such Extended Tranches, the "**Extended Term Loans**" or "**Extended Revolving Commitments**", as applicable, and collectively, the "**Extended Loans**") and to provide for other terms consistent with this <u>Section</u> <u>2.19</u>; *provided* that (i) any such request shall be made by the Borrowers to certain Lenders specified by the Borrowers with Term Loans or Revolving Credit Commitments, as applicable, with a like maturity date (whether under one or more Tranches) on a pro rata basis (based on the aggregate outstanding principal amount of the Term Loans or on the aggregate Revolving Credit Commitments) and (ii) any applicable Minimum Extension Condition shall be satisfied unless waived by the Borrowers in its sole discretion. In order to establish any Extended Tranche, the Borrower Representative shall provide a notice to the Administrative Agent (in such capacity, the "**Extended Loans Agent**") (who shall provide a copy of such notice to each of the requested Lenders of the applicable Existing Tranche) (an "**Extension Request**") setting forth the proposed terms of the Extended Tranche to be established, which terms shall be substantially similar to those applicable to the Existing Tranche from which they are to be extended (the "**Specified Existing Tranche**"), except that (w) all or any of the final maturity dates of such Extended Tranches shall be delayed to later dates than the final maturity dates of the Specified Existing Tranche, (x) (A) the interest margins with respect to the Extended Tranche may be higher or lower than the interest margins for the Specified Existing Tranche and/or (B) additional fees may be payable to the Lenders providing such Extended Tranche in addition to or in lieu of any increased margins contemplated by the preceding <u>clause (A)</u>, (y) in the case of any Extended Term Tranche, such Extended Term Tranche shall share ratably in any mandatory prepayments of the then outstanding Initial Term Loans pursuant to <u>Section</u> <u>2.05</u> (or otherwise provide for more favorable mandatory prepayment treatment for the then outstanding Initial Term Loans than such Extended Term Tranche) and (z) in the case of any Extended Term Tranche, so long as the Weighted Average Life to Maturity of such Extended Tranche would be no shorter than the remaining Weighted Average Life to Maturity of the Specified Existing Tranche, amortization rates with respect to the Extended Term Tranche may be higher or lower than the amortization rates for the Specified Existing Tranche, in each case to the extent provided in the applicable Extension Amendment; *provided* that, notwithstanding anything to the contrary in this <u>Section</u> <u>2.19</u> or otherwise, assignments and participations of Extended Tranches shall be governed by the same or, at the Borrowers' discretion, more restrictive assignment and participation provisions applicable to Initial Term Loans or Revolving Credit Commitments, as applicable, set forth in <u>Section</u> <u>10.07</u>. No requested Lender shall have any obligation to agree to have any of its Existing Loans converted into an Extended Tranche pursuant to any Extension Request and the commitment of any L/C Issuer to issue or maintain Letters of Credit shall not be extended pursuant to an extension of any Existing Revolving Tranche pursuant to this <u>Section</u> <u>2.19</u> without its written consent.

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Any Extended Tranche shall constitute a separate Tranche of Loans from the Specified Existing Tranches and from any other Existing Tranches (together with any other Extended Tranches so established on such date). On the Extension Date applicable to any applicable Revolving Tranche under the Revolving Credit Facility, the Borrowers shall prepay the Revolving Credit Loans or L/C Advances (to the extent participated to Revolving Credit Lenders) outstanding on such Extension Date applicable to the relevant Revolving Tranche to the extent necessary to keep the outstanding Revolving Credit Loans or L/C Advances (to the extent participated to Revolving Credit Lenders), as the case may be, applicable to the non-extending Revolving Credit Lenders under such Revolving Tranche in accordance with any revised Pro Rata Share of a Revolving Credit Lender in respect of the extended Revolving Credit Facility arising from any non-ratable Extension to the Revolving Credit Commitments under this <u>Section</u> <u>2.19</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrowers shall provide the applicable Extension Request at least ten Business Days (or such shorter period as the Extended Loans Agent may agree in its sole discretion) prior to the date on which Lenders under the applicable Existing Tranche or Existing Tranches are requested to respond. Any Lender (an "**Extending Lender**") wishing to have all or a portion of its Specified Existing Tranche converted into an Extended Tranche shall notify the Extended Loans Agent (each, an "**Extension Election**") on or prior to the date specified in such Extension Request of the amount of its Specified Existing Tranche that it has elected to convert into an Extended Tranche. In the event that the aggregate amount of the Specified Existing Tranche subject to Extension Elections exceeds the amount of Extended Tranches requested pursuant to the Extension Request, the Specified Existing Tranches subject to Extension Elections shall be converted to Extended Tranches on a pro rata basis based on the amount of Specified Existing Tranches included in each such Extension Election. In connection with any extension of Loans pursuant to this <u>Section</u> <u>2.19</u> (each, an "**Extension**"), the Borrowers and Extended Loans Agent shall agree to such procedures regarding timing, rounding, lender revocation and other administrative adjustments to ensure reasonable administrative management of the credit facilities hereunder after such Extension, in each case acting reasonably to accomplish the purposes of this <u>Section</u> <u>2.19</u>. The Borrowers may amend, revoke or replace an Extension Request pursuant to procedures reasonably acceptable to the Extended Loans Agent at any time prior to the date on which Lenders under the applicable Existing Term Tranche or Existing Term Tranches are requested to respond to the Extension Request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Extended Tranches shall be established pursuant to an amendment (an "**Extension Amendment**") to this Agreement (which may include amendments to provisions related to maturity, interest margins or fees referenced in <u>clauses (x)</u> and <u>(y)</u> of <u>Section</u> <u>2.19(a)</u>, or, in the case of Extended Term Tranches, amortization rates referenced in <u>clause (z)</u> of <u>Section</u> <u>2.19(a)</u>, and which, in each case, except to the extent expressly contemplated by the last sentence of this <u>Section</u> <u>2.19(c)</u> and notwithstanding anything to the contrary set forth in <u>Section</u> <u>10.01</u>, shall not require the consent of any Lender other than the Extending Lenders with respect to the Extended Tranches established thereby) executed by the Loan Parties, the Extended Loans Agent, and the Extending Lenders. Subject to the requirements of this <u>Section</u> <u>2.19</u> and without limiting the generality or applicability of <u>Section</u> <u>10.01</u> to any <u>Section</u> <u>2.19</u> Additional Amendments (as defined below), any Extension Amendment may provide for additional terms and/or additional

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amendments other than those referred to or contemplated above (any such additional amendment, a "**Section 2.19 Additional Amendment**") to this Agreement and the other Loan Documents; *provided* that such <u>Section</u> <u>2.19</u> Additional Amendments do not become effective prior to the time that such <u>Section</u> <u>2.19</u> Additional Amendments have been consented to (including, without limitation, pursuant to consents applicable to holders of any Extended Tranches provided for in any Extension Amendment) by such of the Lenders, Loan Parties and other parties (if any) as may be required in order for such <u>Section</u> <u>2.19</u> Additional Amendments to become effective in accordance with <u>Section</u> <u>10.01</u>; *provided*, *further*, that (i) if incurred or Guaranteed by the Borrowers or any Guarantor, such Extended Tranche shall not be Guaranteed by any Subsidiary that is not a Loan Party or does not become a Loan Party substantially concurrently with the establishment of such Extended Tranche, (ii) if secured by a lien on all or any portion of the Collateral, such Extended Tranche shall not be secured by any assets of any Loan Party other than assets that constitute Collateral, and (iii) at the option of the Borrowers, such Extended Tranche shall be secured by a lien on the Collateral on a *pari passu* basis with the Initial Term Loans and the Initial Revolving Tranche, secured by a lien on the Collateral on a junior basis to the Initial Term Loans, secured by a Lien on assets not constituting Collateral or unsecured; *provided* that, if such Extended Tranche is secured by a lien on all or any portion of the Collateral, such Extended Tranche shall be subject to Applicable Intercreditor Arrangements. Notwithstanding anything to the contrary in <u>Section</u> <u>10.01</u>, any such Extension Amendment may, without the consent of any other Lenders, effect such amendments to any Loan Documents as may be necessary or appropriate, in the reasonable judgment of the Borrowers and the Extended Loans Agent, to effect the provisions of this <u>Section</u> <u>2.19</u>; *provided* that the foregoing shall not constitute a consent on behalf of any Lender to the terms of any <u>Section</u> <u>2.19</u> Additional Amendment. The Lenders hereby authorize the Extended Loans Agent to enter into amendments to this Agreement and the other Loan Documents with the Borrowers as may be necessary in order to establish any Extended Loans and to make such technical amendments as may be necessary or appropriate in the reasonable opinion of the Extended Loans Agent and the Borrowers in connection with the establishment of such Extended Loans, in each case on terms consistent with and/or to effect the provisions of this <u>Section</u> <u>2.19</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary contained in this Agreement, on any date on which any Existing Tranche is converted to extend the related scheduled maturity date(s) in accordance with <u>clause (a)</u> above (an "**Extension Date**"), in the case of the Specified Existing Tranche of each Extending Lender, the aggregate principal amount of such Specified Existing Tranche shall be deemed reduced by an amount equal to the aggregate principal amount of Extended Tranche so converted by such Lender on such date, and such Extended Tranches shall be established as a separate Tranche from the Specified Existing Tranche and from any other Existing Tranches (together with any other Extended Tranches so established on such date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If, in connection with any proposed Extension Amendment, any requested Lender declines to consent to the applicable extension on the terms and by the deadline set forth in the applicable Extension Request (each such other Lender, a "**Non-Extending Lender**") then the Borrower Representative may, on notice to the Extended Loans Agent and the Non-Extending Lender, replace such Non-Extending Lender by causing such

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Lender to (and such Lender shall be obligated to) assign pursuant to <u>Section</u> <u>10.07</u> (with the assignment fee and any other costs and expenses to be paid by the applicable Borrowers in such instance) all of its rights and obligations under this Agreement to one or more assignees; *provided* that neither the Extended Loans Agent nor any Lender shall have any obligation to the Borrowers to find a replacement Lender; *provided*, *further*, that the applicable assignee shall have agreed to provide Extended Loans on the terms set forth in such Extension Amendment; *provided*, *further*, that all obligations of the applicable Borrowers owing to the Non-Extending Lender relating to the Existing Loans so assigned shall be paid in full by the assignee Lender to such Non-Extending Lender concurrently with such Assignment and Assumption. In connection with any such replacement under this <u>Section</u> <u>2.19</u>, if the Non-Extending Lender does not execute and deliver to the Extended Loans Agent a duly completed Assignment and Assumption by the later of (A) the date on which the replacement Lender executes and delivers such Assignment and Assumption and (B) the date as of which all obligations of the Borrowers owing to the Non-Extending Lender relating to the Existing Loans so assigned shall be paid in full by the assignee Lender to such Non-Extending Lender, then such NonExtending Lender shall be deemed to have executed and delivered such Assignment and Assumption as of such date and the Borrower Representative shall be entitled (but not obligated) to execute and deliver such Assignment and Assumption on behalf of such Non-Extending Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Following any Extension Date, with the written consent of the Borrower Representative, any Non-Extending Lender may elect to have all or a portion of its Existing Loans deemed to be an Extended Loan under the applicable Extended Tranche on any date (each date a "**Designation Date**") prior to the maturity date of such Extended Tranche; *provided* that such Lender shall have provided written notice to the Borrower Representative and the Extended Loans Agent at least ten Business Days prior to such Designation Date (or such shorter period as the Administrative Agent may agree in its reasonable discretion); *provided*, *further*, that no greater amount shall be paid by or on behalf of the applicable Borrowers or any of their Affiliates to any such Non-Extending Lender as consideration for its extension into such Extended Tranche than was paid to any Extending Lender as consideration for its Extension into such Extended Tranche. Following a Designation Date, the Existing Loans held by such Lender so elected to be extended will be deemed to be Extended Loans of the applicable Extended Tranche, and any Existing Loans held by such Lender not elected to be extended, if any, shall continue to be "Existing Loans" of the applicable Tranche.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) With respect to all Extensions consummated by the Borrowers pursuant to this <u>Section</u> <u>2.19</u>, (i) such Extensions shall not constitute optional or mandatory payments or prepayments for purposes of <u>Sections 2.05(a)</u> and <u>(b)</u> and (ii) no Extension Request is required to be in any minimum amount or any minimum increment; *provided* that the Borrower Representative may at its election specify as a condition (a "**Minimum Extension Condition**") to consummating any such Extension that a minimum amount (to be determined and specified in the relevant Extension Request in the Borrowers' sole discretion and may be waived by the Borrower Representative) of Existing Loans of any or all applicable Tranches be extended. The Administrative Agent and the Lenders hereby consent to the transactions contemplated by this <u>Section</u> <u>2.19</u> (including, for the avoidance of doubt, payment of any interest, fees or premium in respect of any Extended Loans on such terms as may be set forth in the relevant Extension Request) and hereby waive the requirements of any provision of this Agreement (including, without limitation, <u>Sections 2.05(a)</u> and <u>(b)</u> and <u>2.07</u>) or any other Loan Document that may otherwise prohibit any such Extension or any other transaction contemplated by this <u>Section</u> <u>2.19</u>.

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Section 2.20 <u>Permitted Debt Exchanges</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything to the contrary contained in this Agreement, pursuant to one or more offers (each, a "Permitted Debt Exchange Offer") made from time to time by the Borrowers, the Borrowers may from time to time following the Closing Date consummate one or more exchanges of Term Loans for Permitted Debt Exchange Notes (each such exchange a "Permitted Debt Exchange") with any Lender (other than any Lender that, if requested by a Borrower, is unable to certify that it is either a "qualified institutional buyer" (as defined in Rule 144A under the Securities Act) or an institutional "accredited investor" (as defined in Rule 501 under the Securities Act)), so long as the following conditions are satisfied: (i) no Event of Default shall have occurred and be continuing at the time the final offering document in respect of a Permitted Debt Exchange Offer is delivered to the relevant Lenders, (ii) the aggregate principal amount (calculated on the face amount thereof) of Term Loans exchanged shall equal no more than the aggregate principal amount (calculated on the face amount thereof) of Permitted Debt Exchange Notes issued in exchange for such Term Loans; provided that the aggregate principal amount of the Permitted Debt Exchange Notes may include accrued interest and premium (if any) under the Term Loans exchanged and underwriting discounts, fees, commissions and Refinancing Expenses in connection with the issuance of such Permitted Debt Exchange Notes, (iii) the aggregate principal amount (calculated on the face amount thereof) of all Term Loans exchanged by the Borrowers pursuant to any Permitted Debt Exchange shall automatically be cancelled and retired by the Borrowers on the date of the settlement thereof (and, if requested by the Administrative Agent, any applicable exchanging Lender shall execute and deliver to the Administrative Agent an Assignment and Assumption, or such other form as may be reasonably requested by the Administrative Agent, in respect thereof pursuant to which the respective Lender assigns its interest in the Term Loans being exchanged pursuant to the Permitted Debt Exchange to the Borrowers for immediate cancellation), (iv) if the aggregate principal amount of all Term Loans (calculated on the face amount thereof) tendered by Lenders in respect of the relevant Permitted Debt Exchange Offer (with no Lender being permitted to tender a principal amount of Term Loans which exceeds the principal amount thereof actually held by it) shall exceed the maximum aggregate principal amount of such Term Loans offered to be exchanged by the Borrowers pursuant to such Permitted Debt Exchange Offer, then the Borrowers shall exchange Term Loans subject to such Permitted Debt Exchange Offer tendered by such Lenders ratably up to such maximum amount based on the respective principal amounts so tendered, (v) all documentation in respect of such Permitted Debt Exchange shall be consistent with the foregoing, and all written communications generally directed to the Lenders in connection therewith shall be in form and substance consistent with the foregoing and made in consultation with the Borrowers and the Exchange Agent and (vi) any applicable Minimum Tender Condition (as defined below) shall be satisfied.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to all Permitted Debt Exchanges effected by the Borrowers pursuant to this <u>Section</u> <u>2.20</u>, (i) such Permitted Debt Exchanges (and the cancellation of the exchanged Term Loans in connection therewith) shall not constitute voluntary or mandatory payments or prepayments for purposes of <u>Section</u> <u>2.05(a)</u> or <u>(b)</u>, and (ii) such Permitted Debt Exchange Offer shall be made for not less than $5,000,000 (or the equivalent Dollar Amount) in aggregate principal amount of Term Loans; *provided* that subject to the foregoing <u>clause (ii)</u> the Borrower Representative may at its election specify as a condition (a "**Minimum Tender Condition**") to consummating any such Permitted Debt Exchange that a minimum amount (to be determined and specified in the relevant Permitted Debt Exchange Offer in the Borrowers' discretion) of Term Loans of any or all applicable classes be tendered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with each Permitted Debt Exchange, the Borrower Representative and the Exchange Agent shall mutually agree to such procedures as may be necessary or advisable to accomplish the purposes of this <u>Section</u> <u>2.20</u> and without conflict with <u>Section</u> <u>2.20(d)</u>; *provided* that the terms of any Permitted Debt Exchange Offer shall provide that the date by which the relevant Lenders are required to indicate their election to participate in such Permitted Debt Exchange shall be not less than a reasonable period (in the discretion of the Borrower Representative and the Exchange Agent) of time following the date on which the Permitted Debt Exchange Offer is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Borrowers shall be responsible for compliance with, and hereby agree to comply with, all applicable securities and other laws and regulations in connection with each Permitted Debt Exchange, it being understood and agreed that (x) none of the Exchange Agent, the Administrative Agent nor any Lender assumes any responsibility in connection with the Borrowers' compliance with such laws and regulations in connection with any Permitted Debt Exchange (other than the Borrowers' reliance on any certificate delivered pursuant to <u>Section</u> <u>2.20(a)</u> above for which the such Lender shall bear sole responsibility) and (y) each Lender shall be solely responsible for its compliance with any applicable "insider trading" laws and regulations to which such Lender may be subject under the Exchange Act, and/or other applicable securities laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the Exchange Agent is not the Administrative Agent, the actions authorized to be taken by the Exchange Agent herein shall be done in consultation with the Administrative Agent and, with respect to the preparation of any documentation necessary or appropriate to carry out the provisions of this <u>Section</u> <u>2.20</u>, any comments to such documentation reasonably requested by the Administrative Agent shall be reflected therein.

Section 2.21 <u>Alternative Rate of Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to <u>Section</u> <u>2.22</u>, if prior to the commencement of any Interest Period for a SOFR Borrowing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Administrative Agent determines in good faith and in its reasonable discretion (which determination shall be deemed presumptively correct absent manifest error) that adequate and reasonable means do not exist for ascertaining Term SOFR for such Interest Period; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Administrative Agent is advised in writing by the Required Lenders that Term SOFR for such Interest Period will not adequately and fairly reflect the cost to such Lenders of making or maintaining their Loans included in such Borrowing for such Interest Period;

then the Administrative Agent shall give written notice thereof to the Borrower Representative and the Lenders as promptly as practicable thereafter and, until the Administrative Agent notifies the Borrowers and the Lenders that the circumstances giving rise to such notice no longer exist (which notice shall be delivered by the Administrative Agent promptly after such situation ceases to exist), (i) any Committed Loan Notice that requests the conversion of any Borrowing to, or continuation of any Borrowing as a SOFR Borrowing shall be ineffective, and (ii) if any Committed Loan Notice requests a SOFR Borrowing, such Borrowing shall be made as Base Rate Loans; *provided* that the Borrower Representative may revoke any such Committed Loan Notice (without penalty) prior to such Borrowing upon written notice to the Administrative Agent.

Section 2.22 <u>Effect of Benchmark Transition Event</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Benchmark Replacement</u>*.* Notwithstanding anything to the contrary herein or in any other Loan Document, if a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred prior any setting of the then-current Benchmark, then (x) if a Benchmark Replacement is determined in accordance with <u>clause (a)</u> of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document, and (y) if a Benchmark Replacement is determined in accordance with <u>clause (b)</u> of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of any Benchmark setting at or after 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the Administrative Agent has posted such proposed amendment to all affected Lenders and the Borrowers so long as the Administrative Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Required Lenders. No replacement of a Benchmark with a Benchmark Replacement pursuant to this <u>Section</u> <u>2.22(a)</u> will occur prior to the applicable Benchmark Transition Start Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Benchmark Replacement Conforming Changes</u>. In connection with the use, administration, adoption or implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes (subject to consultation rights of the Borrower Representative set forth in the definition thereof) from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notices; Standards for Decisions and Determinations</u>. The Administrative Agent will promptly notify the Borrower Representative and the Lenders of (i) the implementation of any Benchmark Replacement or Early Opt-in Election, (ii) the effectiveness of any Benchmark Replacement Conforming Changes, (iii) the removal, addition or reinstatement of any tenor of a Benchmark pursuant to <u>clause (d)</u> below and (iv) the commencement or conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this <u>Section</u> <u>2.22</u>, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this <u>Section</u> <u>2.22</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Unavailability of Tenor of Benchmark</u>. Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate (including the Term SOFR Reference Rate) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion (in consultation with the Borrower Representative) or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is not or will not be representative, then the Administrative Agent may modify the definition of "Interest Period" (or any similar or analogous definition) for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor, (ii) if a tenor that was removed pursuant to <u>clause (i)</u> above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is not or will not be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may (in consultation with the Borrower Representative) modify the definition of "Interest Period" (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor and (iii) if a new tenor for the then-current Benchmark is displayed on a screen or other information service selected by the Administrative Agent in its reasonable discretion (in consultation with the Borrower Representative), then the Administrative Agent may (in consultation with the Borrower Representative) modify the definition of "Interest Period" (or any similar or analogous definition) for all Benchmark settings at or after such time to add such new tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Benchmark Unavailability Period</u>. Upon the Borrower Representative's receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower Representative may revoke any request for a SOFR Borrowing of, conversion to or continuation of SOFR Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the applicable Borrowers will be deemed to have converted any such request into a request for a Borrowing of or conversion to Base Rate Loans. During any Benchmark Unavailability Period or at any time that a tenor for the

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then-current Benchmark is not an Available Tenor, the component of Base Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of Base Rate.

**ARTICLE III** 

**TAXES, INCREASED COSTS PROTECTION AND ILLEGALITY** 

Section 3.01 <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any and all payments by or on account of any obligation of the Borrowers or any other Loan Party hereunder or under any other Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable Law. If any applicable Law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from or in respect of any such payment, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable Law and, if such Tax is an Indemnified Tax, the sum payable by the applicable Loan Party shall be increased as necessary so that after all such deductions or withholdings for Indemnified Taxes have been made (including such deductions and withholdings for Indemnified Taxes applicable to additional sums payable under this <u>Section</u> <u>3.01</u>) the Administrative Agent (for amounts paid to the Administrative Agent in its own right) or Lender receives an amount equal to the sum it would have received had no such deduction or withholding for Indemnified Taxes been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition but without duplication, the Loan Parties shall timely pay to the relevant Governmental Authority in accordance with applicable Law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Without duplication of amounts paid pursuant to <u>Section</u> <u>3.01(a)</u> or <u>Section</u> <u>3.01(b)</u>, the Loan Parties shall jointly and severally indemnify each Recipient, within 30 days after written demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this <u>Section</u> <u>3.01</u>) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable out-of-pocket expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower Representative by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Lender shall severally indemnify, within 10 days after demand therefor, the Administrative Agent for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that any Loan Party has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting or expanding the obligation of the Loan Parties to do so), (ii) for any Taxes attributable to such Lender's

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failure to comply with the provisions of <u>Section</u> <u>10.07(m)</u> relating to the maintenance of a Participant Register and (iii) for any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent or a Loan Party, as applicable, in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph (d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Within 30 days after any payment of Taxes by any Loan Party to a Governmental Authority pursuant to this <u>Section</u> <u>3.01</u>, such Loan Party shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If any Recipient determines, in its sole discretion exercised in good faith, that it has received a refund of any Indemnified Taxes as to which it has been indemnified pursuant to this <u>Section</u> <u>3.01</u> (including by the payment of additional amounts pursuant to this <u>Section</u> <u>3.01</u>), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this <u>Section</u> <u>3.01</u> with respect to the Indemnified Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall promptly repay to such indemnified party the amount paid over pursuant to this <u>clause (f)</u> (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this clause (f), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this <u>clause (f)</u> the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This <u>clause (f)</u> shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) [Reserved].

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) (i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to any payments made under any Loan Document shall deliver to the Borrower Representative and the Administrative Agent, at the time or times reasonably requested by the Borrower Representative or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower Representative or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower Representative or the Administrative Agent, shall deliver such other documentation prescribed by applicable Law or reasonably requested by the Borrower Representative or the Administrative Agent as will enable the Borrower Representative or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in <u>Section</u> <u>3.01(h)(ii)(A)</u>, <u>(ii)(B)</u>, <u>(ii)(D)</u> and <u>(ii)(E)</u> below) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the generality of the foregoing,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Lender that is a U.S. Person shall deliver to the Borrowers and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower Representative or the Administrative Agent) copies of executed IRS Form W-9 (or any successor form) certifying that such Lender is exempt from U.S. federal backup withholding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Non-U.S. Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower Representative and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such NonU.S. Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower Representative or the Administrative Agent), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the case of a Non-U.S. Lender claiming the benefits of an income tax treaty to which the United States is a party, (x) with respect to payments of interest under any Loan Document, copies of executed IRS Form W- 8BEN or IRS Form W-8BEN-E (or any successor forms) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or IRS Form W-8BEN- E (or any successor forms) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) copies of executed IRS Form W-8ECI (or any successor form);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) in the case of a Non-U.S. Lender claiming the benefits of the exemption for portfolio interest under Section 871(h) or Section 881(c) of the Code, (x) a certificate substantially in the form of <u>Exhibit I-1</u> to the effect that such Non-U.S. Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, a "10 percent shareholder" of a Borrower within the meaning of Section 881(c)(3)(B) of the Code or a "controlled foreign corporation" related to a Borrower as described in Section 881(c)(3)(C) of the Code (a "**U.S. Tax Compliance Certificate**") and (y) copies of executed IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable (or any successor form); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) to the extent a Non-U.S. Lender is not the beneficial owner (*e.g.*, where the Non-U.S. Lender is a partnership or a participating Lender), copies of executed IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit I-2</u> or <u>Exhibit I-3</u>, IRS Form W-9, and/or other certification documents (or any applicable successor forms) from each beneficial owner, as applicable; *provided* that if the Non-U.S. Lender is a partnership (and not a participating Lender) and one or more direct or indirect partners of such NonU.S. Lender are claiming the portfolio interest exemption, such Non-U.S. Lender shall provide a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit I-4</u> on behalf of each such direct and indirect partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Non-U.S. Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower Representative or the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such NonU.S. Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower Representative or the Administrative Agent), copies of any other executed form prescribed by applicable Law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable Law to permit the Borrower Representative or the Administrative Agent to determine the withholding or deduction required to be made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) each Recipient shall deliver to the Borrower Representative and the Administrative Agent at the time or times prescribed by Law and at such time or times reasonably requested by the Borrower Representative or the Administrative Agent such documentation prescribed by applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower Representative or the Administrative Agent as may be necessary for the Borrower Representative and the Administrative Agent to (i) comply with their obligations under FATCA and (ii) determine whether such Recipient has complied with such Recipient's obligations under FATCA or to determine the amount, if any, to deduct and withhold from such payment. Solely for purposes of this <u>clause (D)</u>, "FATCA" shall include any amendments made to FATCA after the date of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) the Administrative Agent, and any successor or supplemental Administrative Agent, shall deliver to the Borrower Representative (in such number of copies as shall be requested by the recipient) on or prior to the date on which the Administrative Agent becomes the administrative agent hereunder or under any other Loan Document (and from time to time thereafter upon the reasonable request of the Borrower Representative) copies of either executed (i) IRS Form W-9 (or any successor form) or (ii) a U.S. branch withholding certificate on IRS Form W-8IMY (or any successor form) evidencing its agreement with the Borrowers to be treated as a U.S. person (with respect to amounts received on account of any Lender) and IRS Form W-8ECI (with respect to amounts received on its own account), with the effect that, in either case, the Borrowers will be entitled to make payments hereunder to the Administrative Agent without withholding or deduction on account of U.S. federal withholding Tax.

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Each Recipient agrees that if any documentation it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall promptly update such documentation and deliver a copy thereof to the Borrower Representative and the Administrative Agent or promptly notify the Borrower Representative and the Administrative Agent in writing of its legal ineligibility to do so.

Each Lender hereby authorizes the Administrative Agent to deliver to the Loan Parties and to any successor Administrative Agent any documentation provided by such Lender to the Administrative Agent pursuant to <u>Section</u> <u>3.01(h)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The agreements in this <u>Section</u> <u>3.01</u> shall survive the resignation and/or replacement of the Administrative Agent, any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all other Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) For the avoidance of doubt, the term "Lender" shall, for purposes of this <u>Section</u> <u>3.01</u>, include any L/C Issuer, and the term "applicable Law" includes FATCA .

Section 3.02 <u>[Reserved]</u>.

Section 3.03 <u>Illegality</u>. If any Lender reasonably determines that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for such Lender or its applicable Lending Office to make, maintain or fund Loans whose interest is determined by reference to SOFR, or the Term SOFR Reference Rate, or to determine or charge interest based upon SOFR, the Term SOFR Reference Rate, or Term SOFR, then, upon written notice thereof by such Lender to the Borrower Representative (through the Administrative Agent) (an "<u>Illegality Notice</u>"), (i) any obligation of such Lender to make SOFR Loans, and any right of the Borrowers to continue SOFR Loans or to convert Base Rate Loans to SOFR Loans made by such Lender, shall be suspended, and (ii) the interest rate on which such Lender's Base Rate Loans shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to <u>clause (c)</u> of the definition of "Base Rate", in each case until such Lender notifies the Administrative Agent and the Borrower Representative that the circumstances giving rise to such determination no longer exist. Upon receipt of an Illegality Notice, the Borrowers shall, if necessary to avoid such illegality, upon demand from such Lender providing such Illegality Notice (with a copy to the Administrative Agent), convert all such Lender's SOFR Loans to Base Rate Loans (the interest rate on which Base Rate Loans shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to <u>clause (c)</u> of the definition of "Base Rate"), on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such SOFR Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such SOFR Loans to such day, in each case until the Administrative Agent is advised in writing by such Lender that it is no longer illegal for such Lender to determine or charge interest rates based upon SOFR, the Term SOFR Reference Rate, or Term SOFR. Upon any such conversion, the applicable Borrower shall also pay accrued interest on the amount so converted.

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Section 3.04 <u>[Reserved]</u>.

Section 3.05 <u>Increased Cost and Reduced Return; Capital Adequacy and Liquidity Requirements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If any Lender reasonably determines that as a result of the introduction of or any change in or in the interpretation of any Law, in each case after the date hereof, or such Lender's compliance therewith, there shall be any material increase in the cost to such Lender of agreeing to make or making, funding or maintaining any Loan the interest on which is determined by reference to the Term SOFR or issuing or participating in Letters of Credit, or a material reduction in the amount received or receivable by such Lender in connection with any of the foregoing (including Taxes on or in respect of its loans, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto, but excluding for purposes of this <u>Section</u> <u>3.05(a)</u> any such increased costs or reduction in amount resulting from (i) Indemnified Taxes, (ii) Taxes described in <u>clauses (b)</u> through <u>(e)</u> of the definition of Excluded Taxes or (iii) Other Connection Taxes that are imposed on or measured by net income (however denominated), or that are franchise Taxes or branch profits Taxes)), then within 15 days after demand of such Lender setting forth in reasonable detail such increased costs, the applicable Borrowers shall pay to such Lender such additional amounts as will compensate such Lender for such increased cost or reduction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any Lender reasonably determines that the introduction of any Law regarding capital adequacy and liquidity requirements or any change therein or in the interpretation thereof, in each case after the date hereof, or compliance by such Lender (or its Lending Office) therewith, has the effect of materially reducing the rate of return on the capital of such Lender or any corporation controlling such Lender as a consequence of such Lender's obligations hereunder (taking into consideration its policies with respect to capital adequacy and liquidity and such Lender's desired return on capital), then within 15 days after demand of such Lender setting forth in reasonable detail the charge and the calculation of such reduced rate of return, the applicable Borrowers shall pay to such Lender such additional amounts as will compensate such Lender for such reduction. Notwithstanding the foregoing, this paragraph (b) will not apply to Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The applicable Borrowers shall pay to each Lender, (i) as long as such Lender shall be required to maintain reserves or liquidity with respect to liabilities or assets consisting of or including Term SOFR funds or deposits, additional interest on the unpaid principal amount of each SOFR Loan equal to the actual costs of such reserves or liquidity allocated to such Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive in the absence of manifest error), and (ii) as long as such Lender shall be required to comply with any liquidity requirement, reserve ratio requirement or analogous requirement of any other central banking or financial regulatory authority imposed in respect of the maintenance of the Commitments or the funding of the

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SOFR Loans, such additional costs (expressed as a percentage per annum and rounded upwards, if necessary, to the nearest five decimal places) equal to the actual costs allocated to such Commitment or Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive absent manifest error) which in each case shall be due and payable on each date on which interest is payable on such Loan; *provided* the applicable Borrowers shall have received at least 15 days' prior written notice (with a copy to the Administrative Agent) of such additional interest or cost from such Lender. If a Lender fails to give written notice 15 days prior to the relevant Interest Payment Date, such additional interest or cost shall be due and payable 15 days from receipt of such written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For purposes of this <u>Section</u> <u>3.05</u>, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, regulations, guidelines or directives thereunder or issued in connection therewith and (ii) all requests, rules, guidelines, requirements and directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities (other than foreign regulatory authorities in Switzerland), in each case pursuant to Basel III, shall, in each case, be deemed to have gone into effect after the date hereof, regardless of the date enacted, adopted or issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding any other provision of this <u>Section</u> <u>3.05</u>, no Lender shall demand compensation for any increased cost or reduction pursuant to this <u>Section</u> <u>3.05</u> if it shall not at the time be the general policy or practice of such Lender to demand such compensation in similar circumstances under comparable provisions of other credit agreements governing indebtedness of similarly situated borrowers.

Section 3.06 <u>[Reserved]</u>.

Section 3.07 <u>Matters Applicable to All Requests for Compensation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A certificate of any Agent or any Lender claiming compensation under this <u>Article III</u> and setting forth in reasonable detail a calculation of the additional amount or amounts to be paid to it hereunder shall be conclusive in the absence of manifest error. In determining such amount, such Agent or such Lender may use any reasonable averaging and attribution methods. With respect to any Recipient's claim for compensation under <u>Section</u> <u>3.03</u>, <u>3.04</u> or <u>3.05</u>, the Loan Parties shall not be required to compensate such Recipient for any amount incurred more than 180 days prior to the date that such Recipient notifies the Borrower Representative of the event that gives rise to such claim; *provided* that, if the circumstance giving rise to such claim is retroactive, then such 180-day period referred to above shall be extended to include the period of retroactive effect thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any Lender requests compensation under <u>Section</u> <u>3.05</u>, or any of the Borrowers are required to pay any additional amount to any Lender, any L/C Issuer, or any Governmental Authority for the account of any Lender or any L/C Issuer pursuant to <u>Section</u> <u>3.01</u>, or if any Lender gives a notice pursuant to <u>Section</u> <u>3.03</u>, then such Lender or the L/C Issuer, as applicable, will, if requested by the Borrower Representative and at the applicable Borrowers' expense, use commercially reasonable efforts to designate another

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Lending Office for any Loan or Letter of Credit affected by such event; *provided* that such efforts (i) would eliminate or reduce amounts payable pursuant to <u>Section</u> <u>3.01</u> or <u>3.05</u>, as applicable, in the future and (ii) would not, in the reasonable judgment of such Lender or such L/C Issuer, as applicable, be disadvantageous in any material legal, economic or regulatory respect to such Lender or its Lending Office or such L/C Issuer. The provisions of this <u>clause (b)</u> shall not affect or postpone any applicable Obligations of the applicable Borrowers or rights of such Lender pursuant to <u>Sections 3.01</u> and <u>3.05</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any Lender requests compensation by any of the Borrowers under <u>Section</u> <u>3.05</u>, the applicable Borrowers may, by notice to such Lender (with a copy to the Administrative Agent), suspend the obligation of such Lender to make or continue from one Interest Period to another SOFR Loans, or to convert Base Rate Loans into SOFR Loans, until the event or condition giving rise to such request ceases to be in effect (in which case the provisions of <u>Section</u> <u>3.07(e)</u> shall be applicable); *provided* that such suspension shall not affect the right of such Lender to receive the compensation so requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the obligation of any Lender to make or continue from one Interest Period to another any SOFR Loan, or to convert Base Rate Loans into SOFR Loans shall be suspended pursuant to <u>Sections 3.03, 3.05</u> or <u>3.07(c)</u> hereof, such Lender's SOFR Loans shall be automatically converted into Base Rate Loans on the last day(s) of the then current Interest Period(s) for such SOFR Loans (or, in the case of an immediate conversion required by <u>Section</u> <u>3.03</u>, on such earlier date as required by Law) and, unless and until such Lender gives notice as provided below that the circumstances specified in <u>Section</u> <u>3.03</u>, <u>3.04</u> or <u>3.05</u> hereof that gave rise to such conversion no longer exist:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the extent that such Lender's SOFR Loans have been so converted, all payments and prepayments of principal that would otherwise be applied to such Lender's SOFR Loans shall be applied instead to its Base Rate Loans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all Loans that would otherwise be made or continued from one Interest Period to another by such Lender as SOFR Loans shall be made or continued instead as Base Rate Loans, and all Base Rate Loans of such Lender that would otherwise be converted into SOFR Loans shall remain as Base Rate Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If any Lender gives notice to the Borrower Representative (with a copy to the Administrative Agent) that the circumstances specified in <u>Section</u> <u>3.03</u>, <u>3.04</u> or <u>3.05</u> hereof that gave rise to the conversion of such Lender's SOFR Loans pursuant to this <u>Section</u> <u>3.07</u> no longer exist (which such Lender agrees to do promptly upon such circumstances ceasing to exist) at a time when SOFR Loans made by other Lenders are outstanding, such Lender's Base Rate Loans shall be automatically converted, on the first day(s) of the next succeeding Interest Period(s) for such outstanding SOFR Loans, to the extent necessary so that, after giving effect thereto, all Loans held by the Lenders holding SOFR Loans and by such Lender are held pro rata (as to principal amounts, interest rate basis, and Interest Periods) in accordance with their respective Commitments.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) A Lender shall not be entitled to any compensation pursuant to the foregoing sections to the extent such Lender is not imposing such charges or requesting such compensation from borrowers (similarly situated to the applicable Borrowers hereunder) under comparable syndicated credit facilities.

Section 3.08 <u>Replacement of Lenders Under Certain Circumstances</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If at any time (i) any Loan Party becomes obligated to pay additional amounts or indemnity payments described in <u>Section</u> <u>3.01</u>, <u>3.04</u> or <u>Section</u> <u>3.05</u> as a result of any condition described in such Sections or any Lender ceases to make SOFR Loans as a result of any condition described in <u>Section</u> <u>3.03</u>, (ii) any Lender becomes a Defaulting Lender or (iii) any Lender becomes a Non-Consenting Lender (as defined below in this <u>Section</u> <u>3.08</u>) (collectively, a "**Replaceable Lender**"), then such Loan Party may, on three Business Days' prior written notice from the Loan Party to the Administrative Agent and such Lender (for the avoidance of doubt, such notice shall be deemed provided on the same day that an amendment or waiver is posted to the Lenders for consent), either (i) replace such Lender by causing such Lender to (and such Lender shall be obligated to) assign pursuant to <u>Section</u> <u>10.07(b)</u> (with the assignment fee to be paid by the Loan Party in such instance unless waived by the Administrative Agent) all of its rights and obligations under this Agreement (or, in the case of a Non-Consenting Lender, all of its rights and obligations under this Agreement with respect to the Facility or Facilities for which its consent is required) to one or more Eligible Assignees; *provided* that neither the Administrative Agent nor any Lender shall have any obligation to the Loan Party to find a replacement Lender or other such Person or (ii) so long as no Default or Event of Default shall have occurred and be continuing, terminate the Commitment of such Lender or L/C Issuer, as the case may be, and (1) in the case of a Lender (other than an L/C Issuer), repay all Obligations of the Loan Party owing (and the amount of all accrued interest and fees in respect thereof) to such Lender relating to the Loans and participations held by such Lender as of such termination date and (2) in the case of an L/C Issuer, repay all obligations of the Loan Party owing to such L/C Issuer relating to the Loans and participations held by such L/C Issuer as of such termination date and cancel or backstop on terms satisfactory to such L/C Issuer any Letters of Credit issued by it; *provided* that (i) in the case of any such replacement of, or termination of Commitments with respect to a Non-Consenting Lender such replacement or termination shall be sufficient (together with all other consenting Lenders including any other replacement Lender) to cause the adoption of the applicable modification, waiver or amendment of the Loan Documents and (ii) in the case of any such replacement as a result of the Loan Party having become obligated to pay amounts described in <u>Section</u> <u>3.01</u> or <u>3.05</u>, such replacement would eliminate or reduce payments pursuant to <u>Section</u> <u>3.01</u> or <u>3.05</u>, as applicable, in the future. Any Lender being replaced pursuant to this <u>Section</u> <u>3.08(a)</u> shall (i) execute and deliver an Assignment and Assumption with respect to such Lender's Commitment and outstanding Loans and participations in L/C Obligations and (ii) deliver any Notes evidencing such Loans to the Loan Party or the Administrative Agent (for return to the Loan Party). Pursuant to such Assignment and Assumption, (A) the assignee Lender shall acquire all or a portion, as the case may be, of the assigning Lender's Commitment and outstanding Loans and participations in L/C Obligations, (B) all Obligations relating to the Loans and participations (and the amount of all accrued interest, fees and premiums in respect thereof)

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so assigned shall be paid in full by the assignee Lender to such assigning Lender concurrently with such assignment and assumption and (C) upon such payment and, if so requested by the assignee Lender, the assigning Lender shall deliver to the assignee Lender the applicable Note or Notes executed by the Loan Party, the assignee Lender shall become a Lender hereunder and the assigning Lender shall cease to constitute a Lender hereunder with respect to such assigned Loans, Commitments and participations, except with respect to indemnification provisions under this Agreement, which shall survive as to such assigning Lender. In connection with any such replacement, if any such Replaceable Lender does not execute and deliver to the Administrative Agent a duly executed Assignment and Assumption reflecting such replacement within two Business Days of the date on which the assignee Lender executes and delivers such Assignment and Assumption to such Replaceable Lender, then such Replaceable Lender shall be deemed to have executed and delivered such Assignment and Assumption without any action on the part of the Replaceable Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary contained above, (i) any Lender that acts as an L/C Issuer may not be replaced hereunder at any time that it has any Letter of Credit outstanding hereunder unless arrangements satisfactory to such L/C Issuer (including the furnishing of a back-up standby letter of credit in form and substance, and issued by an issuer reasonably satisfactory to such L/C Issuer or the depositing of Cash Collateral into a cash collateral account in amounts and pursuant to arrangements consistent with the requirements of <u>Section</u> <u>2.16</u>) have been made with respect to such outstanding Letter of Credit and (ii) the Lender that acts as the Administrative Agent may not be replaced hereunder except in accordance with the terms of <u>Section</u> <u>9.09</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that (i) the Borrower Representative or the Administrative Agent has requested the Lenders to consent to a waiver of any provisions of the Loan Documents or to agree to any amendment or other modification thereto, (ii) the waiver, amendment or modification in question requires the agreement of all affected Lenders in accordance with the terms of <u>Section</u> <u>10.01</u> or all the Lenders with respect to a certain class of the Loans and (iii) the Required Lenders or Majority Lenders of the applicable class, as applicable, have agreed to such waiver, amendment or modification, then any Lender who does not agree to such waiver, amendment or modification, in each case, shall be deemed a "**Non-Consenting Lender**"; *provided*, that the term "NonConsenting Lender" shall also include (x) any Lender that rejects (or is deemed to reject) an Extension under <u>Section</u> <u>2.19</u>, which Extension has been accepted by at least the Majority Lenders of the respective Tranche of Loans whose Loans and/or Commitments are to be extended pursuant to such Extension, (y) any Lender that does not elect to become a lender in respect of any Specified Refinancing Debt pursuant to <u>Section</u> <u>2.18</u> and (z) any Revolving Credit Lender for which the Borrowers determine in good faith that they will not be able to provide the documentation or other information pursuant to clause (g)(y) of the definition of "Permitted Change of Control" that such Revolving Credit Lender reasonably believes is required by regulatory authorities with respect to the New Sponsor, its subsidiaries or its acquisition vehicle under applicable "know your customer", anti-money laundering, beneficial ownership rules and regulations, and leveraged lending regulatory requirements, including adequate debt repayment capacity. For the avoidance of doubt, if any applicable Lender shall be deemed a Non-Consenting Lender and is required to assign all or any portion of

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its Closing Date Term Loans or its Closing Date Term Loans are prepaid by the Borrowers, pursuant to <u>Section</u> <u>3.08(a)</u> prior to the six-month anniversary of the Closing Date in connection with any such waiver, amendment or modification constituting a Repricing Event, the Borrowers shall pay such Non-Consenting Lender the fee required under <u>Section</u> <u>2.05(a)(iii)</u> on the Closing Date Term Loans so assigned or prepaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Survival</u>. All of the Loan Parties' obligations under this <u>Article III</u> shall survive termination of the Aggregate Commitments and repayment of all other Obligations hereunder, any assignment by or replacement of a Lender and any resignation or removal of the Administrative Agent.

**ARTICLE IV** 

**CONDITIONS PRECEDENT TO CREDIT EXTENSIONS** 

Section 4.01 <u>Conditions to the Initial Credit Extension on the Closing Date</u>. The obligation of each Lender to make its initial Credit Extension hereunder and of each L/C Issuer to issue Letters of Credit hereunder on the Closing Date is subject to satisfaction or due waiver in accordance with <u>Section</u> <u>10.01</u> of each of the following conditions precedent, except as otherwise agreed among the Borrowers and the Arrangers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent's receipt of the following, each of which may be originals, facsimiles or copies in .pdf format, unless otherwise specified:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) executed counterparts of (A) this Agreement from the Holding Companies and the Borrowers, (B) the Holdings Guaranty from the Holding Companies, and (C) the Subsidiary Guaranty from the Borrowers and each Subsidiary Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Security Agreement, duly executed by the Holding Companies, the Borrowers and each Subsidiary Guarantor, together with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) to the extent required to be pledged under the terms of the Security Agreement, satisfactory arrangements for the delivery of certificates, if any, representing the Equity Interests in the Borrowers and Borrowers' wholly owned material U.S. Subsidiaries, accompanied by undated stock powers executed in blank (or stock transfer forms, as applicable) and instruments evidencing the Pledged Debt indorsed in blank (or instrument of transfer, as applicable); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) copies of proper financing statements, filed or duly prepared for filing under the Uniform Commercial Code in all United States jurisdictions that the Collateral Agent may deem reasonably necessary in order to perfect and protect the Liens on assets of each Loan Party created under the Security Agreement, covering the Collateral described in the Security Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a Note executed by the applicable Borrowers in favor of each Lender requesting a Note reasonably in advance of the Closing Date;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a Committed Loan Notice and a Letter of Credit Application, if applicable, in each case relating to the initial Credit Extension;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) a solvency certificate executed by a senior officer of the Borrower Representative (after giving effect to the Transactions) substantially in the form attached hereto as <u>Exhibit L</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) (A) certificates of good standing (to the extent such concept exists in such jurisdiction) from the secretary of state or other applicable office of the state of organization or formation of the Loan Parties (other than as permitted by <u>Section</u> <u>6.16</u>), and (B) a certificate from a Responsible Officer of each Loan Party certifying that attached thereto is (I) a copy of the Organization Documents of such Loan Party, (II) a copy of the resolutions or other action of the Board of Directors of such Loan Party approving the execution and performance of the Loan Documents to which such Loan Party is a party and (III) a customary incumbency certificate of Responsible Officers of such Loan Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) opinions of Ropes & Gray LLP, counsel to Loan Parties with respect to New York, Delaware, Massachusetts, California and federal law, and Troutman Pepper Locke LLP, counsel to Loan Parties with respect to Connecticut law, in each case, addressed to each Secured Party, in form and substance reasonably satisfactory to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) a certificate of a Responsible Officer of the Borrower Representative certifying that the conditions set forth in <u>Section</u> <u>4.01(e)</u> and <u>Section</u> <u>4.02(a)</u> and <u>(b)</u> have been satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent and the Arrangers shall have received at least three (3) Business Days prior to the Closing Date all documentation and other information about the Borrowers and the Guarantors that shall have been reasonably requested by the Administrative Agent or the Arrangers in writing at least ten (10) Business Days prior to the Closing Date that the Administrative Agent and the Arrangers reasonably determine is required by applicable regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including the PATRIOT Act. At least three (3) Business Days before the Closing Date, if a Borrower qualifies as a "legal entity customer" under the Beneficial Ownership Regulation then the applicable Borrower shall have delivered to the Administrative Agent a certification in relation to such Borrowers regarding individual beneficial ownership solely to the extent required by the Beneficial Ownership Regulation and requested by the Administrative Agent or the Arrangers in writing at least ten (10) Business Days prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All fees required to be paid on the Closing Date pursuant to the Fee Letter or otherwise agreed in connection with the initial Facilities and reasonable out-of-pocket expenses required to be paid on the Closing Date, to the extent invoiced (in the case of expenses) at least three (3) Business Days prior to the Closing Date (except as otherwise agreed to by the Borrowers), shall, substantially concurrently with the initial Borrowing of the Initial Term Loans, have been paid (which amounts may, at the Borrowers' option, be offset against the proceeds of the Facilities).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Closing Date Refinancing shall have been, or shall substantially concurrently with the initial Credit Extension made hereunder on the Closing Date be, consummated.

Without limiting the generality of the provisions of <u>Section</u> <u>9.03</u>, for purposes of determining compliance with the conditions specified in this <u>Section</u> <u>4.01</u>, each Lender as of the Closing Date shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required hereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received written notice from such Lender prior to the Closing Date specifying its objection thereto.

Section 4.02 <u>Conditions to All Credit Extensions</u> . The obligation of each Lender to honor any Request for Credit Extension (other than a Delayed Draw Term Loan, a Committed Loan Notice requesting only a conversion of Loans to the other Type, or a continuation of SOFR Loans or Alternative Currency Term Rate Loans) is subject to the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions in <u>Section</u> <u>1.02(i)</u>, the representations and warranties of the Borrowers and each other Loan Party contained in <u>Article V</u> or any other Loan Document shall be true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) on and as of the date of such Credit Extension, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) as of such earlier date, and except that for purposes of this <u>Section</u> <u>4.02</u>, the representations and warranties contained in <u>Sections 5.05(a)</u> and <u>(b)</u> shall be deemed to refer to the most recent financial statements furnished pursuant to <u>Sections 6.01(a)</u> and <u>(b)</u>, respectively, prior to such proposed Credit Extension.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to the provisions in <u>Section</u> <u>1.02(i)</u>, no Default or Event of Default shall exist, or would result from such proposed Credit Extension or from the application of the proceeds therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent and, if applicable, the L/C Issuer shall have received a Request for Credit Extension in accordance with the requirements hereof.

Each Request for Credit Extension (other than a Committed Loan Notice requesting only a conversion of Loans to the other Type or a continuation of SOFR Loans or Alternative Currency Term Rate Loans) submitted by the Borrower Representative shall be deemed to be a representation and warranty that the conditions specified in <u>Sections 4.02(a)</u> and <u>(b)</u> have been satisfied (unless waived) on and as of the date of the applicable Credit Extension.

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Section 4.03 <u>Conditions to Borrowings of Delayed Draw Term Loans</u>. The obligation of each Lender to honor any Request for Credit Extension with respect to a Borrowing of Delayed Draw Term Loans is subject solely to the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions in <u>Section</u> <u>1.02(i)</u>, the representations and warranties of the Borrowers and each other Loan Party contained in Article V or any other Loan Document shall be true and correct in all material respects on and as of the date of such Borrowing; *provided* that, to the extent that such representations and warranties specifically refer to an earlier date, they shall be true and correct in all material respects as of such earlier date; *provided*, *further*, that any representation and warranty that is qualified as to "materiality," "Material Adverse Effect" or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to the provisions in <u>Section</u> <u>1.02(i)</u>, as of the date of such Borrowing, no Event of Default shall have occurred and be continuing on such date (immediately prior to giving effect to the extensions of credit requested to be made) or would result after giving effect to the extensions of credit requested to be made on such date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to the provisions in <u>Section</u> <u>1.02(i)</u>, as of the date of such Borrowing, after the incurrence of such Delayed Draw Term Loans on a Pro Forma Basis and excluding the cash proceeds to the Borrowers therefrom, the Consolidated First Lien Net Leverage Ratio does not exceed 6.00:1.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent shall have received a Committed Loan Notice in accordance with the requirements of <u>Section</u> <u>2.02(a)</u> (or such later time or date as the Administrative Agent may agree).

Notwithstanding anything to the contrary set forth herein, the provisions of this <u>Section</u> <u>4.03</u> may be amended or waived as provided in <u>Section</u> <u>10.01(k)</u> with only the consent of the Required Delayed Draw Lenders. Each Request for Credit Extension for a Delayed Draw Term Loan submitted by the Borrower Representative shall be deemed to be a representation and warranty that the conditions specified in <u>Sections 4.03(a), (b) and (c)</u> have been satisfied (unless waived) on and as of the date of the applicable Credit Extension.

**ARTICLE V** 

**REPRESENTATIONS AND WARRANTIES** 

Each of the Holding Companies (solely with respect to <u>Sections 5.01</u>, <u>5.02</u>, <u>5.03</u>, <u>5.04</u>, <u>5.08</u>, <u>5.12</u>, <u>5.13</u>, <u>5.14</u>, <u>5.18</u>, <u>5.19</u> and <u>5.20</u>) and the Borrowers represents and warrants, in each case after giving effect to the Transactions, to the Administrative Agent, Collateral Agent and the Lenders on the Closing Date and on each other date thereafter on which a Credit Extension is made, that:

Section 5.01 <u>Existence, Qualification and Power</u>. Each Loan Party and each of the Restricted Subsidiaries (subject, in the case of <u>clause (c)</u>, to the Legal Reservations and <u>Section</u> <u>5.03</u>) (a) is a Person duly organized, formed or incorporated, amalgamated or continued, validly existing and in good standing (to the extent such concept is applicable

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in the relevant jurisdiction) under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power and authority to (i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its obligations under the Loan Documents to which it is a party, (c) is duly qualified and is authorized to do business and in good standing (to the extent such concept is applicable in the relevant jurisdiction) under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification and (d) has all requisite governmental licenses, authorizations, consents and approvals to operate its business as currently conducted; except in each case referred to in <u>clause (a)</u> (other than with respect to a Borrower), <u>(b)(i)</u>, <u>(b)(ii)</u> (other than with respect to a Borrower), <u>(c)</u> and <u>(d)</u>, to the extent that any failure to be so or to have such would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

Section 5.02 <u>Authorization; No Contravention</u>. The execution, delivery and performance by each Loan Party of each Loan Document to which such Person is or is to be a party, (a) are within such Loan Party's corporate or other powers, have been duly authorized by all necessary corporate or other organizational action and (b) do not (i) contravene the terms of any of such Person's Organization Documents; or (ii) violate any Law; except in each case to the extent that such violation would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

Section 5.03 <u>Governmental Authorization</u>. No approval, consent, exemption, authorization or other action by, or notice to, or filing with, any Governmental Authority is necessary or required in connection with (a) the execution, delivery, performance by, or enforcement against, any Loan Party of this Agreement or any other Loan Document, or for the consummation of the Transactions, (b) the grant by any Loan Party of the Liens granted by it pursuant to the Collateral Documents or (c) the perfection or maintenance of the Liens created under the Collateral Documents, except for (w) filings and registrations necessary to perfect the Liens on the Collateral granted by the Loan Parties consisting of UCC financing statements and filings in the United States Patent and Trademark Office and the United States Copyright Office (subject to the Perfection Exceptions), (x) the approvals, consents, exemptions, authorizations, actions, notices and filings which have been duly obtained, taken, given or made and are in full force and effect, (y) those approvals, consents, exemptions, authorizations or other actions, notices or filings set out in the Collateral Documents and (z) those approvals, consents, exemptions, authorizations or other actions, notices or filings, the failure of which to obtain or make would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

Section 5.04 <u>Binding Effect</u>. This Agreement and each other Loan Document has been duly executed and delivered by each Loan Party (to the extent such concept is applicable in the relevant jurisdiction and subject, in each case, to the Legal Reservations and <u>Section</u> <u>5.03</u>) that is party thereto. Subject to the Legal Reservations, this Agreement and each other Loan Document constitutes, a legal, valid and binding obligation of such Loan Party, enforceable against each Loan Party that is party thereto in accordance with its terms.

Section 5.05 <u>Financial Statements; No Material Adverse Effect</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) After the Closing Date, the audited Consolidated financial statements of the Borrowers (or of the Holding Companies, any Parent Holding Company or Subsidiary of a Parent Holding Company allowed to be delivered pursuant to the terms hereof) and their respective Subsidiaries most recently delivered pursuant to <u>Section</u> <u>6.01(a)</u> fairly present in all material respects the Consolidated financial condition of the Borrowers (or of the Holding Companies, any Parent Holding Company or Subsidiary of a Parent Holding Company allowed to be delivered pursuant to the terms hereof) and their respective Subsidiaries as of the dates thereof and their results of operations for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; *provided*, that the Holding Companies, the Borrowers and the Restricted Subsidiaries make no representation or warranty with respect to any historical financial statements delivered in connection with any acquisition or Investment; *provided*, *that*, at the option of the Borrower Representative, the audited financial statements delivered for the fiscal years ending December 31, 2024 and December 31, 2025 may be consolidated financial statements of each Holding Company (or any Parent Holding Company or Subsidiary of a Parent Holding Company allowed to be delivered pursuant to the terms hereof) and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) After the Closing Date, the unaudited Consolidated financial statements of the Borrowers (or of the Holding Companies, any Parent Holding Company or Subsidiary of a Parent Holding Company allowed to be delivered pursuant to the terms hereof) and their respective Subsidiaries most recently delivered pursuant to <u>Section</u> <u>6.01(b)</u> (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, and (ii) fairly present in all material respects the Consolidated financial condition of the Borrowers (or of any Parent Holding Company or Subsidiary of a Parent Holding Company allowed to be delivered pursuant to the terms hereof) and their respective Subsidiaries as of the date thereof and their results of operations for the period covered thereby, subject to the absence of footnotes and to normal and recurring year-end audit adjustments; *provided*, that the Holding Companies and the Borrower Parties make no representation or warranty with respect to any historical financial statements delivered in connection with any acquisition or Investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Since the Closing Date, there has been no event or circumstance, either individually or in the aggregate, that has had or would reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Consolidated forecasted balance sheets, statements of income and statements of cash flows of the Borrowers (or of any Parent Holding Company or Subsidiary of a Parent Holding Company allowed to be delivered pursuant to the terms hereof) and their respective Subsidiaries most recently delivered pursuant to <u>Section</u> <u>6.01(c)</u> were prepared in good faith on the basis of the assumptions stated therein, which assumptions were reasonable in light of the conditions existing at the time of delivery of such forecasts; it being understood that no assurance can be given that any particular projections will be realized, actual results may vary from such forecasts and that such variations may be material.

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Section 5.06 <u>Litigation</u>. There are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of the Borrowers, threatened in writing, at law, in equity, in arbitration or before any Governmental Authority, against any Borrower Party, or against any of their properties or revenues that would reasonably be expected to have a Material Adverse Effect.

Section 5.07 <u>Use of Proceeds</u>. The (a) Borrowers will only use the proceeds of the Initial Term Loans to finance the Transactions, pay Transaction Costs (including paying any fees, commissions and expenses associated therewith), and for working capital purposes and general corporate purposes, (b) Borrowers will use the proceeds of the Revolving Credit Loans to pay Transaction Costs (including paying any fees, commissions and expenses associated therewith) and for working capital and general corporate purposes, including the financing of acquisitions and other Investments and/or for any other purpose not prohibited by the Loan Documents, (c) Borrowers will use the Letters of Credit issued for general corporate purposes, including supporting transactions not prohibited by the Loan Documents, and (d) the Borrowers will only use the proceeds of the Delayed Draw Term Loans to directly or indirectly (i) finance acquisitions or other Investments permitted hereunder (including the repayment of Indebtedness, earn-outs, seller notes, working capital or purchase price adjustments, transaction bonuses, other deferred consideration and other payments made in connection therewith) and capital expenditures, (ii) to repay Revolving Credit Loans or replenish cash on the balance sheet related to the foregoing <u>clause (i)</u> and other general corporate purposes, and/or (iii) to pay fees and expenses related to any of the foregoing <u>clauses (i)</u>-<u>(ii)</u> and with respect to the related Borrowing of Delayed Draw Term Loans; *provided* that, in the case of <u>clause (d)</u>, the Borrowers may draw Delayed Draw Term Loans prior to the occurrence of the events (1) described in <u>subclauses (i)</u> and <u>(ii)</u> but solely to the extent such events are expected in good faith by the Borrowers to be consummated within twenty (20) Business Days of such drawing of Delayed Draw Term Loans and that such events in <u>clauses (i)</u> and <u>(ii)</u> may or may not close simultaneously with such funding, but, in any event, are expected in good faith by the Borrowers to be consummated within twenty (20) Business Days of such drawing of Delayed Draw Term Loans and (2) described in <u>clause (iii)</u> at any time.

Section 5.08 <u>Ownership of Property; Liens</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Loan Party and each of the Restricted Subsidiaries has fee simple or other comparable valid title to, or leasehold interests in, all real property necessary in the ordinary conduct of its business, free and clear of all Liens except for minor defects in title that do not materially interfere with its ability to conduct its business or to utilize such assets for their intended purposes and Liens permitted by <u>Section</u> <u>7.02</u>, except where the failure to have such title or interests would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect on the use or operation of any real property necessary for the ordinary conduct of the Borrowers' business, taken as a whole.

Section 5.09 <u>Environmental Compliance</u>. Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Borrower Parties and their respective operations and properties are in compliance with all applicable Environmental Laws and possess and are in compliance with all Environmental Permits and none of the Borrower Parties are subject to any Environmental Liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) None of the properties currently or, to the knowledge of the Borrowers, formerly owned or operated by any Borrower Party is listed or, to the knowledge of the Borrowers, proposed for listing on the NPL or on the SEMS or any analogous foreign, state, provincial, territorial or local list, (ii) there is no asbestos or asbestos-containing material on any property currently owned or operated by any Borrower Party requiring investigation, remediation, mitigation, removal, or assessment, or other response, remedial or corrective action, pursuant to any Environmental Law and (iii) Hazardous Materials have not been Released and there exists no threat of Release of Hazardous Materials at, on, under, or from any property currently or, to the knowledge of the Borrowers, formerly owned or operated by any Borrower Party, except for such Releases or threats of Releases that were in compliance with, or would not reasonably be expected to give rise to liability of any Borrower Party under any Environmental Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) None of the Borrower Parties is undertaking, either individually or together with other potentially responsible parties, any investigation, remediation, mitigation, removal, assessment or remedial, response or corrective action relating to any actual or threatened Release of Hazardous Materials at any site, location or operation, either voluntarily or pursuant to the order of any Governmental Authority or the requirements of any Environmental Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All Hazardous Materials Released, generated, used, treated, handled or stored at, or transported to or from, any property currently or, to the knowledge of the Borrowers, formerly owned or operated by any Borrower Party have been disposed of in a manner not reasonably expected to result in liability to any Borrower Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) None of the Borrower Parties has received notice of or is subject to any claim, action, proceeding, investigation or suit with respect to any actual or alleged Environmental Liability.

Section 5.10 <u>Taxes</u>. Except as permitted under <u>Section</u> <u>6.04</u>, the Borrower Parties have filed or have caused to be filed all Tax returns and reports required to be filed, and have paid all Taxes (including in their capacity as withholding agents) levied or imposed upon them or their properties, income or assets otherwise due and payable, except those (a) which are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance with GAAP, or (b) with respect to which the failure to make such filing or payment would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.

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Section 5.11 <u>Employee Benefit Plans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as would not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect, (i) each Plan is in compliance with the applicable provisions of ERISA, the Code and other applicable federal and state laws and (ii) each Plan that is intended to be a qualified plan under Section 401(a) of the Code may rely upon an opinion letter for a prototype plan or has received a favorable determination letter from the IRS to the effect that the form of such Plan is qualified under Section 401(a) of the Code and the trust related thereto has been determined by the IRS to be exempt from federal income tax under Section 501(a) of the Code, or an application for such a letter will be submitted to the IRS within the applicable required time period with respect thereto or is currently being processed by the IRS, and to the knowledge of any Borrower Party, nothing has occurred that would prevent, or cause the loss of, such tax- qualified status.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as would not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect, (i) each Foreign Plan is in compliance with all requirements of Law applicable thereto and the respective requirements of the governing documents for such plan and (ii) with respect to each Foreign Plan, no Borrower Party or any of its Subsidiaries or any of its directors, officers, employees or agents has engaged in a transaction that could subject any Borrower Party, directly or indirectly, to any tax or civil penalty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There are no pending or, to the knowledge of any Borrower Party, threatened claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that would reasonably be expected to have a Material Adverse Effect. There has been no "prohibited transaction" within the meaning of Section 4975 of the Code or Section 406 or 407 of ERISA (and not otherwise exempt under Section 408 of ERISA) with respect to any Plan that would reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) (i) No ERISA Event has occurred and neither any Borrower Party nor, to the knowledge of any Borrower Party, any ERISA Affiliate is aware of any fact, event or circumstance that would reasonably be expected to constitute or result in an ERISA Event with respect to any Plan or Multiemployer Plan, (ii) each Borrower Party and each ERISA Affiliate has met all applicable requirements under the Pension Funding Rules in respect of each Plan, and no waiver of the minimum funding standards under such Pension Funding Rules has been applied for or obtained, (iii) there exists no Unfunded Pension Liability, (iv) as of the most recent valuation date for any Plan, the present value of all accrued benefits under such Plan (based on the actuarial assumptions used to fund such Plan) did not exceed the value of the assets of such Plan allocable to such accrued benefits, (v) neither any Borrower Party nor, to the knowledge of any Borrower Party, any ERISA Affiliate knows of any facts or circumstances that would reasonably be expected to cause the funding target attainment percentage (as defined in Section 430(d)(2) of the Code) for any Plan, if applicable, to drop below 80.0% as of the most recent valuation date, (vi) neither any Borrower Party nor any ERISA Affiliate has incurred any liability to the PBGC other than for the payment of premiums, and there are no premium payments which have become due that are unpaid, (vii) neither any Borrower Party nor any ERISA Affiliate has engaged in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA and (viii) no Plan has been terminated by the plan administrator thereof or by the PBGC and no event or circumstance has occurred or exists that would reasonably be expected to cause the PBGC to institute proceedings under Title IV of ERISA to terminate any Plan or Multiemployer Plan, except with respect to each of the foregoing <u>clauses (i)</u> through <u>(viii)</u> of this <u>Section</u> <u>5.11(d)</u>, as would not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Except as would not reasonably be expected to have a Material Adverse Effect: (i) each Foreign Plan has been maintained in substantial compliance with its terms and with the requirements of any and all applicable laws, statutes, rules, regulations and orders and has been maintained, where required, in good standing with applicable regulatory authorities, (ii) all contributions required to be made with respect to a Foreign Plan have been timely made, (iii) neither any Borrower Party nor any of its Subsidiaries has incurred any obligation in connection with the termination of, or withdrawal from, any Foreign Plan and (iv) there are no aggregate unfunded liabilities with respect to Foreign Plans and the present value of the aggregate benefit liabilities of all Foreign Plans did not, as of the last annual valuation date applicable thereto, exceed the assets of all such Foreign Plans.

Section 5.12 <u>Subsidiaries; Capital Stock</u>. As of the Closing Date, after giving effect to the Transactions, there are no Restricted Subsidiaries other than those specifically disclosed in <u>Schedule 5.12</u>, and all of the outstanding Capital Stock in such Restricted Subsidiaries that are owned by a Loan Party have been validly issued, are fully paid and non-assessable (other than for those Restricted Subsidiaries that are limited liability companies and limited partnerships and to the extent such concepts are not applicable in the relevant jurisdiction) and are owned free and clear of all Liens except for Permitted Liens.

Section 5.13 <u>Margin Regulations; Investment Company Act</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) None of the Loan Parties is engaged, nor will any such Loan Party engage, principally or as one of its important activities, in the business of purchasing or carrying Margin Stock, or extending credit for the purpose of purchasing or carrying Margin Stock. Neither the making of any Credit Extension hereunder nor the use of proceeds thereof will violate any regulations of the FRB, including the provisions of Regulations T, U or X of the FRB. No proceeds of any Borrowings or drawings under any Letter of Credit will be used to purchase or carry any Margin Stock or to extend credit to others for the purpose of purchasing or carrying any Margin Stock; *provided* that this sentence shall not be included in any representation or warranty in connection with the establishment of any New Loan Commitments or the incurrence of New Term Loans unless otherwise agreed by the Borrowers and the applicable lenders under any such facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) None of the Loan Parties is, or is required to be, registered as an "investment company" under the Investment Company Act of 1940, as amended.

Section 5.14 <u>Disclosure</u>. As of the Closing Date, no material written factual information (other than projections, financial estimates, forecasts and other forward-looking information and (ii) information of a general economic or industry specific nature) furnished by or on behalf of any Loan Party to any Agent or any Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered

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hereunder or any other Loan Document, when taken as a whole (as modified or supplemented by other information so furnished), in light of the substance of the information provided, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading in light of the circumstances under which such statements are made (after giving effect to all supplements and updates thereto made on or prior to the Closing Date); *provided* that, with respect to projected and pro forma financial information, the Borrowers represent only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time of preparation and delivery; it being understood that (i) no assurance can be given that any particular projections will be realized and (ii) actual results during the period or periods covered by any such forecasts may differ significantly from the projected results and such differences may be material.

Section 5.15 <u>Compliance with Laws</u>. The Borrowers and each Restricted Subsidiary are in compliance in all material respects with the requirements of all Laws and all orders, writs, injunctions and decrees (but not including Sanctions Laws and Regulations, Anti-Money Laundering Laws or AntiCorruption Laws, requirements for which are set forth in <u>Section</u> <u>5.19</u> and <u>Section</u> <u>5.20</u>) applicable to it or to its properties, except in such instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted or (b) the failure to comply therewith, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

Section 5.16 <u>Intellectual Property; Licenses, Etc.</u> To the knowledge of the Borrowers, the Borrowers and each Subsidiary Guarantor owns, licenses or possesses the right to use, all of the trademarks, service marks, trade names, copyrights, patents, domain names, know-how, trade secrets, and other intellectual property rights (collectively, "**IP Rights**") that are necessary for the operation of its respective business, as currently conducted, except to the extent such failure to own, license or possess, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect and provided that the foregoing shall not deem to constitute a representation that the Borrower and the Subsidiary Guarantors do not infringe or violate the IP Rights held by any other Person. Set forth on <u>Schedule 5.16</u> is a complete and accurate list of all material registrations and applications for registration in the United States Patent and Trademark Office or the United States Copyright Office of patents, trademarks, and copyrights owned by the Borrowers and Subsidiary Guarantors as of the Closing Date. To the knowledge of the Borrowers, the conduct of the business of the Borrowers or Subsidiary Guarantors as currently conducted does not infringe upon, misappropriate or violate any IP Rights held by any other Person, except for such infringements, misappropriations and violations which, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect, and no claim or litigation alleging any such infringement, misappropriation or violation is pending or, to the knowledge of the Borrowers, threatened in writing, which, either individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

Section 5.17 <u>Solvency</u>. On the Closing Date, after giving effect to the Transactions, the Borrowers and their Subsidiaries, on a Consolidated basis, are Solvent.

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Section 5.19 <u>Sanctions; OFAC</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Sanctions Laws and Regulations</u>. Each of the Holding Companies, the Borrowers and each of their respective Subsidiaries and the directors and officers and, to the knowledge of the Holding Companies and the Borrowers, managers, agents and employees of the Holding Companies, the Borrowers or any of their respective Subsidiaries is: (i) in compliance with applicable Sanctions Laws and Regulations and (ii) in compliance, in all material respects, with all applicable anti-money laundering and anti-terrorism financing laws and regulations (collectively, "**Anti-Money Laundering Laws**") and Export Controls. No Borrowing or Letter of Credit, or use of proceeds therefrom, will violate or result in the violation of any applicable Sanctions Laws and Regulations by any party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>OFAC</u>. None of (I) the Holding Companies, the Borrowers or any other Loan Party or (II) the Non-Loan Party Subsidiaries or any director, officer or, to the knowledge of the Holding Companies and the Borrowers, manager, agent or employee of the Holding Companies, the Borrowers or any of their respective Subsidiaries, in each case, (i) engages in any dealings or transactions of, with or involving a Sanctioned Person, or (ii) is a Sanctioned Person. The Borrowers will not directly or, to the knowledge of the Borrowers, indirectly use any part of the proceeds of the Term Loans, or otherwise make available such proceeds to any Person, (x) to finance any activities or transactions of, involving or with any Sanctioned Person, or dealings or investments in or with any Sanctioned Country, in each case in violation of applicable Sanctions Laws and Regulations, or (y) in any manner that would constitute or give rise to a violation of applicable Sanctions Laws and Regulations by any party hereto.

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Section 5.20 <u>Anti-Corruption Laws; PATRIOT Act</u>. The Borrowers will not use any part of the proceeds of any Loan or Letter of Credit, directly or, to the knowledge of the Borrowers, indirectly, for any improper payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, or any other party (if applicable) in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended, the UK Bribery Act 2010, or any other similar law relating to corruption or bribery that applies to any Loan Party or any of its Subsidiaries (the "**Anti-Corruption Laws**"). The Borrowers and their respective Subsidiaries are in compliance with AntiCorruption Laws in all material respects. To the extent applicable, each of the Holding Companies, the Borrowers and each of their respective Restricted Subsidiaries is in compliance, in all material respects, with the PATRIOT Act.

**ARTICLE VI** 

**AFFIRMATIVE COVENANTS** 

So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation (other than contingent indemnification obligations as to which no claim has been asserted and obligations and liabilities under Secured Cash Management Agreements, Secured Hedge Agreements, and Secured Third Party Letters of Credit) hereunder shall remain unpaid or unsatisfied, or any Letter of Credit remains outstanding (other than Letters of Credit that have been Cash Collateralized or as to which arrangements satisfactory to the L/C Issuer that issued such Letters of Credit shall have been made), (A) the Borrowers shall, and shall (except in the case of the covenants set forth in <u>Sections 6.01</u>, <u>6.02</u> and <u>6.03</u>) cause each Restricted Subsidiary to and (B) with respect to <u>Section</u> <u>6.17</u>, the Holding Companies shall:

Section 6.01 <u>Financial Statements</u>. Deliver to the Administrative Agent for further distribution to each Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) within 150 days (or 180 days with respect to the fiscal year ending December 31, 2024) after the end of each fiscal year of the Borrowers (which period for delivery may be extended by the Administrative Agent in its sole discretion), a Consolidated balance sheet of the Borrowers and their Subsidiaries as at the end of such fiscal year and the related Consolidated statements of income or operations, shareholders' equity and cash flows for such fiscal year (or, at the Borrowers' election with respect to the fiscal years ending December 31, 2024 and December 31, 2025, a Consolidated balance sheet of each Borrower (other than Quantic Corporate) and its Subsidiaries as at the end of such fiscal year and the related Consolidated statements of income or operations, shareholders' equity and cash flows for such fiscal year, together with a reconciliation of

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such audited financial statements into an unaudited combined financial report prepared by management), setting forth in each case, starting with the fiscal year ending December 31, 2026, in comparative form the figures for the previous fiscal year (which comparisons, if not included in the applicable audited financial statements, may be management prepared in the case of the first fiscal year for which a Consolidated audit of the Borrowers is required to be delivered), all in reasonable detail and prepared in accordance with GAAP, audited and accompanied by a report and opinion of any independent certified public accountant of nationally recognized standing, which report and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any "going concern" exception or any qualification or exception as to the scope of such audit (other than any such exception or qualification that is expressly with respect to, or expressly resulting from, (i) an upcoming maturity date under the Facilities, or other Indebtedness that is scheduled to occur within one year from the time such report and opinion are delivered, (ii) any actual or potential inability to satisfy a financial maintenance covenant, including the Financial Covenant, on a future date or in a future period, (iii) changes in accounting principles or practices reflecting changes in GAAP that are required or approved by the Borrowers' independent certified public accountant or (iv) the activities, operations, financial results, assets or liabilities of any Unrestricted Subsidiary), but which may contain an explanatory note or emphasis of the matter paragraph;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) within 60 days (or 75 days with respect to each of the first three of such fiscal quarters ending after the Closing Date for which quarterly financial statements are required to be delivered pursuant to this <u>Section</u> <u>6.01(b)</u>) after the end of each of the first three fiscal quarters of each fiscal year of the Borrowers (which period for delivery may be extended by the Administrative Agent in its sole discretion), starting with the fiscal quarter ended March 31, 2025, a Consolidated balance sheet of the Borrowers and their Subsidiaries as at the end of such fiscal quarter, and the related Consolidated statements of income or operations and cash flows for such fiscal quarter and for the portion of the fiscal year then ended, setting forth in each case, starting with the fiscal quarter ended March 31, 2026, in comparative form the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, all in reasonable detail and certified by a Responsible Officer of the Borrower Representative as fairly presenting in all material respects the financial condition, results of operations and cash flows of the Borrowers and their Subsidiaries (or each Borrower (other than Quantic Corporate) and its Subsidiaries, as applicable) in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) concurrently with the delivery of the audited financial statements pursuant to <u>clause (a)</u> above, commencing with the audited financial statements for fiscal year ending December 31, 2024 (i.e., for forecasts for fiscal year ending December 31, 2025), to be distributed only to each Lender that has selected the "Private Side Information" or similar designation, reasonably detailed forecasts prepared by management of the Borrowers (including projected Consolidated balance sheets, income statements, Consolidated EBITDA and cash flow statements of the Borrowers and their Subsidiaries) on a quarterly basis for the fiscal year following such fiscal year then ended, which forecasts shall be prepared in good faith on the basis of assumptions believed to be reasonable at the time of preparation thereof; *provided* that delivery of such forecasts pursuant to this <u>Section</u> <u>6.01(c)</u> shall only be required hereunder prior to an initial public offering of the Capital Stock of the Borrowers, the Holding Companies or any Parent Holding Company or one year prior thereto upon the filing of an initial Form S-1; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) concurrently with the delivery of any financial statements pursuant to <u>Sections 6.01(a)</u> and <u>(b)</u> above, a reconciliation statement or other statement reasonably acceptable to the Administrative Agent reflecting the adjustments necessary to eliminate the accounts of Unrestricted Subsidiaries (if any) from such Consolidated financial statements.

Notwithstanding the foregoing, (A) the obligations in <u>clauses (a)</u>, <u>(b)</u> and <u>(c)</u> of this <u>Section</u> <u>6.01</u> may be satisfied by furnishing, at the Borrowers' option, the applicable financial statements or, as applicable, forecasts of (I) any successor of a Borrower, (II) any Wholly Owned Restricted Subsidiary of a Borrower that, together with its combined and consolidated remaining Borrowers and their Restricted Subsidiaries, constitutes substantially all of the assets of the Borrowers and their combined and consolidated Subsidiaries (a "**Qualified Reporting Subsidiary**") or (III) any Holding Companies or any Parent Holding Company; *provided* that to the extent such information relates to a Qualified Reporting Subsidiary, any Holding Companies or a Parent Holding Company, such information is accompanied by customary consolidating information that explains in reasonable detail the material differences between the information relating to such Qualified Reporting Subsidiary, the Holding Companies or any Parent Holding Company, on the one hand, and the information relating to the Borrower Parties on a standalone basis, on the other hand, (B) (i) in the event that the Borrowers (or any Parent Holding Company or Subsidiary of a Parent Holding Company allowed to be delivered pursuant to the terms hereof) delivers to the Administrative Agent an Annual Report on Form 10-K for any fiscal year (or similar filing in the applicable jurisdiction), as filed with the SEC or in such form as would have been suitable for filing with the SEC (or similar governing body in the applicable jurisdiction, in each case), within the time frames set forth in <u>clause (a)</u> above, such Form 10-K shall satisfy all requirements of <u>clause (a)</u> of this <u>Section</u> <u>6.01</u> with respect to such fiscal year to the extent that it contains the information and report and opinion required by such <u>clause (a)</u> and such report and opinion does not contain any "going concern" exception or any qualification or exception as to the scope of audit (other than any such exception or qualification expressly permitted to be contained therein under <u>clause (a)</u> of this <u>Section</u> <u>6.01</u>), but which may contain an explanatory note or emphasis of the matter paragraph and (ii) in the event that the Borrowers (or any Parent Holding Company or Subsidiary of a Parent Holding Company allowed to be delivered pursuant to the terms hereof) delivers to the Administrative Agent a Quarterly Report on Form 10-Q for any fiscal quarter (or similar filing in the applicable jurisdiction), as filed with the SEC or in such form as would have been suitable for filing with the SEC (or similar governing body in the applicable jurisdiction, in each case), within the time frames set forth in <u>clause (b)</u> above, such Form 10-Q shall satisfy all requirements of <u>clause (b)</u> of this <u>Section</u> <u>6.01</u> with respect to such fiscal quarter to the extent that it contains the information required by such <u>clause (b)</u>, (C) any financial statements required to be delivered pursuant to <u>Section</u> <u>6.01(a)</u> and <u>6.01(b)</u> shall not be required to contain all purchase accounting adjustments relating to the Transactions or any other transactions permitted hereunder to the extent it is not practicable to include any such adjustments in such financial statements, and (D)

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following the consummation of an acquisition in the applicable period or the period thereafter, the obligations in <u>clauses (a)</u> and <u>(b)</u> of this <u>Section</u> <u>6.01</u> with respect to the target of such acquisition may be satisfied by, at the option of the Borrowers, (A) furnishing management accounts for the target of such acquisition or (B) omitting the target of such acquisition from the required financial statements of the Borrowers and their Subsidiaries for the applicable period and the period thereafter.

Section 6.02 <u>Certificates; Other Information</u>. Deliver to the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) no later than five Business Days after the delivery of (i) the financial statements referred to in <u>Sections 6.01(a)</u> and <u>(b)</u> or (ii) an Annual Report on Form 10-K or a Quarterly Report on Form 10-Q (in either case, delivered pursuant to the last paragraph of <u>Section</u> <u>6.01</u>), a duly completed Compliance Certificate signed by a Responsible Officer of the Borrower Representative (which delivery may, unless the Administrative Agent or a Lender requests executed originals, be by electronic communication including fax or email and shall be deemed to be an original authentic counterpart thereof for all purposes);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) promptly after the same are available, copies of all annual, regular, periodic and special reports and registration statements which the Holding Companies or the Borrowers may file or be required to file, copies of any report, filing or communication with the SEC under Section 13 or 15(d) of the Exchange Act, or with any Governmental Authority that may be substituted therefor, or with any national securities exchange, and in any case not otherwise required to be delivered to the Administrative Agent pursuant hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) promptly after the receipt thereof by any Loan Party or any of its Subsidiaries, copies of each notice or other correspondence received from the SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any material investigation or other material inquiry by such agency regarding financial or other operational results of any Loan Party or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) promptly after the assertion or occurrence thereof, notice of any action arising under any Environmental Law against any Loan Party or any of its Subsidiaries, or of any noncompliance by any Loan Party or any of its Subsidiaries with any Environmental Law or Environmental Permit, in each case that would reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) [reserved]; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) promptly, such additional information regarding the business, legal, financial or corporate affairs of any Loan Party or any Restricted Subsidiary thereof as the Administrative Agent or any Lender through the Administrative Agent may from time to time reasonably request.

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Documents required to be delivered pursuant to <u>Section</u> <u>6.01(a)</u>, <u>(b)</u>, <u>(c)</u> or <u>(d)</u> or <u>Section</u> <u>6.02(b)</u> or <u>(c)</u> (or to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date on which such documents are posted on a Borrower's (or any Parent Holding Company or Subsidiary of a Parent Holding Company allowed to be delivered pursuant to the terms hereof) behalf on the Platform or another relevant internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); *provided* that the Borrower Representative shall notify (which may be by facsimile or electronic mail) the Administrative Agent of the posting of any such documents described in this paragraph and provide to the Administrative Agent by electronic mail electronic versions (*i.e.*, soft copies) of such documents to the extent requested by the Administrative Agent. The Administrative Agent shall have no responsibility to monitor compliance by the Borrowers, and each Lender shall be solely responsible for timely accessing posted documents.

The Borrowers hereby acknowledges that (a) the Administrative Agent and/or the Arrangers will make available to the Lenders and the L/C Issuers materials and/or information provided by or on behalf of the Borrowers hereunder (collectively, "**Borrower Materials**") by posting the Borrower Materials on IntraLinks/IntraAgency, SyndTrak or another similar electronic system (the "**Platform**") and (b) certain of the Lenders (each, a "**Public Lender**") may have personnel who may be engaged in investment and other market related activities with respect to any securities of the Holding Companies or their Affiliates and who wish only to receive information that (i) is publicly available, (ii) is not material with respect to the Borrower Parties or their respective securities for purposes of applicable foreign, United States federal and state securities laws with respect to the Holding Companies or its Affiliates, or the respective securities of any of the foregoing or (iii) constitutes information of a type that would be publicly available (or could be derived from publicly available information) if the Borrower Parties were public reporting companies (as determined by the Borrowers in good faith) (such information, "**Public Side Information**"). The Borrowers hereby agree that it will use commercially reasonable efforts to identify that portion of the Borrower Materials that may be distributed to the Public Lenders and that (w) all the Borrower Materials shall be clearly and conspicuously marked "PUBLIC SIDE" or "PUBLIC" which, at a minimum, shall mean that the word "PUBLIC SIDE" or "PUBLIC" shall appear prominently on the first page thereof; (x) by marking Borrower Materials "PUBLIC SIDE" or "PUBLIC", the Borrowers shall be deemed to have authorized the Administrative Agent, the Arrangers, the L/C Issuers and the Lenders to treat the Borrower Materials as only containing Public Side Information (*provided*, *however*, that to the extent the Borrower Materials constitute Information, they shall be treated as set forth in <u>Section</u> <u>10.08</u>); (y) all Borrower Materials marked "PUBLIC SIDE" or "PUBLIC" are permitted to be made available through a portion of the Platform designated "Public Side Information"; and (z) the Borrower Materials that are not marked "PUBLIC SIDE" or "PUBLIC" shall be deemed to contain material non-public information (within the meaning of United States federal and state securities laws) and shall not be suitable for posting on a portion of the Platform designated "Public Side Information". Notwithstanding anything herein to the contrary, financial statements delivered pursuant to <u>Sections 6.01(a)</u> and <u>(b)</u> and Compliance Certificates delivered pursuant to <u>Section</u> <u>6.02(a),</u> in each case, shall be deemed to be suitable for posting on a portion of the Platform designated "Public Side Information".

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Section 6.03 <u>Notices</u>. Promptly, after a Responsible Officer of the Borrower Representative or any Guarantor has obtained knowledge thereof, notify the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) of the occurrence of any Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) of the institution of any material litigation not previously disclosed by the Borrowers to the Administrative Agent, or any material development in any material litigation, in each case, that is reasonably expected to have a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) of the occurrence of any ERISA Event that would be reasonably expected to have a Material Adverse Effect.

Each notice pursuant to this <u>Section</u> <u>6.03</u> shall be accompanied by a statement of a Responsible Officer of the Borrower Representative setting forth details of the occurrence referred to therein and stating what action the Borrower Representative has taken and proposes to take with respect thereto.

Section 6.04 <u>Payment of Taxes</u>. Pay, discharge or otherwise satisfy as the same shall become due and payable, all Taxes (including in its capacity as withholding agent) imposed upon it or its income, profits, properties or other assets, unless the same are being contested in good faith by appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP are being maintained by any Borrower Party; except to the extent the failure to pay, discharge or satisfy the same would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.

Section 6.05 <u>Preservation of Existence, Etc</u>. (a) Solely in the case of the Holding Companies, the Borrowers, or a Material Subsidiary, preserve, renew and maintain in full force and effect its legal existence under the Laws of the jurisdiction of its organization except in a transaction permitted by <u>Section</u> <u>7.03</u> or <u>7.04</u>, (b) take all reasonable action to maintain all rights, privileges (including its good standing, if such concept is applicable in its jurisdiction of organization), permits, licenses and franchises necessary or desirable in the normal conduct of its business, except to the extent that failure to do so would not reasonably be expected to have a Material Adverse Effect or as otherwise permitted hereunder, and (c) use commercially reasonable efforts to preserve or renew all of its registered copyrights, patents, trademarks, trade names and service marks, the non-preservation of which would reasonably be expected to have a Material Adverse Effect or as otherwise permitted hereunder, *provided* that nothing in this <u>Section</u> <u>6.05</u> shall require the preservation, renewal or maintenance of, or prevent the abandonment by, any Borrower Party of any registered copyrights, patents, trademarks, trade names and service marks that any Borrower Party reasonably determines in good faith is not useful to its business or no longer commercially desirable.

Section 6.06 <u>Maintenance of Properties</u>. Except if the failure to do so would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, maintain, preserve and protect all of its tangible properties and equipment that are necessary in the operation of its business in good working order, repair and condition, ordinary wear and tear excepted and casualty or condemnation excepted.

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Section 6.07 <u>Maintenance of Insurance</u>. Except if the failure to do so would not reasonably be expected to have a Material Adverse Effect, maintain in full force and effect, with insurance companies that the Borrowers believe (in the good faith judgment of the management of the Borrowers) are financially sound and responsible at the time the relevant coverage is placed or renewed, insurance in at least such amounts (after giving effect to any self-insurance which the Borrowers believe (in the good faith judgment of management of the Borrowers) is reasonable and prudent in light of the size and nature of its business) and against at least such risks (and with such risk retentions) as are usually insured against in the same general area by companies engaged in businesses similar to those engaged by the Borrower Parties. Subject to <u>Section</u> <u>6.16</u>, the Borrowers shall use commercially reasonable efforts to ensure that at all times the Collateral Agent, for the benefit of the Secured Parties, shall be named as an additional insured with respect to liability policies (other than directors and officers policies and workers compensation) maintained by the Holding Companies, the Borrowers and each Subsidiary Guarantor and the Collateral Agent, for the benefit of the Secured Parties, shall be named as loss payee and mortgagee with respect to the property insurance maintained by the Holding Companies, the Borrowers and each Subsidiary Guarantor; *provided* that, unless an Event of Default shall have occurred and be continuing, (A) all proceeds from insurance policies shall be paid to the Borrowers or applicable Subsidiary Guarantor, (B) to the extent the Collateral Agent receives any proceeds, the Collateral Agent shall turn over to the Borrowers any amounts received by it as an additional insured or loss payee under any property insurance maintained by the Borrowers and their Subsidiaries, and (C) the Collateral Agent agrees that the Borrowers and/or their Subsidiaries shall have the sole right to adjust or settle any claims under such insurance.

Section 6.08 <u>Compliance with Laws</u>. Comply with all applicable Laws (including, without limitation, ERISA, the PATRIOT Act, Anti-Corruption Laws, Environmental Laws and Sanctions Laws and Regulations) in all material respects and all orders, writs, injunctions and decrees of any Governmental Authority applicable to it or to its business or property, except if the failure to comply therewith, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

Section 6.09 <u>Books and Records</u>. Maintain proper books of record and account, in a manner to allow financial statements to be prepared in all material respects in conformity with GAAP consistently applied in respect of all financial transactions and matters involving the assets and business of the Borrowers or, if applicable, the Holding Companies or such Restricted Subsidiary, as the case may be (it being understood and agreed that Non-U.S. Subsidiaries may maintain individual books and records in conformity with generally accepted accounting principles that are applicable in their respective jurisdiction of organization).

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Section 6.10 <u>Inspection Rights</u>. Permit representatives of the Administrative Agent to visit and inspect any of its properties (subject to the rights of lessees or sublessees thereof and subject to any restrictions or limitations in the applicable lease, sublease or other written occupancy arrangement pursuant to which any Borrower Party is a party), to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, managers, officers, and independent public accountants (subject to such accountants' customary policies and procedures), all at the reasonable expense of the Borrowers and at such reasonable times during normal business hours and as often as may be reasonably desired, upon reasonable advance written notice to the Borrower Representative; *provided* that, excluding any such visits and inspections during the continuation of an Event of Default, (i) the Administrative Agent shall not exercise such rights more often than one time during any calendar year and (ii) such exercise shall be at the Borrowers' expense; *provided, further*, that when an Event of Default is continuing the Administrative Agent (or any of its respective representatives) may do any of the foregoing at the expense of the Borrowers at any time and from time to time during normal business hours and upon reasonable advance written notice. The Administrative Agent and the Lenders shall give the Borrowers the opportunity to participate in any discussions with the Borrowers' accountants. Notwithstanding anything to the contrary in this <u>Section</u> <u>6.10</u>, none of the Borrower Parties will be required to disclose or permit the inspection or discussion of, any document, information or other matter (i) that constitutes non-financial trade secrets or non-financial proprietary information, (ii) in respect of which disclosure to the Administrative Agent or any Lender (or their respective representatives or contractors) is prohibited by Law or any binding agreement or (iii) that is subject to attorney-client or similar privilege or constitutes attorney work product.

Section 6.11 <u>Use of Proceeds</u>. The Borrowers will use the Letters of Credit and the proceeds of Loans only as provided in <u>Sections 5.07</u>, <u>5.13(a)</u>, <u>5.19</u> and <u>5.20</u>.

Section 6.12 <u>Covenant to Guarantee Obligations and Give Security</u>. Upon the formation or acquisition of any new Wholly Owned Subsidiaries (including, without limitation, pursuant to an LLC Division or LP Division, or the creation of new Series LLC or Series LP) by any Loan Party (*provided* that each of (i) any Subsidiary Redesignation resulting in an Unrestricted Subsidiary becoming a Restricted Subsidiary and (ii) any Excluded Subsidiary ceasing to be an Excluded Subsidiary but remaining a Restricted Subsidiary shall be deemed to constitute the acquisition of a Restricted Subsidiary for all purposes of this <u>Section</u> <u>6.12</u> measured, from the avoidance of doubt, from the date of designation, in the case of <u>clause (i)</u>, and in the case of <u>clause (ii)</u>, the date of cessation (it being agreed that, if such date of cessation is a result of a financial calculation, such date shall be measured from the date the Compliance Certificate with respect to the fiscal quarter in which such cessation occurred is required to be delivered hereunder and all such periods herein shall be calculated from such date), and upon the acquisition of any property (other than Excluded Property) by any Loan Party, which property, in the reasonable judgment of the Administrative Agent, is not already subject to a perfected Lien in favor of the Collateral Agent for the benefit of the Secured Parties (and where such a perfected Lien would be required in accordance with the terms of the Collateral Documents or other Loan Documents), the Borrowers shall, at the Borrowers' expense, and, in all cases, subject to the Agreed Security Principles with respect to Non-U.S. Subsidiaries:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in connection with such formation or acquisition of a Subsidiary that is organized in the United States, the jurisdiction of an Elected Loan Party (solely in the case of such Elected Loan Party and its Subsidiaries), and any Applicable Jurisdiction, within 90 days after such formation or acquisition or such longer period as the Collateral Agent may agree in its reasonable discretion, (A) cause each such Subsidiary that is not an Excluded Subsidiary to duly execute and deliver to the Collateral Agent and the Administrative Agent a guaranty or guaranty supplement, in form and substance reasonably satisfactory to the Administrative Agent, and a joinder or supplement to the applicable Collateral Documents in accordance with the Agreed Security Principles (if such subsidiary is a Non-U.S. Subsidiary) and (B) (if not already so delivered) deliver certificates (or the foreign equivalent thereof, as applicable) representing the Pledged Interests of each such Subsidiary (if any) held by the applicable Loan Party accompanied by undated stock powers or other appropriate instruments of transfer executed in blank and instruments evidencing the Pledged Debt owing by such Subsidiary to any Loan Party indorsed in blank to the Collateral Agent, together with, if requested by the Collateral Agent, supplements to the applicable Collateral Documents; *provided* that any Excluded Property shall not be required to be pledged as Collateral,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) within 90 days after such request, formation or acquisition, or such longer period, as the Collateral Agent may agree in its reasonable discretion, take, and cause such Subsidiary that is not an Excluded Subsidiary and each applicable Loan Party to take, whatever action (including the filing of UCC financing statements , the giving of notices and delivery of stock and membership interest certificates or foreign equivalents representing the applicable Capital Stock) as may be necessary or advisable in the reasonable opinion of the Collateral Agent to vest in the Collateral Agent (or in any representative of the Collateral Agent designated by it), subject to the Legal Reservations and <u>Section</u> <u>5.03</u>, valid and subsisting Liens on the properties purported to be subject to security agreement supplements, intellectual property security agreement supplements, supplements to other Collateral Documents and security agreements delivered pursuant to this <u>Section</u> <u>6.12</u>, in each case to the extent required under the Loan Documents and subject to the Perfection Exceptions, enforceable against all third parties in accordance with their terms,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) within 90 days after the request of the Collateral Agent, or such longer period as the Collateral Agent may agree in its reasonable discretion, deliver to the Collateral Agent, Organization Documents, resolutions and a signed copy of one or more customary opinions, addressed to the Collateral Agent for the benefit of the Secured Parties, of counsel for the Loan Parties (or the Collateral Agent, as applicable) reasonably acceptable to the Collateral Agent as to such matters as the Collateral Agent may reasonably request, in each case to the extent required under the Loan Documents and subject to the Perfection Exceptions,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) [reserved],

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) at any time and from time to time, promptly execute and deliver any and all further instruments and documents and take all such other action as the Collateral Agent in its reasonable judgment may deem necessary or desirable in obtaining the full benefits of, or in perfecting and preserving the Liens of, such guaranties, security agreement supplements, intellectual property security agreement supplements, Collateral Documents and security agreements, in each case, with respect to guaranteeing and/or securing Obligations consistent with the terms hereof, in each case to the extent required under the Loan Documents and subject to the Perfection Exceptions.

For the avoidance of doubt, nothing in this <u>Section</u> <u>6.12</u> or in <u>Section</u> <u>6.14</u> shall be deemed to require any Borrower Party to grant security interests or take steps with respect to perfection thereof to the extent such steps are not required in the Collateral Documents entered into on the Closing Date (or after the Closing Date in accordance with <u>Section</u> <u>6.16</u>).

Section 6.13 <u>Reserved</u>.

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Section 6.15 <u>Maintenance of Ratings</u>. Use commercially reasonable efforts to obtain and maintain (but not obtain or maintain a specific rating) any two of the following: (i) a public corporate family rating of the Borrowers from Moody's, (ii) a public corporate family rating of the Borrowers from S&P and (iii) a public corporate family rating of the Borrowers from Fitch (it being understood and agreed that "commercially reasonable efforts" shall in any event include the payment by the Borrowers of customary rating agency fees and cooperation with information and data requests by Moody's, S&P and Fitch in connection with their ratings process).

Section 6.16 <u>Post-Closing Undertakings</u>. Within the time periods specified on <u>Schedule 6.16</u> hereto (as each may be extended by the Administrative Agent in its reasonable discretion), provide such Collateral Documents and complete such undertakings as are set forth on <u>Schedule 6.16</u> hereto.

Section 6.17 <u>Line of Business</u>. Engage in no material lines of business substantially different from those lines of business conducted by the Borrower Parties on the date hereof, unless such business lines are reasonably related, complementary, synergistic or ancillary thereto or reasonable extensions of those lines of business conducted by the Borrower Parties on the date hereof.

Section 6.18 <u>Transactions with Affiliates</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the case of payments to, or sales, leases, transfers or dispositions of any of its respective properties or assets to, or purchases any property or assets from, or transactions or series of transactions, contract, agreement, understanding, loan, advance or guarantee with, or for the benefit of, any Affiliate of a Borrower involving aggregate consideration in excess of the greater of (x) $46,000,000 and (y) 10.0% of Four Quarter Consolidated EBITDA (each of the foregoing, an "**Affiliate Transaction**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) engage only in sales, dispositions, agreements and other transactions that are which are on terms that are not materially less favorable to the relevant Borrower Party than those that could have been obtained in a comparable transaction by such Borrower Party with an unrelated Person on an arm's length basis (as determined in good faith by the senior management or the Board of Directors of a Borrower or any direct or indirect parent of a Borrower); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) with respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of the greater of (x) $207,000,000 and (y) 45.0% of Four Quarter Consolidated EBITDA, deliver (from the Borrower Representative) to the Administrative Agent a resolution adopted in good faith by the majority of the Board of Directors of the applicable Borrower, Holding Company or any Parent Holding Company, approving such Affiliate Transaction, together with a certificate signed by a Responsible Officer of the Borrower Representative certifying that the Board of Directors of the applicable Borrower, Holding Company, or any Parent Holding Company determined or resolved that such Affiliate Transaction complies with <u>Section</u> <u>6.18(a)(i)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The foregoing provisions will not apply to the following:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) (a) transactions between or among the Borrowers and/or any of their Restricted Subsidiaries (or an entity that becomes a Restricted Subsidiary as a result of such transaction), and (b) any merger, amalgamation or consolidation of the Borrowers, the Holding Companies or any Parent Holding Company; *provided* that such entity shall have no material liabilities and no material assets (other than cash, Cash Equivalents and the Capital Stock of a Borrower) and such merger, amalgamation or consolidation is otherwise in compliance with the terms of this Agreement and effected for a bona fide business purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) (a) Restricted Payments permitted by <u>Section</u> <u>7.05</u> and (b) Permitted Investments (other than Permitted Investments under <u>clause (13)</u> of the definition thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) transactions in which any Borrower Party, as the case may be, delivers to the Administrative Agent a letter from an Independent Financial Advisor stating that such transaction is fair to such Borrower Party from a financial point of view or meets the requirements of <u>Section</u> <u>6.18(a)(i)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) payments, loans, advances or guarantees (or cancellation of loans, advances or guarantees) to employees, officers, directors, managers, consultants or independent contractors for bona fide business purposes or in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) any agreement or arrangement as in effect as of the Closing Date (other than the Management Agreement) or as thereafter amended, supplemented or replaced (so long as such amendment, supplement or replacement agreement or arrangement is not materially disadvantageous (as determined in good faith by the senior management or the Board of Directors of a Borrower or any direct or indirect parent of a Borrower) to the Lenders when taken as a whole as compared to the original agreement or arrangement as in effect on the Closing Date) or any transaction or payments contemplated thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) the Management Agreement or any transaction or payments (including reimbursement of out-of-pocket expenses or payments under any indemnity obligations) contemplated thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) the existence of, or the performance by any Borrower Party of its obligations under the terms of any stockholders or similar agreement (including any registration rights agreement or purchase agreement related thereto) to which it is a party as of the Closing Date or in connection with the Transactions or similar transactions, arrangements or agreements which it may enter into thereafter; *provided*, *however*, that the existence of, or the performance by any Borrower Party of its obligations under, any future amendment to any such existing transaction, arrangement or agreement or under any similar transaction, arrangement or agreement entered into after the Closing Date shall only be permitted by this <u>clause (7)</u> to the extent that the terms of any such existing transaction, arrangement or agreement, together with all amendments thereto, taken as a whole, or new transaction, arrangement or agreement are not otherwise disadvantageous (as determined in good faith by the senior management or the Board of Directors of a Borrower or any direct or indirect parent of a Borrower) to the Lenders, in any material respect when taken as a whole as compared with the original transaction, arrangement or agreement as in effect on the Closing Date or entered into in connection with the Transactions;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) transactions with customers, clients, suppliers or purchasers or sellers of goods or services, in each case, in the ordinary course of business and otherwise in compliance with the terms of this Agreement, which are fair to the Borrower Parties or are on terms at least as favorable (as determined in good faith by the senior management or the Board of Directors of the applicable Borrower or any direct or indirect parent of the applicable Borrower) as might reasonably have been obtained at such time from an unaffiliated party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) any transaction effected as part of a Qualified Receivables Financing or a Qualified Receivables Factoring;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) the sale, issuance or transfer of Equity Interests (other than Disqualified Stock) of a Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) payments by any Borrower Party to or on behalf of the Sponsor made for any financial advisory, financing, underwriting or placement services or in respect of other investment banking activities, including, without limitation, in connection with acquisitions or divestitures, which payments are (x) made pursuant to agreements with the Sponsor or (y) approved by a majority of the Board of Directors of a Borrower, a Holding Company or any Parent Holding Company in good faith or a majority of the disinterested members of the Board of Directors of a Borrower, a Holding Company or any Parent Holding Company in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) any contribution to the capital of the Borrowers (other than Disqualified Stock) or any investments by the Sponsor or a direct or indirect parent of a Borrower in Equity Interests (other than Disqualified Stock) of the applicable Borrower (and payment of reasonable out-of-pocket expenses incurred by the Sponsor or a direct or indirect parent of the Borrowers in connection therewith);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) any transaction with a Person (other than an Unrestricted Subsidiary) that would constitute an Affiliate Transaction solely because any Borrower Party owns an Equity Interest in or otherwise controls such Person; *provided* that no Affiliate of the Borrowers or any of their Subsidiaries (other than any Borrower Party) shall have a beneficial interest or otherwise participate in such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) transactions between any Borrower Party and any Person that would constitute an Affiliate Transaction solely because such Person is a director or such Person has a director who is also a director of a Borrower or any direct or indirect parent of a Borrower; *provided*, *however*, that such director abstains from voting as a director of a Borrower or such direct or indirect parent of a Borrower, as the case may be, on any matter involving such other Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) the entering into of any tax sharing agreement or arrangement and any payments pursuant thereto, in each case to the extent permitted by <u>clause (13)</u>, <u>(14)(a)</u> or <u>(14)(e)</u> of the second paragraph under <u>Section</u> <u>7.05</u>;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) transactions to effect the Transactions, and the payment of all transaction, underwriting, commitment and other fees and expenses related to the Transactions (including the Transaction Costs);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) pledges of Equity Interests of Unrestricted Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) the issuances of securities or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment arrangements, equity purchase agreements, stock options and stock ownership plans or similar employee benefit plans approved by the Board of Directors of a Borrower, a Holding Company or any Parent Holding Company or of a Restricted Subsidiary, as appropriate, in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19) (i) any employment, consulting, service or termination agreement, or customary indemnification arrangements, entered into by any Borrower Party with current, former or future officers, directors, employees, managers, consultants and independent contractors of any Borrower Party (or of any direct or indirect parent of a Borrower to the extent such agreements or arrangements are in respect of services performed for any Borrower Party), (ii) any subscription agreement or similar agreement pertaining to the repurchase of Equity Interests pursuant to put/call rights or similar rights with current, former or future officers, directors, employees, managers, consultants and independent contractors of any Borrower Party or of any direct or indirect parent of a Borrower and (iii) any payment of compensation or other employee compensation, benefit plan or arrangement, any health, disability or similar insurance plan which covers officers, directors, employees, managers, consultants and independent contractors of any Borrower Party or any direct or indirect parent of a Borrower (including amounts paid pursuant to any management equity plan or any other management or employee benefit plan or agreement or any stock subscription or shareholder agreement, stock option or similar plans and any successor plan thereto and any supplemental executive retirement benefit plans or arrangements), in each case in the ordinary course of business or as otherwise approved in good faith by the Board of Directors of the applicable Borrower or of a Restricted Subsidiary or any direct or indirect parent of a Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20) investments by Affiliates in Indebtedness or Preferred Stock of the Borrowers or any of their Subsidiaries, so long as non-Affiliates were also offered the opportunity to invest in such Indebtedness or Preferred Stock, and transactions with Affiliates solely in their capacity as holders of Indebtedness or Preferred Stock of the Borrowers or any of their Subsidiaries, so long as such transaction is with all holders of such class (and there are such non-Affiliate holders) and such Affiliates are treated no more favorably than all other holders of such class generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21) the existence of, or the performance by any Borrower Party of their obligations under the terms of, any registration rights agreement or shareholder's agreement to which they are a party or become a party in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22) investments by the Sponsor or a direct or indirect parent of a Borrower in securities of a Borrower or debt securities or Preferred Stock of any Restricted Subsidiary (and payment of reasonable out-of-pocket expenses incurred by the Sponsor or a direct or indirect parent of a Borrower in connection therewith);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23) transactions with joint ventures for the purchase or sale of goods, equipment and services entered into in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24) any lease entered into between any Borrower Party, as lessee, and any Affiliate of a Borrower, as lessor, in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(25) (i) intellectual property licenses and (ii) intercompany intellectual property licenses and research and development agreements in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(26) transactions pursuant to, and complying with, <u>Section</u> <u>7.01</u> (to the extent such transaction complies with <u>Section</u> <u>6.18(a)</u>) or <u>Section</u> <u>7.03</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(27) intercompany transactions undertaken in good faith for the purpose of improving the tax efficiency of the Borrower Parties and not for the purpose of circumventing any covenant set forth herein; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(28) the payment to (or reimbursement of costs of) the Affiliated Law Firm for amounts attributable to the cost of legal services provided by the Affiliated Law Firm solely to the extent permitted by the governing documents of any applicable investment fund(s) managed by the Sponsor.

Section 6.19 <u>Quarterly Lender Calls</u>. Following delivery of the financial statements required to be delivered pursuant to <u>Sections 6.01(a)</u> and <u>(b)</u>, commencing with the delivery of information with respect to the fiscal quarter ending June 30, 2025, at the reasonable request of the Administrative Agent, the Borrower Representative shall hold a conference call (at a mutually agreeable time) with all Lenders who choose to attend such conference call, at which meeting shall be reviewed the financial position and results of operations of the Borrowers and their Subsidiaries for the fiscal quarter or fiscal year, as applicable, for which financial statements have been delivered, which conference call shall will only pertain to matters available or distributed to "public side" Lenders; *provided* that if the Borrower Representative is holding a conference call open to the public or holders of any public securities to discuss the financial position and results of operations of the Borrowers and their Subsidiaries for the most recently ended fiscal quarter or fiscal year, as applicable, for which financial statements have been delivered pursuant to <u>Sections 6.01(a)</u> and <u>(b)</u>, such conference call shall be deemed to satisfy the requirements of this <u>Section</u> <u>6.19</u> so long as the Lenders are provided access to such conference call and the ability to ask questions thereon.

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**ARTICLE VII** 

**NEGATIVE COVENANTS** 

So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation (other than contingent indemnification obligations as to which no claim has been asserted and obligations and liabilities under Secured Cash Management Agreements, Secured Hedge Agreements, and Secured Third Party Letters of Credit) hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding (other than Letters of Credit that have been Cash Collateralized or as to which arrangements satisfactory to the L/C Issuer that issued such Letters of Credit shall have been made), (A) except with respect to <u>Section</u> <u>7.09</u>, each of the Borrowers shall not, nor shall it permit any other Restricted Subsidiary to and (B) with respect to <u>Section</u> <u>7.09</u>, the Holding Companies shall not:

Section 7.01 <u>Indebtedness</u>. Incur any Indebtedness (including Acquired Indebtedness) or issue any shares of Disqualified Stock, and each of the Borrowers will not permit any of its Non-Loan Party Subsidiaries to issue any shares of Preferred Stock; *provided*, *however*, that the Borrowers and any Restricted Subsidiary of the Borrowers may incur Indebtedness (including Acquired Indebtedness) or issue shares of Disqualified Stock and any Non-Loan Party Subsidiary may issue shares of Preferred Stock, in each case, in an amount not to exceed the Incremental Amount as of the date of Incurrence (subject to <u>Section</u> <u>1.02(i)</u>); *provided* that such Indebtedness Disqualified Stock or Preferred Stock, (1) other than with respect to the initial maturity date for Designated Earlier Maturing Debt, has a Stated Maturity that is no earlier than the Latest Maturity Date, (2) has a Weighted Average Life to Maturity at the time such Indebtedness is Incurred that is not less than the then longest remaining Weighted Average Life to Maturity of any then outstanding Term Loans; *provided* that Ratio Debt in the form of Designated Earlier Maturing Debt may have a Weighted Average Life to Maturity shorter than the then longest remaining Weighted Average Life to Maturity of any then outstanding Term Loans, and (3) shall for purposes of mandatory prepayments not be treated more favorably than the existing Term Loans (such Indebtedness Incurred and Disqualified Stock and Preferred Stock issued, "**Ratio Debt**").

The foregoing limitations will not apply to (collectively, "**Permitted Debt**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (x) Indebtedness arising under the Loan Documents including any refinancing thereof in accordance with <u>Section</u> <u>2.18</u>, (y) Indebtedness of the Loan Parties evidenced by Refinancing Notes and any Permitted Refinancing thereof (or successive Permitted Refinancings thereof) and (z) Indebtedness of the Loan Parties evidenced by Incremental Equivalent Debt and any Permitted Refinancing thereof (or successive Permitted Refinancings thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) letters of credit, bank guarantees, bankers' acceptances, performance bonds, surety bonds or other similar instruments facilities or stand-alone letters of credit, bank guarantees, bankers' acceptances, performance bonds, surety bonds or other similar instruments in an aggregate outstanding stated amount not to exceed $150,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Indebtedness and Disqualified Stock of the Borrower Parties and Preferred Stock of their Restricted Subsidiaries (other than Indebtedness described in <u>clause (a)</u> or <u>(b)</u> above) that 212 is existing on the Closing Date and, solely to the extent in an individual amount in excess of $50,000,000, listed on <u>Schedule 7.01</u> and for the avoidance of doubt, including all Capitalized Lease Obligations existing on the Closing Date listed on <u>Schedule 7.01</u> and Permitted Refinancings thereof;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Indebtedness (including, without limitation, Capitalized Lease Obligations and mortgage financings as purchase money obligations) Incurred by any Borrower Party, Disqualified Stock issued by any Borrower Party and Preferred Stock issued by any of their Restricted Subsidiaries to finance all or any part of the purchase, lease, construction, installation, repair or improvement of property (real or personal), plant or equipment or other fixed or capital assets (whether through the direct purchase of assets or the Capital Stock of any Person owning such assets) and Indebtedness, Disqualified Stock or Preferred Stock arising from the conversion of the obligations of any Borrower Party under or pursuant to any "synthetic lease" transactions to on- balance sheet Indebtedness of any Borrower Party, in an aggregate principal amount or liquidation preference, including all Indebtedness Incurred and Disqualified Stock or Preferred Stock issued to renew, refund, refinance, replace, defease or discharge any Indebtedness Incurred or Disqualified Stock or Preferred Stock issued pursuant to this <u>clause (d)</u>, not to exceed an amount equal to (i) the greater of (x) $230,000,000 and (y) 50.0% of Four Quarter Consolidated EBITDA, at any one time outstanding, *plus* (ii) an aggregate principal amount that, after giving Pro Forma Effect to the incurrence thereof would not result in the Consolidated First Lien Net Leverage Ratio for the applicable Test Period being greater than 6.25:1.00 (calculated as if any such Indebtedness, Disqualified Stock or Preferred Stock constituted Consolidated Funded First Lien Indebtedness) incurred pursuant to this <u>clause (d)</u>, plus (iii) in the case of any refinancing of any Indebtedness, Disqualified Stock or Preferred Stock permitted under this <u>clause (d)</u> or any portion thereof, any Refinancing Expenses; *provided* that Capitalized Lease Obligations Incurred by any Borrower Party pursuant to this <u>clause (d)</u> in connection with a Sale/Leaseback Transaction shall not be subject to the foregoing limitation so long as the proceeds of such Sale/Leaseback Transaction are used by any Borrower Party to permanently repay outstanding Term Loans under this Agreement or other Indebtedness that is secured by a Lien on the Collateral on a *pari passu* basis (it being understood that any Indebtedness, Disqualified Stock or Preferred Stock Incurred pursuant to this <u>clause (d)</u> shall cease to be deemed Incurred or outstanding pursuant to this <u>clause (d)</u> but shall be deemed Incurred and outstanding as Ratio Debt from and after the first date on which any Borrower Party, as the case may be, could have Incurred such Indebtedness, Disqualified Stock or Preferred Stock as Ratio Debt (to the extent any Borrower Party is able to Incur any Liens related thereto as Permitted Liens after such reclassification));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Indebtedness Incurred by any Borrower Party constituting (i) tenant improvement loans incurred in the ordinary course of business or (ii) reimbursement obligations with respect to letters of credit, warehouse receipts or similar facilities, banker's acceptances, bank guarantees or similar instruments issued in the ordinary course of business, including, without limitation, (i) letters of credit or performance or surety bonds in respect of workers' compensation claims, health, disability or other employee benefits (whether current or former) or property, casualty or liability insurance or self-insurance, or other Indebtedness with respect to reimbursement-type obligations regarding workers' compensation claims, health, disability or other employee benefits (whether current or former) or property, casualty or liability insurance and (ii) guarantees of Indebtedness Incurred by customers in connection with the purchase or other acquisition of equipment or supplies in the ordinary course of business;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Incurrence of Indebtedness, Disqualified Stock or Preferred Stock arising from agreements of the Borrowers or their Restricted Subsidiaries providing for indemnification, earnouts, adjustment of purchase or acquisition price or similar obligations, in each case, Incurred in connection with the Transactions or with the acquisition or disposition of any business, assets or a Subsidiary of the Borrowers in accordance with this Agreement, other than guarantees of Indebtedness Incurred or Disqualified Stock or Preferred Stock issued by any Person acquiring all or any portion of such business, assets or Subsidiary for the purpose of financing such acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Indebtedness, Disqualified Stock or Preferred Stock of a Restricted Subsidiary or a Borrower Incurred in an amount not to exceed at such time equal to the sum of (i) 100.0% of the Available Amount Growing Prong <u>plus</u> (ii) 100.0% of the Available Amount Starter Prong; *provided*, that, Indebtedness, Disqualified Stock or Preferred Stock incurred in reliance on amounts available for making Restricted Payments pursuant to <u>Section</u> <u>7.05</u> shall reduce the amount available under the Available Amount Growing Prong and the Available Amount Starter Prong by an amount equal to the outstanding principal amount of such Indebtedness, Disqualified Stock or Preferred Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) shares of Preferred Stock of a Restricted Subsidiary issued to the Borrowers or another Restricted Subsidiary of the Borrowers; *provided* that any subsequent issuance or transfer of any Capital Stock or any other event that results in any Restricted Subsidiary that holds such shares of Preferred Stock of another Restricted Subsidiary ceasing to be a Restricted Subsidiary or any other subsequent transfer of any such shares of Preferred Stock (except to the Borrowers or another Restricted Subsidiary) shall be deemed, in each case, to be an issuance of shares of Preferred Stock not permitted by this <u>clause (h)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Indebtedness, Disqualified Stock or Preferred Stock of a Restricted Subsidiary or a Borrower owing to a Borrower or another Restricted Subsidiary; *provided* that (x) if a Borrower or a Subsidiary Guarantor Incurs such Indebtedness, Disqualified Stock or Preferred Stock owing to a Non-Loan Party Subsidiary, such Indebtedness, Disqualified Stock or Preferred Stock is subordinated in right of payment to such Borrower's or such Subsidiary Guarantor's Obligations pursuant to the Intercompany Subordination Agreement and (y) any subsequent issuance or transfer of any Capital Stock or any other event that results in any Restricted Subsidiary lending such Indebtedness, Disqualified Stock or Preferred Stock ceasing to be a Restricted Subsidiary or any other subsequent transfer of any such Indebtedness, Disqualified Stock or Preferred Stock (except to a Borrower or another Restricted Subsidiary) shall be deemed, in each case, to be an Incurrence of such Indebtedness, Disqualified Stock or Preferred Stock not permitted by this <u>clause (i)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Swap Contracts Incurred other than for speculative purposes and Cash Management Services (including, without limitation, in connection with any Qualified Receivables Financing);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) obligations (including reimbursement obligations with respect to letters of credit or bank guarantees or similar instruments) in respect of customs, self-insurance, performance, bid, appeal and surety bonds and completion guarantees and similar obligations provided by any Borrower Party;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Indebtedness or Disqualified Stock of any Borrower Party and Preferred Stock of any of their Restricted Subsidiaries in an aggregate principal amount or liquidation preference that, when aggregated with the principal amount or liquidation preference of all other Indebtedness, Disqualified Stock and Preferred Stock then outstanding and Incurred pursuant to this <u>clause (l)</u>, does not exceed the sum of (x) the greater of (i) $276,000,000 and (ii) 60.0% of Four Quarter Consolidated EBITDA, at any one time outstanding, *plus* (y) amounts reallocated, at the Borrowers' option, from the General RP Basket, *plus*, (z) in the case of any refinancing of any Indebtedness, Disqualified Stock or Preferred Stock permitted under this <u>clause (l)</u> or any portion thereof, any Refinancing Expenses (it being understood that any Indebtedness Incurred or Disqualified Stock or Preferred Stock issued pursuant to this <u>clause (l)</u> shall cease to be deemed Incurred, issued or outstanding pursuant to this <u>clause (l)</u> but shall be deemed Incurred or issued and outstanding as Ratio Debt from and after the first date on which any Borrower Party, as the case may be, could have Incurred such Indebtedness or issued such Disqualified Stock or Preferred Stock as Ratio Debt (to the extent any Borrower Party is able to Incur any Liens related thereto as Permitted Liens after such reclassification)) (this <u>clause (l)</u>, the "**General Debt Basket**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) any guarantee by any Borrower Party of Indebtedness, Disqualified Stock, Preferred Stock or other obligations of any Borrower Party so long as the Incurrence of such Indebtedness, Disqualified Stock, Preferred Stock or other obligations by any Borrower Party is permitted under the terms of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) the Incurrence by any Borrower Party of Indebtedness or Disqualified Stock or the issuance of Preferred Stock of a Restricted Subsidiary that serves to refund, refinance, replace, redeem, repurchase, retire or defease, and is in an aggregate principal amount (or if issued with original issue discount an aggregate issue price) that is less than or equal to, Indebtedness Incurred or Disqualified Stock or Preferred Stock issued as Ratio Debt or permitted under <u>clause (c)</u>, this <u>clause (n)</u>, <u>clause (o)</u> or <u>clause (r)</u> of this paragraph or <u>subclause (y)</u> of each of <u>clauses (d)</u>, <u>(l)</u>, <u>(t)</u>, <u>(cc)</u> or <u>(dd)</u> of this paragraph (*provided* that any amounts Incurred under this <u>clause (n)</u> as Refinancing Indebtedness in respect of Indebtedness Incurred pursuant to <u>subclause (y)</u> of any of these clauses shall reduce the amount available under such <u>subclause (y)</u> of such clause so long as such Refinancing Indebtedness remains outstanding) or any Indebtedness Incurred or Disqualified Stock or Preferred Stock issued to so refund, replace, refinance, redeem, repurchase, retire or defease such Indebtedness, Disqualified Stock or Preferred Stock, *plus* any Refinancing Expenses (subject to the following proviso, "**Refinancing Indebtedness**"); *provided*, *however*, that such Refinancing Indebtedness:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) has a Weighted Average Life to Maturity at the time such Refinancing Indebtedness is Incurred that is not less than the remaining Weighted Average Life to Maturity of the Indebtedness, Disqualified Stock or Preferred Stock being refunded, refinanced, replaced, redeemed, repurchased or retired (which, in the case of bridge loans or Extendable Bridge Loans/Interim Debt or Convertible Debt, shall be determined by reference to the notes or loans into which such bridge loans or Extendable Bridge

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Loans/Interim Debt or Convertible Debt are converted or for which such bridge loans or Extendable Bridge Loans/Interim Debt or Convertible Debt are exchanged at maturity and will be subject to other customary offers to repurchase or mandatory prepayments upon a change of control, asset sale or event of loss and customary acceleration rights after an event of default); *provided* that Refinancing Indebtedness in the form of Designated Earlier Maturing Debt may have a Weighted Average Life to Maturity that is shorter than the remaining Weighted Average Life to Maturity of the Indebtedness, Disqualified Stock or Preferred Stock being refunded, refinanced, replaced, redeemed, repurchased or retired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) in the case of any revolving Indebtedness, has a Stated Maturity that is no earlier than the Stated Maturity of the Indebtedness being refunded, refinanced, replaced, redeemed, repurchased or retired (which, in the case of bridge loans or Extendable Bridge Loans/Interim Debt or Convertible Debt, shall be determined by reference to the notes or loans into which such bridge loans or Extendable Bridge Loans/Interim Debt or Convertible Debt are converted or for which such bridge loans or Extendable Bridge Loans/Interim Debt or Convertible Debt are exchanged at maturity and will be subject to other customary offers to repurchase or mandatory prepayments upon a change of control, asset sale or event of loss and customary acceleration rights after an event of default); *provided* that Refinancing Indebtedness in the form of Designated Earlier Maturing Debt may have a maturity date that is earlier than the Latest Maturity Date of the Indebtedness, Disqualified Stock or Preferred Stock being refunded, refinanced, replaced, redeemed, repurchased or retired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) to the extent that such Refinancing Indebtedness refinances (i) Subordinated Indebtedness, such Refinancing Indebtedness is Subordinated Indebtedness or (ii) Disqualified Stock or Preferred Stock, such Refinancing Indebtedness is Disqualified Stock or Preferred Stock, respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) shall not include (x) Indebtedness, Disqualified Stock or Preferred Stock of a Non-Loan Party Subsidiary that refinances Indebtedness, Disqualified Stock or Preferred Stock of the Borrowers or a Guarantor or (y) Indebtedness, Disqualified Stock or Preferred Stock of the Borrowers or Indebtedness, Disqualified Stock or Preferred Stock of a Restricted Subsidiary that refinances Indebtedness, Disqualified Stock or Preferred Stock of an Unrestricted Subsidiary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) to the extent such Refinancing Indebtedness is secured, the Liens securing such Refinancing Indebtedness have a Lien priority equal to or junior to the Indebtedness being refunded, refinanced, replaced, redeemed, repurchased or retired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) (1) Indebtedness, Disqualified Stock or Preferred Stock (i) of the Borrowers or any Restricted Subsidiaries of the Borrowers Incurred or assumed in connection with an acquisition of any assets (including Capital Stock), business or Person or any similar Investment and (ii) of any Person that is acquired by any Borrower Party or merged into or consolidated or amalgamated with any Borrower Party in accordance with the terms of this Agreement and (2) Indebtedness Incurred or Disqualified Stock or Preferred Stock issued or, in each case, assumed in anticipation of, or in connection with, an acquisition of any assets, business (including Capital Stock) or Person or any similar Investment; *provided*, *however*, that after giving Pro Forma Effect to such acquisition, merger, consolidation or amalgamation and the Incurrence of such Indebtedness, Disqualified Stock or Preferred Stock, the Borrowers would be permitted to Incur at least $1.00 of additional Indebtedness as Ratio Debt (such Indebtedness, Disqualified Stock and Preferred Stock issued, "**Ratio Acquisitions Debt**");

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*provided, further*, that such Indebtedness, Disqualified Stock or Preferred Stock, (A) other than with respect to the initial maturity date for Designated Earlier Maturing Debt, has a Stated Maturity that is no earlier than the Latest Maturity Date, (B) has a Weighted Average Life to Maturity at the time such Indebtedness is Incurred that is not less than the then longest remaining Weighted Average Life to Maturity of any then outstanding Term Loans; *provided*, that any such Indebtedness in the form of Designated Earlier Maturing Debt may have a Weighted Average Life to Maturity shorter than the then longest remaining Weighted Average Life to Maturity of any then outstanding Term Loans, (C) in the case of any revolving Indebtedness, has a Stated Maturity that is no earlier than the Maturity Date applicable to the Revolving Credit Facility and (D) shall for purposes of mandatory prepayments not be treated more favorably than the existing Term Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Indebtedness of any Borrower Party arising from netting services, overdraft protection or the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Indebtedness of any Borrower Party supported by a letter of credit or bank guarantee issued pursuant to any credit facility permitted hereunder, so long as such letter of credit has not been terminated and is in a principal amount not in excess of the stated amount of such letter of credit or bank guarantee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Contribution Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Indebtedness, Disqualified Stock or Preferred Stock of any Borrower Party consisting of (x) the financing of insurance premiums or (y) take-or-pay obligations contained in supply arrangements, in each case, in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) Indebtedness, Disqualified Stock or Preferred Stock of Non-Loan Party Subsidiaries in an aggregate principal amount or liquidation preference, as applicable, not to exceed the greater of (x) $345,000,000 and (y) 75.0% of Four Quarter Consolidated EBITDA, at any one time outstanding, *plus*, in the case of any refinancing of any Indebtedness, Disqualified Stock or Preferred Stock permitted under this <u>clause (t)</u> or any portion thereof, any Refinancing Expenses (it being understood that any Indebtedness Incurred or Disqualified Stock or Preferred Stock issued pursuant to this <u>clause (t)</u> shall cease to be deemed Incurred, issued or outstanding pursuant to this <u>clause (t)</u> but shall be deemed Incurred or issued and outstanding as Ratio Debt from and after the first date on which such Non-Loan Party Subsidiary could have Incurred such Indebtedness or issued such Disqualified Stock or Preferred Stock as Ratio Debt (to the extent such Non-Loan Party Subsidiary is able to Incur any Liens related thereto as Permitted Liens after such reclassification));

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) Indebtedness, Disqualified Stock or Preferred Stock of a joint venture to any Borrower Party and to the other holders of Equity Interests or participants of such joint venture, so long as the percentage of the aggregate amount of such Indebtedness, Disqualified Stock or Preferred Stock of such joint venture owed to such holders of its Equity Interests or participants of such joint venture does not exceed the percentage of the aggregate outstanding amount of the Equity Interests of such joint venture held by such holders or such participant's participation in such joint venture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Indebtedness Incurred or Disqualified Stock or Preferred Stock issued in a Qualified Receivables Financing or Qualified Receivables Factoring that is not recourse to any Borrower Party (except for Standard Securitization Undertakings) other than (x) a Receivables Subsidiary or (y) a Person described in the definition of "Factoring Transaction";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) Indebtedness owed on a short-term basis to banks and other financial institutions in the ordinary course of business of the Borrower Parties with such banks or financial institutions that arises in connection with ordinary banking arrangements, including cash management, cash pooling arrangements and related activities to manage cash balances of the Borrowers and their Subsidiaries and joint ventures including treasury, depository, overdraft, credit, purchasing or debit card, electronic funds transfer and other cash management arrangements and Indebtedness in respect of credit card programs, automatic clearinghouse arrangements and similar arrangements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Indebtedness, Disqualified Stock or Preferred Stock consisting of Indebtedness, Disqualified Stock or Preferred Stock issued by any Borrower Party to future, current or former officers, directors, managers, employees, consultants and independent contractors thereof or any direct or indirect parent thereof, their respective estates, heirs, family members, spouses or former spouses, in each case to finance the purchase or redemption of Equity Interests of a Borrower or any direct or indirect parent of a Borrower to the extent permitted under <u>Section</u> <u>7.05</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) customer deposits and advance payments received in the ordinary course of business from customers for goods purchased in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) Indebtedness Incurred by any Borrower Party in connection with bankers' acceptances, discounted bills of exchange, warehouse receipts or similar facilities or the discounting or factoring of receivables for credit management purposes, in each case Incurred or undertaken in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) Indebtedness to the extent constituting Attributable Debt arising in Sale/Leaseback Transactions or any industrial revenue bond issued to finance or refinance Indebtedness secured by any real property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) (i) guarantees Incurred in the ordinary course of business in respect of obligations to suppliers, customers, franchisees, lessors, licensees, sub-licensees and distribution partners and (ii) Indebtedness Incurred by any Borrower Party as a result of leases entered into by any Borrower Party or any direct or indirect parent of a Borrower in the ordinary course of business;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) the Incurrence by any Borrower Party of Indebtedness Incurred or Disqualified Stock or Preferred Stock issued on behalf, or representing guarantees of Indebtedness Incurred or Disqualified Stock or Preferred Stock issued by, joint ventures; *provided* that the aggregate principal amount or liquidation preference, as applicable, of Indebtedness Incurred or guaranteed or Disqualified Stock or Preferred Stock issued or guaranteed pursuant to this <u>clause (cc)</u> does not exceed the greater of (x) $115,000,000 and (y) 25.0% of Four Quarter Consolidated EBITDA at any one time outstanding, *plus*, in the case of any refinancing of any Indebtedness, Disqualified Stock or Preferred Stock permitted under this <u>clause (cc)</u> or any portion thereof, any Refinancing Expenses (it being understood that any Indebtedness Incurred or Disqualified Stock or Preferred Stock issued pursuant to this <u>clause (cc)</u> shall cease to be deemed Incurred, issued or outstanding pursuant to this <u>clause (cc)</u> but shall be deemed Incurred or issued and outstanding as Ratio Debt from and after the first date on which any Borrower Party could have Incurred or guaranteed such Indebtedness or issued or guaranteed such Disqualified Stock or Preferred Stock as Ratio Debt (to the extent any Borrower Party is able to Incur any Liens related thereto as Permitted Liens after such reclassification));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) Indebtedness, Disqualified Stock or Preferred Stock of any Borrower Party Incurred to finance or assumed in connection with an acquisition of any assets (including Capital Stock), business or Person in an aggregate principal amount or liquidation preference that does not exceed the greater of (x) $161,000,000 and (y) 35.0% of Four Quarter Consolidated EBITDA, at any one time outstanding, *plus*, in the case of any refinancing of any Indebtedness, Disqualified Stock or Preferred Stock permitted under this <u>clause (dd)</u> or any portion thereof, any Refinancing Expenses (it being understood that any Indebtedness Incurred or Disqualified Stock or Preferred Stock assumed pursuant to this <u>clause (dd)</u> shall cease to be deemed Incurred, issued or outstanding pursuant to this <u>clause (dd)</u> but shall be deemed Incurred or issued and outstanding as Ratio Debt from and after the first date on which any Borrower Party, as the case may be, could have Incurred such Indebtedness or issued such Disqualified Stock or Preferred Stock as Ratio Debt (to the extent any Borrower Party is able to Incur any Liens related thereto as Permitted Liens after such reclassification));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) Indebtedness, Disqualified Stock or Preferred Stock consisting of obligations of any Borrower Party under deferred compensation or other similar arrangements incurred by such Person in connection with the Transactions or any Permitted Investment or other Investment permitted under <u>Section</u> <u>7.05</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) unfunded pension fund and other employee benefit plan obligations and liabilities to the extent that they are permitted to remain unfunded under applicable law; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) Indebtedness, Disqualified Stock or Preferred Stock of any Borrower Party in an aggregate principal amount not greater than the aggregate amount of Restricted Payments that could be made at the time of such Incurrence pursuant to <u>clauses (5)</u>, <u>(9)</u>, <u>(10)</u>, <u>(11)</u>, <u>(22)</u> and <u>(24)</u> of the second paragraph under <u>Section</u> <u>7.05</u>; *provided* that the Incurrence of Indebtedness in reliance on amounts available for making Restricted Payments pursuant to <u>Section</u> <u>7.05</u> shall reduce the amount available under any such applicable clause by an amount equal to the outstanding principal amount of such Indebtedness.

Any Borrower Party may Incur Indebtedness or issue Disqualified Stock, and any Restricted Subsidiary may issue Preferred Stock, permitted by this <u>Section</u> <u>7.01</u> including through use of the same basket or other exception used to originally incur the Indebtedness being satisfied and discharged, to satisfy and discharge Indebtedness permitted to be incurred hereunder in the form of senior unsecured notes, at the same time as such senior unsecured notes are outstanding, so long as the net proceeds of such Indebtedness, Disqualified Stock or Preferred Stock, as applicable, are promptly deposited with the trustee to satisfy and discharge such Indebtedness in accordance with the indenture governing such Indebtedness.

For purposes of determining compliance with this <u>Section</u> <u>7.01</u>, (i) in the event that an item of Indebtedness, Disqualified Stock or Preferred Stock (or any portion thereof) meets the criteria of more than one of the categories of Permitted Debt or is entitled to be Incurred or issued as Ratio Debt, the Borrowers shall, in their sole discretion, at the time of Incurrence or issuance, divide, classify or reclassify, or at any later time divide, classify or reclassify, such item of Indebtedness, Disqualified Stock or Preferred Stock (or any portion thereof) in any manner that complies with this <u>Section</u> <u>7.01</u>; *provided* that all Indebtedness under this Agreement Incurred on or after the Closing Date shall be deemed to have been Incurred pursuant to <u>Section</u> <u>7.01(a)</u>, and the Borrowers shall not be permitted to reclassify all or any portion of Indebtedness Incurred pursuant to <u>Section</u> <u>7.01(a)</u> or <u>(b)</u> and (ii) in the event that the Borrowers shall classify Indebtedness Incurred on the date of determination as Incurred in part as Ratio Debt or as having been incurred under the Ratio-Based Incremental Facility and in part pursuant to one or more other clauses of this <u>Section</u> <u>7.01</u>, Consolidated Funded Indebtedness shall not include any such Indebtedness Incurred pursuant to one or more such other clauses of this <u>Section</u> <u>7.01</u>, and shall not give effect to any discharge of any Indebtedness from the proceeds of any such Indebtedness being disregarded for purposes of the calculation of the Consolidated Funded Indebtedness on such date of determination that otherwise would be included in Consolidated Funded Indebtedness. Accrual of interest or dividends, the accretion of accreted value, the accretion or amortization of original issue discount, the payment of interest or dividends in the form of additional Indebtedness with the same terms, the payment of dividends on Disqualified Stock or Preferred Stock in the form of additional shares of Disqualified Stock or Preferred Stock of the same class, the accretion of liquidation preference and increases in the amount of Indebtedness, Disqualified Stock or Preferred Stock outstanding solely as a result of fluctuations in the exchange rate of currencies or increases in the value of property securing Indebtedness will be deemed not to be an Incurrence of Indebtedness or issuance of Disqualified Stock or Preferred Stock for purposes of this <u>Section</u> <u>7.01</u>. Guarantees of, or obligations in respect of letters of credit relating to, Indebtedness that are otherwise included in the determination of a particular amount of Indebtedness shall not be included in the determination of such amount of Indebtedness; *provided* that the Incurrence of the Indebtedness represented by such guarantee or letter of credit, as the case may be, was in compliance with this <u>Section</u> <u>7.01</u>.

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For purposes of determining compliance with any Dollar-denominated restriction on the Incurrence of Indebtedness or the issuance of Disqualified Stock or Preferred Stock, the Dollar-equivalent principal amount or liquidation preference, as applicable, of Indebtedness, Disqualified Stock or Preferred Stock denominated in a foreign currency shall be calculated based on the relevant currency exchange rate in effect on the date such Indebtedness was Incurred, in the case of term debt, or first committed or first Incurred (whichever yields the lower Dollar-equivalent), in the case of revolving credit debt or debt financing to fund an acquisition, or first issued in the case of Disqualified Stock or Preferred Stock; *provided* that if such Indebtedness, Disqualified Stock or Preferred Stock is Incurred to refinance other Indebtedness, Disqualified Stock or Preferred Stock, as the case may be, denominated in a foreign currency, and such refinancing would cause the applicable Dollar-denominated restriction to be exceeded if calculated at the relevant currency exchange rate in effect on the date of such refinancing, such Dollar-denominated restriction shall be deemed not to have been exceeded so long as the principal amount or liquidation preference, as applicable, of such Refinancing Indebtedness does not exceed the principal amount or liquidation preference, as applicable, of such Indebtedness, Disqualified Stock or Preferred Stock, as the case may be, being refinanced (plus any Refinancing Expenses).

The principal amount or liquidation preference, as applicable, of any Indebtedness Incurred or Disqualified Stock or Preferred Stock issued to refinance other Indebtedness, Disqualified Stock or Preferred Stock, as the case may be, if Incurred or issued in a different currency from the Indebtedness, Disqualified Stock or Preferred Stock being refinanced, shall be calculated based on the currency exchange rate applicable to the currencies in which such respective Indebtedness, Disqualified Stock or Preferred Stock is denominated that is in effect on the date of such refinancing.

Section 7.02 <u>Limitations on Liens</u>. Create, incur, assume or suffer to exist any Lien upon any property or assets of any kind (real or personal, tangible or intangible) of any Borrower Party, whether now owned or hereafter acquired (each, a "**Subject Lien**") that secures obligations under any Indebtedness unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of Subject Liens on any Collateral, such Subject Lien is a Permitted Lien; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of any other asset or property, any Subject Lien if (i) the Obligations are equally and ratably secured with (or on a senior basis to, in the case such Subject Lien secures any Junior Financing) the obligations secured by such Subject Lien or (ii) such Subject Lien is a Permitted Lien.

Any Lien created for the benefit of the Secured Parties pursuant to the preceding <u>clause (b)</u> shall provide by its terms that such Lien shall be automatically and unconditionally be released and discharged upon the release and discharge of the Subject Lien that gave rise to the obligation to so secure the Obligations.

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No reference herein to Liens permitted hereunder (including Permitted Liens), including any statement or provision as to the acceptability of any Liens (including Permitted Liens), shall in any way constitute or be construed as to provide for an implied subordination of any rights of the Agents, the Lenders or other Secured Parties hereunder or arising under any of the other Loan Documents in favor of such Liens.

Section 7.03 <u>Fundamental Changes</u>. Merge, dissolve, liquidate, amalgamate, consolidate with or into another Person, or Dispose of (whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any Person (including, in each case, pursuant to an LLC Division or LP Division, or an allocation of assets to a Series LLC or Series LP), except that, (other than in the case of <u>clauses (a)</u>, <u>(b)</u>, or <u>(e)</u> below) so long as no Event of Default would result therefrom:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Restricted Subsidiary may merge, amalgamate or consolidate with (i) a Borrower (including a merger, the purpose of which is to reorganize a Borrower into a new jurisdiction); *provided* that (A) the applicable Borrower shall be a person organized under the laws of the United States, any state thereof or the District of Columbia, and the applicable Borrower shall be the continuing or surviving Person or the surviving Person shall expressly assume the obligations of such Borrower pursuant to documents reasonably acceptable to the Administrative Agent and (B) the surviving person shall provide any documentation and other information about such person as shall have been reasonably requested in writing by any Lender through the Administrative Agent that such Lender shall have reasonably determined is required by regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including Title III of the PATRIOT, or (ii) any one or more other Restricted Subsidiaries; *provided* that (x) any Restricted Subsidiary that is not a Controlled Non-U.S. Subsidiary or a FSHCO may not merge, amalgamate or consolidate with any Restricted Subsidiary that is a Controlled Non-U.S. Subsidiary or a FSHCO if such Controlled Non-U.S. Subsidiary or such FSHCO (which would still constitute a FSHCO) shall be the continuing or surviving Person and (y) when any Subsidiary Guarantor is merging, amalgamating or consolidating with another Restricted Subsidiary that is not a Subsidiary Guarantor either (A) the Subsidiary Guarantor shall be the continuing or surviving Person or (B) such merger, amalgamation or consolidation shall be deemed to constitute either an Investment or Disposition, as elected by the Borrowers, and such Investment must be a Permitted Investment or Indebtedness of a Restricted Subsidiary which is not a Subsidiary Guarantor in accordance with <u>Section</u> <u>7.01</u>, respectively or such Disposition must be a Disposition permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) any Restricted Subsidiary that is not a Subsidiary Guarantor may merge, amalgamate or consolidate with or into any other Restricted Subsidiary that is not a Subsidiary Guarantor and (ii) any Restricted Subsidiary (other than a Borrower) may liquidate or dissolve, or any Borrower Party may (if the validity, perfection and priority of the Liens securing the Obligations is not adversely affected thereby) change its legal form if the Borrower Representative determines in good faith that such action is in the best interest of the Holding Companies and their Subsidiaries and is not disadvantageous to the Lenders in any material respect (it being understood that in the case of any liquidation or

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dissolution of a Restricted Subsidiary that is (A) a Co-Borrower, such Subsidiary shall at or before the time of such dissolution cease to be a Co-Borrower under this Agreement in accordance with <u>Section</u> <u>11.03</u> or (B) a Loan Party, such Subsidiary shall at or before the time of such liquidation or dissolution transfer its assets to a Borrower or another Restricted Subsidiary that is a Loan Party in the same jurisdiction or a different jurisdiction reasonably satisfactory to the Administrative Agent unless such Disposition of assets is permitted hereunder; and in the case of any change in legal form, a Restricted Subsidiary that is a Co-Borrower or a Guarantor will remain a Co-Borrower or a Guarantor unless such Co-Borrower or Guarantor is otherwise permitted to cease being a Co-Borrower or a Guarantor hereunder);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Restricted Subsidiary (other than a Borrower) may Dispose of all or substantially all of its assets (upon voluntary liquidation or otherwise) to the Borrowers or to any Restricted Subsidiary; *provided* that if the transferor in such a transaction is (A) a Co-Borrower, such Subsidiary shall at or before the time of such dissolution cease to be a Co-Borrower under this Agreement in accordance with <u>Section</u> <u>11.03</u> or (B) a Loan Party, then either (i) the transferee must either be a Borrower or a Subsidiary Guarantor in the same jurisdiction or a different jurisdiction reasonably satisfactory to the Administrative Agent or (ii) to the extent such Disposition of assets shall be deemed to constitute either an Investment or Disposition, such Investment must be a Permitted Investment or Indebtedness of a Non-Loan Party Subsidiary in accordance with <u>Section</u> <u>7.01</u>, respectively, or such Disposition must be a Disposition permitted hereunder; *provided*, *however*, that a Borrower may Dispose of all or substantially all of its assets (upon voluntary liquidation or otherwise) to any Loan Party in the same jurisdiction as the disposing party or in another jurisdiction reasonably acceptable to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any Restricted Subsidiary (other than a Borrower) may merge, amalgamate or consolidate with, or dissolve into, any other Person in order to effect a Permitted Investment; *provided* that (i) the continuing or surviving Person shall, to the extent subject to the terms hereof, have complied with the requirements of <u>Section</u> <u>6.12</u>, (ii) to the extent constituting an Investment, such Investment must be a Permitted Investment, (iii) to the extent constituting a Disposition, such Disposition must be permitted hereunder and (iv) to the extent such Restricted Subsidiary is a CoBorrower, it shall cease to be a Co-Borrower in accordance with <u>Section</u> <u>11.03</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Borrower Parties may consummate the Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Holding Companies and any Restricted Subsidiary may effect a Permitted Tax Reorganization or Permitted IPO Reorganization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any Restricted Subsidiary (other than a Borrower) may merge, dissolve, liquidate, amalgamate, consolidate with or into another Person in order to effect a Disposition (whether in one transaction or in a series of transactions) of all or substantially all of its assets (whether now owned or hereafter acquired) to the extent such Disposition does not constitute an "Asset Sale" or which is otherwise permitted pursuant to <u>Section</u> <u>7.04</u> (other than Dispositions permitted by this <u>Section</u> <u>7.03</u>); *<u>provided</u>* that if such Restricted Subsidiary is a Co-Borrower, it shall cease to be a Co-Borrower in accordance with <u>Section</u> <u>11.03</u>;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any Restricted Subsidiary may merge, dissolve, liquidate, amalgamate, consolidate with or into another Person or Dispose of its assets if (i) such transaction is undertaken in good faith to improve the tax efficiency of the Borrowers and their Subsidiaries and (ii) after giving effect to such transaction, each of the security interest of the Collateral Agent in the Collateral, taken as a whole, and the value of the Guarantees, taken as a whole, is not materially impaired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Permitted Investment may be structured as a merger, consolidation or amalgamation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) for the avoidance of doubt, Dispositions of the type described in <u>clauses (n)</u>, <u>(w)</u>, and <u>(x)</u> in the definition of "Asset Sales";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the Borrower Parties may consummate any Permitted Core Business Disposition (subject to the requirements and conditions set forth elsewhere herein); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the Borrower Parties may consummate a Permitted Change of Control (subject to the requirements and conditions set forth elsewhere herein).

For the avoidance of doubt, notwithstanding anything else contained herein, any LLC Conversion shall be permitted under this Agreement and each other Loan Document.

Section 7.04 <u>Asset Sales</u>. Cause or make an Asset Sale, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) any Borrower Party, as the case may be, receives consideration (including by way of relief from, or by any other person assuming responsibility for, any liabilities, contingent or otherwise) at the time of such Asset Sale at least equal to the Fair Market Value (as determined at the time of contractually agreeing to such Asset Sale) of the assets sold or otherwise disposed of; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) except in the case of a Permitted Asset Swap, at least 75.0% of the consideration therefor received by any Borrower Party, as the case may be, is in the form of cash, Cash Equivalents or Replacement Assets; *provided*, that the amount of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any liabilities (as shown on the Borrowers' or such Restricted Subsidiary's most recent balance sheet or in the notes thereto for which internal financial statements are available immediately preceding such date or, if incurred or accrued subsequent to the date of such balance sheet, such liabilities that would have been reflected on the Borrowers' or such Restricted Subsidiary's balance sheet or in the footnotes thereto if such incurrence or accrual had taken place on or prior to the date of such balance sheet in the good faith determination of the Borrower) of any Borrower Party (other than liabilities that are by their terms subordinated to the Obligations) that are extinguished in connection with the transactions relating to such Asset Sale, or that are assumed by the transferee of any such assets or Equity Interests, in each case, pursuant to an agreement that releases or indemnifies any Borrower Party, as the case may be, from further liability;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any notes or other obligations or other securities or assets received by any Borrower Party from such transferee that are converted by any Borrower Party into cash or Cash Equivalents, or by their terms are required to be satisfied for cash or Cash Equivalents (to the extent of the cash or Cash Equivalents received), in each case, within 180 days of the receipt thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Designated Non-Cash Consideration received by any Borrower Party in such Asset Sale having an aggregate Fair Market Value, taken together with all other Designated Non-Cash Consideration received pursuant to this <u>subclause (c)</u> that is at that time outstanding, not to exceed the greater of (x) $207,000,000 and (y) 45.0% of Four Quarter Consolidated EBITDA, calculated at the time of the receipt of such Designated Non-Cash Consideration (with the Fair Market Value of each item of Designated Non-Cash Consideration being measured at the time received and without giving effect to subsequent changes in value); shall each be deemed to be Cash Equivalents for the purposes of this <u>clause (2)</u>.

Within 730 days after the applicable Borrowers' or any Restricted Subsidiary's receipt of the Net Cash Proceeds of any Asset Sale or Casualty Event, any Borrower Party may apply an amount equal to the Net Cash Proceeds from such Asset Sale or such Casualty Event, at its option:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) to prepay Loans and other Permitted Debt in accordance with <u>Section</u> <u>2.05(b)(ii)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) to make an investment in any one or more businesses, assets (other than working capital assets), or property or capital expenditures, in each case used or useful in a Similar Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) to make an investment (including capital expenditures) in any one or more businesses, properties (other than working capital assets) or assets (other than working capital assets) that replace the businesses, properties and/or assets that are the subject of such Asset Sale or Casualty Event, with any such investment made by way of a capital or other lease valued at the present value of the minimum amount of payments under such lease (as determined by the Borrower Representative in good faith); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) any combination of the foregoing; *provided* that the Borrower Parties will be deemed to have complied with the provisions described in <u>clause (2)</u> or <u>(3)</u> of this paragraph if and to the extent that, within 730 days after the Asset Sale that generated the Net Cash Proceeds, any Borrower Party, as applicable, has entered into and not abandoned or rejected a binding agreement to make an investment in compliance with the provision described in <u>clause (2)</u> or <u>(3)</u> of this paragraph, and that investment is thereafter completed within the later of (x) such 730 day period and (y) the later of (A) 180 days after the date of execution of such binding agreement and (B) the date on which such binding agreement terminates in accordance with its terms; *provided further* that the Borrowers may elect to deem expenditures that otherwise would be permissible reinvestments that occur prior to receipt of such Net Cash Proceeds to have been reinvested in accordance with the provisions of this <u>Section</u> <u>7.04</u> (it being understood that such deemed expenditures shall have been made no earlier than 365 days prior to the receipt of such Net Cash Proceeds).

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Pending the final application of any such amount of Net Cash Proceeds pursuant to <u>Section</u> <u>2.05(b)(ii)</u> and this <u>Section</u> <u>7.04</u>, any Borrower Party may temporarily reduce Indebtedness under the Revolving Credit Facility, or otherwise invest or utilize such Net Cash Proceeds in any manner not prohibited by this Agreement.

Section 7.05 <u>Restricted Payments.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) declare or pay any dividend or make any payment or distribution on account of the Borrowers' or any of their Restricted Subsidiaries' Equity Interests, including any payment made in connection with any merger, amalgamation or consolidation involving the Borrowers (other than (A) dividends or distributions by the Borrowers payable solely in Equity Interests (other than Disqualified Stock) of a Borrower; or (B) dividends or distributions by a Restricted Subsidiary so long as, in the case of any dividend or distribution payable on or in respect of any class or series of securities issued by a Restricted Subsidiary other than a Wholly Owned Restricted Subsidiary, any Borrower Party receives at least its pro rata share of such dividend or distribution in accordance with its Equity Interests in such class or series of securities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) purchase, redeem, defease or otherwise acquire or retire for value any Equity Interests of a Borrower or any direct or indirect parent of a Borrower, including in connection with any merger, amalgamation or consolidation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) make any principal payment on, or redeem, repurchase, defease or otherwise acquire or retire for value, in each case, prior to any scheduled repayment, sinking fund payment or maturity, any Subordinated Indebtedness, third-party Indebtedness secured by Liens on the Collateral that are junior to the Liens on the Collateral securing the Obligations or unsecured third-party Indebtedness of a Borrower or any Guarantor (other than the payment, redemption, repurchase, defeasance, acquisition or retirement of (A) Subordinated Indebtedness of a Borrower or any Guarantor in anticipation of satisfying a sinking fund obligation, principal installment or final maturity, in each case due within one year of the date of such payment, redemption, repurchase, defeasance, acquisition or retirement and (B) Indebtedness permitted under <u>Section</u> <u>7.01((i)</u>) in a principal amount, individually for any such Indebtedness, greater than the Threshold Amount (<u>collectively</u>, the "**Junior Financing**"); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) make any Restricted Investment;

(all such payments and other actions set forth in <u>clauses (1)</u> through <u>(4)</u> above being collectively referred to as "**Restricted Payments**"), unless, at the time of such Restricted Payment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [reserved];

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [reserved]; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) so long as no Event of Default has occurred and is continuing or would result thereof and such Restricted Payment, together with the aggregate amount of all other Restricted Payments made by the Borrower Parties after the Closing Date (including Restricted Payments permitted by <u>clause (1)</u> of the next succeeding paragraph, but excluding all other Restricted Payments permitted by the next succeeding paragraph), is less than the sum of, without duplication,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Retained Excess Cash Flow Amount (the "**Available Amount Growing Prong**"), *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) 100.0% of the aggregate net proceeds, including cash and the Fair Market Value of assets (other than cash), received by the Borrowers after the Closing Date from the issue or sale of Equity Interests of the Borrowers (other than Excluded Equity), including such Equity Interests issued upon exercise of warrants or options, *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) 100.0% of the aggregate amount of contributions to the capital of the Borrowers received in cash and the Fair Market Value of assets (other than cash) after the Closing Date (other than Excluded Equity), *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the principal amount of any Indebtedness, or the liquidation preference or Maximum Fixed Repurchase Price, as the case may be, of any Disqualified Stock, in each case, of any Borrower Party issued after the Closing Date (other than Indebtedness or Disqualified Stock issued to a Borrower Party or an employee stock ownership plan or trust established by any Borrower Party (other than to the extent such employee stock ownership plan or trust has been funded by any Borrower Party)) that, in each case, has been converted into or exchanged for Equity Interests in the Borrowers or any direct or indirect parent of the Borrowers (other than Excluded Equity), *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) 100.0% of the aggregate amount received by any Borrower Party in cash and the Fair Market Value of assets (other than cash) received after the Closing Date by any Borrower Party (less any amounts distributed as Leverage Excess Proceeds) from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the sale or other disposition (other than to any Borrower Party) of Restricted Investments made after the Closing Date made in reliance on this <u>Section</u> <u>7.05(d)</u> by the Borrower Parties and from repurchases and redemptions of such Restricted Investments from the Borrower Parties by any Person (other than any Borrower Party) and from repayments of loans or advances that constituted Restricted Investments made in reliance on this <u>Section</u> <u>7.05(d)</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the sale (other than to any Borrower Party or an employee stock ownership plan or trust established by any Borrower Party (other than to the extent such employee stock ownership plan or trust has been funded by any Borrower Party)) of the Equity Interests of an Unrestricted Subsidiary or joint venture, or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any distribution, dividend, conveyance or transfer from a joint venture or an Unrestricted Subsidiary (with respect to joint ventures, to the extent of investments in such joint ventures were made in reliance on this <u>Section</u> <u>7.05(d)</u>), *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) in the event any Unrestricted Subsidiary has been redesignated as a Restricted Subsidiary or has been merged, consolidated or amalgamated with or into, or transfers or conveys its assets to, or is liquidated into, any Borrower Party, in each case after the Closing Date, the Fair Market Value of the Investment of a Borrower in such Unrestricted Subsidiary at the time of such redesignation, combination or transfer (or of the assets transferred or conveyed, as applicable), other than in each case to the extent that the designation of such Subsidiary as an Unrestricted Subsidiary constituted a Permitted Investment, *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the aggregate amount of Retained Declined Proceeds since the Closing Date; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the amount of any De Minimis Asset Sale Proceeds; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the aggregate face amount of any Indebtedness of a Borrower and/or any Restricted Subsidiary that is cancelled, released or otherwise terminated by virtue of the incurrence or assumption by any Unrestricted Subsidiary of any such Indebtedness, including by way of an "exchange" or similar transaction; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) the fair market value of any Indebtedness secured on a pari passu basis to the Term Loans or any Junior Financing that has been contributed to a Borrower and/or any Restricted Subsidiary in accordance with <u>Section</u> <u>10.07(j)</u> (or any comparable provision under the definitive documentation governing such Indebtedness, as applicable), solely to the extent such Indebtedness is cancelled, released or otherwise terminated in connection therewith; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) the greater of (x) $460,000,000 and (y) 100.0% of Four Quarter Consolidated EBITDA (the "**Available Amount Starter Prong**").

Notwithstanding anything to the contrary, this <u>Section</u> <u>7.05</u> will not prohibit:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the payment of any dividend or distribution or consummation of any redemption within 60 days after the date of declaration thereof or the giving of a redemption notice related thereto, if at the date of declaration or notice such payment would have complied with the provisions of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a. the redemption, repurchase, retirement or other acquisition of any Equity Interests ("**Retired Capital Stock**") of a Borrower or any direct or indirect parent of a Borrower, or Junior Financing of any Borrower or any Subsidiary Guarantor, in exchange for, or out of the proceeds of the issuance or sale of, Equity Interests of a Borrower or any direct or indirect parent of a Borrower or contributions to the equity capital of a Borrower (other than Excluded Equity) (collectively, including any such contributions, "**Refunding Capital Stock**");

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the declaration and payment of accrued dividends on the Retired Capital Stock out of the proceeds of the issuance or sale (other than to a Restricted Subsidiary of a Borrower or to an employee stock ownership plan or any trust established by any Borrower Party) of Refunding Capital Stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. if immediately prior to the retirement of the Retired Capital Stock, the declaration and payment of dividends thereon was permitted pursuant to this covenant and has not been made as of such time (the "**Unpaid Amount**"), the declaration and payment of dividends on the Refunding Capital Stock (other than Refunding Capital Stock the proceeds of which were used to redeem, repurchase, retire or otherwise acquire any Equity Interests of a Borrower or any direct or indirect parent of a Borrower) in an aggregate amount no greater than the Unpaid Amount (with the payment of such Unpaid Amount being treated as a payment under the applicable provision);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the prepayment, redemption, defeasance, repurchase or other acquisition or retirement of Junior Financing of a Borrower or any Subsidiary Guarantor made by exchange for, or out of the proceeds of the Incurrence of, Refinancing Indebtedness thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the prepayment, redemption, purchase, defeasance or other satisfaction of any Indebtedness (a) existing at the time a Person becomes a Subsidiary or (b) assumed in connection with the acquisition of assets, in each case so long as such Indebtedness was not incurred in contemplation of, such Person becoming a Subsidiary or such acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the purchase, retirement, redemption or other acquisition (or Restricted Payments to the Borrowers or any direct or indirect parent of a Borrower to finance any such purchase, retirement, redemption or other acquisition) for value of Equity Interests (including related stock appreciation rights or similar securities) of a Borrower or any direct or indirect parent of a Borrower held directly or indirectly by any future, present or former employee, officer, director, manager, consultant or independent contractor of a Borrower or any direct or indirect parent of a Borrower or any Subsidiary of a Borrower or their estates, heirs, family members, spouses or former spouses or permitted transferees (including for all purposes of this <u>clause (5)</u>, Equity Interests held by any entity whose Equity Interests are held by any such future, present or former employee, officer, director, manager, consultant or independent contractor or their estates, heirs, family members, spouses or former spouses or permitted transferees) pursuant to any management equity plan or stock option plan or any other management or employee benefit plan or other agreement or arrangement or any stock subscription or shareholder or similar agreement; *provided*, *however*, that the aggregate amounts paid under this <u>clause (5)</u> shall not exceed (A) the greater of (x) $115,000,000 and (y) 25.0% of Four Quarter Consolidated EBITDA in any calendar year or (B) subsequent to the consummation of a public common Equity Offering, the greater of (x) $230,000,000 and (y) 50.0% of Four Quarter

Consolidated EBITDA in any calendar year (in each case, with unused amounts under this <u>clause (5)</u> permitted to be carried forward to any succeeding calendar years and amounts projected by the Borrowers in good faith to be available under this <u>clause (5)</u> in the immediately succeeding calendar year permitted to be carried back to the then current calendar year); *provided, further*, *however*, that such amount in any calendar year may be increased by an amount not to exceed:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the cash proceeds received by a Borrower from the issuance or sale of Equity Interests (other than Disqualified Stock) of a Borrower or any direct or indirect parent of a Borrower (to the extent contributed to a Borrower), in each case, to any future, present or former employees, officers, directors, managers, consultants or independent contractors of a Borrower or its Restricted Subsidiaries or any direct or indirect parent of a Borrower that occurs on or after the Closing Date; *provided* that the amount of such cash proceeds utilized for any such repurchase, retirement, other acquisition or dividend will not increase the amount available for Restricted Payments under <u>clause (c)</u> of the immediately preceding paragraph; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the cash proceeds of key man life insurance policies received by the Borrowers or their Restricted Subsidiaries or any direct or indirect parent of a Borrower (to the extent contributed to a Borrower) after the Closing Date; *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the amount of any cash bonuses otherwise payable to employees, officers, directors, managers, consultants or independent contractors of a Borrower or its Restricted Subsidiaries or any direct or indirect parent of a Borrower that are foregone in return for the receipt of Equity Interests; *less*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. the amount of cash proceeds described in <u>subclause (a)</u>, <u>(b)</u> or <u>(c)</u> of this <u>clause (5)</u> previously used to make Restricted Payments pursuant to this <u>clause (5)</u> (*provided* that the Borrowers may elect to apply all or any portion of the aggregate increase contemplated by <u>subclauses (a)</u>, <u>(b)</u> and <u>(c)</u> above in any calendar year);

*provided*, *further*, that cancellation of Indebtedness owing to any Borrower Party from any future, current or former officer, director, employee, manager, consultant or independent contractor (or any permitted transferees thereof) of any Borrower Party or any direct or indirect parent of a Borrower, in connection with a repurchase of Equity Interests of a Borrower or any direct or indirect parent of a Borrower from such Persons will be deemed not to constitute a Restricted Payment for purposes of this <u>Section</u> <u>7.05</u> or any other provisions of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) the declaration and payment of dividends or distributions to holders of any class or series of Disqualified Stock of any Borrower Party and any class or series of Preferred Stock of any Restricted Subsidiaries issued or Incurred in accordance with the covenant described in <u>Section</u> <u>7.01</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) so long as no Event of Default has occurred and is continuing or would result thereof, the declaration and payment of dividends or distributions to holders of any class or series of Designated Preferred Stock (other than Disqualified Stock) and the declaration and payment of dividends to the Borrowers or any direct or indirect parent of the Borrowers, the proceeds of which will be used to fund the payment of dividends to holders of any class or series of Designated Preferred Stock (other than Disqualified Stock) of the Borrowers or any direct or indirect parent of a Borrower issued after the Closing Date; *provided* that (A) the Consolidated Interest Coverage Ratio on a Pro Forma Basis is 2.00:1.00 or greater and (B) the aggregate amount of dividends declared and paid pursuant to this <u>clause (7)</u> does not exceed the net cash proceeds actually received by a Borrower from the sale (or the contribution of the net cash proceeds from the sale) of Designated Preferred Stock;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) any Restricted Payments made in connection with the consummation of the Transactions, including any dividends, payments or loans made to a Borrower or any direct or indirect parent of a Borrower to enable it to make any such payments or any future payments to employees of a Borrower, any Restricted Subsidiary of a Borrower or any direct or indirect parent of a Borrower under agreements entered into in connection with the Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) so long as no Event of Default has occurred and is continuing or would result thereof, the declaration and payment of dividends on the Borrowers' common Equity Interests (or the payment of dividends to any direct or indirect parent of a Borrower to fund the payment by any direct or indirect parent of a Borrower of dividends on such entity's common Equity Interests) of the sum of (x) up to 7.0% per annum of the cash proceeds net of underwriting fees received by a Borrower from any public offering of Equity Interests or contributed to a Borrower by any direct or indirect parent of a Borrower from any public offering of Equity Interests, other than public offerings with respect to the Borrowers' common Equity Interests registered on Form S-4 or S-8 or successor form thereto and other than any public sale constituting Excluded Contributions *plus* (y) an aggregate amount per annum not to exceed 7.0% of Market Capitalization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) Restricted Payments that are made with Excluded Contributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) Restricted Payments in an aggregate amount taken together with all other Restricted Payments made pursuant to this <u>clause (11)</u> not to exceed the greater of (x) $230,000,000 and (y) 50.0% of Four Quarter Consolidated EBITDA (this <u>clause (11)</u>, the "**General RP Basket**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) in the case of any Junior Financing, (i) the payment of all regularly scheduled principal, interest, fees and premiums, and mandatory prepayments, mandatory redemptions and mandatory purchases, in each case pursuant to the terms governing any Junior Financing as in effect on the date of incurrence or issuance (including in connection with a refinancing thereof) , (ii) the payments of indemnities and expenses, (iii) the payment of customary closing, consent and similar fees related to any Junior Financing, (iv) Permitted Refinancings thereof, (v) conversions of Junior Financing into Equity Interests of a Borrower or any direct or indirect parent and (vi) any principal payment on, defeasance, redemption, repurchase, exchange or other acquisition or retirement thereof in an amount not to exceed the sum of (x) the greater of (I) $230,000,000 and (II) 50.0% of Four Quarter Consolidated EBITDA, *plus* (y) amounts reallocated, at the Borrowers' option, from the General RP Basket (this <u>sub-clause (vi)</u>, the "**General Restricted Debt Payments Basket**");

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) for so long as (A) a Borrower or any of their Subsidiaries is a partnership or disregarded entity for federal, state or local income tax purposes, Restricted Payments, directly or indirectly, to a Holding Company or its direct or indirect owners in amounts required for a Holding Company or such owners to pay federal, state, local or non-U.S. income Taxes (and franchise or other similar Taxes imposed in lieu of income Taxes) ("**Income Taxes**") attributable to a Borrower and each Subsidiary that is so treated (assuming, for purposes of calculation, that the direct or indirect owners of such Borrower or such Subsidiary to whom such income is allocable for applicable Income Tax purposes are subject to the highest Consolidated Income Tax rates applicable to an individual residing in San Francisco, California, or New York, New York (whichever is greater) during the period that the income was earned) taking into account the character of the income as capital gain or ordinary income, the deductibility of any state and local taxes assuming that each direct or indirect owner has already deducted the maximum amount permitted under Section 164(b)(6) or (B) a Borrower or any of its Subsidiaries are members of a group filing a consolidated, combined, affiliated or unitary income tax return with such Holding Company or any other direct or indirect parent of such Borrower, Restricted Payments, directly or indirectly, to such Holding Company or other direct or indirect parent of such Borrower in amounts required for the applicable Holding Company or such other parent to pay federal, state, local or non-U.S. income Taxes (and franchise or other similar Taxes imposed in lieu of income Taxes) imposed on such parent to the extent such Taxes are attributable to such Borrower and its applicable Subsidiaries; *provided*, *however*, that (I) the amount of such payments described in this <u>clause (B)</u> does not, in the aggregate, exceed the amount that the applicable Borrower and its Subsidiaries that are members of such consolidated, combined, affiliated or unitary group would have been required to pay in respect of such Taxes in respect of such year if such Borrower and its Subsidiaries paid such Taxes directly on a separate company basis or as a standalone consolidated, combined affiliated or unitary income (or similar) tax group (reduced by any such Taxes paid directly by the Borrowers or any Restricted Subsidiary to the relevant taxing authority for such tax year) and (II) the cash distribution made pursuant to this <u>clause (13)</u> in respect of any Taxes attributable to any Unrestricted Subsidiaries of a Borrower may be made only to the extent that any such Unrestricted Subsidiaries have made cash payments for such purposes to any Borrower Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) the declaration and payment of dividends, other distributions or other amounts to, or the making of loans to the Holding Companies or any other direct or indirect parent of the Borrowers, in the amount required for such entity to, if applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. pay amounts equal to the amounts required for the Holding Companies or any other direct or indirect parent of the Borrowers to pay fees and expenses (including franchise and similar Taxes), customary salary, bonus and other benefits payable to, and indemnities provided to or on behalf of, officers, employees, directors, managers, consultants or independent contractors of the Holding Companies or any other direct or indirect parent of a Borrower, if applicable, and general corporate operating (including, without limitation, expenses related to auditing and other accounting matters) and overhead costs and expenses of the Borrowers or any direct or indirect parent of the Borrowers, if applicable, in each case to the extent such fees, expenses, salaries, bonuses, benefits and indemnities are attributable to the ownership or operation of the Borrowers and its Subsidiaries;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. pay, if applicable, amounts equal to amounts required for a Holding Company or any direct or indirect parent of a Borrower to pay interest and/or principal on Indebtedness the proceeds of which have been contributed to a Borrower (other than as Excluded Equity) and that has been guaranteed by, and is otherwise considered Indebtedness of, any Borrower Party Incurred in accordance with <u>Section</u> <u>7.01</u> (except to the extent any such payments have otherwise been made by any such guarantor);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. pay fees and expenses incurred by the Holding Companies or any other direct or indirect parent of a Borrower related to (i) the maintenance of such parent entity of its corporate or other entity existence and performance of its obligations under this Agreement, (ii) any unsuccessful equity or debt offering of such parent entity (or any debt or equity offering from which such parent does not receive any proceeds) and (iii) any equity or debt issuance, incurrence or offering, any disposition or acquisition or any investment transaction by any Borrower Party (or any acquisition of or investment in any business, assets or property that will be contributed to any Borrower Party as part of the same or a related transaction) permitted by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. make payments (i) to Sponsor pursuant to or contemplated by any Management Agreement or (ii) to or on behalf of Sponsor for any other financial, advisory, financing, underwriting or placement services or in respect of other investment banking activities, including, without limitation, in connection with acquisitions or divestitures, including in connection with the consummation of the Transactions, which payments in the case of <u>clause (ii)</u> are (x) made pursuant to agreements with Sponsor or (y) approved in respect of such activities by a majority of the Board of Directors of a Borrower or any direct or indirect parent of a Borrower in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. pay franchise and excise taxes, and other fees, taxes and expenses in connection with any ownership of the Borrowers or any of their Subsidiaries or required to maintain their organizational existences;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. make payments for the benefit of any Borrower Party to the extent such payments could have been made by any Borrower Party because such payments (x)(i) would not otherwise be Restricted Payments or (ii) would be Restricted Payments that would be permitted to be made by any Borrower Party pursuant to this covenant: *provided* that any payment made pursuant to this <u>clause (f)(x)(ii)</u> shall, if applicable, reduce capacity under the Restricted Payment exception or basket that would have been utilized if such payment were made directly by any Borrower Party and (y) would be permitted by <u>Section</u> <u>6.18</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. make Restricted Payments to any direct or indirect parent of a Borrower to finance, or to any direct or indirect parent of a Borrower for the purpose of paying to any other direct or indirect parent of a Borrower to finance, any Investment that, if consummated by any Borrower Party, would be a Permitted Investment or other Investment permitted by <u>Section</u> <u>7.05</u> (other than this <u>clause (g)</u>); *provided* that (a) such Restricted

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Payment is made substantially concurrently with the closing of such Investment and (b) promptly following the closing thereof, such direct or indirect parent of the a Borrower causes (i) all property acquired (whether assets or Equity Interests) to be contributed to any Borrower Party or (ii) the merger, consolidation or amalgamation (to the extent permitted by <u>Section</u> <u>7.03</u>) of the Person formed or acquired into any Borrower Party in order to consummate such acquisition or Investment, in each case, in accordance with the requirements of <u>Section</u> <u>6.12</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) (i) repurchases of Equity Interests of a Borrower or any direct or indirect parent of a Borrower deemed to occur upon exercise of stock options or warrants if such Equity Interests represent a portion of the exercise price of such options or warrants, (ii) payments made or expected to be made by any Borrower Party in respect of withholding or similar taxes payable or expected to be payable by any future, present or former director, officer, employee, manager, consultant or independent contractor of a Borrower or any direct or indirect parent of a Borrower or any Subsidiary of a Borrower (or their respective Affiliates, estates or immediate family members) in connection with the exercise of stock options or the grant, vesting or delivery of Equity Interests of a Borrower or any direct or indirect parent of a Borrower and (iii) loans or advances to officers, directors, employees, managers, consultants and independent contractors of a Borrower or any direct or indirect parent of a Borrower or any Subsidiary of a Borrower in connection with such Person's purchase of Equity Interests of a Borrower or any direct or indirect parent of a Borrower; *provided* that no cash is actually advanced pursuant to this <u>subclause (iii)</u> other than to pay taxes due in connection with such purchase, unless immediately repaid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) purchases of receivables pursuant to a Receivables Repurchase Obligation in connection with a Qualified Receivables Factoring or Qualified Receivables Financing and the payment or distribution of Receivables Fees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) payments or distributions to satisfy dissenters' rights, pursuant to or in connection with a consolidation, merger, amalgamation or transfer of assets that complies with the provisions of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) the distribution, as a dividend or otherwise, of shares of Capital Stock of, or Indebtedness owed to any Borrower Party by, Unrestricted Subsidiaries (other than Unrestricted Subsidiaries the primary assets of which are cash and/or Cash Equivalents);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19) the payment of cash in lieu of the issuance of fractional shares of Equity Interests in connection with any merger, consolidation, amalgamation or other business combination, or in connection with any dividend, distribution or split of or upon exercise, conversion or exchange of Equity Interests, warrants, options or other securities exercisable or convertible into, Equity Interests of a Borrower or any direct or indirect parent of a Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20) Restricted Payments that are made from the Net Cash Proceeds of a Sale/Leasebacks Transaction of the Specified Real Property; *provided* that such sale is for at least Fair Market Value (as determined in good faith by the Borrower Representative on the date on which a definitive agreement for such Sale/Leaseback Transaction was entered into);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21) the making of payments, directly or indirectly (i) to either Sponsor pursuant to or contemplated by the Management Agreement or (ii) to or on behalf of either Sponsor for any other financial advisory, financing, underwriting or placement services or in respect of other investment banking activities, including, without limitation, in connection with acquisitions or divestitures, including in connection with the consummation of the Transactions, which payments in the case of <u>clause (ii)</u> are (x) made pursuant to agreements with either Sponsor or (y) approved in respect of such activities by a majority of the Board of Directors of a Borrower or any direct or indirect parent of a Borrower in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22) a. any Restricted Payment of the type described in <u>clause (1)</u> or <u>(2)</u> of the definition thereof, so long as immediately after giving effect to the making of such Restricted Payment on a Pro Forma Basis, (i) no Event of Default has occurred and is continuing and (ii) the Consolidated First Lien Net Leverage Ratio does not exceed 5.75:1.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. any Restricted Payment of the type described in <u>clause (3)</u> of the definition thereof, so long as immediately after giving effect to the making of such Restricted Payment on a Pro Forma Basis, (i) no Event of Default has occurred and is continuing and (ii) the Consolidated First Lien Net Leverage Ratio does not exceed 6.00:1.00; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. any Restricted Payment of the type described in <u>clause (4)</u> of the definition thereof, so long as immediately after giving effect to the making of such Restricted Payment on a Pro Forma Basis, (i) no Event of Default has occurred and is continuing and (ii) the Consolidated First Lien Net Leverage Ratio does not exceed 6.25:1.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23) [Reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24) any Restricted Payment made with any Leverage Excess Proceeds, so long as immediately after giving effect to the making of such Restricted Payment on a Pro Forma Basis no Event of Default has occurred and is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(25) any payment that is intended to prevent any Indebtedness from being treated as an "applicable high yield discount obligation" within the meaning of Section 163(i)(1) of the Code; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(26) any Restricted Payment made with any Permitted Core Business Disposition Leverage Excess Proceeds.

For purposes of <u>clauses (13)</u> and <u>(14)</u> above, taxes shall include all interest and penalties with respect thereto and all additions thereto.

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As of the Closing Date, all of the Borrowers' Subsidiaries will be Restricted Subsidiaries. The Borrowers will not permit any Restricted Subsidiary to become an Unrestricted Subsidiary, or any Unrestricted Subsidiary to become a Restricted Subsidiary, except pursuant to the definition of "Unrestricted Subsidiary". For purposes of designating any Restricted Subsidiary as an Unrestricted Subsidiary, all outstanding Investments by the Borrower Parties (except to the extent repaid) in the Subsidiary so designated will be deemed to be Restricted Payments or Permitted Investments in an amount determined as set forth in the last sentence of the definition of "Investments". Such designation will only be permitted if a Restricted Payment or Permitted Investment in such amount would be permitted at such time of designation and if such Subsidiary otherwise meets the definition of an Unrestricted Subsidiary. Unrestricted Subsidiaries will not be subject to any of the restrictive covenants set forth in this Agreement.

For purposes of this <u>Section</u> <u>7.05</u>, if any Investment or Restricted Payment (or a portion thereof) would be permitted pursuant to one or more provisions described above and/or one or more of the exceptions contained in the definition of "Permitted Investments," the Borrowers may divide and classify such Investment or Restricted Payment (or a portion thereof) in any manner that complies with this <u>Section</u> <u>7.05</u> and may later divide and reclassify any such Investment or Restricted Payment so long as the Investment or Restricted Payment (as so divided and/or reclassified) would be permitted to be made in reliance on the applicable exception as of the date of such reclassification; *provided* that any Restricted Payments made in reliance on <u>clause (24)</u> above shall not be permitted to be reclassified as made pursuant to any other provision described above and shall be deemed at all times to have been made in reliance on <u>clause (24)</u>.

Section 7.06 <u>Burdensome Agreements</u>. Permit any of their Restricted Subsidiaries to create or otherwise cause or suffer to exist or become effective any consensual encumbrance or consensual restriction on the ability of any Restricted Subsidiary to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (i) pay dividends or make any other distributions to any Borrower Party on its Capital Stock; or (ii) pay any Indebtedness owed to any Borrower Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) make loans or advances to any Borrower Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) create, incur, assume or suffer to exist Liens on the Collateral of such Person for the benefit of the Lenders with respect to the Facilities and the Obligations or under the Loan Documents; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) sell, lease or transfer any of its properties or assets to any Borrower Party.

However, the preceding restrictions will not apply to encumbrances or restrictions existing under or by reason of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) contractual encumbrances or restrictions of any Borrower Party in effect on the Closing Date, including pursuant to this Agreement and the other Loan Documents, related Swap Contracts and Indebtedness permitted pursuant to <u>Section</u> <u>7.01(c)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) applicable law or any applicable rule, regulation or order;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) any agreement or other instrument of a Person acquired by or merged, amalgamated or consolidated with or into any Borrower Party or an Unrestricted Subsidiary that is designated a Restricted Subsidiary that was in existence at the time of such acquisition (or at the time it merges with or into any Borrower Party or assumed in connection with the acquisition of assets from such Person (but, in each case, not created in contemplation thereof)), which encumbrance or restriction is not applicable to any Person, or the properties or assets of any Person, other than the Person, or the property or assets of the Person, so acquired or designated; *provided* that in connection with a merger, amalgamation or consolidation under this <u>clause (4)</u>, if a Person other than any Borrower Party is the successor company with respect to such merger, amalgamation or consolidation, any agreement or instrument of such Person or any Subsidiary of such Person, shall be deemed acquired or assumed, as the case may be, by any Borrower Party, as the case may be, at the time of such merger, amalgamation or consolidation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) customary encumbrances or restrictions contained in contracts or agreements for the sale of assets applicable to such assets pending consummation of such sale, including customary restrictions with respect to a Restricted Subsidiary imposed pursuant to an agreement entered into for the sale or disposition of Capital Stock or assets of such Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) restrictions on cash or other deposits or net worth imposed by customers under contracts entered into in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) customary provisions in operating or other similar agreements, asset sale agreements and stock sale agreements entered into in connection with the entering into of such transaction, which limitation is applicable only to the assets that are the subject of those agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) purchase money obligations for property acquired and Capitalized Lease Obligations, to the extent such obligations impose restrictions of the nature discussed in <u>clause (c)</u> or <u>(d)</u> in the first paragraph of this <u>Section</u> **<u>7</u>**<u>.06</u> on the property so acquired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) customary provisions contained in leases, sub-leases, licenses, sublicenses, contracts and other similar agreements entered into in the ordinary course of business to the extent such obligations impose restrictions of the type described in <u>clause (c)</u> or <u>(d)</u> in the first paragraph of this <u>Section</u> <u>7.06</u> on the property subject to such lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) any encumbrance or restriction effected in connection with a Qualified Receivables Factoring or Qualified Receivables Financing that, in the good faith determination of the Borrower Representative, is necessary or advisable to effect such Qualified Receivables Factoring or Qualified Receivables Financing, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) any encumbrance or restriction contained in other Indebtedness, Disqualified Stock or Preferred Stock of any Borrower Party that is Incurred subsequent to the Closing Date pursuant to <u>Section</u> <u>7.01</u>, *provided* that (i) such encumbrances and restrictions contained in any agreement or instrument will not materially affect the Borrowers' ability to make anticipated principal or interest payments under this Agreement (as determined by a Borrower or a direct or indirect parent of a Borrower in good faith) or (ii) such encumbrances and restrictions contained in any agreement or instrument taken as a whole are not materially less favorable to the Lenders than the encumbrances and restrictions contained in this Agreement (as determined by the Borrower Representative in good faith);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) any encumbrance or restriction contained in secured Indebtedness otherwise permitted to be Incurred pursuant to <u>Sections 7.01</u> and <u>7.02</u> to the extent limiting the right of the debtor to dispose of the assets securing such Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) any encumbrance or restriction arising or agreed to in the ordinary course of business, not relating to any Indebtedness, and that do not, individually or in the aggregate, (x) detract from the value of the property or assets of any Borrower Party in any manner material to any Borrower Party or (y) materially affect the Borrowers' ability to make future principal or interest payments under this Agreement, in each case, as determined by the Borrowers in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) customary provisions in joint venture agreements or arrangements and other similar agreements or arrangements relating solely to the applicable joint venture; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) any encumbrances or restrictions of the type referred to in <u>Section</u> <u>7.06(a)</u>, <u>(b)</u>, <u>(c)</u> and <u>(d)</u> imposed by any amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings of the contracts, instruments or obligations referred to in the immediately preceding <u>clauses (1)</u> through <u>(14)</u> above; *provided* that such encumbrances and restrictions contained in any such amendment, modification, restatement, renewal, increase, supplement, refunding, replacement or refinancing are, in the good faith judgment of the Borrower Representative, not materially more restrictive, taken as a whole, than the encumbrances and restrictions prior to such amendment, modification, restatement, renewal, increase, supplement, refunding, replacement or refinancing.

For purposes of determining compliance with this <u>Section</u> <u>7.06</u>, (i) the priority of any Preferred Stock in receiving dividends or liquidating distributions prior to dividends or liquidating distributions being paid on common stock shall not be deemed a restriction on the ability to make distributions on Capital Stock and (ii) the subordination of loans or advances made to any Borrower Party to other Indebtedness Incurred by the Borrowers or any such Restricted Subsidiary shall not be deemed a restriction on the ability to make loans or advances.

Section 7.07 <u>[Reserved]</u>.

Section 7.08 <u>Financial Covenant</u>. As of the end of each fiscal quarter of the Borrowers (commencing with the second full fiscal quarter after the Closing Date) and only if the aggregate amount of L/C Obligations and Revolving Credit Loans outstanding as of the end of such fiscal quarter (excluding (A) Cash Collateralized Letters of Credit, (B) undrawn Letters of Credit, and (C) for the first four full fiscal quarters after the Closing Date, any Revolving Credit Loans borrowed on the Closing Date) exceeds 40.0% of the aggregate amount of all Revolving Credit Commitments in effect as of such date, permit the Consolidated First Lien Net Leverage Ratio as of the end of such fiscal quarter of the Borrowers to be greater than 10.15:1.00 (the "**Financial Covenant**").

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Section 7.09 <u>Holding Companies</u>. The Holding Companies, shall not conduct, transact or otherwise engage in any material business or operations; *provided*, that the following shall be permitted in any event: (i) its ownership of the Capital Stock of the Borrower Parties, other Holding Companies and any Subsidiary of the Holding Companies (that is not a Borrower or a Subsidiary of a Borrower) which is formed solely for purposes of acting as a co-obligor with respect to any Qualified Holding Company Indebtedness and which does not conduct, transact or otherwise engage in any material business or operation, and, in each case, activities incidental thereto; (ii) the entry into, and the performance of its obligations with respect to the Loan Documents (including any Specified Refinancing Debt or any New Term Facility or any New Revolving Facility), any Refinancing Notes, any Incremental Equivalent Debt, any Junior Financing Documentation, any Ratio Debt documentation, any Ratio Acquisitions Debt documentation, any documentation relating to any Permitted Refinancing of the foregoing or documentation relating to the Indebtedness otherwise permitted by this <u>Section</u> <u>7.09</u> and the Guarantees permitted by <u>clause (v)</u> below; (iii) the consummation of the Transactions; (iv) the performing of activities (including, without limitation, cash management activities) and the entry into documentation with respect thereto, in each case, permitted by this Agreement for the Holding Companies to enter into and perform; (v) the payment of dividends and distributions (and other activities in lieu thereof permitted by this Agreement), the making of contributions to the capital of its Subsidiaries and Guarantees of Indebtedness permitted to be incurred hereunder by any Borrower Party) and the Guarantees of other obligations not constituting Indebtedness; (vi) the maintenance of its legal existence (including the ability to incur fees, costs and expenses relating to such maintenance and performance of activities relating to its officers, directors, managers and employees and those of its Subsidiaries); (vii) taking actions in furtherance of and consummating a Qualified IPO and fulfilling all initial and ongoing obligations related thereto; (viii) the performing of activities in preparation for and consummating any public offering of its common stock or any other issuance or sale of its Capital Stock (other than Disqualified Stock) including converting into another type of legal entity; (ix) the participation in tax, accounting and other administrative matters, including compliance with applicable Laws and legal, tax and accounting matters related thereto and activities relating to its officers, directors, managers and employees; (x) the holding of any cash and Cash Equivalents (but not operating any property); (xi) the entry into and performance of its obligations with respect to contracts and other arrangements, including the providing of indemnification to officers, managers, directors and employees; and (xii) any activities incidental to the foregoing. No Holding Company shall create, incur, assume or suffer to exist any Lien on any Capital Stock of any Borrower Party (other than Liens pursuant to any Loan Document and non-consensual Liens arising solely by operation of Law and any Permitted Liens) and shall not incur any Indebtedness (other than in respect of Disqualified Stock, Qualified Holding Company Indebtedness, Indebtedness between the Holding Companies and any of their Restricted Subsidiaries that is permitted by <u>Section</u> <u>7.01</u> and subordinated pursuant to the terms of the Intercompany Subordination Agreement (or pledged in favor of the Collateral Agent, as applicable) or Guarantees permitted above and liabilities imposed by Law, including Tax liabilities).

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**ARTICLE VIII** 

**EVENTS OF DEFAULT AND REMEDIES** 

Section 8.01 <u>Events of Default</u>. Any of the following shall constitute an "**Event of Default**":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-Payment</u>. The Borrowers or Subsidiary Guarantor fail to pay (i) when due and as required to be paid herein, any amount of principal of any Loan, or (ii) within five Business Days after the same becomes due and payable, any interest on any Loan or on any L/C Obligation, or (iii) within five Business Days after the same becomes due and payable, any fee due hereunder, or any other amount payable hereunder or with respect to any other Loan Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Specific Covenants</u>. The Borrowers or any other Loan Party fail to perform or observe any term, covenant or agreement contained in any of <u>Sections 6.03(a)</u> (unless cured pursuant to the terms thereof), <u>6.05(a)</u> (solely with respect to a Borrower) or <u>6.11</u> (solely with respect to <u>Section</u> <u>5.19</u> and <u>Section</u> <u>5.20</u>) or in any Section of <u>Article VII</u> (subject to, in the case of the Financial Covenant, the cure rights contained in <u>Section</u> <u>8.03</u> and the proviso at the end of this <u>clause (b)</u>), or the Holding Companies fail to perform or observe any term, covenant or agreement contained in <u>Section</u> <u>7.09</u>; *provided* that a breach of <u>Section</u> <u>7.08</u> (a "**Financial Covenant Event of Default**") shall not constitute an Event of Default (x) until, if the Borrowers have the right to receive the Cure Amount, lapse of the cure rights set forth in <u>Section</u> <u>8.03</u> and (y) with respect to any Term Facility or any Specified Refinancing Debt (unless refinancing the Revolving Credit Facility) (or, if applicable, for any New Revolving Facility that has elected to not receive the benefit of the Financial Covenant) unless and until (i) a period of 30 consecutive days has elapsed since the first date on which the Required Revolving Lenders would be entitled to declare all amounts outstanding under the Revolving Credit Facility to be immediately due and payable as a result of a Financial Covenant Event of Default and (ii) at the end of such 30 consecutive day period, the Required Revolving Lenders shall have terminated their Revolving Credit Commitments and declared all amounts outstanding under the Revolving Credit Facility to be due and payable and such termination and acceleration has not been rescinded; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Defaults</u>. Any Loan Party fails to perform or observe any covenant or agreement (other than those specified in <u>Section</u> <u>8.01(a)</u> or <u>(b)</u> above) contained in any Loan Document on its part to be performed or observed and such failure continues for 30 days after written notice thereof by the Administrative Agent to the Borrower Representative; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Representations and Warranties</u>. Any representation, warranty, certification or statement of fact made or deemed made by or on behalf of the Borrowers or any other Loan Party herein, in any other Loan Document, or in any document required to be delivered pursuant to the Loan Documents, in each case, shall be incorrect or misleading in any material respect (or in any respect if such representation or warranty is already qualified by materiality) when made or deemed made and such representation, warranty, certification or statement of fact is not corrected or clarified within 30 days after written notice thereof by the Administrative Agent to the Borrower Representative; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Cross-Default</u>. Any Loan Party or any Restricted Subsidiary (A) fails to make any payment beyond the applicable grace period with respect thereto, if any, and such failure is continuing (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness (other than Indebtedness hereunder and intercompany Indebtedness) having an aggregate outstanding principal amount equal to or greater than the Threshold Amount; or (B) fails to observe or perform any other agreement or condition relating to any such Indebtedness containing or otherwise requiring observance or compliance with a financial maintenance covenant and the holder or holders of such Indebtedness (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) have caused such Indebtedness to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its Stated Maturity ("**Acceleration**"); *provided*, *however*, that if such holder or holders (or a trustee or an agent on behalf of such holder or holders or beneficiary or beneficiaries) irrevocably rescind such Acceleration, the Event of Default with respect to this <u>clause (e)</u> shall automatically cease from and after such date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Insolvency Proceedings, Etc.</u> The Holding Companies, the Borrowers or any Material Subsidiary institutes, resolves to institute or consents to the institution of any proceeding under any Debtor Relief Law, a winding-up, an administration, a dissolution, or a composition or makes an assignment for the benefit of creditors or any other action is commenced (by way of voluntary arrangement, scheme of arrangement or otherwise); or appoints, resolves to appoint, applies for or consents to the appointment of any receiver, interim receiver, administrator, administrative receiver, trustee, monitor, custodian, conservator, liquidator, rehabilitator, judicial manager, provisional liquidator, administrator, receiver and manager, controller, monitor or similar officer for it or for all or any material part of its property; or any receiver, interim receiver, trustee, monitor, custodian, conservator, liquidator, rehabilitator, judicial manager, provisional liquidator, administrator, administrative receiver, receiver and manager, controller, monitor or similar officer is appointed without the application or consent of such Person and the appointment continues undischarged or unstayed for 60 days; or any proceeding under any Debtor Relief Law (including, without limitation, for the appointment of any receiver, interim receiver, trustee, monitor, custodian, conservator, liquidator, rehabilitator, judicial manager, provisional liquidator, administrator, administrative receiver, receiver and manager, controller, monitor or similar officer) relating to any such Person or to all or substantially all of its property is instituted without the consent of such Person and continues undismissed or unstayed for 60 days, or an order for relief is entered in any such proceeding; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Inability to Pay Debts; Attachment</u>. (i) The Holding Companies, the Borrowers or any Material Subsidiary becomes unable or admits in writing its inability or fails generally to pay its debts as they become due or suspends making payments or enters into a moratorium or standstill arrangement in relation to its Indebtedness or is taken to have failed to comply with a statutory demand (or otherwise be presumed to be insolvent by applicable Law), or (ii) any writ or warrant of attachment or execution or similar process is issued, commenced or levied against all or substantially all of the property of any such Person and is not released, vacated or fully bonded within 60 days after its issue, commencement or levy, or any analogous procedure or step is taken in any jurisdiction; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Judgments</u>. There is entered against any Loan Party or any Restricted Subsidiary a final judgment or order for the payment of money in an aggregate amount (as to all such judgments and orders) equal to or greater than the Threshold Amount (to the extent not paid and not covered by (i) independent third-party insurance as to which the insurer has been notified of such judgment or order and does not deny coverage or (ii) an enforceable indemnity to the extent that such Loan Party or Restricted Subsidiary shall have made a claim for indemnification and the applicable indemnifying party shall not have disputed such claim) and there is a period of 60 consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal, bond or otherwise, is not in effect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>ERISA</u>. (i) One or more ERISA Events occur or there is or arises an Unfunded Pension Liability (taking into account only Plans with positive Unfunded Pension Liability) which ERISA Event or ERISA Events or Unfunded Pension Liability or Unfunded Pension Liabilities results or would reasonably be expected to result in liability of any Loan Party in an aggregate amount which would reasonably be expected to result in a Material Adverse Effect, (ii) any Borrower 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 which has resulted or would reasonably be expected to result in liability of any Borrower Party in an aggregate amount which would reasonably be expected to result in a Material Adverse Effect or (iii) with respect to a Foreign Plan, a termination, withdrawal, imposition of a Lien, noncompliance with applicable Law or plan terms or the occurrence of any other Foreign Benefit Event that would reasonably be expected to result in a Material Adverse Effect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Invalidity of Certain Loan Documents</u>. Any material provision of any material Collateral Document and/or any Guaranty (in each case, subject to the Legal Reservations and the Perfection Exceptions), at any time after its execution and delivery and for any reason other than as expressly permitted hereunder or thereunder (including as a result of a transaction permitted under <u>Section</u> <u>7.03</u> or <u>Section</u> <u>7.04</u>) or satisfaction in full of all the Obligations (other than contingent indemnification obligations as to which no claim has been asserted and obligations and liabilities under Secured Cash Management Agreements, Secured Hedge Agreements, Secured Third Party Letters of Credit, and Letters of Credit that have been Cash Collateralized or as to which arrangements satisfactory to the L/C Issuer that issued such Letters of Credit shall have been made) ceases to be in full force and effect or ceases to create a valid and perfected lien, with the priority set forth in the applicable Collateral Document required by <u>Section</u> <u>6.12</u>, on a material portion of the Collateral covered thereby; or any Loan Party contests in writing the validity or enforceability of any provision of this Agreement, any Collateral Document

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and/or any Guaranty for any reason other than as expressly permitted hereunder or thereunder (including as a result of a transaction permitted under <u>Section</u> <u>7.03</u> or <u>Section</u> <u>7.04</u>) or satisfaction in full of all the Obligations (other than contingent indemnification obligations as to which no claim has been asserted and obligations and liabilities under Secured Cash Management Agreements, Secured Hedge Agreements, Secured Third Party Letters of Credit, and Letters of Credit that have been Cash Collateralized or as to which arrangements satisfactory to the L/C Issuer that issued such Letters of Credit shall have been made); or any Borrower Party denies in writing that it has any or further liability or obligation under any Collateral Document or Guaranty (other than as expressly permitted hereunder or thereunder (including as a result of a transaction permitted under <u>Section</u> <u>7.03</u> or <u>Section</u> <u>7.04</u>) or as a result of repayment in full of the Obligations (other than contingent indemnification obligations as to which no claim has been asserted and obligations and liabilities under Secured Cash Management Agreements, Secured Hedge Agreements, Secured Third Party Letters of Credit), and Letters of Credit that have been Cash Collateralized or as to which arrangements satisfactory to the L/C Issuer that issued such Letters of Credit shall have been made) and termination of the Aggregate Commitments), or purports in writing to revoke or rescind any Collateral Document or Guaranty or the perfected first priority Liens created thereby (except as otherwise expressly provided in this Agreement or the Collateral Documents); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Change of Control</u>. There occurs any Change of Control (other than a Permitted Change of Control).

Notwithstanding anything to the contrary in this Agreement, no Event of Default or breach of any representation or warranty in <u>Article V</u> or any covenant in <u>Article VI</u> or <u>VII</u> shall constitute a Default or Event of Default if such Event of Default or breach of such representation or warranty in <u>Article V</u> or such covenant in <u>Article VI</u> or <u>VII</u> would not have occurred but for a fluctuation (or other adverse change) in Exchange Rates.

Notwithstanding anything to the contrary in this Agreement, with respect to any Default or Event of Default (including any default or event of default (or similar term) resulting from a failure to provide notice of a Default or Event of Default), the words "exists," "is continuing" or similar expressions with respect thereto shall mean that the Default or Event of Default has occurred and has not yet been cured, remedied, consented to (by consent, amendment or otherwise) or waived; *provided* that any Default or Event of Default resulting from the failure to deliver a notice of default or event of default shall cease to exist and be cured in all respects if the underlying Default or Event of Default giving rise to such notice requirement shall have ceased to exist and/or be cured unless a Borrower had actual knowledge of such failure to provide such notice at the time that such Default or Event of Default occurred and failed to timely deliver such notice. If any Default or Event of Default occurs that is subsequently cured (a "**Cured Default**"), any other Default or Event of Default resulting from the making or deemed making of any representation or warranty by any Loan Party or the taking of any action by any Loan Party or any Subsidiary of any Loan Party, in each case which subsequent Default or Event of Default would not have arisen had the Cured Default not occurred, shall be deemed to be cured automatically upon, and simultaneous with, the cure of the Cured Default. Notwithstanding anything to the contrary in this <u>Section</u> <u>8.01</u>, an Event of Default (the "**Initial Default**") may not be cured pursuant to this <u>Section</u> <u>8.01</u>:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if the taking of any action by any Loan Party or Subsidiary of a Loan Party that is not permitted during, and as a result of, the continuance of such Initial Default directly results in the cure of such Initial Default and the applicable Loan Party or Subsidiary had actual knowledge at the time of taking any such action that the Initial Default had occurred and was continuing,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if the Initial Default arising under <u>Section</u> <u>8.01(d)</u> is an Event of Default which is uncurable,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if the Administrative Agent or Lenders have commenced remedial actions, reserved rights, or if curing such Default or Event of Default will directly result in material impairment of the rights and remedies of the Lenders, Collateral Agent and Administrative Agent under the Loan Documents with respect to any other Initial Default,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) in the case of an Event of Default that directly results in a material adverse effect on the ability of the Borrowers and the other Loan Parties (taken as a whole) to perform their respective payment obligations under any Loan Document to which any Borrower or any of the other Loan Parties is a party, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in the case of an Initial Default for which (i) a Borrower has failed to give notice to the Administrative Agent of such Initial Default and (ii) a Borrower had actual knowledge of such failure to give such notice.

Section 8.02 <u>Remedies Upon Event of Default</u>. If any Event of Default occurs and is continuing (including any Event of Default arising by virtue of the termination and declaration contemplated by the proviso to <u>Section</u> <u>8.01(b)</u>), the Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders (and, if a Financial Covenant Event of Default occurs and is continuing, the Administrative Agent shall, at the request of, or may, with the consent of, the Required Revolving Lenders only, and in such case, without limiting the proviso to <u>Section</u> <u>8.01(b)</u>, only with respect to the Revolving Credit Facility, any Letters of Credit, L/C Credit Extensions and L/C Obligations), take any or all of the following actions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) declare the commitment of each Lender to make Loans (including, for the avoidance of doubt, pursuant to the Delayed Draw Commitments) and any obligation of the L/C Issuers to make L/C Credit Extensions to be terminated, whereupon such commitments and obligation shall be terminated; *provided*, that, if an election under <u>Section</u> <u>1.02(i)</u> has been made and has not lapsed at such time, no termination may be effectuated until the lapse of all such elections under <u>Section</u> <u>1.02(i)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) declare the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document to be immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Borrowers;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) require that the Borrowers Cash Collateralize the L/C Obligations (in an amount equal to the then Outstanding Amount thereof); and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) exercise on behalf of itself, the L/C Issuers and the Lenders all rights and remedies available to it, the L/C Issuers and the Lenders under the Loan Documents, under any document evidencing Indebtedness in respect of which the Facilities have been designated as "Designated Senior Debt" (or any comparable term) and/or under applicable Law;

*provided*, *however*, that upon the occurrence of any Event of Default under <u>Sections 8.01(f)</u> or <u>(g)</u> with respect to the Borrowers or any other Loan Party, the obligation of each Lender to make Loans and any obligation of the L/C Issuers to make L/C Credit Extensions shall automatically terminate, the unpaid principal amount of all outstanding Loans and all interest and other amounts as aforesaid shall automatically become due and payable, and the obligation of the Borrowers to Cash Collateralize the L/C Obligations as aforesaid shall automatically become effective, in each case without further act of the Administrative Agent or any Lender.

Notwithstanding anything to the contrary contained herein, any "Default" under <u>Section</u> <u>8.01</u> will not constitute an "Event of Default" until the Loan Parties do not cure such "Default" within the time period (if any) specified in the applicable clauses of this <u>Section</u> <u>8.01</u> after receipt of any required notice provided for therein to the extent such clauses of <u>Section</u> <u>8.01</u> provide for such cure periods.

Notwithstanding anything to the contrary contained herein, no action may be first taken to enforce any Default or Event of Default hereunder more than eighteen (18) months after the date the Administrative Agent received a notice from a Borrower or a Lender of the underlying action giving rise to or otherwise becomes aware of such Default or Event of Default. Any court of competent jurisdiction may extend any cure period hereunder or require the Administrative Agent, Collateral Agent, Lenders and other Secured Parties to standstill.

Section 8.03 <u>Right to Cure</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything to the contrary contained in <u>Section</u> <u>8.01</u> or <u>8.02</u>, in the event that the Borrowers fail to comply with the requirements of the Financial Covenant with respect to any fiscal quarter at any time when the Borrowers are required to comply with such Financial Covenant pursuant to the terms thereof, then from the first day of such fiscal quarter until the expiration of the Cure Period (the last day of such period being the "**Anticipated Cure Deadline**"), the Holding Companies shall have the right (the "**Cure Right**") to issue common Capital Stock (or preferred equity or convertible preferred equity reasonably acceptable to the Administrative Agent) for cash, or obtain a contribution to its equity (which shall be in the form of common equity or otherwise in form reasonably acceptable to the Administrative Agent) and contribute the net after-tax cash proceeds therefrom in the form of common Capital Stock (or preferred equity or convertible preferred equity reasonably acceptable to the Administrative Agent) or a contribution to its equity (which shall be in the form of common equity or otherwise in a form reasonably

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acceptable to the Administrative Agent) ("**Cure Equity**"), and upon the receipt by the Borrowers of the net after-tax cash proceeds (the "**Cure Amount**"), pursuant to the exercise by one or more of the Holding Companies of such Cure Right, the calculation of Four Quarter Consolidated EBITDA as used in the Financial Covenant shall be recalculated giving effect to the following pro forma adjustments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Four Quarter Consolidated EBITDA for such fiscal quarter (and for any subsequent period that includes such fiscal quarter) shall be increased, solely for the purpose of measuring the Financial Covenant and not for any other purpose under this Agreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs (including the determination of amounts available under <u>Section</u> <u>7.05</u>) or determining the Applicable Commitment Fee or Applicable Rate, *provided* that, in determining the Applicable Commitment Fee or the Applicable Rate, effect shall be given to the relevant Cure Amount for purposes of <u>clause (y)</u> in the respective definitions thereof, such that no Event of Default shall be deemed to have occurred and be continuing), by an amount equal to the Cure Amount; *provided* that (1) the receipt by the Borrowers of the Cure Amount pursuant to the Cure Right shall be deemed to have no other effect on a consolidated basis under this Agreement (including but not limited to determining the availability or amount of any covenant baskets or carve-outs or determining the Applicable Commitment Fee or Applicable Rate, *provided* that, in determining the Applicable Commitment Fee or the Applicable Rate, effect shall be given to the relevant Cure Amount for purposes of <u>clause (y)</u> in the respective definitions thereof, such that no Event of Default shall be deemed to have occurred and be continuing) and (2) no Cure Amount shall reduce Indebtedness on a Pro Forma Basis for the fiscal quarter for which the Cure Right was exercised for purposes of calculating the Financial Covenant (whether as a result of a prepayment of the Loans or via netting of such Cure Amount); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if, after giving effect to the foregoing recalculations, the Borrowers shall then be in compliance with the requirements of the Financial Covenant, the Borrowers shall be deemed to have satisfied the requirements of the Financial Covenant as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the Financial Covenant that had occurred (and any other Default as a result thereof, including the failure to meet any condition requiring no Default or Event of Default based solely on the basis of any actual or purported Event of Default under the Financial Covenant) shall be deemed cured for the purposes of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) initially, until the lapse of the Cure Period, and thereafter, upon receipt by the Administrative Agent of written notice on or prior to the Anticipated Cure Deadline that the Holding Companies intends to exercise the Cure Right in respect of a fiscal quarter with respect to any Cure Equity contributed or to be contributed, in each case, after the first day of such fiscal quarter and on or prior to the Anticipated Cure Deadline, the Lenders (i) shall not be permitted to accelerate Loans held by them, to terminate the Revolving Credit Commitments held by them or to exercise remedies against the Collateral on the basis of a failure to comply with the requirements of the Financial Covenant, unless such failure is not cured pursuant to the exercise of the Cure Right on or prior to the Anticipated Cure Deadline and (ii) shall not be obligated to make any Credit Extension under the Revolving Credit Facility until such Cure Amount has been received by a Borrower.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything herein to the contrary, (i) in each four consecutive fiscal-quarter period there shall be no more than two fiscal quarters in respect of which the Cure Right is exercised, (ii) there can be no more than five fiscal quarters in respect of which the Cure Right is exercised during the term of the initial Revolving Credit Facility and (iii) for purposes of this <u>Section</u> <u>8.03</u>, the Cure Amount utilized shall be no greater than the minimum amount required to remedy the applicable failure to comply with the Financial Covenant.

Section 8.04 <u>Application of Funds</u>. After the exercise of remedies provided for in <u>Section</u> <u>8.02</u> (or after an actual or deemed entry of an order for relief with respect to the Borrowers under any Debtor Relief Law), any amounts received on account of the Obligations shall, subject to the provisions of <u>Sections 2.16</u> and <u>2.17</u>, be applied by the Administrative Agent in the following order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>first</u>, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (including fees, disbursements and other charges of counsel payable under <u>Section</u> <u>10.04</u>, <u>Section</u> <u>10.05</u> and amounts payable under <u>Article III</u> and amounts owing in respect of (x) the preservation of Collateral or the Collateral Agent's security interest in the Collateral or (y) with respect to enforcing the rights of the Secured Parties under the Loan Documents) payable to the Administrative Agent and the Collateral Agent in their respective capacity as such;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>second</u>, to payment in full of Unfunded Advances/Participations (the amounts so applied to be distributed between or among, as applicable, the Administrative Agent and the L/C Issuers pro rata in accordance with the amounts of Unfunded Advances/Participations owed to them on the date of any such distribution);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>third</u>, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (other than principal, interest and Letter of Credit fees) payable to the Lenders and the L/C Issuers (including fees, disbursements and other charges of counsel payable under <u>Sections 10.04</u> and <u>10.05</u>) arising under the Loan Documents and amounts payable under <u>Article III</u>, ratably among them in proportion to the respective amounts described in this <u>clause (c)</u> held by them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>fourth</u>, to payment of that portion of the Obligations constituting accrued and unpaid Letter of Credit fees and interest on the Loans and L/C Borrowings, ratably among the Lenders and the L/C Issuers in proportion to the respective amounts described in this <u>clause (d)</u> held by them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>fifth</u>, (i) to payment of that portion of the Obligations constituting unpaid principal of the Loans and the L/C Borrowings, that portion of the Obligations of the Loan Parties then owing in respect of regularly scheduled payments or termination payments (whether as a result of the occurrence of any event of default or other termination event) under the Secured Hedge Agreements that portion of the Obligations of the Loan Parties

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then owing under the Secured Cash Management Agreements, and that portion of the Obligations of the Loan Parties owing to reimburse drawings under Secured Third Party Letters of Credit and (ii) to Cash Collateralize that portion of L/C Obligations comprising the aggregate undrawn amount of Letters of Credit to the extent not otherwise Cash Collateralized by the Borrowers pursuant to <u>Sections 2.03</u> and <u>2.16</u>, ratably among the Lenders, the L/C Issuers, the Hedge Banks party to such Secured Hedge Agreements, the Cash Management Banks party to such Secured Cash Management Agreements, and the Third Party Letter of Credit Issuers issuing such Secured Third Party Letters of Credit in proportion to the respective amounts described in this <u>clause (e)</u> held by them; *provided* that (x) any such amounts applied pursuant to the foregoing <u>clause (ii)</u> shall be paid to the Administrative Agent for the ratable account of the applicable L/C Issuers to Cash Collateralize such L/C Obligations, (y) subject to <u>Sections 2.03(d)</u> and <u>2.16</u>, amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to this <u>clause (e)</u> shall be applied to satisfy drawings under such Letters of Credit as they occur and (z) upon the expiration of any Letter of Credit without any pending drawing, the <u>pro rata</u> share of Cash Collateral attributable to such expired Letter of Credit shall be applied by the Administrative Agent in accordance with the priority of payments set forth in this <u>Section</u> <u>8.04</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>sixth</u>, to the payment of all other Obligations of the Loan Parties owing under or in respect of the Loan Documents or under Secured Hedge Agreements and the Secured Cash Management Agreements or reimbursement obligations in respect of Secured Third Party Letters of Credit that are then due and payable to the Administrative Agent and the other Secured Parties, and not otherwise paid pursuant to <u>clause (e)</u> above, ratably based upon the respective aggregate amounts of all such Obligations then owing to the Administrative Agent and the other Secured Parties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>last</u>, after all of the Obligations have been paid in full (other than contingent indemnification obligations not yet due and owing), to the applicable Borrowers or as otherwise required by Law; *provided* that no amounts received from any Guarantor shall be applied to Excluded Swap Obligations of such Guarantor.

If any amount remains on deposit as Cash Collateral after all Letters of Credit have either been fully drawn or expired without any pending drawing, such remaining amount shall be applied to the other Obligations, if any, in accordance with the priority of payments set forth above. Notwithstanding the foregoing, Obligations arising under Secured Cash Management Agreements, Secured Hedge Agreements, and Secured Third Party Letters of Credit shall be excluded from the application of payments described above if the Administrative Agent has not received written notice thereof, together with such supporting documentation as the Administrative Agent may reasonably request, from the applicable Cash Management Bank, Hedge Bank or Third Party Letter of Credit Issuer, as the case may be. Each Cash Management Bank, Hedge Bank, or Third Party Letter of Credit Issuer not a party to this Agreement that has given the notice contemplated by the preceding sentence shall, by such notice, be deemed to have acknowledged and accepted the appointment of the Administrative Agent pursuant to the terms of <u>Article IX</u> for itself and its Affiliates as if a "Lender" party hereto.

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It is understood and agreed by each Loan Party and each Secured Party that the Administrative Agent and Collateral Agent shall have no liability for any determinations made by it in this <u>Section</u> <u>8.04</u>, in each case except to the extent resulting from the gross negligence, bad faith or willful misconduct of, or material breach of the Loan Documents by, the Administrative Agent or the Collateral Agent, as applicable (as determined by a court of competent jurisdiction in a final and non-appealable decision). Each Loan Party and each Secured Party also agrees that the Administrative Agent and the Collateral Agent may (but shall not be required to), at any time and in its sole discretion, and with no liability resulting therefrom, petition a court of competent jurisdiction regarding any application of Collateral in accordance with the requirements hereof, and the Administrative Agent and the Collateral Agent shall be entitled to wait for, and may conclusively rely on, any such determination.

**ARTICLE IX** 

**ADMINISTRATIVE AGENT AND OTHER AGENTS** 

Section 9.01 <u>Appointment and Authorization of Agents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Lender and L/C Issuer hereby irrevocably appoints Citibank and its successors and permitted assigns to act on its behalf as Administrative Agent hereunder and under the other Loan Documents (subject to the provisions in <u>Section</u> <u>9.09</u>), and designates and authorizes the Administrative Agent to take such actions on its behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to the Administrative Agent by the terms of this Agreement or any other Loan Document, together with such actions and powers as are reasonably incidental thereto. The Administrative Agent may perform any of its duties through its officers, directors, agents, employees, or affiliates. The provisions of this Article are solely for the benefit of the Administrative Agent and the Lenders, and no Loan Party shall have rights as a third party beneficiary of any of such provisions. Notwithstanding any provision to the contrary contained elsewhere herein or in any other Loan Document, no Agent shall have any duties or responsibilities, except those expressly set forth herein, nor shall any Agent have or be deemed to have any fiduciary relationship with any Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against any Agent. Regardless of whether a Default has occurred and is continuing and without limiting the generality of the foregoing sentence, the use of the term "agent" herein and in the other Loan Documents with reference to any Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable Law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties; additionally, each Lender agrees that it will not assert any claim against the Administrative Agent based on an alleged breach of fiduciary duty by the Administrative Agent in connection with this Agreement and the transactions contemplated hereby.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each L/C Issuer shall act on behalf of the Lenders with respect to any Letters of Credit issued by it and the documents associated therewith, and such L/C Issuer shall have all of the benefits and immunities (i) provided to the Agents in this <u>Article IX</u> with respect to any acts taken or omissions suffered by such L/C Issuer in connection with Letters of Credit issued by it or proposed to be issued by it and the applications and agreements for letters of credit pertaining to such Letters of Credit as fully as if the term "Agent" as used in this <u>Article IX</u> and in the definition of "Agent-Related Person" included such L/C Issuer with respect to such acts or omissions, and (ii) as additionally provided herein with respect to such L/C Issuer.

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Section 9.02 <u>Delegation of Duties</u>. The Administrative Agent may execute any of its duties and exercise its rights and powers under this Agreement or any other Loan Document (including for purposes of holding or enforcing any Lien on the Collateral (or any portion thereof) granted under the Collateral Documents or of exercising any rights and remedies thereunder) by or through agents, employees or attorneys-in-fact and shall be entitled to advice of counsel and other consultants or experts concerning all matters pertaining to such duties. The Administrative Agent and any such sub agent may perform any and all of its duties and exercise its rights and powers by or through their respective Agent-Related Persons. The Administrative Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects in the absence of gross negligence or willful misconduct by the Administrative Agent, as determined by a final non-appealable judgment by a court of competent jurisdiction. The exculpatory provisions of this <u>Article IX</u> shall apply to any such sub agent and to the Agent-Related Persons of the Administrative Agent and any such sub agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent.

Section 9.03 <u>Liability of Agents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Agent-Related Person shall be (i) liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross negligence, bad faith, willful misconduct or material breach of the Loan Documents in connection with its duties expressly set forth herein, to the extent determined in a final, non-appealable judgment by a court of competent jurisdiction), (ii) liable for any action taken or not taken by it (A) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in <u>Sections 10.01</u> and <u>8.02</u>) or (B) in the absence of its own gross negligence, bad faith, willful misconduct or material breach of the Loan Documents as determined by the final, non-appealable judgment of a court of competent jurisdiction, in connection with its duties expressly set forth herein, (iii) responsible in any manner to any Lender or participant for any recital, statement, representation or warranty made by any Loan Party or any officer thereof, contained herein or in any other Loan Document, or in any certificate, report, statement or other document referred to or provided for in, or received by the Administrative Agent under or in connection with, this Agreement or any other Loan Document, (iv) responsible for or have any duty to ascertain or inquire into the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or any other agreement, instrument or document, or the creation, perfection or priority of any Lien, or security interest created or purported to be created under the Collateral Documents, or for any failure of any Loan Party or any other party to any Loan Document to perform its obligations hereunder, (v) responsible for or have any duty to ascertain or inquire into the value or the sufficiency of any Collateral, (vi) responsible for or have any duty to ascertain or inquire into the satisfaction of any condition set forth in <u>Article IV</u> or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent. No Agent-Related Person shall be under any obligation to any Lender or participant to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of any Loan Party or any Affiliate thereof. The Administrative Agent shall not be responsible

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or have any liability for, or have any duty to ascertain, inquire into monitor or enforce, compliance with the provisions relating to Disqualified Institutions. Without limiting the generality of the foregoing, the Administrative Agent shall not (x) be obligated to ascertain, monitor or inquire as to whether any Lender or participant or prospective Lender or participant is a Disqualified Institution, Affiliate Lender or a Net Short Lender or (y) have any liability with respect to or arising out of any assignment or participation of loans, or disclosure of confidential information, to, or the restriction on any exercise of rights or remedies of, any Disqualified Institution, any Net Short Lender or any Affiliate Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As to any matters not expressly provided for herein and in the other Loan Documents (including enforcement or collection), neither the Administrative Agent nor the Collateral Agent, as applicable, shall be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the written instructions of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, pursuant to the terms in the Loan Documents), and, unless and until revoked in writing, such instructions shall be binding upon each Lender and each L/C Issuer; *provided*, *however*, that neither the Administrative Agent nor the Collateral Agent, as applicable, shall be required to take any action that (i) the Administrative Agent or the Collateral Agent, as applicable, in good faith believes exposes it to liability unless the Administrative Agent or the Collateral Agent, as applicable, receives an indemnification satisfactory to it from the Lenders and the L/C Issuers with respect to such action or (ii) is contrary to this Agreement or any other Loan Document or applicable law, including any action that may be in violation of the automatic stay under any requirement of Law relating to bankruptcy, insolvency or reorganization or relief of debtors or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any requirement of Law relating to bankruptcy, insolvency or reorganization or relief of debtors; *provided*, *further*, that the Administrative Agent or the Collateral Agent, as applicable, may seek clarification or direction from the Required Lenders prior to the exercise of any such instructed action and may refrain from acting until such clarification or direction has been provided. Neither the Administrative Agent nor the Collateral Agent, as applicable, shall have any duty to disclose, except as expressly set forth herein and in the other Loan Documents, and shall not be liable for the failure to disclose, any information relating to the Borrowers or any of their Affiliates that is communicated to or obtained by any Person serving as an Agent or any of its Affiliates in any capacity. Nothing in this Agreement shall require the Administrative Agent or the Collateral Agent, as applicable, to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any assignor of a Loan or seller of a participation hereunder shall be entitled to rely conclusively on a representation of the assignee Lender or Participant in the relevant Assignment and Assumption or participation agreement, as applicable, that such assignee or purchaser is not a Disqualified Institution.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent does not warrant or accept responsibility for, and shall not have any liability with respect to, in each case except as expressly set forth in this Agreement, (a) the continuation of, administration of, submission of, calculation of or any other matter related to Base Rate, the Term SOFR Reference Rate or Term SOFR, or any component definition thereof or rates referred to in the definition thereof, or any alternative, successor or replacement rate thereto (including any Benchmark Replacement), including whether the composition or characteristics of any such alternative, successor or replacement rate (including any Benchmark Replacement) will be similar to, or produce the same value or economic equivalence of, or have the same volume or liquidity as, Base Rate, the Term SOFR Reference Rate or Term SOFR, or any other Benchmark prior to its discontinuance or unavailability, or (b) the effect, implementation or composition of any Benchmark Replacement Conforming Changes. The Administrative Agent and its affiliates or other related entities may engage in transactions unrelated to this Agreement and the other Loan Documents that affect the calculation of Base Rate, the Term SOFR Reference Rate or Term SOFR, any alternative, successor or replacement rate (including any Benchmark Replacement) or any relevant adjustments thereto, in each case, in a manner adverse to the Borrowers; *provided* that, for the avoidance of doubt, the foregoing shall not supersede <u>Section</u> <u>10.01</u>. The Administrative Agent may select information sources or services in its reasonable discretion to ascertain Base Rate, the Term SOFR Reference Rate or Term SOFR, or any other Benchmark, in each case pursuant to the terms of this Agreement, and shall have no liability to the Borrowers, any Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service.

Section 9.04 <u>Reliance by Agents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, communication, signature, resolution, representation, notice, request, consent, certificate, instrument, affidavit, letter, telegram, facsimile, telex or telephone message, electronic mail message, Internet or intranet website posting or other distribution statement or other document or conversation reasonably believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons. Each Agent also may rely upon any statement made to it orally or by telephone and reasonably believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan that by its terms must be fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender unless the Administrative Agent shall have received notice to the contrary from such Lender prior to the making of such Loan. Each Agent may consult with, and rely upon (and be fully protected in relying upon), advice and statements of legal counsel (including counsel to any Loan Party), independent accountants and other experts selected by such Agent. Each Agent shall be fully justified in failing or refusing to take any action under any Loan Document unless it shall first receive such advice or concurrence of the Required Lenders (or such greater number of Lenders as may be expressly required hereby in any instance) as it deems appropriate and, if it so requests, it shall first be indemnified to its satisfaction by the

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Lenders against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. Each Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of the Required Lenders (or such greater number of Lenders as may be expressly required hereby in any instance) and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of determining compliance with the conditions specified in <u>Sections 4.01</u> and <u>4.02</u>, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date, specifying its objection thereto.

Section 9.05 <u>Notice of Default</u>. The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of any Default, except with respect to defaults in the payment of principal, interest and fees required to be paid to the Administrative Agent for the account of the Lenders, unless the Administrative Agent shall have received written notice from a Lender or the Borrowers referring to this Agreement, describing such Default and stating that such notice is a "notice of default." The Administrative Agent will notify the Lenders of its receipt of any such notice. The Administrative Agent shall take such action with respect to any Event of Default as may be directed by the Required Lenders or the Required Revolving Lenders, as applicable, in accordance with <u>Article VIII</u>; *provided*, *however*, that unless and until the Administrative Agent has received any such direction, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Event of Default as it shall deem advisable or in the best interest of the Lenders. Notwithstanding anything herein to the contrary, the Administrative Agent shall not be liable for, or be responsible for any loss, cost or expense suffered by the Borrowers, any Subsidiary, any Lender or any L/C Issuer as a result of any determination of the outstanding Revolving Credit Commitments, any of the component amounts thereof or any portion thereof attributable to each Lender or L/C Issuer, or any Exchange Rate or Dollar-equivalent in the absence of its own gross negligence, bad faith, willful misconduct or material breach of the Loan Documents in connection with its duties expressly set forth herein, to the extent determined in a final, non- appealable judgment by a court of competent jurisdiction.

Section 9.06 <u>Credit Decision; Disclosure of Information by Agents</u>. Each Lender acknowledges that no Agent-Related Person has made any representation or warranty to it, and that no act by any Agent hereafter taken, including any consent to and acceptance of any assignment or review of the affairs of any Loan Party or any Affiliate thereof, shall be deemed to constitute any representation or warranty by any Agent-Related Person to any Lender as to any matter, including whether Agent-Related Persons have disclosed material information in their possession. Each Lender represents to each Agent that it has, independently and without reliance upon any Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of, and investigation into, the business, prospects, operations, property, financial and other condition and creditworthiness of the Loan Parties and their respective Subsidiaries, and

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all applicable bank or other regulatory Laws relating to the transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to the Borrowers and the other Loan Parties hereunder. Each Lender also represents that it will, independently and without reliance upon any Agent-Related Person and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of the Borrowers and the other Loan Parties. Except for notices, reports and other documents expressly required to be furnished to the Lenders by any Agent herein, such Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of any of the Loan Parties or any of their respective Affiliates which may come into the possession of any Agent-Related Person. Each Lender, by delivering its signature page to this Agreement on the Closing Date, or delivering its signature page to an Assignment and Assumption or any other Loan Document pursuant to which it shall become a Lender hereunder, shall be deemed to have acknowledged receipt of, and consented to and approved, each Loan Document and each other document required to be delivered to, or be approved by or satisfactory to, the Administrative Agent or the Lenders on the Closing Date.

Section 9.07 <u>Indemnification of Agents</u>. Each Lender shall, on a ratable basis based on such Lender's Pro Rata Share of all the Facilities, indemnify upon demand each Agent-Related Person (to the extent not reimbursed by or on behalf of any Loan Party and without limiting the obligation of any Loan Party to do so), and hold harmless each Agent-Related Person in each case from and against any and all Indemnified Liabilities incurred by such Agent-Related Person (including, for the avoidance of doubt, any such Agent-Related Person in its capacity as L/C Issuer); *provided*, *however*, that no Lender shall be liable for any Indemnified Liabilities incurred by an Agent-Related Person to the extent such Indemnified Liabilities are determined in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Agent-Related Person's own gross negligence, bad faith or willful misconduct; *provided*, *however*, that no action taken in accordance with the directions of the Required Lenders (or such other number or percentage of the Lenders as shall be required by the Loan Documents) shall be deemed to constitute gross negligence, bad faith or willful misconduct for purposes of this <u>Section</u> <u>9.07</u> *provided*, *further*, that to the extent any L/C Issuer is entitled to indemnification under this <u>Section</u> <u>9.07</u> solely in its capacity and role as an L/C Issuer, only the Revolving Credit Lenders shall be required to indemnify such L/C Issuer under this <u>Section</u> <u>9.07</u> (which indemnity shall be provided by such Lenders based upon their respective Pro Rata Share of the Revolving Credit Facility). In the case of any investigation, litigation or proceeding giving rise to any Indemnified Liabilities, this <u>Section</u> <u>9.07</u> shall apply whether or not any such investigation, litigation or proceeding is brought by any Lender or any other Person. Without limiting the foregoing, each Lender shall reimburse the Administrative Agent upon demand for its Pro Rata Share of any costs or out-of-pocket expenses (including the fees, disbursements and other charges of counsel) incurred by the Administrative Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise)

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of, or legal advice in respect of rights or responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the extent that the Administrative Agent is not reimbursed for such expenses by or on behalf of the Borrowers; *provided* that such reimbursement by the Lenders shall not affect the Borrowers' continuing reimbursement obligations with respect thereto; *provided, further*, that failure of any Lender to indemnify or reimburse the Administrative Agent shall not relieve any other Lender of its obligation in respect thereof. The undertaking in this <u>Section</u> <u>9.07</u> shall survive termination of the Aggregate Commitments, the payment of all other Obligations and the resignation or removal of the Administrative Agent.

Section 9.08 <u>Agents in Their Individual Capacities</u>. Any Agent and its Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire Capital Stock in and generally engage in any kind of banking, trust, financial advisory, underwriting or other business with each of the Loan Parties and their respective Affiliates as though it were not an Agent or an L/C Issuer hereunder and without notice to or consent of the Lenders. The Lenders acknowledge that, pursuant to such activities, an Agent or its Affiliates may receive information regarding any Loan Party or its Affiliates (including information that may be subject to confidentiality obligations in favor of such Loan Party or such Affiliate) and acknowledge that such Agent shall be under no obligation to provide such information to them. With respect to its Loans, such Agent shall have the same rights and powers under this Agreement as any other Lender and may exercise such rights and powers as though it were not an Agent or an L/C Issuer, and the terms "Lender" and "Lenders" include such Agent in its individual capacity (unless otherwise expressly indicated or unless the context otherwise requires).

Section 9.09 <u>Successor Agents</u>. The Administrative Agent or Collateral Agent may resign as the Administrative Agent or Collateral Agent, as applicable, upon 30 days' written notice to Borrower Representative and the Lenders; *provided* that, if at the time of such resignation, there is a successor Administrative Agent or Collateral Agent, as applicable, satisfactory to each of the resigning Agent, the incoming Agent and the Borrower Representative, each, in their sole discretion, then the resigning Agent, the incoming Agent and the Borrower Representative may agree to waive or shorten the 30 day notice period. If the Administrative Agent or Collateral Agent or a controlling Affiliate of the Administrative Agent or the Collateral Agent is subject to an Agent-Related Distress Event, the Borrower Representative may remove such Agent from such role upon ten days' written notice to the Lenders. Upon receipt of any such notice of resignation or removal, the Required Lenders shall appoint from among the Lenders a successor agent for the Lenders, which successor agent shall be subject to the consent of the Borrower Representative at all times other than during the existence of an Event of Default under <u>Sections 8.01(a)</u>, <u>(f)</u>, or <u>(g)</u> (which consent of the Borrower Representative shall not be unreasonably withheld or delayed). If no successor agent is appointed prior to the effective date of the resignation or removal, as applicable, of the Administrative Agent or Collateral Agent, as applicable, the Administrative Agent or Collateral Agent (other than to the extent subject to an Agent-Related Distress Event or if the Administrative Agent is being removed as a result of it being a Disqualified Institution), as applicable, may appoint, after consulting with the Lenders and the Borrower Representative, a successor agent from among the Lenders. Upon the acceptance of its appointment as successor agent hereunder, the Person

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acting as such successor agent shall succeed to all the rights, powers and duties of the retiring Administrative Agent or Collateral Agent, as applicable, and the term "Administrative Agent" or "Collateral Agent," as applicable, shall mean such successor administrative agent or such successor collateral agent, as applicable, and the retiring Administrative Agent's or Collateral Agent's appointment, powers and duties as the Administrative Agent or Collateral Agent, as applicable, shall be terminated. After the retiring Administrative Agent's or Collateral Agent's resignation or removal hereunder as the Administrative Agent or Collateral Agent, the provisions of this <u>Article IX</u> and <u>Sections 10.04</u> and <u>10.05</u> shall continue in effect for its benefit as to any actions taken or omitted to be taken by it while it was the Administrative Agent or Collateral Agent under this Agreement. If no successor agent has accepted appointment as the Administrative Agent or Collateral Agent by the date which is 30 days following the retiring Administrative Agent's or Collateral Agent's notice of resignation or removal, the retiring Administrative Agent's or Collateral Agent's resignation or removal shall nevertheless thereupon become effective and (i) the retiring Administrative Agent or Collateral Agent, as applicable, shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the case of any collateral security held by the Administrative Agent or Collateral Agent on behalf of the Lenders under any of the Loan Documents, the retiring Agent shall continue to hold such collateral security as bailee, trustee or other applicable capacity until such time as a successor of such Agent is appointed, for the avoidance of doubt any agency fees for the account of the retiring agent shall cease to accrue from (and shall be payable on) the date that a successor Agent is appointed), (ii) all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender directly, until such time as the Required Lenders appoint a successor Administrative Agent as provided for above in this <u>Section</u> <u>9.09</u> and (iii) the Lenders shall perform all of the duties of the Administrative Agent or Collateral Agent, as applicable, hereunder until such time, if any, as the Required Lenders appoint a successor agent as provided for above. Upon the acceptance of any appointment as the Administrative Agent or Collateral Agent hereunder by a successor and upon the execution and filing or recording of such financing statements, and such other instruments or notices, as may be necessary or desirable, or as the Required Lenders may request, in order to continue the perfection of the Liens granted or purported to be granted by the Collateral Documents, the Administrative Agent or Collateral Agent, as applicable, shall thereupon succeed to and become vested with all the rights, powers, discretion, privileges, and duties of the retiring (or removed) Administrative Agent or Collateral Agent. Upon the acceptance of any appointment as the Administrative Agent or Collateral Agent hereunder by a successor or upon the expiration of the 30-day period following the retiring Administrative Agent's or Collateral Agent's notice of resignation or removal without a successor agent having been appointed, the retiring Administrative Agent or Collateral Agent, as applicable, shall be discharged from its duties and obligations hereunder and under the other Loan Documents other than as specifically set forth in <u>clause (i)</u> above of this <u>Section</u> <u>9.09</u> but the provisions of this <u>Article IX</u> and <u>Sections 10.04</u> and <u>10.05</u> shall continue in effect for the benefit of such retiring Agent, its sub-agents and their respective Agent-Related Persons in respect of any actions taken or omitted to be taken by any of them solely in respect of the Loan Documents or Obligations, as applicable, while the retiring Agent was acting as Administrative Agent or Collateral Agent, as applicable. At

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any time the Administrative Agent or Collateral Agent is a Defaulting Lender pursuant to <u>clause (d)</u> of the definition thereof, the Administrative Agent or Collateral Agent may be removed as the Administrative Agent or Collateral Agent hereunder at the request of the Borrower Representative and the Required Lenders.

Section 9.10 <u>Administrative Agent May File Proofs of Claim</u>. In case of the pendency of any receivership, administrative receivership, judicial management, insolvency, liquidation, bankruptcy, reorganization (by way of voluntary arrangement, schemes of arrangement or otherwise), arrangement, adjustment, composition or other judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether the principal of any Loan or L/C Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrowers) shall be entitled and empowered, by intervention in such proceeding or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, L/C Obligations and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel to the extent provided for herein and all other amounts due the Lenders and the Administrative Agent under <u>Sections 2.03(h)</u> and <u>(i)</u>, <u>2.09</u> and <u>10.04</u>) allowed in such judicial proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same; and any administrator, administrative receiver, interim receiver, custodian, receiver, assignee, trustee, monitor, judicial manager, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Agents and their respective agents and counsel, and any other amounts, in each case, due the Administrative Agent under <u>Sections 2.09</u> and <u>10.04</u>.

Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization (by way of voluntary arrangement, schemes of arrangement or otherwise), arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

Section 9.11 <u>Collateral and Guaranty Matters</u>. Except with respect to the exercise of setoff rights in accordance with <u>Section</u> <u>10.09</u> or with respect to a Secured Party's right to file a proof of claim in an insolvency proceeding, no Secured Party shall have any right individually to realize upon any of the Collateral or to enforce any Guarantee of the Obligations, it being understood and agreed that all powers, rights and remedies under the

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Loan Documents may be exercised solely by the Administrative Agent or the Collateral Agent, as applicable, on behalf of the Secured Parties in accordance with the terms thereof. Each Secured Party agrees that it shall not, and hereby waives any right to, take or institute any actions or proceedings, judicial or otherwise, for any such right or remedy under any Loan Document against any Loan Party or any past, present, or future Subsidiary of any Loan Party concerning any Collateral, or any other property of any Loan Party or any past, present or future Loan Party other than through the Administrative Agent or the Collateral Agent, as applicable; *provided*, that, for the avoidance of doubt, this sentence may be enforced against any Secured Party by the Required Lenders, any Agent or the Borrowers (or any of their Affiliates) and each Secured Party expressly acknowledge that this sentence shall be available as a defense of the Borrowers (or any of their Affiliates) in any such action, proceeding or remedial procedure. Each Secured Party, whether or not a party hereto, will be deemed, by its acceptance of the benefits of the Collateral and of the Guarantees of the Obligations, to have agreed to the foregoing provisions. Each of the Lenders (including in their capacities as potential or actual Hedge Banks party to a Secured Hedge Agreement, potential or actual Cash Management Banks party to a Secured Cash Management Agreement, and a potential or actual Third Party Letter of Credit Issuer which has issued a Secured Third Party Letter of Credit) and each L/C Issuer irrevocably authorize the Administrative Agent and the Collateral Agent, and each of the Administrative Agent and the Collateral Agent shall to the extent requested by the Borrowers or, solely in the case of <u>clause (d)</u> below, to the extent provided for under this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) release any Lien on any property granted to or held by the Administrative Agent or Collateral Agent under any Loan Document (and following such release shall execute any appropriate release documentation to document or evidence such release at the Borrowers' reasonable request and sole expense) (i) upon termination of the Aggregate Commitments and payment in full of all Obligations (other than (A) contingent indemnification obligations as to which no claim has been asserted and (B) obligations and liabilities under Secured Cash Management Agreements, Secured Hedge Agreements, and Secured Third Party Letters of Credit) and the expiration without any pending drawing or termination of all Letters of Credit (other than Letters of Credit that have been, in each case, Cash Collateralized or as to which arrangements satisfactory to the L/C Issuer that issued such Letters of Credit have been made), (ii) that is sold, disposed of or distributed or to be sold, disposed of or distributed as part of or in connection with any transaction or series of related transactions not prohibited hereunder or under any other Loan Document, in each case to a Person that is not a Loan Party, (iii) subject to <u>Section</u> <u>10.01</u>, if approved, authorized or ratified in writing by the Required Lenders, (iv) that constitutes or becomes Excluded Property as a result of an occurrence not prohibited hereunder or (v) owned by a Subsidiary Guarantor or Co-Borrower upon release of such Subsidiary Guarantor or Co-Borrower from its obligations under its Guaranty or hereunder, as applicable, pursuant to <u>clause (c)</u> below;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) release or subordinate any Lien on any property granted to or held by the Administrative Agent or Collateral Agent under any Loan Document to the holder of any Permitted Lien on such property that is permitted by <u>clauses (1)</u>, <u>(4)</u>, <u>(5)</u>, <u>(6)</u> (only with regard to <u>Section</u> <u>7.01(d)</u>), <u>(8)</u>, <u>(9)</u>, <u>(11)</u> (solely with respect to cash deposits), <u>(12)</u>, <u>(13)</u>, <u>(16)</u>, <u>(17)</u> (other than with respect to self-insurance arrangements), <u>(18)</u> (solely to the extent constituting Excluded Property), <u>(19)</u>, <u>(21)</u>, <u>(22)</u>, <u>(23)</u> (solely to the extent relating to a lien of the type allowed pursuant to <u>clauses (8)</u>, <u>(9)</u>, <u>(11)</u> (solely with respect to cash deposits) of the definition thereof) and <u>(25)</u> (solely to the extent relating to a lien of the type allowed pursuant to <u>clause (6)</u> of the definition of "Permitted Liens" and securing obligations under Indebtedness of the type allowed pursuant to <u>Section</u> <u>7.01(d)</u>), <u>(26)</u> (solely to the extent the Lien of the Collateral Agent on such property is not, pursuant to such agreements, permitted to be senior to or *pari passu* with such Liens), <u>(27)</u>, <u>(29)</u> (solely with respect to cash deposits), <u>(33)</u>, <u>(34)</u>, <u>(39)</u> (only for so long as required to be secured for such letter of intent or investment), <u>(45)</u>, <u>(46)</u> and <u>(47)</u> of the definition thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) release any Guarantor or any Co-Borrower from its obligations under the applicable Guaranty or hereunder, as applicable, if in the case of any Subsidiary, such Person ceases to be a Restricted Subsidiary or otherwise becomes an Excluded Subsidiary as a result of a transaction or designation permitted hereunder; *provided* that to the extent such Subsidiary becomes an Excluded Subsidiary pursuant to <u>clause (c)</u> of the definition thereof, the primary purpose of such transaction may not be to release such Guarantor from the Guarantees; *provided further* that no such release shall occur if such Guarantor or Co-Borrower continues to be a guarantor or co-borrower, as applicable, in respect of any Specified Refinancing Debt, any Refinancing Notes, any Incremental Equivalent Debt or, to the extent incurred by a Loan Party (other than the Holding Companies), any other Indebtedness with an aggregate outstanding principal amount in excess of $100,000,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) establish, enter into (or amend, renew, extend, supplement, restate, waive or otherwise modify) intercreditor arrangements as expressly contemplated by this Agreement (including, without limitation, those consistent with either (x) the terms of <u>Exhibits G-1</u> or <u>G-2</u> (which shall be deemed satisfactory to the Administrative Agent and Collateral Agent) or (y) any other terms set forth in this Agreement, in each case, to the extent the Indebtedness being incurred and secured in connection therewith is not prohibited from being incurred under <u>Section</u> <u>7.01</u> and <u>7.02</u> of this Agreement, which the Administrative Agent and Collateral Agent shall be required to enter into upon the delivery a certificate described in the following paragraph).

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 <u>Section</u> <u>9.11</u>; *provided* that in each case of this <u>Section</u> <u>9.11</u>, upon the Collateral Agent's reasonable request, the Borrower Representative shall have delivered to the Administrative Agent and Collateral Agent a certificate of a Responsible Officer of the Borrower Representative certifying that any such transaction has been consummated in compliance with the Credit Agreement and the other Loan Documents and that such release is not prohibited hereby; *provided*, that in the event that the Collateral Agent loses or misplaces any possessory collateral delivered to the Collateral Agent by the Borrower Representative, upon reasonable request of the Borrower Representative, the Collateral Agent shall provide a loss affidavit to the Borrower Representative, in the form customarily provided by the Collateral Agent in such circumstances.

Section 9.12 <u>Other Agents; Arranger and Managers</u>. None of the Lenders or other Persons identified on the facing page or signature pages of this Agreement as a "documentation agent," "joint lead arranger," or "joint bookrunner" shall have any right, power, obligation, liability, responsibility or duty under this Agreement other than those applicable to all Lenders as such; *provided* that each Arranger shall be entitled to any express rights given to that Arranger under any Loan Document. Without limiting the foregoing, none of the Lenders or other Persons so identified shall have or be deemed to have any fiduciary relationship with any Lender. Each Lender acknowledges that it has not relied, and will not rely, on any of the Lenders or other Persons so identified in deciding to enter into this Agreement or in taking or not taking action hereunder.

Section 9.13 <u>Secured Cash Management Agreements, Secured Hedge Agreements</u>, and Secured Third Party Letters of Credit. No Cash Management Bank, Hedge Bank or Third Party Letter of Credit Issuer that obtains the benefits of <u>Section</u> <u>8.04</u>, any Guaranty or any Collateral by virtue of the provisions hereof or of any Guaranty or any Collateral Document shall have any right to notice of any action or to consent to, direct or object to any action hereunder or under any other Loan Document or otherwise in respect of the Collateral (including the release or impairment of any Collateral) other than in its capacity as a Lender and, in such case, only to the extent expressly provided in the Loan Documents. Notwithstanding any other provision of this <u>Article IX</u> to the contrary, the Administrative Agent shall not be required to verify the payment of, or that other satisfactory arrangements have been made with respect to, Obligations arising under Secured Cash Management Agreements, Secured Hedge Agreements, and Secured Third Party Letters of Credit unless the Administrative Agent has received written notice of such Obligations, together with such supporting documentation as the Administrative Agent may request, from the applicable Cash Management Bank, Hedge Bank, or Third Party Letter of Credit Issuer, as the case may be. By accepting the benefits of the Collateral, each Secured Party that is a party to any such arrangement in respect of Secured Cash Management Agreements or Secured Hedge Agreement or issuer of a Secured Third Party Letter of Credit, as applicable, shall be deemed to have appointed the Administrative Agent to serve as administrative agent under the Loan Documents, and shall be deemed to have appointed the Collateral Agent to serve as collateral agent under the Loan Documents and agreed to be bound by the Loan Documents as a Secured Party thereunder, subject to the limitations set forth in this paragraph.

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Section 9.14 <u>Appointment of Supplemental Agents, Incremental Arrangers, Incremental Equivalent Debt Arrangers and Specified Refinancing Agents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It is the purpose of this Agreement and the other Loan Documents that there shall be no violation of any Law of any jurisdiction denying or restricting the right of banking corporations or associations to transact business as agent or trustee in such jurisdiction. It is recognized that in case of litigation under this Agreement or any of the other Loan Documents, and in particular in case of the enforcement of any of the Loan Documents, or in case the Administrative Agent or the Collateral Agent deems that by reason of any present or future Law of any jurisdiction it may not exercise any of the rights, powers or remedies granted herein or in any of the other Loan Documents or take any other action which may be desirable or necessary in connection therewith, the Administrative Agent and the Collateral Agent are hereby authorized to appoint an additional individual or institution selected by them in their sole discretion as a separate trustee, co-trustee, administrative agent, collateral agent, administrative sub-agent or administrative co-agent, as applicable (any such additional individual or institution being referred to herein individually as a "**Supplemental Agent**" and collectively as "**Supplemental Agents**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that the Administrative Agent or the Collateral Agent appoints a Supplemental Agent with respect to any Collateral, (i) each and every right, power, privilege or duty expressed or intended by this Agreement or any of the other Loan Documents to be exercised by or vested in or conveyed to the Administrative Agent or the Collateral Agent with respect to such Collateral shall be exercisable by and vest in such Supplemental Agent to the extent, and only to the extent, necessary to enable such Supplemental Agent to exercise such rights, powers and privileges with respect to such Collateral and to perform such duties with respect to such Collateral, and every covenant and obligation contained in the Loan Documents and necessary to the exercise or performance thereof by such Supplemental Agent shall run to and be enforceable by either the Administrative Agent and the Collateral Agent or such Supplemental Agent, and (ii) the provisions of this <u>Article IX</u> and of <u>Sections 10.04</u> and <u>10.05</u> (obligating the Borrowers to pay the Administrative Agent's and the Collateral Agent's expenses and to indemnify the Administrative Agent and the Collateral Agent) that refer to the Administrative Agent and/or the Collateral Agent shall inure to the benefit of such Supplemental Agent and all references therein to the Administrative Agent and/or Collateral Agent shall be deemed to be references to the Administrative Agent and/or Collateral Agent and/or such Supplemental Agent, as the context may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Should any instrument in writing from the Borrowers, the Holding Companies or any other Loan Party be required by any Supplemental Agent so appointed by the Administrative Agent or the Collateral Agent for more fully and certainly vesting in and confirming to him or it such rights, powers, privileges and duties, the Borrowers or the Holding Companies, as applicable, shall, or shall cause such Loan Party to, execute, acknowledge and deliver any and all such instruments promptly upon request by the Administrative Agent or the Collateral Agent. In case any Supplemental Agent, or a successor thereto, shall die, become incapable of acting, resign or be removed, all the rights, powers, privileges and duties of such Supplemental Agent, to the extent permitted by Law, shall vest in and be exercised by the Administrative Agent or the Collateral Agent, as applicable, until the appointment of a new Supplemental Agent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that the Borrowers appoint or designate any Incremental Arranger, Incremental Equivalent Debt Arranger or Specified Refinancing Agent pursuant to <u>Sections 2.14</u>, <u>2.15</u> and <u>2.18</u>, as applicable, (i) each and every right, power, privilege or duty expressed or intended by this Agreement or any of the other Loan Documents to be exercised by or vested in or conveyed to an agent or arranger with respect to New Loan Commitments, Incremental Equivalent Debt or Specified Refinancing Debt, as applicable, shall be exercisable by and vest in such Incremental Arranger, Incremental Equivalent Debt Arranger or Specified Refinancing Agent to the extent, and only to the extent, necessary to enable such Incremental Arranger, Incremental Equivalent Debt Arranger or Specified Refinancing Agent to exercise such rights, powers and privileges with respect to the New Loan Commitments, Incremental Equivalent Debt or Specified Refinancing Debt, as applicable, and to perform such duties with respect to such New Loan Commitments, Incremental Equivalent Debt or Specified Refinancing Debt, and every covenant and obligation contained in the Loan Documents and necessary to the exercise or performance thereof by such Incremental Arranger, Incremental Equivalent Debt Arranger or Specified Refinancing Agent shall run to and be enforceable by either the Administrative Agent or such Incremental Arranger, Incremental Equivalent Debt Arranger or Specified Refinancing Agent, and (ii) the provisions of this <u>Article IX</u> and of <u>Sections 10.04</u> and <u>10.05</u> (obligating the Borrowers to pay the Administrative Agent's and the Collateral Agent's expenses and to indemnify the Administrative Agent and the Collateral Agent) that refer to the Administrative Agent and/or the Collateral Agent shall inure to the benefit of such Incremental Arranger, Incremental Equivalent Debt Arranger or Specified Refinancing Agent and all references therein to the Administrative Agent and/or Collateral Agent shall be deemed to be references to the Administrative Agent and/or Collateral Agent and/or such Incremental Arranger, Incremental Equivalent Debt Arranger or Specified Refinancing Agent, as the context may require. Each Lender and L/C Issuer hereby irrevocably appoints any Incremental Arranger, Incremental Equivalent Debt Arranger or Specified Refinancing Agent to act on its behalf hereunder and under the other Loan Documents pursuant to <u>Sections 2.14</u>, <u>2.15</u> and <u>2.18</u>, as applicable, and designates and authorizes such Incremental Arranger, Incremental Equivalent Debt Arranger or Specified Refinancing Agent to take such actions on its behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to such Incremental Arranger, Incremental Equivalent Debt Arranger or Specified Refinancing Agent by the terms of this Agreement or any other Loan Document, together with such actions and powers as are reasonably incidental thereto.

Section 9.15 <u>Intercreditor Agreement</u>. The Administrative Agent and the Collateral Agent are irrevocably authorized and directed by the Lenders and other Secured Parties to: (i) enter into (or acknowledge and consent to) or amend, renew, extend, supplement, restate, replace, waive or otherwise modify any intercreditor agreement (including any Applicable Intercreditor Arrangement) with the collateral agent or other representatives of the holders of any Indebtedness that is to be secured by a Lien on the Collateral that is permitted under this Agreement, (ii) enter into any Collateral Document, and (iii) make or consent to any filings or take any other actions in connection therewith in

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order to permit such Indebtedness to be secured by a valid, perfected lien on the Collateral (with such priority as may be designated by such Loan Party, to the extent such priority is permitted by the Loan Documents), and the parties hereto acknowledge that any intercreditor agreement, Collateral Document, consent, filing or other action will be binding upon them. Each Lender and other Secured Party (a) hereby agrees that, in connection with entry into any intercreditor agreement, the Administrative Agent and the Collateral Agent may rely exclusively on a certificate of a Responsible Officer of the Borrower Representative as to whether such other Liens are permitted, (b) hereby agrees that it will be bound by and will take no actions contrary to the provisions of any intercreditor agreement (if entered into).

Section 9.16 <u>Erroneous Payment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Administrative Agent notifies a Lender or Secured Party, or any Person who has received funds on behalf of a Lender or Secured Party such Lender, but in any event excluding the Holding Companies and its Subsidiaries (any such Lender, Secured Party or other recipient, a "**Payment Recipient**") that the Administrative Agent has determined in its sole discretion (whether or not after receipt of any notice under immediately succeeding <u>clause (b)</u>) that any funds received by such Payment Recipient from the Administrative Agent or any of its Affiliates were erroneously transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Lender, Secured Party or other Payment Recipient on its behalf) (any such funds, whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an "**Erroneous Payment**") and demands the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all times remain the property of the Administrative Agent and shall be segregated by the Payment Recipient and held in trust for the benefit of the Administrative Agent, and such Lender or Secured Party shall (or, with respect to any Payment Recipient who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in no event later than two Business Days thereafter, return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Administrative Agent in same day funds at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect. A notice of the Administrative Agent to any Payment Recipient under this <u>clause (a)</u> shall be conclusive, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting immediately preceding <u>clause (a)</u>, each Lender or Secured Party, or any Person who has received funds on behalf of a Lender or Secured Party such Lender hereby further agrees that if it receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates) (x) that is in a different amount than, or on a different date from, that specified in a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates), or (z) that such Lender or Secured Party, or other such recipient, otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part) in each case:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) in the case of immediately preceding <u>clauses (x)</u> or <u>(y)</u>, an error shall be presumed to have been made (absent written confirmation from the Administrative Agent to the contrary) or (B) an error has been made (in the case of immediately preceding <u>clause (z)</u>), in each case, with respect to such payment, prepayment or repayment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender, L/C Issuer or Secured Party shall (and shall cause any other recipient that receives funds on its respective behalf to) promptly (and, in all events, within one Business Day of its knowledge of such error) notify the Administrative Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this <u>Section</u> <u>9.16(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Lender or Secured Party hereby authorizes the Administrative Agent to set off, net and apply any and all amounts at any time owing to such Lender or Secured Party under any Loan Document, or otherwise payable or distributable by the Administrative Agent to such Lender or Secured Party from any source, against any amount due to the Administrative Agent under immediately preceding <u>clause (a)</u> or under the indemnification provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that an Erroneous Payment (or portion thereof) is not recovered by the Administrative Agent for any reason, after demand therefor by the Administrative Agent in accordance with immediately preceding <u>clause (a)</u>, from any Lender that has received such Erroneous Payment (or portion thereof) (and/or from any Payment Recipient who received such Erroneous Payment (or portion thereof) on its respective behalf) (such unrecovered amount, an "**Erroneous Payment Return Deficiency**"), upon the Administrative Agent's notice to such Lender at any time, (i) such Lender shall be deemed to have assigned its Loans with respect to which such Erroneous Payment was made (the "**Erroneous Payment Impacted Class**") in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such assignment of the Loans of the Erroneous Payment Impacted Class, the "**Erroneous Payment Deficiency Assignment**") at par plus any accrued and unpaid interest, and is hereby (together with the Borrowers) deemed to execute and deliver an Assignment and Assumption (or, to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to a Platform as to which the Administrative Agent and such parties are participants) with respect to such Erroneous Payment Deficiency Assignment, and such Lender shall deliver any Notes evidencing such Loans to the applicable Borrowers or the Administrative Agent, (ii) the Administrative Agent as the assignee Lender shall be deemed to acquire the Erroneous Payment Deficiency Assignment, (iii) upon such deemed acquisition, the Administrative Agent as the assignee Lender shall become a Lender, as applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment and the assigning Lender shall cease to be a hereunder with respect to such Erroneous Payment Deficiency Assignment, excluding, for the avoidance of doubt, its obligations under the indemnification provisions of this Agreement which shall survive

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as to such assigning Lender and (iv) the Administrative Agent may reflect in the Register its ownership interest in the Loans subject to the Erroneous Payment Deficiency Assignment. The Administrative Agent may, in its discretion, sell any Loans acquired pursuant to an Erroneous Payment Deficiency Assignment and upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender shall be reduced by the net proceeds of the sale of such Loan (or portion thereof), and the Administrative Agent shall retain all other rights, remedies and claims against such Lender (and/or against any recipient that receives funds on its respective behalf). In addition, each party hereto agrees that, except to the extent that the Administrative Agent has sold a Loan (or portion thereof) acquired pursuant to an Erroneous Payment Deficiency Assignment, and irrespective of whether the Administrative Agent may be equitably subrogated, the Administrative Agent shall be contractually subrogated to all the rights and interests of the applicable Lender or Secured Party under the Loan Documents with respect to each Erroneous Payment Return Deficiency (the "**Erroneous Payment Subrogation Rights**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The parties hereto agree that an Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Borrowers or any other Loan Party, except, in each case, to the extent such Erroneous Payment is, and solely with respect to the amount of such Erroneous Payment that is, comprised of funds received by the Administrative Agent from the Borrowers or any other Loan Party for the purpose of making such Erroneous Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To the extent permitted by applicable law, no Payment Recipient shall assert any right or claim to an Erroneous Payment, and hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payment received, including without limitation waiver of any defense based on "discharge for value" or any similar doctrine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each party's obligations, agreements and waivers under this <u>Section</u> <u>9.16</u> shall survive the resignation or replacement of the Administrative Agent, any transfer of rights or obligations by, or the replacement of, a Lender and/or the repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Loan Document.

Notwithstanding anything to the contrary herein or in any other Loan Document, none of the Holding Companies or any of its Subsidiaries has acquired or incurred (or will acquire or incur) any additional obligations under this <u>Section</u> <u>9.16</u>.

Section 9.17 <u>Credit Bidding</u>. Each Lender and L/C Issuer hereby irrevocably authorizes the Administrative Agent (and the Collateral Agent at the direction of the Administrative Agent), at the direction of the Required Lenders, to credit bid all or any portion of the Obligations (including by accepting some or all of the Collateral in satisfaction of some or all of the Obligations pursuant to a deed in lieu of foreclosure or otherwise) and in such manner purchase (either directly or through one or more acquisition vehicles) all or any portion of the Collateral (a) at any sale thereof conducted under the provisions of the Bankruptcy Code of the United States, including under Sections 363, 1123 or 1129 of the Bankruptcy Code of the United States, or any other Debtor Relief Laws

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in any other jurisdictions to which a Loan Party is subject, or (b) at any other sale, foreclosure or acceptance of collateral in lieu of debt conducted by (or with the consent or at the direction of) the Administrative Agent (whether by judicial action or otherwise) in accordance with any applicable law. In connection with any such credit bid and purchase, the Obligations owed to the Secured Parties shall be entitled to be, and shall be, credit bid by the Administrative Agent at the direction of the Required Lenders on a ratable basis (with Obligations with respect to contingent or unliquidated claims receiving contingent interests in the acquired assets on a ratable basis that shall vest upon the liquidation of such claims in an amount proportional to the liquidated portion of the contingent claim amount used in allocating the contingent interests) for the asset or assets so purchased (or for the equity interests or debt instruments of the acquisition vehicle or vehicles that are issued in connection with such purchase). In connection with any such bid, (i) the Administrative Agent shall be authorized to form one or more acquisition vehicles and to assign any successful credit bid to such acquisition vehicle or vehicles, (ii) each of the Secured Parties' ratable interests in the Obligations which were credit bid shall be deemed without any further action under this Agreement to be assigned to such vehicle or vehicles for the purpose of closing such sale, (iii) the Administrative Agent shall be authorized to adopt documents providing for the governance of the acquisition vehicle or vehicles (provided that any actions by the Administrative Agent with respect to such acquisition vehicle or vehicles, including any disposition of the assets or equity interests thereof, shall be governed, directly or indirectly, by, and the governing documents shall provide for, control by the vote of the Required Lenders or their permitted assignees under the terms of this Agreement or the governing documents of the applicable acquisition vehicle or vehicles, as the case may be, irrespective of the termination of this Agreement and without giving effect to the limitations on actions by the Required Lenders contained in <u>Section</u> <u>10.01</u> of this Agreement), (iv) the Administrative Agent on behalf of such acquisition vehicle or vehicles shall be authorized to issue to each of the Secured Parties, ratably on account of the relevant Obligations which were credit bid, interests, whether as equity, partnership, limited partnership interests or membership interests, in any such acquisition vehicle and/or debt instruments issued by such acquisition vehicle, all without the need for any Secured Party or acquisition vehicle to take any further action, and (v) to the extent that Obligations that are assigned to an acquisition vehicle are not used to acquire Collateral for any reason (as a result of another bid being higher or better, because the amount of Obligations assigned to the acquisition vehicle exceeds the amount of Obligations credit bid by the acquisition vehicle or otherwise), such Obligations shall automatically be reassigned to the Secured Parties pro rata with their original interest in such Obligations and the equity interests and/or debt instruments issued by any acquisition vehicle on account of such Obligations shall automatically be cancelled, without the need for any Secured Party or any acquisition vehicle to take any further action. Notwithstanding that the ratable portion of the Obligations of each Secured Party are deemed assigned to the acquisition vehicle or vehicles as set forth in <u>clause (ii)</u> above, each Secured Party shall execute such documents and provide such information regarding the Secured Party (and/or any designee of the Secured Party which will receive interests in or debt instruments issued by such acquisition vehicle) as the Administrative Agent may reasonably request in connection with the formation of any acquisition vehicle, the formulation or submission of any credit bid or the consummation of the transactions contemplated by such credit bid.

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Section 9.18 <u>Certain ERISA Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of the Agents and not, for the avoidance of doubt, to or for the benefit of the Borrowers or any other Loan Party, that at least one of the following is and will be true:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Lender is not using "plan assets" (within the meaning of Section 3(42) of ERISA or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) of one or more Benefit Plans with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments or this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 9623 (a class exemption for certain transactions determined by in-house asset managers), is applicable so as to exempt from the prohibitions of Section 406 of ERISA and Section 4975 of the Code with such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) such Lender is an investment fund managed by a "Qualified Professional Asset Manager" (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Commitments, and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Commitments, and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such other representation, warranty and covenant as may be agreed in writing between the Agents, in their sole discretion, and such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, unless either (1) <u>sub-clause (i</u>) in the immediately preceding <u>clause (a)</u> is true with respect to a Lender or (2) a Lender has provided another representation, warranty and covenant in accordance with <u>sub-clause (iv)</u> in the immediately preceding <u>clause (a)</u>, such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Agents and not, for the avoidance of doubt, to or for the benefit of the Borrowers or any other Loan Party, that none of the Agents is a fiduciary with respect to the assets of such Lender involved in such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by any Agent under this Agreement, any Loan Document or any documents related hereto or thereto).

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**ARTICLE X** 

**MISCELLANEOUS** 

Section 10.01 <u>Amendments, Etc</u>. Except as otherwise expressly set forth in this Agreement or the applicable Loan Document, no amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by the Borrowers or any other Loan Party therefrom, shall be effective unless in writing signed by the Required Lenders (or by the Administrative Agent at the instruction of the Required Lenders) and the Borrowers or the applicable Loan Party, as the case may be, and acknowledged by the Administrative Agent to the extent the Administrative Agent is not a Defaulting Lender (other than with respect to any amendment or waiver contemplated in <u>clauses (a)</u> through <u>(k)</u> below, which shall only require the consent of the Lenders expressly set forth therein and not the Required Lenders), and each such amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; *provided*, *however*, that no such amendment, waiver or consent shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) extend or increase the Commitment of any Lender, or reinstate the Commitment of any Lender after the termination of such Commitment pursuant to <u>Section</u> <u>8.02</u>, in each case without the written consent of such Lender (it being understood that the waiver of (or amendment to the terms of) any Default or Event of Default, mandatory prepayment or mandatory reduction of the Commitments shall not constitute an extension or increase of any Commitment of any Lender);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) postpone any date scheduled for, or reduce the amount of, any payment of principal of, or interest on, any Loan or L/C Borrowing or any fees or other amounts payable hereunder, without the written consent of each Lender directly and adversely affected thereby (and subject to such further requirements as may be applicable thereto under <u>Section</u> <u>2.19</u>), it being understood that a waiver of any condition precedent set forth in <u>Section</u> <u>4.02</u> or the waiver of any obligation to pay interest at the Default Rate, or the amendment of the definitions of any ratio used in the calculation of any rate of interest or fees (or the component definitions thereof), or the amendment or waiver of the MFN Provision, or the amendment or waiver of any mandatory prepayment of any Term Loans shall not constitute a postponement of any date scheduled for or reduction of the payment of principal, interest or fees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) reduce the principal of, or the rate of interest specified herein on, or change the currency of, any Loan or L/C Borrowing (it being understood that a waiver of any Default or Event of Default or mandatory prepayment shall not constitute a reduction or forgiveness of principal and the amendment of the definitions of any ratio used in the calculation of any rate of interest or fees (or the component definitions thereof shall not constitute a reduction in the rate of interest specified herein), or any fees or other amounts payable hereunder or under any other Loan Document without the written consent of each Lender directly and adversely affected thereby; *provided*, *however*, that only the consent of the Required Lenders shall be necessary to amend the definition of "Default Rate", to waive any obligation of the Borrowers to pay interest at the Default Rate or to waive or amend the MFN Provision;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) amend or otherwise modify <u>Section</u> <u>6.01(c)</u> or <u>Section</u> <u>6.02</u>, without the consent of a majority of the Lenders that have selected the "Private Side Information" or similar designation (as in effect at the time of the relevant vote); *provided*, *however*, that the amendments, modifications, waivers and consents described in this <u>clause (d)</u> shall not require the consent of any Lenders other than a majority of the Lenders that have selected the "Private Side Information" or similar designation (as in effect at the time of the relevant vote);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) change (i) any provision of this <u>Section</u> <u>10.01</u>, or the definition of "Required Lenders", or any other provision hereof specifying the number or percentage of Lenders or portion of the Loans or Commitments required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder (other than the definition specified in <u>clauses (ii)</u> and (iii) of this <u>Section</u> <u>10.01(e)</u> or modifications in connection with repurchases of Term Loans, amendments with respect to the New Term Facilities or New Revolving Facility and amendments with respect to extensions of maturity, which shall only require the written consent of each Lender directly and adversely affected thereby), without the written consent of each Lender directly and adversely affected thereby, (ii) the definition of "Required Revolving Lenders," without the written consent of each Revolving Credit Lender or (iii) the definition of "Required Delayed Draw Lenders," without the written consent of each Delayed Draw Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) (i) other than in a transaction permitted under <u>Section</u> <u>7.03</u> or <u>Section</u> <u>7.04</u>, release all or substantially all of the Liens on the Collateral or (ii) other than (x) with respect to the approval of a debtor-in-possession financing or (y) to the extent the opportunity to participate in such priming debt is offered to all of the Lenders on a pro rata basis (other than any requirement to offer to all Lenders bona fide backstop fees and reimbursement of counsel fees and other expenses incurred in connection with the negotiation of the terms of such transaction), subordinate the payment and/or lien priority of the Secured Obligations, in each case of this <u>clause (f)</u>, in any transaction or series of related transactions, in each case, without the written consent of each Lender directly and adversely affected thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) other than in a transaction permitted under <u>Section</u> <u>7.03</u> or <u>Section</u> <u>7.04</u>, release all or substantially all of the aggregate value of the Guaranty, or all or substantially all of the Guarantors, without the written consent of each Lender directly and adversely affected thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) amend or otherwise modify <u>Section</u> <u>8.04</u>, <u>Section</u> <u>2.12(a)</u> or <u>Section</u> <u>2.13</u>, in each case, in a manner that would by its terms alter the order of application of proceeds, without the written consent of each Lender directly and adversely affected thereby; *provided*, *however*, that (i) no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent, the Collateral Agent in their respective capacities as such, in addition to the Borrowers and the Lenders required above, affect the rights or

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duties of, or any fees or other amounts payable to, the Administrative Agent or the Collateral Agent, as applicable, under this Agreement or any other Loan Document; (ii) any fee letter may be amended, or the rights or privileges thereunder waived, in a writing executed only by the parties thereto and (iii) <u>Section</u> <u>10.07(g)</u> may not be amended, waived or otherwise modified without the consent of each Granting Lender all or any part of whose Loans are being funded by an SPC at the time of such amendment, waiver or other modification. Notwithstanding anything to the contrary herein, any amendment, modification, waiver or other action which by its terms requires the consent of all Lenders or each affected Lender may be effected with the consent of the applicable Lenders other than Defaulting Lenders or Affiliate Lenders (other than Debt Fund Affiliates), except that (x) no amendment, waiver or consent relating to <u>Section</u> <u>10.01(a)</u>, <u>(b)</u> or <u>(c)</u> may be effected, in each case without the consent of such Defaulting Lender or Affiliate Lender and (y) any amendment, modification, waiver or other action that by its terms adversely affects any Defaulting Lender or Affiliate Lender in its capacity as a Lender in a manner that differs in any material respect from, and is more adverse to such Defaulting Lender or Affiliate Lender than it is to, other affected Lenders shall require the consent of such Defaulting Lender or Affiliate Lender. Notwithstanding anything to the contrary herein, any waiver, amendment, modification or consent in respect of this Agreement or any other Loan Document that by its terms affects the rights or duties under this Agreement or any other Loan Document of Lenders holding Loans or Commitments of a particular Tranche (but not the Lenders holding Loans or Commitments of any other Tranche) may be effected by an agreement or agreements in writing entered into by the Borrowers and the requisite percentage in interest of the Lenders with respect to such Tranche that would be required to consent thereto under this <u>Section</u> <u>10.01</u> if such Lenders were the only Lenders hereunder at the time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (a) amend or otherwise modify <u>Section</u> <u>7.08</u> (or for the purposes of determining compliance with the Financial Covenant, any defined terms used therein) or <u>Section</u> <u>8.03</u>, (b) waive or consent to any Default or Event of Default resulting from a breach of the Financial Covenant, (c) alter the rights or remedies of the Required Revolving Lenders arising pursuant to <u>Article VIII</u> as a result of a breach of <u>Section</u> <u>7.08</u> or (d) waive any condition precedent set forth in <u>Section</u> <u>4.02</u> with respect to Credit Extensions involving the Revolving Credit Facility, in each case, without the written consent of the Required Revolving Lenders (other than any Defaulting Lender); *provided*, *however*, that the amendments, modifications, waivers and consents described in this <u>clause (i)</u> shall not require the consent of any Lenders other than the Required Revolving Lenders; *provided*, *further*, that (i) no amendment, waiver or consent shall, unless in writing and signed by an L/C Issuer in addition to the Borrowers and the Lenders required above, affect the rights or duties of such L/C Issuer, in its capacity as such, under this Agreement or any Letter of Credit Application or other Issuer Document relating to any Letter of Credit issued or to be issued by it and (ii) to the extent any Lenders under any New Revolving Facility have elected to not receive the benefit of the Financial Covenant, the New Revolving Commitments and New Revolving Loans of such Lenders shall be excluded in calculating the votes of any "Required Revolving Lenders" for purposes of this <u>Section</u> <u>10.01(i)</u>, <u>Section</u> <u>8.01(b)</u>, <u>Section</u> <u>8.02</u> or <u>Section</u> <u>8.03;</u>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) except to the extent permitted by <u>clause (f)</u> above, subordinate the Obligations hereunder or the Liens granted hereunder or under the other Loan Documents, to any other Indebtedness or Lien (including, without limitation, any Indebtedness or Lien issued under this Agreement or any other agreement), as the case may be, without the consent of each Lender directly and adversely affected thereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) require the consent of any Lenders other than the Required Delayed Draw Lenders to amend, waive or otherwise modify any condition precedent set forth in <u>Section</u> <u>4.03</u> with respect to the making of Delayed Draw Term Loans or the use of proceeds thereof as set forth in <u>Sections 5.07</u> and <u>6.11</u>.

This <u>Section</u> <u>10.01</u> shall be subject to any contrary provision of <u>Section</u> <u>2.14</u> or <u>Section</u> <u>2.18</u>. In addition, notwithstanding anything else to the contrary contained in this <u>Section</u> <u>10.01</u>, (a) amendments and modifications in connection with the transactions provided for by <u>Section</u> <u>2.14</u> or <u>Section</u> <u>2.18</u> that benefit existing Lenders may be effected without such Lenders' consent, (b) if the Administrative Agent and the Borrowers shall have jointly identified an obvious error or any error, ambiguity or omission, defect or inconsistency of a technical nature, in each case, in any provision of the Loan Documents, then the Administrative Agent and the Borrowers shall be permitted to amend such provision without any further action or consent of any other party (with notice given to the Lenders of any such amendment) and (c) the Administrative Agent and the Borrowers shall be permitted to amend any provision of any Collateral Document, the Guaranty, or enter into any new agreement or instrument, to be consistent with this Agreement and the other Loan Documents or as required by local law to give effect to any guaranty, or to give effect to or to protect any security interest for the benefit of the Secured Parties, in any property so that the security interests comply with applicable Law, and in each case, such amendments, documents and agreements shall become effective without any further action or consent of any other party to any Loan Document.

Notwithstanding anything to the contrary herein, in connection with any amendment, modification, waiver or other action requiring the consent or approval of Required Lenders, Lenders that are Debt Fund Affiliates shall not be permitted, in the aggregate, to account for more than 49.9% of the amounts actually included in determining whether the threshold in the definition of "Required Lenders" has been satisfied.

The voting power of each Lender that is a Debt Fund Affiliate shall be reduced, pro rata, to the extent necessary in order to comply with the immediately preceding sentence.

Notwithstanding anything to the contrary herein, in connection with any determination as to whether the Required Lenders have (A) consented (or not consented) to any amendment or waiver of any provision of this Agreement or any other Loan Document or any departure by any Loan Party therefrom, (B) otherwise acted on any matter related to any Loan Document, or (C) directed or required the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) with respect to or under any Loan Document, any Lender (other than (x) any Lender that is a Regulated Bank or (y) any Revolving Credit Lender or, in each case, any of their Affiliates) that, as a result of its interest in any total return swap, total rate of return swap, credit default swap or other

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derivative contract (other than any such total return swap, total rate of return swap, credit default swap or other derivative contract entered into pursuant to bona fide market making activities), has a net short position with respect to the Loans and/or Commitments (each, a "**Net Short Lender**") shall have no right to vote any of its Loans and Commitments and shall be deemed to have voted its interest as a Lender without discretion in the same proportion as the allocation of voting with respect to such matter by Lenders who are not Net Short Lenders. For purposes of determining whether a Lender has a "net short position" on any date of determination: (i) derivative contracts with respect to the Loans and Commitments and such contracts that are the functional equivalent thereof shall be counted at the notional amount thereof in Dollars, (ii) the notional amounts in other currencies shall be converted to the dollar equivalent thereof by such Lender in a commercially reasonable manner consistent with generally accepted financial practices and based on the prevailing conversion rate (determined on a mid-market basis) on the date of determination, (iii) derivative contracts in respect of an index that includes any of the Borrowers or other Loan Parties or any instrument issued or guaranteed by any of the Borrowers or other Loan Parties shall not be deemed to create a short position with respect to the Loans and/or Commitments, so long as (x) such index is not created, designed, administered or requested by such Lender or its Affiliates and (y) the Borrowers and the other Loan Parties and any instrument issued or guaranteed by any of the Borrowers or other Loan Parties, collectively, shall represent less than five percent (5%) of the components of such index, (iv) derivative transactions that are documented using either the 2014 ISDA Credit Derivatives Definitions or the 2003 ISDA Credit Derivative Definitions (collectively, the "**ISDA CDS Definitions**") shall be deemed to create a short position with respect to the Loans and/or Commitments if such Lender is a protection buyer or the equivalent thereof for such derivative transaction and (x) the Loans or the Commitments are a "Reference Obligation" under the terms of such derivative transaction (whether specified by name in the related documentation, included as a "Standard Reference Obligation" on the most recent list published by Markit, if "Standard Reference Obligation" is specified as applicable in the relevant documentation or in any other manner), (y) the Loans or the Commitments would be a "Deliverable Obligation" under the terms of such derivative transaction or (z) any of the Borrowers or other Loan Parties (or its successor) is designated as a "Reference Entity" under the terms of such derivative transaction, and (v) credit derivative transactions or other derivatives transactions not documented using the ISDA CDS Definitions shall be deemed to create a short position with respect to the Loans and/or Commitments if such transactions are functionally equivalent to a transaction that offers the Lender protection in respect of the Loans or the Commitments, or as to the credit quality of any of the Borrowers or other Loan Parties other than, in each case, as part of an index so long as (x) such index is not created, designed, administered or requested by such Lender and (y) the Borrowers and other Loan Parties and any instrument issued or guaranteed by any of the Borrowers or other Loan Parties, collectively, shall represent less than five percent (5%) of the components of such index. In connection with any such determination, each Lender shall promptly notify the Administrative Agent in writing that it is a Net Short Lender, or shall otherwise be deemed to have represented and warranted to the Borrowers and the Administrative Agent that it is not a Net Short Lender (it being understood and agreed that the Borrowers and the Administrative Agent shall each be entitled to rely on each such representation and deemed representation without independent verification thereof).

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Section 10.02 <u>Notices; Electronic Communications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Unless otherwise expressly provided herein, 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 as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the Holding Companies, any other Loan Party, the Administrative Agent, the Collateral Agent or any L/C Issuer to the address, telecopier number, electronic mail address or telephone number specified for such Person on <u>Schedule 10.02</u> or to such other address, telecopier number, electronic mail address or telephone number as shall be designated by such party in a notice to the other parties hereto, as provided in <u>Section</u> <u>10.02(d)</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to any other Lender, to the address, telecopier number, electronic mail address or telephone number specified in its Administrative Questionnaire.

Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications 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 and other communications delivered through electronic communications to the extent provided in <u>clause (b)</u> below shall be effective as provided in such <u>clause (b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Electronic Communications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notices and other communications to the Lenders and the L/C Issuers hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent; *provided* that the foregoing shall not apply to notices to any Lender or any L/C Issuer pursuant to <u>Article II</u> if such Lender or such L/C Issuer, as applicable, has notified the Administrative Agent that it is incapable of receiving, or is unwilling to receive, notices under <u>Article II</u> by electronic communication. The Administrative Agent or the Borrower Representative may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; *provided* that approval of such procedures may be limited to particular notices or communications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Administrative Agent, the Lenders and the L/C Issuers agree that the Borrowers may, but shall not be obligated to, make any Borrower Communications to the Administrative Agent through an electronic platform chosen by the Administrative Agent to be its electronic transmission system (the "**Approved Borrower Portal**").

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Unless the Administrative Agent otherwise prescribes (with the Borrowers' consent), (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgment 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 <u>clause (i)</u> of notification that such notice or communication is available and identifying the website address therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>The Platform</u>. THE PLATFORM IS PROVIDED "AS IS" AND "AS AVAILABLE." THE AGENT-RELATED PERSONS DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT-RELATED PERSON IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM. In no event shall any Agent-Related Person have any liability to any Loan Party or any of their respective Subsidiaries, any Lender, any L/C Issuer or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Borrowers' or the Administrative Agent's transmission of Borrower Materials through the Internet or through the Platform, any other electronic platform or electronic messaging service, except to the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and non-appealable judgment to have resulted from the gross negligence, bad faith or willful misconduct of, or material breach of the Loan Documents by, such Agent-Related Person; *provided*, *however*, that in no event shall any Agent-Related Person have any liability to any Loan Party or any of their respective Subsidiaries, any Lender, any L/C Issuer or any other Person for indirect, special, incidental, consequential or punitive damages (as opposed to direct or actual damages).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Change of Address, Etc.</u> Each of the Holding Companies, the Borrowers, the other Guarantors, the Administrative Agent, the Collateral Agent and each L/C Issuer may change its address, telecopier, telephone number or electronic mail address for notices and other communications hereunder by notice to the other parties hereto. Each other Lender may change its address, telecopier, telephone number or electronic mail address for notices and other communications hereunder by notice to the Borrower Representative, the Administrative Agent and each L/C Issuer. In addition, each Lender agrees to notify the Administrative Agent from time to time to ensure that the Administrative Agent has on record (i) an effective address, contact name, telephone number, telecopier number and electronic mail address to which notices and other communications may be sent and (ii) accurate wire instructions for such Lender. Furthermore, each Public Lender agrees to cause at least one individual at or on behalf of such Public Lender to at all times have selected the "Private Side Information" or similar designation on the content declaration screen of the Platform in order to enable such Public Lender or its delegate, in accordance

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with such Public Lender's compliance procedures and applicable Law, including United States federal and state securities Laws, to make reference to Borrower Materials that are not made available through the "Public Side Information" portion of the Platform and that may contain material nonpublic information with respect to the Borrowers or their securities for purposes of United States federal or state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Reliance by Administrative Agent, Collateral Agent, L/C Issuer and Lenders</u>. The Administrative Agent, the Collateral Agent, the L/C Issuers and the Lenders shall be entitled to rely and act upon any notices (including telephonic Committed Loan Notices) purportedly given by or on behalf of the Borrowers even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof except to the extent such reliance is deemed to be gross negligence, bad faith or willful misconduct of, or material breach of the Loan Documents by, the Administrative Agent, Collateral Agent, L/C Issuer or Lender in a final non-appealable judgment of a court of competent jurisdiction. The Borrowers shall indemnify the Administrative Agent, the Collateral Agent, each L/C Issuer, each Lender and the Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of the Borrowers to the extent required by <u>Section</u> <u>10.05</u>. All telephonic notices to and other telephonic communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents to such recording.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Approved Borrower Portals</u>. 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 facsimile 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 Approved Borrower Portals, to the extent provided in paragraph (i) below, shall be effective as provided in said paragraph (i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notices and other communications to the Borrowers, any Loan Party, the Lenders, the Administrative Agent and the L/C Issuers hereunder may be delivered or furnished by using Approved Borrower Portals, in each case, pursuant to procedures approved by the Administrative Agent; *provided* that the foregoing shall not apply to notices pursuant to <u>Article VIII</u> unless otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Although the Approved Borrower Portal and its primary web portal are secured with generally-applicable security procedures and policies implemented or modified by the Administrative Agent from time to time (including, as of the Closing Date, a user ID/password authorization system), each of the Lenders, each of the L/C Issuers and the Borrowers acknowledges and agrees that the distribution of material through an electronic medium is not necessarily secure, that the Administrative Agent is not

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responsible for approving or vetting the representatives or contacts of the Borrowers that are added to the Approved Borrower Portal, and that there may be confidentiality and other risks associated with such distribution. Each of the Lenders, each of the L/C Issuers and the Borrowers hereby approves distribution of Borrower Communications through the Approved Borrower Portal and understands and assumes the risks of such distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) THE APPROVED BORROWER PORTAL IS PROVIDED "AS IS" AND "AS AVAILABLE". THE APPLICABLE PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER COMMUNICATION, OR THE ADEQUACY OF THE APPROVED BORROWER PORTAL AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE APPROVED BORROWER PORTAL AND THE BORROWER COMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE APPLICABLE PARTIES IN CONNECTION WITH THE BORROWER COMMUNICATIONS OR THE APPROVED BORROWER PORTAL. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT, ANY ARRANGER OR ANY OF THEIR RESPECTIVE RELATED PARTIES (COLLECTIVELY, "APPLICABLE PARTIES") HAVE ANY LIABILITY TO ANY LOAN PARTY, ANY LENDER, ANY L/C ISSUER OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF THE BORROWER'S TRANSMISSION OF BORROWER COMMUNICATIONS THROUGH THE INTERNET OR THE APPROVED BORROWER PORTAL.

Section 10.03 <u>No Waiver; Cumulative Remedies; Enforcement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No failure by any Lender, any L/C Issuer, the Administrative Agent or the Collateral Agent to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder or under any other Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges provided hereunder and under each other Loan Document, are cumulative and not exclusive of any rights, remedies, powers and privileges provided by Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary contained herein or in any other Loan Document, the authority to enforce rights and remedies hereunder and under the other Loan Documents against the Loan Parties or any of them, and the right to realize upon any of the Collateral or to enforce any Guarantee of the Obligations shall be vested exclusively in, and all actions and proceedings at law in connection with such enforcement shall be instituted and maintained exclusively by, the Administrative Agent or the Collateral Agent in accordance with <u>Section</u> <u>8.02</u> for the benefit of all the Lenders and the L/C Issuers; *provided*, *however*, that the foregoing shall not prohibit (i) the Administrative Agent or the

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Collateral Agent from exercising on its own behalf the rights and remedies that inure to its benefit (solely in its capacity as the Administrative Agent or the Collateral Agent) hereunder and under the other Loan Documents, (ii) each L/C Issuer from exercising the rights and remedies that inure to its benefit (solely in its capacity as an L/C Issuer) hereunder and under the other Loan Documents, or (iii) any Lender from exercising setoff rights in accordance with <u>Section</u> <u>10.09</u> (subject to the terms of <u>Section</u> <u>2.13</u>); and *provided, further*, that if at any time there is no Person acting as Administrative Agent hereunder and under the other Loan Documents, then the Required Lenders shall have the rights otherwise ascribed to the Administrative Agent pursuant to <u>Section</u> <u>8.02</u>. In the event of a foreclosure by the Collateral Agent on any of the Collateral pursuant to a public or private sale, the Administrative Agent, the Collateral Agent or any Lender (or any person nominated by them) may be the purchaser of any or all of such Collateral at any such sale and the Administrative Agent, as agent for and representative of the Lenders (but not any Lender or Lenders in its or their respective individual capacities unless the Required Lenders shall otherwise agree in writing), shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral sold in any such public sale, to use and apply any of the Obligations as a credit on account of the purchase price for any Collateral payable by the Administrative Agent at such sale.

Notwithstanding anything to the contrary herein, each Lender agrees that it shall not, and hereby expressly and irrevocably waives any right to, take or institute any actions or proceedings, judicial or otherwise, for any right or remedy or assert any other Cause of Action against any Loan Party (including the exercise of any right of setoff, rights on account of any banker's lien or similar claim or other rights of self-help), or institute any actions or proceedings or any other Cause of Action, or otherwise commence any remedial procedures, against the Holding Companies, the Borrowers and/or any of their respective Subsidiaries or parent companies (including, without limitation, the Sponsor) with respect to any Collateral or any other property of any such Person, without the prior written consent of the Required Lenders.

Section 10.04 <u>Expenses</u>. The Borrowers agree, if the Closing Date occurs, (a) to pay or reimburse the Administrative Agent for all reasonable and documented out-of-pocket costs and expenses incurred in connection with the preparation, negotiation, syndication and execution of this Agreement and the other Loan Documents (including reasonable and documented out-of-pocket expenses incurred in connection with due diligence and travel, courier, reproduction, printing and delivery expenses), and any amendment, waiver, consent or other modification of the provisions hereof and thereof, and the consummation and administration of the transactions contemplated hereby and thereby, including the reasonable and documented out-of-pocket fees, disbursements and other charges of counsel (limited to the reasonable, documented out-of-pocket fees, disbursements and other charges of one primary counsel to the Administrative Agent and, if reasonably necessary, one local counsel to the Administrative Agent in each relevant material jurisdiction (which may include a single special counsel acting in multiple jurisdictions, in each case, in relevant jurisdictions material to the interests of the Lenders)), and (b) to pay or reimburse the Administrative Agent, the other Agents and each Lender (including, for the avoidance of doubt, each L/C Issuer) for all reasonable documented out-of-pocket costs and expenses incurred in connection with the enforcement of any rights or

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remedies under this Agreement or the other Loan Documents (including all such reasonable and documented out-of-pocket costs and expenses incurred during any legal proceeding, including any proceeding under any Debtor Relief Law or in connection with any workout or restructuring), including the reasonable and documented out-of-pocket fees, disbursements and other charges of counsel (limited to the reasonable fees, documented out-of-pocket disbursements and other charges of one counsel to the Administrative Agent, the other Agents and the Lenders taken as a whole, and, if reasonably necessary, of one local counsel to such Persons take as a whole in each relevant jurisdiction (which may include a single special counsel acting in multiple jurisdictions, in each case, in relevant jurisdictions material to the interests of the Lenders) and, in the event of any actual or perceived conflict of interest, one additional counsel in each relevant jurisdiction for each Lender or group of similarly affected Lenders or Agents taken as a whole subject to such conflict) excluding the fees and expenses of any other third-party advisors retained without the Borrowers' prior written consent. The foregoing costs and expenses shall include all reasonable search, filing, recording, title insurance and appraisal charges and fees, and other out-of-pocket expenses incurred by the Administrative Agent. All amounts due under this <u>Section</u> <u>10.04</u> shall be paid within 30 days (or such longer period as the Administrative Agent may agree to in its reasonable discretion) after invoiced or demand therefor (with a reasonably detailed invoice with respect thereto) (except for any such costs and expenses incurred prior to the Closing Date, which shall be paid on the Closing Date to the extent invoiced at least three Business Days prior to the Closing Date). The agreements in this <u>Section</u> <u>10.04</u> shall survive the termination of the Aggregate Commitments and repayment of all other Obligations. If the Borrowers fail to pay when due any costs, expenses or other amounts payable by it hereunder or under 273

any Loan Document, such amount may be paid on behalf of the Borrowers by the Administrative Agent after any applicable grace periods have expired, in its sole discretion and the Borrowers shall immediately reimburse the Administrative Agent, as applicable. This <u>Section</u> <u>10.04</u> shall not apply with respect to Taxes other than any Taxes arising from any non-Tax cost or expense.

Section 10.05 <u>Indemnification by the Borrower</u>s. The Borrowers shall indemnify and hold harmless each Arranger, each Agent-Related Person, each Lender, each L/C Issuer, each of their respective Affiliates and each partner, director, officer, employee, counsel, agent, successor, permitted assigns and representatives, trustees and advisors and attorneys-in-fact of the foregoing (collectively, the "**Indemnitees**") from and against (and will reimburse each Indemnitee, as and when incurred, for) any and all liabilities, obligations, losses, damages, penalties, claims, demands, actions, judgments, suits, costs (including settlement costs), disbursements, and reasonable and documented or invoiced out-of-pocket fees and expenses (but (x) limited, in the case of legal fees and expenses, to the reasonable and documented out- of-pocket fees, disbursements and other charges of (i) one counsel to the Indemnitees taken as a whole, (ii) in the case of an actual or perceived conflict of interest, where the Indemnitee affected by such conflict informs the Borrowers of such conflict and thereafter retains its own counsel, of another firm of counsel for each such affected Indemnitee in each relevant jurisdiction material to the interests of the Lenders, and (iii) if reasonably necessary, one local counsel in each jurisdiction material to the interests of the Indemnitees (which may include a single special counsel acting in

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multiple jurisdictions) and (y) excluding the fees and expenses of any other third-party advisors retained without the Borrowers' prior written consent) of any kind or nature whatsoever which may at any time be imposed on, incurred by or asserted or awarded against any such Indemnitee in any way relating to or arising out of or in connection with or by reason of (x) any actual or prospective claim, litigation, investigation or proceeding in any way relating to, arising out of, in connection with or by reason of any of the following, whether based on contract, tort or any other theory (including any investigation of, preparation for, or defense of any pending or threatened claim, investigation, litigation or proceeding): (a) the execution, delivery, enforcement, performance or administration of any Loan Document or any other agreement, letter or instrument delivered in connection with the transactions contemplated thereby or the consummation of the transactions contemplated thereby or (b) any Commitment, Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by any L/C Issuer 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); *provided* that such indemnity shall not, as to any Indemnitee, be available to the extent that such liabilities, obligations, losses, damages, penalties, claims, demands, actions, judgments, suits, costs, disbursements, fees or related expenses resulted from (A) the bad faith, gross negligence or willful misconduct of such Indemnitee or any of its Affiliates or controlling persons or any of the officers, directors, employees, agents, advisors, or members of any of the foregoing, as the case may be, as determined by a court of competent jurisdiction in a final and non-appealable decision, (B) a material breach of the Loan Documents by such Arranger, Agent-Related Person, Lender, L/C Issuer (or any of their respective Affiliates, partners, directors, officers, employees, counsel, agents and representatives), as the case may be, as determined by a court of competent jurisdiction in a final and non-appealable decision or (C) any dispute that is among Indemnitees (other than any dispute involving claims against the Administrative Agent, any Arranger or any other Agent or any L/C Issuer, in each case in their respective capacities as such) that did not involve actions or omissions of the Borrowers or their Subsidiaries or any of their respective Affiliates; or (y) any actual or alleged presence or Release of Hazardous Materials on, at, under or from any property currently or formerly owned, leased or operated by a Loan Party or any of its Subsidiaries and any other Environmental Liability related in any way to a Loan Party or any of its Subsidiaries ((x) and (y), collectively, the "**Indemnified Liabilities**"), in all cases, *provided* that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence, bad faith or willful misconduct of such Indemnitee. No Indemnitee shall be liable for any damages arising from the use by others of any information or other materials obtained through the Platform or other information transmission systems (including electronic telecommunications) in connection with this Agreement unless determined by a court of competent jurisdiction in a final and non- appealable judgment to have resulted from the gross negligence, bad faith or willful misconduct of such Indemnitee, nor shall any Indemnitee or any Loan Party or any of its Affiliates or representatives have any liability for any special, punitive, indirect or consequential damages relating to this Agreement or any other Loan Document or arising out of its activities in connection herewith or therewith (whether before or after the Closing Date); *provided* that such waiver

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of special, punitive, indirect or consequential damages shall not limit the indemnification obligations of the Loan Parties under this <u>Section</u> <u>10.05</u>. In the case of an investigation, litigation or other proceeding to which the indemnity in this <u>Section</u> <u>10.05</u> applies, such indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by any Loan Party, its directors, shareholders or creditors or an Indemnitee or any other Person, and whether or not any Indemnitee is otherwise a party thereto. Should any investigation, litigation or proceeding be settled, or if there is a judgment in any such investigation, litigation or proceeding, the Borrowers shall indemnify and hold harmless each Indemnitee in the manner set forth above; *provided* that the Borrowers shall not be liable for any settlement effected without the Borrowers' prior written consent (such consent not to be unreasonably withheld, delayed or conditioned). All amounts due under this <u>Section</u> <u>10.05</u> shall be payable within 30 days (or such longer period as any Agent may agree to in its reasonable discretion) after demand therefor (and after receipt by the Borrower Representative of a reasonably detailed invoice with respect thereto). The agreements in this <u>Section</u> <u>10.05</u> shall survive the resignation of the Administrative Agent, the replacement of any Lender, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations. This <u>Section</u> <u>10.05</u> shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim. Notwithstanding the foregoing, each Indemnitee shall be obligated to refund or return any and all amounts paid by the Borrowers under this <u>Section</u> <u>10.05</u> to such person for any losses, claims, damages, liabilities and expenses to the extent such person is not entitled to payment of such amounts in accordance with this <u>Section</u> <u>10.05</u>.

Section 10.06 <u>Payments Set Aside</u>. To the extent that any payment by or on behalf of the Borrowers is made to any Agent, to any L/C Issuer or any Lender, in each case in their capacities as such, or any Agent, any L/C Issuer or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by such Agent, such L/C Issuer or such Lender in its discretion) to be repaid to a trustee, monitor, receiver, interim receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender and each L/C Issuer severally agrees to pay to the Administrative Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by any Agent, *plus* interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from time to time in effect. The obligations of the Lenders and the L/C Issuers under <u>clause (b)</u> of the preceding sentence shall survive the payment in full of the Obligations and the termination of this Agreement.

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Section 10.07 <u>Successors and Assigns</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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 the Borrowers may not assign or otherwise transfer any of their rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee (other than to any Disqualified Institution or Natural Person) in accordance with the provisions of <u>Section</u> <u>10.07(b)</u>, (ii) by way of participation in accordance with the provisions of <u>Section</u> <u>10.07(d)</u>, (iii) by way of pledge or assignment of a security interest subject to the restrictions of <u>Section</u> <u>10.07(f)</u> or (iv) to an SPC in accordance with the provisions of <u>Section</u> <u>10.07(g)</u> (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 <u>Section</u> <u>10.07(d)</u> and, to the extent expressly contemplated hereby, the Indemnitees) any legal or equitable right, remedy or claim under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Lender may at any time assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment(s) and the Loans (including for purposes of this <u>Section</u> <u>10.07(b)</u>, participations in L/C Obligations) at the time owing to it); *provided* that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) in the case of an assignment of the entire remaining amount of the assigning Lender's Commitment under any Facility and the Loans at the time owing to it under such Facility or in the case of an assignment to another Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount shall need be assigned, and (B) in any case not described in <u>clause (b)(i)(A)</u> of this <u>Section</u> <u>10.07</u>, the aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable Commitment is not then in effect, the outstanding principal balance of the Loans of the assigning Lender subject to each such assignment, determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if "Trade Date" is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $5,000,000 (or equivalent) or in the case of an assignment of Term Commitments under any Term Facility or Term Loans, $1,000,000 (or equivalent) (or such lesser amount as is acceptable to the Administrative Agent and the Borrower Representative); *provided*, *however*, that concurrent assignments to members of an Assignee Group and concurrent assignments from members of an Assignee Group to a single Eligible Assignee (or to an Eligible Assignee and members of its Assignee Group) will be treated as a single assignment for purposes of determining whether such minimum amount has been met; *provided*, *further*, that the request for any consent of the Borrowers shall be delivered to both the Borrower Representative and the Sponsor (*<u>provided</u>* that a failure to so copy the Sponsor shall not render such assignment invalid or ineffective and <u>provided</u>, further, that the request for any consent of the Borrowers shall be delivered to both the Borrower Representative and the Sponsor (provided that a failure to so copy the Sponsor shall not render such assignment invalid or ineffective);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement with respect to the Loans or the Commitment assigned and shall be by novation, it being understood that this <u>clause (ii)</u> shall not prohibit any Lender from assigning all or a portion of its rights and obligations among separate Facilities (or tranche of any Facilities) on a non-pro rata basis;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no consent shall be required for any assignment except to the extent required by <u>clause (b)(i)(B)</u> of this <u>Section</u> <u>10.07</u> and, in addition (A) the consent of the Borrower Representative (such consent not to be unreasonably withheld, conditioned or delayed; *provided* that (x) the Borrower Representative shall have absolute consent rights with regards to any proposed assignment to a Disqualified Institution (or from any Person that is not a "Disqualified Institution" but is known by the Borrower Representative to be an Affiliate of a Disqualified Institution regardless of whether such Person is identifiable as an Affiliate of a Disqualified Institution on the basis of such Affiliates' name or otherwise and investment objectives and/or history of any proposed lender or its affiliates shall be a reasonable basis for the Borrower Representative to withhold consent) and (y) investment objectives and/or history of any proposed lender or its affiliates shall be a reasonable basis for the Borrower Representative to withhold consent) shall be required for any assignment unless (1) an Event of Default under <u>Section</u> <u>8.01(a)</u> (only with respect to principal and interest payments), <u>(f)</u> (solely with respect to the Borrowers) or <u>(g)</u> (solely with respect to the Borrowers) has occurred and is continuing at the time of such assignment (other than in the case of a proposed assignment to a Disqualified Institution); (2) such assignment is in respect of a Term Facility and is to a Lender, an Affiliate of a Lender or an Approved Fund (other than any Disqualified Institution); or (3) such assignment is in respect of the Revolving Credit Facility and made from a Revolving Credit Lender to any Affiliates of such Revolving Credit Lender or another Revolving Credit Lender (other than any Disqualified Institution); *provided* that (x) with respect to the Term Loans, the Borrower Representative shall be deemed to have consented to any assignment unless the Borrower Representative objects thereto by written notice to the Administrative Agent within ten Business Days after having received (and after the other individuals designated by the Borrower Representative having received, to the extent designated by the Borrower Representative pursuant to the last paragraph of <u>Section</u> <u>10.07(b)</u> prior to delivery of such notice to consent request to the Administrative Agent) notice thereof and (y) with respect to the Initial Revolving Tranche or other Revolving Tranches, the consent of Sponsor (not to be unreasonably withheld, conditioned or delayed (<u>provided</u> that it shall not be unreasonable for the Sponsor to withhold consent with respect to any Person that is not a "Disqualified Institution" but is known by the Sponsor to be an Affiliate of a Disqualified Institution regardless of whether such person is identifiable as an Affiliate of a Disqualified Institution on the basis of such Affiliate's name or otherwise)) will be required with respect to assignments (but for the avoidance of doubt, not participations) so long as the Sponsor directly or indirectly holds, collectively, in excess of 50.0% of the equity interests of the Borrowers (it being understood that the Sponsor shall be an express third party beneficiary of the provisions in this <u>clause (y)</u>); *provided* that no consent of the Sponsor shall be required (i) if an Event of Default pursuant to <u>Section</u> <u>8.01(a)</u>, <u>(f)</u> or <u>(g)</u> has occurred and is continuing at the time of such assignment, determined as of the date the assignment and assumption agreement with respect to such assignment is delivered to the Administrative Agent or, if a "trade date" is specified in the assignment and assumption agreement, as of the trade date or (ii) for assignment from a Lender to an Affiliate or Approved Fund of such Lender or to another Revolving Credit Lender, (B) the consent of the Administrative Agent (such consent not to be unreasonably withheld, conditioned or delayed) shall be

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required for any assignment unless (1) such assignment is in respect of a Term Facility and is to a Lender, an Affiliate of a Lender or an Approved Fund, (2) such assignment is in respect of the Revolving Credit Facility and is to a Revolving Credit Lender, an Affiliate of a Revolving Credit Lender or an Approved Fund related thereto (*provided* that in each case the Administrative Agent shall acknowledge any such assignment), or (3) such assignment is made pursuant to <u>clauses (i)</u> or <u>(j)</u> below, and (C) the consent of each L/C Issuer of the applicable Revolving Tranche (such consent not to be unreasonably withheld, conditioned or delayed) shall be required for any assignment in respect of the Revolving Credit Facility of such Revolving Tranche; *provided*, *however*, that the consent of each L/C Issuer shall not be required for any assignment in respect of a Term Loan and <u>provided</u> further that the Borrowers shall be permitted to designate up to three additional individuals (which shall include one on behalf of the Sponsor and one on behalf of the Borrowers, each of which shall be at their appropriate address for notices pursuant to <u>Section</u> <u>10.02</u>) who shall be copied on any consent requests (or receive separate notice of such proposed assignments) from the Administrative Agent; *provided* that a failure to so copy such individuals shall not render such assignments invalid or ineffective;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption via an electronic settlement system acceptable to the Administrative Agent (or, if previously agreed with the Administrative Agent, manually), together with a processing and recordation fee of $3,500 for each assignment except the Administrative Agent, in its sole discretion, may elect to waive such processing and recording fee in the case of any assignment). Each Eligible Assignee that is not an existing Lender shall deliver to the Administrative Agent an Administrative Questionnaire;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no such assignment shall be made (A) to any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute a Defaulting Lender or a Subsidiary of a Defaulting Lender, (B) to any Natural Person, (C) to any Disqualified Institution, (D) to the Holding Companies, the Borrowers or any their Subsidiaries except as permitted under <u>Section</u> <u>10.07(j)</u> below or (E) to any Affiliate Lender except as permitted under <u>Section</u> <u>10.07(i)</u> and any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this <u>clause (v)</u> shall be, at the Borrowers' option, declared (and shall thereafter automatically be) null and void; *provided*, *that* each Lender shall make an inquiry to the Administrative Agent as to whether a specific potential assignee or prospective participant is a Disqualified Institution and upon such inquiry by any Lender to the Administrative Agent, the Administrative Agent shall be permitted to disclose whether a specific potential assignee or prospective participant is a Disqualified Institution; *provided*, *further* that the Administrative Agent shall not be responsible or have any liability for, or have any duty to ascertain, inquire into, monitor or enforce, compliance with the provisions hereof relating to Disqualified Institutions and shall not be obligated to ascertain, monitor or inquire as to whether any Lender or Participant or prospective Lender or Participant is a Disqualified Institution or have any liability with respect to or arising out of any assignment or participation to or disclosure of confidential information to, a Disqualified Institution; *provided*, *further*, that the Administrative Agent shall not disclose (verbally or in writing) the list of entities that are Disqualified Institutions to any person, but may, upon the request

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or inquiry by any Lender, disclose whether a specific potential assignee or prospective participant is a Disqualified Institution to such Lender on a confidential basis in connection with a bona fide assignment or subparticipation upon request (*provided* that such Lender agrees to keep such information confidential and each Lender party to this Agreement (on or after the Closing Date) expressly acknowledges that the Disqualified Institutions list shall be treated as "Information" subject to the restrictions of <u>Section</u> <u>10.08</u>); *provided* that (i) in the case of any assignment deemed null and void pursuant to the foregoing (a "**Failed Assignment**"), resulting in the Loans and Commitments subject to the Failed Assignment (the "**Subject Loans and Commitments**") reverting to the assignor under such Failed Assignment and such assignor acquired the Subject Loans and Commitments pursuant to bona fide market-making activities (such assignor, the "**Intermediary**"), upon the Failed Assignment being deemed null and void, the Subject Loans and Commitments shall instead revert to the assignor under the Assignment and Assumption Agreement pursuant to which the Intermediary initially acquired the Loans and Commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) no Revolving Credit Commitments or Revolving Credit Loans may be assigned to any Affiliate Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the assigning Lender shall deliver any Notes or, in lieu thereof, a lost note affidavit and indemnity reasonably acceptable to the Borrower Representative evidencing such Loans to the applicable Borrowers or the Administrative Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) in connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrower Representative and the Administrative Agent, the applicable Pro Rata Share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent or any L/C Issuer or Lender hereunder (and interest accrued thereon) and (y) acquire (and fund as appropriate) its full Pro Rata Share of all Loans and participations in Letters of Credit in accordance with its Pro Rata Share; *provided* that notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable Law without compliance with the provisions of this clause, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to <u>Section</u> <u>10.07(c)</u>, from and after the effective date specified in each Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from

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its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of <u>Sections 3.01</u>, <u>3.04</u>, <u>3.05</u>, <u>10.04</u> and <u>10.05</u> with respect to facts and circumstances occurring prior to the effective date of such assignment, and subject to the obligations set forth in <u>Section</u> <u>10.08</u>). Upon request, and the surrender by the assigning Lender of its Note (or, in lieu thereof, a lost note affidavit and indemnity reasonably acceptable to the Borrower Representative), the applicable Borrowers (at its expense) shall execute and deliver a Note to the assignee Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement (other than any purported assignment or transfer to a Disqualified Institution) that does not comply with this <u>clause (b)</u> shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with <u>Section</u> <u>10.07(d)</u>. In connection with obtaining the Borrowers' consent to assignments in accordance with this <u>clause (b)</u>, the Borrowers shall be permitted to designate up to three additional individuals (which shall include one on behalf of the Sponsor and one on behalf of the Borrowers, each of which shall be at their appropriate address for notices pursuant to <u>Section</u> <u>10.02</u>) who shall be copied on any consent requests (or receive separate notice of such proposed assignments) from the Administrative Agent; *provided* that a failure to so copy such individuals shall not render such assignments invalid or ineffective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent, acting solely for this purpose as a non-fiduciary agent of the Borrowers, shall maintain at the Administrative Agent's Office a copy of each Assignment and Assumption delivered to it and a register in which it shall record the names and addresses of the Lenders, and the Commitments of, and principal amounts (and related interest amounts) of the Loans, L/C Obligations (specifying the Unreimbursed Amounts), L/C Borrowings and amounts due under <u>Section</u> <u>2.03</u>, owing to, each Lender pursuant to the terms hereof from time to time (the "**Register**"). The entries in the Register shall be conclusive, absent manifest error, and the Borrowers, the Agents and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. In addition, the Administrative Agent shall maintain on the Register information regarding the designation, and revocation of designation, of any Lender as Defaulting Lender. The Register shall be available for inspection by the Borrowers, any Agent and any Lender (but only entries with respect to itself), at any reasonable time and from time to time upon reasonable prior notice. This <u>Section</u> <u>10.07(c)</u>, <u>Section</u> <u>10.07(m)</u> and <u>Section</u> <u>2.11</u> shall be construed so that all Loans are at all times maintained in "registered form" within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the Code and any related Treasury Regulations (or any other relevant or successor provisions of the Code or of such Treasury Regulations).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any Lender may at any time, without the consent of, or notice to, the Borrowers, the Administrative Agent or the L/C Issuers, sell participations to any Person (other than a Natural Person, an Affiliate Lender (other than a Debt Fund Affiliate), a Person that the Administrative Agent has identified in a notice to the Lenders as a Defaulting Lender or a Disqualified Institution) (each, a "**Participant**") in all or a portion of such Lender's rights and/or obligations under this Agreement (including all or a portion

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of its Commitment and/or the Loans (including such Lender's participations in L/C Obligations) owing to it); *provided* that (i) such Lender's obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrowers, the Agents and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and the other Loan Documents and to approve any amendment, modification or waiver of any provision of this Agreement or any other Loan Document unless otherwise agreed by the Borrowers; *provided* that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in the first proviso to <u>Section</u> <u>10.01</u> (in the case of any amendment, waiver or other modification described in <u>clause (a)</u>, <u>(b)</u>, <u>(c)</u>, <u>(e)</u>, <u>(f)(i)</u> or <u>(g)</u> of such proviso, that directly and adversely affects such Participant). Subject to <u>Section</u> <u>10.07(e)</u>, the Borrowers agree that each Participant shall be entitled to the benefits of <u>Sections 3.01</u>, <u>3.04</u> and <u>3.05</u> (subject to the requirements and the limitations of such Sections (it being understood that the documentation required under <u>Section</u> <u>3.01(h)</u> shall be delivered solely to the participating Lender), <u>Section</u> <u>3.07</u> and <u>Section</u> <u>3.08</u>) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to <u>Section</u> <u>10.07(b)</u>. To the extent permitted by law, each Participant also shall be entitled to the benefits of <u>Section</u> <u>10.09</u> as though it were a Lender; *provided* such Participant agrees to be subject to <u>Section</u> <u>2.13</u> as though it were a Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) A Participant (i) agrees to be subject to the provisions of <u>Section</u> <u>3.08</u> as if it were an assignee pursuant to <u>Section</u> <u>10.07(b)</u> and (ii) shall not be entitled to receive any greater payment under <u>Section</u> <u>3.01</u>, <u>3.04</u> or <u>3.05</u> than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, except to the extent that a Participant's right to a greater payment results from a change in any Law after the Participant becomes a Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including under its Note, if any) (other than to a Disqualified Institution or a Natural Person) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a FRB or any central bank having jurisdiction over such Lender; *provided* that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding anything to the contrary herein, any Lender (a "**Granting Lender**") may grant to a special purpose funding vehicle identified as such in writing from time to time by the Granting Lender to the Administrative Agent and the Borrowers (an "**SPC**") the option to provide all or any part of any Loan that such Granting Lender would otherwise be obligated to make pursuant to this Agreement; *provided* that (i) nothing herein shall constitute a commitment by any SPC to fund any Loan, and (ii) if an SPC elects not to exercise such option or otherwise fails to make all or any part of such Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof or, if it fails to

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do so, to make such payment to the Administrative Agent as is required under <u>Section</u> <u>2.12(b)</u>. Each party hereto hereby agrees that an SPC shall be entitled to the benefits of <u>Sections 3.01</u>, <u>3.04</u> and <u>3.05</u> (subject to the requirements and the limitations of such Sections, <u>Section</u> <u>3.07</u> and <u>Section</u> <u>3.08</u>); *provided* that neither the grant to any SPC nor the exercise by any SPC of such option shall increase the costs or expenses or otherwise increase or change the obligations of the Borrowers under this Agreement (including under <u>Section</u> <u>3.01</u>, <u>3.04</u> or <u>3.05</u>), except to the extent that the SPC's right to a greater payment results from a change in any Law after the grant to the SPC takes place. Each party hereto further agrees that (i) no SPC shall be liable for any indemnity or similar payment obligation under this Agreement for which a Lender would be liable, and (ii) the Granting Lender shall for all purposes, including the approval of any amendment, waiver or other modification of any provision of any Loan Document, remain the Lender of record hereunder. Other than as expressly provided in this <u>Section</u> <u>10.07(g)</u>, (A) such Granting Lender's obligations under this Agreement shall remain unchanged, (B) such Granting Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (C) the Borrowers, the Agents and the other Lenders shall continue to deal solely and directly with such Granting Lender in connection with such Granting Lender's rights and obligations under this Agreement. The making of a Loan by an SPC hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as if, such Loan were made by such Granting Lender. In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after the payment in full of all outstanding commercial paper or other senior debt of any SPC, it will not, other than in respect of matters unrelated to this Agreement or the transactions contemplated hereby, institute against, or join any other Person in instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency, or liquidation proceeding under the laws of the United States or any State thereof. Notwithstanding anything to the contrary contained herein, any SPC may (i) with notice to, but without prior consent of the Borrower Representative and the Administrative Agent and with the payment of a processing fee of $3,500 for each assignment, assign all or any portion of its rights hereunder with respect to any Loan to the Granting Lender and (ii) subject to <u>Section</u> <u>10.08</u>, disclose on a confidential basis any non-public information relating to its funding of Loans to any rating agency, commercial paper dealer or provider of any surety or Guarantee or credit or liquidity enhancement to such SPC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Notwithstanding anything to the contrary herein, any Lender that is a Fund may create a security interest in all or any portion of the Loans owing to it and the Note, if any, held by it to the trustee for holders of obligations owed, or securities issued, by such Fund as security for such obligations or securities; *provided* that unless and until such trustee actually becomes a Lender in compliance with the other provisions of this <u>Section</u> <u>10.07</u>, (i) no such pledge shall release the pledging Lender from any of its obligations under the Loan Documents, and (ii) such trustee shall not be entitled to exercise any of the rights of a Lender under the Loan Documents even though such trustee may have acquired ownership rights with respect to the pledged interest through foreclosure or otherwise.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding anything to the contrary herein, any Lender may assign all or any portion of its Term Loans, Specified Refinancing Term Loans and New Term Loans hereunder to any Affiliate Lender (including any Sponsor, any Debt Fund Affiliate or any Non-Debt Fund Affiliate), but only if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the assigning Lender and Affiliate Lender purchasing such Lender's Term Loans, Specified Refinancing Term Loans or New Term Loans, as applicable, shall execute and deliver to the Administrative Agent an assignment agreement substantially in the form of <u>Exhibit D-2</u> hereto in lieu of an Assignment and Assumption;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) after giving effect to such assignment, Affiliate Lenders (other than Debt Fund Affiliates) shall not, in the aggregate, own or hold Term Loans and any *pari passu* Specified Refinancing Term Loans and New Term Loans with an aggregate principal amount in excess of 25.0% in the aggregate of the principal amount of all such Indebtedness then outstanding (calculated as of the date of such purchase); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such Affiliate Lender (other than Debt Fund Affiliates) shall at all times thereafter be subject to the voting restrictions specified in <u>Section</u> <u>10.01</u>;

provided that, it is understood that Sponsor, any Debt Fund Affiliate or any Non-Debt Fund Affiliate may purchase Term Loans, Specified Refinancing Term Loans or New Term Loans, pursuant to a Dutch Auction open to all Term Lenders, Specified Refinancing Term Loan lenders or New Term Loan lenders on a pro rata basis or as an open market purchase or other privately negotiated purchases (including pursuant to bilateral negotiated arrangements).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) (I) Notwithstanding anything to the contrary herein, so long as no Default or Event of Default exists, any Lender may assign all or any portion of its Term Loans, Specified Refinancing Term Loans and New Term Loans hereunder to the Holding Companies or any of their Subsidiaries, but only if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) such assignment is made pursuant to a Dutch Auction open to all Term Lenders, Specified Refinancing Term Loan lenders or New Term Loan lenders on a pro rata basis or (B) such assignment is made as an open market purchase or other privately negotiated purchases (including pursuant to bilateral negotiated arrangements); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any such Term Loans shall be automatically and permanently cancelled immediately upon acquisition thereof by the Holding Companies or any of its Subsidiaries.

In connection with any assignment pursuant to <u>Section</u> <u>10.07(i)</u> or <u>(j)</u>, each Lender acknowledges and agrees that, in connection therewith, (1) the Affiliate Lender, the Holding Companies and/or any of their Subsidiaries may have, and later may come into possession of, information regarding either Sponsor, the Holding Companies, any of their Subsidiaries and/or any of their respective Affiliates not known to such Lender and that may be material to a decision by such Lender to participate in such assignment (including material non-public information) ("**Excluded Information**"), (2) such Lender, independently and, without reliance on the Affiliate Lender, the Holding Companies, any of their Subsidiaries, any Agent or any of their respective Affiliates, has made its own analysis and determination to participate in such assignment notwithstanding such Lender's lack of knowledge of the Excluded Information, (3) none of the Affiliate Lender,

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the Holding Companies, any of their Subsidiaries, any Agent or any of their respective Affiliates shall have any liability to such Lender, and such Lender hereby waives and releases, to the extent permitted by law, any claims such Lender may have against Affiliate Lender, the Holding Companies, any of its Subsidiaries, any Agent or any of their respective Affiliates, under applicable laws or otherwise, with respect to the nondisclosure of the Excluded Information and (4) no Affiliate Lender shall be required to represent that it is not in possession of any material non-public information with respect to the Holding Companies and/or any of its Subsidiaries or their respective securities in connection with any assignment pursuant to <u>Section</u> <u>10.07(i)</u> or <u>(j)</u> and all parties to the relevant assignments shall render customary "big boy" disclaimer letters or any such disclaimers shall be incorporated into the terms of the Assignment and Assumption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Notwithstanding anything to the contrary herein, (i) Affiliate Lenders (other than Debt Fund Affiliates) shall not have any right to attend (including by telephone) any meeting or discussions (or portion thereof) among the Administrative Agent or any other Lender to which representatives of the Borrowers are not then present, (ii) Affiliate Lenders (other than Debt Fund Affiliates) shall not have any right to receive any information or material prepared by the Administrative Agent or any other Lender or any communication by or among the Administrative Agent and one or more other Lenders, except to the extent such information or materials have been made available to the Borrowers or their representatives, (iii) no Revolving Credit Commitments or Revolving Credit Loans may be assigned to the Sponsor or any of its Affiliates and (iv) neither the Sponsor nor any of its Affiliates (other than Debt Fund Affiliates) may be entitled to receive advice of counsel to the Agents or other Lenders and none of them shall challenge any assertion of attorney-client privilege by any Agent or other Lender. The Borrowers and each Affiliate Lender (other than any Debt Fund Affiliates) hereby agrees that if a case under Title 11 of the Bankruptcy Code (or any similar or equivalent case or proceeding under any other Debtor Relief Laws) is commenced against the Borrowers, such Affiliate Lenders, with respect to any plan of reorganization that does not adversely affect any Affiliate Lender in any material respect as compared to other Lenders, shall be deemed to have voted in the same proportion as the Lenders that are not Affiliate Lenders voting on such matter; and each Affiliate Lender (other than any Debt Fund Affiliates) hereby acknowledges, agrees and consents that if, for any reason, its vote to accept or reject any plan pursuant to the Bankruptcy Code (or any other Debtor Relief Laws) is not deemed to have been so voted, then such vote will be "designated" pursuant to Section 1126(e) of the Bankruptcy Code (or any similar or equivalent provision of any other Debtor Relief Laws) such that the vote is not counted in determining whether the applicable class has accepted or rejected such plan in accordance with Section 1126(c) of the Bankruptcy Code (or any similar or equivalent provision of any other Debtor Relief Laws).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The applicable Lender, acting solely for this purpose as a non-fiduciary agent of the Borrowers, shall maintain a register on which it enters the name and address of (i) each SPC (other than any SPC that is treated as a disregarded entity of the Granting Lender for U.S. federal income tax purposes) that has exercised its option pursuant to <u>Section</u> <u>10.07(g)</u> and (ii) each Participant, and the amount of each such SPC's and

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Participant's interest in such Lender's rights and/or obligations under this Agreement or any Loan Document complying with the requirements of Sections 163(f), 871(h) and 881(c)(2) of the Code and the United States Treasury Regulations (the "**Participant Register**"); *provided* that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary in connection with a Tax audit or other proceeding to establish that such commitment, loan, letter of credit or other obligation is in registered form under United States Treasury Regulations Section 5f.103-1(c) and proposed United States Treasury Regulations Section 1.163-5(b) (or any amended or successor version). The entries in the Participant Register shall be conclusive absent manifest error, and the Borrowers and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of the applicable rights and/or obligations of such Lender under this Agreement, notwithstanding notice to the contrary. For the avoidance of doubt, the Administrative Agent shall have no obligation to maintain the Participant Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) In the event that a transfer by any of the Secured Parties of its rights and/or obligations under this Agreement (and/or any relevant Loan Document) occurred or was deemed to occur by way of novation, the Borrowers and any other Loan Parties explicitly agree that all securities and guarantees created under any Loan Documents shall be preserved for the benefit of the new Lender and the other Secured Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Notwithstanding anything to the contrary herein, if any Loans are assigned or any participations are purchased or otherwise acquired, without the Borrowers' consent (including, without limitation, in violation of <u>Section</u> <u>10.07(b)</u> or <u>(d)</u>), to any Disqualified Institution, then: (i) the Borrowers may, at their sole option, expense and effort, upon notice to the applicable Disqualified Institution and the Administrative Agent (*provided* that the Administrative Agent shall provide appropriate cooperation to effect this <u>Section</u> <u>10.07(o)</u>), (I) (x) terminate any commitment of such Disqualified Institution and repay any applicable outstanding Loans (at a price equal to the least of (A) par, (B) the amount that the applicable Disqualified Institution paid to acquire such Loans or participation and (C) the average trading price for such Loans over the immediately prior five trading days), without premium, penalty, prepayment fee, breakage or accrued interest, and/or (y) require such Disqualified Institution to assign its rights and obligations to one or more Eligible Assignees at the price indicated in the immediately preceding <u>clause (x)</u>, without premium, penalty, prepayment fee, accrued interest or breakage (which assignment shall not be subject to the processing and recordation fee described in <u>Section</u> <u>10.07(b)(iv)</u>) or (II) (x) force the termination of any participation with respect to any Participant which is a Disqualified Institution or terminate any commitment of a Lender which has sold a participation to a Participant which is a Disqualified Institution and repay any applicable outstanding Loans of such Lender (at a price equal to the least of (A) par, (B) the amount that the applicable Disqualified Institution paid to acquire such participation in such Loans and (C) the average trading price for such Loans over the immediately prior five trading days), without premium, penalty, prepayment fee, breakage or accrued interest, and/or (y) require such Participant which is a Disqualified Institution to assign its rights and obligations to one or more Eligible Assignees at the price indicated in the immediately

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preceding <u>clause (x)</u>, without premium, penalty, prepayment fee, accrued interest or breakage (which assignment shall not be subject to the processing and recordation fee described in <u>Section</u> <u>10.07(b)(iv)</u>), (ii) no such Disqualified Institution shall (x) receive any information or reporting provided by the Borrowers, the Administrative Agent or any other Lender, (y) attend or participate in meetings attended by the Lenders and the Administrative Agent or (z) access any electronic site established for the Lenders or confidential communications from counsel to or financial advisors of the Administrative Agent or the Lenders, (iii) for purposes of voting, any Loans, Commitments or participations held by such Disqualified Institution shall be deemed not to be outstanding and such Disqualified Institution shall have no voting or consent rights with respect to "Required Lender" or class votes or consents, in each case notwithstanding <u>Section</u> <u>10.01</u>, (iv) for purposes of any matter requiring the vote or consent of each Lender affected by any amendment or waiver, such Disqualified Institution shall be deemed to have voted or consented to approve such amendment or waiver if a majority of the affected class so approves and (v) such Disqualified Institution shall not be entitled to any expense reimbursement or indemnification rights ordinarily afforded to Lenders or Participants hereunder or in any Loan Document and such Disqualified Institution shall be treated in all other respects as a Defaulting Lender.

Section 10.08 <u>Confidentiality</u>. Each of the Agents and the Lenders agrees to use all reasonable efforts to maintain, in accordance with its customary practices, the confidentiality of the Information, except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates' respective partners, limited partners, managed accounts, investors, lenders, directors, officers, employees, trustees, representatives and agents, including accountants, legal counsel and other advisors and service providers on a need-to-know basis (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential in accordance with customary practices); (b) to the extent requested by any regulatory authority having jurisdiction over such Agent, Lender or its respective Affiliates or in connection with any pledge or assignment permitted under <u>Section</u> <u>10.07(f)</u>; (c) in any legal, judicial, administrative proceeding or other compulsory process or otherwise as required by applicable Laws or regulations or by any subpoena or similar legal process, in each case based upon the reasonable advice of the disclosing Agent's or Lender's legal counsel (in which case the disclosing Agent or Lender, as applicable, agrees (except with respect to any audit or examination conducted by bank accountants or any governmental bank regulatory authority or self-regulatory authorities exercising examination or regulatory authority), to the extent not prohibited by applicable Law, to (i) promptly notify the Borrowers in writing prior to such disclosure, (ii) cooperate with the Borrowers to obtain a protective order or similar confidential treatment, and (iii) only disclose that portion of the Information as counsel for the Agent advises the Agent it must disclose pursuant to such requirement); (d) to any other party to this Agreement; (e) 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; (f) subject to an agreement containing provisions substantially the same (or at least as restrictive) as those of this <u>Section</u> <u>10.08</u> (or as may otherwise be reasonably acceptable to the Borrowers), to any Eligible Assignee of or Participant in, or any prospective Eligible Assignee of or

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Participant in, any of its rights or obligations under this Agreement; *provided* that no such disclosure shall be made by such Lender or such Agent or any of their respective Affiliates to any such Person that is a Disqualified Institution; (g) with the written consent of the Borrower Representative; (h) to the extent such Information becomes publicly available other than as a result of a breach of this <u>Section</u> <u>10.08</u>; (i) to any state, federal or foreign authority or examiner (including the National Association of Insurance Commissioners or any other similar organization) regulating any Agent or Lender or any Affiliate of any Agent or Lender; (j) to any rating agency when required by it (it being understood that, prior to any such disclosure, such rating agency shall undertake to preserve the confidentiality of any Information relating to the Loan Parties received by it from such Agent or Lender); (k) to any contractual counterparty (or prospective contractual counterparty) in any swap, hedge, insurance or reinsurance or similar agreement or to any such contractual counterparty's (or prospective contractual counterparty's) professional advisor (other than a Disqualified Institution); (l) in connection with establishing a "due diligence" defense in connection with any legal, judicial, administrative proceeding or other process; (m) to the extent such Information becomes available to such Person on a non-confidential basis from a source other than the Borrowers or on the Borrowers' behalf and not in violation of any confidentiality agreement or obligation owed to the Borrowers; or (n) to the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP numbers with respect to the Facilities or market data collectors and similar service providers to the lending industry and service providers to the Agent and the Lenders in connection with the administration of the Loan Documents. In addition, the Agents and the Lenders may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry, and service providers to the Agents and the Lenders in connection with the administration and management of this Agreement, the other Loan Documents, the Commitments, and the Credit Extensions; *provided* that such Person is advised and agrees to be bound by the provisions of this <u>Section</u> <u>10.08</u>.

For the purposes of this <u>Section</u> <u>10.08</u>, "**Information**" means all information received from any Loan Party or any Subsidiary thereof relating to any Loan Party or any Subsidiary thereof or their respective businesses, other than any such information that is publicly available to any Agent or any Lender prior to disclosure by any Loan Party other than as a result of a breach of this <u>Section</u> <u>10.08</u> by such Lender or Agent. Any Person required to maintain the confidentiality of Information as provided in this <u>Section</u> <u>10.08</u> 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.

Each Agent, each Lender and each L/C Issuer acknowledges that (i) the Information may include material non-public information concerning the Holding Companies or any of its Subsidiaries, (ii) it has developed compliance procedures regarding the use of material non-public information and (iii) it will handle such material non-public information in accordance with applicable Law, including United States federal and state securities Laws.

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Section 10.09 <u>Setoff</u>. In addition to any rights and remedies of the Lenders provided by Law, upon the occurrence and during the continuance of any Event of Default, each Lender is authorized at any time and from time to time, after obtaining the prior written consent of the Administrative Agent, without prior notice to the Borrowers or any other Loan Party, any such notice being waived by the Holding Companies (on its own behalf and on behalf of each Loan Party) to the fullest extent permitted by Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in any currency), other than deposits in fiduciary accounts as to which a Loan Party is acting as fiduciary for another Person who is not a Loan Party and other than payroll or trust fund accounts, at any time held by, and other Indebtedness (in any currency) at any time owing by, such Lender to or for the credit or the account of the respective Loan Parties against any and all Obligations owing to such Lender hereunder or under any other Loan Document, now or hereafter existing, irrespective of whether or not such Agent or such Lender shall have made demand under this Agreement or any other Loan Document and although such Obligations may be contingent or unmatured or denominated in a currency different from that of the applicable deposit or Indebtedness or are owed to a branch or office of such Lender different from the branch or office holding such deposit or obligated on such Indebtedness; *provided* that in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of <u>Section</u> <u>2.17</u> and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. Each Lender agrees promptly to notify the Borrower Representative and the Administrative Agent after any such set-off and application made by such Lender; *provided*, *however*, that the failure to give such notice shall not affect the validity of such setoff and application. The rights of the Administrative Agent and each Lender under this <u>Section</u> <u>10.09</u> are in addition to other rights and remedies (including other rights of setoff) that the Administrative Agent and such Lender may have. Notwithstanding anything herein or in any other Loan Document to the contrary, in no event shall the assets of any Controlled Non-U.S. Subsidiary or FSHCO (or other Excluded Property) constitute security for payment of the Obligations of the Borrowers, it being understood that (a) (i) the Capital Stock of any Controlled Non-U.S. Subsidiary or FSHCO that is directly owned by the Borrowers or a U.S. Subsidiary of the Borrowers does not constitute such an asset, and may be pledged, but only to the extent not constituting Excluded Property and (ii) proceeds of Excluded Property shall constitute security for payment of the Obligations (unless such proceeds would constitute Excluded Property) and (b) the provisions hereof shall not limit, reduce or otherwise diminish in any respect the Borrowers' obligations to make any mandatory prepayment pursuant to <u>Section</u> <u>2.05(b)(ii)</u>.

Section 10.10 <u>Interest Rate Limitation</u>. Notwithstanding anything to the contrary in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the "**Maximum Rate**"). If any Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to the applicable Borrowers. In determining whether the interest contracted for, charged, or received by an Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable

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Law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder.

Section 10.11 <u>Counterparts</u>. This Agreement and each other Loan Document may be executed in one or more counterparts (and by different parties hereto in different counterparts), each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery by telecopier or other electronic transmission of an executed counterpart of a signature page to this Agreement and each other Loan Document shall be effective as delivery of an original executed counterpart of this Agreement and such other Loan Document. The Agents may also require that any such documents and signatures delivered by telecopier or other electronic transmission be confirmed by a manually-signed original thereof; *provided* that the failure to request or deliver the same shall not limit the effectiveness of any document or signature delivered by telecopier or other electronic transmission

Section 10.12 <u>Integration; Effectiveness</u>. This Agreement and the other Loan Documents 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. In the event of any conflict between the provisions of this Agreement and those of any other Loan Document, the provisions of this Agreement shall control; *provided* that the inclusion of supplemental rights or remedies in favor of the Agents or the Lenders in any other Loan Document shall not be deemed a conflict with this Agreement. Each Loan Document was drafted with the joint participation of the respective parties thereto and shall be construed neither against nor in favor of any party, but rather in accordance with the fair meaning thereof. Except as provided in <u>Section</u> <u>4.01</u>, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto as of the date hereof.

Section 10.13 <u>Survival of Representations and Warranties</u>. All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof. Such representations and warranties have been or will be relied upon by each Agent and each Lender, regardless of any investigation made by any Agent or any Lender or on their behalf and notwithstanding that any Agent or any Lender may have had notice or knowledge of any Default at the time of any Credit Extension, and shall continue in full force and effect as long as any Loan or any other Obligation (other than contingent indemnification or other obligations and obligations and liabilities under Secured Cash Management Agreements, Secured Hedge Agreements, and Secured Third Party Letters of Credit) hereunder shall remain unpaid or unsatisfied or any Letter of Credit shall remain outstanding (other than Letters of Credit that have been Cash Collateralized or as to which arrangements satisfactory to the L/C Issuer that issued such Letters of Credit shall have been made).

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Section 10.14 <u>Severability</u>. If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. Without limiting the foregoing provisions of this <u>Section</u> <u>10.14</u>, if and to the extent that the enforceability of any provisions in this Agreement relating to Defaulting Lenders shall be limited by Debtor Relief Laws then such provisions shall be deemed to be in effect only to the extent not so limited.

Section 10.15 <u>Governing Law; Jurisdiction; Etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Governing Law</u>. THIS AGREEMENT AND EACH OTHER LOAN DOCUMENT (OTHER THAN WITH RESPECT TO ANY COLLATERAL DOCUMENTS TO THE EXTENT EXPRESSLY PROVIDED OTHERWISE THEREIN) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF, BUT INCLUDING SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Submission to Jurisdiction</u>. EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK CITY IN THE BOROUGH OF MANHATTAN AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN, 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 (OTHER THAN WITH RESPECT TO ANY COLLATERAL DOCUMENT TO THE EXTENT EXPRESSLY PROVIDED OTHERWISE THEREIN), 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 ADMINISTRATIVE AGENT, THE COLLATERAL AGENT, ANY LENDER OR ANY L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT AGAINST ANY LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Waiver of Venue</u>. EACH PARTY HERETO 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 <u>SECTION 10.15(b)</u>. 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.

Section 10.16 <u>Service of Process</u>. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN <u>SECTION 10.02</u>. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW. EACH LOAN PARTY HERETO IRREVOCABLY APPOINTS THE BORROWER REPRESENTATIVE AS ITS AGENT TO RECEIVE SERVICE OF PROCESS WITH RESPECT ANY ACTION OR DISPUTE BROUGHT WITH RESPECT TO A LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED THEREIN ARISING UNDER CONTRACT, LAW OR EQUITY, AND THE BORROWER REPRESENTATIVE IRREVOCABLY ACCEPTS SUCH APPOINTMENT.

Section 10.17 <u>Waiver of Right to Trial by Jury</u>. EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS <u>SECTION 10.17</u> WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

Section 10.18 <u>Binding Effect</u>. When this Agreement shall have become effective in accordance with <u>Section</u> <u>10.12</u>, it shall thereafter shall be binding upon and inure to the benefit of the Holding Companies, the Borrowers, each Agent and each Lender and their respective successors and permitted assigns, except that no Borrower shall have the right to assign its rights hereunder or any interest herein without the prior written consent of the Lenders, except as permitted by <u>Section</u> <u>7.03</u>.

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Section 10.19 <u>No Advisory or Fiduciary Responsibility</u>. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrowers and the Holding Companies acknowledge and agree, and each of them acknowledges and agrees that it has informed its other Affiliates, that: (i) (A) no fiduciary, advisory or agency relationship between any of the Holding Companies and its Subsidiaries and any Agent or any Arranger or Lender (or their respective Affiliates) is intended to be or has been created in respect of any of the transactions contemplated hereby and by the other Loan Documents, irrespective of whether any Agent or any Arranger or any Lender (or their respective Affiliates) has advised or is advising the Holding Companies and its Subsidiaries on other matters, (B) the arranging and other services regarding this Agreement provided by the Agents and the Arrangers are arm's-length commercial transactions between the Holding Companies and their Subsidiaries, on the one hand, and the Agents and the Arrangers on the other hand, (C) the Borrowers and the Holding Companies have consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (D) the Borrowers and the Holding Companies are capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) each Agent, Arranger and Lender is and has been acting solely as a principal and, except as may otherwise be expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Holding Companies or the Borrowers or any of their respective Affiliates, or any other Person and (B) none of the Agents or Arrangers or Lenders has any obligation to the Holding Companies or any of their Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Agents, the Arrangers and Lenders and/or their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Holding Companies, the Borrowers and their respective Affiliates, and none of the Agents, the Arrangers or the Lenders has any obligation to disclose any of such interests and transactions to the Holding Companies, the Borrowers or their respective Affiliates. To the fullest extent permitted by law, the Borrowers and the Holding Companies hereby waive and releases any claims that it may have against the Agents, the Arrangers and the Lenders with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

Section 10.20 <u>Affiliate Activities</u>. The Borrower and the Holding Companies acknowledge that each Agent and each Arranger (and their respective Affiliates) are full service securities firms engaged, either directly or through affiliates, in various activities, including securities trading, investment banking and financial advisory, investment management, principal investment, hedging, financing and brokerage activities and financial planning and benefits counseling for both companies and individuals. In the ordinary course of these activities, any of them may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and/or financial instruments (including bank loans) for their own account and for the

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accounts of customers and may at any time hold long and short positions in such securities and/or instruments. Such investment and other activities may involve securities and instruments of the Holding Companies and their Affiliates, as well as of other entities and persons and their Affiliates which may (i) be involved in transactions arising from or relating to the transactions contemplated hereby and by the other Loan Documents, (ii) be customers or competitors of the Holding Companies and their Affiliates or (iii) have other relationships with the Holding Companies and their Affiliates. In addition, it may provide investment banking, underwriting and financial advisory services to such other entities and persons. It may also co-invest with, make direct investments in, and invest or coinvest client monies in or with funds or other investment vehicles managed by other parties, and such funds or other investment vehicles may trade or make investments in securities of the Holding Companies and their Affiliates or such other entities. The transactions contemplated hereby and by the other Loan Documents may have a direct or indirect impact on the investments, securities or instruments referred to in this clause.

Section 10.21 <u>Electronic Execution of Assignments and Certain Other Documents</u>. The words "execution," "signed," "signature," and words of like import in any Loan Document, any Assignment and Assumption, any Committed Loan Notice or any amendment or other modification hereof or thereof (including waivers and consents) shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

Section 10.22 <u>USA PATRIOT Act</u>. Each Lender that is subject to the PATRIOT Act and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Loan Parties that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001, as amended from time to time)) (the "**PATRIOT Act**"), it is required to obtain, verify and record information that identifies each Loan Party, which information includes the name and address of each Loan Party and other information that will allow such Lender or the Administrative Agent, as applicable, to identify each Loan Party in accordance with the PATRIOT Act. Each Loan Party shall, promptly following a request by the Administrative Agent, the Collateral Agent or any Lender, provide all documentation and other information that the Administrative Agent or such Lender requests in order to comply with its ongoing obligations under applicable "know your customer" and anti-money laundering rules and regulations, including the PATRIOT Act and Beneficial Ownership Regulation.

Section 10.23 <u>Judgment Currency</u>. If, for the purposes of obtaining judgment in any court, it is necessary to convert a sum due hereunder or any other Loan Document in one currency into another currency, the rate of exchange used shall be that at which in accordance with normal banking procedures the Administrative Agent could purchase the first currency with such other currency on the Business Day preceding that on which final judgment is given. The obligation of the Borrowers in respect of any such sum due from it

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to the Administrative Agent or the Lenders hereunder or under the other Loan Documents shall, notwithstanding any judgment in a currency (the "**Judgment Currency**") other than that in which such sum is denominated in accordance with the applicable provisions of this Agreement (the "**Agreement Currency**"), be discharged only to the extent that on the Business Day following receipt by the Administrative Agent of any sum adjudged to be so due in the Judgment Currency, the Administrative Agent may in accordance with normal banking procedures purchase the Agreement Currency with the Judgment Currency. If the amount of the Agreement Currency so purchased is less than the sum originally due to the Administrative Agent from the Borrowers in the Agreement Currency, the Borrowers agrees, as a separate obligation and notwithstanding any such judgment, to indemnify the Administrative Agent or the Person to whom such obligation was owing against such loss. If the amount of the Agreement Currency so purchased is greater than the sum originally due to the Administrative Agent in such currency, the Administrative Agent agrees to return the amount of any excess to the Borrowers (or to any other Person who may be entitled thereto under applicable Law).

Section 10.24 <u>Acknowledgement and Consent to Bail-In of Affected Financial Institutions</u>. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Lender that is an Affected Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any Lender that is an Affected Financial Institution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the effects of any Bail-In Action on any such liability, including, if applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reduction in full or in part or cancellation of any such liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.

Section 10.25 <u>Acknowledgement Regarding Any Supported QFCs</u>. To the extent that the Loan Documents provide support, through a guarantee or otherwise, for Swap Contracts or any other agreement or instrument that is a QFC (as defined below) (such support, "**QFC Credit Support**" and each such QFC a "**Supported QFC**"), the parties acknowledge and agree as follows with respect to the resolution power of the Federal

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Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the "**U.S. Special Resolution Regimes**") in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event a Covered Entity that is party to a Supported QFC (each, a "**Covered Party**") becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights (as defined below) under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As used in this <u>Section</u> <u>10.25</u>, the following terms have the following meanings:

"**Covered Entity**" means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

"**Default Right**" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

"**QFC**" has the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).

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**ARTICLE XI** 

**CO-BORROWER ARRANGEMENTS; LIMITATIONS** 

Section 11.01 <u>Addition of Co-Borrowers</u>. From time to time on or after the Closing Date a Borrower may designate one or more Wholly-Owned Restricted Subsidiaries of a Borrower as an additional "Co-Borrower" with respect to any designated Tranche under any Term Facility and/or any Revolving Credit Facility; *provided* that such Restricted Subsidiary designated after the Closing Date shall not become a Co-Borrower hereunder unless and until each of the following has occurred or is satisfied, as applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Administrative Agent, the Collateral Agent and the Lenders shall have received a Beneficial Ownership Certification and all other documentation and other information about such Co-Borrower as has been reasonably requested in writing by the Administrative Agent, the Collateral Agent and such Lenders that they reasonably determine is required by regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including without limitation the PATRIOT Act and Beneficial Ownership Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such Co-Borrower shall be organized in an Applicable Jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no Default or Event of Default shall exist, or would result from such proposed Restricted Subsidiary being designated as a Co-Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the representations and warranties of each Borrower and each other Loan Party contained in <u>Article V</u> or any other Loan Document shall be true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) on and as of the date of designation of any Co-Borrower, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) such Co-Borrower shall have delivered to the Administrative Agent a duly authorized, executed and delivered counterpart signature page to a Co-Borrower Joinder Agreement and, if applicable, intercreditor arrangements, intercompany subordination agreements and a guaranty or guaranty supplement pursuant to the Guaranty; *provided* that such Co-Borrower Joinder Agreement and such guaranty or guaranty supplement will incorporate any provisions specific to the designated Co-Borrowers' jurisdiction of organization and applicable Laws of such jurisdiction of organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Co-Borrower shall have delivered to the Administrative Agent and Collateral Agent executed counterparts of a joinder or supplement to the applicable Collateral Documents pursuant to <u>Section</u> <u>6.12</u> or other security agreements executed and delivered pursuant to <u>Section</u> <u>6.12</u>, <u>Section</u> <u>6.14</u> or <u>Section</u> <u>6.16</u>, together with other deliverables reasonably required pursuant to such Section as applied to such Co-Borrower (it being understood and agreed that the Administrative Agent and the Borrowers may waive or modify any such requirements to the extent they deem in their mutual discretion

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such changes are necessary or appropriate under the circumstances taking into account the designated Co-Borrowers' jurisdiction of organization, and applicable Laws);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Administrative Agent shall have received an opinion of local counsel and/or New York counsel, as applicable and depending on the circumstances and relevant market standard, in each case, addressed to the Administrative Agent, the Collateral Agent, the Lenders and if applicable, each L/C Issuer (in each case, where, and as, consistent with generally accepted market practice);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Administrative Agent shall have received a copy of a resolution of the Board of Directors, if required by applicable Law, of such Co-Borrower: (i) approving the terms of, and the transactions contemplated by, the Loan Documents to which it is a party and resolving that it execute, deliver and perform the Loan Documents to which it is a party; (ii) authorizing a specified person or persons to execute the Loan Documents and any related documents to which it is a party on its behalf; and (iii) authorizing a specified person or persons, on its behalf, to sign and/or dispatch all documents and notices (including, if relevant, any Committed Loan Notice or other relevant notice) to be signed and/or dispatched by it under or in connection with the Loan Documents to which it is a party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Administrative Agent shall have received a certificate of a Responsible Officer of the Co-Borrower certifying that (i) its Organization Documents and each copy document relating to it specified in <u>clause (h)</u> above, is correct, complete and in full force and effect and has not been amended or superseded as at a date no earlier than the date of such Co-Borrower Joinder Agreement and (ii) each of the conditions set forth in <u>clauses (c)</u> and <u>(d)</u> above have been satisfied;

*provided*, *further*, that if such Co-Borrower is being designated as such in connection with a Limited Condition Transaction, then the above conditions shall be subject to <u>Section</u> <u>1.02(i)</u>.

Section 11.02 <u>Status of Co-Borrowers</u>. Once a Co-Borrower has become a Co-Borrower in accordance with <u>Section</u> <u>11.01</u>, it shall be a "Borrower" under the Revolving Credit Facility and/or a "Borrower" under any Term Facility (with respect to the applicable Tranche), as applicable, and with respect to any Borrower under the Revolving Credit Facility, will have the right to directly request Revolving Credit Loans in accordance with <u>Article II</u> hereof until the Maturity Date for the Revolving Credit Facility, or the date on which such Co-Borrower terminates its obligations under this Agreement in accordance with <u>Section</u> <u>11.03</u> or the date on which such Co-Borrower is released from its obligations under the Loan Documents in accordance with this Agreement, including <u>Section</u> <u>9.11</u> hereof. Each of the Co-Borrowers and the applicable Borrower shall hereby accept joint and several liability hereunder with respect to the Obligations under the applicable Tranche of the applicable Facility under the Loan Documents.

Section 11.03 <u>Resignation of Co-Borrowers</u>. Any Borrower may elect to terminate its eligibility to request Borrowings and to cease to be a Borrower hereunder upon all of the following:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) such resigning Borrower shall have paid in full in cash all of its direct Obligations under the Revolving Credit Facility or one or more other Borrowers shall have assumed such amounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such resigning Borrower shall have delivered to the Administrative Agent and the Collateral Agent a notice of resignation in form and substance reasonably satisfactory to the Administrative Agent; *provided*, *however*, that such resignation shall not, to the extent applicable, have any impact on such Person's obligations as a Guarantor and such obligations, to the extent applicable, shall continue to be effective in accordance with the Guaranty and the other provisions and undertakings hereunder related thereto. For the avoidance of doubt, a Borrower shall not be required to adhere to the above in connection with a release pursuant to <u>Section</u> <u>9.11</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) there shall be at least one remaining Borrower under all then outstanding Facilities.

Section 11.04 <u>Authorization of Borrower Representative by Borrowers</u>. Each Borrower irrevocably authorizes and appoints each of the other Borrowers as agent for such Borrower on its behalf to (i) request Revolving Credit Loans, Letters of Credit, and Term Loans from the Administrative Agent and Lenders, (ii) to give and receive notices under the Loan Documents and (iii) take all other action which Borrower Representative or Borrowers are permitted or required to take under this Agreement, including to give notices, make requests, make payments, receive payments and notices, give receipts and execute agreements, make agreements or take any other action whatsoever on behalf of such Borrower under and with respect to any Loan Document and each Borrower shall be bound thereby. The Borrowers agree that this authorization and appointment may be exercised by any Borrower, on behalf of the other Borrowers (each Borrower, when in acting in such capacity, the "**Borrower Representative**"). This authorization is coupled with an interest and shall be irrevocable, and each Agent, L/C Issuer, and Lenders may rely on any notice, request, information supplied by Borrower Representative, every document executed by Borrower Representative, every agreement made by Borrower Representative or other action taken by Borrower Representative in respect of Borrowers or any thereof as if the same were supplied, made or taken by any or all Borrowers.

[REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first written above.

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| | |
|:---|:---|
| **OVATION PARENT, INC.,**<br> as a Holding Company | **OVATION PARENT, INC.,**<br> as a Holding Company |
| By: | /s/ Joseph Salsbury |
|  | Name:Joseph Salsbury |
|  | Title:Chief Financial Officer and Secretary |

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| | |
|:---|:---|
| **HAWKEYE MIDCO, LLC.**<br> as a Holding Company | **HAWKEYE MIDCO, LLC.**<br> as a Holding Company |
| By: | /s/ Kristin Gawlik |
|  | Name:Kristin Gawlik |
|  | Title:Chief Financial Officer, Treasurer and Secretary |

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| | |
|:---|:---|
| **CONNECTOR INTERMEDIATE HOLDCO, LLC.**<br> as a Holding Company | **CONNECTOR INTERMEDIATE HOLDCO, LLC.**<br> as a Holding Company |
| By: | /s/ Kristin Gawlik |
|  | Name:Kristin Gawlik |
|  | Title:Chief Financial Officer, Treasurer and Secretary |

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| | |
|:---|:---|
| **SI INTERMEDIATE HOLDING, INC**.,<br> as a Holding Company | **SI INTERMEDIATE HOLDING, INC**.,<br> as a Holding Company |
| By: | /s/ Laura Siegal |
|  | Name:Laura Siegal |
|  | Title:Chief Financial Officer and Secretary |

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| | |
|:---|:---|
| **KAMAN CORPORATION**,<br> as a Borrower | **KAMAN CORPORATION**,<br> as a Borrower |
| By: | /s/ Joseph Salsbury |
|  | Name:Joseph Salsbury |
|  | Title:Chief Financial Officer and Secretary |

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[Signature Page to Credit Agreement]

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| | |
|:---|:---|
| **QUANTIC ELECTRONICS, LLC,**<br> as a Borrower | **QUANTIC ELECTRONICS, LLC,**<br> as a Borrower |
| By: | /s/ Kristin Gawlik |
|  | Name:Kristin Gawlik |
|  | Title:Chief Financial Officer |

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| | |
|:---|:---|
| **QUANTIC CORPORATE HOLDINGS, INC.,**<br> as a Borrower | **QUANTIC CORPORATE HOLDINGS, INC.,**<br> as a Borrower |
| By: | /s/ Kristin Gawlik |
|  | Name:Kristin Gawlik |
|  | Title:Chief Financial Officer |

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| | |
|:---|:---|
| **QNNECT, LLC,**<br> as a Borrower | **QNNECT, LLC,**<br> as a Borrower |
| By: | /s/ Kristin Gawlik |
|  | Name:Kristin Gawlik |
|  | Title:Chief Financial Officer |

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| | |
|:---|:---|
| **SANDERS INDUSTRIES HOLDINGS, INC.,**<br> as a Borrower | **SANDERS INDUSTRIES HOLDINGS, INC.,**<br> as a Borrower |
| By: | /s/ Laura Siegal |
|  | Name:Laura Siegal |
|  | Title:Chief Financial Officer and Secretary |

---

[Signature Page to Credit Agreement]

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---

| | |
|:---|:---|
| **CITIBANK, N.A.**<br> as the Administrative Agent and Collateral Agent | **CITIBANK, N.A.**<br> as the Administrative Agent and Collateral Agent |
| By: | /s/ Savino Figliuolo |
|  | Name:Savino Figliuolo |
|  | Title:Authorized Signer |

---

[Signature Page to Credit Agreement]

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| | |
|:---|:---|
| **CITIBANK, N.A.**<br> as Lender and L/C Issuer | **CITIBANK, N.A.**<br> as Lender and L/C Issuer |
| By: | /s/ Savino Figliuolo |
|  | Name:Savino Figliuolo |
|  | Title:Authorized Signer |

---

[Signature Page to Credit Agreement]

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| | |
|:---|:---|
| **BANK OF MONTREAL,**<br> as Lender and L/C Issuer | **BANK OF MONTREAL,**<br> as Lender and L/C Issuer |
| By: | /s/ Dmitry Lepenkov |
|  | Name:Dmitry Lepenkov |
|  | Title:Director |

---

[Signature Page to Credit Agreement]

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---

| | |
|:---|:---|
| **MORGAN STANLEY SENIOR FUNDING,**<br> as Lender and L/C Issuer | **MORGAN STANLEY SENIOR FUNDING,**<br> as Lender and L/C Issuer |
| By: | /s/ Michael King |
|  | Name:Michael King |
|  | Title:Vice President |

---

[Signature Page to Credit Agreement]

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---

| | |
|:---|:---|
| **BARCLAYS BANK PLC,**<br> as Lender and L/C Issuer | **BARCLAYS BANK PLC,**<br> as Lender and L/C Issuer |
| By: | /s/ Charlene Saldanha |
|  | Name:Charlene Saldanha |
|  | Title:Vice President |

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[Signature Page to Credit Agreement]

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---

| | |
|:---|:---|
| **BANK OF AMERICA, N.A.,**<br> as Lender and L/C Issuer | **BANK OF AMERICA, N.A.,**<br> as Lender and L/C Issuer |
| By: | /s/ Stefanie Tanwar |
|  | Name: Stefanie Tanwar |
|  | Title: Director |

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[Signature Page to Credit Agreement]

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---

| | |
|:---|:---|
| **ROYAL BANK OF CANADA,**<br> as Lender and L/C Issuer | **ROYAL BANK OF CANADA,**<br> as Lender and L/C Issuer |
| By: | /s/ Nikhil Madhok |
|  | Name: NIKHIL MADHOK |
|  | Title: AUTHORIZED SIGNATORY |

---

[Signature Page to Credit Agreement]

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---

| | |
|:---|:---|
| **JEFFERIES FINANCE LLC,**<br> as Lender and L/C Issuer | **JEFFERIES FINANCE LLC,**<br> as Lender and L/C Issuer |
| By: | /s/ Brian Buoye |
|  | Name: Brian Buoye |
|  | Title: Managing Director |

---

[Signature Page to Credit Agreement]

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---

| | |
|:---|:---|
| **MACQUARIE CAPITAL FUNDING LLC,**<br> as Lender and L/C Issuer | **MACQUARIE CAPITAL FUNDING LLC,**<br> as Lender and L/C Issuer |
| By: | /s/ Ayesha Farooqi |
|  | Name: Ayesha Farooqi |
|  | Title: Authorized Signatory |

---

---

| | |
|:---|:---|
| By: | /s/ Stephen Mehos |
|  | Name: Stephen Mehos |
|  | Title: Authorized Signatory |

---

[Signature Page to Credit Agreement]

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---

| | |
|:---|:---|
| **WELLS FARGO BANK N.A.,**<br> as Lender and L/C Issuer | **WELLS FARGO BANK N.A.,**<br> as Lender and L/C Issuer |
| By: | /s/ J.E. Nealon, Jr. |
|  | Name: James Nealon |
|  | Title: Authorized Signatory |

---

[Signature Page to Credit Agreement]

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---

| | |
|:---|:---|
| **GS BANK USA,**<br> as Lender and L/C Issuer | **GS BANK USA,**<br> as Lender and L/C Issuer |
| By: | /s/ Thomas Manning |
|  | Name: Thomas Manning |
|  | Title: Authorized Signatory |

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[Signature Page to Credit Agreement]

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| | |
|:---|:---|
| **J.P. MORGAN CHASE BANK, N.A.,**<br> as Lender and L/C Issuer | **J.P. MORGAN CHASE BANK, N.A.,**<br> as Lender and L/C Issuer |
| By: | /s/ Andrew Rossman |
|  | Name: Andrew Rossman |
|  | Title: Executive Director |

---

[Signature Page to Credit Agreement]

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---

| | |
|:---|:---|
| **KEYBANK NATIONAL ASSOCIATION,**<br> as Lender and L/C Issuer | **KEYBANK NATIONAL ASSOCIATION,**<br> as Lender and L/C Issuer |
| By: | /s/ Sean P. MacIver |
|  | Name: Sean P. MacIver |
|  | Title: Director |

---

[Signature Page to Credit Agreement]

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**<u>Schedule I</u>**

Guarantors

------

**<u>Schedule 1.01(b)</u>**

Specified Real Property

------

**<u>Schedule 1.01(c)</u>**

Existing Letters of Credit

------

**<u>Schedule 1.01(f)</u>**

Closing Date L/C Issuers and Letter of Credit Sublimit

------

**<u>Schedule 2.01</u>**

Commitments and Pro Rata Shares

------

**<u>Schedule 5.12</u>**

Subsidiaries and Other Equity Investments

------

**<u>Schedule 5.16</u>**

Intellectual Property Matters

------

**<u>Schedule 6.16</u>**

Post-Closing Undertakings

------

**<u>Schedule 7.01</u>**

Closing Date Indebtedness

------

**<u>Schedule 7.02</u>**

Closing Date Liens

------

**<u>Schedule 7.05(a)</u>**

Closing Date Investments

------

**<u>Schedule 10.02</u>**

Administrative Agent's Office, Certain Addresses for Notices

------

**EXHIBIT A-1** 

**[FORM OF] COMMITTED LOAN NOTICE** 

------

**EXHIBIT A-2** 

**[FORM OF] REQUEST FOR L/C CREDIT EXTENSION** 

------

**EXHIBIT A-3** 

**[FORM OF] SWING LINE LOAN REQUEST** 

------

**EXHIBIT B-1** 

**[FORM OF] TERM NOTE** 

------

**EXHIBIT B-2** 

**[FORM OF] REVOLVING CREDIT NOTE** 

------

**EXHIBIT B-3** 

**[FORM OF] SWING LINE NOTE** 

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**EXHIBIT B-4** 

**[FORM OF] DELAYED DRAW TERM NOTE** 

------

**EXHIBIT C** 

**[FORM OF] COMPLIANCE CERTIFICATE** 

------

**EXHIBIT D-1** 

**[FORM OF] ASSIGNMENT AND ASSUMPTION** 

------

**EXHIBIT D-2** 

**[FORM OF] AFFILIATE LENDER ASSIGNMENT AND ASSUMPTION** 

------

**EXHIBIT D-3** 

**FORM OF ADMINISTRATIVE QUESTIONNAIRE** 

------

**EXHIBIT E-1** 

**FORM OF HOLDINGS GUARANTY** 

------

**EXHIBIT E-2** 

**FORM OF SUBSIDIARY GUARANTY** 

------

**EXHIBIT F** 

**FORM SECURITY AGREEMENT** 

------

**EXHIBIT G-1** 

**FORM OF FIRST LIEN/SECOND LIEN INTERCREDITOR AGREEMENT** 

------

**EXHIBIT G-2** 

**FORM OF FIRST LIEN PARI PASSU INTERCREDITOR AGREEMENT** 

------

**EXHIBIT H** 

**FORM OF INTERCOMPANY SUBORDINATION AGREEMENT** 

------

**EXHIBIT I-1** 

**[FORM OF] U.S. TAX COMPLIANCE CERTIFICATE** 

------

**EXHIBIT I-2** 

**[FORM OF] U.S. TAX COMPLIANCE CERTIFICATE** 

------

**EXHIBIT I-3** 

**[FORM OF] U.S. TAX COMPLIANCE CERTIFICATE** 

------

**EXHIBIT I-4** 

**[FORM OF] U.S. TAX COMPLIANCE CERTIFICATE** 

------

**EXHIBIT J** 

**[FORM OF] OPTIONAL PREPAYMENT OF LOANS** 

------

**EXHIBIT K** 

**[FORM OF] CO-BORROWER JOINDER AGREEMENT** 

------

**EXHIBIT L** 

**[FORM OF] SOLVENCY CERTIFICATE** 

------

**EXHIBIT M** 

**[FORM OF] SECURED PARTY JOINDER NOTICE**

## Exhibit 10.2

**Exhibit 10.2** 

***Execution Version*** 

**SECURITY AGREEMENT** 

**Dated as of February 26, 2025** 

**among** 

**The Grantors referred to herein,** 

**as Grantors** 

**and** 

**CITIBANK, N.A.,** 

**as Collateral Agent** 

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**<u>**TABLE OF CONTENTS**</u>**

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| | | |
|:---|:---|:---|
|  |  | PAGE |
|  Section 1. | Grant of Security | 2 |
|  Section 2. | Security for Obligations | 6 |
|  Section 3. | Grantors Remain Liable | 7 |
|  Section 4. | Delivery and Control of Security Collateral | 7 |
|  Section 5. | [Reserved] | 8 |
|  Section 6. | Representations and Warranties | 9 |
|  Section 7. | Further Assurances | 11 |
|  Section 8. | Post-Closing Changes; Collections on Assigned Agreements and Accounts | 12 |
|  Section 9. | As to Intellectual Property Collateral | 13 |
|  Section 10. | Voting Rights; Dividends; Etc. | 14 |
|  Section 11. | Collateral Agent Appointed Attorney-in-Fact | 16 |
|  Section 12. | Collateral Agent May Perform | 16 |
|  Section 13. | The Collateral Agent's Duties | 17 |
|  Section 14. | Remedies | 17 |
|  Section 15. | Expenses | 20 |
|  Section 16. | Amendments; Waivers; Additional Grantors; Etc. | 20 |
|  Section 17. | Notices, Etc. | 21 |
|  Section 18. | Continuing Security Interest; Assignments under the Credit Agreement | 21 |
|  Section 19. | Release; Termination | 22 |
|  Section 20. | Execution in Counterparts | 22 |
|  Section 21. | [Reserved] | 23 |
|  Section 22. | Governing Law; Jurisdiction; Etc. | 23 |
|  Section 23. | Obligations Absolute | 23 |
|  Section 24. | Intercreditor Agreement | 23 |
|  Section 25. | Marshaling | 24 |

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i

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<u>Schedules:</u> 

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| | |
|:---|:---|
| Schedule I | Location, Chief Executive Office, Type Of Organization,<br> Jurisdiction Of Organization or Incorporation, Tax Identification<br> Number and Trade Names |
| Schedule II | Pledged Interests and Pledged Debt |
| Schedule III | Patents, Trademarks, and Copyrights |
| Schedule IV | [Reserved] |
| Schedule V | Equipment and Inventory |

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<u>Exhibits:</u> 

---

| | |
|:---|:---|
| Exhibit A | Form of Security Agreement Supplement |
| Exhibit B | Form of Intellectual Property Security Agreement |
| Exhibit C | Form of Intellectual Property Security Agreement Supplement |

---

ii

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**SECURITY AGREEMENT** dated as of February 26, 2025 (as amended, amended and restated, supplemented or otherwise modified from time to time, this "<u>Agreement</u>"), among Kaman Corporation, a Connecticut corporation ("<u>Kaman</u>"), Quantic Electronics, LLC, a Delaware limited liability company ("<u>Quantic</u>"), Quantic Corporate Holdings, Inc., a Delaware corporation ("<u>Quantic CH</u>"), Qnnect, LLC, a Delaware limited liability company ("<u>Qnnect</u>"), Sanders Industries Holdings, Inc., a Delaware corporation ("<u>Sanders</u>"; collectively with Kaman, Quantic, Quantic CH and Qnnect, the "<u>Borrowers</u>" and each, a "<u>Borrower</u>"), Ovation Parent, Inc., a Delaware corporation ("<u>Kaman Holdings</u>"), Hawkeye MidCo, LLC, a Delaware limited liability company ("<u>Quantic Holdings</u>"), Connector Intermediate HoldCo, LLC, a Delaware limited liability company ("<u>Qnnect Holdings</u>") and SI Intermediate Holding, Inc., a Delaware corporation ("<u>Sanders Holdings</u>"; collectively with Kaman Holdings, Quantic Holdings and Qnnect Holdings, the "<u>Holding Companies</u>" and each, a "<u>Holding Company</u>"), the other Persons listed on the signature pages hereof (the "<u>Subsidiary Grantors</u>"), the Additional Grantors (as defined below) from time to time party hereto (the Borrowers, Holding Companies, the Subsidiary Grantors and such Additional Grantors, collectively, the "<u>Grantors</u>"), and Citibank, N.A., as collateral agent (in such capacity, together with any successor collateral agent, the "<u>Collateral Agent</u>") for the Secured Parties (as defined in the Credit Agreement (as defined below)).

**PRELIMINARY STATEMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Holding Companies and the Borrowers have entered into a Credit Agreement, dated of even date herewith (as amended, restated, amended and restated, supplemented, replaced, refinanced or otherwise modified from time to time (including any increases of the principal amount outstanding thereunder), the "<u>Credit Agreement</u>"), with Citibank, N.A., as Administrative Agent, Collateral Agent and L/C Issuer, and the other parties party thereto, pursuant to which the Lenders have agreed to make Term Loans and Revolving Credit Loans (including Swing Line Loans) from time to time, the L/C Issuers have agreed to issue Letters of Credit from time to time, in each case, upon the terms and subject to the conditions expressly set forth therein, one or more Hedge Banks may enter into Secured Hedge Agreements with any Loan Party or any Restricted Subsidiary from time to time, one or more Cash Management Banks may enter into Secured Cash Management Agreements with any Loan Party or any Restricted Subsidiary from time to time and one or more Third Party Letter of Credit Issuers may issue Secured Third Party Letters of Credit at the request of any Loan Party or any Restricted Subsidiary from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Pursuant to the Credit Agreement, the Grantors are entering into this Agreement in order to grant to the Collateral Agent, for the benefit of the Secured Parties, a security interest in the Collateral (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) It is a condition precedent to the making of the initial Credit Extensions under the Credit Agreement on the Closing Date that the Grantors shall have granted the security interests and made the pledges contemplated by this Agreement substantially concurrently with the initial Credit Extensions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Each Grantor will derive substantial direct and indirect benefit from the transactions contemplated by the Loan Documents and the other Secured Documents (as defined herein).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Capitalized terms defined in the Credit Agreement and not otherwise defined in this Agreement are used in this Agreement as defined in the Credit Agreement. Further, unless otherwise defined in this Agreement or in the Credit Agreement, terms defined in Article 8 or 9 of the UCC are used in this Agreement as such terms are defined in such Article 8 or 9 (including, without limitation, Accounts, Certificated Security, Chattel Paper, Commodity Account, Commodity Contract, Deposit Accounts, Documents, Equipment, Financial Assets, General Intangibles, Goods, Instruments, Inventory, Investment Property, Letter-of-Credit Rights, Securities Accounts, Securities Intermediary, Security, Security Entitlements and Supporting Obligations). Sections 1.02, 1.05, 1.07 and 1.08 of the Credit Agreement shall apply here *mutatis mutandis*.

**NOW, THEREFORE**, in consideration of the premises and in order to induce the Lenders to make Loans from time to time, the L/C Issuers to issue Letters of Credit from time to time, the Hedge Banks to enter into Secured Hedge Agreements from time to time, the Cash Management Banks to enter into Secured Cash Management Agreements from time to time and the Third Party Letter of Credit Issuers to issue Secured Third Party Letters of Credit from time to time, each Grantor hereby agrees with the Collateral Agent for the benefit of the Secured Parties as follows:

Section 1. <u>Grant of Security</u>. As security for the payment or performance, as the case may be, in full of the Secured Obligations (as defined below), each Grantor hereby collaterally assigns and pledges to the Collateral Agent (and its successors and permitted assigns), for the benefit of the Secured Parties, and each Grantor hereby grants to the Collateral Agent (and its successors and permitted assigns), for the benefit of the Secured Parties, a security interest in and continuing lien on all of such Grantor's right, title and interest in and to the following, in each case, as to each type of property described below, whether now owned or hereafter acquired by such Grantor, wherever located, and whether now or hereafter existing or arising, including all accessions thereto and products and proceeds thereof (collectively, the "<u>Collateral</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all cash and Cash Equivalents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all Chattel Paper;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all Deposit Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all Equipment;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all General Intangibles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) all Goods;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) all Instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) all Inventory;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) all Letter-of-Credit Rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) the following (the "<u>Security Collateral</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all indebtedness from time to time owed to such Grantor, including, without limitation, the indebtedness set forth opposite such Grantor's name on and otherwise described on <u>Schedule II</u> (as such <u>Schedule II</u> may be supplemented from time to time by supplements to this Agreement) (all such indebtedness being the "<u>Pledged Debt</u>"), and the instruments and promissory notes, if any, evidencing such indebtedness, and all interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Debt; <u>provided</u>, that, notwithstanding the foregoing, except for purposes of this clause (n)(i), the term "<u>Pledged Debt</u>" shall not include (A) any indebtedness that is represented or evidenced by an instrument having an aggregate principal amount that is not greater than $50,000,000 and (B) any short-term intercompany current liabilities incurred in the ordinary course of business and consistent with past practice in connection with the cash management operations of the Borrowers and their Restricted Subsidiaries (collectively, such instruments and intercompany current liabilities, "<u>Immaterial Pledged Debt</u>") (it being acknowledged and agreed, for the avoidance of doubt, that, notwithstanding this proviso, "Collateral" and "Security Collateral" shall include Immaterial Pledged Debt);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all Equity Interests of any Person from time to time acquired, owned or held directly by such Grantor in any manner, including, without limitation, the Equity Interests owned or held by each Grantor set forth opposite such Grantor's name on and otherwise described on <u>Schedule II</u> and identified as pledged hereunder (as such <u>Schedule II</u> may be supplemented from time to time by supplements to this Agreement) (all such Equity Interests being the "<u>Pledged Interests</u>"), and the certificates, if any, representing such shares or units or other Equity Interests, and all dividends, distributions, return of capital, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such shares or other Equity Interests and all warrants, rights or options issued thereon or with respect thereto; <u>provided</u> that, for the avoidance of doubt, such Grantor shall not be required to pledge, and the terms "<u>Pledged Interests</u>" and "<u>Security Collateral</u>" used in this Agreement shall not include, any Equity Interests that constitute Excluded Property; <u>provided</u>, <u>further</u>, that, notwithstanding the foregoing, except for purposes of this clause

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(n)(ii), the term "<u>Pledged Interests</u>" shall not include any Equity Interests of (x) any Person that is not a Subsidiary (such Equity Interests, "<u>JV Equity Interests</u>") or (y) any Restricted Subsidiary that is not a Material Subsidiary (such Equity Interests, "<u>Immaterial Subsidiary Interests</u>") (it being acknowledged and agreed, for the avoidance of doubt, that, notwithstanding this proviso, "Collateral" and "Security Collateral" shall include JV Equity Interests and Immaterial Subsidiary Interests); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all Investment Property and all Financial Assets, and all dividends, distributions, returns of capital, interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange therefor and all warrants, rights or options issued thereon or with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) all contracts and agreements between any Grantor and one or more additional parties (including, without limitation, any Swap Contracts, licensing agreements and any partnership agreements, joint venture agreements, limited liability company agreements) and the IP Agreements (as defined below), in each case as such agreements may be amended, restated, amended and restated, supplemented or otherwise modified from time to time (collectively, the "<u>Assigned Agreements</u>"), including, without limitation, all rights of such Grantor to receive moneys due and to become due under or pursuant to the Assigned Agreements (all such Collateral being the "<u>Agreement Collateral</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) the following (collectively, excluding clause (viii) below, the "<u>Intellectual Property Collateral</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all patents, patent applications, utility models, statutory invention registrations and all inventions claimed or disclosed therein and all improvements thereto ("<u>Patents</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all trademarks, trademark applications, service marks, domain names, trade dress, logos, designs, slogans, trade names, business names, corporate names and other source identifiers, whether registered or unregistered (<u>provided</u> that no security interest shall be granted in United States intent-to-use trademark applications prior to the filing and acceptance of a "Statement of Use" pursuant to Section 1(d) of the Lanham Act or an "Amendment to Allege Use" pursuant to Section 1(c) of the Lanham Act with respect thereto, to the extent that, and solely during the period, if any, in which, the grant of a security interest therein would impair the validity or enforceability of any registration that issues from such intent-to-use application under applicable federal law), together, in each case, with the goodwill symbolized thereby ("<u>Trademarks</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all copyrights, including, without limitation, copyrights in Computer Software (as defined below), internet websites and the content thereof, whether registered or unregistered ("<u>Copyrights</u>");

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all computer software, programs and databases (including, without limitation, source code, object code and all related applications and data files), firmware and documentation and materials relating thereto, together with any and all maintenance rights, service rights, programming rights, hosting rights, test rights, improvement rights, renewal rights and indemnification rights and any substitutions, replacements, improvements, error corrections, updates and new versions of any of the foregoing ("<u>Computer Software</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all confidential and proprietary information, including, without limitation, know-how, trade secrets, manufacturing and production processes and techniques, inventions, research and development information, databases and data, including, without limitation, technical data, financial, marketing and business data, pricing and cost information, business and marketing plans and customer and supplier lists and information, and all other intellectual, industrial and intangible property of any type, including, without limitation, industrial designs and mask works;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all registrations and applications for registration for any of the foregoing, including, without limitation, those registrations and applications for registration at the U.S. Patent and Trademark Office (the "<u>USPTO</u>") and the U.S. Copyright Office (the "<u>USCO</u>") set forth in <u>Schedule III</u> hereto (as such <u>Schedule III</u> may be supplemented from time to time by supplements to this Agreement, each such supplement being substantially in the form of <u>Exhibit C</u> hereto (an "<u>IP Security Agreement Supplement</u>") executed by such Grantor to the Collateral Agent from time to time), together with all reissues, divisions, continuations, continuations-in- part, extensions, renewals and reexaminations thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) all rights in the foregoing corresponding thereto throughout the world and all other rights of any kind whatsoever of such Grantor accruing thereunder or pertaining thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) all agreements granting to any Grantor, or pursuant to which any Grantor grants to any other Person rights in any of the foregoing ("<u>IP Agreements</u>"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) any and all claims for damages and injunctive relief for past, present and future infringement, dilution, misappropriation, violation, misuse or breach with respect to any of the foregoing, with the right, but not the obligation, to sue for and collect, or otherwise recover, such damages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) all books and records (including, without limitation, customer lists, credit files, printouts and other computer output materials and records) of such Grantor pertaining to any of the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) all other tangible and intangible personal property of whatever nature whether or not covered by Article 9 of the UCC; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) all proceeds of, collateral for, income, royalties and other payments now or hereafter due and payable with respect to, and Supporting Obligations relating to, any and all of the Collateral (including, without limitation, proceeds, collateral and Supporting Obligations that constitute property of the types described in <u>clauses (a)</u> through <u>(r)</u> of this <u>Section</u> <u>1</u>), and, to the extent not otherwise included, all payments under insurance covering any Collateral (whether or not the Collateral Agent is the loss payee thereof), or any indemnity, warranty or guaranty, payable by reason of loss or damage to or otherwise with respect to any of the foregoing Collateral;

Section 2. <u>Security for Obligations</u>. Without limiting the specific limitations contained herein and in the Credit Agreement with respect to the application of the proceeds of the Collateral to the Obligations, this Agreement secures, in the case of each Grantor, the payment of all Obligations now or hereafter existing under the Loan Documents, any Letters of Credit, any Secured Cash Management Agreement, any Secured Hedge Agreement or any Secured Third Party Letters of Credit (the Loan Documents, Letters of Credit, Secured Cash Management Agreements, Secured Hedge Agreements and Secured Third Party Letters of Credit, collectively, the "<u>Secured</u> <u>Documents</u>") (as such Secured Documents may be amended, restated, amended and restated, supplemented, replaced, refinanced or otherwise modified from time to time (including any increases of the principal amount outstanding thereunder)), (all such Obligations being the "<u>Secured Obligations</u>"). Without limiting the generality of the foregoing, this Agreement secures, as

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to each Grantor, the payment of all amounts that constitute part of the Secured Obligations that would be owed by such Grantor to any Secured Party under the Secured Documents but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving a Loan Party. Notwithstanding anything herein to the contrary, (a) Secured Obligations of any Loan Party under any Secured Cash Management Agreement, Secured Hedge Agreement or Secured Third Party Letter of Credit shall be secured hereunder only to the extent that, and for so long as, the other Secured Obligations are secured hereunder and (b) the Secured Obligations with respect to any Grantor shall not include Excluded Swap Obligations of such Grantor.

Section 3. <u>Grantors Remain Liable</u>. Anything herein to the contrary notwithstanding, each Grantor shall remain liable under its contracts and agreements included in the Collateral to the extent set forth therein to perform all of its duties and obligations thereunder to the same extent as if this Agreement had not been executed, (b) the exercise by the Collateral Agent of any of the rights hereunder shall not release any Grantor from any of its duties or obligations under the contracts and agreements included in the Collateral and (c) no Secured Party shall have any obligation or liability under the contracts and agreements included in the Collateral by reason of this Agreement or any other Secured Document, nor shall any Secured Party be obligated to perform any of the obligations or duties of any Grantor thereunder or to take any action to collect or enforce any claim for payment assigned hereunder.

Section 4. <u>Delivery and Control of Security Collateral</u>. (a) All certificates, if any, representing or evidencing the Pledged Interests and all instruments representing or evidencing the Pledged Debt shall be delivered to and held by or on behalf of the Collateral Agent pursuant hereto (in accordance with Section 6.16 of the Credit Agreement) and, with respect to such Pledged Interests or Pledged Debt acquired after the date hereof or owned or held by a Grantor formed after the date hereof, within ninety (90) days of such acquisition or formation (or such later date as the Collateral Agent may agree in its reasonable discretion) shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance reasonably satisfactory to the Collateral Agent. If an Event of Default shall have occurred and be continuing under Section 8.01 of the Credit Agreement and the Collateral Agent shall have given three (3) Business Days' prior written notice to the Grantor which is the holder of such Security Collateral of its intent to exercise remedies, the Collateral Agent shall have the right at any time, in its discretion, to (i) transfer to or to register in the name of the Collateral Agent or any of its nominees any or all of the Security Collateral, subject only to the revocable rights and other voting rights specified in Section 10(a), (ii) exchange certificates or instruments representing or evidencing Security Collateral for certificates or instruments of smaller or larger denominations and (iii) convert Security Collateral consisting of Financial Assets credited to any Securities Account to Security Collateral consisting of Financial Assets held directly by the Collateral Agent, and to convert Security Collateral consisting of Financial Assets held directly by the Collateral Agent to Security Collateral consisting of Financial Assets credited to any Securities Account.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to Section 10(a), if an Event of Default shall have occurred and be continuing under Section 8.01 of the Credit Agreement and the Collateral Agent shall have given three (3) Business Days' prior written notice to the Grantor which is the holder of such Security Collateral of its intent to exercise remedies, with respect to any Security Collateral in which any Grantor has any right, title or interest and that (i) is a certificated security, promptly upon the request of the Collateral Agent, such Grantor will notify each issuer thereof that such Pledged Interests are subject to the security interests granted hereunder or (ii) is an uncertificated security, promptly upon the request of the Collateral Agent, such Grantor will cause the issuer thereof (or if the issuer thereof is not a Wholly Owned Subsidiary, use commercially reasonable efforts to cause the issuer thereof) either (A) to register the Collateral Agent as the registered owner of such security or (B) to agree in an authenticated record with such Grantor and the Collateral Agent that such issuer will comply with instructions with respect to such security originated by the Collateral Agent without further consent of such Grantor, such authenticated record to be in form and substance reasonably satisfactory to the Collateral Agent; provided, that any issuer that is a Grantor hereby agrees that upon the occurrence and during the continuation of an Event of Default, it will comply with the instructions of the Collateral Agent with respect to Equity Interests in such Grantor that constitute Security Collateral without further consent by the applicable owner or holder of such Security Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Grantor agrees that to the extent each interest in any limited liability company or limited partnership controlled now or in the future by such Grantor and pledged hereunder is a "security" within the meaning of Article 8 of the UCC and is governed by Article 8 of the UCC, (i) such interest shall be certificated and (ii) each such interest shall at all times hereafter continue to be such a security and represented by such certificate unless such Grantor provides (x) written notification to the Collateral Agent that such interest is not a "security" within the meaning of Article 8 of the UCC and (y) evidence thereof that is reasonably requested, and thereafter the Collateral Agent shall promptly return any certificate (and related instrument of transfer or assignment) representing such interest to Grantor. Each Grantor further acknowledges and agrees that with respect to any interest in any limited liability company or limited partnership controlled now or in the future by such Grantor and pledged hereunder that is not a "security" within the meaning of Article 8 of the UCC, such Grantor shall at no time elect to treat any such interest as a "security" within the meaning of Article 8 of the UCC, nor shall such interest be represented by a certificate, unless such Grantor provides written notification to the Collateral Agent of such election and such interest is thereafter represented by a certificate that is promptly delivered to the Collateral Agent pursuant to and in accordance with the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If an Event of Default shall have occurred and be continuing under Section 8.01 of the Credit Agreement and the Collateral Agent shall have given three (3) Business Days' prior written notice to the applicable Grantor of its intent to exercise remedies, promptly upon the request of the Collateral Agent, such Grantor will notify each issuer of Pledged Debt that such Pledged Debt is subject to the security interests granted hereunder.

Section 5. [<u>Reserved</u>].

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Section 6. <u>Representations and Warranties</u>. Each Grantor represents and warrants to the Collateral Agent and each Secured Party as follows (it being understood that none of the following applies to Excluded Property):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as of the Closing Date (or, in the case of an Additional Grantor, as of the date of the Security Agreement Supplement with respect to such Additional Grantor), (i) such Grantor's exact legal name, as defined in Section 9-503(a) of the UCC, type of organization, jurisdiction of organization or incorporation, organizational identification number (if any) and taxpayer identification number (if any) are correctly set forth in <u>Schedule I</u> hereto (as such <u>Schedule I</u> may be supplemented from time to time by supplements to this Agreement), (ii) such Grantor is located (within the meaning of Section 9-307 of the UCC) and has its chief executive office in the state or jurisdiction set forth in <u>Schedule I</u> hereto and (iii) such Grantor has no trade names other than as listed on <u>Schedule I</u> hereto and, within the 5 years preceding the Closing Date (or, in the case of an Additional Grantor, as of the date of the Security Agreement Supplement with respect to such Additional Grantor), has not changed its name, location, chief executive office, type of organization, jurisdiction of organization or incorporation, organizational identification number (if any) or taxpayer identification number (if any) from those set forth on <u>Schedule I</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All of the Equipment and Inventory (other than (i) Equipment or Inventory in transit, (ii) Equipment or Inventory in the possession of third parties for repair or refurbishment, (iii) Equipment or Inventory in the possession of third party processors or consisting of demonstration units, (iv) Equipment or Inventory at job sites, or (v) Equipment or Inventory in the possession of employees in the ordinary course of business) of such Grantor located in the United States, in each case, with value (individually and together with the value of all Equipment and Inventory of all other Grantors located at the same location) in excess of $20,000,000 are located at the locations of such Grantor specified on Schedule V hereto, as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All Pledged Interests consisting of certificated securities and all Pledged Debt have been or will be delivered to the Collateral Agent in accordance herewith and with the Credit Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) such Grantor is the legal and beneficial owner of the Collateral granted or purported to be granted by it free and clear of any Lien, claim, option or right of others, except for the security interest created under this Agreement, the other Loan Documents and other Permitted Liens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) (i) the Pledged Interests pledged by such Grantor on the Closing Date (or, in the case of an Additional Grantor, as of the date of the Security Agreement Supplement with respect to such Additional Grantor) in respect of the Obligations constitute the percentage of the issued and outstanding Equity Interests of the issuers thereof indicated on <u>Schedule II</u> hereto, which schedule correctly represents as of the date hereof, all Pledged Interests, and with respect thereto, the issuer, the certificate number, if any, the Grantor and the record owner, the number and class and the percentage pledged of such class, (ii) no amount payable under or in connection with any of the Pledged Debt is evidenced by an instrument other than such instruments indicated on <u>Schedule II</u>, which schedule

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correctly represents the issuers thereof, the initial principal amount, the Grantor and holder and date of issuance of such Pledged Debt, and (iii) as of the Closing Date (or, in the case of an Additional Grantor, as of the date of the Security Agreement Supplement with respect to such Additional Grantor), the Pledged Interests pledged by such Grantor hereunder have been validly issued and, in the case of Pledged Interests issued by a corporation, are fully paid and non-assessable (to the extent such concepts are applicable in the relevant jurisdiction) and, in the case of Pledged Debt among the Grantors and their Subsidiaries, are legal, valid and binding obligations of the issuers thereof, subject to the Legal Reservations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) such Grantor has full power, authority and legal right to pledge all the Collateral pledged by such Grantor pursuant to this Agreement and upon the filing of appropriate financing statements under the UCC and the recordation of the IP Security Agreement (as defined below) with the USPTO and the USCO and the taking of possession or control by the Collateral Agent of such Collateral with respect to which a security interest may be perfected only by possession or control (which possession or control shall be given to the Collateral Agent to the extent required by this Agreement), all actions necessary to perfect the security interest, so far as perfection is possible under relevant law, in the Collateral of such Grantor created under this Agreement with respect to which a Lien may be perfected by filing or possession or control pursuant to the UCC or 35 U.S.C. §261, 15 U.S.C. §1060 or 17 U.S.C. §205 subject to the terms of this Agreement shall have been duly made or taken and are in full force and effect, and this Agreement, subject to the Legal Reservations, creates in favor of the Collateral Agent for the benefit of the Secured Parties a valid, enforceable and, together with such filings and other actions, perfected, so far as perfection is possible under relevant law, first priority security interest in such Collateral of such Grantor (subject to the Perfection Exceptions and Permitted Liens), securing the payment of the Secured Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) except as would not reasonably be expected to have a Material Adverse Effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the knowledge of any Grantor, the conduct of the business of such Grantor as currently conducted does not infringe upon, misappropriate, dilute or otherwise violate the intellectual property rights of any third party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Grantors are the exclusive owners of the entire right, title and interest in and to each item of the Intellectual Property Collateral, including those set forth on <u>Schedule III,</u> and are entitled to use all Intellectual Property Collateral subject only to the terms of the IP Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) as of the Closing Date (or, in the case of an Additional Grantor, as of the date of the Security Agreement Supplement with respect to such Additional Grantor), the Intellectual Property Collateral set forth on <u>Schedule III</u> hereto includes (x) all of the registrations or pending applications for registration in the USPTO of Patents and Trademarks and (y) all of the registrations or pending applications for registration in the USCO of Copyrights owned by any Grantor (collectively, the "<u>Registered Intellectual Property Collateral</u>"), as well as all of the IP Agreements that are exclusive licenses to United States registered Copyrights;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to the knowledge of any Grantor, the Registered Intellectual Property Collateral is subsisting and has not been adjudged invalid or unenforceable in whole or part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to the knowledge of any Grantor, no Person is engaging in any activity that infringes, misappropriates, dilutes or otherwise violates the Intellectual Property Collateral owned by such Grantor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) no claim has been made for which a proceeding is ongoing (A) alleging that the conduct of such Grantor's business infringes upon, misappropriates, dilutes or otherwise violates the intellectual property rights of any third party or (B) challenging the validity or enforceability of any Intellectual Property Collateral owned by such Grantor.

Section 7. <u>Further Assurances</u>. (a) Each Grantor agrees that from time to time, at the expense of such Grantor, such Grantor will promptly execute and deliver, or otherwise authenticate, all further instruments and documents, and take all further action that may be necessary or that the Collateral Agent may reasonably request, in order to grant, preserve, perfect and/or protect any pledge or security interest granted or purported to be granted by such Grantor hereunder or to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with respect to any Collateral of such Grantor, in each case, subject to the Perfection Exceptions and in a manner not in violation of any intercreditor agreement entered into by the Collateral Agent in accordance with <u>Section</u> <u>9.15</u> of the Credit Agreement. Without limiting the generality of the foregoing, each Grantor will, upon the Collateral Agent's reasonable request, promptly with respect to Collateral of such Grantor, subject to Section 6.16 of the Credit Agreement: (i) if any such Pledged Debt shall be evidenced by a promissory note or other instrument, deliver and pledge to the Collateral Agent hereunder such note or instrument duly indorsed and accompanied by duly executed instruments of transfer or assignment, all in form and substance reasonably satisfactory to the Collateral Agent; (ii) execute or authenticate and file such financing or continuation statements, or amendments thereto, and such other instruments or notices, as may be reasonably necessary, or as the Collateral Agent may reasonably request, in order to perfect and preserve the perfected security interest granted or purported to be granted by such Grantor hereunder; (iii) deliver and pledge to the Collateral Agent for the benefit of the Secured Parties certificates representing Security Collateral that constitutes certificated securities, accompanied by undated stock or bond powers executed in blank (to the extent required to be pledged pursuant to this Agreement); and (iv) deliver to the Collateral Agent evidence that all other action (subject to the Perfection Exceptions) that the Collateral Agent may reasonably require from time to time in order to grant, preserve, perfect and protect the security interest granted or purported to be granted by such Grantor under this Agreement has been taken in each case, in a manner not in violation of any intercreditor agreement entered into by the Collateral Agent in accordance with <u>Section</u> <u>9.15</u> of the Credit Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Grantor hereby authorizes the Collateral Agent to file one or more financing or continuation statements, and amendments thereto, including, without limitation, one or more financing statements indicating that such financing statements cover all assets or all personal property (or words of similar effect) of such Grantor, whether now owned or hereafter acquired, wherever located, and whether now or hereafter existing or arising in each case without the signature of such Grantor, and regardless of whether any particular asset described in such financing statements falls within the scope of the UCC or the granting clause of this Agreement. A photocopy or other reproduction of this Agreement or any financing statement covering the Collateral or any part thereof shall be sufficient as a financing statement where permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) At the time of delivery of the Compliance Certificate covering the annual financial statements with respect to the preceding fiscal year pursuant to Section 6.02(a) of the Credit Agreement, the Borrower Representative shall update <u>Schedules II</u> and <u>III</u> of this Agreement with any changes since the Closing Date or the delivery of the Compliance Certificate covering the previous annual financial statements, as applicable, or confirm that there have been no such changes during such period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise provided in this <u>Section</u> <u>8(b)</u>, each Grantor will continue to collect, at its own expense, all amounts due or to become due to such Grantor under its Accounts. In connection with such collections, such Grantor may take (and, at the Collateral Agent's direction during the continuation of an Event of Default, shall take) such commercially reasonable action as such Grantor (or, during the continuation of an Event of Default, the Collateral Agent) may deem necessary or advisable to enforce collection thereof; <u>provided</u>, <u>however</u>, that, upon prior written notice to the Borrower Representative from the Collateral Agent stating that the Collateral Agent intends to exercise its rights pursuant to this <u>Section</u> <u>8(b)</u>, during the continuation of an Event of Default, the Collateral Agent shall have the right at any time, in its discretion, to notify the obligors under any Accounts of the assignment of such Accounts to the Collateral Agent and to direct such obligors to make payment of all amounts due or to become due to such Grantor thereunder directly to the Collateral Agent and, upon such prior written notice to the Borrower Representative and at the expense of such Grantor, to enforce collection of any such Accounts, to adjust, settle or compromise the amount or payment thereof, in the same manner and to the same extent as such Grantor might have done, and to otherwise exercise all rights with respect to such Accounts, including, without limitation, those rights set forth in Section 9-607 of the UCC. During the continuation of an Event of Default, following delivery of the written notice to the Borrower Representative referred to in the proviso to the preceding sentence, (i) all amounts and proceeds (including, without limitation, instruments) received by such Grantor in respect of the Accounts of such Grantor shall be

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received in trust for the benefit of the Collateral Agent hereunder, shall be segregated from other funds of such Grantor and shall be either (A) released to such Grantor to the extent permitted under the terms of the Credit Agreement so long as no Event of Default shall have occurred and be continuing or (B) if an Event of Default shall have occurred and be continuing, applied as provided in <u>Section</u> <u>8.04</u> of the Credit Agreement and (ii) except with the consent of the Collateral Agent, such Grantor will not adjust, settle or compromise the amount or payment of any Account, release wholly or partly any obligor thereof, or allow any credit or discount thereon.

Section 9. <u>As to Intellectual Property Collateral</u>. (a) Except as would not reasonably be expected to have a Material Adverse Effect, with respect to each item of its Registered Intellectual Property Collateral, each Grantor agrees to take, at its expense, all commercially reasonable steps, including, without limitation, in the USPTO and the USCO, to (i) maintain the validity and enforceability of such Intellectual Property Collateral and maintain such Intellectual Property Collateral in full force and effect, and (ii) pursue the registration and maintenance of each Patent, Trademark, or Copyright registration or application, now or hereafter included in such Intellectual Property Collateral of such Grantor, including, without limitation, the payment of required fees and taxes, the filing of responses to office actions issued by the USPTO and the USCO, the filing of applications for renewal or extension, the filing of affidavits under Sections 8 and 15 of the Lanham Act, the filing of divisional, continuation, continuation-in-part, reissue and renewal applications or extensions, the payment of maintenance fees and the participation in interference, reexamination, opposition, cancellation, infringement and misappropriation proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as would not reasonably be expected to have a Material Adverse Effect, each Grantor shall use proper statutory notice in connection with its use of Intellectual Property Collateral registered with, issued by, or applied for with the USPTO or USCO that is material to the business of the Borrowers and their Restricted Subsidiaries. Except as would not be reasonably expected to have a Material Adverse Effect, no Grantor shall do or permit any act or knowingly omit to do any act whereby any of its Registered Intellectual Property Collateral may lapse or become invalid or unenforceable or placed in the public domain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding the foregoing, each Grantor may refrain from taking, or shall be permitted to take, as the case may be, any actions otherwise prohibited or required by the foregoing clauses (a) and (b) of this <u>Section</u> <u>9</u> with respect to Intellectual Property Collateral which it determines in its good faith, commercially reasonable business judgment not to be useful to the business of the Borrowers and their Restricted Subsidiaries or worth protecting or maintaining (including without limitation by abandoning, failing to defend or maintain, causing any such Intellectual Property Collateral to become unenforceable, abandoned, invalidated or publicly available or otherwise disposing of any such Intellectual Property Collateral).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) With respect to its Registered Intellectual Property Collateral, each Grantor agrees to execute or otherwise authenticate an agreement, in substantially the form set forth in <u>Exhibit B</u> hereto (an "<u>IP Security Agreement</u>"), for recording the security interest granted hereunder to the Collateral Agent in such Registered Intellectual Property Collateral with the USPTO and the USCO.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Without limiting <u>Section</u> <u>1,</u> each Grantor agrees that should it obtain an ownership interest in any item of the type set forth in <u>Section</u> <u>1(p)</u> that is not, as of the Closing Date (or, in the case of an Additional Grantor, as of the date of the Security Agreement Supplement with respect to such Additional Grantor), a part of the Intellectual Property Collateral ("<u>After- Acquired Intellectual Property</u>") (i) the provisions of this Agreement shall automatically apply thereto, and (ii) any such After-Acquired Intellectual Property and, in the case of Trademarks, the goodwill symbolized thereby, shall automatically become part of the Intellectual Property Collateral subject to the terms and conditions of this Agreement with respect thereto. Each Grantor shall, to the extent required pursuant to <u>Section</u> <u>6.12</u> of the Credit Agreement, execute and deliver to the Collateral Agent, or otherwise authenticate, an IP Security Agreement Supplement covering such After-Acquired Intellectual Property which IP Security Agreement Supplement shall be recorded promptly by such Grantor with the USPTO and the USCO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) At such time as the Collateral Agent is lawfully entitled to exercise its rights and remedies under <u>Section</u> <u>14</u> and solely during the continuation of an Event of Default, each Grantor hereby grants to the Collateral Agent an irrevocable, non-exclusive license (exercisable without payment of royalty or other compensation to such Grantor) subject, in the case of Trademarks, to sufficient rights to quality control and inspection in favor of such Grantor (to be exercised in good faith) no less than the standards used by Grantor's historic use to avoid the risk of invalidation of such Trademarks, to use, assign or sublicense any Intellectual Property Collateral in which such Grantor has rights wherever the same may be located, including, without limitation, in such license access to (i) all media in which any of the licensed items may be recorded or stored, and (ii) copies of all Computer Software used for compilation or print-out. The license granted under this Section is to enable the Collateral Agent to exercise its rights and remedies under <u>Section</u> <u>14</u> and for no other purpose and, with respect to any Intellectual Property Collateral not owned by a Grantor, is subject to any restrictions set forth in any applicable IP Agreement (provided, that such restrictions did not arise in contemplation hereof). For the avoidance of doubt, at the time of the release of the Liens as set forth in Section 19, the license granted to the Collateral Agent pursuant to this Section 10(f) shall automatically and immediately terminate; <u>provided</u>, <u>however</u>, that any assignment, license, sublicense or other transaction entered into by the Collateral Agent in accordance herewith shall be binding upon each Grantor notwithstanding any subsequent cure of an Event of Default.

Section 10. <u>Voting Rights; Dividends;</u> <u>Etc</u>. (a) Except during the continuance of an Event of Default under Section 8.01 of the Credit Agreement and after receipt by the Borrower Representative of three (3) Business Days' prior written notice from the Collateral Agent stating that the Collateral Agent intends to exercise its rights pursuant to <u>Section</u> <u>10(b)(i)</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each Grantor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Security Collateral of such Grantor or any part thereof for any purpose; <u>provided</u>, <u>however</u>, that such Grantor will not exercise or refrain from exercising any such right in a manner prohibited by the Loan Documents;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each Grantor shall be entitled to receive and retain any and all dividends, interest and other distributions paid in respect of the Security Collateral of such Grantor if and to the extent that the payment thereof is not otherwise prohibited by the terms of the Loan Documents, including any and all:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) dividends, interest and other distributions paid or payable other than in cash in respect of, and instruments and other property received, receivable or otherwise distributed in respect of, or in exchange for, any Security Collateral,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) dividends and other distributions paid or payable in cash in respect of any Security Collateral in connection with a partial or total liquidation or dissolution or in connection with a reduction of capital, capital surplus or paid-in-surplus and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) cash paid, payable or otherwise distributed in respect of principal of, or in redemption of, or in exchange for, any Security Collateral,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of the foregoing clause (A), any such property distributed in respect of any Security Collateral shall be deemed to constitute acquired property and shall be forthwith delivered to the Collateral Agent as Security Collateral in the same form as so received (with any necessary indorsement or other instrument) in accordance with the terms of this Agreement and the provisions of <u>Section</u> <u>6.12</u> of the Credit Agreement and (y) in the case of the foregoing clauses (B) and (C), any such cash distributed in respect of any Security Collateral shall be subject to the provisions of the Credit Agreement applicable to the proceeds of a Disposition of property; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Collateral Agent will promptly execute and deliver (or cause to be executed and delivered) to each Grantor all such proxies and other instruments as such Grantor may reasonably request for the purpose of enabling such Grantor to exercise the voting and other rights that it is entitled to exercise pursuant to paragraph (i) above and to receive the dividends or interest payments that it is authorized to receive and retain pursuant to paragraph (ii) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During the continuance of an Event of Default under Section 8.01 of the Credit Agreement and after receipt by the Borrower Representative of three (3) Business Days' prior written notice from the Collateral Agent stating that the Collateral Agent intends to exercise its rights pursuant to <u>Section</u> <u>10(b)(i)</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all rights of each Grantor (1) to exercise or refrain from exercising the voting and other consensual rights that it would otherwise be entitled to exercise pursuant to <u>Section</u> <u>10(a)(i)</u> shall cease and (2) to receive the dividends, interest and other distributions that it would otherwise be authorized to receive and retain pursuant to <u>Section</u> <u>10(a)(ii)</u> shall automatically cease, and all such rights shall

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thereupon become vested in the Collateral Agent, which shall thereupon have the sole right to exercise or refrain from exercising such voting and other consensual rights and to receive and hold as Security Collateral such dividends, interest and other distributions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all dividends, interest and other distributions that are received by any Grantor contrary to the provisions of paragraph (i) of this <u>Section</u> <u>10(b)</u> shall be received in trust for the benefit of the Collateral Agent, shall be segregated from other funds of such Grantor and shall be forthwith paid over to the Collateral Agent as Security Collateral in the same form as so received (with any necessary indorsement).

Section 11. <u>Collateral Agent Appointed Attorney-in-Fact</u>. Each Grantor hereby irrevocably appoints the Collateral Agent as such Grantor's attorney-in-fact, with full authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, from time to time, solely upon the occurrence and during the continuance of an Event of Default and following any required written notice to the Grantors, in the Collateral Agent's discretion, to take any action and to execute any instrument that the Collateral Agent may deem necessary or advisable to accomplish the purposes of this Agreement (in accordance with this Agreement and each other applicable Loan Document), including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to obtain and adjust insurance required to be paid to the Collateral Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to ask for, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due under or in respect of any of the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to receive, indorse and collect any drafts or other instruments, documents and Chattel Paper, in connection with clause (a) or (b) above; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to file any claims or take any action or institute any proceedings that the Collateral Agent may deem necessary or desirable for the collection of any of the Collateral or otherwise to enforce compliance with the terms and conditions of any Assigned Agreement or the rights of the Collateral Agent with respect to any of the Collateral.

Section 12. <u>Collateral Agent May Perform</u>. If any Grantor fails to perform any agreement contained herein after the expiration or termination of any applicable cure or grace periods, the Collateral Agent may, after providing prior notice to such Grantor of its intent to do so, but without any obligation to do so, itself perform, or cause performance of, such agreement, and the reasonable and documented out-of-pocket expenses of the Collateral Agent incurred in connection therewith shall be payable by such Grantor under <u>Section</u> <u>15</u>.

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Section 13. <u>The Collateral Agent</u><u>'</u><u>s Duties</u>. (a) The powers conferred on the Collateral Agent hereunder are solely to protect the Secured Parties' interest in the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the exercise of reasonable care with respect to the custody of any Collateral in its possession and the accounting for moneys actually received by it hereunder, the Collateral Agent shall have no duty as to any Collateral, as to ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Collateral, whether or not any Secured Party has or is deemed to have knowledge of such matters, or as to the taking of any necessary steps to preserve rights against any parties or any other rights pertaining to any Collateral. The Collateral Agent shall be deemed to have exercised reasonable care in the custody and preservation of any Collateral in its possession if such Collateral is accorded treatment substantially equal to that which it accords its own property. It is expressly understood and agreed that the obligations of the Collateral Agent as holder of the Collateral and interests therein and with respect to the disposition thereof, and otherwise under this Agreement, are only those expressly set forth in this Agreement and in <u>Article</u> <u>IX</u> of the Credit Agreement. The Collateral Agent shall act hereunder on the terms and conditions set forth herein and in <u>Article IX</u> of the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Secured Parties and the Collateral Agent have no obligation to keep Collateral in their possession identifiable. The Collateral Agent has no obligation to collect dividends, distributions or interest payable on, or exercise any option or right in connection with any Collateral. Subject to <u>Section</u> <u>13(a),</u> the Collateral Agent has no obligation to protect or preserve any Collateral from depreciating in value or becoming worthless and is released from all responsibility for any loss of value, whether such Collateral is in the possession of, is a security entitlement of, or is subject to the control of, the Collateral Agent, a securities intermediary, the Grantor or any other person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Collateral Agent may from time to time, when the Collateral Agent deems it to be necessary, appoint one or more subagents (each a "<u>Subagent</u>") for the Collateral Agent hereunder with respect to all or any part of the Collateral. In the event that the Collateral Agent so appoints any Subagent with respect to any Collateral, (i) the assignment and pledge of such Collateral and the security interest granted in such Collateral by each Grantor hereunder shall be deemed for purposes of this Agreement to have been made to such Subagent, in addition to the Collateral Agent, for the benefit of the Secured Parties, as security for the Secured Obligations, (ii) such Subagent shall automatically be vested, in addition to the Collateral Agent, with all duties, rights, powers, privileges, interests and remedies of the Collateral Agent hereunder with respect to such Collateral, and (iii) the term "Collateral Agent," when used herein in relation to any duties, rights, powers, privileges, interests and remedies of the Collateral Agent with respect to such Collateral, shall include such Subagent; <u>provided</u>, however, that no such Subagent shall be authorized to take any action with respect to any such Collateral unless and except to the extent expressly authorized in writing by the Collateral Agent.

Section 14. <u>Remedies</u>. During the continuation of an Event of Default, subject to any prior notice to the Borrower Representative as required hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Collateral Agent may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party upon default under the UCC (whether or not the UCC applies to the affected Collateral) and also may: (i) require each Grantor to, and each Grantor hereby agrees that it will at its expense and upon request of the Collateral Agent forthwith,

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assemble all or part of the Collateral as directed by the Collateral Agent and make it available to the Collateral Agent at a place and time to be designated by the Collateral Agent that is reasonably convenient to both parties; (ii) without notice except as specified below, sell the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Collateral Agent's offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Collateral Agent may deem commercially reasonable; (iii) occupy any premises owned or leased by any of the Grantors where the Collateral or any part thereof is assembled or located for a reasonable period in order to effectuate its rights and remedies hereunder or under law, without obligation to such Grantor in respect of such occupation; and (iv) exercise any and all rights and remedies of any of the Grantors under or in connection with the Collateral, or otherwise in respect of the Collateral, including, without limitation, (A) any and all rights of such Grantor to demand or otherwise require payment of any amount under, or performance of any provision of, the Assigned Agreements, the Accounts and the other Collateral, (B) withdraw, or cause or direct the withdrawal, of all funds with respect to accounts containing Cash Collateral and (C) exercise all other rights and remedies with respect to the Assigned Agreements, the Accounts and the other Collateral, including, without limitation, those set forth in Section 9-607 of the UCC, in each case in accordance with the other provisions of this Agreement. Each Grantor agrees that, to the extent notice of sale shall be required by Law, at least ten (10) Business Days' notice to such Grantor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. The Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) After the Collateral Agent has given written notice to the applicable Grantor of its intent to exercise remedies, all payments received by any Grantor under or in connection with any Assigned Agreement or otherwise in respect of the Collateral shall be received in trust for the benefit of the Collateral Agent, shall be segregated from other funds of such Grantor and shall be forthwith paid over to the Collateral Agent in the same form as so received (with any necessary indorsement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Collateral Agent may, without notice to any Grantor except as required by Law and at any time or from time to time, charge, set-off and otherwise apply all or any part of the Secured Obligations against any funds held with respect to any Deposit Account of a Grantor that is not an Exempt Deposit Account (and provided that such funds do not constitute Excluded Property with respect to the Obligations at issue). For purposes of this Agreement, the term "<u>Exempt Deposit Account</u>" shall mean any Deposit Account owned by or in the name of a Loan Party with respect to which such Loan Party is acting as a fiduciary for another Person who is not a Loan Party and any Excluded Accounts.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any cash held by or on behalf of the Collateral Agent and all cash proceeds received by or on behalf of the Collateral Agent in respect of any sale of, collection from, or other realization upon all or any part of the Collateral may, in the discretion of the Collateral Agent, be held by the Collateral Agent as collateral for, and/or then or at any time thereafter applied (after payment of any amounts payable to the Collateral Agent pursuant to <u>Section</u> <u>15</u>) in whole or in part by the Collateral Agent against, all or any part of the Secured Obligations, in the manner set forth in <u>Section</u> <u>8.04</u> of the Credit Agreement. Notwithstanding the foregoing, if intercreditor arrangements have been entered into in accordance with <u>Section</u> <u>9.15</u> of the Credit Agreement among the holders of the Secured Obligations and holders of any other Indebtedness permitted under the Credit Agreement which provides for the application of proceeds received by the Collateral Agent in respect of any sale of, collection from or other realization upon all or any part of the Collateral, then such proceeds may be applied pursuant to the terms of such intercreditor arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event of any sale or other disposition (including pursuant to a plan of division, LLC Division or LP Division) of any of the Intellectual Property Collateral of any Grantor, the goodwill symbolized by any Trademarks subject to such sale or other disposition shall be included therein, and such Grantor shall supply to the Collateral Agent or its designee such Grantor's know-how and expertise, and documents and things relating to any Intellectual Property Collateral subject to such sale or other disposition, and such Grantor's customer lists and other records and documents relating to such Intellectual Property Collateral and to the manufacture, distribution, advertising and sale of products and services of such Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If the Collateral Agent shall determine to exercise its right to sell all or any of the Security Collateral of any Grantor pursuant to this <u>Section</u> <u>14</u>, each Grantor agrees that, upon request of the Collateral Agent, such Grantor will, at its own expense, do or cause to be done all such other acts and things as may be necessary to make such sale of such Security Collateral or any part thereof valid and binding and in compliance with applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Subject to <u>Section</u> <u>10.08</u> of the Credit Agreement, the Collateral Agent is authorized, in connection with any sale of the Security Collateral pursuant to this <u>Section</u> <u>14</u>, to deliver or otherwise disclose to any prospective purchaser of the Security Collateral: (i) any registration statement or prospectus, and all supplements and amendments thereto; (ii) any information and projections; and (iii) any other information in its possession, in each case of clauses (i), (ii) and (iii), relating to such Security Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Except as otherwise provided in any Loan Documents, with the written consent of the Administrative Agent and the Required Lenders, to the extent permitted by any such requirement of Law (including, without limitation, Section 9-610 of the UCC), the Collateral Agent (or any other Person on its behalf) may bid for and become the purchaser (and may pay all or any portion of the purchase price by crediting Obligations against the purchase price) of the Collateral or any item thereof, offered for Disposition in accordance with this <u>Section</u> <u>14</u> without accountability to the relevant Grantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Grantor acknowledges the impossibility of ascertaining the amount of damages that would be suffered by the Secured Parties by reason of the failure by such Grantor to perform any of the covenants contained in <u>Section</u> <u>14(f)</u> above and, consequently, agrees that, if such Grantor shall fail to perform any of such covenants, it will pay, as liquidated damages and not as a penalty, an amount equal to the value of the Security Collateral on the date the Collateral Agent shall demand compliance with <u>Section</u> <u>14(f)</u> above, which, for the avoidance of doubt, such amount shall not exceed the outstanding amount of the Secured Obligations at such time.

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Section 15. <u>Expenses</u>. (a) Each Grantor will within 30 days (or such longer period as the Collateral Agent may agree to in its reasonable discretion) after invoiced or written demand therefor (with a reasonably detailed invoice with respect thereto) pay to the Collateral Agent the amount of any and all reasonable and documented out-of-pocket expenses, including, without limitation, the reasonable and documented out-of-pocket fees and expenses of its counsel that the Collateral Agent may incur in connection with (i) the administration of this Agreement, (ii) the custody, preservation, use or operation of, or the sale of, collection from or other realization upon, any of the Collateral of such Grantor, (iii) the exercise or enforcement of any of the rights of the Collateral Agent or the other Secured Parties hereunder or (iv) the failure by such Grantor to perform or observe any of the provisions hereof, in each case, in the manner and to the extent reimbursable by the Borrowers pursuant to <u>Section</u> <u>10.04</u> of the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The parties hereto agree that the Collateral Agent shall be entitled to the benefits of, and the Grantors shall jointly and severally have the indemnification obligations of the Borrowers described in <u>Section</u> <u>10.05</u> of the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any such amounts payable as provided hereunder shall be additional Secured Obligations secured hereby and by the other Secured Documents. The provisions of this <u>Section</u> <u>15</u> shall remain operative and in full force and effect regardless of the termination of this Agreement or any other Loan Document, the repayment of any of the Secured Obligations, the invalidity or unenforceability of any term or provision of this Agreement or any other Loan Document, any resignation of the Collateral Agent, or any investigation made by or on behalf of the Collateral Agent or any Secured Party. Subject to and in accordance with the terms of <u>Section</u> <u>10.04</u> of the Credit Agreement, the Grantors shall pay or reimburse the Collateral Agent and each Secured Party, as applicable, for all amounts due under this <u>Section</u> <u>15</u>.

Section 16. <u>Amendments;</u><u> </u><u>Waivers;</u><u> </u><u>Additional</u> <u>Grantors;</u><u> </u><u>Etc</u>. (a) Subject to <u>Section</u> <u>10.01</u> of the Credit Agreement, no amendment or waiver of any provision of this Agreement, and no consent to any departure by any Grantor herefrom, shall in any event be effective unless the same shall be in writing and signed by the Collateral Agent and the Borrower Representative, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; <u>provided</u> that the addition of any Additional Grantor pursuant to Section 16(b) and the release of any Lien or any Grantor or Borrower pursuant to Section 19 shall not require receipt of any consent from or execution of any documentation by any other Grantor party hereto. No failure on the part of the Collateral Agent or any other Secured Party to exercise, and no delay in exercising any right hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the execution and delivery, or authentication, by any Person of a security agreement supplement in substantially the form of <u>Exhibit A</u> hereto (each a "<u>Security Agreement Supplement</u>"), (i) such Person shall be referred to as an "<u>Additional Grantor</u>" and shall be and become a Grantor hereunder, and each reference in this Agreement, the other Loan Documents and any Secured Cash Management Agreement, Secured Hedge Agreement or Secured Third Party Letter of Credit, to "Grantor" shall also mean and be a reference to such Additional Grantor, and each reference in this Agreement, the other Loan Documents and any Secured Cash Management Agreement, Secured Hedge Agreement or Secured Third Party Letter of Credit, to "Collateral" shall also mean and be a reference to the Collateral of such Additional Grantor, and (ii) the supplemental <u>Schedules I</u> through <u>V</u> attached to each Security Agreement Supplement shall be incorporated into and become a part of and supplement <u>Schedules I</u> through <u>V</u>, respectively, hereto, and the Collateral Agent may attach such supplemental schedules to such Schedules; and each reference to such Schedules shall mean and be a reference to such Schedules as supplemented pursuant to each Security Agreement Supplement.

Section 17. <u>Notices,</u> <u>Etc</u><u>.</u> All notices and other communications provided for hereunder shall be in writing (including electronic mail, telegraphic, telecopy or telex communication or facsimile transmission) and emailed, mailed, telegraphed, telecopied, telexed, faxed or delivered to it, if to any Grantor, addressed to it in care of the Borrower Representative at the Borrower Representative's address specified on <u>Schedule 10.02</u> of the Credit Agreement, or if to the Collateral Agent, at its address specified on <u>Schedule 10.02</u> of the Credit Agreement. All such notices and other communications shall be deemed to be given or made at such time as shall be set forth in <u>Section</u> <u>10.02</u> of the Credit Agreement. Delivery by telecopier or in .pdf or similar format by electronic mail of an executed counterpart of any amendment or waiver of any provision of this Agreement or of any Security Agreement Supplement or Schedule hereto shall be effective as delivery of an original executed counterpart thereof.

Section 18. <u>Continuing Security Interest; Assignments under the Credit Agreement</u>. This Agreement shall create a continuing security interest in the Collateral and shall (a) remain in full force and effect until the termination of the Aggregate Commitments and the payment in full in cash of the Secured Obligations (other than contingent indemnification obligations as to which no claim has been asserted and obligations and liabilities under Secured Cash Management Agreements, Secured Hedge Agreements and Secured Third Party Letters of Credit) and the termination or expiration without any pending drawings of all Letters of Credit (other than Letters of Credit which have been Cash Collateralized or as to which arrangements satisfactory to the L/C Issuer that issued such Letter of Credit shall have been made), (b) be binding upon each Grantor, its successors and assigns and (c) inure, together with the rights and remedies of the Collateral Agent hereunder, to the benefit of the Secured Parties and their respective successors and permitted transferees and assigns. Without limiting the generality of the foregoing clause (c), any Lender may assign or otherwise transfer all or any portion of its rights and obligations under the Credit Agreement (including, without limitation, all or any portion of its Commitments, the Loans owing to it and the Notes, if any, held by it) to any other Person, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to such Lender herein or otherwise, in each case as provided in <u>Section</u> <u>10.07</u> of the Credit Agreement. No Grantor shall have the right to assign its rights hereunder or any interest herein without the prior written consent of the Collateral Agent, other than pursuant to a transaction permitted by the Credit Agreement and consummated in accordance with the terms and conditions contained therein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the termination of the Aggregate Commitments and the payment in full in cash of the Secured Obligations (other than contingent indemnification obligations as to which no claim has been asserted and obligations and liabilities under Secured Cash Management Agreements, Secured Hedge Agreements and Secured Third Party Letters of Credit) and the termination or expiration without any pending drawings of all Letters of Credit (other than Letters of Credit which have been Cash Collateralized or as to which arrangements satisfactory to the L/C Issuer that issued such Letter of Credit shall have been made), the pledge and security interests granted hereby shall automatically terminate and all rights to the Collateral shall revert to the applicable Grantor. Upon any such termination, the Collateral Agent will, at the applicable Grantor's expense, execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary, in the event of any conflict between the terms of any of this <u>Section</u> <u>19</u> and Section 9.11 of the Credit Agreement the terms of such Section 9.11 of the Credit Agreement shall govern and control.

Section 20. <u>Execution in Counterparts</u>. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by telecopier or in .pdf or similar format by electronic mail shall be effective as delivery of an original executed

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counterpart of this Agreement. The words "execution," "execute," "signed," "signature," and words of like import in or related to this Agreement and the transactions contemplated hereby, shall be deemed to include electronic signature, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

Section 21. <u>[Reserved]</u>.

Section 22. <u>Governing Law; Jurisdiction; Etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Sections 10.15 (*Governing Law; Jurisdiction; Etc.*), 10.16 (*Service of Process*) and 10.17 (*Waiver of Right to Trial by Jury*) of the Credit Agreement are hereby incorporated by reference, *mutatis mutandis*.

Section 23. <u>Obligations Absolute</u>. All obligations of each Grantor hereunder shall be absolute and unconditional irrespective of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition, liquidation or the like of any Grantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any lack of validity or enforceability of the Credit Agreement or any other Loan Document, or any other agreement or instrument relating thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any change in the time, manner or place of payment of, or in any other term of, all or any of the Secured Obligations, or any other amendment or waiver of or any consent to any departure from the Credit Agreement or any other Loan Document or any other agreement or instrument relating thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any pledge, exchange, release or non-perfection of any other collateral, or any release or amendment or waiver of or consent to any departure from any guarantee, for all or any of the Secured Obligations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any exercise, non-exercise or waiver of any right, remedy, power or privilege under or in respect hereof, the Credit Agreement or any other Loan Document except as specifically set forth in a waiver granted pursuant to the provisions of <u>Section</u> <u>16</u> hereof.

Section 24. <u>Intercreditor Agreement</u>. Notwithstanding any provision to the contrary in this Agreement (but without expanding the scope of the Collateral as set forth in this Agreement and the Credit Agreement), the lien and security interest granted to the Collateral Agent, for the benefit of the Secured Parties, herein and the exercise of any right or remedy by the Collateral Agent hereunder are subject to the provisions of any intercreditor agreement entered into by the Collateral Agent in accordance with <u>Section</u> <u>9.15</u> of the Credit Agreement. In the event of any conflict or inconsistency between the provisions of any intercreditor agreement entered into by the Collateral Agent in accordance with <u>Section</u> <u>9.15</u> of the Credit Agreement and this Agreement, the provisions

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of such intercreditor agreement shall prevail. Notwithstanding the foregoing, each Grantor expressly acknowledges and agrees that any intercreditor agreement entered into by the Collateral Agent in accordance with <u>Section</u> <u>9.15</u> of the Credit Agreement is solely for the benefit of the parties thereto, and that notwithstanding the fact that the exercise of certain of the Collateral Agent's and the other Secured Parties' rights under this Agreement and the other Loan Documents may be subject to such intercreditor agreement entered into by the Collateral Agent in accordance with <u>Section</u> <u>9.15</u> of the Credit Agreement, no action taken or not taken by the Collateral Agent or any other Secured Party in accordance with the terms of any other intercreditor agreement entered into by the Collateral Agent in accordance with <u>Section</u> <u>9.15</u> of the Credit Agreement shall constitute, or be deemed to constitute, a waiver by the Collateral Agent or any other Secured Party of any rights such Person has with respect to any Grantor under any Loan Document and except as specified herein, nothing contained in such intercreditor agreement entered into by the Collateral Agent in accordance with <u>Section</u> <u>9.15</u> of the Credit Agreement shall be deemed to modify any of the provisions of this Agreement and the other Loan Documents, which, as among the other Grantors, the Collateral Agent and the other Secured Parties, shall remain in full force and effect.

Section 25. <u>Marshaling</u>. Collateral Agent shall not be required to marshal any present or future collateral security (including but not limited to the Collateral) for, or other assurances of payment of, the Secured Obligations or any of them or to resort to such collateral security or other assurances of payment in any particular order, and all of its rights and remedies hereunder and in respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights and remedies, however existing or arising. To the extent that it lawfully may, each Grantor hereby agrees that it will not invoke any law relating to the marshaling of collateral which might cause delay in or impede the enforcement of Collateral Agent's rights and remedies under this Security Agreement or under any other instrument creating or evidencing any of the Secured Obligations or under which any of the Secured Obligations is outstanding or by which any of the Secured Obligations is secured or payment thereof is otherwise assured, and, to the extent that it lawfully may, each Grantor hereby irrevocably waives the benefits of all such laws.

[SIGNATURE PAGES FOLLOW]

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IN WITNESS WHEREOF, each Grantor and the Collateral Agent have caused this Agreement to be duly executed and delivered by its officer thereunto duly authorized as of the date first written above.

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| | |
|:---|:---|
| **OVATION PARENT, INC.**,<br> as a Grantor | **OVATION PARENT, INC.**,<br> as a Grantor |
| By: | /s/ Joseph Salsbury |
|  | Name: Joseph Salsbury |
|  | Title: Chief Financial Officer and Secretary |

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| | |
|:---|:---|
| **HAWKEYE MIDCO, LLC**,<br> as a Grantor | **HAWKEYE MIDCO, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

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| | |
|:---|:---|
| **CONNECTOR INTERMEDIATE HOLDCO, LLC,** | **CONNECTOR INTERMEDIATE HOLDCO, LLC,** |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

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| | |
|:---|:---|
| **SI INTERMEDIATE HOLDING, INC.**,<br> as a Grantor | **SI INTERMEDIATE HOLDING, INC.**,<br> as a Grantor |
| By: | /s/ Laura Siegal |
|  | Name: Laura Siegal |
|  | Title: Chief Financial Officer and Secretary |

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[Signature Page to Security Agreement]

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| | |
|:---|:---|
| **KAMAN CORPORATION**,<br> as a Grantor | **KAMAN CORPORATION**,<br> as a Grantor |
| By: | /s/ Joseph Salsbury |
|  | Name: Joseph Salsbury |
|  | Title: Chief Financial Officer and Secretary |

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| | |
|:---|:---|
| **QUANTIC ELECTRONICS, LLC**,<br> as a Grantor | **QUANTIC ELECTRONICS, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

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| | |
|:---|:---|
| **QUANTIC CORPORATE HOLDINGS, INC.**,<br> as a Grantor | **QUANTIC CORPORATE HOLDINGS, INC.**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

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| | |
|:---|:---|
| **QNNECT, LLC**,<br> as a Grantor | **QNNECT, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

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| | |
|:---|:---|
| **SANDERS INDUSTRIES HOLDINGS, INC.**,<br> as a Grantor | **SANDERS INDUSTRIES HOLDINGS, INC.**,<br> as a Grantor |
| By: | /s/ Laura Siegal |
|  | Name: Laura Siegal |
|  | Title: Chief Financial Officer and Secretary |

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[Signature Page to Security Agreement]

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| | |
|:---|:---|
| **PAKTRON HOLDINGS LLC**,<br> as a Grantor | **PAKTRON HOLDINGS LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer, Treasurer and Secretary |

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| | |
|:---|:---|
| **PAKTRON LLC**,<br> as a Grantor | **PAKTRON LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer, Treasurer and Secretary |

---

---

| | |
|:---|:---|
| **EVANS CAPACITOR COMPANY, LLC**,<br> as a Grantor | **EVANS CAPACITOR COMPANY, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

---

---

| | |
|:---|:---|
| **OHMEGA TECHNOLOGIES, LLC**,<br> as a Grantor | **OHMEGA TECHNOLOGIES, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Vice President |

---

---

| | |
|:---|:---|
| **TECHNICAL RESEARCH AND MANUFACTURING, INC.**,<br> as a Grantor | **TECHNICAL RESEARCH AND MANUFACTURING, INC.**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Treasurer |

---

[Signature Page to Security Agreement]

------

---

| | |
|:---|:---|
| **PLANAR MONOLITHICS INDUSTRIES, INC.**,<br> as a Grantor | **PLANAR MONOLITHICS INDUSTRIES, INC.**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Secretary |

---

---

| | |
|:---|:---|
| **CORRY MICRONICS, LLC**,<br> as a Grantor | **CORRY MICRONICS, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Secretary |

---

---

| | |
|:---|:---|
| **RAZOR HOLDINGS LLC**,<br> as a Grantor | **RAZOR HOLDINGS LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer and Treasurer |

---

---

| | |
|:---|:---|
| **RAZOR ACQUISITIONCO, INC.**,<br> as a Grantor | **RAZOR ACQUISITIONCO, INC.**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer and Treasurer |

---

---

| | |
|:---|:---|
| **PSSC HOLDING CO.**,<br> as a Grantor | **PSSC HOLDING CO.**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer, Treasurer and Secretary |

---

[Signature Page to Security Agreement]

------

---

| | |
|:---|:---|
| **BEI PRECISION SYSTEMS & SPACE COMPANY, INC.**,<br> as a Grantor | **BEI PRECISION SYSTEMS & SPACE COMPANY, INC.**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer, Treasurer and Secretary |

---

---

| | |
|:---|:---|
| **WENZEL ASSOCIATES, INC.**,<br> as a Grantor | **WENZEL ASSOCIATES, INC.**,<br> as a Grantor |
| By: | /s/ Joe Svoboda |
|  | Name: Joe Svoboda |
|  | Title: Chief Executive Officer and President |

---

---

| | |
|:---|:---|
| **MICROWAVE DYNAMICS, LLC**,<br> as a Grantor | **MICROWAVE DYNAMICS, LLC**,<br> as a Grantor |
| By: | /s/ Joe Svoboda |
|  | Name: Joe Svoboda |
|  | Title: Chief Executive Officer and President |

---

---

| | |
|:---|:---|
| **TANTALUM PELLET COMPANY, LLC**,<br> as a Grantor | **TANTALUM PELLET COMPANY, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer, Treasurer and Secretary |

---

---

| | |
|:---|:---|
| **M WAVE DESIGN LLC**,<br> as a Grantor | **M WAVE DESIGN LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer, Treasurer and Secretary |

---

[Signature Page to Security Agreement]

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---

| | |
|:---|:---|
| **UNION TECHNOLOGY CORP.**,<br> as a Grantor | **UNION TECHNOLOGY CORP.**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer, Treasurer and Secretary |

---

---

| | |
|:---|:---|
|  **LEGACY TECHNOLOGIES, LLC**,<br> as a Grantor | **LEGACY TECHNOLOGIES, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

---

---

| | |
|:---|:---|
| **EDINBURGH CONNECTOR COMPANY, LLC**,<br> as a Grantor | **EDINBURGH CONNECTOR COMPANY, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

---

---

| | |
|:---|:---|
| **CUSTOM INTERCONNECTS, LLC**,<br> as a Grantor | **CUSTOM INTERCONNECTS, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

---

---

| | |
|:---|:---|
| **OHIO ASSOCIATED ENTERPRISES, LLC**,<br> as a Grantor | **OHIO ASSOCIATED ENTERPRISES, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

---

[Signature Page to Security Agreement]

------

---

| | |
|:---|:---|
| **PACIFIC AEROSPACE & ELECTRONICS, LLC**,<br> as a Grantor | **PACIFIC AEROSPACE & ELECTRONICS, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

---

---

| | |
|:---|:---|
| **LITRON, LLC**,<br> as a Grantor | **LITRON, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

---

---

| | |
|:---|:---|
| **HSG INTERMEDIATE HOLDCO, LLC**,<br> as a Grantor | **HSG INTERMEDIATE HOLDCO, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

---

---

| | |
|:---|:---|
| **HERMETIC SOLUTIONS GROUP INC.**,<br> as a Grantor | **HERMETIC SOLUTIONS GROUP INC.**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

---

---

| | |
|:---|:---|
| **FILCONN, LLC**,<br> as a Grantor | **FILCONN, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

---

[Signature Page to Security Agreement]

------

---

| | |
|:---|:---|
| **HI-REL UK HOLDCO, LLC**,<br> as a Grantor | **HI-REL UK HOLDCO, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

---

---

| | |
|:---|:---|
| **HI-REL GROUP, LLC**,<br> as a Grantor | **HI-REL GROUP, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

---

---

| | |
|:---|:---|
| **SINCLAIR MANUFACTURING COMPANY, LLC**,<br> as a Grantor | **SINCLAIR MANUFACTURING COMPANY, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

---

---

| | |
|:---|:---|
| **HI-REL CANADA ACQUISITION CORP LLC**,<br> as a Grantor | **HI-REL CANADA ACQUISITION CORP LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

---

---

| | |
|:---|:---|
| **CRISKTEK INTERCONNECTS, LLC**,<br> as a Grantor | **CRISKTEK INTERCONNECTS, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

---

[Signature Page to Security Agreement]

------

---

| | |
|:---|:---|
| **HI-REL PRODUCTS, LLC**,<br> as a Grantor | **HI-REL PRODUCTS, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

---

---

| | |
|:---|:---|
| **AKROFIRE, LLC**,<br> as a Grantor | **AKROFIRE, LLC**,<br> as a Grantor |
| By: | /s/ Laura Siegal |
|  | Name: Laura Siegal |
|  | Title: Chief Financial Officer and Secretary |

---

---

| | |
|:---|:---|
| **SEAL SCIENCE, INC.**,<br> as a Grantor | **SEAL SCIENCE, INC.**,<br> as a Grantor |
| By: | /s/ Laura Siegal |
|  | Name: Laura Siegal |
|  | Title: Chief Financial Officer and Secretary |

---

---

| | |
|:---|:---|
| **INTERNATIONAL RUBBER PRODUCTS, INC.**,<br> as a Grantor | **INTERNATIONAL RUBBER PRODUCTS, INC.**,<br> as a Grantor |
| By: | /s/ Laura Siegal |
|  | Name: Laura Siegal |
|  | Title: Chief Financial Officer and Secretary |

---

---

| | |
|:---|:---|
| **KDL PRECISION MOLDING LLC**,<br> as a Grantor | **KDL PRECISION MOLDING LLC**,<br> as a Grantor |
| By: | /s/ Laura Siegal |
|  | Name: Laura Siegal |
|  | Title: Chief Financial Officer and Secretary |

---

[Signature Page to Security Agreement]

------

---

| | |
|:---|:---|
| **WAGNER RUBBER PRODUCTS, INC.**,<br> as a Grantor | **WAGNER RUBBER PRODUCTS, INC.**,<br> as a Grantor |
| By: | /s/ Laura Siegal |
|  | Name: Laura Siegal |
|  | Title: Chief Financial Officer and Secretary |

---

---

| | |
|:---|:---|
| **MIKRON RUBBER PRODUCTS CORP.**,<br> as a Grantor | **MIKRON RUBBER PRODUCTS CORP.**,<br> as a Grantor |
| By: | /s/ Laura Siegal |
|  | Name: Laura Siegal |
|  | Title: Chief Financial Officer and Secretary |

---

---

| | |
|:---|:---|
| **VIKING RUBBER PRODUCTS, INC.**,<br> as a Grantor | **VIKING RUBBER PRODUCTS, INC.**,<br> as a Grantor |
| By: | /s/ Laura Siegal |
|  | Name: Laura Siegal |
|  | Title: Chief Financial Officer and Secretary |

---

---

| | |
|:---|:---|
| **MIKRON PMP LLC**,<br> as a Grantor | **MIKRON PMP LLC**,<br> as a Grantor |
| By: | /s/ Laura Siegal |
|  | Name: Laura Siegal |
|  | Title: Chief Financial Officer and Secretary |

---

---

| | |
|:---|:---|
| **RUBBERCRAFT CORPORATION OF CALIFORNIA, LTD.**,<br> as a Grantor | **RUBBERCRAFT CORPORATION OF CALIFORNIA, LTD.**,<br> as a Grantor |
| By: | /s/ Laura Siegal |
|  | Name: Laura Siegal |
|  | Title: Chief Financial Officer and Secretary |

---

[Signature Page to Security Agreement]

------

---

| | |
|:---|:---|
| **SHS 16, LLC**,<br> as a Grantor | **SHS 16, LLC**,<br> as a Grantor |
| By: | /s/ Laura Siegal |
|  | Name: Laura Siegal |
|  | Title: Chief Financial Officer and Secretary |

---

---

| | |
|:---|:---|
| **RMB ACQUISITION CORP.**,<br> as a Grantor | **RMB ACQUISITION CORP.**,<br> as a Grantor |
| By: | /s/ Laura Siegal |
|  | Name: Laura Siegal |
|  | Title: Chief Financial Officer and Secretary |

---

---

| | |
|:---|:---|
| **RMB PRODUCTS**,<br> as a Grantor | **RMB PRODUCTS**,<br> as a Grantor |
| By: | /s/ Laura Siegal |
|  | Name: Laura Siegal |
|  | Title: Chief Financial Officer and Secretary |

---

---

| | |
|:---|:---|
| **ON DEMAND MANUFACTURING, INC.**,<br> as a Grantor | **ON DEMAND MANUFACTURING, INC.**,<br> as a Grantor |
| By: | /s/ Laura Siegal |
|  | Name: Laura Siegal |
|  | Title: Chief Financial Officer and Secretary |

---

[Signature Page to Security Agreement]

------

---

| | |
|:---|:---|
| **SWIFT TEXTILE METALIZING LLC**,<br> as a Grantor | **SWIFT TEXTILE METALIZING LLC**,<br> as a Grantor |
| By: | /s/ Laura Siegal |
|  | Name: Laura Siegal |
|  | Title: Chief Financial Officer and Secretary |

---

---

| | |
|:---|:---|
| **SWIFTTEX, LLC**,<br> as a Grantor | **SWIFTTEX, LLC**,<br> as a Grantor |
| By: | /s/ Laura Siegal |
|  | Name: Laura Siegal |
|  | Title: Chief Financial Officer and Secretary |

---

---

| | |
|:---|:---|
| **ADVANCED DEFENSE SOLUTIONS TECHNOLOGIES, LLC**,<br> as a Grantor | **ADVANCED DEFENSE SOLUTIONS TECHNOLOGIES, LLC**,<br> as a Grantor |
| By: | /s/ Laura Siegal |
|  | Name: Laura Siegal |
|  | Title: Chief Financial Officer and Secretary |

---

---

| | |
|:---|:---|
| **MAST TECHNOLOGIES, LLC**,<br> as a Grantor | **MAST TECHNOLOGIES, LLC**,<br> as a Grantor |
| By: | /s/ Laura Siegal |
|  | Name: Laura Siegal |
|  | Title: Chief Financial Officer |

---

---

| | |
|:---|:---|
| **SPIRA MANUFACTURING CORPORATION**,<br> as a Grantor | **SPIRA MANUFACTURING CORPORATION**,<br> as a Grantor |
| By: | /s/ Laura Siegal |
|  | Name: Laura Siegal |
|  | Title: w |

---

[Signature Page to Security Agreement]

------

---

| | |
|:---|:---|
| **KAMAN AEROSPACE GROUP, INC.**,<br> as a Grantor | **KAMAN AEROSPACE GROUP, INC.**,<br> as a Grantor |
| By: | /s/ Joseph Salsbury |
|  | Name: Joseph Salsbury |
|  | Title: Chief Financial Officer and Secretary |

---

---

| | |
|:---|:---|
| **KAMAN ACQUISITION USA, INC.**,<br> as a Grantor | **KAMAN ACQUISITION USA, INC.**,<br> as a Grantor |
| By: | /s/ Joseph Salsbury |
|  | Name: Joseph Salsbury |
|  | Title: Chief Financial Officer and Secretary |

---

---

| | |
|:---|:---|
| **BAL SEAL ENGINEERING, LLC**,<br> as a Grantor | **BAL SEAL ENGINEERING, LLC**,<br> as a Grantor |
| By: | /s/ Joseph Salsbury |
|  | Name: Joseph Salsbury |
|  | Title: Chief Financial Officer and Secretary |

---

---

| | |
|:---|:---|
| **KAMAN AEROSPACE CORPORATION.**,<br> as a Grantor | **KAMAN AEROSPACE CORPORATION.**,<br> as a Grantor |
| By: | /s/ Joseph Salsbury |
|  | Name: Joseph Salsbury |
|  | Title: Chief Financial Officer and Secretary |

---

[Signature Page to Security Agreement]

------

---

| | |
|:---|:---|
| **EXTEX ENGINEERED PRODUCTS, INC.**,<br> as a Grantor | **EXTEX ENGINEERED PRODUCTS, INC.**,<br> as a Grantor |
| By: | /s/ Joseph Salsbury |
|  | Name: Joseph Salsbury |
|  | Title: Chief Financial Officer and Secretary |

---

---

| | |
|:---|:---|
| **KAMATICS CORPORATION**,<br> as a Grantor | **KAMATICS CORPORATION**,<br> as a Grantor |
| By: | /s/ Joseph Salsbury |
|  | Name: Joseph Salsbury |
|  | Title: Chief Financial Officer and Secretary |

---

---

| | |
|:---|:---|
| **TWAIN ACQUISITION, LLC**,<br> as a Grantor | **TWAIN ACQUISITION, LLC**,<br> as a Grantor |
| By: | /s/ Joseph Salsbury |
|  | Name: Joseph Salsbury |
|  | Title: Chief Financial Officer and Secretary |

---

---

| | |
|:---|:---|
| **TRANSCON TECHNOLGIES, LLC**,<br> as a Grantor | **TRANSCON TECHNOLGIES, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

---

---

| | |
|:---|:---|
| **X-MICROWAVE, LLC**,<br> as a Grantor | **X-MICROWAVE, LLC**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer, Treasurer and Secretary |

---

[Signature Page to Security Agreement]

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---

| | |
|:---|:---|
| **TICER TECHNOLOGIES, LLC.**,<br> as a Grantor | **TICER TECHNOLOGIES, LLC.**,<br> as a Grantor |
| By: | /s/ Kristin Gawlik |
|  | Name: Kristin Gawlik |
|  | Title: Chief Financial Officer |

---

[Signature Page to Security Agreement]

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| | |
|:---|:---|
| **CITIBANK, N.A.**, as Collateral Agent | **CITIBANK, N.A.**, as Collateral Agent |
| By: | /s/ Savino Figliuolo |
|  | Name: Savino Figliuolo |
|  | Title: Authorized Signer |

---

[Signature Page to Security Agreement]

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**Schedule I to the** 

**Security Agreement** 

**LOCATION, CHIEF EXECUTIVE OFFICE, TYPE OF ORGANIZATION,** 

**JURISDICTION OF ORGANIZATION OR INCORPORATION,** 

**TAX IDENTIFICATION NUMBER AND TRADE NAMES** 

------

**Schedule II to the** 

**Security Agreement** 

**PLEDGED INTERESTS AND PLEDGED DEBT** 

------

**Schedule III to the** 

**Security Agreement** 

**PATENTS, TRADEMARKS AND COPYRIGHTS** 

------

**Schedule IV to the** 

**Security Agreement** 

**COMMERCIAL TORT CLAIMS** 

------

**Schedule V to the** 

**Security Agreement** 

**EQUIPMENT AND INVENTORY** 

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**Exhibit A to the** 

**Security Agreement** 

**FORM OF SECURITY AGREEMENT SUPPLEMENT** 

------

**Exhibit B to the** 

**Security Agreement** 

**FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT** 

------

**Exhibit C to the** 

**Security Agreement** 

**FORM OF INTELLECTUAL PROPERTY AGREEMENT SUPPLEMENT**

## Exhibit 10.3

**Exhibit 10.3** 

***Execution Version***

**HOLDINGS GUARANTY** 

**Dated as of February 26, 2025** 

**among** 

**OVATION PARENT, INC.,** 

**HAWKEYE MIDCO, LLC,** 

**CONNECTOR INTERMEDIATE HOLDCO, LLC,** 

**and** 

**SI INTERMEDIATE HOLDING, INC.** 

**as Guarantors** 

**and** 

**CITIBANK, N.A.,** 

**as Administrative Agent** 

------

**TABLE OF CONTENTS** 

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
|  SECTION 1. | Guaranty | 2 |
|  SECTION 2. | Guaranty Absolute | 3 |
|  SECTION 3. | Waivers and Acknowledgments | 5 |
|  SECTION 4. | Subrogation | 6 |
|  SECTION 5. | Payments Free and Clear of Taxes, Etc. | 7 |
|  SECTION 6. | Representations and Warranties | 8 |
|  SECTION 7. | Covenants | 8 |
|  SECTION 8. | Amendments, Etc. | 9 |
|  SECTION 9. | Notices, Etc. | 9 |
|  SECTION 10. | No Waiver; Remedies | 10 |
|  SECTION 11. | Right of Set-off | 10 |
|  SECTION 12. | Continuing Guaranty; Assignments under the Credit Agreement | 10 |
|  SECTION 13. | Fees and Expenses; Indemnification | 11 |
|  SECTION 14. | [Reserved] | 11 |
|  SECTION 15. | Right of Contribution | 11 |
|  SECTION 16. | Execution in Counterparts | 12 |
|  SECTION 17. | Governing Law; Jurisdiction; Waiver of Jury Trial, Etc. | 12 |
|  SECTION 18. | Severability | 12 |
|  SECTION 19. | Headings | 12 |
|  SECTION 20. | Guaranty Enforceable by Administrative Agent or Collateral Agent | 13 |
|  SECTION 21. | Keepwell | 13 |

---

Exhibit A - Guaranty Supplement

i

------

**HOLDINGS GUARANTY** 

**HOLDINGS GUARANTY**, dated as of February 26, 2025 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, this "**Guaranty**"), by and among Ovation Parent, Inc., a Delaware corporation ("**Kaman Holdings**"), Hawkeye MidCo, LLC, a Delaware limited liability company ("**Quantic Holdings**"), Connector Intermediate HoldCo, LLC, a Delaware limited liability company ("**Qnnect Holdings**"), and SI Intermediate Holding, Inc., a Delaware corporation ("**Sanders Holdings**"; collectively with Kaman Holdings, Quantic Holdings, and Sanders Holdings, the "**Guarantors**" and each, a "**Guarantor**"), and Citibank, N.A., as administrative agent (in such capacity together with any successor administrative agent, the "**Administrative Agent**") for the benefit of the Secured Parties (as defined in the Credit Agreement referred to below).

**PRELIMINARY STATEMENT** 

Reference is made to that certain Credit Agreement, dated as of the date hereof (as amended, restated, amended and restated, supplemented, replaced, refinanced or otherwise modified from time to time, the "**Credit Agreement**"), by and among Kaman Corporation, a Connecticut corporation ("**Kaman**"), Quantic Electronics, LLC, a Delaware limited liability company ("**Quantic**"), Quantic Corporate Holdings, Inc., a Delaware corporation ("**Quantic Corporate**"), Qnnect, LLC, a Delaware limited liability company ("**Qnnect**"), and Sanders Industries Holdings, Inc., a Delaware corporation ("**Sanders**"; collectively with Kaman, Quantic, Quantic Corporate and Qnnect, the "**Borrowers**" and each, a "**Borrower**"), the Guarantors, each lender from time to time party thereto (collectively, the "**Lenders**" and individually, a "**Lender**"), each L/C Issuer party thereto from time to time and Citibank, N.A. as Administrative Agent, Collateral Agent and a L/C Issuer, and each other party thereto from time to time, pursuant to which the Lenders have agreed to make Loans from time to time and the L/C Issuers have agreed to issue Letters of Credit from time to time, in each case, upon the terms and subject to the conditions expressly set forth therein, one or more Hedge Banks may enter into Secured Hedge Agreements with any Loan Party or any Restricted Subsidiary from time to time, one or more Cash Management Banks may enter into Secured Cash Management Agreements with any Loan Party or any Restricted Subsidiary from time to time and one or more Third Party Letter of Credit Issuers may issue into Secured Third Party Letter of Credit. Terms used herein and not otherwise defined shall have the meaning assigned thereto in the Credit Agreement.

**WHEREAS**, it is a condition precedent to the making of the initial Credit Extensions under the Credit Agreement on the Closing Date that each Guarantor shall have executed and delivered this Guaranty substantially concurrently with the initial Credit Extension;

**WHEREAS**, each Guarantor will obtain benefits from the incurrence of Loans by the Borrowers, the issuance of, and participation in, Letters of Credit for the account of the Borrowers or any Restricted Subsidiary under the Credit Agreement and the entering into by the Loan Parties and Restricted Subsidiaries of Secured Hedge Agreements, Secured Cash Management Agreements and Secured Third Party Letters of Credit and, accordingly, desires to execute this Guaranty in order to satisfy the condition described in the preceding paragraph and to induce the Lenders to make the Loans from time to time, the L/C Issuers to issue Letters of Credit from time to time, the Hedge Banks to enter into Secured Hedge Agreements from time to time, the Cash Management Banks to enter into Secured Cash Management Agreements from time to time and the Third Party Letter of Credit Issuer to issue Secured Third Party Letters of Credit from time to time;

------

**NOW, THEREFORE**, in consideration of the premises and the other benefits accruing to each Guarantor, the receipt and sufficiency of which are hereby acknowledged, each Guarantor hereby makes the following representations and warranties to the Administrative Agent for the benefit of the Secured Parties and each Guarantor, jointly and severally with each other Guarantor hereby covenants and agrees as follows:

SECTION 1. <u>Guaranty</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the maximum extent permitted by applicable Law, each Guarantor hereby, jointly and severally, absolutely, unconditionally and irrevocably guarantees, as a primary obligor and not merely as a surety, the full and punctual payment when due and performance, whether at scheduled maturity or on any date of a required prepayment or by acceleration, demand or otherwise, of all Obligations of each other Loan Party (and the applicable Restricted Subsidiaries in the case of Secured Hedge Agreements, Secured Cash Management Agreements and Secured Third Party Letters of Credit) now or hereafter existing, including, without limitation, all Obligations under or in respect of the Loan Documents, any Letters of Credit, any Secured Cash Management Agreement, any Secured Third Party Letters of Credit and any Secured Hedge Agreement (the Loan Documents, Letters of Credit, Secured Cash Management Agreements, Secured Third Party Letters of Credit and Secured Hedge Agreements, collectively, the "**Secured Documents**") (including, without limitation, any extensions, increases, modifications, substitutions, amendments or renewals of any or all of the foregoing Obligations), whether direct or indirect, absolute or contingent, and whether for principal, interest, premiums, fees, indemnities, contract causes of action, costs, expenses or otherwise (such Obligations collectively, subject to the final two sentences of this paragraph, the "**Guaranteed Obligations**"), and agrees to pay any and all expenses (including, without limitation, fees and expenses of counsel) incurred by the Administrative Agent or any other Secured Party in enforcing any rights under this Guaranty or any other Secured Document, to the extent reimbursable under Section 10.04 of the Credit Agreement. Without limiting the generality of the foregoing, each Guarantor's liability shall extend to all amounts that constitute part of the Guaranteed Obligations and would be owed by any other Loan Party (and the applicable Restricted Subsidiaries in the case of Secured Hedge Agreements, Secured Third Party Letters of Credit and Secured Cash Management Agreements) to any Secured Party under or in respect of the Secured Documents but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving such other Loan Party (and the applicable Restricted Subsidiaries in the case of Secured Hedge Agreements, Secured Third Party Letters of Credit and Secured Cash Management Agreements). Notwithstanding anything herein to the contrary, the Guaranteed Obligations of any Loan Party and Restricted Subsidiary under any Secured Cash Management Agreement, Secured Third Party Letters of Credit or Secured Hedge Agreement shall be guaranteed only to the extent that, and for so long as, the other Guaranteed Obligations are guaranteed. The Guaranteed Obligations of any Guarantor shall exclude any Excluded Swap Obligation of such Guarantor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Guarantor, and by its acceptance of the benefits of this Guaranty, the Administrative Agent and each other Secured Party, hereby confirms that it is the intention of all such Persons that this Guaranty and the obligations of each Guarantor hereunder not constitute a fraudulent transfer or conveyance for purposes of any Debtor Relief Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the extent applicable to such Guarantor. To effectuate the foregoing intention, by acceptance of the benefits of this Guaranty, the Administrative Agent, the other Secured Parties and the Guarantors hereby irrevocably agree that the obligations of each Guarantor under this Guaranty at any time shall be limited to the maximum amount as will result in the obligations of such Guarantor under this Guaranty not constituting a fraudulent transfer or conveyance or subject to avoidance under Debtor Relief Laws or any similar foreign, federal or state law, in each case applicable to such Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Guarantor hereby unconditionally and irrevocably agrees that in the event any payment shall be required to be made to any Secured Party under this Guaranty, the Subsidiary Guaranty or any other guaranty by a Loan Party pertaining to the Guaranteed Obligations, such Guarantor will contribute, to the maximum extent permitted by applicable Law, such amounts to each other guarantor that is a Loan Party so as to maximize the aggregate amount paid to the Secured Parties under or in respect of the Secured Documents.

SECTION 2. <u>Guaranty Absolute</u>.

To the maximum extent permitted by applicable Law, each Guarantor agrees that its guarantee constitutes a guarantee of payment when due of its respective Guaranteed Obligations and not of collection, which will be paid strictly in accordance with the terms of the Secured Documents, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of any Secured Party with respect thereto. The obligations of each Guarantor under or in respect of this Guaranty are independent of the Guaranteed Obligations or any other Obligations of any other Loan Party under or in respect of the Secured Documents, and a separate action or actions may be brought and prosecuted against any Guarantor to enforce this Guaranty, irrespective of whether any action is brought against the Borrowers or any other Loan Party or whether any Borrower or any other Loan Party is joined in any such action or actions. The liability of each Guarantor under this Guaranty shall be joint and several, irrevocable, absolute and unconditional and shall not be affected or impaired by any circumstance or occurrence whatsoever irrespective of, and each Guarantor hereby irrevocably waives, to the maximum extent permitted by applicable Law, any defenses (other than a defense of payment in full of the Guaranteed Obligations in cash (other than (A) contingent indemnification obligations as to which no claim has been asserted and (B) obligations and liabilities under Secured Cash Management Agreements, Secured Third Party Letters of Credit and Secured Hedge Agreements), expiration without any pending drawing or termination of all Letters of Credit (other than in the case of Letters of Credit which have been Cash Collateralized or as to which arrangements satisfactory to the L/C Issuer that issued such Letters of Credit shall have been made) and the termination of the Aggregate Commitments or the release of this Guaranty in accordance with any relevant release provisions in the Secured Documents) it may now have or hereafter acquire in any way relating to, any or all of the following:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any lack of validity or enforceability, at any time, of any Secured Document (including this Guaranty) or any agreement or instrument relating thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any change in the time, manner or place of payment of, or in any other term of, all or any of the Guaranteed Obligations or any other Obligations of any other Loan Party under or in respect of the Secured Documents, or any other amendment or waiver of or any consent to departure from any Secured Document, including, without limitation, any increase in the Guaranteed Obligations resulting from the extension of additional credit to any Loan Party or any of its Subsidiaries or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any taking, exchange, impairment, release or non-perfection of any Collateral or any other collateral, or any taking, release or amendment or waiver of, or consent to departure from, any other guaranty, for all or any of the Guaranteed Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any manner of application of Collateral, or proceeds thereof, to all or any of the Guaranteed Obligations, or any manner of sale or other disposition of any Collateral for all or any of the Guaranteed Obligations or any other Obligations of any Loan Party under the Secured Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any change, restructuring or termination of the corporate structure or existence of any Loan Party or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any failure of any Secured Party to disclose to any Loan Party any information relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of any other Loan Party now or hereafter known to such Secured Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the failure of any other Person to execute or deliver this Guaranty, any Guaranty Supplement (as hereinafter defined) or any other guaranty or agreement or the release or reduction of liability of any other Guarantor or any other guarantor or surety with respect to the Guaranteed Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any rescission, waiver, amendment or modification of, or any release from any of the terms or provisions of, any Loan Document or any other agreement, including with respect to any other Guarantor under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any payment made to any secured creditor on the Indebtedness which any Secured Party repays to the Borrowers or any other Loan Party pursuant to a court order in any bankruptcy, reorganization, arrangement, moratorium or other debtor relief proceeding, and each Guarantor waives any right to the deferral or modification of its obligations hereunder by reason of any such proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any invalidity, rescission, irregularity or unenforceability of all or any part of the Guaranteed Obligations or of any security therefor; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any other circumstance (including, without limitation, any statute of limitations), any act or omission, or any existence of or reliance on any representation by any Secured Party that might otherwise constitute a defense available to, or a discharge of, any Loan Party or any other guarantor or surety.

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This Guaranty shall continue to be effective or be reinstated (other than with respect to any Guarantor released pursuant to Section 8(a)), as the case may be, if at any time any payment or any part thereof, of any of the Guaranteed Obligations is rescinded or must otherwise be returned by any Secured Party or any other Person upon the insolvency, bankruptcy or reorganization (or any analogous proceeding in any jurisdiction) of the Borrowers or any other Loan Party or otherwise, all as though such payment had not been made. For the avoidance of doubt, this paragraph shall survive the termination of this Guaranty.

SECTION 3. <u>Waivers and Acknowledgments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Guarantor hereby unconditionally and irrevocably waives, to the maximum extent permitted by applicable Law, promptness, diligence, notice of acceptance, presentment, demand for performance, notice of nonperformance, default, acceleration, protest or dishonor and any other notice with respect to any of the Guaranteed Obligations and this Guaranty and any requirement that any Secured Party protect, secure, perfect or insure any Lien or any property subject thereto or exhaust any right or take any action against any Loan Party or any other Person or any Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Guarantor hereby unconditionally and irrevocably waives, to the maximum extent permitted by applicable Law, any right to revoke this Guaranty and acknowledges that this Guaranty is continuing in nature (in accordance with the terms hereof) and applies to all Guaranteed Obligations, whether existing now or in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Guarantor hereby unconditionally and irrevocably waives, in each case, to the maximum extent permitted by applicable Law, (i) any defense (other than a defense of payment in full of the Guaranteed Obligations in cash) arising by reason of any claim or defense based upon an election of remedies by any Secured Party that in any manner impairs, reduces, limits, releases or otherwise adversely affects the subrogation, reimbursement, exoneration, contribution or indemnification rights of such Guarantor, (ii) any defense based on any right of set-off or counterclaim against or in respect of the Obligations of such Guarantor hereunder, (iii) any right to proceed against the Borrowers, any other Guarantor, any other guarantor of the Guaranteed Obligations or any other party and (iv) any right to proceed against or exhaust any security held from the Borrowers, any other Guarantor, any other guarantor of the Guaranteed Obligations or any other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Guarantor acknowledges that the Administrative Agent may, in accordance with the Loan Documents, without notice to or demand upon such Guarantor and without affecting the liability of such Guarantor under this Guaranty, foreclose under any collateral serving as security held by the Administrative Agent or the Collateral Agent by non-judicial sale, and each Guarantor hereby waives, to the maximum extent permitted by applicable Law, any defense (other than a defense of payment in full of the Guaranteed Obligations) to the recovery by the Administrative Agent and the other Secured Parties against such Guarantor of any deficiency after such non-judicial sale and any other defense (other than a defense of payment in full of the Guaranteed Obligations in cash) or benefits that may be afforded by applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each Guarantor hereby unconditionally and irrevocably waives, to the maximum extent permitted by applicable Law, any duty on the part of any Secured Party to disclose to such Guarantor any matter, fact or thing relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of any other Loan Party or any of their respective Subsidiaries now or hereafter known by such Secured Party. Each Guarantor acknowledges that the Secured Parties shall have no obligation to investigate the financial condition or affairs of the Borrowers or any other Loan Party or any of their respective Subsidiaries.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each Guarantor hereby unconditionally and irrevocably waives, in each case, to the maximum extent permitted by applicable Law, any right (i) to require the Administrative Agent or any of the Secured Parties to first proceed against, initiate any actions before a court or any other judge or authority, or enforce any other rights or security or claim payment from the Borrowers, any other Loan Party or any other person, before claiming any amounts due from the Guarantors hereunder; (ii) to which it may be entitled to have the assets of the Borrowers, any other Loan Party or any other person first be used, applied or depleted as payment of the Guaranteed Obligations, prior to any amount being claimed from or paid by the Guarantors hereunder; and (iii) to which it may be entitled to have claims against it, or assets to be used or applied as payment, divided between the Borrowers and the Guarantors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each Guarantor acknowledges that it will receive substantial direct and indirect benefits from the financing arrangements contemplated by the Secured Documents and that the waivers set forth in <u>Section</u> <u>2</u> and this <u>Section</u> <u>3</u> are knowingly made in contemplation of such benefits and with full knowledge of their significance and consequences and that if any of such waivers are determined to be contrary to any applicable Law or public policy, such waivers shall be effective only to the maximum extent permitted by applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The waivers made in this Section 3 are subject to the release provisions in Section 9.11 of the Credit Agreement.

SECTION 4. <u>Subrogation</u>.

Each Guarantor hereby unconditionally and irrevocably agrees not to exercise any rights that it may now have or hereafter acquire against the Borrowers or any other Loan Party that arise from the existence, payment, performance or enforcement of such Guarantor's obligations under or in respect of this Guaranty or any other Secured Document, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification and any right to participate in any claim or remedy of any Secured Party against the Borrowers or any other Loan Party or any Collateral, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without limitation, the right to take or receive from the Borrowers or any other Loan Party, directly or indirectly, in cash or other property or by set- off or in any other manner, payment or security on account of such claim, remedy or right, unless and until all of the Guaranteed Obligations and all other amounts payable under this Guaranty shall have been paid in full in cash (other than (A) contingent indemnification obligations as to which no claim has been asserted and (B) obligations and liabilities under Secured Cash Management Agreements, Secured Third Party Letters of Credit and Secured Hedge Agreements), the expiration without any pending drawing or termination of all Letters of Credit (other than in the case of Letters of Credit which have been Cash Collateralized or as to which arrangements satisfactory to the L/C Issuer that issued such Letters of Credit shall have been made), and the termination of the Aggregate Commitments. If any amount shall be paid to any Guarantor in violation of the

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immediately preceding sentence at any time prior to the later of (a) the termination of the Aggregate Commitments and the payment in full of the Guaranteed Obligations in cash and all other amounts in cash (other than (A) contingent indemnification obligations as to which no claim has been asserted and (B) obligations and liabilities under Secured Cash Management Agreements, Secured Third Party Letters of Credit and Secured Hedge Agreements) payable under this Guaranty and (b) the latest date of expiration without any pending drawing or termination of all Letters of Credit (other than in the case of Letters of Credit which have been Cash Collateralized or as to which arrangements satisfactory to the L/C Issuer that issued such Letters of Credit shall have been made), such amount shall be segregated from other property and funds of such Guarantor and shall forthwith be paid or delivered to the Administrative Agent in the same form as so received (with any necessary endorsement or assignment) to be credited and applied to the Guaranteed Obligations and all other amounts payable under this Guaranty, whether matured or unmatured, in accordance with the terms of the Secured Documents, or to be held as Collateral for any Guaranteed Obligations or other amounts payable under this Guaranty thereafter arising. If (i) any Guarantor shall make payment to any Secured Party of all or any part of the Guaranteed Obligations, (ii) the Aggregate Commitments shall have been terminated and all of the Guaranteed Obligations and all other amounts (other than (A) contingent indemnification obligations as to which no claim has been asserted and (B) obligations and liabilities under Secured Cash Management Agreements, Secured Third Party Letters of Credit and Secured Hedge Agreements) payable under this Guaranty shall have been paid in full in cash and (iii) all Letters of Credit (other than in the case of Letters of Credit which have been Cash Collateralized or as to which arrangements satisfactory to the L/C Issuer that issued such Letters of Credit shall have been made) shall have expired without any pending drawing or been terminated, the Secured Parties will, at such Guarantor's request and expense, execute and deliver to such Guarantor appropriate documents, without recourse and without representation or warranty of any kind (either express or implied), necessary to evidence the transfer by subrogation to such Guarantor of an interest in the Guaranteed Obligations resulting from such payment made by such Guarantor pursuant to this Guaranty.

SECTION 5. <u>Payments Free and Clear of Taxes, Etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any and all payments by any Guarantor under this Guaranty or any other Loan Document shall be made, in accordance with the terms of the Credit Agreement, without setoff, counterclaim or other defense, free and clear of and without deduction for any and all present or future Taxes, except as required by applicable Law. The provisions of Section 3.01 of the Credit Agreement are hereby incorporated by reference and each Guarantor agrees to be bound by such provisions as if such provisions were set forth in full herein, *provided* that each reference therein to "a Borrower," "Borrowers" or "Borrower Representative" shall be deemed to be a reference to the "Guarantors" hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Guarantor's obligations hereunder to make payments in the respective applicable currency (such applicable currency being herein called the "**Obligation Currency**") shall not be discharged or satisfied by any tender or recovery pursuant to any judgment expressed in or converted into any currency other than the Obligation Currency, except to the extent that such tender or recovery results in the effective receipt by the Administrative Agent, the Collateral Agent or the respective other Secured Party of the full amount of the Obligation Currency expressed to be payable to the Administrative Agent, the Collateral Agent or such other Secured Party under

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this Guaranty or the other Loan Documents or any Secured Document, as applicable. If for the purpose of obtaining or enforcing judgment against any Guarantor in any court or in any jurisdiction, it becomes necessary to convert into or from any currency other than the Obligation Currency (such other currency being hereinafter referred to as the "**Judgment Currency**") an amount due in the Obligation Currency, the conversion shall be made in a manner consistent with Section 10.23 of the Credit Agreement as determined on the date immediately preceding the day on which the judgment is given (such day being hereinafter referred to as the "**Judgment Currency Conversion Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If there is a change in the rate of exchange prevailing between the Judgment Currency Conversion Date and the date of actual payment of the amount due, the Guarantors jointly and severally covenant and agree to pay, or cause to be paid, such additional amounts, if any (but in any event not a lesser amount), as may be necessary to ensure that the amount paid in the Judgment Currency, when converted at the rate of exchange prevailing on the date of payment, will produce the amount of the Obligation Currency that could have been purchased with the amount of Judgment Currency stipulated in the judgment or judicial award at the rate of exchange prevailing on the Judgment Currency Conversion Date. If the amount of the Judgment Currency actually paid is greater than the sum originally due to the Administrative Agent in the Obligation Currency, the Administrative Agent agrees to return the amount of any excess to the Borrowers (or to any other Person who may be entitled thereto under applicable Law).

For purposes of determining the rate of exchange for this <u>Section</u> <u>5</u>, such amounts shall not include any premium and costs payable in connection with the purchase of the Obligation Currency.

SECTION 6. <u>Representations and Warranties</u>.

Each Guarantor hereby makes each representation and warranty made in the Credit Agreement by the Borrowers with respect to such Guarantor, and each Guarantor hereby further represents and warrants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) there are no conditions precedent to the effectiveness of this Guaranty that have not been satisfied or waived; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such Guarantor has, independently and without reliance upon any Secured Party and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Guaranty and each other Secured Document to which it is or is to be a party, and such Guarantor has established adequate means of obtaining from each other Loan Party on a continuing basis information pertaining to, and is now and on a continuing basis will be completely familiar with, the business, condition (financial or otherwise), operations, performance, properties and prospects of such other Loan Party.

SECTION 7. <u>Covenants</u>.

Each Guarantor covenants and agrees that unless and until all of the Guaranteed Obligations and all other amounts payable under this Guaranty shall have been paid in full in cash (other than (A) contingent indemnification obligations as to which no claim has been asserted and (B) obligations and liabilities under Secured Cash Management Agreements, Secured Third Party Letters of Credit and Secured Hedge Agreements), the expiration or termination of all Letters of

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Credit (other than in the case of Letters of Credit which have been Cash Collateralized or as to which arrangements satisfactory to the L/C Issuer that issued such Letters of Credit shall have been made) and the termination of the Aggregate Commitments, such Guarantor will perform and observe, and cause each of its respective Restricted Subsidiaries to perform and observe, all of the terms, covenants and agreements set forth in the Loan Documents applicable to such Guarantor on its or their part to be performed or observed or that the Borrowers have agreed to cause such Guarantor or such Restricted Subsidiaries to perform or observe.

SECTION 8. <u>Amendments, Guaranty Supplements, Etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Section 10.01 of the Credit Agreement, no amendment or waiver of any provision of this Guaranty and no consent to any departure by any Guarantor therefrom shall in any event be effective unless the same shall be in writing and signed by the Administrative Agent (at the direction of the Required Lenders) and the Guarantors, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. Upon a Guarantor becoming an Excluded Subsidiary, or ceasing to be a Restricted Subsidiary, in each case as a result of a transaction or designation permitted under the Loan Documents, such Guarantor shall be automatically and without further action released from this Guaranty in accordance with the provisions of Section 9.11 of the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It is understood and agreed that any Subsidiary of the Holding Companies that is required to execute a counterpart of this Guaranty after the date hereof pursuant to the Credit Agreement shall execute and deliver a guaranty supplement in substantially the form of <u>Exhibit A</u> hereto (each, a "**Guaranty Supplement**"), and upon the execution and delivery thereof, (i) such Person shall be referred to as an "**Additional Guarantor**" and shall become and be a Guarantor hereunder, and each reference in this Guaranty to a "**Guarantor**" shall also mean and be a reference to such Additional Guarantor, and each reference in any other Loan Document to a "**Guarantor**" shall also mean and be a reference to such Additional Guarantor and (ii) each reference herein to "**this Guaranty**", "**hereunder**", "**hereof**" or words of like import referring to this Guaranty, and each reference in any other Loan Document to the "**Guaranty**", "**thereunder**", "**thereof**" or words of like import referring to this Guaranty, shall mean and be a reference to this Guaranty as supplemented by such Guaranty Supplement. The execution and delivery of such Guaranty Supplement shall not require the consent of any Guarantor hereunder. The rights and obligations of each Guarantor hereunder shall remain in full force and effect notwithstanding the addition of any Additional Guarantor.

SECTION 9. <u>Notices, Etc</u>.

All notices and other communications provided for hereunder shall be in writing (including electronic mail, telegraphic, telecopy or telex communication or facsimile transmission) and mailed, telegraphed, telecopied, telexed, faxed or delivered as follows: if to any Guarantor, addressed to it in care of the Borrowers at their address specified in Schedule 10.02 of the Credit Agreement; if to any Agent or any Lender, at its address specified in Schedule 10.02 of the Credit Agreement; if to any Hedge Bank, at its address specified in the Secured Hedge Agreement to which it is a party; if to any Cash Management Bank, at its address specified in the Secured Cash Management Agreement to which it is a party; if to any Third Party Letter of Credit Issuer, at its address specified in the Secured Third Party Letter of Credit to which it is a party; or at such other address as shall be designated by the recipient in a written notice to each other party. All such notices and other communications shall be deemed to be given or made at such time as shall be set forth in Section 10.02 of the Credit Agreement.

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SECTION 10. <u>No Waiver; Remedies</u>.

No failure on the part of any Secured Party to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by applicable Law.

SECTION 11. <u>Right of Set-off</u>.

Upon the occurrence and during the continuance of any Event of Default, each Secured Party is authorized at any time and from time to time, after obtaining the prior written consent of the Administrative Agent, without prior notice to the Guarantors, any such notice being waived by the Guarantors 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 any currency), other than deposits in fiduciary accounts as to which a Loan Party is acting as fiduciary for another Person who is not a Loan Party and other than Excluded Accounts, at any time held and other indebtedness (in any currency) at any time owing by such Agent or such Secured Party, to or for the credit or the account of the Guarantors against any and all of the Obligations of the Guarantors now or hereafter existing under the Secured Documents, irrespective of whether such Agent or Secured Party shall have made any demand under this Guaranty or any other Secured Document and although such Obligations may be contingent or unmatured or denominated in a currency different from that of the applicable deposit or indebtedness. Each Secured Party agrees promptly to notify the Borrowers and the Administrative Agent after any such set-off and application made by such Secured Party; *provided* that the failure to give such notice shall not affect the validity of such set- off and application. The rights of each Agent and each Secured Party under this <u>Section</u> <u>11</u> are in addition to other rights and remedies (including, without limitation, other rights of set-off) that such Agent and such Secured Party may have. This <u>Section</u> <u>11</u> is subject to the terms and conditions set forth in Section 10.09 of the Credit Agreement.

SECTION 12. <u>Continuing Guaranty; Assignments under the Credit Agreement</u>.

This Guaranty is a continuing guaranty and shall (a) remain in full force and effect until the later of (i) the termination of the Aggregate Commitments and the payment in full of the Guaranteed Obligations and all other amounts in cash (other than (A) contingent indemnification obligations as to which no claim has been asserted and (B) obligations and liabilities under Secured Cash Management Agreements, Secured Third Party Letters of Credit and Secured Hedge Agreements) payable under this Guaranty and (ii) the latest date of expiration without any pending drawing or termination of all Letters of Credit (other than in the case of Letters of Credit which have been Cash Collateralized or as to which arrangements satisfactory to the L/C Issuer that issued such Letters of Credit shall have been made), (b) be binding upon each Guarantor, its successors and assigns and (c) bind and inure to the benefit of and be enforceable by the Secured Parties and their permitted successors, permitted transferees and permitted assigns. Without

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limiting the generality of clause (c) of the immediately preceding sentence, any Secured Party may assign or otherwise transfer all or any portion of its rights and obligations under the Credit Agreement (including, without limitation, all or any portion of its Commitments, the Loans owing to it and the Note or Notes held by it) to any other Person in accordance with Section 10.07 of the Credit Agreement, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to such Secured Party herein or otherwise, in each case as and to the extent provided in Section 10.07 of the Credit Agreement. No Guarantor shall have the right to assign its rights hereunder or any interest herein without the prior written consent of the Administrative Agent, other than pursuant to a transaction permitted by the Credit Agreement and consummated in accordance with the terms and conditions contained therein.

SECTION 13. <u>Fees and Expenses; Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Guarantor, jointly and severally, agrees to reimburse the Administrative Agent for its fees and expenses incurred hereunder to the extent provided in Section 10.04 of the Credit Agreement; *provided* that each reference therein to the "Borrowers" shall be deemed to be a reference to the "Guarantors".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limitation of any other Obligations of any Guarantor or remedies of the Secured Parties under this Guaranty, each Guarantor shall, to the fullest extent permitted by applicable Law, indemnify, defend and save and hold harmless each Indemnitee to the extent provided in Section 10.05 of the Credit Agreement; *provided* that each reference therein to the "Borrowers" shall be deemed to be a reference to the "Guarantors".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any such amounts payable as provided hereunder shall be additional Guaranteed Obligations guaranteed hereby and secured by the Collateral Documents. The provisions of this <u>Section</u> <u>13</u> shall remain operative and in full force and effect regardless of the termination of this Guaranty, any other Loan Document, any Letter of Credit, any Secured Hedge Agreement, any Secured Third Party Letter of Credit or any Secured Cash Management Agreement, the consummation of the transactions contemplated hereby, the repayment of any of the other Guaranteed Obligations, the invalidity or unenforceability of any term or provision of this Guaranty or any other Loan Document or any document governing any of the Obligations arising under any Secured Hedge Agreements, any Secured Third Party Letter of Credit or any Secured Cash Management Agreement, any resignation or removal of the Administrative Agent or the Collateral Agent or any investigation made by or on behalf of the Administrative Agent or any other Secured Party.

SECTION 14. [<u>Reserved</u>].

SECTION 15. <u>Right of Contribution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Guarantor agrees that to the extent that any Guarantor shall have paid more than its proportionate share of any payment made hereunder in respect of the Guaranteed Obligation of any other Guarantor, such Guarantor shall be entitled to seek and receive contribution from and against any other Guarantor which has not paid its proportionate share of such payment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Guarantor's right of contribution under this <u>Section</u> <u>15</u> shall be subject to the terms and conditions of <u>Section</u> <u>4</u>. The provisions of this <u>Section</u> <u>15</u> shall in no respect limit the obligations and liabilities of the Borrowers or any Guarantor to the Administrative Agent and the Secured Parties, and each Guarantor shall remain liable to the Administrative Agent and the Secured Parties for the full amount guaranteed by such Guarantor hereunder. Each Guarantor agrees to contribute, to the maximum extent permitted by Law, such amounts to each other Guarantor so as to maximize the aggregate amount paid to the Secured Parties under or in respect of the Loan Documents.

SECTION 16. <u>Execution in Counterparts</u>.

This Guaranty and each amendment, waiver and consent with respect hereto may be executed in any number of counterparts and by different parties thereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Guaranty and each amendment, waiver and consent with respect hereto by telecopier, .pdf or other electronic transmission shall be effective as delivery of an original executed counterpart thereof. The words "execution," "execute," "signed," "signature," and words of like import in or related to this Guaranty and the transactions contemplated hereby, shall be deemed to include electronic signature, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

SECTION 17. <u>Governing Law; Jurisdiction; Waiver of Jury Trial, Etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Section 10.15 (*Governing Law; Jurisdiction; Etc.*), Section 10.16 (*Service of Process*) and Section 10.17 (*Waiver of Right to Trial by Jury*) of the Credit Agreement are hereby incorporated by reference, *mutatis mutandis*.

SECTION 18. <u>Severability</u>.

If any provision of this Guaranty is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Guaranty shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

SECTION 19. <u>Headings</u>.

Article and Section headings and the **Table of Contents** used herein are for convenience of reference only, are not part of this Guaranty and are not to affect the construction of, or to be taken into consideration in interpreting, this Guaranty.

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SECTION 20. <u>Guaranty Enforceable by Administrative Agent or Collateral Agent</u>.

Notwithstanding anything to the contrary contained elsewhere in this Guaranty, the Secured Parties agree (by their acceptance of the benefits of this Guaranty) that this Guaranty may be enforced only by the action of the Administrative Agent or the Collateral Agent, in each case acting upon the instructions of the Required Lenders and that no other Secured Party shall have any right individually to seek to enforce or to enforce this Guaranty or to realize upon the security to be granted by the Collateral Documents, it being understood and agreed that such rights and remedies may be exercised by the Administrative Agent or the Collateral Agent. The Secured Parties further agree that this Guaranty may not be enforced against any director, officer, employee, partner, member or stockholder of any Guarantor.

SECTION 21. <u>Keepwell</u>. Each Qualified ECP Guarantor (as defined below) hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each other Loan Party to honor all of its obligations under this Guaranty in respect of Swap Obligations (*provided*, *however*, that the Qualified ECP Guarantor shall only be liable under this <u>Section</u> <u>21</u> for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this <u>Section</u> <u>21</u>, or otherwise under this Guaranty, as it relates to the Guarantors, voidable under applicable Law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations of the Qualified ECP Guarantor under this <u>Section</u> <u>21</u> shall remain in full force and effect until the termination of this Guaranty in accordance with <u>Section</u> <u>12</u>. The Qualified ECP Guarantor intends that this <u>Section</u> <u>21</u> constitute, and this <u>Section</u> <u>21</u> shall be deemed to constitute, a "keepwell, support, or other agreement" for the benefit of each other Loan Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act. "Qualified ECP Guarantor" means, in respect of any Swap Obligations, each Loan Party that has total assets exceeding $10,000,000 at the time the relevant Guarantee or grant of the relevant security interest becomes effective with respect to such Swap Obligation or such other person as constitutes an "eligible contract participant" under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another person to qualify as an "eligible contract participant" at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

[Remainder of page left intentionally blank]

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IN WITNESS WHEREOF, each Guarantor and the Administrative Agent have caused this Guaranty to be duly executed and delivered as of the date first written above.

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| | |
|:---|:---|
| OVATION PARENT, INC.,<br> a Delaware corporation<br> as a Guarantor | OVATION PARENT, INC.,<br> a Delaware corporation<br> as a Guarantor |
| By: | /s/ Joseph Salsbury |
| Name: Joseph Salsbury | Name: Joseph Salsbury |
| Title: Chief Financial Officer and Secretary | Title: Chief Financial Officer and Secretary |
| HAWKEYE MIDCO, LLC,<br> as a Guarantor | HAWKEYE MIDCO, LLC,<br> as a Guarantor |
| By: | /s/ Kristin Gawlik |
| Name: Kristin Gawlik | Name: Kristin Gawlik |
| Title: Chief Financial Officer, Treasurer and<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Secretary | Title: Chief Financial Officer, Treasurer and<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Secretary |
| CONNECTOR INTERMEDIATE HOLDCO, LLC,<br> as a Guarantor | CONNECTOR INTERMEDIATE HOLDCO, LLC,<br> as a Guarantor |
| By: | /s/ Kristin Gawlik |
| Name: Kristin Gawlik | Name: Kristin Gawlik |
| Title: Chief Financial Officer | Title: Chief Financial Officer |
| SI INTERMEDIATE HOLDING, INC.,<br> a Delaware corporation<br> as a Guarantor | SI INTERMEDIATE HOLDING, INC.,<br> a Delaware corporation<br> as a Guarantor |
| By: | /s/ Laura Siegal |
| Name: Laura Siegal | Name: Laura Siegal |
| Title: Chief Financial Officer and Secretary | Title: Chief Financial Officer and Secretary |

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[Signature Page to Holdings Guaranty]

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| | |
|:---|:---|
| CITIBANK, N.A.,<br> as Administrative Agent | CITIBANK, N.A.,<br> as Administrative Agent |
| By: | /s/ Savino Figliuolo |
| Name: Savino Figliuolo | Name: Savino Figliuolo |
| Title: Authorized Signer | Title: Authorized Signer |

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[Signature Page to Holdings Guaranty]

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**Exhibit A to the** 

**Holdings Guaranty** 

**FORM OF GUARANTY SUPPLEMENT**

## Exhibit 10.5

**Exhibit 10.5** 

**REGISTRATION RIGHTS AGREEMENT** 

This Registration Rights Agreement is entered into as of [•], 2026 by and among Arxis, Inc., a Delaware corporation (the "<u>Company</u>"), and each of the Investors (as defined below) from time to time party hereto.

WHEREAS, in connection with the Company's initial public offering of its Class A Common Stock (as defined below), the Company desires to grant certain registration rights to the Investors.

NOW, THEREFORE, the parties agree as follows:

ARTICLE 1

INTRODUCTORY MATTERS

Section 1.01. *Defined Terms*. In addition to the terms defined elsewhere herein, the following terms have the following meanings when used herein:

"<u>Affiliate</u>," with respect to a specified Person, means any Person that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such specified Person.

"<u>Agreement</u>" means this Registration Rights Agreement, as the same may be amended, supplemented, restated or otherwise modified from time to time in accordance with the terms hereof.

"<u>Board of Directors</u>" means the Company's board of directors.

"<u>Business Day</u>" means a day other than a Saturday, Sunday, federal or New York State holiday or other day on which commercial banks in New York City are authorized or required by law to close.

"<u>Class</u> <u>A Common Stock</u>" means the Company's Class A common stock, par value $0.01 per share.

"<u>Closing Date</u>" means the initial closing date of the Company's initial public offering of its Class A Common Stock.

"<u>Company</u>" has the meaning set forth in the Preamble.

"<u>control</u>" (including the terms "<u>controlling</u>," "<u>controlled by</u>" and "<u>under common control with</u>"), with respect to the relationship between or among two or more Persons, means the possession, directly or indirectly through one or more intermediaries, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

"<u>FINRA</u>" means the Financial Industry Regulatory Authority, Inc.

"<u>Investors</u>" means the Sponsor Investors and each Person that executes a Joinder Agreement, in each case, that is a holder of Registrable Securities.

"<u>Joinder Agreement</u>" has the meaning set forth in Section 5.03.

"<u>NewCo</u>" has the meaning set forth in Section 3.03.

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"<u>Person</u>" means a natural person, corporation, limited liability company, partnership, joint venture, trust, unincorporated association or other legal entity.

"<u>Registrable Securities</u>" means (a) all shares of Class A Common Stock held by the Investors from time to time, (b) all shares of Class A Common Stock issuable to the Investors from time to time upon the conversion, exercise or exchange or of other securities and (c) all shares of Class A Common Stock issued or issuable as a dividend or distribution with respect to, or in exchange for or in replacement of any of the securities described in clauses (a) or (b) or other securities held by the Investors from time to time; *provided* that shares of Class A Common Stock will cease to be Registrable Securities when (x) such shares of Class A Common Stock have been disposed of pursuant to an effective registration statement or Rule 144 under the Securities Act, (y) such shares of Class A Common Stock can be immediately sold pursuant to Rule 144 under the Securities Act without any volume or manner-of-sale restrictions thereunder or (z) such shares of Class A Common Stock (or securities convertible into or exercisable or exchangeable for Class A Common Stock) cease to be outstanding.

"<u>Registration Expenses</u>" means any and all expenses incurred in connection with the performance of or compliance with this Agreement, including: (a) all SEC and FINRA registration and filing fees, including, if applicable, the fees and expenses of any "qualified independent underwriter," as such term is defined in Rule 5121 of FINRA, and of its counsel; (b) all fees and expenses of complying with the state securities or "blue sky" laws, including the fees and expenses of counsel for the underwriters in connection with the qualification of Registrable Securities under such laws; (c) all printing, duplicating, word processing, messenger, telephone, facsimile and delivery expenses; (d) all fees and expenses incurred in connection with the listing of the Registrable Securities on the stock exchange on which the Class A Common Stock is then listed; (e) the fees and expenses of the Company's counsel and independent public accountants, including the expenses of any special audits and/or "cold comfort" letters required by or incident to such performance and compliance; (f) the fees and expenses of underwriters customarily paid by the issuers or sellers of securities, but excluding underwriting discounts and commissions and transfer taxes, if any; (g) the fees and expenses of the Investors' counsel in connection with any registration or shelf takedown; *provided* that fees and expenses pursuant to this clause shall be limited to one outside counsel (in addition to any local counsel) for the Investors per registration or shelf takedown; (h) the costs and expenses of the Company relating to investor presentations or any road show (as defined below) undertaken in connection with the marketing of the Registrable Securities (including the reasonable out-of-pocket expenses of the Investors and the underwriters); and (i) any other fees and expenses customarily paid by the issuers of securities.

"<u>Requesting Holder</u>" means one or more Investors that demand a non-shelf registered offering, a shelf registration or a shelf takedown, in each case, with respect to its Registrable Securities pursuant to this Agreement.

"<u>SEC</u>" means the U.S. Securities and Exchange Commission or any successor agency.

"<u>Securities Act</u>" means the U.S. Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

"<u>Sponsor Investors</u>" means the entities listed on the signature pages hereto under the heading "Sponsor Investors."

"<u>Transfer</u>" (the terms "<u>Transferor</u>**,**" "<u>Transferee</u>" and "<u>Transferred</u>") means, with respect to any security, directly or indirectly, to sell, contract to sell, give, assign, hypothecate, pledge, encumber, grant a security interest in, offer, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of any economic, voting or other rights in or to such security. When used as a noun, "<u>Transfer</u>" shall have such correlative meaning as the context may require.

"<u>WKSI</u>" means a well-known seasoned issuer, as defined in the Rule 405 under the Securities Act.

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Section 1.02. *Construction*. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction will be applied against any party. Unless the context otherwise requires: (a) "or" is disjunctive but not exclusive, (b) words in the singular include the plural, and in the plural include the singular, (c) any pronoun used in this Agreement will include the corresponding masculine, feminine or neuter forms, (d) the words "hereof," "herein" and "hereunder" and words of similar import when used in this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement and (e) Section or Article references are to this Agreement unless otherwise specified.

ARTICLE 2

REGISTRATION RIGHTS

Section 2.01. *Demand Rights*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Section 2.04, upon the demand of a Requesting Holder made at any time and from time to time, the Company will facilitate in the manner described in this Article 2 a non-shelf registered offering of the Registrable Securities requested by such Requesting Holder to be included in such offering; *provided* that the Company shall not be required to effect more than two such non-shelf registered offerings within any 12-month period. Subject to Section 2.04, such non-shelf registered offering may, at the Company's option, include shares of Class A Common Stock to be offered and sold by the Company for its own account and will also include Registrable Securities to be offered and sold by Investors that exercise their related piggyback rights in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to Section 2.04, upon the demand of a Requesting Holder made at any time and from time to time when the Company is eligible to register the offer and sale of Registrable Securities in a secondary offering on a delayed or continuous basis in accordance with Rule 415 under the Securities Act, the Company will facilitate in the manner described in this Article 2 a shelf registration of the Registrable Securities requested by such Requesting Holder. The registration statement relating to such shelf registration may, at the Company's option, include securities to be offered and sold by the Company for its own account and will also include Registrable Securities to be offered and sold by Investors that exercise their related piggyback rights in accordance with this Agreement. If, at the time of the filing of such registration statement, the Company is a WKSI, such registration statement will, at the request of such Requesting Holder, cover an unspecified number of Registrable Securities to be offered and sold by the Investors and, if the Company so elects, the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to Section 2.04, upon the demand of a Requesting Holder made at any time and from time to time, the Company will facilitate in the manner described in this Article 2 a "takedown" of the Registrable Securities requested by such Requesting Holder off of an effective shelf registration statement; *provided* that the Company shall not be required to effect more than six underwritten takedowns within any 12-month period. Subject to Section 2.04, such takedown may, at the Company's option, include shares of Class A Common Stock to be offered and sold by the Company for its own account and will also include Registrable Securities to be offered and sold by Investors that exercise their related piggyback rights in accordance with this Agreement.

Section 2.02. *Piggyback Rights*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with any non-shelf registered offering of Registrable Securities (whether pursuant to the exercise of demand rights or at the initiative of the Company), each Investor may, in accordance with this Agreement, exercise piggyback rights to have included in such offering Registrable Securities held by them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with any shelf registration of Registrable Securities (whether pursuant to the exercise of demand rights or at the initiative of the Company), each Investor may, in accordance with this Agreement, exercise piggyback rights to have included in such shelf registration Registrable Securities held by them.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with any shelf takedown of Registrable Securities (whether pursuant to the exercise of demand rights or at the initiative of the Company) in connection with which a "lock-up" arrangement will be imposed on the Company or the Investors not participating in such takedown, each Investor may, in accordance with this Agreement, exercise piggyback rights to have included in such takedown Registrable Securities held by them that are registered on an effective shelf registration statement.

Section 2.03. *Effective Registration*. The Company shall, with respect to each registration statement relating to the Registrable Securities, use its reasonable best efforts to cause such registration statement to remain effective for not less than 180 consecutive days or such shorter period as shall terminate when all Registrable Securities covered by such registration statement have been sold or withdrawn or, if such registration statement is a shelf registration on Form S-1, until such shelf registration statement is amended or replaced by a shelf registration statement on Form S-3 or such shorter period as shall terminate when all Registrable Securities covered by such registration statement have been sold or withdrawn or, if such registration statement relates to an underwritten offering, such longer period as, in the opinion of counsel for the underwriters of such offering, a prospectus is required by law to be delivered in connection with sales of Registrable Securities by an underwriter or dealer in such offering.

Section 2.04. *Limitations on Demand and Piggyback Rights*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any demand for the filing of a registration statement, a non-shelf registered offering or a shelf takedown will be subject to the constraints of any applicable "lock-up" arrangements, and such demand must be deferred until such "lock-up" arrangements no longer apply. If a demand has been made for a non-shelf registered offering or for a shelf takedown, no further demands may be made so long as the related offering is still being pursued. Notwithstanding anything in this Agreement to the contrary, the Investors will not have piggyback or other registration rights with respect to registered primary offerings by the Company (i) covered by a Form S-8 registration statement or a successor form applicable to employee benefit-related offers and sales, (ii) where the securities are not being sold for cash or (iii) where the offering is a bona fide offering of securities other than Class A Common Stock, even if such securities are convertible into or exchangeable or exercisable for Class A Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company may postpone the filing of a demanded registration statement, suspend the effectiveness of any registration statement or defer facilitating a non-shelf registered offering or a shelf takedown, in each case, for a reasonable "blackout period" not in excess of the applicable limits specified below if the Board of Directors determines that such registration, offering or takedown could materially interfere with a bona fide business or financing transaction of the Company or is reasonably likely to require premature disclosure of information, the premature disclosure of which could materially and adversely affect the Company. The blackout period will end upon the earlier to occur of (i) in the case of a bona fide business or financing transaction, a date not later than 90 days from the date such deferral commenced and (ii) in the case of disclosure of non-public information, the earlier to occur of (x) the filing by the Company of its next succeeding Form 10-K or Form 10-Q or (y) the date upon which such information otherwise is or becomes public knowledge.

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Section 2.05. *Notifications Regarding Non-Shelf Registered Offerings, Shelf Registrations and Shelf Takedowns*. In order for a Requesting Holder to exercise its right to demand that a non-shelf registered offering, shelf registration or shelf takedown occur, such Requesting Holder must so notify the Company in writing indicating the number of Registrable Securities sought to be included in such offering, registration or takedown and the proposed plan of distribution. The Company will keep the Investors contemporaneously apprised of all pertinent aspects of its pursuit of any non-shelf registered offering, shelf registration or shelf takedown of Registrable Securities (whether pursuant to the exercise of demand rights or at the initiative of the Company) with respect to which a piggyback opportunity is available in order that the Investors may have a reasonable opportunity to exercise their related piggyback rights. Without limiting the Company's obligation as described in the preceding sentence, having a reasonable opportunity requires that the Investors be notified by the Company (i) in the case of a non-shelf registered offering, no later than 5:00 p.m., New York City time, on the fifth trading day prior to the date on which the registration statement relating to such offering is intended to be filed, (ii) in the case of a shelf registration, no later than 5:00 p.m., New York City time, on the third trading day prior to the date on which the registration statement relating to such offering is intended to be filed and (iii) in the case of a shelf takedown, no later than 5:00 p.m., New York City time, on the earlier of (A) if applicable, the second trading day prior to the date on which the preliminary prospectus or prospectus supplement intended to be used in connection with the pre-pricing marketing efforts for such takedown is filed or used and (B) the second trading day prior to the date on which the pricing of such takedown occurs. Each Requesting Holder and the Company agrees to use its good faith efforts to provide advance notice as soon as reasonably practicable to the Investors of such first Requesting Holder's or the Company's intention to conduct a non-shelf registered offering, shelf registration or shelf takedown of Registrable Securities; *provided*, *however*, that none of the Requesting Holders or the Company shall be obligated hereby to provide any such advance notice, and, if provided, such advance notice shall not be binding in any respect. Subject to any required public disclosure and subject to applicable legal requirements, the parties hereto will maintain the confidentiality of these notifications and related discussions.

Section 2.06. *Notifications Regarding Exercise of Piggyback Rights*. Any Investor wishing to exercise its piggyback rights with respect to a non-shelf registered offering, shelf registration or shelf takedown must notify the Company and the other Investors of the number of Registrable Securities it seeks to have included in such offering, registration or takedown, as the case may be. Such notice must be given as soon as practicable, but (i) in the case of a non-shelf registered offering, no later than 5:00 p.m., New York City time, on the third trading day prior to the date on which the registration statement relating to such offering is intended to be filed, (ii) in the case of a shelf registration, no later than 5:00 p.m., New York City time, on the second trading day prior to the date on which the registration statement relating to such offering is intended to be filed and (iii) in the case of an shelf takedown, no later than 5:00 p.m., New York City time, on the earlier of (A) if applicable, the trading day prior to the date on which the preliminary prospectus or prospectus supplement intended to be used in connection with the pre-pricing marketing efforts for such takedown is filed or used and (B) the trading day prior to the date on which the pricing of such takedown occurs. Subject to any required public disclosure and subject to applicable legal requirements, the parties hereto will maintain the confidentiality of these notifications and related discussions.

Section 2.07. *Plan of Distribution, Underwriters and Counsel*. If a majority of the shares of Class A Common Stock proposed to be sold in a non-shelf registered offering or shelf takedown that includes Registrable Securities is being sold by the Company for its own account (for clarity, excluding shares to be sold by the Company for its own account to the extent the proceeds from such sale will be used to purchase Registrable Securities from the Investors), the Company will be entitled to determine the plan of distribution and select the managing underwriters and any provider of capital markets advisory services for such offering, and the Investors with a majority of the Registrable Securities proposed to be sold in such offering will be entitled to select counsel for the selling Investors (which may be the same as counsel for the Company). Otherwise, the applicable Requesting Holder (or if there is no Requesting Holder, the Investors with a majority of the Registrable Securities proposed to be sold in such offering) will be entitled to determine the plan of distribution and select the managing underwriters and any provider of capital markets advisory services (which may include affiliates of a Requesting Holder) and will also be entitled to select counsel for the selling Investors (which may be the same as counsel for the Company). In the case of a shelf registration of Registrable Securities, the plan of distribution will provide as much flexibility as is reasonably possible, including with respect to resales by transferee Investors.

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Section 2.08. *Cutbacks*. If the managing underwriters advise the Company and the selling Investors that, in their opinion, the number of shares of Class A Common Stock requested to be included in a non-shelf registered offering or shelf takedown exceeds the amount that can be sold in such offering without adversely affecting the distribution of the shares being offered, such offering will include only the number of shares that the managing underwriters advise can be sold in such offering. Except in the case of a non-shelf registered offering or shelf takedown demanded by a Requesting Holder, if the Company is selling shares for its own account in such offering (for clarity, excluding shares to be sold by the Company for its own account to the extent the proceeds from such sale will be used to purchase Registrable Securities from the Investors), the Company will have first priority and to the extent of any remaining capacity, the selling Investors will be subject to cutback pro rata based on the number of Registrable Securities initially requested by them to be included in such offering. In the case of a non-shelf registered offering or shelf takedown demanded by a Requesting Holder, the Requesting Holder will have first priority and, to the extent there is any remaining capacity, the other selling Investors shall have priority over any other Person participating in the offering (including the Company) and shall be subject to cutback pro rata based on the number of Registrable Securities initially requested by each other selling Investor to be included in such offering. To the extent that there is any remaining capacity after such Requesting Holder and the other selling Investors have been included, any other Person participating in the offering (including the Company) will be included and will be subject to cutback pro rata based on the number of shares initially requested by them to be included in such offering. Selling equityholders other than the Investors will be included in a non-shelf registered offering or shelf takedown only with the consent of the applicable Requesting Holder (in the event of a non-shelf registered offering or shelf takedown demanded by a Requesting Holder) or the Company (in the event of any other offering).

Section 2.09. *Withdrawals*. Even if Registrable Securities held by an Investor have been part of a non-shelf registered offering or a shelf takedown, such Investor may, no later than the time at which the public offering price and underwriters' discount are determined with the managing underwriters, decline to sell all or any portion of its Registrable Securities in such offering.

Section 2.10. *Lockups*. In connection with any underwritten offering of Registrable Securities, to the extent required by the managing underwriters for such underwritten offering, (a) the Company shall agree to be bound by customary "lock-up" restrictions contained in the underwriting agreement for such offering and shall cause its directors and officers to enter into lock-up agreements that contain restrictions that are no less restrictive than those contained in the lock-up agreements executed by the Investors and (b) each Investor shall agree to be bound by customary "lock-up" restrictions contained in lock-up agreements that are agreed by (i) in the case of a non-shelf registered offering or shelf takedown demanded by a Requesting Holder, the Requesting Holder and (ii) otherwise, the holders of a majority of the shares proposed to be sold in such offering; *provided* that (x) the lock-up restrictions shall not be longer than 90 days following the execution of the underwriting agreement for such offering and (y) the Investors' lock-up restrictions shall not be more restrictive than those of the Company's directors and officers. Pending execution and delivery of the relevant lockup agreement, upon being notified of a proposed or requested underwritten offering with respect to which the piggyback rights described in this Agreement will apply, the Investors shall immediately be bound by the lock-up provisions set forth in the form of lock-up agreement attached as an exhibit to the underwriting agreement for the Company's initial public offering of its Class A Common Stock as though they were then applicable for so long as the proposed or requested offering is being pursued.

Section 2.11. *Expenses*. All Registration Expenses incurred in connection with any non-shelf registered offering, shelf registration and shelf takedown of the Registrable Securities will be borne by the Company; *provided*, *however*, underwriters', brokers' and dealers' discounts and commissions applicable to Registrable Securities sold for the account of an Investor will be borne by such Investor.

Section 2.12. *Facilitating Registrations and Offerings*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Company becomes obligated under this Agreement to facilitate a registration or offering of Registrable Securities on behalf of the Investors, the Company will do so with the same degree of care and dispatch as would reasonably be expected in the case of a registration and offering by the Company of securities for its own account. Without limiting this general obligation, the Company will fulfill its specific obligations as described in this Section 2.12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with each registration statement that is demanded by a Requesting Holder in accordance with this Article 2 or as to which piggyback rights otherwise apply, the Company will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) prepare and file with the SEC a registration statement (or registration statements) covering the applicable Registrable Securities, (B) file amendments thereto with the SEC as may be required, (C) seek the effectiveness thereof and (D) file with the SEC prospectuses and prospectus supplements as may be required, all in consultation with the selling Investors and as reasonably necessary in order to permit the offer and sale of the such Registrable Securities in accordance with the applicable plan of distribution;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) within a reasonable time prior to the filing of any registration statement or any amendment thereto, any prospectus or amendment or supplement thereto or any free writing prospectus, provide copies of such documents to the selling Investors and to the underwriters, if any, and to their respective counsel; fairly consider such reasonable changes in any such documents prior to or after the filing thereof as counsel to the selling Investors or such underwriters may request; and make representatives of the Company as shall be reasonably requested by the selling Investors or such underwriters available for discussion of such documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if requested by the selling Investors, within a reasonable time prior to the filing of any document which is to be incorporated by reference into a registration statement or a prospectus, provide copies of such document to the selling Investors and to the underwriters, if any, and to their respective counsel; fairly consider such reasonable changes in such documents prior to or after the filing thereof as counsel to the selling Investors or such underwriters may request; and make representatives of the Company as shall be reasonably requested by the selling Investors or such underwriters available for discussion of such documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) use all reasonable efforts to cause each registration statement and any amendment thereto and the related prospectus and any amendment or supplement thereto, as of the effective date of such registration statement, amendment or supplement and during the distribution of the registered Registrable Securities (A) to comply in all material respects with the requirements of the Securities Act and (B) not to contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) notify the selling Investors and the underwriters, if any, and their respective counsel promptly (A) when any registration statement or any amendment thereto, any prospectus or any amendment or supplement thereto or any free writing prospectus has been filed and, if applicable, has been declared effective by the SEC, (B) of any request by the SEC or any other federal or state governmental authority for amendments or supplements to a registration statement or related prospectus or for additional information, (C) of the issuance by the SEC or any state securities authority of any stop order, injunction or other order or requirement suspending the effectiveness of a registration statement or the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation of any proceedings for that purpose, (D) if, between the effective date of a registration statement and the expiration or earlier closing of any sale of securities covered thereby pursuant to any over-allotment option under any underwriting, placement or purchase agreement to which the Company is a party, the representations and warranties of the Company contained in such agreement cease to be true and correct in all material respects, and (E) of the happening of any event during the period a registration statement is effective as a result of which such registration statement or the related prospectus contains any untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) furnish to the selling Investors and the underwriters, if any, and to their respective counsel copies of any correspondence with the SEC or any state securities authority relating to a registration statement or the related prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) otherwise use all reasonable efforts to comply with all applicable rules and regulations of the SEC, including making available to its securityholders an earnings statement covering at least 12 months which shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar provision then in force);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) use all reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of a registration statement at the earliest possible time; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) provide and cause to be maintained a transfer agent and registrar for all Registrable Securities covered by a registration statement from and after a date not later than the effective date of such registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with any non-shelf registered offering or shelf takedown that is demanded by a Requesting Holder or as to which piggyback rights otherwise apply, the Company will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) cooperate with the selling Investors and the managing underwriters, if any, to facilitate the timely preparation and delivery of certificates representing the Registrable Securities to be sold and not bearing any restrictive legends; and enable such Registrable Securities to be in such denominations (consistent with the provisions of the governing documents thereof) and registered in such names as the selling Investors or the managing underwriters, if any, may reasonably request at least five days prior to any sale of such Registrable Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) furnish the selling Investors and the underwriters, if any, without charge, as many copies of the applicable prospectus, including each preliminary prospectus, and any amendment or supplement thereto and such other documents as such selling Investors or underwriters may reasonably request in order to facilitate the public sale or other disposition of the Registrable Securities; the Company hereby consents to the use of the prospectus, including each preliminary prospectus, by each such selling Investor and underwriter in connection with the offering and sale of the Registrable Securities covered by the prospectus or the preliminary prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) use all reasonable efforts to register or qualify the Registrable Securities being offered and sold, no later than the time the applicable registration statement becomes effective, under all applicable state securities or "blue sky" laws of such jurisdictions as the selling Investors and the underwriters, if any, shall reasonably request; (B) use all reasonable efforts to keep each such registration or qualification effective during the period such registration statement is required to be kept effective; (C) do any and all other acts and things which may be reasonably necessary or advisable to enable the selling Investors and the underwriters, if any, to consummate the disposition in each such jurisdiction of such Registrable Securities owned by such selling Investor; *provided*, *however*, that the Company shall not be obligated to qualify as a foreign corporation or as a dealer in securities in any jurisdiction in which it is not so qualified or to consent to be subject to general service of process (other than service of process in connection with such registration or qualification or any sale of Registrable Securities in connection therewith) in any such jurisdiction; and (D) use all reasonable efforts to cause the Registrable Securities being offered and sold, no later than the date on which the pricing of the relevant offering is expected to occur, to be registered with or approved by such other governmental agencies or authorities within the United States, except as may be required solely as a consequence of the nature of the business of any selling Investor, in which case the Company will cooperate in all reasonable respects with the filing of the applicable registration statement and the granting of such approvals, as may be necessary to enable any selling Investor or the underwriters, if any, to consummate the disposition of such Registrable Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) cause all Registrable Securities being sold to be qualified for inclusion in or listed on any securities exchange on which the shares of Class A Common Stock are then so qualified or listed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) cooperate and assist in any filings required to be made with FINRA and in the performance of any due diligence investigation by any underwriter in an underwritten offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) use all reasonable efforts to facilitate the distribution and sale of any Registrable Securities to be offered pursuant to this Agreement, including without limitation by making road show presentations, holding meetings with and making calls to potential investors and taking such other actions as shall be requested by the selling Investors or the managing underwriters, if any;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) in the case of an offering that includes a provider of capital markets advisory services, enter into and perform its obligations under customary agreements (including an advisory services agreement and an indemnification agreement in customary form);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) enter into customary agreements (including, in the case of an underwritten offering, one or more underwriting agreements in customary form that include customary provisions with respect to indemnification and contribution) and take all other customary and appropriate actions in order to expedite or facilitate the disposition of such Registrable Securities and in connection therewith:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) make such representations and warranties to the underwriters, if any, in form, substance and scope as are customarily made by issuers to underwriters in similar underwritten offerings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) obtain opinions and negative assurance letters and updates thereof from the Company's counsel addressed to the underwriters, if any, which opinions and letters shall be customary in form and shall cover matters of the type customarily covered in opinions and negative assurance letters to underwriters in connection with underwritten offerings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) obtain "cold comfort" letters and updates thereof from the Company's independent certified public accountants addressed to the underwriters, if any, which letters shall be customary in form and shall cover matters of the type customarily covered in "cold comfort" letters to underwriters in connection with underwritten offerings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) deliver such documents and certificates as the managing underwriters, if any, shall reasonably request to evidence the continued validity of the representations and warranties made in accordance with Section 2.12(c)(viii)(A) above and to evidence compliance with any customary conditions contained in the underwriting agreement or other agreement entered into by the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) use all reasonable efforts to facilitate the settlement of the Registrable Securities to be sold pursuant to this Article 2, including through the facilities of DTC.

The above shall be done at such times as customarily occur in similar registered offerings or shelf takedowns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In connection with each registration and offering of Registrable Securities to be sold by selling Investors, the Company will, in accordance with customary practice, make available for inspection by representatives of the selling Investors and the underwriters, if any, and their respective counsel all relevant financial and other records, pertinent corporate (or similar) documents and properties of the Company and cause appropriate officers, managers, employees, outside counsel and accountants of the Company to supply all information reasonably requested by the underwriters, if any, and their counsel in connection with their due diligence exercise, including through in-person meetings, but subject to customary privilege constraints.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each Investor that holds Registrable Securities covered by any registration statement will furnish to the Company such information regarding itself as is required to be included in the registration statement or prospectus, the ownership of the Company's securities by such Investor and the proposed distribution by such Investor of such Registrable Securities as the Company may from time to time reasonably request.

Section 2.13. *Underwritten Registrations*. No holder of Registrable Securities may participate in any registration or offering hereunder unless such holder (a) agrees to sell such holder's Registrable Securities on the basis provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements and (b) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents required under the terms of such underwriting arrangements.

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ARTICLE 3

ADDITIONAL COVENANTS

Section 3.01. *Rule 144*. With a view to making available to the Investors the benefits of Rule 144 under the Securities Act, the Company shall (a) make and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act until the earlier of (i) six months after such date as all of the Registrable Securities may be sold without restriction by the holders thereof pursuant to Rule 144 or (ii) such date as there are no longer Registrable Securities and (b) file with the SEC in a timely manner the reports and other documents required to be filed by it under the Exchange Act. Upon the request of any Investor, the Company shall deliver to such Investor a written statement as to whether it has complied with the reporting requirements of the Exchange Act.

Section 3.02. *No Inconsistent Agreements*. The Company has not and will not, enter into any agreement with respect to the Company's securities that is inconsistent with the rights granted to the holders of Registrable Securities in this Article 2 or otherwise conflicts with the provisions hereof. The Company shall not enter into any agreement with any holder or prospective holder of any securities of the Company giving such holder or prospective holder any registration rights the terms of which are equivalent to or more favorable than the registration rights granted to the Investors hereunder, or which would reduce the amount of Registrable Securities the Investors can include in any registration statement filed or offering effected pursuant to Article 2 hereof, unless the Company shall have received the prior written consent of the Investors holding a majority of the Registrable Securities.

Section 3.03. *Spin-Offs or Split-Offs*. In the event that the Company effects the separation of any portion of its business into one or more entities (each, a "<u>NewCo</u>"), whether existing or newly formed, including without limitation by way of spin-off, split-off, carve-out, demerger, recapitalization, reorganization or similar transaction, and any Investor will receive equity interests in any such NewCo as part of such separation, the Company shall cause any such NewCo to enter into a registration rights agreement with the Investors that provides the Investors with rights vis-à -vis such NewCo that are substantially identical to those set forth in this Agreement.

ARTICLE 4

INDEMNIFICATION

Section 4.01. *Indemnification by the Company*. In the event of any registration under the Securities Act by any registration statement pursuant to rights granted in this Agreement of Registrable Securities, the Company will indemnify and hold harmless each Investor, its directors, officers and affiliates and each Person, if any, who controls such Investor within the meaning of the Securities Act against any losses, claims, damages, expenses, judgments and liabilities (including, without limitation, legal fees and other expenses incurred in connection with any suit, action or proceeding or any claim asserted, as such fees and expenses are incurred), joint or several, that arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the registration statement or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary in order to make the statements therein, not misleading, or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, prospectus (or any amendment or supplement thereto), any issuer free writing prospectus or any road show as defined in Rule 433(h) under the Securities Act (a "<u>road show</u>"), or caused by any omission or alleged omission to state therein a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading; *provided*, *however*, that the Company will not be liable in any such case to the extent that any such loss, claim, damage, expense, judgment or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with information furnished to the Company through a written instrument duly executed by an Investor specifically for use in the registration statement, preliminary prospectus, prospectus (or amendment or supplement thereto), issuer free writing prospectus or road show.

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Section 4.02. *Indemnification by the Investors*. In the event of any registration under the Securities Act by any registration statement pursuant to rights granted in this Agreement of Registrable Securities, each Investor will, severally and not jointly, indemnify and hold harmless (in the same manner and to the same extent as set forth in Section 4.01) the Company, its directors, its officers who signed the registration statement and each person, if any, who controls the Company within the meaning of the Securities Act, but only with respect to any losses, claims, damages, expenses, judgments and liabilities that arise out of or are based upon any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with information furnished to the Company through a written instrument duly executed by such Investor specifically for use in the registration statement, preliminary prospectus, prospectus (or amendment or supplement thereto), issuer free writing prospectus or road show; *provided*, *however*, the liability of each Investor pursuant to this Section 4.02 shall not exceed the proceeds received by such Investor upon the sale of the Registrable Securities included in such registration statement, preliminary prospectus, prospectus (or amendment or supplement thereto), issuer free writing prospectus or road show giving rise to such indemnification obligation.

Section 4.03. *Notice and Procedures*. Promptly after receipt by an indemnified party of notice of the commencement of any action involving a claim referred to in the preceding subsections of this Article 4, the indemnified party will, if a resulting claim is to be made or may be made against any indemnifying party, give written notice to the indemnifying party of the commencement of the action. The failure of any indemnified party to give notice shall not relieve the indemnifying party of its obligations in this Article 4, except to the extent that the indemnifying party is actually prejudiced by the failure to give notice. If any such action is brought against an indemnified party, the indemnifying party will be entitled to participate in and to assume the defense of the action with counsel reasonably satisfactory to the indemnified party, and after notice from the indemnifying party to such indemnified party of its election to assume defense of the action, the indemnifying party will not be liable to such indemnified party for any legal or other expenses incurred by the latter in connection with the action's defense. An indemnified party shall have the right to employ separate counsel in any action or proceeding and participate in the defense thereof, but the fees and expenses of such counsel shall be at such indemnified party's expense, unless (i) the employment of such counsel has been specifically authorized in writing by the indemnifying party, which authorization shall not be unreasonably withheld, (ii) the indemnifying party has not assumed the defense and employed counsel reasonably satisfactory to the indemnified party within 30 days after notice of any such action or proceeding, or (iii) the named parties to any such action or proceeding (including any impleaded parties) include the indemnified party and the indemnifying party and the indemnified party shall have been advised by such counsel that there may be one or more legal defenses available to the indemnified party that are different from or additional to those available to the indemnifying party (in which case the indemnifying party shall not have the right to assume the defense of such action or proceeding on behalf of the indemnified party), it being understood, however, that the indemnifying party shall not, in connection with any one such action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than one separate firm of attorneys (in addition to all local counsel which is necessary, in the good faith opinion of both counsel for the indemnifying party and counsel for the indemnified party in order to adequately represent the indemnified parties) for the indemnified party and that all such fees and expenses shall be reimbursed as they are incurred upon written request and presentation of invoices. Whether or not a defense is assumed by the indemnifying party, the indemnifying party will not be subject to any liability for any settlement made without its consent (but such consent will not be unreasonably withheld). No indemnifying party will consent to entry of any judgment or enter into any settlement which (A) does not include as an unconditional term the giving by the claimant or plaintiff, to the indemnified party, of a release from all liability in respect of such claim or litigation or (B) involves the imposition of equitable remedies or the imposition of any non-financial obligations on the indemnified party.

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Section 4.04. *Contribution*. If the indemnification required by this Article 4 from the indemnifying party is unavailable to or insufficient to hold harmless an indemnified party in respect of any indemnifiable losses, claims, damages, liabilities or expenses, then the indemnifying party shall contribute to the amount paid or payable by the indemnified party as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect (i) the relative benefit of the indemnifying and indemnified parties and (ii) if the allocation in clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect the relative benefit referred to in clause (i) and also the relative fault of the indemnified and indemnifying parties, in connection with the actions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative benefits received by a party shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by it bear to the total amounts (including, in the case of any underwriter, any underwriting commissions and discounts) received by each other party. The relative fault of the indemnifying party and the indemnified party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or parties, and the parties' relative intent, knowledge, access to information, and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the losses, claims, damage, liabilities and expenses referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 4.04 were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in this Section 4.04. Notwithstanding the provisions of this Section 4.04, the liability of each Investor pursuant to this Section 4.04 shall not exceed the proceeds received by such Investor upon the sale of the Registrable Securities included in such registration statement, preliminary prospectus, prospectus (or amendment or supplement thereto), issuer free writing prospectus or road show giving rise to such indemnification obligation. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such a fraudulent misrepresentation.

Section 4.06. *Non-Exclusivity*. The obligations of the parties under this Article 4 will be in addition to any liability which any party may otherwise have to any other party.

ARTICLE 5

GENERAL PROVISIONS

Section 5.01. *Notices*. Any notice, request, instruction or other document provided for in this Agreement shall be in writing, and shall be deemed to have been validly served, given, delivered and received (a) for personal delivery, upon personal delivery to the party to be notified, (b) for email, upon the earlier of (i) confirmation of receipt (other than automatically generated confirmations of receipt), (ii) if sent during normal business hours of the recipient, upon delivery and (iii) if sent after normal business hours of the recipient, then on the next Business Day, or (c) for mail sent by reputable overnight courier service (charges prepaid), two Business Days after deposit with such reputable overnight courier service. Any notice, request, instruction or other document shall be sent to the following addresses or emails or to such other addresses or emails as each party may designate for itself by like notice: (a) if to the Company: Arxis, Inc., 1332 Blue Hills Avenue, Bloomfield, CT 06002, Attention: General Counsel; email: J.Allen@arxis.com; and (b) if to an Investor: [•].

Section 5.02. *Transfer Rights*. (a) Any Investor may transfer, in its sole discretion, all or any portion of its rights under this Agreement to any Transferee of its Registrable Securities, whereupon such Transferees shall become a party to this Agreement. Any such Transfer of registration rights will be effective upon receipt by the Company of (i) written notice from such Investor stating the name and address of any Transferee and identifying the number of Registrable Securities with respect to which rights under this Agreement are being transferred and the nature of the rights so transferred, and (ii) a Joinder Agreement from such Person to be bound by the terms of this Agreement as an "Investor**.**" The Company and the transferring Investor will notify the other Investors as to who the Transferees are and the nature of the rights so transferred.

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Section 5.03. *Additional Parties; Joinder Agreement*. Subject to the prior written consent of the Investors holding a majority of the Registrable Securities, the Company may permit any Person who acquires Class A Common Stock (or securities convertible into or exercisable or exchangeable for Class A Common Stock) from the Company after the date hereof to become a party to this Agreement and to succeed to all of the rights and obligations of an "Investor," as specified in the Joinder Agreement, under this Agreement by obtaining an executed joinder to this Agreement from such Person substantially in the form of Exhibit A attached hereto (a "<u>Joinder Agreement</u>").

Section 5.04. *Amendments; Waiver*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The terms and provisions of this Agreement may be modified or amended only with the written approval of the Company and the Investors holding a majority of the Registrable Securities; *provided* that any amendment or waiver which adversely affects the economic interests of any Investor hereunder, or increases the obligations of any Investor, disproportionately to other Investors shall require the written consent of such Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as expressly set forth in this Agreement, neither the failure nor delay on the part of any party hereto to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No party shall be deemed to have waived any claim arising out of this Agreement, or any right, remedy, power or privilege under this Agreement, unless the waiver of such claim, right, remedy, power or privilege is expressly set forth in a written instrument duly executed and delivered on behalf of such party; and any such waiver shall not be applicable or have any effect except in the specific instance in which it is given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any party hereto may unilaterally waive any of its rights hereunder in a signed writing delivered to the Company.

Section 5.05. *Third Parties*. Other than as provided in Article 4, this Agreement does not create any rights, claims or benefits inuring to any Person that is not a party hereto nor create or establish any third-party beneficiary hereto.

Section 5.06. *Governing Law*. THIS AGREEMENT AND ITS ENFORCEMENT AND ANY CONTROVERSY ARISING OUT OF OR RELATING TO THE MAKING OR PERFORMANCE OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

Section 5.07. *Jurisdiction; Waiver of Jury Trial*. Each party hereto hereby (a) agrees that any action, directly or indirectly, arising out of, under or relating to this Agreement shall exclusively be brought in and shall exclusively be heard and determined by either the Supreme Court of the State of New York sitting in Manhattan or the United States District Court for the Southern District of New York, and (b) solely in connection with the action(s) contemplated by subsection (a) hereof, (i) irrevocably and unconditionally consents and submits to the exclusive jurisdiction of the courts identified in subsection (a) hereof, (ii) irrevocably and unconditionally waives any objection to the laying of venue in any of the courts identified in clause (a) of this Section 5.07, (iii) irrevocably and unconditionally waives and agrees not to plead or claim that any of the courts identified in such clause (a) is an inconvenient forum or does not have personal jurisdiction over any party hereto and (iv) agrees that mailing of process or other papers in connection with any such action in the manner provided herein or in such other manner as may be permitted by applicable law shall be valid and sufficient service thereof. 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 RESPECT OF ANY CLAIM OR ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE SERVICES CONTEMPLATED HEREBY.

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Section 5.08. *Specific Performance*. Each party hereto acknowledges and agrees that in the event of any breach of this Agreement by any of them, the non-breaching party would be irreparably harmed and could not be made whole by monetary damages. Each party accordingly agrees to waive the defense in any action for specific performance that a remedy at law would be adequate and that the parties, in addition to any other remedy to which they may be entitled at law or in equity, shall be entitled to specific performance of this Agreement without the posting of a bond.

Section 5.09. *Entire Agreement*. This Agreement sets forth the entire understanding of the parties hereto with respect to the subject matter hereof. There are no agreements, representations, warranties, covenants or understandings with respect to the subject matter hereof. This Agreement supersedes all other prior agreements and understandings between the parties with respect to such subject matter.

Section 5.10. *Severability*. If any provision of this Agreement, or the application of such provision to any Person or circumstance or in any jurisdiction, shall be held to be invalid or unenforceable to any extent, (a) the remainder of this Agreement shall not be affected thereby, and each other provision hereof shall be valid and enforceable to the fullest extent permitted by law, (b) as to such Person or circumstance or in such jurisdiction such provision shall be reformed to be valid and enforceable to the fullest extent permitted by law and (c) the application of such provision to other Persons or circumstances or in other jurisdictions shall not be affected thereby.

Section 5.11. *Table of Contents, Headings and Captions*. The table of contents, headings, subheadings and captions contained in this Agreement are included for convenience of reference only, and in no way define, limit or describe the scope of this Agreement or the intent of any provision hereof.

Section 5.12. *Counterparts*. This Agreement and any amendment hereto may be signed in any number of separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one Agreement (or amendment, as applicable).

[*Remainder of Page Intentionally Left Blank*]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above written.

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| | |
|:---|:---|
| **COMPANY:**<br>Arxis, Inc. | **COMPANY:**<br>Arxis, Inc. |
| By: |  |
|  | Name: |
|  | Title: |
| **SPONSOR INVESTORS:**<br>[•] | **SPONSOR INVESTORS:**<br>[•] |
| By: |  |
|  | Name: |
|  | Title: |

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[Signature Page to Registration Rights Agreement]

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**EXHIBIT A** 

**REGISTRATION RIGHTS AGREEMENT JOINDER** 

The undersigned is executing and delivering this Joinder Agreement pursuant to the Registration Rights Agreement, dated as of [•], 2026, by and among Arxis, Inc., a Delaware corporation (the "<u>Company</u>"), and the other parties thereto (as amended and restated, restated, amended, supplemented or otherwise modified from time to time, the "<u>Registration Rights Agreement</u>"). Capitalized terms used, but not defined, in this Joinder Agreement shall have the meanings ascribed to them in the Registration Rights Agreement.

By executing and delivering to the Company this Joinder Agreement, the undersigned hereby agrees to become a party to the Registration Rights Agreement, to succeed to all of the rights and obligations of an "Investor" and to be fully bound by, and subject to, all of the covenants, terms and conditions of the Registration Rights Agreement as though an original party thereto.

Accordingly, the undersigned has executed and delivered this Joinder Agreement as of the [___] day of [___________], 20[__].

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| | |
|:---|:---|
| [NAME] | [NAME] |
| By: |  |
|  | Name: |
|  | Title: |

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ACKNOWLEDGED AND AGREED TO

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| | |
|:---|:---|
| Arxis, Inc. | Arxis, Inc. |
| By: |  |
|  | Name: |
|  | Title: |

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## Exhibit 10.6

**Exhibit 10.6** 

**<u>AMENDED AND RESTATED ADVISORY AND CONSULTING SERVICES AGREEMENT</u>**

This Advisory Services Agreement (this "<u>Agreement</u>") is made and entered into as of , 2026 (the "<u>Effective Date</u>"), by and between Arxis, Inc., a Delaware corporation, ("<u>Pubco</u>" and, together with any of its current or future subsidiaries, whether direct or indirect, the "<u>Company</u>"), and Arcline Investment Management LP, a Delaware limited partnership ("<u>Arcline</u>").

WHEREAS, reference is made to that certain Advisory Services Agreement, dated November 19, 2020, between Hawkeye TopCo, LP, a Delaware limited partnership ("<u>Hawkeye</u>"), and Arcline, that certain Advisory Services Agreement, dated April 19, 2024, between Ovation TopCo, LP, a Delaware limited partnership ("<u>Kaman</u>"), and Arcline, and that certain Advisory Services Agreement, dated April 12, 2022, between Connector TopCo, LP, a Delaware limited partnership ("<u>Qnnect</u>"), and Arcline (such agreements, the "<u>Existing Advisory Services Agreements</u>");

WHEREAS, reference is made to that certain Consulting Services Agreement, dated November 19, 2020, between Hawkeye and Arcline, that certain Consulting Services Agreement, dated April 19, 2024, between Kaman and Arcline and that certain Consulting Services Agreement, dated April 12, 2022, between Qnnect and Arcline (such agreements, the "<u>Existing Consulting Services Agreements</u>");

WHEREAS, pursuant to that certain Reorganization Agreement, dated as of , 2026, by and among Pubco and the other parties thereto, the Company is engaging in a corporate reorganization (the "<u>Reorganization</u>") in connection with Pubco's initial public offering;

WHEREAS, in connection with the Reorganization, Pubco seeks to amend and restate the Existing Advisory Services Agreement and the Existing Consulting Services Agreements; and

WHEREAS, upon the terms and subject to the conditions contained in this Agreement, the Company desires to receive certain Services (as defined below) from Arcline and Arcline desires to perform such Services for the Company.

NOW, THEREFORE, in consideration of the premises and the respective mutual agreements, covenants, representations and warranties contained in this Agreement, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Appointment of</u> <u>Arcline</u>. Upon the terms and subject to the conditions provided in this Agreement, Pubco appoints Arcline, and Arcline accepts such appointment, as an independent contractor to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Services to be Performed</u>. Arcline shall render certain operations and value creation consulting services, including research, strategy, technology, operations and talent (the "<u>Consulting Services</u>") and the services set forth in <u>Exhibit A</u> hereto and related services (the "<u>Advisory Services</u>" and, together with the Consulting Services, the "<u>Services</u>"), as reasonably requested by the Company from time to time (and agreed by Arcline). Certain of the Services will be rendered by the AVCG (as defined below) and the members thereof. The Company acknowledges and agrees that Arcline (and any employee, officer, director, partner (general or

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limited), manager, Affiliate (as defined below) or associate of Arcline, including AVCG members) shall only devote as much time and effort to the Services provided for in this Agreement as Arcline reasonably deems necessary. Arcline makes no representations or warranties, express or implied, with respect to the Services to be provided hereunder. Arcline may engage one or more investment banks, financial advisors, accountants, consultants or other service providers to provide the Services and services in addition to those being provided by Arcline. The parties hereto acknowledge and agree that Arcline is not a broker-dealer, securities underwriter or placement agent and, accordingly, if a transaction consists of a public or private offering or other placement of securities or otherwise could be considered broker-dealer services, Arcline shall have the right to act as a financial advisor to the Company and such investment banking firm(s) and/or broker-dealer as the Company and/or Arcline may select shall be engaged as underwriter(s), placement agent(s) or broker-dealers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Independent Contractor</u>. Arcline shall be an independent contractor, and nothing contained in this Agreement shall be deemed or construed (a) to create a partnership or joint venture between the Company and Arcline, (b) to cause Arcline to be responsible in any way for the debts, liabilities or obligations of the Company or any other party, or (c) to constitute that Arcline or any of its employees has a relationship as an employee, director, officer or agent with, or fiduciary to, the Company. All information, reports, studies, object codes, source codes, flow charts, diagrams or other tangible or intangible work product of any nature or form whatsoever produced, developed, created or improved by or as a result of Arcline's provision of the Services pursuant to this Agreement shall be the sole and exclusive property of Arcline or its assignee and no right of ownership, title, use or otherwise shall pass to the Company. Arcline's obligations hereunder are purely contractual in nature and no duty or obligation, arising under law or otherwise, shall be deemed to exist as a result of this Agreement or any of the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Investment Opportunities</u>. The Company acknowledges and agrees that Arcline and its Affiliates are engaged in the business of investing in, acquiring and managing, operating, creating value in and monetizing businesses for Arcline's own account, for the account of Arcline's investment vehicles, Affiliates and associates and for the account of other unaffiliated parties and investors and that no aspect or element of these activities shall be deemed to be engaged in for the benefit of the Company nor to constitute a conflict of interest. Arcline and its affiliates and their respective owners, officers, members, partners, managers, directors and employees (including, for the avoidance of doubt, the AVCG) (the "<u>Arcline</u> <u>Persons</u>") shall not be required to present any investments or business opportunities to the Company, but may bring any such opportunities to the attention of the Company which Arcline, in its sole discretion, deems appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Permissible Activities</u>. In recognition that the Arcline Persons currently have, and will in the future have or will consider acquiring, investments in numerous companies with respect to which one or more Arcline Persons may serve as an operating professional, consultant, advisor, a director or in some other capacity, and in recognition that the Arcline Persons have myriad duties to various investment vehicles, certain investors and partners, and in anticipation that the Company and the Arcline Persons (including investment vehicles sponsored by Arcline or their portfolio companies, or clients of Arcline) may engage in the same or similar activities or lines of business and have an interest in the same areas of corporate opportunities, and in recognition of the benefits to be derived by the Company hereunder and in recognition of the difficulties that may confront any advisor or consultant who desires and endeavors fully to satisfy such advisor's or consultant's

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duties in determining the full scope of such duties in any particular situation, the provisions of this <u>Section</u> <u>5</u> are set forth to regulate, define and guide the conduct of certain affairs of the Company as they may involve Arcline. Arcline's Services are not exclusive to the Company and Arcline will render similar Services to other persons and entities. Except as Arcline may otherwise agree in writing after the date hereof, and without limiting the generality of <u>Section</u> <u>4</u> hereof, the Arcline Persons shall have the right: (a) to directly or indirectly engage in any business (including, without limitation, any business activities or lines of business that are the same as or similar to those pursued by, or competitive with, the Company), (b) to directly or indirectly do business with any client or customer of the Company, (c) to take any other action that Arcline believes in good faith is necessary to or appropriate to fulfill its obligations as described in the first sentence of this <u>Section</u> <u>5</u>, and (d) not to present potential investments, transactions, matters or business opportunities to the Company or any of its direct or indirect Affiliates, and to pursue, directly or indirectly, any such opportunity for itself or its Affiliates, including investment vehicles sponsored by Arcline, and to direct any such opportunity to another person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Fees; Expenses; and Compensation.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. In consideration of the Services to be provided for herein by Arcline, the Company agrees to pay to Arcline the Convertible Consideration on the Effective Date and, commencing on the Effective Date, all Reimbursable Expenses no later than the fifth business day following fiscal quarter end. As used herein: "Convertible Consideration" shall mean one share of Convertible Common Stock (as defined in Pubco's Amended and Restated Certificate of Incorporation, dated as of , 2026 ("Pubco's Amended and Restated Certificate of Incorporation")), in accordance with Pubco's Amended and Restated Certificate of Incorporation; and "Reimbursable Expenses" shall mean for any period, all fees, guaranteed payments or other cash compensation and related expenses incurred or advanced by or on behalf of Arcline or any Affiliates or associated persons thereof, including, but not limited to, (i) travel expenses (including airfare, hotels, parking, travel agent fees, taxis and car services), meals, reasonable and customary entertainment, conference calls, overnight deliveries (including FedEx and UPS), (ii) legal counsel, accountants, consultants, administrative, or support personnel or other third-party service providers (whether or not Affiliated or associated with Arcline), (iii) the fees and expenses of custodians, outside counsel, consultants, accountants, auditors, investment banks, financial advisors, insurance (D&O, EPL, E&O, etc.) and other similar outside advisors, (iv) costs of regulatory and state filing fees, (v) fees and expenses of the AVCG, (vi) fees and expenses incurred in connection with any offering of securities of the Company (vii) the costs, fees and expenses of acquiring, holding or selling all or any part of the investment or any assets and (viii) an allocable portion of the cash compensation, including guaranteed cash payments, cash fees, other cash incentive-based compensation and/or other cash amounts, including deferred cash compensation (including the employer portion of any payroll or related taxes payable in respect of such amounts and cash charges in respect of employee health and welfare benefits provided to the recipients thereof) payable in respect of any time allocated by employees of Arcline and its Affiliates (including by way of reimbursable advance), in connection with the Services rendered to the Company during such period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. In further consideration for the receipt of the Convertible Consideration by Arcline, during the period commencing on the date hereof and ending five years after the date of this Agreement or until this Agreement is otherwise Terminated pursuant to Section 7 hereof, Arcline agrees that it shall not shall not, and shall not cause or direct any of its affiliates to, (i) offer, sell, contract to sell, pledge, grant any option, right or warrant to purchase, purchase any option or contract to sell, lend or otherwise transfer or dispose of any shares of Class A Common Stock, par value $0.01 per share, of the Company (the "Class A Common Stock"), Class B Common Stock, par value $0.01 per share, of the Company (the "Class B Common Stock"), Class C Common Stock, par value $0.01 per share, of the Company (the "Class C Common Stock") or Convertible Common Stock (together with Class A Common Stock, Class B Common Stock and Class C Common Stock, "Common Stock"), any options or warrants to purchase any shares of Common Stock, or any securities convertible into, exchangeable for or that represent the right to receive shares of Common Stock (such shares of Common Stock, options, rights, warrants or other securities, collectively, "Lock-Up Securities"), including without limitation any such Lock-Up Securities now owned or hereafter acquired by Arcline, (ii) engage in any hedging or other transaction or arrangement (including, without limitation, any short sale or the purchase or sale of, or entry into, any put or call option, or combination thereof, forward, swap or any other derivative transaction or instrument, however described or defined) which is designed to or which reasonably could be expected to lead to or result in a sale, loan, pledge or other disposition (whether by Arcline someone other than Arcline), or transfer of any of the economic consequences of ownership, in whole or in part, directly or indirectly, of any Lock-Up Securities, whether any such transaction or arrangement (or instrument provided for thereunder) would be settled by delivery of Common Stock or other securities, in cash or otherwise (any such sale, loan, pledge or other disposition, or transfer of economic consequences, a "Transfer"), or (iii) make any demand for or exercise any right with respect to the registration of any Lock-Up Securities; *provided* that, any such restriction on Arcline's holdings under this Section 6.2 shall only apply to % of the Lock-Up Securities attributable to ownership of Arcline.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. Notwithstanding Section 6.2, Arcline may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) transfer Arcline's Lock-Up Securities (i) to a partnership, limited liability company or other entity of which Arcline is the legal and beneficial owner of all of the outstanding equity securities or similar interests, (ii) to a nominee or custodian of a person or entity to whom a disposition or transfer would be permissible under clause (A)(i) above, (iii) (A) to another corporation, partner, limited partner, manager, member, limited liability company, equityholder, shareholder or other business entity that is an affiliate (as defined in Rule 405 under the Securities Act of 1933, as amended) of Arcline, or to any investment fund or other entity which fund or entity controls, is controlled by, manages, is managed by or is under common control with Arcline or affiliates of Arcline, or (B) as part of a distribution by Arcline to its current or former partners, members or other equityholders or to the estate of any such partners, members or other equityholders, (iv) by operation of law, (v) (x) in connection with the conversion, exchange or reclassification of any outstanding securities of the Company into shares of Common Stock, or any conversion, exchange or reclassification of the Common Stock, provided that any such shares of Common Stock received upon such conversion, exchange or reclassification shall be subject to the terms of this Agreement, or (vi) pursuant to a bona fide third-party tender offer, merger, consolidation or other similar transaction that is approved by the Board of Directors of the Company and made to all holders of the Company's capital stock involving a Change of Control of the Company (for purposes hereof, "Change of Control" shall mean the transfer (whether by tender offer, merger, consolidation or other similar transaction), in one transaction or a series of related transactions, to a person or group of affiliated persons, of shares of capital stock if, after such transfer, such person or group of affiliated persons would hold at least a majority of the outstanding voting securities of the Company (or the surviving entity)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Term; Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. The term of this Agreement shall commence on the date hereof and expire upon the mutual agreement of Arcline and the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. Arcline may also terminate its engagement under this Agreement upon written notice to the Company. If this Agreement is terminated by Arcline because of the breach of any of the material terms or provisions hereof by the Company, Arcline shall be entitled to recover damages from the Company and shall not be required to mitigate or reduce damages by seeking or undertaking other management arrangements or business opportunities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. The provisions of Sections <u>3</u>, <u>4</u>, <u>5</u>, and <u>7</u> through <u>21</u> shall survive any expiration or termination of this Agreement and remain in full force and effect. No termination of this Agreement shall limit the right of Arcline or any other Arcline Person to receive the Convertible Consideration and Reimbursable Expenses accrued prior to such termination in accordance with <u>Section</u> <u>6</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Limitation of Liability</u>. Neither Arcline nor any of the other Indemnified Parties (as defined below) shall be liable to the Company or any other person for any loss, liability, damage or expense arising out of or in connection with the performance of Services contemplated by this Agreement (including for any mistakes of fact, errors of judgment, losses sustained by the Company or acts or omissions of any kind), unless such loss, liability, damage or expense shall be proven to result directly from the willful misconduct of Arcline, as finally determined in an unappealable judgment by a court of competent jurisdiction. In no event will Arcline or any of the other Indemnified Parties be liable to the Company or any other person for any indirect, special, incidental or consequential damages, including lost profits or savings, whether or not such damages are foreseeable, or in respect of any liabilities relating to any third party claims (whether based in contract, tort or otherwise) except as set forth in <u>Section</u> <u>9</u> below. In no event shall the Company's liability for any and all claims arising out of the Services provided pursuant to this Agreement exceed the fees paid to the Company for such Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Indemnification of</u> <u>Arcline</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. The Company shall indemnify and hold harmless Arcline, its affiliated investment funds and each of their respective present and future officers, directors, members, managers, Affiliates, employees, controlling persons, agents and representatives (including, for the avoidance of doubt, the AVCG) (and each of their respective officers, directors, members, managers, Affiliates, employees, controlling persons, agents and representatives) ("<u>Indemnified Parties</u>") from and against all losses, claims, liabilities, obligations, suits, costs, damages and expenses (including attorneys' fees) arising from, or in any way related to, their performance of Services hereunder, except to the extent that it is determined by a court of competent jurisdiction in a final, nonappealable judgment that such losses, claims, liabilities, suits, costs, damages and expenses resulted directly from their willful misconduct. The Company shall reimburse the Indemnified Parties on a monthly basis for any cost of defending any action or investigation (including attorneys' fees and expenses) subject to an undertaking from any such Indemnified Party to repay the Company if such party is determined in a final nonappealable judgment not to be entitled to indemnity hereunder. Pubco further agrees, on behalf of itself and the Company, that neither it nor any of its subsidiaries will, without the prior written consent of the Indemnified Party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which indemnification may be sought hereunder (whether or not any Indemnified Party is an actual or potential party to such claim, action, suit or proceeding) unless such settlement, compromise or consent includes an unconditional release of Arcline and

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each other Indemnified Party hereunder from all liability arising out of such claim, action, suit or proceeding. THE COMPANY HEREBY ACKNOWLEDGES THAT ARCLINE AND THE OTHER INDEMNIFIED PARTIES SHALL BE INDEMNIFIED FOR ALL CLAIMS, ACTIONS, CAUSES OF ACTION, SUITS, LIABILITIES, OBLIGATIONS, DAMAGES, LOSSES, COSTS OR EXPENSES THAT HAVE RESULTED FROM OR ARE ALLEGED TO HAVE RESULTED FROM THE ACTIVE, PASSIVE, SOLE, JOINT, OR CONCURRENT ORDINARY OR GROSS NEGLIGENCE OR STRICT LIABILITY OF ARCLINE OR ANY OTHER INDEMNIFIED PARTY, AND THAT NEITHER ARCLINE NOR ANY OTHER INDEMNIFIED PARTY SHALL BE LIABLE FOR ANY SUCH CLAIMS, ACTIONS, CAUSES OF ACTION, SUITS, OBLIGATIONS, LIABILITIES, DAMAGES, LOSSES, COSTS OR EXPENSES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. The Company and its direct and indirect subsidiaries shall defend at their own cost and expense any and all suits or actions (just or unjust) that may be brought against the Indemnified Parties or in which any Indemnified Party may be impleaded with others upon any claims, or upon any matter directly or indirectly related to or arising out of this Agreement or the performance hereof by the Indemnified Parties, except to the extent that it is determined by a court of competent jurisdiction in a final, nonappealable judgment that such losses, claims, liabilities, suits, obligations, costs, damages and expenses resulted directly from the willful misconduct by any of the Indemnified Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3. The right to indemnification and the advancement of expenses conferred in this <u>Section</u> <u>9</u> shall not be exclusive of any other right that any person may have or hereafter acquire under any statute, agreement, by-law, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4. The Company may maintain insurance, at its expense, to protect any Indemnified Party against any expense, liability or loss described in this <u>Section</u> <u>9</u> whether or not the Company would have the power to indemnify such Indemnified Party against such expense, liability or loss under the provisions of this <u>Section</u> <u>9</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5. The obligations of the Company under this <u>Section</u> <u>9</u> shall be interpreted without regard to any other indemnification obligations from which the Indemnified Party may benefit (any other person that provides any such other indemnity of any Indemnified Party is hereinafter referred to as an "<u>Other Indemnitor</u>"). Without limiting the generality of the foregoing, the Company hereby agrees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) that the Company shall be the indemnitor of first resort (*i.e.*, its obligations to the Indemnified Party are primary and any obligation of any Other Indemnitor to advance expenses or to provide indemnification for the same expenses or liabilities incurred by the Indemnified Party are secondary);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that it will not assert that the Indemnified Party must seek expense advancement or reimbursement, or indemnification, from any Other Indemnitor before the Company must perform any of its expense advancement, reimbursement or indemnification obligations hereunder;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) that the Company shall be required to advance the full amount of expenses incurred by the Indemnified Party and shall be liable for the full amount of all expenses, judgments, penalties, fines and amounts paid in settlement by or on behalf of the Indemnified Party to the extent legally permitted and as required hereby, without regard to any rights that the Indemnified Party may have against any Other Indemnitor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) that the Company hereby irrevocably waives, relinquishes and releases each Other Indemnitor from any and all claims against such Other Indemnitor for contribution, subrogation or any other recovery of any kind in respect thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) that no payment by any Other Indemnitor shall affect the foregoing, and each Other Indemnitor shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnified Party against the Company, and if for any reason a court of competent jurisdiction determines that any Other Indemnitor is not entitled to such subrogation, such Other Indemnitor shall have a right of contribution by the Company to such Other Indemnitor with respect to any such payment by such Other Indemnitor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) that if a third party seeks to hold an Affiliate of the Indemnified Party responsible for any action or inaction by such Indemnified Party by reason of (or arising in part out of) any event with respect to which the Company has any indemnification obligation under this <u>Section</u> <u>9</u>, then such Affiliate shall be entitled to indemnification under this <u>Section</u> <u>9</u> to the same extent as the Indemnified Party is entitled to indemnification hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Successors and Assigns</u>. This Agreement is intended to bind and inure to the benefit of and be enforceable by Arcline, the Company and their respective successors and permitted assigns. Neither party may assign, transfer or convey any of its rights, duties or interests under this Agreement, nor shall it delegate any of the obligations or duties required to be kept or performed by it hereunder, without the prior written consent of the other party; <u>provided</u> that Arcline (and each of its subsequent assignees) may assign this Agreement or its rights or obligations hereunder, in whole or in part, to any of its Affiliates. In the event of any permitted assignment contemplated by the proviso of the immediately preceding sentence, Arcline shall be released from any further obligations under this Agreement (or the obligations so assigned) arising after the date of such assignment (upon the execution of an undertaking by the applicable assignee to satisfy such obligations). Upon any assignment of this Agreement to an Affiliate, the Company and such assignee may enter into a new agreement between the respective parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Definitions</u>.

"<u>Advisory Services</u>" has the meaning set forth in <u>Section</u> <u>2</u>.

"<u>Affiliate</u>" means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control with such Person.

"<u>Agreement</u>" has the meaning set forth in the introductory paragraph in this Agreement.

"<u>Arcline</u>" has the meaning set forth in the introductory paragraph in this Agreement.

"<u>Arcline</u> <u>Persons</u>" has the meaning set forth in <u>Section</u> <u>4</u>.

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"<u>AVCG</u>" means, collectively, a group of operating professionals that are, in accordance with Arcline's internal policies as in effect and amended from time to time, (a) employed, engaged or retained from time to time by Arcline or an Affiliate thereof or successor thereto, and (b) designated as members of the Arcline Value Creation Group.

"<u>Company</u>" has the meaning set forth in the introductory paragraph in this Agreement.

"<u>Consulting Services</u>" has the meaning set forth in <u>Section</u> <u>2</u>.

"<u>Confidential Information</u>" has the meaning set forth in <u>Section</u> <u>21</u>.

"<u>Effective Date</u>" has the meaning set forth in the introductory paragraph in this Agreement.

"<u>Indemnified Parties</u>" has the meaning set forth in <u>Section</u> <u>9.1</u>.

"<u>Other Indemnitor</u>" has the meaning set forth in <u>Section</u> <u>9.5</u>.

"<u>Person</u>" means an individual, a partnership, a limited partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof.

"<u>Pubco</u>" has the meaning set forth in the introductory paragraph in this Agreement.

"<u>Services</u>" has the meaning set forth in <u>Section</u> <u>2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Tax Forms</u>. On or promptly following the Effective Date and, in any event, prior to any payments being made under this Agreement, Arcline shall provide the Company with a duly executed IRS Form W-9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Notices</u>. All notices, demands or other communications to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given when delivered personally or e-mailed to the recipient, one day after being sent to the recipient by reputable overnight courier service (charges prepaid) or five days after being mailed to the recipient by certified or registered mail, return receipt requested and postage prepaid. Such notices, demands and other communications shall be sent to the parties at the addresses indicated below or to such other address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party.

<u>If to the Company</u>:

Arxis, Inc.

1332 Blue Hills Avenue

Bloomfield, CT 06002

Attn: Jennifer Allen

Email: J.Allen@arxis.com

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<u>If to Arcline</u>:

Arcline Investment Management LP

3803 Bedford Avenue, Suite 106

Nashville, TN 37215

Attn: Gib Efird

Email: gib@arcline.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Severability</u>. The parties hereto agree that (a) the provisions of this Agreement shall be severable in the event that for any reason whatsoever the provisions hereof are invalid, void or otherwise unenforceable, (b) such invalid, void or otherwise unenforceable provisions shall be automatically replaced by other provisions which are as similar as possible in terms to such invalid, void or otherwise unenforceable provisions, but are valid and enforceable, and (c) the remaining provisions shall remain enforceable to the fullest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Waiver of Jury Trial</u>. AS SPECIFICALLY BARGAINED FOR INDUCEMENT FOR EACH OF THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT (AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL), EACH PARTY HERETO EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Confidentiality</u>. All advice furnished by Arcline to the Company pursuant to this Agreement shall remain property of Arcline, shall be treated as confidential by the Company (and the Company shall cause each other party with whom it shares such information under confidentiality agreements to treat as confidential) except as required by law or by demand of any regulatory or self-regulatory authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>No Waiver</u>. No failure or delay by a party hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof, and no single or partial exercise thereof shall preclude any right of further exercise or the exercise of any other right, power or privilege. Any right, power or privilege of any party hereunder may be waived by a party hereto, but only in a written instrument executed by such party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Titles and Subtitles</u>. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Entire Agreement; Amendment; Certain Terms</u>. This Agreement contains the entire agreement among the parties hereto with respect to the matters herein contained and supersedes and preempts any prior understandings or agreements by or among the parties, written or oral, which may have related to the subject matter hereof in any way. The provisions of this Agreement may be amended only with the prior written consent of Pubco and Arcline. This Agreement shall not confer any rights or remedies upon any person or entity other than the parties hereto and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Governing Law</u>. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware without reference to the laws of any other state.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Common Interest</u>. Because Arcline shall, as one of its duties hereunder, manage its Affiliates' direct or indirect investment in the Company, a common interest exists among the parties hereto and their respective Affiliates and, as such, the parties acknowledge that from time to time they may exchange among themselves oral and written communications, documents, materials, and/or other confidential information (collectively, the "<u>Confidential Information</u>") about legal and/or regulatory matters that are covered by the attorney-client privilege, the attorney work product doctrine, and/or any other applicable privilege, immunity, or protection from disclosure provided by applicable law. The parties agree that they have common interests with respect to the Confidential Information and further agree that they intend to permit the sharing or exchange of the Confidential Information between and among themselves and their counsel, while preserving and protecting the confidentiality of the Confidential Information and maintaining it as privileged. Accordingly, the parties commit that they will keep the Confidential Information confidential and limit the distribution of it to the parties and their respective counsel, employees, or agents working on matters related to the common interest. The parties understand and acknowledge that the declaration of a common interest between the parties does not in any way affect any liability which may exist or be imposed, nor does it transform or affect any pre-existing attorney-client relationships of any party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Counterparts</u>. This Agreement may be executed in separate counterparts (including by electronic transmission), each of which is deemed to be an original and all of which taken together constitute one and the same agreement.

(signature page follows)

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IN WITNESS WHEREOF, each of the parties has executed or caused this Amended and Restated Advisory and Consulting Services Agreement to be executed as of the date first written above.

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| |
|:---|
| **ARXIS, INC.** |
| By: |
| Name: |
| Title: |

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*Signature Page to Advisory and Consulting Services Agreement* 

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| |
|:---|
| **ARCLINE INVESTMENT MANAGEMENT LP** |
| By: |
| Name: |
| Title: |

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*Signature Page to Advisory and Consulting Services Agreement*

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**EXHIBIT A** 

**<u>Description of Services</u>**

**•**  **<u>Buy-Side Services</u>:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Provide assistance and support relating to the identification, negotiation and analysis of the transactions
contemplated with respect to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Review and analyze investment banking materials and attending management presentations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Assist in selecting advisors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Select and engage counsel for work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Review and analyze financial, commercial, tax and legal due diligence reports and findings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Provide assistance and support relating to the negotiation of the investment and transaction specific financing
(and review of financing alternatives) in connection with the acquisition of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Provide other advice relating to transaction-specific finance matters, including assistance in the preparation of
financial projections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Provide general executive, advisory and consulting services relating to the management and operations of the
Company, including assessment of commercial and economic relevance and advice and consulting in financial analysis.

**•**  **<u>Sell-Side Services</u>:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Prepare or assist in the preparation of overview materials for investment banking presentations, including
overall positioning/marketing of the business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Review investment banking presentations and attend presentations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Assist in selecting advisors (banking, accounting, etc.), potentially including investment banking advisors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Select and engage counsel for work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Organize, understand and if necessary reformat historical financials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If necessary, assist in engaging and managing financial advisory firms to help prepare any of the information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Assist in generating weekly or monthly budget for first year, and then quarterly or annual budget for investment
banking presentations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Prepare or assist in the preparation of quality of earnings analysis, including management addbacks, for purposes
of financial presentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If necessary, assist in engaging accounting firms to validate quality of earnings reports.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If necessary, assist in engaging environmental studies to prepare Pubco and/or its subsidiaries and Affiliates
for sale for buyer's benefit or to benefit an acquisition by the Company and/or its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If necessary, assist in engaging asset appraisal firms to prepare Pubco and/or its subsidiaries and Affiliates
for sale for buyer's benefit or to benefit an acquisition by the Company and/or its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Provide assistance and support regarding credit financing for acquisitions by the Company and/or its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If necessary, assist in engaging consultants to provide a report on competitive landscape in the Company's
or acquisition target's sector.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Evaluate operations of potential acquisition targets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Assist with add-on acquisitions, including diligence, negotiation of
purchase agreement and closing mechanics and funds flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Help create, review and/or organize diligence materials for electronic data room.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Help create, review and/or organize purchase agreement schedules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Help draft confidential information memorandum in conjunction with bankers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Help draft management presentation in conjunction with bankers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Help respond to numerous buyer diligence requests, in conjunction with the Company and bankers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Provide input on confidentiality agreement form to send to buyers, as well as any modifications that potential
buyers may request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Provide assistance regarding investment banker's interactions with buyers, including assisting in
determining (1) which recipients to whom to send materials (including identifying which recipients to exclude based on competitive or confidentiality reasons), (2) the type of messaging to be sent to respective buyers, (3) which parties to
invite into management meetings, and (4) which party to ultimately select as the buyer and what kind of exclusivity to grant the bidder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Assist in obtaining payoff letters from various creditors and transaction services providers.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Create funds flow document including wiring instructions, and often initiate wires internally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Assist in drafting press release and negotiate with buyer if necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Assist in engaging and negotiate tail insurance policy for directors and officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Following closing, monitor net working capital settlement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Following closing, monitor any potential indemnification claims.

## Exhibit 10.8

**Exhibit 10.8** 

ARXIS, INC.

DIRECTORS AND OFFICERS

INDEMNIFICATION AGREEMENT

This Indemnification Agreement (this "**Agreement**"), made and entered into as of the ____ day of ______, 2026, by and between Arxis, Inc., a Delaware corporation (the "**Company**") and _________ ("**Indemnitee**").

W I T N E S S E T H:

WHEREAS, highly competent persons have become more reluctant to serve publicly-held corporations as directors or officers unless they are provided with adequate protection through insurance or adequate indemnification against risks of claims and actions against them arising out of their service to and activities on behalf of the corporation.

WHEREAS, the Board of Directors of the Company (the "**Board**") has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities. Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions. At the same time, directors, officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself.

WHEREAS, the Amended and Restated Certificate of Incorporation (the "**Certificate of Incorporation**") of the Company provide that the Company shall indemnify and advance expenses to all directors and officers of the Company in the manner set forth therein and to the fullest extent permitted by applicable law, and the Company's Certificate of Incorporation provides for limitation of liability for directors. In addition, Indemnitee may be entitled to indemnification pursuant to the General Corporation Law of the State of Delaware ("**DGCL**"). The Certificate of Incorporation and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the board of directors, officers and other persons with respect to indemnification.

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WHEREAS, the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such persons.

WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company's stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future.

WHEREAS, the Board has determined that it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified.

WHEREAS, this Agreement is a supplement to and in furtherance of the Certificate of Incorporation of the Company and any resolutions adopted pursuant thereto and any liability insurance procured by the Company and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

WHEREAS, Indemnitee does not regard the protection available under the Company's Certificate of Incorporation and insurance as adequate in the present circumstances, and may not be willing to serve as an officer or director of the Company without adequate protection, and the Company desires Indemnitee to serve in such capacity. Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that he or she be so indemnified.

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

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ARTICLE 1

CERTAIN DEFINITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As used in this Agreement:

"**Change of Control**" means any one of the following circumstances occurring after the date hereof: (i) there shall have occurred an event required to be reported with respect to the Company in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item or any similar schedule or form) under the Exchange Act, regardless of whether the Company is then subject to such reporting requirement; (ii) any "person" or "group" (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act) shall have become, without prior approval of the Company's Board by approval of at least a majority of the Continuing Directors, the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 15% or more of the combined voting power of the Company's then issued and outstanding voting securities (provided that, for purposes of this clause (ii), the term "person" shall exclude (x) the Company, the Sponsor and any Permitted Transferee (each as defined in the Certificate of Incorporation) (y) any trustee or other fiduciary holding securities under an employee benefit plan of the Company, and (z) any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company); (iii) there occurs a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining issued and outstanding or by being converted into voting securities of the surviving entity) more than 51% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such surviving entity; (iv) all or substantially all the assets of the Company are sold or disposed of in a transaction or series of related transactions; (v) the approval by the stockholders of the Company of a complete liquidation of the Company; or (vi) the Continuing Directors cease for any reason to constitute at least a majority of the members of the Board.

"**Continuing Director**" means (i) each director on the Board on the date hereof or (ii) any new director whose election or nomination for election by the Company's stockholders was approved by a vote of at least a majority of the directors then still in office who were directors on the date hereof or whose election or nomination was so approved.

"**Corporate Status**" means the status of a person who is or was a director, officer, trustee, general partner, managing member, fiduciary, board of directors' committee member, employee or agent of the Company or of any other Enterprise.

"**Disinterested Director**" means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

"**Enterprise**" means the Company and any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, trustee, general partner, managing member, fiduciary, board of directors' committee member, employee or agent.

"**Exchange Act**" means the Securities Exchange Act of 1934, as amended.

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"**Expenses**" means all direct and indirect costs (including attorneys' fees, retainers, court costs, transcripts, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses) reasonably incurred in connection with (i) prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding or (ii) establishing or enforcing a right to indemnification under this Agreement, the Company's Certificate of Incorporation, applicable law or otherwise. Expenses also shall include Expenses incurred in connection with any appeal resulting from any Proceeding, including the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent. For the avoidance of doubt, Expenses, however, shall not include any Liabilities.

"**Independent Counsel**" means a law firm, or a member of a law firm, that is experienced in matters of corporate law and neither currently is, nor in the five years previous to its selection or appointment has been, retained to represent (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement or of other indemnitees under similar indemnification agreements) or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term "Independent Counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement.

"**Liabilities**" means any losses or liabilities, including any judgments, fines, excise taxes and penalties, penalties and amounts paid in settlement, arising out of or in connection with any Proceeding (including all interest, assessments and other charges paid or payable in connection with or in respect of any such judgments, fines, excise taxes and penalties, penalties or amounts paid in settlement).

"**Proceeding**" means any threatened, pending or completed action, derivative action, suit, claim, counterclaim, cross claim, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether civil (including intentional and unintentional tort claims), criminal, administrative or investigative, including any appeal therefrom, and whether instituted by or on behalf of the Company or any other party, or any inquiry or investigation that Indemnitee in good faith believes might lead to the institution of any such action, suit or other proceeding hereinabove listed in which Indemnitee was, is or will be involved as a party, potential party, non-party witness or otherwise by reason of any Corporate Status of Indemnitee, or by reason of any action taken (or failure to act) by him or her or of any action (or failure to act) on his or her part while serving in any Corporate Status.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For the purposes of this Agreement:

References to "Company" shall include, in addition to the resulting or surviving corporation, any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that if Indemnitee is or was a director, officer, employee, or agent of such constituent corporation or is or was serving at the request of such constituent corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust or other enterprise, then Indemnitee shall stand in the same position under the provisions of this Agreement with respect to the resulting or surviving corporation as Indemnitee would have with respect to such constituent corporation if its separate existence had continued.

Reference to "other enterprise" shall include employee benefit plans; references to "fines" shall include any excise tax assessed with respect to any employee benefit plan; references to "serving at the request of the Company" shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner he reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner "not opposed to the best interests of the Company" as referred to in this Agreement.

Reference to "including" shall mean "including, without limitation," regardless of whether the words "without limitation" actually appear, references to the words "herein," "hereof" and "hereunder" and other words of similar import shall refer to this Agreement as a whole and not to any particular paragraph, subparagraph, section, subsection or other subdivision.

ARTICLE 2

SERVICES BY INDEMNITEE

Section 2.01 *. Services By Indemnitee.* Indemnitee hereby agrees to serve or continue to serve as a director, officer of the Company, for so long as Indemnitee is duly elected or appointed or until Indemnitee tenders his or her resignation or is removed.

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ARTICLE 3

INDEMNIFICATION

Section 3.01 *. General.* (a) The Company hereby agrees to and shall indemnify Indemnitee and hold Indemnitee harmless from and against any and all Expenses and Liabilities, in either case, actually and reasonably incurred by Indemnitee or on Indemnitee's behalf by reason of Indemnitee's Corporate Status, to the fullest extent permitted by applicable law. The Company's indemnification obligations set forth in this Section 3.01 shall apply (i) in respect of Indemnitee's past, present and future service in any Corporate Status and (ii) regardless of whether Indemnitee is serving in any Corporate Status at the time any such Expense or Liability is incurred.

For purposes of this Agreement, the meaning of the phrase "to the fullest extent permitted by applicable law" shall include, but not be limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the fullest extent permitted by any provision of the DGCL, or the corresponding provision of any successor statute, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its officers and directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Witness Expenses*. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of his or her Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, he or she shall be indemnified against all Expenses actually and reasonably incurred by Indemnitee or on his or her behalf in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Expenses as a Party Where Wholly or Partly Successful*. Notwithstanding any other provisions of this Agreement, to the fullest extent permitted by applicable law, to the extent that Indemnitee is a party to (or a participant in) and is successful, on the merits or otherwise, in any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or her in connection therewith. If Indemnitee is not wholly successful in such Proceeding, but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall, to the fullest extent permitted by applicable law, indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on his or her behalf in connection with each successfully resolved claim, issue or matter. For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

Section 3.02 *. Exclusions.* Notwithstanding any provision of this Agreement and unless Indemnitee ultimately is successful on the merits with respect to any such claim, the Company shall not be obligated under this Agreement to make any indemnity in connection with any claim made against Indemnitee:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for (i) an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act or similar provisions of state statutory law or common law or (ii) any reimbursement of the Company by Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the "**Sarbanes-Oxley Act**"), or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) except as otherwise provided in Sections 6.01(e), prior to a Change of Control, in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee (other than any cross claim or counterclaim asserted by the Indemnitee), including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law.

ARTICLE 4

ADVANCEMENT OF EXPENSES; DEFENSE OF CLAIMS

Section 4.01 *. Advances.* Notwithstanding any provision of this Agreement to the contrary, the Company shall advance any Expenses actually and reasonably incurred by Indemnitee in connection with any Proceeding within fifteen (15) days after the receipt by the Company of each statement requesting such advance from time to time, whether prior to or after final disposition of any Proceeding. Advances shall be unsecured and interest free. Advances shall be made without regard to Indemnitee's ability to repay such amounts and without regard to Indemnitee's ultimate entitlement to indemnification under the other provisions of this Agreement. Advances shall include any and all reasonable Expenses incurred pursuing an action to enforce this right of advancement, including Expenses incurred preparing and forwarding statements to the Company to support the advances claimed.

Section 4.02 *. Repayment of Advances or Other Expenses.* Indemnitee agrees that Indemnitee shall reimburse the Company for all Expenses advanced by the Company pursuant to Section 4.01, in the event and only to the extent that it shall be determined by final judgment or other final adjudication under the provisions of any applicable law (as to which all rights of appeal therefrom have been exhausted or lapsed) that Indemnitee is not entitled to be indemnified by the Company for such Expenses.

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Section 4.03 *. Defense of Claims.* The Company shall be entitled to assume the defense of any Proceeding with counsel consented to by Indemnitee (such consent not to be unreasonably withheld) upon the delivery by the Company to Indemnitee of written notice of the Company's election to do so. After delivery of such notice, consent to such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any fees or expenses of counsel subsequently incurred by Indemnitee with respect to such Proceeding; *provided* that (i) Indemnitee shall have the right to employ separate counsel in respect of any Proceeding at Indemnitee's expense and (ii) if (A) the employment of counsel by Indemnitee has been previously authorized in writing by the Company or (B) Indemnitee shall have reasonably concluded upon the advice of counsel that there is a conflict of interest between the Company and Indemnitee in the conduct of the defense of such Proceeding, then in each such case the fees and expenses of Indemnitee's counsel shall be at the Company's expense. The Company shall not settle any action, claim or Proceeding (in whole or in part) which would impose any Expense, judgment, fine, penalty or limitation on Indemnitee without Indemnitee's prior written consent, such consent not to be unreasonably withheld. Indemnitee shall not settle any action, claim or Proceeding (in whole or in part) without the Company's prior written consent, such consent not to be unreasonably withheld.

ARTICLE 5

PROCEDURES FOR NOTIFICATION OF AND DETERMINATION OF ENTITLEMENT TO INDEMNIFICATION

Section 5.01 *. Notification; Request For Indemnification.* (a) As soon as reasonably practicable after receipt by Indemnitee of written notice that he or she is a party to or a participant (as a witness or otherwise) in any Proceeding or of any other matter in respect of which Indemnitee intends to seek indemnification or advancement of Expenses hereunder, Indemnitee shall provide to the Company written notice thereof, including the nature of and the facts underlying the Proceeding. The omission by Indemnitee to so notify the Company will not relieve the Company from any liability which it may have to Indemnitee hereunder or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To obtain indemnification under this Agreement, Indemnitee shall deliver to the Company a written request for indemnification, including therewith such information as is reasonably available to Indemnitee and reasonably necessary to determine Indemnitee's entitlement to indemnification hereunder. Such request(s) may be delivered from time to time and at such time(s) as Indemnitee deems appropriate in his or her sole discretion. Indemnitee's entitlement to indemnification shall be determined according to Section 5.02 of this Agreement and applicable law.

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Section 5.02 *. Determination of Entitlement.* (a) Where there has been a written request by Indemnitee for indemnification pursuant to Section 5.01(b), then as soon as is reasonably practicable (but in any event not later than 60 days) after final disposition of the relevant Proceeding, a determination, if required by applicable law, with respect to Indemnitee's entitlement thereto shall be made in the specific case: (i) if a Change of Control shall not have occurred, (A) by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (B) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (C) if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; or (ii) if a Change of Control shall have occurred, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee. If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination. Indemnitee shall reasonably cooperate with the person, persons or entity making such determination with respect to Indemnitee's entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any costs or expenses (including attorneys' fees and disbursements) actually and reasonably incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee's entitlement to indemnification).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If entitlement to indemnification is to be determined by Independent Counsel pursuant to Section 5.02(a)(ii), such Independent Counsel shall be selected by Indemnitee, and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected. If entitlement to indemnification is to be determined by Independent Counsel pursuant to Section 5.02(a)(i)(C) (or if Indemnitee requests that such selection be made by the Board), such Independent Counsel shall be selected by the Company in which case the Company shall give written notice to Indemnitee advising him or her of the identity of the Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be, may, within 10 days after such written notice of selection shall have been received, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of "Independent Counsel" as defined in Section 1 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court of competent jurisdiction has determined that such objection is without merit. If, within 20 days after the later of submission by Indemnitee of a written request for indemnification pursuant to Section 5.01(b) hereof and the final disposition of the Proceeding, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition a court of competent jurisdiction for resolution of any objection which shall have been made by the Company or Indemnitee to the other's selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the court or by such other person as the court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 5.02(a) hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 6.01(a) of this Agreement, the Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company agrees to pay the reasonable fees and expenses of any Independent Counsel serving under this Agreement.

Section 5.03 *. Presumptions and Burdens of Proof; Effect of Certain Proceedings.* (a) In making any determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall, to the fullest extent not prohibited by law, presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 5.01(b) of this Agreement, and the Company shall, to the fullest extent not prohibited by law, have the burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any determination contrary to that presumption. Neither the failure of any person, persons or entity to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by any person, persons or entity that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the person, persons or entity empowered or selected under Section 5.02 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within the sixty (60) day period referred to in Section 5.02(a), the requisite determination of entitlement to indemnification shall, to the fullest extent not prohibited by law, be deemed to have been made and Indemnitee shall be entitled to such indemnification , absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law; *provided*, however, that such 60-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation and/or information relating thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his or her conduct was unlawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee's action is in good faith reliance on the records or books of account of any Enterprise, including financial statements, or on information supplied to Indemnitee by the officers of such Enterprise in the course of their duties, or on the advice of legal counsel for such Enterprise or on information or records given or reports made to such Enterprise by an independent certified public accountant or by an appraiser or other expert selected by such Enterprise. The provisions of this Section 5.03(d) shall not be deemed to be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed or found to have met the applicable standard of conduct set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The knowledge and/or actions, or failure to act, of any other director, trustee, partner, managing member, fiduciary, officer, agent or employee of any Enterprise shall not be imputed to Indemnitee for purposes of determining any right to indemnification under this Agreement.

ARTICLE 6

REMEDIES OF INDEMNITEE

Section 6.01. *Adjudication or Arbitration*. (a) In the event of any dispute between Indemnitee and the Company hereunder as to entitlement to indemnification or advancement of Expenses (including where (i) a determination is made pursuant to Section 5.02 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 4.01 of this Agreement, (iii) payment of indemnification pursuant to Section 3.01 of this Agreement is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification, (iv) no determination as to entitlement to indemnification is timely made pursuant to Section 5.02 of this Agreement and no payment of indemnification is made within ten (10) days after entitlement is deemed to have been determined pursuant to Section 5.03(b) or (v) a contribution payment is not made in a timely manner pursuant to Section 8.04 of this Agreement), then Indemnitee shall be entitled to an adjudication by a court of his or her entitlement to such indemnification, contribution or advancement. Alternatively, in such case, Indemnitee, at his or her option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. The Company shall not oppose Indemnitee's right to seek any such adjudication or award in arbitration.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that a determination shall have been made pursuant to Section 5.02(a) of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 6.01 shall be conducted in all respects as a *de novo* trial, or arbitration, on the merits, and Indemnitee shall not be prejudiced by reason of that adverse determination. In any judicial proceeding or arbitration commenced pursuant to this Section 6.01 the Company shall have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be, and the Company may not refer to or introduce into evidence any determination pursuant to Section 5.02(a) of this Agreement adverse to Indemnitee for any purpose. If Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 6.01, Indemnitee shall not be required to reimburse the Company for any advances pursuant to Section 4.02 until a final determination is made with respect to Indemnitee's entitlement to indemnification (as to which all rights of appeal have been exhausted or lapsed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a determination shall have been made pursuant to Section 5.02(a) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 6.01, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company shall be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 6.01 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company shall indemnify Indemnitee to the fullest extent permitted by law against all Expenses and, if requested by Indemnitee, shall (within ten (10) days after the Company's receipt of such written request) advance such Expenses to Indemnitee, which are reasonably incurred by Indemnitee in connection with any judicial proceeding or arbitration brought by Indemnitee for (i) indemnification or advances of Expenses by the Company (or otherwise for the enforcement, interpretation or defense of his or her rights) under this Agreement or any other agreement, including any other indemnification, contribution or advancement agreement, or any provision of the Company's Certificate of Incorporation or Bylaws now or hereafter in effect or (ii) recovery or advances under any directors' and officers' liability insurance policy maintained by the Company, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, contribution, advancement or insurance recovery, as the case may be.

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ARTICLE 7

DIRECTORS' AND OFFICERS' LIABILITY INSURANCE

Section 7.01 *. D&O Liability Insurance.* The Company shall obtain and maintain a policy or policies of insurance ("**D&O Liability Insurance**") with reputable insurance companies providing liability insurance for directors and officers of the Company in their capacities as such (and for any capacity in which any director or officer of the Company serves any other Enterprise at the request of the Company), in respect of acts or omissions occurring while serving in such capacity, on terms with respect to coverage and amount (including with respect to the payment of Expenses) as reasonably determined by the Board.

Section 7.02 *. Evidence of Coverage.* Upon request by Indemnitee, the Company shall provide copies of all policies of D&O Liability Insurance obtained and maintained in accordance with Section 7.01 of this Agreement.

ARTICLE 8

MISCELLANEOUS

Section 8.01 *. Nonexclusivity of Rights.* The rights of indemnification, contribution and advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled to under applicable law, the Company's Certificate of Incorporation, the Company's Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.

Section 8.02 *. Insurance and Subrogation.* (a) Indemnitee shall be covered by the Company's D&O Liability Insurance in accordance with its or their terms to the maximum extent of the coverage available for any director or officer under such policy or policies. If, at the time the Company receives notice of a claim hereunder, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies. The failure or refusal of any such insurer to pay any such amount shall not affect or impair the obligations of the Company under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable (or for which advancement is provided) hereunder if and to the extent that Indemnitee has actually received such payment under any insurance policy or other indemnity provision.

Section 8.03 The Company's obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer, trustee, partner, managing member, fiduciary, board of directors' committee member, employee or agent of any other Enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of Expenses from such Enterprise.

Section 8.04 *. Contribution.* To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving rise to such Proceeding; and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

Section 8.05 *. Amendment.* This Agreement may not be modified or amended except by a written instrument executed by or on behalf of each of the parties hereto. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit, restrict or reduce any right of Indemnitee under this Agreement in respect of any act or omission, or any event occurring, prior to such amendment, alteration or repeal. To the extent that a change in applicable law, whether by statute or judicial decision, (i) permits greater indemnification, contribution or advancement of Expenses than would be afforded currently under the Company's Certificate of Incorporation, Bylaws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change or (ii) limits rights with respect to indemnification, contribution or advancement of Expenses, it is the intent of the parties hereto that the rights with respect to indemnification, contribution or advancement of Expenses in effect prior to such change shall remain in full force and effect to the extent permitted by applicable law.

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Section 8.06 *. Waivers.* The observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) by the party entitled to enforce such term only by a writing signed by the party against which such waiver is to be asserted. Unless otherwise expressly provided herein, no delay on the part of any party hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party hereto of any right, power or privilege hereunder operate as a waiver of any other right, power or privilege hereunder nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder.

Section 8.07 *. Entire Agreement.* This Agreement and the documents referred to herein constitute the entire agreement between the parties hereto with respect to the matters covered hereby, and any other prior or contemporaneous oral or written understandings or agreements with respect to the matters covered hereby are superseded by this Agreement, provided that this Agreement is a supplement to and in furtherance of the Certificate of Incorporation, the Bylaws of the Company and applicable law, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

Section 8.08 *. Severability.* If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

Section 8.09 *. Notices.* All notices, requests, demands and other communications under this Agreement shall be in writing (which may be by facsimile transmission). All such notices, requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00 p.m. in the place of receipt and such day is a business day in the place of receipt. Otherwise, any such notice, request or communication shall be deemed not to have been received until the next succeeding business day in the place of receipt. The address for notice to a party is as shown on the signature page of this Agreement, or such other address as any party shall have given by written notice to the other party as provided above.

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Section 8.10 *. Binding Effect.* (a) The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director or officer of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors, assigns, including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of the Company, spouses, heirs, and executors, administrators, personal and legal representatives. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all or substantially all, or a substantial part of the business or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the manner and to the same extent that the Company would be required to perform if no such succession had taken place.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The indemnification, contribution and advancement of Expenses provided by, or granted pursuant to this Agreement shall continue as to a person who has ceased to be a director or officer and shall inure to the benefit of the heirs, executors, administrators, legatees and assigns of such a person.

Section 8.11 *. Governing Law.* This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules.

Section 8.12 *. Consent To Jurisdiction.* Except with respect to any arbitration commenced by Indemnitee pursuant to Section 6.01(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Chancery Court of the State of Delaware (the "**Delaware Court**"), and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.

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Section 8.13 *. Headings.* The Article and Section headings in this Agreement are for convenience of reference only, and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.

Section 8.14 *. Counterparts.* This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

Section 8.15 *. Use of Certain Terms.* As used in this Agreement, the words "herein," "hereof," and "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular paragraph, subparagraph, section, subsection, or other subdivision. Whenever the context may require, any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa.

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IN WITNESS WHEREOF, this Agreement has been duly executed and delivered to be effective as of the date first above written.

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| | |
|:---|:---|
| ARXIS, INC. | ARXIS, INC. |
| By: |  |
|  | Name: |
|  | Title: |
| Address:<br> Facsimile:<br> Attention:<br>With a copy to:<br>Address:<br> Facsimile:<br> Attention: | Address:<br> Facsimile:<br> Attention:<br>With a copy to:<br>Address:<br> Facsimile:<br> Attention: |

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| |
|:---|
| [INDEMNITEE NAME] |
| Address:<br> Facsimile:<br>With a copy to:<br>Address:<br> Facsimile:<br> Attention: |

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## Exhibit 16.1

**Exhibit 16.1** 

March 24, 2026

Securities and Exchange Commission

Washington, D.C. 20549

Commissioners:

We have read Arxis, Inc.'s statements included under the heading Change in Independent Registered Public Accounting Firm in its registration statement on Form S-1 filed on March 20, 2026 and we agree with such statements concerning our firm.

/s/ RSM US LLP

## Exhibit 21.1

**Exhibit 21.1** 

**Subsidiaries of Arxis, Inc.** 

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| | |
|:---|:---|
| **Name of Subsidiary** | **Jurisdiction of Incorporation or Organization** |
| Advanced Defense Solutions Technologies LLC | Connecticut, United States |
| AkroFire, LLC | Kansas, United States |
| Arcline Engineered Polymer Holdco LLC | Delaware, United States |
| Arcline Engineered Polymer MidCo LLC | Delaware, United States |
| Arcline Engineered Polymer TopCo LLC | Delaware, United States |
| ASC Continental AG | Switzerland |
| Bal Seal Asia, Ltd. | Hong Kong |
| Bal Seal Engineering Europe BV | Netherlands |
| Bal Seal Engineering, LLC | California, United States |
| BEI Precision Systems & Space Company, Inc. | Delaware, United States |
| Connector Intermediate HoldoCo, LLC | Delaware, United States |
| Connector Midco, LLC | Delaware, United States |
| Connector TopCo LLC | Delaware, United States |
| Corry Micronics, LLC | Delaware, United States |
| Creavey Seal Company | Pennsylvania, United States |
| Cristek Interconnects, LLC | Delaware, United States |
| Crosslink Technology Holdings Limited | United Kingdom |
| Custom Interconnects, LLC | Colorado, United States |
| Elektromágneses Cikkek International<br>Kereskedelmi és Szolgáltató Korlátolt<br>Felelősségű Társaság | Hungary |

---

------

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| | |
|:---|:---|
| **Name of Subsidiary** | **Jurisdiction of Incorporation or Organization** |
| Edinburgh Connector Company, LLC | Indiana, United States |
| Evans Capacitor Company, LLC | Delaware, United States |
| EXTEX Engineered Products, Inc. | Delaware, United States |
| FilConn, LLC | Delaware, United States |
| GRW Bearing GmbH | Germany |
| GRW CR S.R.O | Czechia |
| GRW High Precision Bearing, LP | Virginia, United States |
| Gebr. Reinfurt GmbH & Co. KG | Germany |
| GRW Management Inc. | Virginia, United States |
| Hampshire Mouldings Limited | United Kingdom |
| Hawkeye IntermediateCo LLC | Delaware, United States |
| Hawkeye MidCo LLC | Delaware, United States |
| Hawkeye Topco LLC | Delaware, United States |
| Hermetic Solutions Group, Inc. | Delaware, United States |
| Hi-Rel Alloys, ULC | Canada |
| Hi-Rel Canada Acquisition Corp, LLC | Delaware, United States |
| Hi-Rel Group, LLC | Delaware, United States |
| Hi-Rel Lids AC Ltd. | United Kingdom |
| Hi-Rel Lids Limited | United Kingdom |
| Hi-Rel Products, LLC | Delaware, United States |
| Hi-Rel UK HoldCo, LLC | Delaware, United States |
| HSG Intermediate HoldCo, LLC | Delaware, United States |
| ECI Hungary DE LLC | Delaware, United States |
| Icon Aerospace Technology Limited | United Kingdom |
| International Rubber Products, Inc. | Nevada, United States |

---

------

---

| | |
|:---|:---|
| **Name of Subsidiary** | **Jurisdiction of Incorporation or Organization** |
| Jetrac Limited | United Kingdom |
| Joy Signal Technology, LLC | Ohio, United States |
| Kaman Acquisition USA, Inc. | Delaware, United States |
| Kaman Aerospace Corporation | Delaware, United States |
| Kaman Aerospace Group, Inc. | Connecticut, United States |
| Kaman Corporation | Connecticut, United States |
| Kaman Engineering Services, Inc. | Washington, United States |
| Kaman Holding Germany GmbH | Germany |
| Kaman Lux Holding, Sarl | Luxembourg |
| Kaman Measuring & Memory, LLC | Delaware, United States |
| Kaman Specialty Bearings & Engineered Products, GmbH | Germany |
| Kaman Specialty Bearings Pte. Ltd. | Singapore |
| Kaman X Corporation | Connecticut, United States |
| Kamatics Corporation | Connecticut, United States |
| KDL Precision Molding, LLC | California, United States |
| KEX Canada, Inc. | Canada |
| K-MAX Corporation | Connecticut, United States |
| Legacy Technologies, LLC | Kansas, United States |
| Litron, LLC | Massachusetts, United States |
| M Wave Design LLC | Delaware, United States |
| MAST Technologies LLC | Delaware, United States |
| Micro-Tronics, LLC | Delaware, United States |
| Microwave Dynamics LLC | Delaware, United States |
| Mikron PMP, LLC | California, United States |

---

------

---

| | |
|:---|:---|
| **Name of Subsidiary** | **Jurisdiction of Incorporation or Organization** |
| Mikron Rubber Products Corp. | California, United States |
| Northern Engineering (Sheffield) Limited | United Kingdom |
| Northern Engineering UK Limited | United Kingdom |
| O' Rings Limited | United Kingdom |
| Ohio Associated Enterprises, LLC | Delaware, United States |
| Ohmega Technologies, LLC | Delaware, United States |
| Oldham Seals Group Limited | United Kingdom |
| Oldham Seals Limited | United Kingdom |
| On Demand Manufacturing Inc. | Delaware, United States |
| Ovation IntermediateCo, LLC | Delaware, United States |
| Ovation Parent Holdings II, Inc. | Delaware, United States |
| Ovation Parent Holdings, Inc. | Delaware, United States |
| Ovation Parent, Inc. | Delaware, United States |
| Ovation TopCo LLC | Delaware, United States |
| Pacific Aerospace & Electronics, LLC | Washington, United States |
| Paktron Holdings LLC | Delaware, United States |
| Paktron LLC | Delaware, United States |
| Planar Monolithics Industries, Inc. | Pennsylvania, United States |
| PSSC Holding Co. | Delaware, United States |
| Qnnect (M) Sdn. Bhd. | Malaysia |
| Qnnect, LLC | Delaware, United States |
| Quantic Corporate Holdings, Inc. | Delaware, United States |
| Quantic Electronics, LLC | Delaware, United States |

---

------

---

| | |
|:---|:---|
| **Name of Subsidiary** | **Jurisdiction of Incorporation or Organization** |
| Razor AcquisitionCo, Inc. | Delaware, United States |
| Razor Holdings LLC | Delaware, United States |
| Verwaltungsgesellschaft Reinfurt mbH | Germany |
| RMB Acquisition Corp. | Delaware, United States |
| RMB Products Inc. | California, United States |
| Rubbercraft Corporation of California, Ltd. | California, United States |
| RWG Germany GmbH | Germany |
| Sanders Industries Holdings, Inc. | Delaware, United States |
| Seal Science, Inc. | California, United States |
| SHS 16, LLC | Connecticut, United States |
| SI Holdings, Inc. | Delaware, United States |
| SI Intermediate Holding, Inc. | Delaware, United States |
| Sinclair Manufacturing Company, LLC | Massachusetts, United States |
| Spira Manufacturing Corporation | California, United States |
| Swift Textile Metalizing, LLC | Connecticut, United States |
| Swiftex, LLC | Connecticut, United States |
| Tantalum Pellet Company, LLC | Delaware, United States |
| Technical Research & Manufacturing Inc. | New Hampshire, United States |
| Thistle Design (MMC) Limited | United Kingdom |
| Ticer Technologies, LLC | Delaware, United States |
| Transcon Technologies, LLC | Delaware, United States |
| Twain Acquisition LLC | Delaware, United States |
| Union Technology Corp. | Delaware, United States |
| Viking Rubber Products, Inc. | California, United States |
| Wagner Rubber Products, Inc. | California, United States |

---

------

---

| | |
|:---|:---|
| **Name of Subsidiary** | **Jurisdiction of Incorporation or Organization** |
| Wenzel Associates, Inc. | Texas, United States |
| Wenzel International Inc. dba Croven Crystals | Canada |
| X-Microwave LLC | Texas, United States |

---

## Exhibit 23.1

**Exhibit 23.1** 

---

| | |
|:---|:---|
| ![LOGO](g81728g0320061543910.jpg) |  |
|  | KPMG LLP<br> Aon Center<br> Suite 5500<br> 200 E. Randolph Street<br> Chicago, IL 60601-6436 |

---

**Consent of Independent Registered Public Accounting Firm** 

We consent to the use of our report dated March 13, 2026, with respect to the combined financial statements of the Arxis Businesses, included herein, and to the reference to our firm under the heading "Experts" in the prospectus.

---

| |
|:---|
|  /s/ KPMG LLP |
|  Chicago, Illinois |
|  March 24, 2026 |

---

KPMG LLP, a Delaware limited liability partnership, and its subsidiaries are part of

the KPMG global organization of independent member firms affiliated with KPMG

International Limited, a private English company limited by guarantee.

## Exhibit 23.2

**Exhibit 23.2**

**Consent of Independent Registered Public Accounting Firm** 

We consent to the use in this Registration Statement on Form S-1 of Arxis, Inc. of our reports dated November 24, 2025, relating to the combined financial statements of Arcline Engineered Polymer Topco L.P. and Hawkeye TopCo L.P. (Arxis) and the consolidated financial statements of Connector TopCo, L.P., appearing in the Preliminary Prospectus, which is part of this Registration Statement.

We also consent to the reference to our firm under the heading "Experts" in such Preliminary Prospectus.

/s/ RSM US LLP

Boston, Massachusetts

March 24, 2026

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**S-1**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Arxis, Inc.**  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Security Type**  | **Security Class Title**  | **Fee Calculation or Carry Forward Rule**  | **Maximum Aggregate Offering Price**  | **Fee Rate**  | **Amount of Registration Fee**  |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to be Paid | 1 | Equity | Class A common stock, par value $0.01 per share | 457(o) | $100000000.00 | 0.0001381 | $13810.00 |
| Fees Previously Paid |  |  |  |  |  |  |  |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| Carry Forward Securities |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | $100000000.00  |  | $13810.00  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  | $0.00  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  |  |  | $0.00  |
|  |  |  | Net Fee Due:  | Net Fee Due:  |  |  | $13810.00  |

---

 **Offering Note** <br>

<sup>1</sup> (1) Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended. (2) Includes the aggregate offering price of additional shares that the underwriters have the option to purchase.

---

| |
|:---|
| |
| **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims |
| Fee Offset Sources |
| **Rule 457(p)** |
| Fee Offset Claims |
| Fee Offset Sources |

---